0001493152-15-003733.txt : 20150814 0001493152-15-003733.hdr.sgml : 20150814 20150814163635 ACCESSION NUMBER: 0001493152-15-003733 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20150630 FILED AS OF DATE: 20150814 DATE AS OF CHANGE: 20150814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MENDOCINO BREWING CO INC CENTRAL INDEX KEY: 0000919134 STANDARD INDUSTRIAL CLASSIFICATION: MALT BEVERAGES [2082] IRS NUMBER: 680318293 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-13636 FILM NUMBER: 151056479 BUSINESS ADDRESS: STREET 1: 1601 AIRPORT ROAD CITY: UKIAH, STATE: CA ZIP: 95482 BUSINESS PHONE: 7077441015 MAIL ADDRESS: STREET 1: 1601 AIRPORT ROAD CITY: UKIAH, STATE: CA ZIP: 95482 10-Q 1 form10-q.htm

 

 

 

United states

securities and exchange commission

WASHINGTON, D.C. 20549

 

Form 10-q

 

(Mark One)

 

[X]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2015

 

or

 

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from __________ to __________

 

Commission file number 1-13636

 

Mendocino Brewing Company, Inc.
(Exact Name of Registrant as Specified in Its Charter)

 

California   68-0318293
(State or Other Jurisdiction of   (I.R.S. Employer
Incorporation or Organization)   Identification No.)

 

1601 Airport Road, Ukiah, California   95482
(Address of principal executive offices)   (Zip Code)

 

(707) 463-2087

(Registrant’s Telephone Number, Including Area Code)

 

Not Applicable

(Former Name, Former Address and Former Fiscal Year,

if Changed Since Last Report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 [  ]

 

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 Regulation 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 [X] No [  ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an 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. (Check one):

 

Large accelerated filer [  ] Accelerated filer [  ] Non-accelerated filer [  ] 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 [  ] No [X]

 

applicable only to corporate issuers:

 

The number of shares of Mendocino Brewing Company, Inc.’s common stock outstanding as of August 13, 2015 was 12,611,133.

 

 

  

 
 

 

MENDOCINO BREWING COMPANY, INC.

 

INDEX

 

    Page
PART I. FINANCIAL INFORMATION    
         
  ITEM 1. Financial Statements   F-1
         
    Condensed consolidated balance sheets as of June 30, 2015 (unaudited) and December 31, 2014   F-1
         
    Condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014 (unaudited)   F-2
         
    Condensed consolidated statements of cash flows for the six ended June 30, 2015 and 2014 (unaudited)   F-3
         
    Notes to condensed consolidated financial statements (unaudited)   F-4
         
  ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations   3
         
  ITEM 3. Quantitative and Qualitative Disclosures about Market Risk   14
         
  ITEM 4. Controls and Procedures   14
         
PART II. OTHER INFORMATION    
         
   ITEM 1. Legal Proceedings    14
         
   ITEM 1A. Risk Factors    15
         
   ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds   15
         
   ITEM 3. Defaults Upon Senior Securities    15
         
   ITEM 4. Mine Safety Disclosures   16
         
  ITEM 5. Other Information   16
   
  ITEM 6. Exhibits    16
   
  SIGNATURES    17

 

2
 

 

PART I

 

Item 1. Financial Statements.

 

MENDOCINO BREWING COMPANY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   June 30, 2015 (Unaudited)   December 31, 2014  
ASSETS          
Current Assets          
Cash  $121,500   $145,100 
Accounts receivable, net   3,492,600    4,384,500 
Inventories   1,683,000    2,117,900 
Prepaid expenses   745,800    632,900 
Total Current Assets   6,042,900    7,280,400 
           
Property and Equipment, net   10,979,300    11,087,800 
Deposits and other assets   267,800    310,400 
           
Total Assets  $17,290,000   $18,678,600 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
Current Liabilities          
Secured lines of credit  $2,087,500   $2,156,900 
Accounts payable   4,062,600    4,860,800 
Accrued liabilities   1,855,800    1,768,600 
Notes payable to related party   1,571,800    1,038,700 
Subordinated convertible notes to related party   3,634,000    - 
Current maturities of secured notes payable   3,645,900    3,913,300 
Current maturity of long-term debt to related party   524,200    519,300 
Current maturity of obligations under capital lease   25,300    5,600 
Current maturity of severance payable   456,000    - 
Total Current Liabilities   17,863,100    14,263,200 
           
Long-Term Liabilities          
Subordinated convertible notes to related party   -    3,588,900 
Long term debt to related party, less current maturity   262,100    519,300 
Long term lease, less current maturity   88,200    12,100 
Severance payable, less current maturity   304,100    760,100 
Total Long-Term Liabilities   654,400    4,880,400 
           
Total Liabilities   18,517,500    19,143,600 
           
Commitments and contingencies   -    - 
Stockholders’ Equity          
Preferred stock, Series A, no par value, with liquidation preference of $1 per share; 10,000,000 shares authorized, 227,600 shares issued and outstanding   227,600    227,600 
Common stock, no par value 30,000,000 shares authorized, 12,611,133 shares issued and outstanding   15,100,300    15,100,300 
Accumulated comprehensive income   451,300    454,200 
Accumulated deficit   (17,006,700)   (16,247,100)
Total Stockholders’ Equity   (1,227,500)   (465,000)
           
Total Liabilities and Stockholders’ Equity  $17,290,000   $18,678,600 

 

See accompanying notes to these condensed consolidated financial statements.

 

F-1
 

 

MENDOCINO BREWING COMPANY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

 

   THREE MONTHS ENDED
June 30,
   SIX MONTHS ENDED
June 30,
 
   2015   2014   2015   2014 
Sales  $8,264,800   $9,079,200   $15,072,100   $17,065,900 
Excise taxes   126,200    166,500    239,400    303,200 
Net sales   8,138,600    8,912,700    14,832,700    16,762,700 
Cost of goods sold   5,649,200    6,121,900    10,247,700    11,643,600 
Gross profit   2,489,400    2,790,800    4,585,000    5,119,100 
Operating expenses                    
 Marketing   1,457,100    1,607,300    2,860,000    3,135,200 
General and administrative   1,003,700    1,145,100    2,215,300    2,265,400 
Total operating expenses   2,460,800    2,752,400    5,075,300    5,400,600 
Income (loss) from operations   28,600    38,400    (490,300)   (281,500)
Other income (expense)                    
Other income   40,500    8,800    43,600    10,700 
 Profit on sale of asset   -    5,200    -    16,300 
Interest expense   (154,800)   (189,400)   (309,100)   (351,100)
Total other expenses   (114,300)   (175,400)   (265,500)   (324,100)
Loss before income taxes   (85,700)   (137,000)   (755,800)   (605,600)
Provision for income taxes   -    -    3,800    - 
Net loss  $(85,700)  $(137,000)  $(759,600)  $(605,600)
Foreign currency translation loss   (30,000)   (28,900)   (2,900)   (40,300)
Comprehensive loss  $(115,700)  $(165,900)  $(762,500)  $(645,900)
Net loss per common share –                    
Basic  $(0.01)  $(0.01)  $(0.06)  $(0.05)
Diluted  $(0.01)  $(0.01)  $(0.06)  $(0.05)
Weighted average common shares outstanding –                    
Basic   12,611,133    12,611,133    12,611,133    12,611,133 
Diluted   12,611,133    12,611,133    12,611,133    12,611,133 

 

See accompanying notes to these condensed consolidated financial statements.

 

F-2
 

 

MENDOCINO BREWING COMPANY, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

   Six Months Ended 
   June 30, 
   2015   2014 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net loss  $(759,600)  $(605,600)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization   581,400    552,600 
Provision for doubtful accounts   (2,000)   (7,200)
Interest accrued on related party debt   78,200    60,000 
 Profit on sale of assets   -    (16,300)
Changes in operating assets and liabilities:          
Accounts receivable   957,000    (282,600)
Inventories   435,700    228,500 
Prepaid expenses   (109,900)   (443,000)
Deposits and other assets   (37,700)   45,900 
Accounts payable   (797,500)   (515,500)
Accrued liabilities   81,700    611,900 
Net cash provided by (used in) operating activities   427,300    (371,300)
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Purchases of property and equipment   (339,700)   (244,700)
Proceeds from sale of fixed assets   -    16,300 
Net cash used in investing activities   (339,700)   (228,400)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Net borrowing repayment on lines of credit   (88,000)   (102,000)
Borrowing on note payable   500,000    1,000,000 
Repayment on long-term debt   (521,400)   (545,600)
Payments on obligations under long term leases   (2,700)   (2,600)
Net cash (used in) provided by financing activities   (112,100)   349,800 
           
EFFECT OF EXCHANGE RATE CHANGES ON CASH   900    (18,000)
           
NET CHANGE IN CASH   (23,600)   (267,900)
           
CASH, beginning of period   145,100    324,800 
           
CASH, end of period  $121,500   $56,900 
           
SUPPLEMENTARY CASH FLOW INFORMATION          
Cash paid during the period for:          
Income taxes  $3,800   $- 
Interest  $230,900   $291,000 
           
NON CASH INVESTING AND FINANCING ACTIVITIES          
Seller financed asset  $98,500   $- 

 

See accompanying notes to these condensed consolidated financial statements.

  

F-3
 

 

MENDOCINO BREWING COMPANY, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

1. Description of Operations and Summary of Significant Accounting Policies

 

Description of Operations

 

Mendocino Brewing Company, Inc. (the “Company” or “MBC”) was formed in 1983 in California, and has two operating subsidiaries: Releta Brewing Company, LLC (“Releta”), and United Breweries International (UK) Limited (“UBIUK”). In the United States (the “US”), MBC and Releta operate two breweries that produce beer and malt beverages for the specialty “craft” segment of the beer market. The breweries are located in Ukiah, California and Saratoga Springs, New York. The majority of sales for MBC in the US are in California. The Company brews several brands, of which Red Tail Ale is the flagship brand. In addition, the Company performs contract brewing for several other brands. Generally, product shipments are made directly from the breweries to the wholesalers or distributors in accordance with state and local laws.

 

MBC’s United Kingdom (the “UK”) subsidiary, UBIUK, is a holding company for Kingfisher Beer Europe Limited (“KBEL”). KBEL is a distributor of alcoholic beverages, mainly Kingfisher Lager Beer, in the UK and Europe. The offices of KBEL are located in Maidstone, Kent in the UK. In addition, during the period covered by this quarterly report (the “Quarterly Report”), through UBIUK, the Company had production and distribution rights to Kingfisher Premium Lager in Canada and the United States. The Company has the right to use the Kingfisher mark and the name “Kingfisher Brewing Company” in connection with the brewing and distribution of assorted beers in the United States pursuant to an agreement with Kingfisher America, Inc. Generally, sales are made through distributors.

 

All of the Company’s beers sold in Europe (except for beers sold in Germany) are procured under a contract with Heineken UK Limited (“HUK”). This contract expires in October 2018. KBEL is the distributor of Kingfisher Premium Lager to specialty restaurant trade distributors, liquor and convenience stores in the United Kingdom, Ireland, and continental Europe, but does not physically distribute the Company’s products to customers. KBEL relies on HUK for distribution of the product in Europe in exchange for a fee paid to HUK, except for in Germany where beers are manufactured and distributed pursuant to a separate contract with a different entity. In addition, HUK has the exclusive right to sell Kingfisher Premium Lager, for a royalty fee payable to KBEL, to certain large retail customers, including, but not limited to, Sainsbury’s, Asda, and Tesco.

 

Subsequent Events

 

The Company evaluates events that occur subsequent to the balance sheet date of periodic reports, but before financial statements are issued for periods ending on such balance sheet dates, for possible adjustment to such financial statements or other disclosure. This evaluation generally occurs through the date on which the Company’s financial statements are electronically prepared for filing with the Securities and Exchange Commission (“SEC”).

 

Principles of Consolidation

 

The consolidated financial statements present the accounts of MBC and its wholly-owned subsidiaries, Releta and UBIUK. All material intracompany and inter-company balances, profits and transactions have been eliminated.

 

F-4
 

 

Basis of Presentation and Organization

 

The accompanying unaudited condensed consolidated financial statements for the six months ended June 30, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the US. These condensed financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s most recent Annual Report on Form 10-K, as filed with the SEC, which contains additional financial and operating information and information concerning significant accounting policies followed by the Company. The financial statements and notes are representations of the Company’s management (“Management”) and its board of directors (the “Board of Directors”), who are responsible for their integrity and objectivity.

 

Operating results from the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or any future period.

 

Reclassifications

 

Certain items in the financial statements for the prior year have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income or equity.

 

SIGNIFICANT ACCOUNTING POLICIES

 

There have been no significant changes in the Company’s significant accounting policies during the six months ended June 30, 2015 compared to what was previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

 

Cash and Cash Equivalents, Short and Long-Term Investments

 

For purposes of cash flows, the Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents.

 

Revenue Recognition

 

The Company recognizes revenue from the brewing and distribution operations in accordance with Accounting Standards Codification 605 of the Financial Accounting Standards Board. The Company recognizes revenue from product sales, net of discounts.

 

The Company recognizes revenue only when all of the following criteria have been met:

 

Persuasive evidence of an arrangement exists;

 

Delivery has occurred or services have been rendered;

 

The fee for the arrangement is fixed or determinable; and

 

Collectability is reasonably assured.

 

“Persuasive Evidence of an Arrangement” – The Company documents all terms of an arrangement in a written contract or purchase order signed by the customer prior to recognizing revenue.

 

“Delivery Has Occurred or Services Have Been Performed” – The Company delivers the products prior to recognizing revenue or performs services as per contractual terms. Product is considered delivered upon delivery to a customer’s designated location and services are considered performed upon completion of the Company’s contractual obligations.

 

“The Fee for the Arrangement is Fixed or Determinable” – Prior to recognizing revenue, an amount is either fixed or determinable under the terms of the written contract. The price is negotiated at the outset of the arrangement and is not subject to refund or adjustment during the initial term of the arrangement.

 

F-5
 

 

“Collectability is Reasonably Assured” – The Company determines that collectability is reasonably assured prior to recognizing revenue. Collectability is assessed on a customer-by-customer basis based on criteria outlined by Management. The Company does not enter into arrangements unless collectability is reasonably assured at the outset. Existing customers are subject to ongoing credit evaluations based on payment history and other factors. If it is determined during the arrangement that collectability is not reasonably assured, revenue is recognized on a cash basis.

 

The Company records certain consideration paid to customers for services or placement fees as a reduction in revenue rather than as an expense. The Company reports these items on the income statement as a reduction in revenue and as a corresponding reduction in marketing and selling expenses.

 

Revenues from the Company’s brewpub and gift store are recognized when sales have been completed.

 

Allowance for Doubtful Accounts

 

The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Management considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic and industry trends and changes in customer payment terms. Balances over 90 days past due and other higher risk amounts are reviewed individually for collectability. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. Based on Management’s assessment, the Company provides for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances that remain outstanding after the Company has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.

 

Inventories

 

Inventories are stated at the lower of average cost, which approximates the first-in, first-out method, or market (net realizable value). The Company regularly reviews its inventories for the presence of obsolete product attributed to age, seasonality and quality. Inventories that are considered obsolete are written off or adjusted to carrying value.

 

Deferred Financing Costs

 

Costs relating to obtaining financing are capitalized and amortized over the term of the related debt. When a loan is paid in full, any unamortized financing costs are removed from the related accounts and charged to operations. Deferred financing costs related to a borrowing made in June 2011 were $225,000. Amortization of deferred financing costs charged to operations was $22,500 for the six months ended June 30, 2015 and 2014.

 

Concentration of Credit Risks

 

Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, and accounts receivable. Substantially all of the Company’s cash and cash equivalents are deposited with commercial banks in the US and the UK that have minimal credit risk. Accounts receivable are generally unsecured and customers are subject to an initial credit review and ongoing monitoring. Wholesale distributors account for substantially all accounts receivable; therefore, this risk concentration is limited due to the number of distributors and the laws regulating the financial affairs of distributors of alcoholic beverages. The Company has approximately $1,600 in cash deposits and $2,294,200 of accounts receivable due from customers located in the UK as of June 30, 2015.

 

F-6
 

 

Income Taxes

 

The Company accounts for income taxes in accordance with ASC 750 which requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards. The Company periodically assesses uncertain tax positions that the Company has taken or expects to take on a tax return, including a decision whether to file or not to file a return in a particular jurisdiction. The Company evaluated its tax positions and determined that there were no uncertain tax benefits as of June 30, 2015 and December 31, 2014.

 

Basic and Diluted Earnings (Loss) per Share

 

The basic earnings (loss) per share is computed by dividing the earnings (loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period. Basic net earnings (loss) per share exclude the dilutive effect of stock options or warrants and convertible notes. If the Company’s operations result in net loss for any period, diluted net loss per share would be the same as basic net loss per share, since the effect of any potentially dilutive securities would be anti-dilutive. Therefore, the conversion of the related party convertible notes (see “Subordinated Convertible Notes Payable” below) has been excluded from the Company’s calculation of net loss per share. The computations of basic and dilutive net loss per share are as follows:

 

   Three months ended   Six months ended 
   6/30/2015   6/30/2014   6/30/2015   6/30/2014 
Net loss  $(85,700)   (137,000)  $(759,600)   (605,600)
Weighted average common shares outstanding   12,611,133    12,611,133    12,611,133    12,611,133 
Basic net loss per share  $(0.01)   (0.01)  $(0.06)   (0.05)
Interest expense on convertible notes  $-    -   $-    - 
Loss for computing diluted net income per share  $(85,700)   (137,000)  $(759,600)   (605,600)
Incremental shares from assumed exercise of dilutive securities   -    -    -    - 
Dilutive potential common shares   12,611,133    12,611,133    12,611,133    12,611,133 
Diluted net loss per share  $(0.01)   (0.01)  $(0.06)   (0.05)

 

Foreign Currency Translation

 

The Company has subsidiaries located in the UK, where the local currency, the UK Pound Sterling, is the functional currency. Financial statements of these subsidiaries are translated into US dollars using period-end exchange rates for assets and liabilities and average exchange rates during the period for revenues and expenses. Cumulative translation adjustments associated with net assets or liabilities are reported in non-owner changes in equity. Any exchange rate gains or losses related to foreign currency transactions are recognized in the income statement as incurred, in the same financial statement caption as the underlying transaction, and are not material for any year shown. Cash flows were translated at the average exchange rates for the six months then ended. Changes in cash resulting from the translations are presented as a separate item in the statements of cash flows.

 

F-7
 

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the US includes having the Company make estimates and assumptions affecting the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. The amounts estimated could differ from actual results. Significant estimates include the allowance for bad debts, depreciation and amortization periods, and the future utilization of deferred tax assets.

 

Comprehensive Income (Loss)

 

Comprehensive income (loss) is composed of the Company’s net loss and changes in equity from non-stockholder sources. The accumulated balances of these non-stockholder sources are reflected as a separate item in the equity section of the balance sheet.

 

Reportable Segments

 

The Company manages its operations through two business segments: (i) brewing operations and tasting room operations in the US and distributor operations in Canada (the “North American Territory”) and (ii) distributor operations in Europe, including the UK (the “Foreign Territory”). The Company evaluates performance based on net operating profit. Where applicable, portions of the administrative function expenses are allocated between the operating segments. The operating segments do not share manufacturing or distribution facilities. In the event any materials and/or services are provided to one operating segment by the other, the transaction is valued according to the Company’s transfer policy, which approximates market price. The costs of operating the manufacturing plants are captured discretely within each segment. The Company’s property, plant and equipment, inventory, and accounts receivable are captured and reported discretely within each operating segment.

 

2. Liquidity and Management Plans

 

On June 23, 2011, MBC and Releta entered into a Credit and Security Agreement (as amended, the “Credit and Security Agreement”) with Cole Taylor Bank, an Illinois banking corporation (“Cole Taylor”). Cole Taylor merged into MB Financial Bank, an Illinois banking corporation (“MB Financial”) on August 18, 2014. As used in this Quarterly Report, “Lender” shall refer to Cole Taylor prior to August 18, 2014 and to MB Financial, as successor in interest to Cole Taylor, on or after August 18, 2014. The Credit and Security Agreement provided a credit facility with a maturity date of June 23, 2016 of up to $10,000,000 consisting of a $4,119,000 revolving facility, a $1,934,000 machinery and equipment term loan, a $2,947,000 real estate term loan and a $1,000,000 capital expenditure line of credit. Convertible promissory notes issued to United Breweries of America, Inc. (“UBA”), one of the Company’s principal shareholders, are subordinated to Lender’s facility.

 

The Credit and Security Agreement requires MBC and Releta to maintain certain minimum fixed charge coverage ratios for trailing twelve month periods and minimum tangible net worth. The minimum tangible net worth MBC and Releta are required to maintain is subject to increase based on the net income of MBC and Releta. On March 29, 2013, MBC, Releta, and Lender entered into a First Amendment to the Credit and Security Agreement to clarify the method by which the fixed charge coverage ratio is calculated, with retrospective application.

 

The required fixed charge coverage ratio for the trailing twelve month periods ended March 31, 2013 onwards fell short of the required ratio. The tangible net worth fell short of the required amount for the period beginning June 1, 2013 onwards.

 

On September 18, 2013, MBC and Releta received a notice (the “Default Notice”) from Lender regarding its intention to exercise certain rights with respect to events of default of the Company pursuant to the Credit and Security Agreement.

 

F-8
 

 

The Credit and Security Agreement provides that the failure of MBC and Releta to observe any covenant will constitute an event of default under the Credit and Security Agreement. Under the Credit and Security Agreement, upon the occurrence of an event of default, all of MBC’s and Releta’s obligations under the Credit and Security Agreement may, at the option of the Lender, be declared, and immediately shall become, due and payable, without notice of any kind. The event of default shall be deemed continuing until waived in writing by the Lender. The Default Notice states that Lender has elected, effective September 1, 2013, to charge a default interest rate equal to two percent (2%) per annum in excess of the interest rate otherwise payable under the Credit and Security Agreement. The Company estimates that the increased rate currently results in approximately $120,000 additional annual interest expense.

 

On April 18, 2014, MBC and Releta received a second notice (the “Second Default Notice”) from Lender regarding its intention to exercise certain rights with respect to events of default of the Company pursuant to the Credit and Security Agreement.

 

The Second Default Notice required MBC and Releta to engage a consultant to perform a viability analysis and prepare a revised projection for 2014.

 

Effective August 20, 2014, pursuant to a notice to MBC and Releta dated August 18, 2014 (the “Third Default Notice”) which referred to MBC’s and Releta’s continued failure to meet the required fixed charge coverage ratio and the tangible net worth requirement, Lender notified MBC and Releta that it would reduce the advance rate for (i) eligible finished goods and raw material inventory and (ii) eligible work-in progress inventory by 2% each month. The advance rates are used in the calculation of the borrowing base of each of MBC and Releta, which is used in the determination of the amount available to each of MBC and Releta pursuant to the revolving facility. Under the terms of the Credit and Security Agreement, if such availability is less than $0, or if certain components of the borrowing base of each of MBC and Releta fall below certain limits in relation to outstanding revolving loans, such difference shall be immediately due and payable.

 

On January 21, 2015, MBC, Releta, and Lender entered into a Second Amendment (the “Second Amendment”) to the Credit and Security Agreement.

 

The Second Amendment reduced the maximum amount of the Revolver from $4,119,000 to $2,500,000. The Second Amendment also changed the definition of borrowing base (including by lowering certain advance rates) such that the calculation of the borrowing base will result in a lower number than it would have if calculated prior to the effectiveness of the Second Amendment. The borrowing base is used in the determination of the amount available to each borrower (a “Borrower”) pursuant to the Revolver. Pursuant to the Credit and Security Agreement, if such availability is less than $0, or if certain components of the borrowing base fall below certain limits in relation to outstanding revolving loans, such difference shall be immediately due and payable.

 

The Second Amendment reduced the advance rate for (i) eligible finished goods and raw material inventory and (ii) eligible work-in progress inventory by two percent (2%) and continues to reduce each by an additional two percent (2%) on the 20th day of each month thereafter. The advance rates are used in the calculation of the borrowing base of each Borrower, which is used in the determination of the amount available to each Borrower pursuant to the Revolver. As stated above, if such availability is less than $0, or if certain components of the borrowing base fall below certain limits in relation to outstanding revolving loans, such difference shall be immediately due and payable.

 

Lender has not waived the events of default described in the Default Notice, the Second Default Notice or the Third Default Notice and has reserved the right to all other available rights and remedies under the Credit and Security Agreement, certain other related documents and applicable law. Lender could declare the full amount owed under the Credit and Security Agreement due and payable at any time for any reason or no reason. Since receiving the Second Amendment, the Company has not received any notice or other communication from Lender that it intends to exercise any other remedies available to it under the Credit and Security Agreement in connection with the events of default. Lender continues to charge a default interest rate equal to two percent (2%) per annum in excess of the interest rate otherwise payable under the Credit and Security Agreement. The exercise of additional remedies by Lender may have a material adverse effect on the Company’s financial condition and the Company’s ability to continue to operate. If it becomes necessary for MBC and Releta to seek additional financing, there is no guarantee that MBC and Releta will be able to obtain such financing on terms favorable to the Company or on any terms.

 

F-9
 

 

Pursuant to a letter from UBHL dated November 11, 2013, UBHL indicated a willingness to invest up to $2,000,000 in the Company. On January 22, 2014, Catamaran Services, Inc., (“Catamaran”), a related party (see “Notes Payable to Related Party”, below), provided a note loan of $500,000 repayable upon receipt of an equity investment by the Company’s majority shareholder. On April 24, 2014, another note loan of $500,000 was received from Catamaran on terms similar to the previous note. On February 5, 2015, another note loan of $500,000 was received from Catamaran on terms similar to the previous notes. On June 30, 2015, another note was issued to Catamaran for $500,000 on terms similar to the previous notes (the proceeds of such note were received by the Company on July 6, 2015). On each date on or prior to which Catamaran provided a note loan, the Company received a letter from Lender permitting the Company to obtain loans subject to certain conditions, including that no portion of such loans would be payable until either (a) certain obligations of the Company to Lender pursuant to the Agreement were satisfied in full, or (b) such payment was made from an equity investment by the Company’s majority shareholder.

 

In response to the losses incurred in connection with the Company’s operations, UBHL, the Company’s indirect majority shareholder, issued a letter of comfort on March 5, 2015 (the “Letter of Comfort”), to confirm that UBHL had agreed to provide funding on an as needed basis to ensure that the Company is able to meet its financial obligations as and when they fall due. The Letter of Comfort does not specify either the terms of UBHL’s support, or a maximum dollar limit and is not a legally binding agreement. However, to date UBHL through its affiliated company, Catamaran, has provided capital for working capital needs. UBHL’s financial support is contingent upon compliance with any applicable exchange control requirements, other applicable laws, and regulations relating to the transfer of funds from India. The Letter of Comfort does not specify any time limit for extending support. If it becomes necessary to seek UBHL’s financial assistance under the Letter of Comfort and UBHL is either unable or unwilling to provide such financial assistance to MBC, it may result in a material adverse effect on the Company’s financial position and on its ability to continue operations. UBHL controls the Company’s two largest shareholders, United Breweries of America, Inc. (“UBA”) and Inversiones, and as such, is the Company’s indirect majority shareholder. The Company’s Chairman of the Board, Dr. Vijay Mallya, is also the Chairman of the board of directors of UBHL.

 

As of June 30, 2015, the fixed charge coverage ratio was required to be 1.10 to 1. The Company calculated that the fixed charge coverage ratio as of June 30, 2015 was -1.12 to 1. The Company calculated that the required tangible net worth of MBC and Releta was $6,181,400 as of June 30, 2015 and the actual tangible net worth on such date was $3,676,600. The Company does not anticipate that it will regain compliance with the required fixed charge coverage ratio or the minimum tangible net worth in the immediate future.

 

At June 30, 2015, the Company had cash and cash equivalents of $121,500, an accumulated deficit of $17,006,700, and a working capital deficit of $11,820,200 due to losses incurred, reclassification of debts owing to MB Financial as a result of the default under the Credit and Security Agreement described above and reclassification of subordinated notes payable to UBA as a result of a subordination agreement, which subordinated notes are maturing in June 2016. In addition, the book value of the Company’s assets was lower than the book value of its liabilities at June 30, 2015.

 

If the Company is unable to find any source of funds, it may result in a material adverse effect on the Company’s ability to continue operations. For example, MB Financial may seek to satisfy any outstanding obligations through recourse against the applicable pledged collateral which may include the Company’s real property, fixed assets and current assets. The loss of any material pledged asset would likely have a material adverse effect on the Company’s financial position and results of operations.

 

 Management has taken several actions to reduce the Company’s working capital needs through June 30, 2016, including reducing discretionary expenditures, reducing manpower, securing additional brewing contracts in an effort to utilize a portion of excess production capacity, and pursuing export opportunities. The current revenue from operations are insufficient to meet the working capital needs of the Company over the next 12 months. The Company has requested UBHL to make a capital infusion. If UBHL is unwilling or unable to infuse additional capital, the Company will seek capital from other sources, including outside investors. If sufficient capital for working capital needs is not obtained, the Company may sell some of its operating assets.

 

F-10
 

 

If it becomes necessary to seek UBHL’s financial assistance under the Letter of Comfort and UBHL does not fulfill its commitment to MBC, it may result in a material adverse effect on the Company’s financial position and on its ability to continue operations. In addition, the Company’s lenders may seek to satisfy any outstanding obligations through recourse against the applicable pledged collateral which may include the Company’s real property and fixed and current assets. The loss of any material pledged asset would likely have a material adverse effect on the Company’s financial position and results of operations.

 

3. Inventories

 

Inventories are stated at the lower of average cost or market and consist of the following:

 

   June 30, 2015   December 31, 2014 
Raw Materials  $602,200   $740,300 
Beer-in-process   379,600    259,400 
Finished Goods   632,200    1,034,200 
Merchandise   69,000    84,000 
TOTAL  $1,683,000   $2,117,900 

 

4. Secured Lines of Credit

 

In June 2011, Cole Taylor provided a line of credit, from which may be drawn up to 85% of eligible receivables and 60% of eligible inventory for the period expiring in June 2016. The borrowings are collateralized, with recourse, by MBC’s and Releta’s trade receivables and inventory located in the US. This facility currently carries interest (including default interest) at a rate of prime plus 3% and is secured by substantially all of the assets of Releta and MBC. The amount outstanding on this line of credit as of June 30, 2015 was approximately $814,000. Included in the Company’s balance sheet as of June 30, 2015 are account balances totaling $1,198,400 of accounts receivable and $1,609,300 of inventory collateralized to MB Financial, as successor in interest to Cole Taylor, under this facility.

 

On April 26, 2005, Royal Bank of Scotland Commercial Services Limited (“RBS”) provided an invoice discounting facility to KBEL based on 80% prepayment against qualified accounts receivable related to KBEL’s UK customers. The initial term of the facility was one year, after which time the facility could be terminated by either party upon six months’ notice. The facility carries an interest rate of 1.38% above the RBS base rate and a service charge of 0.10% of each invoice discounted. The amount outstanding on this line of credit as of June 30, 2015 was approximately $1,273,500. Included in the Company’s balance sheet at June 30, 2015 are account balances totaling $2,294,200 of accounts receivable collateralized to RBS under this facility.

 

5. Notes Payable to Related Party

 

Notes payable to related party consist of notes payable to Catamaran dated January 22, 2014, April 24, 2014 and February 5, 2015, for a total value of $1,571,800 including interest of $71,800. On June 30, 2015 another note was issued for a value of $500,000 but the proceeds were received by the Company on July 6, 2015. The Catamaran Holding, Ltd. (“Holding”), the sole shareholder of Catamaran, has directors in common with Inversiones, one of the major shareholders of MBC. The indirect beneficial owner of Inversiones is UBHL. Dr. Vijay Mallya, the Chairman of the Board of Directors of the Company is also the Chairman of the Board of Directors of UBHL. The Company has asked Catamaran whether any relationships exist between the shareholders of Holdings and any affiliates of the Company, and has not received a response to such inquiries.

 

F-11
 

 

The notes are payable within six months following the date of the notes, subject to the receipt by the Company of an equity investment by the Company’s majority shareholder in an amount sufficient either (a) to pay the notes from an equity investment by the Company’s majority shareholder, or (b) to pay the notes and certain existing obligations of the Company to Lender. If the Company is not able to satisfy its obligations on the notes within the six month period following the date of the notes, the notes are automatically extended for additional six month terms until they are paid.

 

6. Subordinated Convertible Notes Payable to Related Party

 

Subordinated convertible notes to a related party included notes payable to UBA (the “UBA Notes”) for a total value of $3,634,000 as of June 30, 2015, including interest at the prime rate plus 1.5% per year, but not to exceed 10%. Thirteen of the UBA Notes are convertible into common stock at a rate of $1.50 per share and one UBA Note is convertible at a rate of $1.44 per share. The UBA Notes have been extended until June 2016 and have automatic renewals after such maturity date for successive one year terms, provided that either the Company or UBA may elect not to extend the term upon written notice given to the other party no more than 60 days and no fewer than 30 days prior to the expiration of the applicable term. Under the terms of the UBA Notes, UBA may demand payment within 60 days following the end of the extension period. UBA has agreed to subordinate the UBA Notes to the Company’s long-term debt agreements with MB Financial, as successor-in-interest to Cole Taylor, which mature in June 2016. Therefore, the Company will not require the use of working capital to repay any of the UBA Notes until the Lender’s facility is repaid. The UBA Notes include $1,718,600 and $1,673,500 of accrued interest at June 30, 2015 and December 31, 2014, respectively.

 

7. Secured Notes Payable

 

Maturities of secured notes payable for succeeding years are as follows:

 

   June 30, 2015   December 31, 2014 
Loan from Cole Taylor, payable in monthly installments of $12,300, plus interest (including default interest) at prime plus 4% with a balloon payment of approximately $2,202,500 in June 2016; secured by substantially all assets of Releta and MBC.  $2,349,900   $2,423,600 
           
Loans from Cole Taylor, payable in monthly installments of $32,300 plus interest (including default interest) at prime plus 3.5% with a balloon payment of approximately $908,700 in June 2016; secured by substantially all assets of Releta and MBC.   1,296,000    1,489,700 
    3,645,900    3,913,300 
           
Less current maturities   3,645,900    3,913,300 
   $-   $- 

 

F-12
 

 

8. Long-Term Debt – Related Party

 

   June 30, 2015   December 31, 2014 
Loan from Heineken UK Limited, payable in quarterly installments of $137,900, plus interest at UK prime plus 5% maturing on October 9, 2016, secured by licensing rights pursuant to a Sub-License Agreement.  $786,300   $1,038,600 
           
Less current maturities   524,200    519,300 
   $262,100   $519,300 

 

Maturities of debt for succeeding years are as follows:

 

Six months ending December 31, 2015 $262,100 
Year ending December 31, 2016 $524,200 

 

On April 18, 2013, KBEL entered into a Loan Agreement (the “HUK Loan Agreement”) with HUK pursuant to which HUK provided KBEL with a secured term loan of £1,000,000 on October 9, 2013 to be repaid in twelve quarterly installment of £83,333.33 each, commencing from January 9, 2014 along with interest at the rate of 5% above the Bank of England base rate. Prepayment is permitted. Upon an Event of Default, as defined in the HUK Loan Agreement, if HUK and KBEL fail to agree on a payment plan acceptable to HUK, HUK may, among other remedies, declare the loan immediately due and repayable or exercise its right to an exclusive license pursuant to the Sub-License Agreement as described and defined in the HUK Loan Agreement.

 

9. Capital Lease Obligations

 

The Company leases certain assets under an agreement that is classified as a capital lease. The future minimum lease payments required under the capital lease and the present value of the net minimum lease payments as of June 30, 2015 are as follows:

  

Six months Ending December 31, 2015  $14,200 
Year Ending December 31, 2016   28,500 
Year Ending December 31, 2017   28,500 
Year Ending December 31, 2018   22,100 
Year Ending December 31, 2019   22,100 
Year Ending December 31, 2020   11,000 
    126,400 
Less amounts representing interest   (12,900)
Present value of minimum lease payments   113,500 
Less current maturities   (25,300)
Non-current leases payable  $88,200 

 

10. Severance Payable

 

The Company is a party to a Separation and Severance Agreement (the “Separation Agreement”) with Mr. Yashpal Singh, its President and Chief Executive Officer. Pursuant to the terms of the Separation Agreement, upon Mr. Singh’s (i) termination of employment for Good Reason (as defined in the Separation Agreement), (ii) termination of employment at the end of the employment term, (iii) death, (iv) disability or (v) termination by the Company without Cause (as defined in the Separation Agreement), he shall be entitled to certain severance benefits and payments. The severance payment shall equal the product of 2.5 times his average monthly base salary (calculated over the twelve (12) month period preceding the termination event), multiplied by the number of years (on a pro-rated basis) he had been employed by the Company at the Termination Date (as defined in the Separation Agreement); provided, however, that the severance payment may not exceed thirty (30) months of Mr. Singh’s average monthly base salary (calculated over the twelve (12) months preceding his termination date). Payments due to Mr. Singh under the Separation Agreement shall be paid in equal monthly installments by the Company over a 20 month period. The receipt of payments is contingent on Mr. Singh executing a release of claims for the benefit of the Company. As of June 30, 2015, the Company estimated this obligation to be $760,100.

 

F-13
 

 

11. Commitments and Contingencies

 

Purchase of raw materials

 

Production of the Company’s beverages requires quantities of various processed agricultural products, including malt and hops for beer. The Company fulfills its commodities requirements through purchases from various sources, some through contractual arrangements and others on the open market.

 

Legal

 

The Company is periodically involved in legal actions and claims that arise as a result of events that occur in the normal course of operations. Management and the Company’s legal counsel assess such contingent liabilities, and such assessment inherently involves the exercise of judgment.

 

On September 26, 2014, The New Buffalo Brewing Co., Inc. (“NBB”) initiated an action against Releta in the Supreme Court of the State of New York for the County of Erie to recover damages for alleged breaches of a Brewing Production Agreement between NBB and Releta dated September 6, 2013 (the “Brewing Production Agreement”), as well as for a declaration rescinding and nullifying the Brewing Production Agreement, and, in case of Releta’s failure to answer or appear, damages resulting from the alleged breaches, rescission of the Brewing Production Agreement, attorneys’ fees and any other relief deemed proper by the court. In a demand letter to Releta dated October 16, 2014, NBB demanded payment of the sum of $500,000. The Company has engaged a law firm in New York to respond.

 

On June 3, 2015, IAE International Aero Engines AG (“IAE”) served the Company with a complaint (the “Complaint”), filed in Marin County Superior Court, California (the “Court”), which requests, among other things, (i) that the Court recognize and enforce a foreign judgment against an Indian corporate entity (which is an affiliate of the Company), the alleged judgment debtor, and (ii) that such judgment be made enforceable against any assets of the Company (and of the other defendants) that are located in California, on the alleged ground that the Company (along with the other defendants) is an “alter ego” of the alleged judgment debtor. Along with the Complaint, IAE also served the Company with an ex parte application for a right to attach order and a writ of attachment, and, in the alternative, a temporary protective order (collectively, the “ex parte application”) to, among other things, stop the Company from making certain transfers to related parties other than in the ordinary of business.

 

The ex parte application came up for hearing before the Court on June 5, 2015. At the conclusion of that hearing, the Court: (i) issued a temporary protective order of limited scope, providing that to the extent the Company had possession, custody or control of any stock belonging to the alleged judgment debtor (which the Company does not), it should not transfer said stock out of Marin County, California until 5:00 PM (Pacific Time), June 9, 2015; and (ii) continued the hearing on the ex parte application to 3:00 PM on June 9, 2015. At the conclusion of the continued hearing on June 9, 2015, the Court denied the ex parte application for a writ of attachment and dissolved the limited temporary protective order.

 

The Company believes that the allegations in the Complaint are without merit and will continue to vigorously defend against the lawsuit.

 

As discussed in more detail in the Company’s Current Report on Form 8-K filed on June 9, 2015, the Company has discussed with the Lender the allegations set forth in the Complaint and the ex parte application and, as of the date of this Quarterly Report, the Company has not received any notice or other communication from the Lender that the Lender intends to exercise any of the remedies available to it under the Credit and Security Agreement in connection therewith.

 

F-14
 

 

The Company is not currently aware of any legal proceedings or claims that the Company believes will have, individually or in the aggregate, a material adverse effect on the Company’s financial position or results of operations.

 

Operating Leases

 

The Company leases some of its operating and office facilities for various terms under long-term, non-cancelable operating lease agreements. The leases expire at various dates between 2015 and 2020 and provide for renewal options ranging from month-to-month to five years. In the normal course of business, it is expected that these leases will be renewed or replaced by leases on similar properties. The leases provide for increases in future minimum annual rental payments based on defined increases which are generally meant to correlate with the Consumer Price Index, subject to certain minimum increases. Also, the agreements generally require the Company to pay certain costs, including real estate taxes, insurance and repairs.

 

MBC and its subsidiaries have various lease agreements for the brewpub and gift store in Ukiah, California, the brewery at Releta’s Saratoga Springs, New York facility, a building in the UK, and certain equipment. The New York lease includes a renewal option for three additional five-year periods, which Releta intends to exercise, and some leases are adjusted annually for changes in the Consumer Price Index.

 

12. Related-Party Transactions

 

The Company conducts business with United Breweries of America, Inc. (“UBA”), which owns approximately 25% of the Company’s common stock. Until October 2013, KBEL had significant transactions with Shepherd Neame, Ltd., which is a related party with respect to a former Board member. KBEL also had significant transactions with HUK, a related party with respect to one of MBC’s Board members, beginning in October 2013.

 

The following table reflects the value of such transactions during the six months ended June 30, 2015 and 2014 and the balances outstanding as of June 30, 2015 and December 31, 2014.

 

TRANSACTIONS  June 30, 2015   June 30, 2014 
Purchases from HUK  $5,530,600   $6,523,700 
Expense reimbursement including interest to HUK  $464,600   $548,100 
Interest expense related to UBA convertible notes  $45,100   $45,100 
Interest expenses related to Catamaran notes  $33,100   $14,800 
Borrowing from Catamaran  $500,000   $1,000,000 

 

ACCOUNT BALANCES  June 30, 2015   Dec 31, 2014 
Accounts payable and accrued liability to HUK  $1,369,600   $1,802,300 
Notes payable to Catamaran  $1,571,800   $1,038,700 
Notes payable to UBA  $3,634,000   $3,588,900 

  

13. Segment Information

 

The Company’s business presently consists of two segments – the North American Territory and the Foreign Territory. The Company’s operations in the North American Territory consist primarily of brewing and marketing proprietary craft beers. For distribution in the North American Territory, the Company brews its brands in its own facilities, which are located in Ukiah, California and Saratoga Springs, New York. The Company’s operations in the Foreign Territory, which are conducted through its wholly-owned subsidiary UBIUK and UBIUK’s wholly-owned subsidiary KBEL, consist primarily of the marketing and distribution of Kingfisher Premium Lager in the Foreign Territory.

 

F-15
 

 

A summary of each segment is as follows:

 

Six months ended June 30, 2015
   North
American
Territory
   Foreign 
 Territory
   Total 
             
Net Sales  $ 5,540,200    $9,292,500   $ 14,832,700  
Operating Income (Loss)  $(586,800)  $96,500   $(490,300)
Identifiable Assets  $13,183,400   $4,106,600   $17,290,000 
Depreciation & Amortization  $336,700   $244,700   $581,400 
Capital Expenditures  $70,400   $269,300   $339,700 

 

Six months ended June 30, 2014
   North
American
Territory
   Foreign 
Territory
   Total 
             
Net Sales  $5,979,500   $10,783,200   $16,762,700 
Operating Income (loss)  $(710,300)  $428,800   $(281,500)
Identifiable Assets  $14,749,600   $4,539,500   $19,289,100 
Depreciation & Amortization  $339,200   $213,400   $552,600 
Capital Expenditures  $57,700   $187,000   $244,700 

 

F-16
 

 

14. Unrestricted Net Assets

 

The Company’s wholly-owned subsidiary, UBIUK, had undistributed losses of $700,300 as of June 30, 2015. Under KBEL’s line of credit agreement with RBS, distributions and other payments to MBC from KBEL are not permitted if retained earnings drop below $1,572,700. Condensed financial information of MBC, together with its other subsidiary, Releta, is as follows:

 

Balance Sheets

 

Balance Sheets  June 30, 2015 (unaudited)   December 31, 2014 
         
Assets          
Cash and cash equivalents  $119,900   $61,500 
Accounts receivable, net   1,198,400    1,365,000 
Inventories   1,609,300    2,047,700 
Other current assets   327,300    173,600 
Total current assets   3,254,900    3,647,800 
           
Investment in subsidiary   1,225,000    1,225,000 
Property and equipment   9,660,700    9,904,500 
Intercompany receivable   258,000    421,900 
Other assets   267,800    310,400 
Total assets  $14,666,400   $15,509,600 
           
Liabilities          
Line of credit  $814,000   $1,192,900 
Accounts payable   2,515,500    2,620,000 
Accrued liabilities   1,161,200    1,031,300 
Note payable related party   1,571,800    1,038,700 
Subordinated convertible notes payable   3,634,000    - 
Current maturities of debt, leases and severance   4,107,500    3,918,900 
Total current liabilities   13,804,000    9,801,800 
           
Long-term capital leases   9,400    12,100 
Subordinated convertible notes payable   -    3,588,900 
Severance payable   304,100    760,100 
Total liabilities   14,117,500    14,162,900 
           
Stockholders’ equity          
Common stock   15,100,300    15,100,300 
Preferred stock   227,600    227,600 
Accumulated deficit   (14,779,000)   (13,981,200)
Total stockholders’ equity   548,900    1,346,700 
Total liabilities and stockholders’ equity  $14,666,400   $15,509,600 

  

F-17
 

   

Statements of Operations  Three months ended June 30,   Six months ended June 30, 
   2015   2014   2015   2014 
   (unaudited)   (unaudited)   (unaudited)   (unaudited) 
Net sales  $3,166,500   $3,244,600   $5,540,200   $5,979,500 
Cost of goods sold   (2,471,300)   (2,699,900)   (4,593,900)   (5,058,300)
Sales, marketing, and retail expenses   (322,300)   (341,100)   (675,700)   (706,400)
General and administrative expenses   (380,600)   (424,800)   (860,700)   (928,200)
Loss from operations   (7,700)   (221,200)   (590,100)   (713,400)
                     
Other income   40,500    8,800    43,600    10,700 
Interest expense   (124,500)   (130,900)   (247,500)   (256,600)
Provision for taxes   -    -    (3,800)   - 
Net loss  $(91,700)  $(343,300)  $(797,800)  $(959,300)

 

 Statements of Cash Flows    Six months ended June 30,  
   2015   2014 
   (unaudited)   (unaudited) 
Cash flows from operating activities  $113,900   $(837,900)
Purchase of property and equipment   (70,400)   (57,700)
Net borrowing (repayment) on line of credit   (378,900)   (20,500)
Borrowing on note payable   500,000    1,000,000 
Repayment on long term debt   (267,400)   (267,400)
Payment on obligation under capital lease   (2,700)   (2,600)
Net change in payable to UBIUK   163,900    128,700 
Decrease in cash   58,400    (57,400)
Cash, beginning of period   61,500    113,700 
Cash, end of period  $119,900   $56,300 

 

15. Income Taxes

 

In the six months ended June 30, 2015 and 2014, the Company recorded tax expenses related to state franchise taxes only, and did not record income tax expenses due to the availability of deferred tax assets to offset any taxable income in the US (at the federal and state level to the extent applicable) and the UK. The Company has established a full valuation allowance against the Company’s deferred tax assets based on an assessment that the criteria that deferred tax assets will more likely than not be realized has not yet been met. During the six months ended June 30, 2015 and 2014, the Company’s effective tax rates were de minimis.

 

The Company’s major tax jurisdictions are (i) US (federal), (ii) California (state), (iii) New York (state) and (iv) UK. Tax returns remain open to examination by the applicable governmental authorities for tax years 2011 through 2014. The federal and state taxing authorities may choose to audit tax returns for prior years due to significant tax attribute carryforwards for those prior years. However, such audits will be limited to adjustments to such carryforward tax attributes. The Company is not currently being audited in any tax jurisdiction.

 

F-18
 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

The following discussion summarizes the significant factors affecting the consolidated operating results, financial condition and liquidity/cash flows of the Company for the three and six months ended June 30, 2015, compared to the three and six months ended June 30, 2014. This discussion should be read in conjunction with the Consolidated Financial Statements and Notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

 

In the rest of this Quarterly Report on Form 10-Q, the terms “we”, “us”, “our”, and “the Company” and its variants are generally used to refer to Mendocino Brewing Company, Inc. and its subsidiaries, while the term “MBC” is used to refer to Mendocino Brewing Company, Inc. as an individual entity standing alone.

 

Forward Looking Statements

 

Various portions of this Quarterly Report on Form 10-Q, including but not limited to the section captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contain forward-looking information. Such information involves risks and uncertainties that are based on current expectations, estimates and projections about the Company’s business, Management’s beliefs, and assumptions made by Management. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and variations of those and similar words are intended to identify such forward-looking information. Any forward-looking statements made by the Company are intended to provide investors with additional information with which they may assess the Company’s future potential. All forward-looking statements are based on assumptions about an uncertain future and are based on information available as of the date such statements are issued. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking information due to numerous factors, including but not limited to, changes in the pricing environment for the Company’s products, changes in demand for malt beverage products in different Company markets, changes in distributor relationships or performance, changes in customer preference for the Company’s malt beverage products, regulatory or legislative changes, the impact of competition, changes in the prices of raw materials, availability of financing for operations, changes in interest rates, changes in the Company’s European beer business, and other risks discussed elsewhere in this Quarterly Report on Form 10-Q and from time to time in the Company’s Securities and Exchange Commission (“SEC”) filings and reports. In addition, such statements could be adversely affected by general industry and market conditions and growth rates, and general domestic, Canadian and European economic and political conditions. The Company undertakes no obligation to update these forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made or to publicly release the results of any revisions to these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.

 

Segment Information

 

Prior to August 2001, the Company’s business operations were exclusively located in the US, and consisted of the manufacture and distribution of beer. With the Company’s acquisition of United Breweries International (UK), Ltd. (“UBIUK”) in August 2001, the Company gained a new business segment ― distribution of beer outside the US, primarily in the United Kingdom (the “UK”) and continental Europe (collectively, the “Foreign Territory”). This segment accounted for 62% and 63% of the Company’s gross sales during the first six months of 2015 and 2014 respectively, with the US and Canada (the “North American Territory”) accounting for the remaining 38% and 37% during the first six months of 2015 and 2014 respectively.

 

Seasonality

 

Sales of the Company’s products are somewhat seasonal. Historically, sales volumes in both the Company’s North American and Foreign Territories have been comparatively low during the first quarter of the calendar year. The volume of sales in any given area may also be adversely affected by local weather conditions. Because of the seasonality of the Company’s business, results for any one quarter are not necessarily indicative of the results that may be achieved for the full fiscal year.

 

Summary of Financial Results

 

The Company ended the first six months of 2015 with a net loss of $759,600, as compared to a net loss of $605,600 for the same period in 2014. As set forth more fully under the section captioned “Results of Operations” below, during the first six months of 2015, the Company experienced a decrease in net sales of $1,930,000 compared to the same period in 2014. Compared to the first six months of 2014, costs of goods sold decreased by $1,395,900, operating expenses decreased by $325,300, and net other expenses decreased by $58,600 in the first six months of 2015, all of which contributed to the Company’s results for the period.

 

RESULTS OF OPERATIONS

 

Three Months Ended June 30, 2015 Compared To Three Months Ended June 30, 2014

 

Net Sales

 

Our overall net sales for the second quarter of 2015 were $8,138,600, a decrease of $774,100, or 8.7%, compared to $8,912,700 for the second quarter of 2014. The decrease was due to a reduction in sales volume and exchange rate fluctuations.

 

3
 

 

North American Territory: Our net sales for the second quarter of 2015 were $3,166,500 compared to $3,244,600 for the same period in 2014, a decrease of $78,100, or 2.4%, mainly due to decreased sales volume, offset, in part, by price increases. The sales volume decreased to 15,400 barrels in the second quarter of 2015 from 16,500 barrels in the second quarter of 2014, a net decrease of 1,100 barrels, or 6.7% mainly due to reduction in sales of MBC’s brands due to competitive pressure. We have redesigned our product packaging to enhance its appeal and are introducing new products. We also continue to solicit opportunities to enter into non-binding contract brewing arrangements to address the low production capacity utilization rates in our Ukiah, California and Saratoga Springs, New York brewing facilities.

 

Foreign Territory: Net sales for the second quarter of 2015 were $4,972,100 compared to $5,668,100 during the corresponding period of 2014, a decrease of $696,000, or 12.3% due to lower sales volume, price reduction and exchange rate fluctuation. When measured in UK Pounds Sterling, the functional currency of the UK, the decrease was 3.7%.

 

Cost of Goods Sold

 

Cost of goods sold as a percentage of net sales during the second quarter of 2015 was 69.4%, as compared to 68.7% during the corresponding period of 2014.

 

North American Territory: Cost of goods sold as a percentage of net sales in the US during the second quarter of 2015 was 78.1%, compared to 83.2% during the corresponding period of 2014 mainly due to sales price increases. Utilization of our production capacity has a direct impact on cost. Generally, when facilities are operating at a higher percentage of production capacity, cost is favorably affected because fixed and semi-variable operating costs, such as depreciation and production costs, are spread over a larger volume base. Our production capacity is currently under-utilized.

 

Foreign Territory: Cost of goods sold as a percentage of net sales in the UK during the second quarter of 2015 was 64%, as compared to 60.4% during the corresponding period in 2014 due to lower sales realization.

 

Gross Profit

 

Due to reduction in sales revenue and higher cost of goods, gross profit for the second quarter of 2015 was $2,489,400 compared to $2,790,800 during the corresponding period of 2014 (a decrease of $301,400 or 10.8%). As a percentage of net sales, gross profit during the second quarter of 2015 decreased to 30.6% from 31.3% for the second quarter of 2014.

 

Operating Expenses

 

Operating expenses for the second quarter of 2015 were $2,460,800, a decrease of $291,600, or 10.6%, as compared to $2,752,400 for the corresponding period of 2014. Operating expenses consist of marketing and distribution related expenses and general and administrative expenses.

 

Marketing and Distribution Related Expenses: Our marketing and distribution related expenses for the second quarter of 2015 were $1,457,100, as compared to $1,607,300 for the second quarter of 2014, representing a decrease of $150,200 or 9.3%.

 

  North American Territory: Marketing and distribution related expenses for the second quarter of 2015 were $322,300 compared to $341,100 during the corresponding period of 2014, representing a decrease of $18,800 or 5.5%. As a percentage of net sales in the US, such expenses were 10.2% during the second quarter of 2015, compared to 10.5% during the corresponding period of 2014. The decrease was due to a reduction in manpower and associated travel costs.
     
  Foreign Territory: Marketing and distribution related expenses for the second quarter of 2015 were $1,134,800 compared to $1,266,200 during the corresponding period of 2014, representing a decrease of $131,400, or 10.4%. This decrease is mainly due exchange rate fluctuation. As a percentage of net sales in the UK, marketing and distribution related expenses were 22.8% during the second quarter of 2015 compared to 22.3% during the corresponding period of 2014.

 

4
 

 

General and Administrative Expenses: Our general and administrative expenses were $1,003,700 for the second quarter of 2015, representing a decrease of $141,400 or 12.3%, from $1,145,100 for the corresponding period in 2014.

 

  North American Territory: General and administrative expenses in the North American Territory were $380,600 for the second quarter of 2015, representing a decrease of $44,200, or 10.4%, compared to $424,800 for the second quarter of 2014. The decrease is due to a reduction in manpower.
     
  Foreign Territory: General and administrative expenses related to the Foreign Territory were $623,100 for the second quarter of the year 2015, representing a decrease of $97,200 or 13.5%, when compared to $720,300 for the second quarter of 2014. The decrease was mainly due to reduction in various miscellaneous operating expenses and exchange rate fluctuation.

 

Other Expenses

 

Net other expenses for the second quarter of 2015 totaled $114,300, representing a decrease of $61,100, or 34.8%, when compared to $175,400 for the second quarter of 2014. The decrease was due to lower interest payments resulting from a reduction in borrowings and increased miscellaneous income.

 

Income Taxes

 

We made no income tax provisions for the second quarters of 2015 and 2014.

 

Net Loss

 

Our net loss for the second quarter of 2015 was $85,700, compared to net loss of $137,000 for the second quarter of 2014. After providing for a negative foreign currency translation adjustment of $30,000 during the second quarter of 2015 (as compared to negative adjustment of $28,900 for the same period in 2014), our comprehensive loss for the second quarter of 2015 was $115,700, compared to comprehensive loss of $165,900 for the same period in 2014. As discussed above, the primary reason for the loss was the reduction in our sales revenue.

 

Six Months Ended June 30, 2015 Compared To Six Months Ended June 30, 2014

 

Net Sales

 

Our overall net sales for the first six months of 2015 were $14,832,700, a decrease of $1,930,000, or 12%, compared to net sales of $16,762,700 for the same period in 2014.

 

North American Territory: Net sales for the first six months of 2015 were $5,540,200 compared to $5,979,500 for the same period in 2014, a decrease of $439,300 or 7.3%. Our North American sales volumes decreased to 27,100 barrels during the first six months of 2015 from 29,400 barrels in the first six months of 2014, representing a decrease of 2,300 barrels or 7.8%. Sales of MBC’s brands decreased by 3,100 barrels, sales of Kingfisher brands increased by 700 barrels and sales of contract brands increased by 100 barrels during the first six months of 2015 compared to the same period in 2014. We have redesigned our product packaging to enhance its appeal and are introducing new products. We also continue to solicit opportunities to enter into non-binding contract brewing arrangements to address the low production capacity utilization rates in our Ukiah, California and Saratoga Springs, New York brewing facilities, and anticipate that fluctuations in the availability of such contract brewing arrangements will continue to impact our net revenue in the North American Territory.

 

Foreign Territory: Net sales for the first six months of 2015 were $9,292,500 compared to $10,783,200 during the corresponding period of 2014, a decrease of $1,490,700 or 13.8%. The decrease is due to lower sales volume, price reduction and exchange rate fluctuation. When measured in UK Pounds Sterling, the functional currency of the UK, the reduction is 5.7%.

 

5
 

 

Cost of Goods Sold

 

Cost of goods sold as a percentage of net sales during the first six months of 2015 was 69.1%, as compared to 69.5% during the corresponding period of 2014.

 

North American Territory: Cost of goods sold as a percentage of net sales in the North American Territory during the first six months of 2015 was 82.9%, as compared to 84.6%, during the corresponding period of 2014 mainly due to sales price increases. Generally, when facilities are operating at higher percentage of production capacity, cost is favorably affected because fixed and semi-variable operating costs, such as depreciation and production costs, are spread over a larger volume base. Our production capacity is currently under-utilized.

 

Foreign Territory: Cost of goods sold as a percentage of net sales in the Foreign Territory during the first six months of 2015 was 60.9%, as compared to 61.1% during the corresponding period in 2014.

 

Gross Profit

 

As a result of decrease in sales revenue and a decrease in cost of goods in the Foreign Territory, gross profit for the first six months of 2015 decreased to $4,585,000 from $5,119,100 during the corresponding period of 2014. As a percentage of net sales, the gross profit during the first six months of 2015 was 30.9% compared to 30.5% during the corresponding period in 2014.

 

Operating Expenses

 

Operating expenses for the first six months of 2015 were $5,075,300, a decrease of $325,300, or 6%, as compared to $5,400,600 for the corresponding period of the year 2014. Operating expenses consist of marketing and distribution related expenses and general and administrative expenses.

 

Marketing and Distribution Related Expenses: Our marketing and distribution related expenses for the first six months of the year 2015 were $2,860,000, as compared to $3,135,200 for the same period in 2014, representing a decrease of $275,200 or 8.8%.

 

North American Territory: Marketing and distribution related expenses for the first six months of 2015 were $675,700 compared to $706,400 during the corresponding period of 2014, representing a decrease of $30,700 or 4.3%. The decrease was due to a reduction in manpower and associated travel costs. These expenses equaled 12.2% of net sales in the US during the first six months of the year 2015, compared to 11.8% during the corresponding period of 2014.

 

Foreign Territory: Marketing and distribution related expenses for the first six months of 2015 decreased to $2,184,300 compared to $2,428,800 during the corresponding period of 2014, representing a decrease of $244,500 or 10% mainly due to exchange rate fluctuation. Marketing and distribution related expenses were 23.5% of net sales in Foreign Territory during the first six months of 2015 compared to 22.5% during the first six months of 2014.

 

General And Administrative Expenses: Our general and administrative expenses were $2,215,300 for the first six months of the year 2015, representing a decrease of $50,100, or 2.2%, from $2,265,400 for the corresponding period in 2014.

 

North American Territory: General and administrative expenses in the North American Territory were $860,700 for the first six months of 2015, representing a decrease of $67,500, or 7.3%, from $928,200 for the same period in 2014 due to a reduction in manpower.

 

Foreign Territory: General and administrative expenses related to the Foreign Territory were $1,354,600 for the first six months of 2015, representing an increase of $17,400, or 1.3%, as compared to $1,337,200 for the same period in 2014.

 

Other Expenses

 

Net other expenses for the first six months of 2015 totaled $265,500 representing a decrease of $58,600, or 18.1%, when compared to $324,100 for the same period in 2014. The decrease was due to lower interest payments resulting from a reduction in borrowings and increased miscellaneous income.

 

6
 

 

Income Taxes

 

We had a provision of $3,800 for income taxes for the first six months of 2015 but did not have a provision for taxes during the corresponding period in 2014.

 

Net Loss

 

Our net loss for the first six months of 2015 was $759,600, as compared to net loss of $605,600 for the first six months of 2014. After providing for a negative foreign currency translation adjustment of $2,900 during the first six months of 2015 (as compared to a negative foreign currency translation adjustment of $40,300 for the same period in 2014), comprehensive loss for the first six months of 2015 was $762,500, compared to a comprehensive loss of $645,900 for the same period in 2014. As stated above, the primary reason for the loss was the drop in sales revenues during the first six months of 2015.

 

LIQUIDITY AND CAPITAL RESOURCES

 

Unused capacity at our Ukiah, California and Saratoga Springs, New York facilities has continued to place demands on our working capital. Historically, our operations have not generated sufficient cash flows to provide us with sufficient working capital. However, we believe that the liquidity we derive from the debt financing and cash flows attributable to our operations is sufficient to fund our capital expenditures, debt maturities and other business needs for the next twelve months. We normally generate our liquidity and capital resources primarily through operations and available debt financing.

 

On June 23, 2011, MBC and Releta entered into a Credit and Security Agreement (the “Credit and Security Agreement”) with Cole Taylor Bank, an Illinois banking corporation (“Cole Taylor”). Cole Taylor merged into MB Financial Bank, an Illinois banking corporation (“MB Financial”) on August 18, 2014. As used in this Quarterly Report, “Lender” shall refer to Cole Taylor prior to August 18, 2014 and to MB Financial, as successor in interest to Cole Taylor, on or after August 18, 2014. The Credit and Security Agreement provided a credit facility with a maturity date of June 23, 2016 of up to $10,000,000 consisting of a $4,119,000 revolving facility, a $1,934,000 machinery and equipment term loan, a $2,947,000 real estate term loan and a $1,000,000 capital expenditure line of credit. Convertible promissory notes issued to United Breweries of America, Inc. (“UBA”), one of the Company’s principal shareholders, are subordinated to Lender’s facility.

 

The Credit and Security Agreement requires MBC and Releta to maintain certain minimum fixed charge coverage ratios for trailing twelve month periods and minimum tangible net worth. The minimum tangible net worth MBC and Releta are required to maintain is subject to increase based on the net income of MBC and Releta. On March 29, 2013, MBC, Releta, and Lender entered into a First Amendment to the Credit and Security Agreement to clarify the method by which the fixed charge coverage ratio is calculated, with retrospective application.

 

The required fixed charge coverage ratio for the trailing twelve month periods ended March 31, 2013 onwards fell short of the required ratio. The tangible net worth fell short of the required amount for the period beginning June 1, 2013 onwards.

 

On September 18, 2013, MBC and Releta received a notice (the “Default Notice”) from Lender regarding its intention to exercise certain rights with respect to events of default of the Company pursuant to the Credit and Security Agreement.

 

The Credit and Security Agreement provides that the failure of MBC and Releta to observe any covenant will constitute an event of default under the Credit and Security Agreement. Under the Credit and Security Agreement, upon the occurrence of an event of default, all of MBC’s and Releta’s obligations under the Credit and Security Agreement may, at the option of the Lender, be declared, and immediately shall become, due and payable, without notice of any kind. The event of default shall be deemed continuing until waived in writing by the Lender. The Default Notice states that Lender has elected, effective September 1, 2013, to charge a default interest rate equal to two percent (2%) per annum in excess of the interest rate otherwise payable under the Credit and Security Agreement. The Company estimates that the increased rate currently results in approximately $120,000 additional annual interest expense.

 

7
 

 

On April 18, 2014, MBC and Releta received a second notice (the “Second Default Notice”) from Lender regarding its intention to exercise certain rights with respect to events of default of the Company pursuant to the Credit and Security Agreement. As stated in the Second Default Notice, the Company has continued to be in default on the fixed charge coverage ratio for each measurement period beginning March 31, 2013 through February 28, 2014. The required fixed charge coverage ratio was initially required to be at least 1.05 to 1.00, but as of July 31, 2013, the required fixed charge coverage ratio increased to 1.10 to 1.00 pursuant to the terms of the Credit and Security Agreement.

 

The Second Default Notice also stated that the tangible net worth of MBC and Releta continued to fall short of the required amount as measured through February 28, 2014. The Company does not anticipate that it will regain compliance with the required fixed charge coverage ratio or the minimum tangible net worth in the immediate future. In addition, the Second Default Notice required MBC and Releta to engage a consultant to perform a viability analysis and prepare a revised projection for 2014.

 

Effective August 20, 2014, pursuant to a notice to MBC and Releta dated August 18, 2014 (the “Third Default Notice”) which referred to MBC’s and Releta’s continued failure to meet the required fixed charge coverage ratio and the tangible net worth requirement, Lender notified MBC and Releta that it would reduce the advance rate for (i) eligible finished goods and raw material inventory and (ii) eligible work-in progress inventory by 2% each month. The advance rates are used in the calculation of the borrowing base of each of MBC and Releta, which is used in the determination of the amount available to each of MBC and Releta pursuant to the revolving facility. Under the terms of the Credit and Security Agreement, if such availability is less than $0, or if certain components of the borrowing base of each of MBC and Releta fall below certain limits in relation to outstanding revolving loans, such difference shall be immediately due and payable.

 

On January 21, 2015, MBC, Releta, and Lender entered into a Second Amendment (the “Second Amendment”) to the Credit and Security Agreement.

 

The Second Amendment reduced the maximum amount of the Revolver from $4,119,000 to $2,500,000. The Second Amendment also changed the definition of borrowing base (including by lowering certain advance rates) such that the calculation of the borrowing base will result in a lower number than it would have if calculated prior to the effectiveness of the Second Amendment. The borrowing base is used in the determination of the amount available to each Borrower pursuant to the Revolver. Pursuant to the Credit and Security Agreement, if such availability is less than $0, or if certain components of the borrowing base fall below certain limits in relation to outstanding revolving loans, such difference shall be immediately due and payable.

 

The Second Amendment reduced the advance rate for (i) eligible finished goods and raw material inventory and (ii) eligible work-in progress inventory by two percent (2%) and continues to reduce each by an additional two percent (2%) on the 20th day of each month thereafter. The advance rates are used in the calculation of the borrowing base of each Borrower, which is used in the determination of the amount available to each Borrower pursuant to the Revolver. As stated above, if such availability is less than $0, or if certain components of the borrowing base fall below certain limits in relation to outstanding revolving loans, such difference shall be immediately due and payable.

 

Lender has not waived the events of default described in the Default Notice, the Second Default Notice or the Third Default Notice and has reserved the right to all other available rights and remedies under the Credit and Security Agreement, certain other related documents and applicable law. Lender could declare the full amount owed under the Credit and Security Agreement due and payable at any time for any reason or no reason. Since entering into the Second Amendment, the Company has not received any notice or other communication from Lender that it intends to exercise any other remedies available to it under the Credit and Security Agreement in connection with the events of default. Lender continues to charge a default interest rate equal to two percent (2%) per annum in excess of the interest rate otherwise payable under the Credit and Security Agreement. The exercise of additional remedies by Lender may have a material adverse effect on the Company’s financial condition and the Company’s ability to continue to operate. If it becomes necessary for MBC and Releta to seek additional financing, there is no guarantee that MBC and Releta will be able to obtain such financing on terms favorable to the Company or on any terms.

 

8
 

 

As of June 30, 2015, the fixed charge coverage ratio was required to be 1.10 to 1. The Company calculated that the fixed charge coverage ratio as of June 30, 2015 was -1.12 to 1. The Company calculated that the required tangible net worth of MBC and Releta was $6,181,400 as of June 30, 2015 and the actual tangible net worth on such date was $3,676,600. The Company does not anticipate that it will regain compliance with the required fixed charge coverage ratio or the minimum tangible net worth in the immediate future.

 

At June 30, 2015, The Company had cash and cash equivalents of $121,500, an accumulated deficit of $17,006,700, and a working capital deficit of $11,820,200 due to losses incurred, reclassification of debts owing to MB Financial as a result of the default under the Credit and Security Agreement described above and reclassification of subordinated notes payable to UBA as a result of a subordination agreement, which subordinated notes are maturing in June 2016. In addition, the book value of the Company’s assets was lower than the book value of its liabilities at June 30, 2015.

 

The Company received a letter dated November 11, 2013 from UBHL, our indirect majority shareholder, expressing its willingness to commit to invest $2,000,000 in the Company in four installments to be paid every six months over a two year period. The letter did not state definitive terms for the proposed investment but stated that UBHL would consider such additional investment based on a business plan to be provided by the Company. We provided a business plan in February 2015 and requested additional investment from UBHL and are awaiting UBHL’s response. If we are unable to come to a final agreement with UBHL on the terms of the proposed investment or if UBHL does not agree to provide additional investment we will pursue other sources of funds.

 

In response to the losses incurred in connection with our operations, UBHL, our indirect majority shareholder, issued a letter of comfort to the Company’s accountants on March 5, 2015 (the “Letter of Comfort”), to confirm that UBHL would provide funding on an as needed basis to ensure that the Company is able to meet its financial obligations as and when they fall due. The Letter of Comfort does not specify either the terms of UBHL’s support, or a maximum dollar limit and is not a legally binding agreement. UBHL’s financial support is contingent upon compliance with any applicable exchange control requirements, other applicable laws, and regulations relating to the transfer of funds from India. The Letter of Comfort does not specify any time limit for extending support. If it becomes necessary to seek UBHL’s financial assistance under the Letter of Comfort and UBHL is either unable or unwilling to provide such financial assistance to MBC, it may result in a material adverse effect on the Company’s financial position and on its ability to continue operations. UBHL controls the Company’s two largest shareholders, United Breweries of America, Inc. (“UBA”) and Inversiones, and as such, is the Company’s indirect majority shareholder. The Company’s Chairman of the Board, Dr. Vijay Mallya, is also the Chairman of the board of directors of UBHL.

 

In addition, the Company’s lenders may seek to satisfy any outstanding obligations through recourse against the applicable pledged collateral which may include our real property and fixed and current assets. The loss of any material pledged asset would likely have a material adverse effect on the Company’s financial position and results of operations.

 

Management has taken several actions to enable the Company to meet its working capital needs through June 30, 2016, including reducing discretionary expenditures, reducing manpower, securing additional brewing contracts in an effort to utilize a portion of excess production capacity and pursuing export opportunities. The Company has requested UBHL to make a capital infusion. If UBHL is unwilling or unable to infuse additional capital, the Company may seek capital from other sources.

 

9
 

 

If the Company is unable to find any source of funds, it may result in a material adverse effect on its ability to continue operations. For example, MB Financial may seek to satisfy any outstanding obligations through recourse against the applicable pledged collateral which may include our real property, fixed assets and current assets. The loss of any material pledged asset would likely have a material adverse effect on the Company’s financial position and results of operations.

 

On January 22, 2014, Catamaran Services, Inc., (“Catamaran”), a related party (see “Notes Payable to Related Parties”, below), provided a note loan of $500,000 repayable upon receipt of an equity investment by the Company’s majority shareholder. On April 24, 2014, another note loan of $500,000 was received from Catamaran on terms similar to the previous note. On February 5, 2015, another note loan of $500,000 was received from Catamaran on terms similar to the previous notes. On June 30, 2015, another note was issued to Catamaran for $500,000 on terms similar to the previous notes (the proceeds of such note were received by the Company on July 6, 2015). On each date on or prior to which Catamaran provided a note loan, the Company received a letter from Lender permitting the Company to obtain loans subject to certain conditions, including that no portion of such loans would be payable until either (a) certain obligations of the Company to Lender pursuant to the Credit and Security Agreement were satisfied in full, or (b) such payment was made from an equity investment by the Company’s majority shareholder.

 

We have several loans, lines of credit, other credit facilities and lease agreements which are currently outstanding (collectively, “Indebtedness”). We currently make timely payments of principal and interest relating to the Indebtedness as they fall due and anticipate that we will continue to make such timely payments in the immediate future. However, if we fail to maintain any of the financial covenants under the various agreements governing Indebtedness (such as the defaults under the Credit and Security Agreement described above), fail to make timely payments of amounts due under the Indebtedness, or commit any other breach resulting in an event of default under the agreements governing Indebtedness, such events of default (including cross-defaults) could have a material adverse effect on our financial condition and results of operations. If our existing debt were accelerated and terminated, we would need to obtain replacement financing, the lack of which would have a material adverse effect on our financial condition and ability to continue operations. In addition, actions taken by secured parties against the Company’s assets which have been pledged as collateral could have a material adverse effect on our financial condition and results of operations.

 

Management has taken several actions to reduce the Company’s working capital needs through June 30, 2016, including reducing discretionary expenditures, reducing manpower, securing additional brewing contracts in an effort to utilize a portion of excess production capacity, and pursuing export opportunities. The current revenue from operations are insufficient to meet the working capital needs of the Company over the next 12 months. The Company has requested UBHL to make a capital infusion. If UBHL is unwilling or unable to infuse additional capital, the Company will seek capital from other sources, including outside investors. If sufficient capital is not obtained, the Company may sell some of its operating assets.

 

Cash Flow Results

 

Net cash provided by operating activities for the six months ended June 30, 2015 was $427,300, compared to net cash used in operations of $371,300 for the six months ended June 30, 2014. During the first six months of 2015, accounts receivable decreased by $957,000 mainly due to increased collections in Foreign Territory. Accounts payable during the first six months of 2015 decreased by $797,500, mainly due to a reduction in the accounts payable in our Foreign Territory. Our inventory decreased by $435,700 during the first six months of 2015 due to lower production in North American Territory. Accrued liabilities increased by $81,700 during the first six months of 2015 due to an increase in the financing of insurance premiums.

 

Net cash used in investing activities totaled $339,700 for the first six months of 2015, compared to $228,400 during the corresponding period in 2014, due to increased purchases of beer dispensing equipment.

 

Net cash used in financing activities during the first six months of 2015 totaled $112,100, compared to net cash provided by financing activities during the first six months of 2014 of $349,800, as a result of borrowing against the notes payable to Catamaran in the North American Territory and net decrease in use of the revolving line of credit in the Foreign Territory and repayment of debts to MB Financial and HUK.

 

10
 

 

Description of Our Indebtedness

 

MB Financial Facility

 

On June 23, 2011, MBC and Releta entered into the Credit and Security Agreement with Lender (as described in “Liquidity and Capital Resources”). The Credit and Security Agreement provided a credit facility of up to $10,000,000 with a maturity date of June 23, 2016, consisting of a $4,119,000 revolving facility, a $1,934,000 machinery and equipment term loan, a $2,947,000 real estate term loan and a $1,000,000 capital expenditure line of credit. At the time that the applicable loan or advance is made, we may choose, subject to certain contingencies, an interest rate based on either LIBOR or the Wall Street Journal prime rate as follows: (a) with respect to the revolving facility, either LIBOR plus a margin of 3.50% or the Wall Street Journal prime rate plus a margin of 1.00%, (b) with respect to the machinery and equipment term loan and the capital expenditure term loan, either LIBOR plus a margin of 4.25% or the Wall Street Journal prime rate plus a margin of 1.50%, and (c) with respect to the real estate term loan, either LIBOR plus a margin of 4.75% or the Wall Street Journal prime rate plus a margin of 2.00%. As described below, effective September 1, 2013, Lender is charging a default interest rate equal to two percent (2%) per annum in excess of the interest rate otherwise payable under the Credit and Security Agreement. As described below, the Second Amendment (among other things) reduces the advance rate for (i) eligible finished goods and raw material inventory and (ii) eligible work-in progress inventory by 2% each month. The advance rates are used in the calculation of the borrowing base of each of MBC and Releta, which is used in the determination of the amount available to each of MBC and Releta pursuant to the revolving facility. Under the terms of the Credit and Security Agreement, if such availability is less than $0, or if certain components of the borrowing base of each of MBC and Releta fall below certain limits in relation to outstanding revolving loans, such difference shall be immediately due and payable. The Second Amendment also reduces the maximum amount of the Revolver from $4,119,000 to $2,500,000 and changes the definition of borrowing base (including by lowering certain advance rates). The Credit and Security Agreement binds us to certain financial covenants including maintaining prescribed minimum tangible net worth and prescribed minimum fixed charges coverage. There is a prepayment penalty if we prepay all of our obligations prior to the maturity date. The credit facility is secured by a first priority security interest in all of MBC’s and Releta’s personal property and a first priority mortgage on our Ukiah, California real property, among other MBC and Releta assets.

 

On March 29, 2013, MBC and Releta entered into the Amendment to the Credit and Security Agreement (as described in “Liquidity and Capital Resources”). The Amendment clarifies the method by which the fixed charge coverage ratio shall be calculated.

 

As previously disclosed, the Company has been and remains in default of the fixed charge coverage ratio and the minimum tangible net worth requirement among other covenants contained in the Credit and Security Agreement. On September 18, 2013, April 18, 2014 and August 18, 2014, MBC and Releta received the Default Notice, the Second Default Notice and the Third Default Notice, respectively, from Lender regarding its intention to exercise certain rights with respect to events of default of the Company pursuant to the Credit and Security Agreement. Under the Credit and Security Agreement, upon the occurrence of an event of default, all of MBC’s and Releta’s obligations under the Credit and Security Agreement may, at the option of Lender, be declared, and immediately shall become, due and payable, without notice of any kind. The Default Notice stated that Lender has elected to charge a default interest rate equal to two percent (2%) per annum in excess of the interest rate otherwise payable under the Credit and Security Agreement effective September 1, 2013. The Second Default Notice required MBC and Releta to engage a consultant to perform a viability analysis and prepare a revised projection for 2014. The Third Default Notice notified us that Lender would be reducing the advance rate for (i) eligible finished goods and raw material inventory and (ii) eligible work-in progress inventory by 2% each month. For more details on the defaults, please refer to “Liquidity and Capital Resources” above.

 

On January 21, 2015, MBC, Releta, and Lender entered into a Second Amendment (the “Second Amendment”) to the Credit and Security Agreement.

 

The Second Amendment reduced the maximum amount of the Revolver from $4,119,000 to $2,500,000. The Second Amendment also changed the definition of borrowing base (including by lowering certain advance rates) such that the calculation of the borrowing base will result in a lower number than it would have if calculated prior to the effectiveness of the Second Amendment. The borrowing base is used in the determination of the amount available to each Borrower pursuant to the Revolver. Pursuant to the Credit and Security Agreement, if such availability is less than $0, or if certain components of the borrowing base fall below certain limits in relation to outstanding revolving loans, such difference shall be immediately due and payable.

 

11
 

 

The Second Amendment reduced the advance rate for (i) eligible finished goods and raw material inventory and (ii) eligible work-in progress inventory by two percent (2%) and continues to reduce each by an additional two percent (2%) on the 20th day of each month thereafter. The advance rates are used in the calculation of the borrowing base of each Borrower, which is used in the determination of the amount available to each Borrower pursuant to the Revolver. As stated above, if such availability is less than $0, or if certain components of the borrowing base fall below certain limits in relation to outstanding revolving loans, such difference shall be immediately due and payable.

 

Master Line of Credit and UBA Notes

 

On August 31, 1999, MBC and UBA, one of our principal shareholders, entered into a Master Line of Credit Agreement, which was subsequently amended in April 2000 and February 2001 (the “Credit Agreement”). The terms of the Credit Agreement provide us with a line of credit in the principal amount of up to $1,600,000. As of the date of this filing, UBA has made thirteen separate advances to us under the Credit Agreement and one additional advance on March 2, 2005 on substantially the same terms as those under the Credit Agreement, pursuant to a series of individual eighteen-month promissory notes issued by us to UBA (the “UBA Notes”). Thirteen of the UBA Notes are convertible into common stock at a rate of $1.50 per share and one UBA Note is convertible at a rate of $1.44 per share. UBA has executed an Extension of Term of Notes under Master Line of Credit Agreement and an amendment to the March 2, 2005 note (together, the “Extension Agreements”). The Extension Agreements, as amended, confirm UBA’s extension of the terms of the UBA Notes for a period ending on June 30, 2016 with automatic renewals after such maturity date for successive one year terms, provided that either MBC or UBA may elect not to extend a term upon written notice given to the other party no more than 60 days and no fewer than 30 days prior to the expiration of the applicable term.

 

The UBA Notes require us to make quarterly interest payments to UBA on the first day of April, July, October, and January. To date, UBA has permitted us to capitalize all accrued interest; therefore, we have borrowed the maximum amount available under the facility. Upon maturity of any of the UBA Notes, unless UBA has given us prior instructions to commence repayment of the outstanding principal balance, the outstanding principal and accrued but unpaid interest on such UBA Notes may be converted, at the option of UBA, into shares of our common stock. During the extended term of the UBA Notes, UBA has the right to require us to repay the outstanding principal balance, along with the accrued and unpaid interest thereon, to UBA within 60 days.

 

The UBA Notes are subordinated to credit facilities extended to us by Cole Taylor pursuant to a subordination agreement executed by UBA. Per the terms of the subordination agreement, UBA is precluded from demanding repayment of the UBA Notes unless and until the Lender’s facility is repaid in full.

 

The aggregate outstanding principal amount of the UBA Notes as of June 30, 2015 was $1,915,400, and the accrued but unpaid interest thereon was equal to approximately $1,718,600, for a total amount outstanding of $3,634,000.

 

As of June 30, 2015, the outstanding principal and interest on the UBA Notes was convertible into approximately 2,440,800 shares of our common stock. However, as the current market price of our common stock is substantially less than the conversion rate, voluntary conversion by UBA is unlikely.

 

12
 

 

Catamaran Notes:

 

On January 22, 2014, the Company issued a promissory note to Catamaran in the principal amount of $500,000. Catamaran Holdings, Ltd., the sole shareholder of Catamaran (“Holdings”) has directors in common with Inversiones, one of the major shareholders of the Company. The indirect beneficial owner of Inversiones is UBHL. Dr. Vijay Mallya, the Chairman of the Board of Directors of the Company is also the Chairman of the Board of Directors of UBHL. The Company has asked Catamaran whether any relationships exist between the shareholders of Holdings and any affiliates of the Company, and has not received a response to such inquiries. On April 24, 2014, the Company issued another note to Catamaran in the principal amount of $500,000 on terms similar to the note issued on January 22, 2014. On February 5, 2015, the Company issued a third note to Catamaran in the principal amount of $500,000, on terms similar to the notes issued earlier. On June 30, 2015, a fourth note was issued by the Company in the principal amount of $500,000 to Catamaran on terms similar to the previous notes and the proceeds against this note was received on July 6, 2015.

 

Pursuant to the terms of the notes, the Company promises to pay each note with accrued interest to Catamaran within six months following the date of the note, subject to the receipt by the Company of an equity investment by the Company’s majority shareholder (the “Shareholder Investment”) in an amount sufficient either (a) to pay the notes from equity investment by the Company’s majority shareholder, or (b) to pay the notes and certain existing obligations of the Company to Lender.

 

If the Company is not able to satisfy its obligations on the notes within the six month period following the date of the notes, the notes are automatically extended for additional six month terms until a Shareholder Investment sufficient to satisfy the notes is received. Interest shall accrue from the date of the notes on the unpaid principal at a rate equal to the lesser of (i) one and one-half percent (1.5%) per annum above the prime rate offered from time to time by the Bank of America Corporation in San Francisco, California, or (ii) ten percent (10%) per annum, until the principal is fully paid.

 

The notes may be prepaid without penalty at the option of the Company; however, no payments on the notes may be made unless such payment is a payment made from that portion of any equity investment by the Company’s majority shareholder that is in excess of $500,000, or certain existing obligations of the Company to Lender have been satisfied in full. The notes may not be amended without the prior written consent of Lender.

 

Other Loans, Credit Facilities and Commitments

 

Heineken Loan

 

On April 18, 2013, KBEL entered into a loan agreement with Heineken UK Limited (“HUK”) pursuant to which HUK agreed to provide KBEL with a secured term loan facility of £1,000,000 (the “HUK Loan Agreement”) which was made available, upon the fulfillment of certain conditions precedent, on October 9, 2013 and to be repaid in full by October 9, 2016. Interest on the loan is payable quarterly in arrears on the outstanding balance of the loan at the rate of 5% above the Bank of England base rate. Prepayment is permitted. Upon an event of default, as defined in the HUK Loan Agreement, if HUK and KBEL fail to agree on a payment plan acceptable to HUK, HUK may, among other remedies, declare the loan immediately due and repayable or exercise its right to an exclusive license pursuant to the Sub-Licence Agreement as described and defined in the HUK Loan Agreement.

 

Royal Bank of Scotland Facility

 

On April 26, 2005, Royal Bank of Scotland Commercial Services Limited (“RBS”) provided KBEL with an approximately $2.8 million (£1,750,000) maximum revolving line of credit with an advance rate based on 80% of KBEL’s qualified accounts receivable. This facility has a minimum maturity of twelve months, but is automatically extended unless terminated by either party upon six months’ written notice.

 

Weighted Average Interest

 

The weighted average interest rates paid on our US indebtedness was 6% for the first six months of 2015 and 2014. For loans primarily associated with our Foreign Territory, the weighted average rate paid was 4% and 5% for the first six months of 2015 and 2014 respectively.

 

13
 

 

Current Ratio

 

On June 30, 2015, our ratio of current assets to current liabilities was 0.34 to 1.00 and our ratio of total assets to total liabilities was 0.93 to 1.00. On June 30, 2014, our ratio of current assets to current liabilities was 0.53 to 1.0 and our ratio of total assets to total liabilities was 1.0 to 1.0.

 

Restricted Net Assets

 

The Company’s wholly-owned subsidiary, UBIUK, had undistributed losses of $700,300 as of June 30, 2015. Under KBEL’s line of credit agreement with RBS, distributions and other payments to MBC from KBEL are not permitted if retained earnings drop below $1,572,700.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Not required for smaller reporting companies.

 

Item 4. Controls and Procedures

 

Disclosure Controls And Procedures

 

Our Management team, under the supervision and with the participation of our chief executive officer (our principal executive officer) and our chief financial officer (our principal financial officer), evaluated the effectiveness of the design and operation of our disclosure controls and procedures as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the last day of the quarter ended June 30, 2015. The term disclosure controls and procedures means our controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to Management, including our chief executive officer and chief financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Based on this evaluation, our chief executive officer and our chief financial officer concluded that our disclosure controls and procedures were effective as of June 30, 2015.

 

Changes In Internal Control Over Financial Reporting

 

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter ended June 30, 2015 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

 

The Company is periodically involved in legal actions and claims that arise as a result of events that occur in the normal course of operations. Management and the Company’s legal counsel assess such contingent liabilities, and such assessment inherently involves the exercise of judgment.

 

On September 26, 2014, The New Buffalo Brewing Co., Inc. (“NBB”) initiated an action against Releta in the Supreme Court of the State of New York for the County of Erie to recover damages for alleged breaches of a Brewing Production Agreement between NBB and Releta dated September 6, 2013 (the “Brewing Production Agreement”), as well as for a declaration rescinding and nullifying the Brewing Production Agreement, and, in case of Releta’s failure to answer or appear, damages resulting from the alleged breaches, rescission of the Brewing Production Agreement, attorneys’ fees and any other relief deemed proper by the court. In a demand letter to Releta dated October 16, 2014, NBB demanded payment of the sum of $500,000. The Company has engaged a law firm in New York to respond.

 

14
 

 

On June 3, 2015, IAE International Aero Engines AG (“IAE”) served the Company with a complaint (the “Complaint”), filed in Marin County Superior Court, California (the “Court”), which requests, among other things, (i) that the Court recognize and enforce a foreign judgment against an Indian corporate entity (which is an affiliate of the Company), the alleged judgment debtor, and (ii) that such judgment be made enforceable against any assets of the Company (and of the other defendants) that are located in California, on the alleged ground that the Company (along with the other defendants) is an “alter ego” of the alleged judgment debtor. Along with the Complaint, IAE also served the Company with an ex parte application for a right to attach order and a writ of attachment, and, in the alternative, a temporary protective order (collectively, the “ex parte application”) to, among other things, stop the Company from making certain transfers to related parties other than in the ordinary of business.

 

The ex parte application came up for hearing before the Court on June 5, 2015. At the conclusion of that hearing, the Court: (i) issued a temporary protective order of limited scope, providing that to the extent the Company had possession, custody or control of any stock belonging to the alleged judgment debtor (which the Company does not), it should not transfer said stock out of Marin County, California until 5:00 PM (Pacific Time), June 9, 2015; and (ii) continued the hearing on the ex parte application to 3:00 PM on June 9, 2015. At the conclusion of the continued hearing on June 9, 2015, the Court denied the ex parte application for a writ of attachment and dissolved the limited temporary protective order.

 

The Company believes that the allegations in the Complaint are without merit and will continue to vigorously defend against the lawsuit.

 

As discussed in more detail in the Company’s Current Report on Form 8-K filed on June 9, 2015, the Company has discussed with the Lender the allegations set forth in the Complaint and the ex parte application and, as of the date of this Quarterly Report, the Company has not received any notice or other communication from the Lender that the Lender intends to exercise any of the remedies available to it under the Credit and Security Agreement in connection therewith.

 

The Company is not currently aware of any legal proceedings or claims that the Company believes will have, individually or in the aggregate, a material adverse effect on the Company’s financial position or results of operations.

 

Item 1A. Risk Factors

 

Smaller reporting companies are not required to provide the information required by this item.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

None.

 

Item 3. Defaults Upon Senior Securities

 

The discussion provided under the heading “Liquidity and Capital Resources” with respect to our default under our agreement with MB Financial, as successor in interest to Cole Taylor, and the discussion under the subheading “MB Financial Facility,” under the heading “Description of Our Indebtedness,” both set forth in Item 2 of PART I of this Quarterly Report, are hereby incorporated by reference in their entirety.

 

15
 

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

 

None.

 

Item 6. Exhibits

 

Exhibit
Number
  Description
     
10.1 (A) Promissory Note of Mendocino Brewing Company, Inc., in favor of Catamaran Services, Inc., dated June 30, 2015.
     
31.1   Certification of Principal Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934.*
     
31.2   Certification of Principal Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934.*
     
32.1   Certification of Principal Executive Officer Pursuant to Rule 13a-14(b)/15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.**
     
32.2   Certification of Principal Financial Officer Pursuant to Rule 13a-14(b)/15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.**
     
101.INS   XBRL Instance Document
101.SCH   XBRL Taxonomy Extension Schema Document
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF   XBRL Taxonomy Extension Definition Linkbase Document
101.LAB   XBRL Taxonomy Extension Label Linkbase Document
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document

 

 

 

* Filed herewith.

** Furnished herewith.

 

NOTE: Each Exhibit listed above that is annotated with one of the following letters is incorporated by reference from the following sources:

 

(A) MBC’s Current Report on Form 8-K filed as of July 7, 2015.

 

16
 

 

SignatureS

 

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

 

  mendocino brewing company, inc.
   
Dated: August 14, 2015 By: /s/ Yashpal Singh
    Yashpal Singh
    President and Chief Executive Officer
    (Principal Executive Officer)
     
Dated: August 14, 2015 By: /s/ Mahadevan Narayanan
    Mahadevan Narayanan
    Chief Financial Officer and Secretary
    (Principal Financial and Accounting Officer)

  

17
 

 

 

 

 

 

 

 

 

 

EX-31.1 2 ex31-1.htm

 

Exhibit 31.1

 

CERTIFICATION PURSUANT TO RULE 13a-14(a) AND 15d-14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934

 

I, Yashpal Singh, certify that:

 

  1. I have reviewed this quarterly report on Form 10-Q of Mendocino Brewing Company, Inc.;
       
  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 registrant’s other certifying officer 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; and
       
    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 registrant’s other certifying officer 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.

 

Date: August 14, 2015  
   
  /s/ Yashpal Singh
  Yashpal Singh,
  Chief Executive Officer
  (Principal Executive Officer)

 

 
 
EX-31.2 3 ex31-2.htm

 

Exhibit 31.2

 

CERTIFICATION PURSUANT TO RULE 13a-14(a) AND 15d-14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934

 

I, Mahadevan Narayanan, certify that:

 

  1. I have reviewed this quarterly report on Form 10-Q of Mendocino Brewing Company, Inc.;
       
  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 registrant’s other certifying officer 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; and
       
    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 registrant’s other certifying officer 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.

 

Date: August 14, 2015  
   
  /s/ Mahadevan Narayanan
  Mahadevan Narayanan,
  Chief Financial Officer
  (Principal Financial and Accounting Officer)

 

 
 
EX-32.1 4 ex32-1.htm

 

Exhibit 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

 

In connection with the Quarterly Report of Mendocino Brewing Company, Inc. (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Yashpal Singh, Chief Executive Officer of the Company, certify, pursuant to Title 18, United States Code, Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

 

  (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
     
  (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

Date: August 14, 2015    
  By: /s/ Yashpal Singh
  Name: Yashpal Singh
  Title: Chief Executive Officer
    (Principal Executive Officer)

 

 
 

EX-32.2 5 ex32-2.htm

  

Exhibit 32.2

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

 

In connection with the Quarterly Report of Mendocino Brewing Company, Inc. (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Mahadevan Narayanan, Chief Financial Officer of the Company, certify, pursuant to Title 18, United States Code, Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

 

  (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
     
  (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

Date: August 14, 2015    
     
  By: /s/ Mahadevan Narayanan
  Name: Mahadevan Narayanan
  Title: Chief Financial Officer
    (Principal Financial and Accounting Officer)

 

 
 

 

 

 

EX-101.INS 6 menb-20150630.xml XBRL INSTANCE FILE 0000919134 2014-12-31 0000919134 2011-06-30 0000919134 2015-01-01 2015-06-30 0000919134 us-gaap:RevolvingCreditFacilityMember 2011-06-23 0000919134 MENB:MachineryAndEquipmentTermLoanMember 2011-06-23 0000919134 MENB:RealEstateTermLoanMember 2011-06-23 0000919134 MENB:CapitalExpenditureLineOfCreditMember 2011-06-23 0000919134 MENB:RoyalBankOfScotlandCommercialServicesLimitedMember 2005-04-22 2005-04-26 0000919134 2011-06-23 0000919134 MENB:ParentAndSubsidiaryOrAffiliateCompanyMember 2015-01-01 2015-06-30 0000919134 MENB:OneUnitedBreweriesOfAmericaIncNoteMember 2015-06-30 0000919134 MENB:NorthAmericanTerritoryMember 2015-01-01 2015-06-30 0000919134 MENB:NorthAmericanTerritoryMember 2014-01-01 2014-06-30 0000919134 MENB:ForeignTerritoryMember 2014-01-01 2014-06-30 0000919134 MENB:MbFinancialBankNotesWithFourPercentageOfPrimePlusInterestRateMember 2015-06-30 0000919134 MENB:MbFinancialBankNotesWithFourPercentageOfPrimePlusInterestRateMember 2014-12-31 0000919134 MENB:MBFinancialBankNotesWithThreePointFivePercentageOfPrimePlusInterestRateMember 2015-06-30 0000919134 MENB:MBFinancialBankNotesWithThreePointFivePercentageOfPrimePlusInterestRateMember 2014-12-31 0000919134 MENB:MbFinancialBankNotesWithFourPercentageOfPrimePlusInterestRateMember 2015-01-01 2015-06-30 0000919134 MENB:MbFinancialBankNotesWithFourPercentageOfPrimePlusInterestRateMember 2014-01-01 2014-12-31 0000919134 MENB:MBFinancialBankNotesWithThreePointFivePercentageOfPrimePlusInterestRateMember 2015-01-01 2015-06-30 0000919134 MENB:MBFinancialBankNotesWithThreePointFivePercentageOfPrimePlusInterestRateMember 2014-01-01 2014-12-31 0000919134 2011-06-20 2011-06-23 0000919134 MENB:RoyalBankOfScotlandCommercialServicesLimitedMember 2005-04-26 0000919134 MENB:SubordinatedConvertibleNotesPayableMember 2015-01-01 2015-06-30 0000919134 MENB:ForeignTerritoryMember 2015-01-01 2015-06-30 0000919134 MENB:RoyalBankOfScotlandCommercialServicesLimitedMember 2015-06-30 0000919134 MENB:UBIUKMember 2015-06-30 0000919134 2015-06-30 0000919134 MENB:ParentAndSubsidiaryOrAffiliateCompanyMember 2014-12-31 0000919134 MENB:ParentAndSubsidiaryOrAffiliateCompanyMember 2014-01-01 2014-06-30 0000919134 MENB:ParentAndSubsidiaryOrAffiliateCompanyMember 2015-06-30 0000919134 2013-07-31 0000919134 2013-08-31 2013-09-01 0000919134 MENB:UnitedBreweriesHoldingLimitedMember 2013-11-06 2013-11-11 0000919134 MENB:LoanFromHeinekenUKLimitedWithFivePercentageOfInterestRateOfPrimePlusMember 2015-06-30 0000919134 MENB:LoanFromHeinekenUKLimitedWithFivePercentageOfInterestRateOfPrimePlusMember 2014-12-31 0000919134 MENB:LoanFromHeinekenUKLimitedWithFivePercentageOfInterestRateOfPrimePlusMember 2015-01-01 2015-06-30 0000919134 MENB:LoanFromHeinekenUKLimitedWithFivePercentageOfInterestRateOfPrimePlusMember 2014-01-01 2014-12-31 0000919134 MENB:HeinekenUKLimitedMember 2015-01-01 2015-06-30 0000919134 MENB:HeinekenUKLimitedMember 2014-01-01 2014-06-30 0000919134 MENB:HeinekenUKLimitedMember 2015-06-30 0000919134 MENB:HeinekenUKLimitedMember 2014-12-31 0000919134 MENB:CatamaranServiceIncMember 2014-01-21 2014-01-22 0000919134 2014-01-01 2014-06-30 0000919134 MENB:HeinekenUKLimitedMember MENB:GBPMember 2013-10-09 0000919134 MENB:HeinekenUKLimitedMember MENB:GBPMember 2013-10-06 2013-10-09 0000919134 MENB:CatamaranMember 2014-12-31 0000919134 MENB:CatamaranMember 2015-01-01 2015-06-30 0000919134 MENB:CatamaranMember 2014-01-01 2014-06-30 0000919134 2014-08-12 2014-08-20 0000919134 2014-06-30 0000919134 MENB:MbFinancialBankMember 2011-06-01 2011-06-30 0000919134 MENB:MbFinancialBankMember 2015-06-30 0000919134 MENB:CatamaranServiceIncMember 2015-02-01 2015-02-05 0000919134 MENB:MbFinancialBankMember 2015-01-01 2015-06-30 0000919134 MENB:CatamaranServicesIncMember 2015-06-30 0000919134 MENB:CatamaranServiceIncMember 2014-04-23 2014-04-24 0000919134 2013-12-31 0000919134 MENB:UnitedKingdomMember 2015-06-30 0000919134 MENB:UbaConvertibleNotesMember 2015-01-01 2015-06-30 0000919134 MENB:UbaConvertibleNotesMember 2014-01-01 2014-06-30 0000919134 MENB:ParentAndSubsidiaryOrAffiliateCompanyMember 2014-06-30 0000919134 MENB:ParentAndSubsidiaryOrAffiliateCompanyMember 2013-12-31 0000919134 MENB:ThirteenUnitedBreweriesOfAmericaIncNotesMember 2015-06-30 0000919134 MENB:SeverancePayableLongTermMember 2015-06-30 0000919134 us-gaap:RevolvingCreditFacilityMember MENB:AfterAmendmentMember 2015-01-20 2015-01-21 0000919134 2015-08-13 0000919134 2015-04-01 2015-06-30 0000919134 2014-04-01 2014-06-30 0000919134 MENB:CatamaranServiceIncMember 2015-01-01 2015-06-30 0000919134 MENB:BorrowingFromCatamaranMember 2014-01-01 2014-06-30 0000919134 MENB:BorrowingFromCatamaranMember 2015-01-01 2015-06-30 0000919134 MENB:UbaConvertibleNotesMember 2015-06-30 0000919134 MENB:UbaConvertibleNotesMember 2014-12-31 0000919134 MENB:CatamaranMember 2015-06-30 0000919134 MENB:UnitedBreweriesOfAmericaMember 2015-06-30 0000919134 MENB:ParentAndSubsidiaryOrAffiliateCompanyMember 2015-04-01 2015-06-30 0000919134 MENB:ParentAndSubsidiaryOrAffiliateCompanyMember 2014-04-01 2014-06-30 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure iso4217:GBP MENB:Number MENB:Segment MENDOCINO BREWING CO INC 2015-06-30 false --12-31 Smaller Reporting Company <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>Balance Sheets</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Balance Sheets</font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">June 30, 2015 (unaudited)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">December 31, 2014</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Assets</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 58%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Cash and cash equivalents</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 18%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">119,900</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 18%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">61,500</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Accounts receivable, net</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,198,400</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,365,000</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Inventories</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,609,300</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,047,700</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Other current assets</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">327,300</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">173,600</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total current assets</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,254,900</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,647,800</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Investment in subsidiary</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,225,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,225,000</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Property and equipment</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">9,660,700</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">9,904,500</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Intercompany receivable</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">258,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">421,900</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Other assets</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">267,800</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">310,400</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total assets</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14,666,400</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">15,509,600</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Liabilities</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Line of credit</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">814,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,192,900</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Accounts payable</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,515,500</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,620,000</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Accrued liabilities</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,161,200</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,031,300</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Note payable related party</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,571,800</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,038,700</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Subordinated convertible notes payable</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,634,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Current maturities of debt, leases and severance</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">4,107,500</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,918,900</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total current liabilities</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">13,804,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">9,801,800</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Long-term capital leases</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">9,400</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,100</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Subordinated convertible notes payable</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,588,900</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Severance payable</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">304,100</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">760,100</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total liabilities</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14,117,500</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14,162,900</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Stockholders&#146; equity</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Common stock</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">15,100,300</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">15,100,300</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Preferred stock</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">227,600</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">227,600</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Accumulated deficit</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(14,779,000</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(13,981,200</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total stockholders&#146; equity</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">548,900</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,346,700</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total liabilities and stockholders&#146; equity</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14,666,400</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">15,509,600</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="margin: 0pt"></p> <p style="margin: 0pt"></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Statements of Operations</b></font></td> <td style="line-height: 115%">&#160;</td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Three months ended June 30,</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Six months ended June 30,</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2014</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2014</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(unaudited)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(unaudited)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(unaudited)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(unaudited)</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 44%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net sales</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,166,500</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,244,600</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">5,540,200</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">5,979,500</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Cost of goods sold</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(2,471,300</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(2,699,900</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(4,593,900</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(5,058,300</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Sales, marketing, and retail expenses</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(322,300</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(341,100</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(675,700</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(706,400</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">General and administrative expenses</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(380,600</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(424,800</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(860,700</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(928,200</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from operations</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(7,700</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(221,200</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(590,100</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(713,400</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Other income</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">40,500</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">8,800</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">43,600</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">10,700</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Interest expense</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(124,500</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(130,900</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(247,500</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(256,600</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Provision for taxes</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(3,800</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net loss</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(91,700</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(343,300</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(797,800</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(959,300</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> </table> <p style="margin: 0pt"></p> <p style="margin: 0pt"></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;Statements of Cash Flows </b></font></td> <td style="line-height: 115%">&#160;</td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;Six months ended June 30, </b></font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>2015</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>2014</b></font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(unaudited)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(unaudited)</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 64%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Cash flows from operating activities</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 15%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">113,900</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 15%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(837,900</font></td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Purchase of property and equipment</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(70,400</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(57,700</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net borrowing (repayment) on line of credit</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(378,900</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(20,500</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Borrowing on note payable</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">500,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,000,000</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Repayment on long term debt</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(267,400</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(267,400</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Payment on obligation under capital lease</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(2,700</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(2,600</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net change in payable to UBIUK</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">163,900</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">128,700</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Decrease in cash</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">58,400</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(57,400</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Cash, beginning of period</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">61,500</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">113,700</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Cash, end of period</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">119,900</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">56,300</font></td> <td>&#160;</td></tr> </table> <p style="margin: 0pt"></p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>15. <u>Income Taxes</u></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In the six months ended June 30, 2015 and 2014, the Company recorded tax expenses related to state franchise taxes only, and did not record income tax expenses due to the availability of deferred tax assets to offset any taxable income in the US (at the federal and state level to the extent applicable) and the UK. The Company has established a full valuation allowance against the Company&#146;s deferred tax assets based on an assessment that the criteria that deferred tax assets will more likely than not be realized has not yet been met. During the six months ended June 30, 2015 and 2014, the Company&#146;s effective tax rates were <i>de minimis</i>.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company&#146;s major tax jurisdictions are (i) US (federal), (ii) California (state), (iii) New York (state) and (iv) UK. Tax returns remain open to examination by the applicable governmental authorities for tax years 2011 through 2014. The federal and state taxing authorities may choose to audit tax returns for prior years due to significant tax attribute carryforwards for those prior years. However, such audits will be limited to adjustments to such carryforward tax attributes. The Company is not currently being audited in any tax jurisdiction.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>13. <u>Segment Information</u></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company&#146;s business presently consists of two segments &#150; the North American Territory and the Foreign Territory. The Company&#146;s operations in the North American Territory consist primarily of brewing and marketing proprietary craft beers. For distribution in the North American Territory, the Company brews its brands in its own facilities, which are located in Ukiah, California and Saratoga Springs, New York. The Company&#146;s operations in the Foreign Territory, which are conducted through its wholly-owned subsidiary UBIUK and UBIUK&#146;s wholly-owned subsidiary KBEL, consist primarily of the marketing and distribution of Kingfisher Premium Lager in the Foreign Territory.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">A summary of each segment is as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td colspan="13" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Six months ended June 30, 2015</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">North</font><br /> <font style="font: 10pt Times New Roman, Times, Serif">American</font><br /> <font style="font: 10pt Times New Roman, Times, Serif">Territory</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Foreign&#160;</font><br /> <font style="font: 10pt Times New Roman, Times, Serif">&#160;Territory</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 49%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net Sales</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 14%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">5,540,200</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 14%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">9,292,500</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 14%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14,832,700</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Operating Income (Loss)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(586,800</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">96,500</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(490,300</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Identifiable Assets</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">13,183,400</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">4,106,600</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">17,290,000</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Depreciation &#38; Amortization</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">336,700</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">244,700</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">581,400</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Capital Expenditures</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">70,400</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">269,300</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">339,700</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td colspan="13" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Six months ended June 30, 2014</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">North</font><br /> <font style="font: 10pt Times New Roman, Times, Serif">American</font><br /> <font style="font: 10pt Times New Roman, Times, Serif">Territory</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Foreign&#160;</font><br /> <font style="font: 10pt Times New Roman, Times, Serif">Territory</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 49%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net Sales</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 14%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">5,979,500</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 14%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">10,783,200</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 14%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">16,762,700</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Operating Income (loss)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(710,300</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">428,800</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(281,500</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Identifiable Assets</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14,749,600</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">4,539,500</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">19,289,100</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Depreciation &#38; Amortization</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">339,200</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">213,400</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">552,600</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Capital Expenditures</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">57,700</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">187,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">244,700</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"></p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>14. <u>Unrestricted Net Assets</u></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company&#146;s wholly-owned subsidiary, UBIUK, had undistributed losses of $700,300 as of June 30, 2015. Under KBEL&#146;s line of credit agreement with RBS, distributions and other payments to MBC from KBEL are not permitted if retained earnings drop below $1,572,700. Condensed financial information of MBC, together with its other subsidiary, Releta, is as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>Balance Sheets</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Balance Sheets</font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">June 30, 2015 (unaudited)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">December 31, 2014</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Assets</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 58%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Cash and cash equivalents</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 18%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">119,900</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 18%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">61,500</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Accounts receivable, net</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,198,400</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,365,000</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Inventories</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,609,300</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,047,700</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Other current assets</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">327,300</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">173,600</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total current assets</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,254,900</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,647,800</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Investment in subsidiary</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,225,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,225,000</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Property and equipment</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">9,660,700</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">9,904,500</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Intercompany receivable</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">258,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">421,900</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Other assets</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">267,800</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">310,400</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total assets</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14,666,400</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">15,509,600</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Liabilities</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Line of credit</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">814,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,192,900</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Accounts payable</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,515,500</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,620,000</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Accrued liabilities</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,161,200</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,031,300</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Note payable related party</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,571,800</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,038,700</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Subordinated convertible notes payable</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,634,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Current maturities of debt, leases and severance</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">4,107,500</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,918,900</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total current liabilities</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">13,804,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">9,801,800</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Long-term capital leases</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">9,400</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,100</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Subordinated convertible notes payable</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,588,900</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Severance payable</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">304,100</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">760,100</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total liabilities</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14,117,500</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14,162,900</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Stockholders&#146; equity</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Common stock</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">15,100,300</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">15,100,300</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Preferred stock</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">227,600</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">227,600</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Accumulated deficit</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(14,779,000</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(13,981,200</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total stockholders&#146; equity</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">548,900</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,346,700</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total liabilities and stockholders&#146; equity</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14,666,400</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">15,509,600</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;&#160;&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Statements of Operations</b></font></td> <td style="line-height: 115%">&#160;</td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Three months ended June 30,</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Six months ended June 30,</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2014</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2015</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2014</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(unaudited)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(unaudited)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(unaudited)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(unaudited)</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 44%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net sales</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,166,500</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,244,600</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">5,540,200</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">5,979,500</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Cost of goods sold</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(2,471,300</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(2,699,900</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(4,593,900</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(5,058,300</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Sales, marketing, and retail expenses</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(322,300</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(341,100</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(675,700</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(706,400</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">General and administrative expenses</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(380,600</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(424,800</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(860,700</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(928,200</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Loss from operations</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(7,700</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(221,200</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(590,100</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(713,400</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Other income</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">40,500</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">8,800</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">43,600</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">10,700</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Interest expense</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(124,500</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(130,900</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(247,500</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(256,600</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Provision for taxes</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(3,800</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net loss</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(91,700</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(343,300</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(797,800</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(959,300</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;Statements of Cash Flows </b></font></td> <td style="line-height: 115%">&#160;</td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;Six months ended June 30, </b></font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>2015</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>2014</b></font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(unaudited)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(unaudited)</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 64%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Cash flows from operating activities</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 15%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">113,900</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 15%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(837,900</font></td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Purchase of property and equipment</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(70,400</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(57,700</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net borrowing (repayment) on line of credit</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(378,900</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(20,500</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Borrowing on note payable</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">500,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,000,000</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Repayment on long term debt</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(267,400</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(267,400</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Payment on obligation under capital lease</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(2,700</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(2,600</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net change in payable to UBIUK</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">163,900</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">128,700</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Decrease in cash</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">58,400</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(57,400</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Cash, beginning of period</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">61,500</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">113,700</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Cash, end of period</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">119,900</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">56,300</font></td> <td>&#160;</td></tr> </table> <p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&#160;</p> 2294200 1365000 1198400 1198400 4119000 10000000 11820200 2016-06-23 2117900 1683000 1609300 2016-06-30 2016-06-30 2016-06-30 2016-06-30 2016-10-09 2016-10-09 2016-06-30 <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">A summary of each segment is as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td colspan="13" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Six months ended June 30, 2015</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">North</font><br /> <font style="font: 10pt Times New Roman, Times, Serif">American</font><br /> <font style="font: 10pt Times New Roman, Times, Serif">Territory</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Foreign&#160;</font><br /> <font style="font: 10pt Times New Roman, Times, Serif">&#160;Territory</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 49%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net Sales</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 14%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">5,540,200</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 14%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">9,292,500</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 14%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14,832,700</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Operating Income (Loss)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(586,800</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">96,500</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(490,300</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Identifiable Assets</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">13,183,400</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">4,106,600</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">17,290,000</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Depreciation &#38; Amortization</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">336,700</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">244,700</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">581,400</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Capital Expenditures</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">70,400</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">269,300</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">339,700</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td colspan="13" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Six months ended June 30, 2014</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">North</font><br /> <font style="font: 10pt Times New Roman, Times, Serif">American</font><br /> <font style="font: 10pt Times New Roman, Times, Serif">Territory</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Foreign&#160;</font><br /> <font style="font: 10pt Times New Roman, Times, Serif">Territory</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="text-align: center; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 49%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net Sales</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 14%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">5,979,500</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 14%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">10,783,200</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 14%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">16,762,700</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Operating Income (loss)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(710,300</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">428,800</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(281,500</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Identifiable Assets</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14,749,600</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">4,539,500</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">19,289,100</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Depreciation &#38; Amortization</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">339,200</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">213,400</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">552,600</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Capital Expenditures</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">57,700</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">187,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">244,700</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="margin: 0pt"></p> <p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>1. <u>Description of Operations and Summary of Significant Accounting Policies</u></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Description of Operations</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Mendocino Brewing Company, Inc. (the &#147;Company&#148; or &#147;MBC&#148;) was formed in 1983 in California, and has two operating subsidiaries: Releta Brewing Company, LLC (&#147;Releta&#148;), and United Breweries International (UK) Limited (&#147;UBIUK&#148;). In the United States (the &#147;US&#148;), MBC and Releta operate two breweries that produce beer and malt beverages for the specialty &#147;craft&#148; segment of the beer market. The breweries are located in Ukiah, California and Saratoga Springs, New York. The majority of sales for MBC in the US are in California. The Company brews several brands, of which Red Tail Ale is the flagship brand. In addition, the Company performs contract brewing for several other brands. Generally, product shipments are made directly from the breweries to the wholesalers or distributors in accordance with state and local laws.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">MBC&#146;s United Kingdom (the &#147;UK&#148;) subsidiary, UBIUK, is a holding company for Kingfisher Beer Europe Limited (&#147;KBEL&#148;). KBEL is a distributor of alcoholic beverages, mainly Kingfisher Lager Beer, in the UK and Europe. The offices of KBEL are located in Maidstone, Kent in the UK. In addition, during the period covered by this quarterly report (the &#147;Quarterly Report&#148;), through UBIUK, the Company had production and distribution rights to Kingfisher Premium Lager in Canada and the United States. The Company has the right to use the Kingfisher mark and the name &#147;Kingfisher Brewing Company&#148; in connection with the brewing and distribution of assorted beers in the United States pursuant to an agreement with Kingfisher America, Inc. Generally, sales are made through distributors.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">All of the Company&#146;s beers sold in Europe (except for beers sold in Germany) are procured under a contract with Heineken UK Limited (&#147;HUK&#148;). This contract expires in October 2018. KBEL is the distributor of Kingfisher Premium Lager to specialty restaurant trade distributors, liquor and convenience stores in the United Kingdom, Ireland, and continental Europe, but does not physically distribute the Company&#146;s products to customers. KBEL relies on HUK for distribution of the product in Europe in exchange for a fee paid to HUK, except for in Germany where beers are manufactured and distributed pursuant to a separate contract with a different entity. In addition, HUK has the exclusive right to sell Kingfisher Premium Lager, for a royalty fee payable to KBEL, to certain large retail customers, including, but not limited to, Sainsbury&#146;s, Asda, and Tesco.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Subsequent Events</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company evaluates events that occur subsequent to the balance sheet date of periodic reports, but before financial statements are issued for periods ending on such balance sheet dates, for possible adjustment to such financial statements or other disclosure. This evaluation generally occurs through the date on which the Company&#146;s financial statements are electronically prepared for filing with the Securities and Exchange Commission (&#147;SEC&#148;).</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Principles of Consolidation</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The consolidated financial statements present the accounts of MBC and its wholly-owned subsidiaries, Releta and UBIUK. All material intracompany and inter-company balances, profits and transactions have been eliminated.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Basis of Presentation and Organization</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The accompanying unaudited condensed consolidated financial statements for the six months ended June 30, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the US. These condensed financial statements should be read in conjunction with the audited consolidated financial statements included in the Company&#146;s most recent Annual Report on Form 10-K, as filed with the SEC, which contains additional financial and operating information and information concerning significant accounting policies followed by the Company. The financial statements and notes are representations of the Company&#146;s management (&#147;Management&#148;) and its board of directors (the &#147;Board of Directors&#148;), who are responsible for their integrity and objectivity.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Operating results from the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or any future period.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Reclassifications</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Certain items in the financial statements for the prior year have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income or equity.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">There have been no significant changes in the Company&#146;s significant accounting policies during the six months ended June 30, 2015 compared to what was previously disclosed in the Company&#146;s Annual Report on Form 10-K for the year ended December 31, 2014.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Cash and Cash Equivalents, Short and Long-Term Investments </u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">For purposes of cash flows, the Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Revenue Recognition</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company recognizes revenue from the brewing and distribution operations in accordance with Accounting Standards Codification 605 of the Financial Accounting Standards Board. The Company recognizes revenue from product sales, net of discounts.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company recognizes revenue only when all of the following criteria have been met:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 48px">&#160;</td> <td style="width: 24px; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">&#9679;</font></td> <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Persuasive evidence of an arrangement exists;</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 48px">&#160;</td> <td style="width: 24px; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">&#9679;</font></td> <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Delivery has occurred or services have been rendered;</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 48px">&#160;</td> <td style="width: 24px; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">&#9679;</font></td> <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The fee for the arrangement is fixed or determinable; and</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 48px">&#160;</td> <td style="width: 24px; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">&#9679;</font></td> <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Collectability is reasonably assured.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#147;Persuasive Evidence of an Arrangement&#148; &#150; The Company documents all terms of an arrangement in a written contract or purchase order signed by the customer prior to recognizing revenue.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#147;Delivery Has Occurred or Services Have Been Performed&#148; &#150; The Company delivers the products prior to recognizing revenue or performs services as per contractual terms. Product is considered delivered upon delivery to a customer&#146;s designated location and services are considered performed upon completion of the Company&#146;s contractual obligations.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#147;The Fee for the Arrangement is Fixed or Determinable&#148; &#150; Prior to recognizing revenue, an amount is either fixed or determinable under the terms of the written contract. The price is negotiated at the outset of the arrangement and is not subject to refund or adjustment during the initial term of the arrangement.&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#147;Collectability is Reasonably Assured&#148; &#150; The Company determines that collectability is reasonably assured prior to recognizing revenue. Collectability is assessed on a customer-by-customer basis based on criteria outlined by Management. The Company does not enter into arrangements unless collectability is reasonably assured at the outset. Existing customers are subject to ongoing credit evaluations based on payment history and other factors. If it is determined during the arrangement that collectability is not reasonably assured, revenue is recognized on a cash basis.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company records certain consideration paid to customers for services or placement fees as a reduction in revenue rather than as an expense. The Company reports these items on the income statement as a reduction in revenue and as a corresponding reduction in marketing and selling expenses.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Revenues from the Company&#146;s brewpub and gift store are recognized when sales have been completed.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Allowance for Doubtful Accounts</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Management considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic and industry trends and changes in customer payment terms. Balances over 90 days past due and other higher risk amounts are reviewed individually for collectability. If the financial condition of the Company&#146;s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. Based on Management&#146;s assessment, the Company provides for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances that remain outstanding after the Company has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Inventories</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Inventories are stated at the lower of average cost, which approximates the first-in, first-out method, or market (net realizable value). The Company regularly reviews its inventories for the presence of obsolete product attributed to age, seasonality and quality. Inventories that are considered obsolete are written off or adjusted to carrying value.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Deferred Financing Costs</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Costs relating to obtaining financing are capitalized and amortized over the term of the related debt. When a loan is paid in full, any unamortized financing costs are removed from the related accounts and charged to operations. Deferred financing costs related to a borrowing made in June 2011 were $225,000. Amortization of deferred financing costs charged to operations was $22,500 for the six months ended June 30, 2015 and 2014.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Concentration of Credit Risks</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, and accounts receivable. Substantially all of the Company&#146;s cash and cash equivalents are deposited with commercial banks in the US and the UK that have minimal credit risk. Accounts receivable are generally unsecured and customers are subject to an initial credit review and ongoing monitoring. Wholesale distributors account for substantially all accounts receivable; therefore, this risk concentration is limited due to the number of distributors and the laws regulating the financial affairs of distributors of alcoholic beverages. The Company has approximately $1,600 in cash deposits and $2,294,200 of accounts receivable due from customers located in the UK as of June 30, 2015.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Income Taxes</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company accounts for income taxes in accordance with ASC 750 which requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards. The Company periodically assesses uncertain tax positions that the Company has taken or expects to take on a tax return, including a decision whether to file or not to file a return in a particular jurisdiction. The Company evaluated its tax positions and determined that there were no uncertain tax benefits as of June 30, 2015 and December 31, 2014.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Basic and Diluted Earnings (Loss) per Share</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The basic earnings (loss) per share is computed by dividing the earnings (loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period. Basic net earnings (loss) per share exclude the dilutive effect of stock options or warrants and convertible notes. If the Company&#146;s operations result in net loss for any period, diluted net loss per share would be the same as basic net loss per share, since the effect of any potentially dilutive securities would be anti-dilutive. Therefore, the conversion of the related party convertible notes (see &#147;Subordinated Convertible Notes Payable&#148; below) has been excluded from the Company&#146;s calculation of net loss per share. The computations of basic and dilutive net loss per share are as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Three months ended</font></td> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Six months ended</font></td> <td style="text-align: center; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">6/30/2015</font></td> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">6/30/2014</font></td> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">6/30/2015</font></td> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">6/30/2014</font></td> <td style="text-align: center; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 44%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net loss</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(85,700</font></td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(137,000</font></td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(759,600</font></td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(605,600</font></td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Weighted average common shares outstanding</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Basic net loss per share</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.01</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.01</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.06</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.05</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Interest expense on convertible notes</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Loss for computing diluted net income per share</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(85,700</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(137,000</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(759,600</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(605,600</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Incremental shares from assumed exercise of dilutive securities</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Dilutive potential common shares</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Diluted net loss per share</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.01</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.01</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.06</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.05</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Foreign Currency Translation</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company has subsidiaries located in the UK, where the local currency, the UK Pound Sterling, is the functional currency. Financial statements of these subsidiaries are translated into US dollars using period-end exchange rates for assets and liabilities and average exchange rates during the period for revenues and expenses. Cumulative translation adjustments associated with net assets or liabilities are reported in non-owner changes in equity. Any exchange rate gains or losses related to foreign currency transactions are recognized in the income statement as incurred, in the same financial statement caption as the underlying transaction, and are not material for any year shown. Cash flows were translated at the average exchange rates for the six months then ended. Changes in cash resulting from the translations are presented as a separate item in the statements of cash flows.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Use of Estimates</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The preparation of financial statements in conformity with accounting principles generally accepted in the US includes having the Company make estimates and assumptions affecting the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. The amounts estimated could differ from actual results. Significant estimates include the allowance for bad debts, depreciation and amortization periods, and the future utilization of deferred tax assets.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Comprehensive Income (Loss)</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Comprehensive income (loss) is composed of the Company&#146;s net loss and changes in equity from non-stockholder sources. The accumulated balances of these non-stockholder sources are reflected as a separate item in the equity section of the balance sheet.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Reportable Segments</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company manages its operations through two business segments: (i) brewing operations and tasting room operations in the US and distributor operations in Canada (the &#147;North American Territory&#148;) and (ii) distributor operations in Europe, including the UK (the &#147;Foreign Territory&#148;). The Company evaluates performance based on net operating profit. Where applicable, portions of the administrative function expenses are allocated between the operating segments. The operating segments do not share manufacturing or distribution facilities. In the event any materials and/or services are provided to one operating segment by the other, the transaction is valued according to the Company&#146;s transfer policy, which approximates market price. The costs of operating the manufacturing plants are captured discretely within each segment. The Company&#146;s property, plant and equipment, inventory, and accounts receivable are captured and reported discretely within each operating segment.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Description of Operations</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Mendocino Brewing Company, Inc. (the &#147;Company&#148; or &#147;MBC&#148;) was formed in 1983 in California, and has two operating subsidiaries: Releta Brewing Company, LLC (&#147;Releta&#148;), and United Breweries International (UK) Limited (&#147;UBIUK&#148;). In the United States (the &#147;US&#148;), MBC and Releta operate two breweries that produce beer and malt beverages for the specialty &#147;craft&#148; segment of the beer market. The breweries are located in Ukiah, California and Saratoga Springs, New York. The majority of sales for MBC in the US are in California. The Company brews several brands, of which Red Tail Ale is the flagship brand. In addition, the Company performs contract brewing for several other brands. Generally, product shipments are made directly from the breweries to the wholesalers or distributors in accordance with state and local laws.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">MBC&#146;s United Kingdom (the &#147;UK&#148;) subsidiary, UBIUK, is a holding company for Kingfisher Beer Europe Limited (&#147;KBEL&#148;). KBEL is a distributor of alcoholic beverages, mainly Kingfisher Lager Beer, in the UK and Europe. The offices of KBEL are located in Maidstone, Kent in the UK. In addition, during the period covered by this quarterly report (the &#147;Quarterly Report&#148;), through UBIUK, the Company had production and distribution rights to Kingfisher Premium Lager in Canada and the United States. The Company has the right to use the Kingfisher mark and the name &#147;Kingfisher Brewing Company&#148; in connection with the brewing and distribution of assorted beers in the United States pursuant to an agreement with Kingfisher America, Inc. Generally, sales are made through distributors.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">All of the Company&#146;s beers sold in Europe (except for beers sold in Germany) are procured under a contract with Heineken UK Limited (&#147;HUK&#148;). This contract expires in October 2018. KBEL is the distributor of Kingfisher Premium Lager to specialty restaurant trade distributors, liquor and convenience stores in the United Kingdom, Ireland, and continental Europe, but does not physically distribute the Company&#146;s products to customers. KBEL relies on HUK for distribution of the product in Europe in exchange for a fee paid to HUK, except for in Germany where beers are manufactured and distributed pursuant to a separate contract with a different entity. In addition, HUK has the exclusive right to sell Kingfisher Premium Lager, for a royalty fee payable to KBEL, to certain large retail customers, including, but not limited to, Sainsbury&#146;s, Asda, and Tesco.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Subsequent Events</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company evaluates events that occur subsequent to the balance sheet date of periodic reports, but before financial statements are issued for periods ending on such balance sheet dates, for possible adjustment to such financial statements or other disclosure. This evaluation generally occurs through the date on which the Company&#146;s financial statements are electronically prepared for filing with the Securities and Exchange Commission (&#147;SEC&#148;).</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Principles of Consolidation</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The consolidated financial statements present the accounts of MBC and its wholly-owned subsidiaries, Releta and UBIUK. All material intracompany and inter-company balances, profits and transactions have been eliminated.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Basis of Presentation and Organization</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The accompanying unaudited condensed consolidated financial statements for the six months ended June 30, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the US. These condensed financial statements should be read in conjunction with the audited consolidated financial statements included in the Company&#146;s most recent Annual Report on Form 10-K, as filed with the SEC, which contains additional financial and operating information and information concerning significant accounting policies followed by the Company. The financial statements and notes are representations of the Company&#146;s management (&#147;Management&#148;) and its board of directors (the &#147;Board of Directors&#148;), who are responsible for their integrity and objectivity.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Operating results from the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or any future period.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Reclassifications</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Certain items in the financial statements for the prior year have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income or equity.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Cash and Cash Equivalents, Short and Long-Term Investments </u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">For purposes of cash flows, the Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The computations of basic and dilutive net loss per share are as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Three months ended</font></td> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Six months ended</font></td> <td style="text-align: center; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">6/30/2015</font></td> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">6/30/2014</font></td> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">6/30/2015</font></td> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">6/30/2014</font></td> <td style="text-align: center; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 44%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net loss</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(85,700</font></td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(137,000</font></td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(759,600</font></td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(605,600</font></td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Weighted average common shares outstanding</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Basic net loss per share</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.01</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.01</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.06</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.05</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Interest expense on convertible notes</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Loss for computing diluted net income per share</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(85,700</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(137,000</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(759,600</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(605,600</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Incremental shares from assumed exercise of dilutive securities</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Dilutive potential common shares</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Diluted net loss per share</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.01</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.01</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.06</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.05</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> </table> <p style="margin: 0pt"></p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>2. <u>Liquidity and Management Plans</u></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On June 23, 2011, MBC and Releta entered into a Credit and Security Agreement (as amended, the &#147;Credit and Security Agreement&#148;) with Cole Taylor Bank, an Illinois banking corporation (&#147;Cole Taylor&#148;). Cole Taylor merged into MB Financial Bank, an Illinois banking corporation (&#147;MB Financial&#148;) on August 18, 2014. As used in this Quarterly Report, &#147;Lender&#148; shall refer to Cole Taylor prior to August 18, 2014 and to MB Financial, as successor in interest to Cole Taylor, on or after August 18, 2014. The Credit and Security Agreement provided a credit facility with a maturity date of June 23, 2016 of up to $10,000,000 consisting of a $4,119,000 revolving facility, a $1,934,000 machinery and equipment term loan, a $2,947,000 real estate term loan and a $1,000,000 capital expenditure line of credit. Convertible promissory notes issued to United Breweries of America, Inc. (&#147;UBA&#148;), one of the Company&#146;s principal shareholders, are subordinated to Lender&#146;s facility.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Credit and Security Agreement requires MBC and Releta to maintain certain minimum fixed charge coverage ratios for trailing twelve month periods and minimum tangible net worth. The minimum tangible net worth MBC and Releta are required to maintain is subject to increase based on the net income of MBC and Releta. On March 29, 2013, MBC, Releta, and Lender entered into a First Amendment to the Credit and Security Agreement to clarify the method by which the fixed charge coverage ratio is calculated, with retrospective application.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The required fixed charge coverage ratio for the trailing twelve month periods ended March 31, 2013 onwards fell short of the required ratio. The tangible net worth fell short of the required amount for the period beginning June 1, 2013 onwards.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On September 18, 2013, MBC and Releta received a notice (the &#147;Default Notice&#148;) from Lender regarding its intention to exercise certain rights with respect to events of default of the Company pursuant to the Credit and Security Agreement.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Credit and Security Agreement provides that the failure of MBC and Releta to observe any covenant will constitute an event of default under the Credit and Security Agreement. Under the Credit and Security Agreement, upon the occurrence of an event of default, all of MBC&#146;s and Releta&#146;s obligations under the Credit and Security Agreement may, at the option of the Lender, be declared, and immediately shall become, due and payable, without notice of any kind. The event of default shall be deemed continuing until waived in writing by the Lender. The Default Notice states that Lender has elected, effective September 1, 2013, to charge a default interest rate equal to two percent (2%) per annum in excess of the interest rate otherwise payable under the Credit and Security Agreement. The Company estimates that the increased rate currently results in approximately $120,000 additional annual interest expense.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On April 18, 2014, MBC and Releta received a second notice (the &#147;Second Default Notice&#148;) from Lender regarding its intention to exercise certain rights with respect to events of default of the Company pursuant to the Credit and Security Agreement.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Second Default Notice required MBC and Releta to engage a consultant to perform a viability analysis and prepare a revised projection for 2014.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Effective August 20, 2014, pursuant to a notice to MBC and Releta dated August 18, 2014 (the &#147;Third Default Notice&#148;) which referred to MBC&#146;s and Releta&#146;s continued failure to meet the required fixed charge coverage ratio and the tangible net worth requirement, Lender notified MBC and Releta that it would reduce the advance rate for (i) eligible finished goods and raw material inventory and (ii) eligible work-in progress inventory by 2% each month. The advance rates are used in the calculation of the borrowing base of each of MBC and Releta, which is used in the determination of the amount available to each of MBC and Releta pursuant to the revolving facility. Under the terms of the Credit and Security Agreement, if such availability is less than $0, or if certain components of the borrowing base of each of MBC and Releta fall below certain limits in relation to outstanding revolving loans, such difference shall be immediately due and payable.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On January 21, 2015, MBC, Releta, and Lender entered into a Second Amendment (the &#147;Second Amendment&#148;) to the Credit and Security Agreement.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Second Amendment reduced the maximum amount of the Revolver from $4,119,000 to $2,500,000. The Second Amendment also changed the definition of borrowing base (including by lowering certain advance rates) such that the calculation of the borrowing base will result in a lower number than it would have if calculated prior to the effectiveness of the Second Amendment. The borrowing base is used in the determination of the amount available to each borrower (a &#147;Borrower&#148;) pursuant to the Revolver. Pursuant to the Credit and Security Agreement, if such availability is less than $0, or if certain components of the borrowing base fall below certain limits in relation to outstanding revolving loans, such difference shall be immediately due and payable.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Second Amendment reduced the advance rate for (i) eligible finished goods and raw material inventory and (ii) eligible work-in progress inventory by two percent (2%) and continues to reduce each by an additional two percent (2%) on the 20th day of each month thereafter. The advance rates are used in the calculation of the borrowing base of each Borrower, which is used in the determination of the amount available to each Borrower pursuant to the Revolver. As stated above, if such availability is less than $0, or if certain components of the borrowing base fall below certain limits in relation to outstanding revolving loans, such difference shall be immediately due and payable.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Lender has not waived the events of default described in the Default Notice, the Second Default Notice or the Third Default Notice and has reserved the right to all other available rights and remedies under the Credit and Security Agreement, certain other related documents and applicable law. Lender could declare the full amount owed under the Credit and Security Agreement due and payable at any time for any reason or no reason. Since receiving the Second Amendment, the Company has not received any notice or other communication from Lender that it intends to exercise any other remedies available to it under the Credit and Security Agreement in connection with the events of default. Lender continues to charge a default interest rate equal to two percent (2%) per annum in excess of the interest rate otherwise payable under the Credit and Security Agreement. The exercise of additional remedies by Lender may have a material adverse effect on the Company&#146;s financial condition and the Company&#146;s ability to continue to operate. If it becomes necessary for MBC and Releta to seek additional financing, there is no guarantee that MBC and Releta will be able to obtain such financing on terms favorable to the Company or on any terms.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to a letter from UBHL dated November 11, 2013, UBHL indicated a willingness to invest up to $2,000,000 in the Company. On January 22, 2014, Catamaran Services, Inc., (&#147;Catamaran&#148;), a related party (see &#147;Notes Payable to Related Party&#148;, below), provided a note loan of $500,000 repayable upon receipt of an equity investment by the Company&#146;s majority shareholder. On April 24, 2014, another note loan of $500,000 was received from Catamaran on terms similar to the previous note. On February 5, 2015, another note loan of $500,000 was received from Catamaran on terms similar to the previous notes. On June 30, 2015, another note was issued to Catamaran for $500,000 on terms similar to the previous notes (the proceeds of such note were received by the Company on July 6, 2015). On each date on or prior to which Catamaran provided a note loan, the Company received a letter from Lender permitting the Company to obtain loans subject to certain conditions, including that no portion of such loans would be payable until either (a) certain obligations of the Company to Lender pursuant to the Agreement were satisfied in full, or (b) such payment was made from an equity investment by the Company&#146;s majority shareholder.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In response to the losses incurred in connection with the Company&#146;s operations, UBHL, the Company&#146;s indirect majority shareholder, issued a letter of comfort on March 5, 2015 (the &#147;Letter of Comfort&#148;), to confirm that UBHL had agreed to provide funding on an as needed basis to ensure that the Company is able to meet its financial obligations as and when they fall due. The Letter of Comfort does not specify either the terms of UBHL&#146;s support, or a maximum dollar limit and is not a legally binding agreement. However, to date UBHL through its affiliated company, Catamaran, has provided capital for working capital needs. UBHL&#146;s financial support is contingent upon compliance with any applicable exchange control requirements, other applicable laws, and regulations relating to the transfer of funds from India. The Letter of Comfort does not specify any time limit for extending support. If it becomes necessary to seek UBHL&#146;s financial assistance under the Letter of Comfort and UBHL is either unable or unwilling to provide such financial assistance to MBC, it may result in a material adverse effect on the Company&#146;s financial position and on its ability to continue operations. UBHL controls the Company&#146;s two largest shareholders, United Breweries of America, Inc. (&#147;UBA&#148;) and Inversiones, and as such, is the Company&#146;s indirect majority shareholder. The Company&#146;s Chairman of the Board, Dr. Vijay Mallya, is also the Chairman of the board of directors of UBHL.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As of June 30, 2015, the fixed charge coverage ratio was required to be 1.10 to 1. The Company calculated that the fixed charge coverage ratio as of June 30, 2015 was -1.12 to 1. The Company calculated that the required tangible net worth of MBC and Releta was $6,181,400 as of June 30, 2015 and the actual tangible net worth on such date was $3,676,600. The Company does not anticipate that it will regain compliance with the required fixed charge coverage ratio or the minimum tangible net worth in the immediate future.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">At June 30, 2015, the Company had cash and cash equivalents of $121,500, an accumulated deficit of $17,006,700, and a working capital deficit of $11,820,200 due to losses incurred, reclassification of debts owing to MB Financial as a result of the default under the Credit and Security Agreement described above and reclassification of subordinated notes payable to UBA as a result of a subordination agreement, which subordinated notes are maturing in June 2016. In addition, the book value of the Company&#146;s assets was lower than the book value of its liabilities at June 30, 2015.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If the Company is unable to find any source of funds, it may result in a material adverse effect on the Company&#146;s ability to continue operations. For example, MB Financial may seek to satisfy any outstanding obligations through recourse against the applicable pledged collateral which may include the Company&#146;s real property, fixed assets and current assets. The loss of any material pledged asset would likely have a material adverse effect on the Company&#146;s financial position and results of operations.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;Management has taken several actions to reduce the Company&#146;s working capital needs through June 30, 2016, including reducing discretionary expenditures, reducing manpower, securing additional brewing contracts in an effort to utilize a portion of excess production capacity, and pursuing export opportunities. The current revenue from operations are insufficient to meet the working capital needs of the Company over the next 12 months. The Company has requested UBHL to make a capital infusion. If UBHL is unwilling or unable to infuse additional capital, the Company will seek capital from other sources, including outside investors. If sufficient capital for working capital needs is not obtained, the Company may sell some of its operating assets.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If it becomes necessary to seek UBHL&#146;s financial assistance under the Letter of Comfort and UBHL does not fulfill its commitment to MBC, it may result in a material adverse effect on the Company&#146;s financial position and on its ability to continue operations. In addition, the Company&#146;s lenders may seek to satisfy any outstanding obligations through recourse against the applicable pledged collateral which may include the Company&#146;s real property and fixed and current assets. The loss of any material pledged asset would likely have a material adverse effect on the Company&#146;s financial position and results of operations.</p> <p style="margin: 0pt"></p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>3. <u>Inventories</u></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Inventories are stated at the lower of average cost or market and consist of the following:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">June 30, 2015</font></td> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">December 31, 2014</font></td> <td style="text-align: center; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Raw Materials</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 18%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">602,200</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 18%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">740,300</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Beer-in-process</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">379,600</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">259,400</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Finished Goods</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">632,200</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,034,200</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Merchandise</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">69,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">84,000</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">TOTAL</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,683,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,117,900</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Inventories are stated at the lower of average cost or market and consist of the following:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">June 30, 2015</font></td> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">December 31, 2014</font></td> <td style="text-align: center; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Raw Materials</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 18%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">602,200</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 18%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">740,300</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Beer-in-process</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">379,600</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">259,400</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Finished Goods</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">632,200</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,034,200</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Merchandise</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">69,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">84,000</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">TOTAL</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,683,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,117,900</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="margin: 0pt"></p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>4. <u>Secured Lines of Credit </u></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In June 2011, Cole Taylor provided a line of credit, from which may be drawn up to 85% of eligible receivables and 60% of eligible inventory for the period expiring in June 2016. The borrowings are collateralized, with recourse, by MBC&#146;s and Releta&#146;s trade receivables and inventory located in the US. This facility currently carries interest (including default interest) at a rate of prime plus 3% and is secured by substantially all of the assets of Releta and MBC. The amount outstanding on this line of credit as of June 30, 2015 was approximately $814,000. Included in the Company&#146;s balance sheet as of June 30, 2015 are account balances totaling $1,198,400 of accounts receivable and $1,609,300 of inventory collateralized to MB Financial, as successor in interest to Cole Taylor, under this facility.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On April 26, 2005, Royal Bank of Scotland Commercial Services Limited (&#147;RBS&#148;) provided an invoice discounting facility to KBEL based on 80% prepayment against qualified accounts receivable related to KBEL&#146;s UK customers. The initial term of the facility was one year, after which time the facility could be terminated by either party upon six months&#146; notice. The facility carries an interest rate of 1.38% above the RBS base rate and a service charge of 0.10% of each invoice discounted. The amount outstanding on this line of credit as of June 30, 2015 was approximately $1,273,500. Included in the Company&#146;s balance sheet at June 30, 2015 are account balances totaling $2,294,200 of accounts receivable collateralized to RBS under this facility.</p> 0.0138 0.04 0.04 0.035 0.035 0.05 0.05 0.05 0.03 P1Y 0.80 0.0010 <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>7. <u>Secured Notes Payable</u></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Maturities of secured notes payable for succeeding years are as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">June 30, 2015</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">December 31, 2014</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Loan from Cole Taylor, payable in monthly installments of $12,300, plus interest (including default interest) at prime plus 4% with a balloon payment of approximately $2,202,500 in June 2016; secured by substantially all assets of Releta and MBC.</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 18%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,349,900</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 18%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,423,600</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Loans from Cole Taylor, payable in monthly installments of $32,300 plus interest (including default interest) at prime plus 3.5% with a balloon payment of approximately $908,700 in June 2016; secured by substantially all assets of Releta and MBC.</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,296,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,489,700</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,645,900</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,913,300</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Less current maturities</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,645,900</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,913,300</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td>&#160;</td></tr> </table> <p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&#160;</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>7. <u>Secured Notes Payable</u></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Maturities of secured notes payable for succeeding years are as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">June 30, 2015</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">December 31, 2014</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Loan from Cole Taylor, payable in monthly installments of $12,300, plus interest (including default interest) at prime plus 4% with a balloon payment of approximately $2,202,500 in June 2016; secured by substantially all assets of Releta and MBC.</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 18%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,349,900</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 18%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,423,600</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Loans from Cole Taylor, payable in monthly installments of $32,300 plus interest (including default interest) at prime plus 3.5% with a balloon payment of approximately $908,700 in June 2016; secured by substantially all assets of Releta and MBC.</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,296,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,489,700</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,645,900</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,913,300</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Less current maturities</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,645,900</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,913,300</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td>&#160;</td></tr> </table> <p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"></p> 3913300 2349900 2423600 1296000 1489700 3645900 12300 12300 32300 32300 137900 137900 2202500 2202500 908700 908700 <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>11. <u>Commitments and Contingencies</u></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><u>Purchase of raw materials</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Production of the Company&#146;s beverages requires quantities of various processed agricultural products, including malt and hops for beer. The Company fulfills its commodities requirements through purchases from various sources, some through contractual arrangements and others on the open market.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Legal </u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company is periodically involved in legal actions and claims that arise as a result of events that occur in the normal course of operations. Management and the Company&#146;s legal counsel assess such contingent liabilities, and such assessment inherently involves the exercise of judgment.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On September 26, 2014, The New Buffalo Brewing Co., Inc. (&#147;NBB&#148;) initiated an action against Releta in the Supreme Court of the State of New York for the County of Erie to recover damages for alleged breaches of a Brewing Production Agreement between NBB and Releta dated September 6, 2013 (the &#147;Brewing Production Agreement&#148;), as well as for a declaration rescinding and nullifying the Brewing Production Agreement, and, in case of Releta&#146;s failure to answer or appear, damages resulting from the alleged breaches, rescission of the Brewing Production Agreement, attorneys&#146; fees and any other relief deemed proper by the court. In a demand letter to Releta dated October 16, 2014, NBB demanded payment of the sum of $500,000. The Company has engaged a law firm in New York to respond.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On June 3, 2015, IAE International Aero Engines AG (&#147;IAE&#148;) served the Company with a complaint (the &#147;Complaint&#148;), filed in Marin County Superior Court, California (the &#147;Court&#148;), which requests, among other things, (i) that the Court recognize and enforce a foreign judgment against an Indian corporate entity (which is an affiliate of the Company), the alleged judgment debtor, and (ii) that such judgment be made enforceable against any assets of the Company (and of the other defendants) that are located in California, on the alleged ground that the Company (along with the other defendants) is an &#147;alter ego&#148; of the alleged judgment debtor. Along with the Complaint, IAE also served the Company with an ex parte application for a right to attach order and a writ of attachment, and, in the alternative, a temporary protective order (collectively, the &#147;ex parte application&#148;) to, among other things, stop the Company from making certain transfers to related parties other than in the ordinary of business.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The ex parte application came up for hearing before the Court on June 5, 2015. At the conclusion of that hearing, the Court: (i) issued a temporary protective order of limited scope, providing that to the extent the Company had possession, custody or control of any stock belonging to the alleged judgment debtor (which the Company does not), it should not transfer said stock out of Marin County, California until 5:00 PM (Pacific Time), June 9, 2015; and (ii) continued the hearing on the ex parte application to 3:00 PM on June 9, 2015. At the conclusion of the continued hearing on June 9, 2015, the Court denied the ex parte application for a writ of attachment and dissolved the limited temporary protective order.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company believes that the allegations in the Complaint are without merit and will continue to vigorously defend against the lawsuit.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As discussed in more detail in the Company&#146;s Current Report on Form 8-K filed on June 9, 2015, the Company has discussed with the Lender the allegations set forth in the Complaint and the ex parte application and, as of the date of this Quarterly Report, the Company has not received any notice or other communication from the Lender that the Lender intends to exercise any of the remedies available to it under the Credit and Security Agreement in connection therewith.&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company is not currently aware of any legal proceedings or claims that the Company believes will have, individually or in the aggregate, a material adverse effect on the Company&#146;s financial position or results of operations.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Operating Leases</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company leases some of its operating and office facilities for various terms under long-term, non-cancelable operating lease agreements. The leases expire at various dates between 2015 and 2020 and provide for renewal options ranging from month-to-month to five years. In the normal course of business, it is expected that these leases will be renewed or replaced by leases on similar properties. The leases provide for increases in future minimum annual rental payments based on defined increases which are generally meant to correlate with the Consumer Price Index, subject to certain minimum increases. Also, the agreements generally require the Company to pay certain costs, including real estate taxes, insurance and repairs.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">MBC and its subsidiaries have various lease agreements for the brewpub and gift store in Ukiah, California, the brewery at Releta&#146;s Saratoga Springs, New York facility, a building in the UK, and certain equipment. The New York lease includes a renewal option for three additional five-year periods, which Releta intends to exercise, and some leases are adjusted annually for changes in the Consumer Price Index.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>12. <u>Related-Party Transactions</u></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company conducts business with United Breweries of America, Inc. (&#147;UBA&#148;), which owns approximately 25% of the Company&#146;s common stock. Until October 2013, KBEL had significant transactions with Shepherd Neame, Ltd., which is a related party with respect to a former Board member. KBEL also had significant transactions with HUK, a related party with respect to one of MBC&#146;s Board members, beginning in October 2013.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following table reflects the value of such transactions during the six months ended June 30, 2015 and 2014 and the balances outstanding as of June 30, 2015 and December 31, 2014.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">TRANSACTIONS</font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>June 30, 2015</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>June 30, 2014</b></font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 64%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Purchases from HUK</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 15%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">5,530,600</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 15%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">6,523,700</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Expense reimbursement including interest to HUK</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">464,600</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">548,100</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Interest expense related to UBA convertible notes</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">45,100</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">45,100</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Interest expenses related to Catamaran notes</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">33,100</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14,800</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Borrowing from Catamaran</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">500,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,000,000</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">ACCOUNT BALANCES</font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>June 30, 2015</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Dec 31, 2014</b></font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 64%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Accounts payable and accrued liability to HUK</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 15%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,369,600</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 15%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,802,300</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Notes payable to Catamaran</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,571,800</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,038,700</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Notes payable to UBA</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,634,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,588,900</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"></p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following table reflects the value of such transactions during the six months ended June 30, 2015 and 2014 and the balances outstanding as of June 30, 2015 and December 31, 2014.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">TRANSACTIONS</font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>June 30, 2015</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>June 30, 2014</b></font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 64%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Purchases from HUK</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 15%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">5,530,600</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 15%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">6,523,700</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Expense reimbursement including interest to HUK</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">464,600</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">548,100</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Interest expense related to UBA convertible notes</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">45,100</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">45,100</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Interest expenses related to Catamaran notes</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">33,100</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14,800</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Borrowing from Catamaran</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">500,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,000,000</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">ACCOUNT BALANCES</font></td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>June 30, 2015</b></font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Dec 31, 2014</b></font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 64%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Accounts payable and accrued liability to HUK</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 15%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,369,600</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 15%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,802,300</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Notes payable to Catamaran</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,571,800</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,038,700</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Notes payable to UBA</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,634,000</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,588,900</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="margin: 0pt"></p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>5. <u>Notes Payable to Related Party</u></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Notes payable to related party consist of notes payable to Catamaran dated January 22, 2014, April 24, 2014 and February 5, 2015, for a total value of $1,571,800 including interest of $71,800. On June 30, 2015 another note was issued for a value of $500,000 but the proceeds were received by the Company on July 6, 2015. The Catamaran Holding, Ltd. (&#147;Holding&#148;), the sole shareholder of Catamaran, has directors in common with Inversiones, one of the major shareholders of MBC. The indirect beneficial owner of Inversiones is UBHL. Dr. Vijay Mallya, the Chairman of the Board of Directors of the Company is also the Chairman of the Board of Directors of UBHL. The Company has asked Catamaran whether any relationships exist between the shareholders of Holdings and any affiliates of the Company, and has not received a response to such inquiries.&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The notes are payable within six months following the date of the notes, subject to the receipt by the Company of an equity investment by the Company&#146;s majority shareholder in an amount sufficient either (a) to pay the notes from an equity investment by the Company&#146;s majority shareholder, or (b) to pay the notes and certain existing obligations of the Company to Lender. If the Company is not able to satisfy its obligations on the notes within the six month period following the date of the notes, the notes are automatically extended for additional six month terms until they are paid.</p> 0.10 1 1 10000000 10000000 227600 227600 227600 227600 30000000 30000000 12611133 12611133 12611133 12611133 339700 70400 57700 187000 269300 244700 581400 336700 339200 213400 244700 552600 12611133 12611133 12611133 12611133 -759600 -605600 -85700 -137000 225000 .02 120000 6181400 14200 126400 12900 113500 84000 69000 1034200 632200 259400 379600 740300 602200 2000000 <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>8. <u>Long-Term Debt &#150; Related Party</u></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">June 30, 2015</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">December 31, 2014</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Loan from Heineken UK Limited, payable in quarterly installments of $137,900, plus interest at UK prime plus 5% maturing on October 9, 2016, secured by licensing rights pursuant to a Sub-License Agreement.</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 18%; border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">786,300</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 18%; border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,038,600</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Less current maturities</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">524,200</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">519,300</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">262,100</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">519,300</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Maturities of debt for succeeding years are as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 73%; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Six months ending December 31, 2015</font></td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 25%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">262,100</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Year ending December 31, 2016</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">524,200</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On April 18, 2013, KBEL entered into a Loan Agreement (the &#147;HUK Loan Agreement&#148;) with HUK pursuant to which HUK provided KBEL with a secured term loan of &#163;1,000,000 on October 9, 2013 to be repaid in twelve quarterly installment of &#163;83,333.33 each, commencing from January 9, 2014 along with interest at the rate of 5% above the Bank of England base rate. Prepayment is permitted. Upon an Event of Default, as defined in the HUK Loan Agreement, if HUK and KBEL fail to agree on a payment plan acceptable to HUK, HUK may, among other remedies, declare the loan immediately due and repayable or exercise its right to an exclusive license pursuant to the Sub-License Agreement as described and defined in the HUK Loan Agreement.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Maturities of debt for succeeding years are as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 73%; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Six months ending December 31, 2015</font></td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 25%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">262,100</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Year ending December 31, 2016</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">524,200</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="margin: 0pt"></p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">June 30, 2015</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">December 31, 2014</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 58%; text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Loan from Heineken UK Limited, payable in quarterly installments of $137,900, plus interest at UK prime plus 5% maturing on October 9, 2016, secured by licensing rights pursuant to a Sub-License Agreement.</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 18%; border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">786,300</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 18%; border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,038,600</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Less current maturities</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">524,200</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">519,300</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">262,100</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">519,300</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="margin: 0pt"></p> 83333 <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>9. <u>Capital Lease Obligations</u></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company leases certain assets under an agreement that is classified as a capital lease. The future minimum lease payments required under the capital lease and the present value of the net minimum lease payments as of June 30, 2015 are as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 80%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Six months Ending December 31, 2015</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 17%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14,200</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Year Ending December 31, 2016</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">28,500</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Year Ending December 31, 2017</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">28,500</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Year Ending December 31, 2018</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">22,100</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Year Ending December 31, 2019</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">22,100</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Year Ending December 31, 2020</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">11,000</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">126,400</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Less amounts representing interest</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(12,900</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Present value of minimum lease payments</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">113,500</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Less current maturities</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(25,300</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Non-current leases payable</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">88,200</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="margin: 0pt"></p> 0.015 28500 28500 <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The future minimum lease payments required under the capital lease and the present value of the net minimum lease payments as of June 30, 2015 are as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 80%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Six months Ending December 31, 2015</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 17%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14,200</font></td> <td style="width: 1%; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Year Ending December 31, 2016</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">28,500</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Year Ending December 31, 2017</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">28,500</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Year Ending December 31, 2018</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">22,100</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Year Ending December 31, 2019</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">22,100</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Year Ending December 31, 2020</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">11,000</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">126,400</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Less amounts representing interest</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(12,900</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Present value of minimum lease payments</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">113,500</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Less current maturities</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 115%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(25,300</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Non-current leases payable</font></td> <td style="line-height: 115%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">88,200</font></td> <td style="line-height: 115%">&#160;</td></tr> </table> <p style="margin: 0pt"></p> 1273500 1192900 814000 814000 17290000 13183400 14749600 4539500 4106600 19289100 14832700 5540200 5979500 10783200 9292500 16762700 1.10 1.10 262100 524200 519300 524200 524200 519300 The UBA notes have been extended until June 2015 but have automatic renewals after such maturity date for successive one year terms, provided that either the Company or UBA may elect not to extend the term upon written notice given to the other party no more than 60 days and no fewer than 30 days prior to the expiration of such term. UBA may demand payment within 60 days of the end of the extension period but is precluded from doing so because the notes are subordinated to long-term debt agreements with MB Financial maturing in June 2016. 700300 1572700 1000000 519300 262100 262100 519300 22500 22500 1.44 1.50 10-Q -0.06 -0.05 -0.01 -0.01 -0.06 -0.05 -0.01 -0.01 786300 1038600 500000 0.02 1673500 1718600 -490300 -281500 28600 38400 12611133 12611133 12611133 12611133 0.85 0.60 3634000 5530600 6523700 464600 548100 78200 60000 1038700 3634000 3588900 1571800 1600 2294200 <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Allowance for Doubtful Accounts</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Management considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic and industry trends and changes in customer payment terms. Balances over 90 days past due and other higher risk amounts are reviewed individually for collectability. If the financial condition of the Company&#146;s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. Based on Management&#146;s assessment, the Company provides for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances that remain outstanding after the Company has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Inventories</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Inventories are stated at the lower of average cost, which approximates the first-in, first-out method, or market (net realizable value). The Company regularly reviews its inventories for the presence of obsolete product attributed to age, seasonality and quality. Inventories that are considered obsolete are written off or adjusted to carrying value.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Deferred Financing Costs</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Costs relating to obtaining financing are capitalized and amortized over the term of the related debt. When a loan is paid in full, any unamortized financing costs are removed from the related accounts and charged to operations. Deferred financing costs related to a borrowing made in June 2011 were $225,000. Amortization of deferred financing costs charged to operations was $22,500 for the six months ended June 30, 2015 and 2014.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Income Taxes</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company accounts for income taxes in accordance with ASC 750 which requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards. The Company periodically assesses uncertain tax positions that the Company has taken or expects to take on a tax return, including a decision whether to file or not to file a return in a particular jurisdiction. The Company evaluated its tax positions and determined that there were no uncertain tax benefits as of June 30, 2015 and December 31, 2014.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Revenue Recognition</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company recognizes revenue from the brewing and distribution operations in accordance with Accounting Standards Codification 605 of the Financial Accounting Standards Board. The Company recognizes revenue from product sales, net of discounts.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company recognizes revenue only when all of the following criteria have been met:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 48px">&#160;</td> <td style="width: 24px; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">&#9679;</font></td> <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Persuasive evidence of an arrangement exists;</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 48px">&#160;</td> <td style="width: 24px; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">&#9679;</font></td> <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Delivery has occurred or services have been rendered;</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 48px">&#160;</td> <td style="width: 24px; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">&#9679;</font></td> <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The fee for the arrangement is fixed or determinable; and</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 48px">&#160;</td> <td style="width: 24px; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">&#9679;</font></td> <td style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Collectability is reasonably assured.</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#147;Persuasive Evidence of an Arrangement&#148; &#150; The Company documents all terms of an arrangement in a written contract or purchase order signed by the customer prior to recognizing revenue.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#147;Delivery Has Occurred or Services Have Been Performed&#148; &#150; The Company delivers the products prior to recognizing revenue or performs services as per contractual terms. Product is considered delivered upon delivery to a customer&#146;s designated location and services are considered performed upon completion of the Company&#146;s contractual obligations.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#147;The Fee for the Arrangement is Fixed or Determinable&#148; &#150; Prior to recognizing revenue, an amount is either fixed or determinable under the terms of the written contract. The price is negotiated at the outset of the arrangement and is not subject to refund or adjustment during the initial term of the arrangement.&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#147;Collectability is Reasonably Assured&#148; &#150; The Company determines that collectability is reasonably assured prior to recognizing revenue. Collectability is assessed on a customer-by-customer basis based on criteria outlined by Management. The Company does not enter into arrangements unless collectability is reasonably assured at the outset. Existing customers are subject to ongoing credit evaluations based on payment history and other factors. If it is determined during the arrangement that collectability is not reasonably assured, revenue is recognized on a cash basis.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company records certain consideration paid to customers for services or placement fees as a reduction in revenue rather than as an expense. The Company reports these items on the income statement as a reduction in revenue and as a corresponding reduction in marketing and selling expenses.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Revenues from the Company&#146;s brewpub and gift store are recognized when sales have been completed.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Basic and Diluted Earnings (Loss) per Share</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The basic earnings (loss) per share is computed by dividing the earnings (loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period. Basic net earnings (loss) per share exclude the dilutive effect of stock options or warrants and convertible notes. If the Company&#146;s operations result in net loss for any period, diluted net loss per share would be the same as basic net loss per share, since the effect of any potentially dilutive securities would be anti-dilutive. Therefore, the conversion of the related party convertible notes (see &#147;Subordinated Convertible Notes Payable&#148; below) has been excluded from the Company&#146;s calculation of net loss per share. The computations of basic and dilutive net loss per share are as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Three months ended</font></td> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Six months ended</font></td> <td style="text-align: center; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">6/30/2015</font></td> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">6/30/2014</font></td> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">6/30/2015</font></td> <td style="text-align: center; line-height: 115%">&#160;</td> <td style="text-align: center; line-height: 115%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">6/30/2014</font></td> <td style="text-align: center; line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 44%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net loss</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(85,700</font></td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(137,000</font></td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(759,600</font></td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 1%; line-height: 115%">&#160;</td> <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(605,600</font></td> <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Weighted average common shares outstanding</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Basic net loss per share</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.01</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.01</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.06</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.05</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Interest expense on convertible notes</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Loss for computing diluted net income per share</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(85,700</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(137,000</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(759,600</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(605,600</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Incremental shares from assumed exercise of dilutive securities</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Dilutive potential common shares</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,611,133</font></td> <td style="line-height: 115%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Diluted net loss per share</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.01</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.01</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.06</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="line-height: 115%">&#160;</td> <td style="line-height: 115%">&#160;</td> <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.05</font></td> <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><u>Foreign Currency Translation</u></font></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><font style="font: 10pt Times New Roman, Times, Serif">&#160;</font></p> <p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The Company has subsidiaries located in the UK, where the local currency, the UK Pound Sterling, is the functional currency. Financial statements of these subsidiaries are translated into US dollars using period-end exchange rates for assets and liabilities and average exchange rates during the period for revenues and expenses. Cumulative translation adjustments associated with net assets or liabilities are reported in non-owner changes in equity. Any exchange rate gains or losses related to foreign currency transactions are recognized in the income statement as incurred, in the same financial statement caption as the underlying transaction, and are not material for any year shown. Cash flows were translated at the average exchange rates for the six months then ended. Changes in cash resulting from the translations are presented as a separate item in the statements of cash flows.</font></p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Use of Estimates</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The preparation of financial statements in conformity with accounting principles generally accepted in the US includes having the Company make estimates and assumptions affecting the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. The amounts estimated could differ from actual results. Significant estimates include the allowance for bad debts, depreciation and amortization periods, and the future utilization of deferred tax assets.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Comprehensive Income (Loss)</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Comprehensive income (loss) is composed of the Company&#146;s net loss and changes in equity from non-stockholder sources. The accumulated balances of these non-stockholder sources are reflected as a separate item in the equity section of the balance sheet.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Reportable Segments</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company manages its operations through two business segments: (i) brewing operations and tasting room operations in the US and distributor operations in Canada (the &#147;North American Territory&#148;) and (ii) distributor operations in Europe, including the UK (the &#147;Foreign Territory&#148;). The Company evaluates performance based on net operating profit. Where applicable, portions of the administrative function expenses are allocated between the operating segments. The operating segments do not share manufacturing or distribution facilities. In the event any materials and/or services are provided to one operating segment by the other, the transaction is valued according to the Company&#146;s transfer policy, which approximates market price. The costs of operating the manufacturing plants are captured discretely within each segment. The Company&#146;s property, plant and equipment, inventory, and accounts receivable are captured and reported discretely within each operating segment.</p> Q2 2.5 <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>10. <u>Severance Payable</u></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company is a party to a Separation and Severance Agreement (the &#147;Separation Agreement&#148;) with Mr. Yashpal Singh, its President and Chief Executive Officer. Pursuant to the terms of the Separation Agreement, upon Mr. Singh&#146;s (i) termination of employment for Good Reason (as defined in the Separation Agreement), (ii) termination of employment at the end of the employment term, (iii) death, (iv) disability or (v) termination by the Company without Cause (as defined in the Separation Agreement), he shall be entitled to certain severance benefits and payments. The severance payment shall equal the product of 2.5 times his average monthly base salary (calculated over the twelve (12) month period preceding the termination event), multiplied by the number of years (on a pro-rated basis) he had been employed by the Company at the Termination Date (as defined in the Separation Agreement); provided, however, that the severance payment may not exceed thirty (30) months of Mr. Singh&#146;s average monthly base salary (calculated over the twelve (12) months preceding his termination date). Payments due to Mr. Singh under the Separation Agreement shall be paid in equal monthly installments by the Company over a 20 month period. The receipt of payments is contingent on Mr. Singh executing a release of claims for the benefit of the Company. As of June 30, 2015, the Company estimated this obligation to be $760,100.</p> -1.12 2500000 20 71800 61500 119900 2047700 1609300 173600 327300 3647800 3254900 1225000 1225000 9904500 9660700 421900 258000 310400 267800 15509600 14666400 2620000 2515500 1031300 1161200 1038700 1571800 3918900 4107500 9801800 13804000 12100 9400 760100 304100 14162900 14117500 15100300 15100300 227600 227600 -13981200 -14779000 1346700 548900 15509600 14666400 5540200 5979500 3166500 3244600 -4593900 -5058300 -2471300 -2699900 -675700 -706400 -322300 -341100 -860700 -928200 -380600 -424800 -590100 -713400 -7700 -221200 -3800 -797800 -959300 -91700 -343300 43600 10700 40500 8800 113900 -837900 -70400 -57700 500000 1000000 267400 267400 2700 2600 163900 128700 61500 119900 56300 113700 1934000 2947000 1000000 3676600 1571800 <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><u>Concentration of Credit Risks</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, and accounts receivable. Substantially all of the Company&#146;s cash and cash equivalents are deposited with commercial banks in the US and the UK that have minimal credit risk. Accounts receivable are generally unsecured and customers are subject to an initial credit review and ongoing monitoring. Wholesale distributors account for substantially all accounts receivable; therefore, this risk concentration is limited due to the number of distributors and the laws regulating the financial affairs of distributors of alcoholic beverages. The Company has approximately $1,600 in cash deposits and $2,294,200 of accounts receivable due from customers located in the UK as of June 30, 2015.</p> 2015 -247500 -256600 -124500 -130900 -378900 -20500 58400 -57400 3588900 760100 500000 500000 500000 500000 MENB 0000919134 12611133 7280400 6042900 632900 745800 4384500 3492600 11087800 10979300 310400 267800 18678600 17290000 2156900 2087500 4860800 4062600 1768600 1855800 1038700 1571800 3913300 3645900 5600 25300 456000 14263200 17863100 3588900 12100 88200 760100 304100 4880400 654400 19143600 18517500 227600 227600 15100300 15100300 454200 451300 -16247100 -17006700 -465000 -1227500 18678600 17290000 3634000 4585000 5119100 2489400 2790800 10247700 11643600 5649200 6121900 14832700 16762700 8138600 8912700 239400 303200 126200 166500 15072100 17065900 8264800 9079200 2860000 3135200 1457100 1607300 2215300 2265400 1003700 1145100 5075300 5400600 2460800 2752400 43600 10700 40500 8800 16300 5200 309100 351100 154800 189400 -265500 -324100 -114300 -175400 -755800 -605600 -85700 -137000 3800 -759600 -605600 -85700 -137000 -2900 -40300 -30000 -28900 -762500 -645900 -115700 -165900 12611133 12611133 12611133 12611133 900 -18000 -112100 349800 2700 2600 521400 545600 -88000 -102000 -339700 -228400 16300 427300 -371300 81700 611900 -797500 -515500 37700 -45900 109900 443000 -435700 -228500 -957000 282600 16300 -2000 -7200 581400 552600 -23600 -267900 145100 121500 56900 324800 3800 230900 291000 98500 <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>6. <u>Subordinated Convertible Notes Payable to Related Party</u></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Subordinated convertible notes to a related party included notes payable to UBA (the &#147;UBA Notes&#148;) for a total value of $3,634,000 as of June 30, 2015, including interest at the prime rate plus 1.5% per year, but not to exceed 10%. Thirteen of the UBA Notes are convertible into common stock at a rate of $1.50 per share and one UBA Note is convertible at a rate of $1.44 per share. The UBA Notes have been extended until June 2016 and have automatic renewals after such maturity date for successive one year terms, provided that either the Company or UBA may elect not to extend the term upon written notice given to the other party no more than 60 days and no fewer than 30 days prior to the expiration of the applicable term. Under the terms of the UBA Notes, UBA may demand payment within 60 days following the end of the extension period. UBA has agreed to subordinate the UBA Notes to the Company&#146;s long-term debt agreements with MB Financial, as successor-in-interest to Cole Taylor, which mature in June 2016. Therefore, the Company will not require the use of working capital to repay any of the UBA Notes until the Lender&#146;s facility is repaid. The UBA Notes include $1,718,600 and $1,673,500 of accrued interest at June 30, 2015 and December 31, 2014, respectively.</p> 22100 22100 11000 0.25 33100 14800 45100 45100 1000000 500000 3634000 500000 500000 -490300 -586800 -710300 428800 96500 -281500 1369600 1802300 EX-101.SCH 7 menb-20150630.xsd XBRL SCHEMA FILE 00000001 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 00000002 - Statement - Condensed Consolidated Balance Sheets link:presentationLink link:calculationLink link:definitionLink 00000003 - Statement - Condensed Consolidated Balance Sheets (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000004 - Statement - Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000005 - Statement - Consolidated Statements of Cash Flows (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000006 - Disclosure - Description of Operations and Summary of Significant Accounting Policies link:presentationLink link:calculationLink link:definitionLink 00000007 - Disclosure - Liquidity and Management Plans link:presentationLink link:calculationLink link:definitionLink 00000008 - Disclosure - Inventories link:presentationLink link:calculationLink link:definitionLink 00000009 - Disclosure - Secured Lines of Credit link:presentationLink link:calculationLink link:definitionLink 00000010 - Disclosure - Notes Payable to Related Party link:presentationLink link:calculationLink link:definitionLink 00000011 - Disclosure - Subordinated Convertible Notes Payable To Related Party link:presentationLink link:calculationLink link:definitionLink 00000012 - Disclosure - Secured Notes Payable link:presentationLink link:calculationLink link:definitionLink 00000013 - Disclosure - Long-Term Debt - Related Party link:presentationLink link:calculationLink link:definitionLink 00000014 - Disclosure - Capital Lease Obligations link:presentationLink link:calculationLink link:definitionLink 00000015 - Disclosure - Severance Payable link:presentationLink link:calculationLink link:definitionLink 00000016 - Disclosure - Commitments and Contingencies link:presentationLink link:calculationLink link:definitionLink 00000017 - Disclosure - Related-Party Transactions link:presentationLink link:calculationLink link:definitionLink 00000018 - Disclosure - Segment Information link:presentationLink link:calculationLink link:definitionLink 00000019 - Disclosure - Unrestricted Net Assets link:presentationLink link:calculationLink link:definitionLink 00000020 - Disclosure - Income Taxes link:presentationLink link:calculationLink link:definitionLink 00000021 - Disclosure - Description of Operations and Summary of Significant Accounting Policies (Policies) link:presentationLink link:calculationLink link:definitionLink 00000022 - Disclosure - Description of Operations and Summary of Significant Accounting Policies (Tables) link:presentationLink link:calculationLink link:definitionLink 00000023 - Disclosure - Inventories (Tables) link:presentationLink link:calculationLink link:definitionLink 00000024 - Disclosure - Secured Notes Payable (Tables) link:presentationLink link:calculationLink link:definitionLink 00000025 - Disclosure - Long-Term Debt - Related Party (Tables) link:presentationLink link:calculationLink link:definitionLink 00000026 - Disclosure - Capital Lease Obligations (Tables) link:presentationLink link:calculationLink link:definitionLink 00000027 - Disclosure - Related-Party Transactions (Tables) link:presentationLink link:calculationLink link:definitionLink 00000028 - Disclosure - Segment Information (Tables) link:presentationLink link:calculationLink link:definitionLink 00000029 - Disclosure - Unrestricted Net Assets (Tables) link:presentationLink link:calculationLink link:definitionLink 00000030 - Disclosure - Description of Operations and Summary of Significant Accounting Policies (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000031 - Disclosure - Description of Operations and Summary of Significant Accounting Policies - Schedule of Basic and Dilutive Net Loss Per Share (Details) link:presentationLink link:calculationLink link:definitionLink 00000032 - Disclosure - Liquidity and Management Plans (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000033 - Disclosure - Inventories - Schedule of Inventories (Details) link:presentationLink link:calculationLink link:definitionLink 00000034 - Disclosure - Secured Lines of Credit (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000035 - Disclosure - Notes Payable to Related Party (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000036 - Disclosure - Subordinated Convertible Notes Payable to Related Party (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000037 - Disclosure - Secured Notes Payable - Summary of Long-Term Debt (Details) link:presentationLink link:calculationLink link:definitionLink 00000038 - Disclosure - Secured Notes Payable - Summary of Long-Term Debt (Details) (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000039 - Disclosure - Long-Term Debt - Related Party (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000040 - Disclosure - Long-Term Debt - Related Party - Schedule of Related Party Debt (Details) link:presentationLink link:calculationLink link:definitionLink 00000041 - Disclosure - Long-Term Debt - Related Party - Schedule of Related Party Debt (Details) (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000042 - Disclosure - Long-Term Debt - Related Party - Summary of Maturities of Long-Term Debt for Succeeding Years (Details) link:presentationLink link:calculationLink link:definitionLink 00000043 - Disclosure - Capital Lease Obligations - Schedule of Future Minimum Lease Payments for Capital Lease Payments (Details) link:presentationLink link:calculationLink link:definitionLink 00000044 - Disclosure - Severance Payable (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000045 - Disclosure - Commitments and Contingencies (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000046 - Disclosure - Related-Party Transactions (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000047 - Disclosure - Related-Party Transactions - Schedule of Related-Party Transactions (Details) link:presentationLink link:calculationLink link:definitionLink 00000048 - Disclosure - Segment Information - Schedule of Segment Information (Details) link:presentationLink link:calculationLink link:definitionLink 00000049 - Disclosure - Unrestricted Net Assets (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000050 - Disclosure - Unrestricted Net Assets - Condensed Balance Sheets of US Operations (Details) link:presentationLink link:calculationLink link:definitionLink 00000051 - Disclosure - Unrestricted Net Assets - Condensed Statement of Operations of US Operations (Details) link:presentationLink link:calculationLink link:definitionLink 00000052 - Disclosure - Unrestricted Net Assets - Condensed Statement of Cash Flows of US Operations (Details) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 8 menb-20150630_cal.xml XBRL CALCULATION FILE EX-101.DEF 9 menb-20150630_def.xml XBRL DEFINITION FILE EX-101.LAB 10 menb-20150630_lab.xml XBRL LABEL FILE Releta [Member] Legal Entity [Axis] MBC [Member] Related Party [Member] Related Party [Member] KBEL [Member] Revolving Credit Facility [Member] Lender Name [Axis] Lender Name [Axis] Machinery And Equipment Term Loan [Member] Real Estate Term Loan [Member] Capital Expenditure Line Of Credit [Member] Lender [Member] Cole Taylor [Member] RBS [Member] MBC and Releta [Member] One UBA Note [Member] Investment Type [Axis] Thirteen UBA Notes [Member] Ukiah Secured Real Property [Member] Debt Instrument [Axis] Secured Assets Of Releta And MBC [Member] North American Territory [Member] Statement, Operating Activities Segment [Axis] North American Territory Operations [Member] Foreign Territory [Member] Corporate And Other [Member] MBFinancialBankNotes With 4% Prime Plus Interest Rate [Member] MBFinancialBankNotes With 3.5% Prime Plus Interest Rate [Member] 5% Notes Payable [Member] Common Shares [Member] Equity Components [Axis] Series A Preferred Shares [Member] Accumulated Other Comprehensive Income [Member] Accumulated Deficit [Member] June 2011 [Member] Report Date [Axis] Building [Member] Property, Plant and Equipment, Type [Axis] Maximum [Member] Range [Axis] Machinery And Equipment [Member] Minimum [Member] Equipment Under Capital Lease [Member] Leasehold Improvements [Member] Vehicles [Member] Furniture And Fixtures [Member] Notes to Marquette [Member] Note to Grand Pacific [Member] Subordinated Convertible Notes Payable [Member] MicroStar [Member] Related Party [Axis] UK [Member] Income Tax Authority [Axis] US State [Member] Foreign Territory Operations [Member] Geographical [Axis] UBIUK [Member] GBP [Member] Intercompany Foreign Currency Balance by Description [Axis] UK [Member] All Countries [Axis] April Twenty Nine Two Thousand Thirteen [Member] UK [Member] Currency [Axis] Ukiah [Member] Fixed Charges Coverage Required Trailing 12 Months [Member] Scenario [Axis] Fixed Charges Coverage Actual Trailing 12 Months [Member] Fixed Charges Coverage Ratio[Member] Common Stock [Member] US Federal [Member] United Breweries Holding Limited [Member] Loan from Heineken UK Limited Notes With 5% Prime Plus Interest Rate [Member] HUK [Member] Shepherd Neame Ltd [Member] United Breweries of America [Member] Catamaran Services, Inc. [Member] Subsequent Event [Member] Subsequent Event Type [Axis] Catamaran Services, Inc. [Member] Catamaran Notes [Member] First 60,000 Barrels [Member] Excess Of 60,000 Barrels [Member] MB Financial Bank [Member] Prior To Amendment [Member] UBA Convertible Notes [Member] 13 UBA Notes [Member] Severance Payable Long Term [Member] After Amendment [Member] Borrowing From Catamaran [Member] Document And Entity Information Entity Registrant Name Entity Central Index Key Document Type Document Period End Date Amendment Flag Current Fiscal Year End Date Entity Filer Category Entity Common Stock, Shares Outstanding Trading Symbol Document Fiscal Period Focus Document Fiscal Year Focus Statement of Financial Position [Abstract] ASSETS Current Assets Cash Accounts receivable, net Inventories Prepaid expenses Total Current Assets Property and Equipment, net Deposits and other assets Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Secured lines of credit Accounts payable Accrued liabilities Note payable to related party Subordinated convertible notes to related party Current maturities of secured notes payable Current maturity of long-term debt to related party Current maturity of obligations under capital lease Current maturity of severance payable Total Current Liabilities Long-Term Liabilities Subordinated convertible notes to related party Long term debt to related party, less current maturity Long term lease, less current maturity Severance payable, less current maturity Total Long-Term Liabilities Total Liabilities Commitments and contingencies Stockholders' Equity Preferred stock, Series A, no par value, with liquidation preference of $1 per share; 10,000,000 shares authorized, 227,600 shares issued and outstanding Common stock, no par value 30,000,000 shares authorized, 12,611,133 shares issued and outstanding Accumulated comprehensive income Accumulated deficit Total Stockholders' Equity Total Liabilities and Stockholders' Equity Preferred stock, Series A, liquidation preference per share Preferred stock, no par value Preferred stock, Series A, shares authorized Preferred stock, Series A, shares issued Preferred stock, Series A, shares outstanding Common stock, no par value Common stock, shares authorized Common stock, shares issued Common stock, shares outstanding Income Statement [Abstract] Sales Excise taxes Net Sales Cost of goods sold Gross Profit Operating Expenses Marketing General and administrative Total Operating Expense Income (loss) from operations Other Income (Expense) Other income Profit on sale of asset Interest expense Total Other Expense Loss before income taxes Provision for income taxes Net loss Foreign currency translation loss Comprehensive Loss Net loss per common share (basic) Net loss per common share (diluted) Weighted average common shares outstanding Basic Weighted average common shares outstanding diluted Statement of Cash Flows [Abstract] CASH FLOWS FROM OPERATING ACTIVITIES Net Loss Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization Provision for doubtful accounts Interest accrued on related party debt Profit on sale of assets Changes in operating assets and liablities: Accounts receivable Inventories Prepaid expenses Deposits and other assets Accounts payable Accrued liabilities Net cash used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment Proceeds from sale of assets Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Net borrowing repayment on lines of credit Borrowing on note payable Repayment on long-term debt Payments on obligations under long term leases Net cash provided by financing activities EFFECT OF EXCHANGE RATE CHANGES ON CASH NET CHANGE IN CASH CASH, beginning of period CASH, end of period SUPPLEMENTARY CASH FLOW INFORMATION Cash paid during the period for: Income taxes Interest NON CASH INVESTING AND FINANCING ACTIVITIES Seller financed asset Accounting Policies [Abstract] Description of Operations and Summary of Significant Accounting Policies Liquidity And Management Plans Liquidity and Management Plans Inventory Disclosure [Abstract] Inventories Line of Credit Facility [Abstract] Secured Lines of Credit Debt Disclosure [Abstract] Notes Payable to Related Party Subordinated Convertible Notes Payable To Related Party Subordinated Convertible Notes Payable To Related Party Long-term Debt, Unclassified [Abstract] Secured Notes Payable Long-term Debt - Related Party Long-Term Debt - Related Party Capital Lease Obligations [Abstract] Capital Lease Obligations Severance Payable Severance Payable Commitments and Contingencies Disclosure [Abstract] Commitments and Contingencies Related Party Transactions [Abstract] Related-Party Transactions Segment Reporting [Abstract] Segment Information Unrestricted Net Assets Unrestricted Net Assets Income Tax Disclosure [Abstract] Income Taxes Description of Operations Subsequent Events Principles of Consolidation Basis of Presentation and Organization Reclassifications Cash and Cash Equivalents, Short and Long-Term Investments Revenue Recognition Allowance for Doubtful Accounts Inventories Deferred Financing Costs Concentration of Credit Risks Income Taxes Basic and Diluted Earnings (Loss) per Share Foreign Currency Translation Use of Estimates Comprehensive Income (Loss) Reportable Segments Schedule of Basic and Dilutive Net Loss Per Share Schedule of Inventories Summary of Long-term Debt Long-term Debt - Related Party Tables Schedule of Related Party Debt Schedule of Maturities of Long Term Debt Schedule of Future Minimum Lease Payments for Capital Lease Payments Schedule of Related-Party Transactions Schedule of Segment Information Unrestricted Net Assets Tables Condensed Balance Sheets Condensed Statement of Operations Condensed Statement of Cash Flows Statement [Table] Statement [Line Items] Deferred financing costs on borrowings Amortization of deferred financing costs charged to operations Cash deposits Accounts receivable due from customers Uncertain tax benfits Net loss Weighted average common shares outstanding Basic net loss per share Interest expense on convertible notes Loss for computing diluted net income per share Incremental shares from assumed exercise of dilutive securities Dilutive potential common shares Diluted net loss per share Credit facility, maturity date Credit facility, agreement amount, prior to amendment Machinery and equipment, agreement amount Real estate, agreement amount Capital expenditure, agreement amount Default interest per year Default interest rate in excess of regular rate Reduction in advance rate against inventory each month Fixed charge coverage ratio - Required Fixed charges coverage ratio - Calculated Tangible net worth Required MBC and Releta Actual tangible net worth Revolver facility, agreement amount, as per second amendment Cash and cash equivalents Accumulated deficit Working capital deficit Investments commitment by UBHL Proceeds from related party loan Raw Materials Beer-in-process Finished Goods Merchandise TOTAL Percentage of line of credit drawn on receivables, maximum Percentage of line of credit drawn on inventory, maximum Facility expiration date Facility interest rate above prime lending rate Line of credit, outstanding amount Account receivables Initial term of facility Percentage of prepayment against qualified accounts receivable Percentage of service charge on each invoice discounted Note payable to related party Interest payable Proceeds issuance of notes Percentage of convertible notes interest, prime rate plus Percentage of convertible notes interest rate, maximum Unsecured convertible notes Debt instruments conversion price per share Convertible notes payable maturity date, description Accrued interest Long term debt, total Less current maturities Long-term debt non-current Loans payable in monthly installments Loans payable, interest rate above prime rate Balloon payment of loans Debt instrument maturity date Secured debt Repayment of secured loan by twelve equal quarterly installments Interest rate above Prime Rate Long term debt, total Less current maturities Long-term debt non-current Loans payable in quarterly installments Payable during six months ending December 31, 2015 Payable during year ending December 31, 2016 Six months Ending December 31, 2015 Year Ending December 31, 2016 Year Ending December 31, 2017 Year Ending December 31, 2018 Year Ending December 31, 2019 Year Ending December 31, 2020 Capital lease future minimum payment due, total Less amounts representing interest Present value of minimum lease payments Less current maturities Non-current leases payable Number of times on average monthly base salary Number of monthly installments Severance payable Demanded payment in legal dispute Percentage of ownership interest Purchases from related party Expenses reimbursement to related party Interest expenses associated with related party notes Borrowing from Catamaran Notes payable including accrued interest Accounts payable and accrued liability Operating Activities [Axis] Net Sales Operating Income (Loss) Identifiable Assets Depreciation & Amortization Capital Expenditures Undistributed losses of UBIUK Minimum Retained Earning required for distributions and other payments to MBC from KBEL Cash and cash equivalents Accounts receivable, net Inventories Other current assets Total current assets Investment in subsidiary Property and equipment Intercompany receivable Other assets Total assets Line of credit Accounts payable Accrued liabilities Note payable related party Subordinated convertible notes to related party Current maturities of debt, leases and severance Total current liabilities Long-term capital leases Subordinated convertible notes payable Severance payable Total liabilities Common stock Preferred stock Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity Net sales Cost of goods sold Selling, marketing, and retail expenses General and administrative expenses Loss from operations Other income Interest expense Provision for taxes Net loss Cash flows from operating activities Purchase of property and equipment Net borrowing (repayment) on line of credit Borrowing on note payable Repayment on long term debt Payment on obligation under capital lease Net change in payable to UBIUK Decrease in cash Cash, beginning of period Cash, end of period Accounts Payable And Accrued Expenses To Related Parties Accounts Payables Accumulated Deficit Accumulated deficit of subsidiary. Actual tangible net worth. All Countries [Axis] April Twenty Nine Two Thousand Thirteen [Member] Calculated fixed charges coverage ratio. Capital Expenditure Line Of Credit Member Cash And Cash Equivalents Short And Long Term Investments [Policy Text Block] Cash Deposits Cash Flows From Operating Activities Catamaran [Member] Catamaran Service Inc [Member] Catamaran Services Inc [Member]. Cole Taylor [Member] Common Stock Amount Corporate And Others [Member] Cost Of Goods Sold Net Credit facility reduced amount. Debt Instrument Balloon Payment Description Of Operations [Policy Text Block] Excess of 60,000 Berrel [Member] Federal Jurisdiction [Member]. First 60,000 Berrel [Member] Five Percent Notes Payable Member Fixed Charges Coverage Actual Trailing Twelve Months [Member] Fixed Charges Coverage Ratio [Member] Fixed Charges Coverage Required Trailing Twelve Months [Member] Foreign Territory [Member] Foreign Territory Operations [Member] GB [Member] GBP [Member] General And Administrative Expenses Heineken UK Limited [Member]. Identifiable Assets Income From Operations Income Loss Computing Loss Diluted Earnings Per Share Amount Income Loss Net Intercompany Receivable Inventories Net June Two Thousand Eleven [Member] Lender [Member] Line Of Credit Facility Maturity Period Agreement provides a credit facility for capital expenditure. Agreement provides a credit facility for machinery and equipment. Agreement provides a credit facility for real estate. Liquidity And Management Plans [Text Block]. Loan From Heineken UK Limited With Five Percentage Of Interest Rate Of Prime Plus [Member]. Long term debt related party [Text Block]. MB Financial Bank Notes with Three Point Five Percentage of Prime Plus Interest Rate [Member] Machinery And Equipment Term Loan [Member] Mb Financial Bank [Member] Mb Financial Bank Notes With Four Percentage of Prime Plus Interest Rate [Member] MicroStar Keg Management Agreement [Member] Percentage of monthly inventory work in progress. Net Change In Payable To Subsidiary North American Territory [Member] North American Territory Operations [Member] Note Payable To Related Party. Note To Grand Pacific [Member] Notes Payable Related Parties Current. Notes To Marquette [Member] Notes To Related Parties [Text Block] Number of times on average monthly base salary. One United Breweries Of America Inc Note [Member] Parent And Subsidiary Or Affiliate Company [Member] Payment On Obligation Under Capital Lease Percentage of Increase Interest. Percentage Of Line Of Credit Drawn On Eligible Inventory Percentage Of Line Of Credit Drawn On Eligible Receivables Percentage Of Prepayment Of Against Qualified Accounts Receivable Percentage Of Service Charge Discounted On Invoice Preferred Stock Amount Property And Equipment Provision For Taxes Real Estate Term Loan [Member] Related Party [Member] Related Party Transaction Expense Reimbursement To Related Party Releta [Member] Repayment On Long Term Debt Required fixed charge coverage ratio. Royal Bank Of Scotland Commercial Services Limited [Member] Schedule of related party debt [Table Text Block]. Secured By All Assets Of Releta And MBC [Member] Secured By Real Property At Ukiah [Member] Selling And Marketing and Retail Expense Severance Payable Disclosure [Text Block] Severance payable Severance payable noncurrent. Severance payment term number of monthly installments. Shepherd Neame Ltd [Member]. Subordinated Convertible Notes Payable [Member] Tangible net worth required. Thirteen United Breweries Of America Inc Note [Member] Total Assets Total Current Assets Total Current Liabilities Total Liabilities And Stockholders Equity Total Liabilities Total Stockholders Equity Unrestricted Assets UBIUK [Member] Ukiah [Member] United Breweries Holding Limited [Member]. United Breweries Of America [Member]. United Kingdom [Member] Unrestricted Assets Disclosure [Text Block] Working Capital Deficit Current maturity of severance payable. UBA Convertible Notes [Member] Concentration of Credit Risks [Policy Text Block] Thirteen United Breweries Of America Inc Notes [Member] Interest Expenses. Proceed From Repayments Of Lines Of Credit. Subordinated convertible notes payable. Severance Payable Long Term [Member] Severance Payables Noncurrent. Prior to amendment [Member] After amendment [Member]. Seller financed asset. Subordinated Convertible Notes Payable To Related Party [Text Block]. Borrowing From Catamaran [Member]. Interest Expenses with Related Party. Subordinated convertible notes to related party. Operating Income Losses. Affiliated Entity [Member] Credit Facility [Axis] GBMember UnitedKingdomMember CatamaranServiceIncMember Assets, Current Assets Liabilities, Current Convertible Subordinated Debt, Noncurrent Long-term Debt Liabilities Stockholders' Equity Attributable to Parent Liabilities and Equity Sales Revenue, Goods, Net Gross Profit Operating Expenses [Default Label] Operating Income (Loss) [Default Label] Interest Expense Other Nonoperating Income (Expense) Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest Comprehensive Income (Loss), Net of Tax, Attributable to Parent Gain (Loss) on Disposition of Other Assets Increase (Decrease) in Accounts Receivable Increase (Decrease) in Inventories Increase (Decrease) in Prepaid Expense Increase (Decrease) in Deposit Assets Increase (Decrease) in Accounts Payable Increase (Decrease) in Accrued Liabilities Net Cash Provided by (Used in) Operating Activities Net Cash Provided by (Used in) Investing Activities Repayments of Long-term Debt Repayments of Long-term Capital Lease Obligations Net Cash Provided by (Used in) Financing Activities Cash and Cash Equivalents, Period Increase (Decrease) Inventory Disclosure [Text Block] SubordinatedConvertibleNotesPayableToRelatedPartyTextBlock SeverancePayableDisclosureTextBlock UnrestrictedAssetsDisclosureTextBlock Inventory, Policy [Policy Text Block] Income Tax, Policy [Policy Text Block] Due to Related Parties Notes Payable, Related Parties Capital Leases, Future Minimum Payments Due Capital Leases, Future Minimum Payments, Interest Included in Payments Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments InventoriesNet TotalCurrentAssets TotalAssets AccountsPayables Accrued Liabilities SubordinatedConvertibleNotesToRelatedParty TotalCurrentLiabilities SeverancePayableNonCurrentLiabilities TotalLiabilities AccumulatedDeficit TotalStockholdersEquityUnrestrictedAssets TotalKiabilitiesAndStockholdersEquity CostOfGoodsSoldNet Other Income Proceeds from Short-term Debt RepaymentOnLongTermDebt PaymentOnObligationUnderCapitalLease Cash Equivalents, at Carrying Value EX-101.PRE 11 menb-20150630_pre.xml XBRL PRESENTATION FILE XML 12 R39.htm IDEA: XBRL DOCUMENT v3.2.0.727
Long-Term Debt - Related Party (Details Narrative) - Oct. 09, 2013 - HUK [Member] - GBP [Member] - GBP (£)
Total
Secured debt £ 1,000,000
Repayment of secured loan by twelve equal quarterly installments £ 83,333
Interest rate above Prime Rate 5.00%
XML 13 R48.htm IDEA: XBRL DOCUMENT v3.2.0.727
Segment Information - Schedule of Segment Information (Details) - USD ($)
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Net Sales $ 14,832,700 $ 16,762,700
Operating Income (Loss) (490,300) (281,500)
Identifiable Assets 17,290,000 19,289,100
Depreciation & Amortization 581,400 552,600
Capital Expenditures 339,700 244,700
North American Territory [Member]    
Net Sales 5,540,200 5,979,500
Operating Income (Loss) (586,800) (710,300)
Identifiable Assets 13,183,400 14,749,600
Depreciation & Amortization 336,700 339,200
Capital Expenditures 70,400 57,700
Foreign Territory [Member]    
Net Sales 9,292,500 10,783,200
Operating Income (Loss) 96,500 428,800
Identifiable Assets 4,106,600 4,539,500
Depreciation & Amortization 244,700 213,400
Capital Expenditures $ 269,300 $ 187,000
EXCEL 14 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx M4$L#!!0````(`"&5#D>\#5@"[P$``"T@```3````6T-O;G1E;G1?5'EP97-= M+GAM;,W:S4[C,!`'\%>IR$-6Y(-*1I*CFJB_/;#85@6II<[@(E]Z+2WO>FT5?CYWM6!^G%-[(Q_+G6]S5EB_FU1Y6A\ M4X7]C?_KS-@R-#^L_MI1SC]X+7LW<6/[JZ`?S5Z!S='&5(ZUU68X-*I'%]:_ MG%M_Y6-"Y:I::J<^Y(4AF0-/25Y\EZ.1Y=2?JOWRI#0NT)L*EH5'?"DZ':C] MF4*>[^%WX\\%Q^NCS'7\_J^AC\'(QL,1D7A7'P*D#PG2AP+I8P[2QPE(']]! M^O@!TLQW8OG*\M"_V/Z'D4X$G1H>)%]2-F`Q+M*;V"^GH` MA3&^.R6:E((C-Z."N[_8_`)02P,$%`````@`(94.1[>K)I[H`0``V1\``!H` M``!X;"]?FN'T]-F2['?1B:S6NS M3T'K>AG&RSG5X\/'V8OG[;H:G[=2+7XVXSZ5=?6['U]SFU+)X7R2FVF!Z?'; MD+ZS?+_;'3;IJ=_\.J6N?%$1_BU0A?D@G0]22I#-!QDER.>#G!(4YX,B)6@Y M'[2D!-W.!]U2@N[F@^XH0??S0?>4(*F!C#4G"6'-T5H`U\+Q6@#8PA%;`-G" M,5L`VL)16P#;PG%;`-S"D5L`W<*Q6P#>PM%;@=[*T5N!WDKZUD8?VQR]%>BM M'+T5Z*TBM'+T5Z*TBM'+T-Z&TAM MI+T2M%G"T=N`WL;1VX#>QM';@-[&T=N`WL;1VX#>QM';@-[&T=N!WL[1VX'> MSM';@=[.T=N!WD[:ZT:;W1R]'>CM'+T=Z.TCM'+T=Z.TKOS7GJ7]#PJ>_^(_O4$L#!!0````(`"&5#D=MIB^&)0,``'0- M```0````9&]C4')O<',O87!P+GAM;+U776_:,!3]*Q9/W0,-A;;:$(W40:55 MZ@<:M'LVS@6L)G9F7Q#LU^_:`9:T24IX&"\X]CF^7^=>PD#93G]L=`H&)5BV M26)E^[1YTUHBIOT@L&()";?G!%%T.M`HM0H?I3#:ZCFRNXV`>!"\!W@&W3P!L3(2MV$G MP^2W/&8B>`Q#LA7.>6PA0_W;])BA3E*NMD'V]"#5FWU)IWK$$?*LXD%V^Y(; MB,AHX?;#IL?\V%*,.EUPM(,IC/Q[N<_$*QKI(+[KG'?H<4K#?S^X&'DFU M&'-I;#A88W\-`K79E6F-IU8ITL(5W;Y.R3_;8C-NP2UO6FMN)%?88E;^H<=N M*S.;[?IUG%HTX2]MWNP2`.T@.&SZ91Z;7\O+\*KK$;0J(H-#9.$N;86XW3[F!O]3*GQ,^T1<[3*1!;J_@G$5L3N%)$=VKS)35+Q\2@ZKH::^4!8B M1BNK8QF1S"+VG<=<"6`G<'I-.!.D+_*YBO,1B9;I.1MRNRSEC,`*(U,7K\,] MD]!]\-8G95+*>9"_5S)RV7*81Z[XPEMB8PK(EE+NU9H`VM`@*3WWXX"\INZ% MS&%ZDEB*?=)(F#'?\ED,##7[";$/V:EJ6W[]:J8-:='#*$UK-],<.[NKUJ6" MN?)\:+5H3\$D;`0S9.TC'!KR5"*/V0.04-GS+):++.T5KI##7E]U;M"`3"1F M)7>%H3B1V@^4J,KZSL^V]Y--R83EHLZ-A2_S9SWRH@S0MQ0N!T^`[-;:=R,F M)PRA$V!3OJGPL5:@W8L3.-W/%,K.IB[)]LOQNJBGU`ND8FA4*20SU;">GG1L M4>N#J:CNGM2\(+W."9SRPM=/IO)$YPO?9A/ZW8E65%`RZ4^:C"MV-@+DLKPX M]6.K8@;5S:W>=0-]4F2K).&F8C[6<7I?FXNZ]ZTYY[)54<-YCW"K#LB1O3?$RSL\:-30:;OXZ3@EG+CX,D9"PXE^*N]JK6GW"Z2 M#:*EA'B^`<7\*%3HD%P;IQB&T%7$,KYE%9!QEET3!<@$0T8.P-3VQ*0L!*?< M`4/C.KS@/=[N7!UA@A.H08%&3_)13I+R16^U:71!!GU9!,#:IU!Z9 MYA!47E)L+2R24^?7R=W]ZB$IQUD^2[-YFD]7^9Q.,SJ[>3],=N9O,*RZ(?ZM MXY/!N%V46,.%NXT:$9<;/R-(@.=.6I1&7X2+F&_B"/.[CT_@>#FH$\;+MH6V M,4[X,MZO(3J\G+"RRKCVF/H1G;VJ\@M02P,$%`````@`(94.1YE&UL[5I;<]HX%'[OK]!X9_9M"\8V M@;:T$W-I=MNTF83M3A^%$5B-;'EDD81_OTV23;J;/`0LZ?O.14?G MZ#AY\^XN8NB&B)3R> +]O6N[!3+UES@6QHO(];JM-O=5H1I;*$81V1@?5XL:$#05%%:;U\@ MM.4?,_@5RU2-9:,!$U=!)KF(M/+Y;,7\VMX^9<_I.ATR@6XP&U@@?\YOI^1. M6HCA5,+$P&IG/U9KQ]'22(""R7V4!;I)]J/3%0@R#3LZG5C.=GSVQ.V?C,K: M=#1M&N#C\7@XMLO2BW`A(5M>5`TR``6'!VULS2`Y9>*?IUE!K9';O=05SP6.XYB1'^QL4$UFG2 M&98T1G*=D`4.`#?$T4Q0?*]!MHK@PI+27)#6SRFU4!H(FLB!]4>"(<7K;YH]5Z%82=J$^!!&&N*<<^9ST6S[!Z5&T?95O-RCEU@5`9<8 MWS2J-2S%UGB5P/&MG#P=$Q+-E`L&08:7)"82J3E^34@3_BNEVOZ MKR2.FJW"$2M"/F(9-AIRM1:!MG&IA&!:$L;1>$[2M!'\6:PUDSY@R.S-D77. MUI$.$9)>-T(^8LZ+D!&_'H8X2IKMHG%8!/V>7L-)P>B"RV;]N'Z&U3-L+([W M1]072N0/)J<_Z3(T!Z.:60F]A%9JGZJ'-#ZH'C(*!?&Y'C[E>G@*-Y;&O%"N M@GL!_]':-\*K^(+`.7\N?<^E[[GT/:'2MSAD6R4)RU3393>*$IY"&V[I4_5*E=?EK[DHN#Q;Y.FOH70^+,_Y/%_GM,T+ M,T.WF)&Y"M-2D&_#^>G%>!KB.=D$N7V85VWGV-'1^^?!4;"C[SR6 M'<>(\J(A[J&&F,_#0X=Y>U^89Y7&4#04;6RL)"Q&MV"XU_$L%.!D8"V@!X.O M40+R4E5@,5O&`RN0HGQ,C$7H<.>77%_CT9+CVZ9EM6ZO*7<9;2)2.<)IF!-G MJ\K>9;'!51W/55ORL+YJ/;053L_^6:W(GPP13A8+$DACE!>F2J+S&5.^YRM) MQ%4XOT4SMA*7&+SCYL=Q3E.X$G:V#P(RN;LYJ7IE,6>F\M\M#`DL6XA9$N)- M7>W5YYNTB42%(JP#`4A%W+C[^^3:G>,U_HL@6V$5#)DU1?*0XG!/3-R0]A4)?.N MVB8+A=OB5,V[&KXF8$O#>FZ=+2?_VU[4/;07/4;SHYG@'K.'YA,L0Z1^P7V*BH`1JV*^NJ]/^26<.[1[\8$@F_S6VZ3V MW>`,?-2K6J5D*Q$_2P=\'Y(&8XQ;]#1?CQ1BK::QK<;:,0QY@%CS#*%F.-^' M19H:,]6+K#F-"F]!U4#E/]O4#6CV#30,9FV-J/D3@H\W/[O#;#"Q([A M[8N_`5!+`P04````"``AE0Y'66C^G&0"``!("P``#0```'AL+W-T>6QEOLS?9 MDTT77Y*PD"[K2O)'1Y_.^I?/_<('A;^J/AJ#VVG0O/T@G8"KTV@U]4TB0K!Q]+.H`.2J'X"*T2U M?V#<,T&%!$J?G.['8PVR.4;F]/`TE4(:6PY',]`9V]6%=Z MI43K8':Y$6`'G3<5,L=RR!S`'DHBB@NE`R0IEV94HC+2A5*":2,GJ!0<44/9 M1W2&ILTPI0_FX_I6;'&W!7`^YHQ]"(R*WM2%Z,SQ&MBB>IMLCGN3=G84+VB+ M(8&.1E5%UQ\I*3G#3JR#YJ*;':(/]M`G$>I9P5)(\J3]S47(-(`E!"LL%VVQ3^&Q6_Z?FEZ^:J,:?05?NSQ')[?0?<-2+.?V;^_O)5U< M'3XR^W7"'9FO>VN.D/`"Q3&]\&2EA:+F5)69E\+)2KO^1VE>U[,V&N-6 M6QQ0D#:$*L)[#<@\9.Z-;KK5L<:6J#GS=NR&=E6A5#]KM[)HLAP7J*'J*UD) M91=C.-J?C?P@'+P6`T4,1_L+SDG#;JR"\>V<_`902P,$%`````@`(94.1\#Q M2Z=E!```*!$```\```!X;"]W;W)K8F]O:RYX;6R5EUUSVR@4AO\*HZOT(FOK MRTT\=6>V27ZPK9>=F$>V<:^:3B2UVHN;V-]T(1=\VVM3RL=$SS;Z&9ALC>&EW0KBZZF$UERKZ^,'.-[(2WX6Q M!&:\:6YX+1;18Q6QBEOWN91.E(LHHT?](`8O3-M\:F7E'_)I'DT\;-_5.\,* M78H>MMI)^_?SAXB58L/;RJVHL?MZ%U&<9$DRZQG^M^]2/%@$^A>,%T[>BQ5? M+Z)IQ'CK]!^R5\#V9O.A*%_Y?=TQUP=D/,>.J9)^5(PJ[4OW@46A\&^CGJ[*KV,PEW9BK M,NY#A:`+K4JAK"@9W5E=R9*B4K)/O.*J$`Q`"8"2MX)2`*4`2E\-6CJZ4)'G"MU3Z5(1H&%SJ#0V6&AI2A:0Y&X MEDKT0:`GZ0!P#H#S0\"-=E3PCC]Q4I4YS;[ZS$+$.V[<$RHW1>>F@::T:VU* MJ;K2-$SW?K)X:%\%H@;Z!OS=]VK0.`2@MG'`VVNMMJLM]X91 M:!TE-Z&*H2DQ>AH'1'V.P6D7`[:B!EF?15_T!2V-`YHNQ;:S^TAB0E_C@+#? ME*&EP\C"C\8-O?[=6DJ%B$!CXX"R5ZK0M6`K_CCH?X*")@%!1V=\$B,*!4T" M@HZC$D0-,FQ`59CV[&3EY;#OL#P*F@0$#HFKU,W&"AT.'F]PWL6HM#E).#RJ$CI%!=8U#M]J]XI MZIVBWFE`[_$E#4U(4>_T?_0^94O:EY8M^4D-[+X@:K"%&#']Q5K'3BZ%XQ*E M2E'U-*#Z^*HWZ""JG@94'UWVTAFB4/4TH'IX*E/4VKKF!I>M%%5/@ZJ/H-(S M1*'M:<#VT;20GB,*;4\#MH^B,K0]0]NS@.WC*+0]0]NSD.VC*$SF&=J>A?;+ M1_->YSZBT/8L:/N+/<\MNN#&(&FR9@WOFD1T$.T$4VIX%;!_+QM0\1*'M MV=L2NP\6HM#V[)6)'9(-HM#V["VY_2#)9&A[%K#]&.J4=:L'T/)]C?QU=Z?1.F;CT!WO;54,GX\*?]NG2[]*SW&_F M_/,775+=_IA.)_*VJB[HW:VZUKP[S/;D_?G^X[]02P,$%`````@`(94.1\*RL+>A=MTY-7%O![UV'V[TA:.NY#$#XWWII;+=1&5!;1S+LT M'>EY0_N`D>L^/(#="20*HA&_&S)R:QZHRY\I?5>+GY=]&*L[D)940IG`!>"ZP!%:=.@2.-D(Y!9`'@^0IB--3]STQ$-/-#W1]-09`!N1N052 MCT!JT3=+@=X(&$2J$3G(`5IQ(_.H9);*UNF&CF+"`KJ;+U M2&QMOC-7C@O(2K+D'HG4K%M(7,7U0*S65'Q%BZP+6Q= MB76:,.D4T0P`@%:"!CPU?`#0ULK='MD8&*^H^`H9(-L"<*L83&8P<$7%5^_` M+F>(G`4Y8=+)ER]9$%D]MB/LIM\>'E3TW@O33.?=^7T[0-VC/^%E,>`;^879 MK>EY<*9"=GK=JZ^4"B*O$;_(QE#+%WA>M.0JU'0CY\R\268AZ/!\8N=WOOP/ M4$L#!!0````(`"&5#D?4BI^%.P0``.04```8````>&PO=V]R:W-H965T&ULC9C+CN,V$$5_Q?`^(U85'U+#;6#:09`L`@QFD:S5-MTV1K(\ MDKH]^?OH9:<8L)ALK(=OL2Y)Z;#$S:UIOW4G[_O5C[JZ=,_K4]]?G[*LVY]\ M77:?FJN_#/\UY#>O[C:_GMU,_WLBVF^P1=SC7_M*=F\NJ]Q\-9I_;9IOX\5OA^>U&CWXRN_[L8ER.'SXG:^JL:4A\_>E MT7]RCH'\_-[Z+U-W!_NO9>=W3?7G^="?!K=JO3KX8_E>]5^;VZ]^Z8,9&]PW M53?]KO;O7=_4]Y#UJBY_S,?S93K>YG]RM83%`W`)P$<`Z&0`+0'TKX!L=C;U MZ^>R+[>;MKFMVGDRKN4XY_!$P\CM5T-GNO7XUS1QN,I$4]3O)[C76CQ,G=BEKA)`@A&J9AL M%\BT`28+W.B$&\W=Y%$WL\1,$M(%6L$.UVG*M9'\F(0?P_T443^&Y0&;DQ+\ MYY*A(."JX(XHZ*OAS89TT7UQ&((_/ MB%^96(K[T5$_BV;IN1MG3+`4*O/!NQ5=)3D*C&$D,!!2$`3D_;+Q?B$?Z&%" M)8Z%0C!6?#<@!5;@9*4X61?-`BEE19B%PF&*\Q5T,*M&)$@H M=#8Q^RG$`FH MCD,47)!*&XFBB]`M8PE$HJ<41X,=!"AR0!C5*E@(=%+*C%$>!@U3'00H! M28T$]D4VCY$1GUE,<10Y1W6@4R0+'HQA3N,,!=',$8X$YI<82"^M,JV5&*BLBI M:.(`QJ"V-%I+CKA.YXG:$E-01`Y%$P?UHG'WM1/$(B-4%J!))E$*C,C!:##> M`J581HJ]RX:$%E*,(LXH$ZE"1RD^$:\'39R:Q,L\&#]7I14C MK0Q=)3^U.?-,O$JEH-`S('H*=5KD.*702!R-1OCZY\C["8:"RCK)5"BUJ)WX M^E,*D,0!:>*`)!,D&YX5<6,B4&IKQ*684I0D3DD3I^2BN2_%B8^G4!G_>,K8 M?M2U?/._E^W;^=*M7IN^;^II<^K8-+T?VE.?ADZ>?'EX7%3^V(^G;CAOYTVX M^:)OKO<]Q&PO M=V]R:W-H965T&ULC97+CML@%(9?Q?(##,;7)'(L-:FJ=E%I M-(MV36P<6X.-"R2>OGVY."X>,6BR"+?_/WP'DD,Y4_;*.XQ%\#:0D1_#3HCI M``"O.SP@_D0G/,J5EK(!"3ED5\`GAE&C30,!<13E8$#]&%:EGGMF54EO@O0C M?F8!OPT#8G]/F-#Y&,+P,?'27SNA)D!5@M77]`,>>4_'@.'V&'Z!AS/4$JWX MU>.96_U`P5\H?56#'\TQC!0#)K@6*@22S1V?,2$JDMSYSQ+T_Y[*:/6<`ADSG]14)5)6,S@$SES$A=>?PD,B3 MJP.9#`_5DCXNI:C*>Y5');BK.!O)R4AB+8E=BO-&D:T2(/=?(6(/1*S]B8&` M;G_B\2?:GQK_.\31)&$DA99`E^+L5FP84@]#:C,D;G_F\6>V/W7F8"29(8S, MQYF*5[@ARCU$N4V4.8ER:Z,X+O(/>#RR#4WAH2ELFMQ)4WR.QB/;T.P\-#N; MIG#[]Q[_WO;OG-GL+X89(E;6/*T%D,^V=3(MF^67%.80P29Q0?N66 MREN?H$55.`_@M&@^0^55&BI@%=`)7?%/Q*[]R(,+%;(6ZVK:4BJPC!<]R7]: M)]_(=4!P*U2WD'UF7@TS$'1Z/(+K2US]`U!+`P04````"``AE0Y'5E*%[Q?+)KUMBCSYJXZ%H?N/R]57>9M][-^733' MNL@W0U"Y7Z`0T:+,=X?Y:CE<^UZOEM5;N]\=BN_UK'DKR[S^[ZG85Z>'.V0@_MD5IX9\G_63?ZZJ M7_V/OS8/<]'/H=@7Z[9/D7D'V/V@?3[.?L?@]QN^L]Y M4R35_N=NTVZ[V8KY;%.\Y&_[]D=U^K.8-.@^X;K:-\/?V?JM::OR'#*?E?GO M\7-W&#Y/XW^,F,+\`3@%X"7@,HX_0$X!\B-`!0/4%*!N'4%/`?IJA,6H?:A< MFK?Y:EE7IUD]WNYCWJ\JN-?=O5G/NG(U\_Y?PPWIB=7R?17#YW&0IQ'! M$4$?DE+D(\FB&_\R">0G\80DW#M`0HE8>N?P99*,2>),4P9J)8=X.<8K?[P* MQ*LA7HWQVIWB8:S$B,0#8C!21@@?EU#.BMBBGTLI!UK$"'XP<\!81-H2T%&H M`PHU51AY%8Z('@?"B)EXXF!1I!E]%$-I%:..8E)(Y+1%`6T1U19[M45D&`/2 M1(PXA[.`,:..A8:N*&6X)94X7&P%LU-3RBEMNH7L%T@Y#6"! MTV<#^BQY0ADFOG=/W@X$J9`!;X4FYKPL=J`G>/P*AVP2\?N:`B9,DBJ4OE5RNOUY==(,6E8A13[ MIJQ@%3H@&M"LPE#;`(KN:LUD"-DR4%\V?E^>F+$#4((QW`2HE1KNH>(TY`6J0FC&M#%P;E>QT0B8*U$6-WT4G9BS/-]!LFP?4 M]KX!ZT:IFU$*R_5Y;D;9.0VK,F2D0)W4^)T4C#-Y4,P^2:[`6+,J';![,#*K M-'-!B8I7&;)3L$2E]0[U-#%3Y8UF;<+AH+<31J2EC.9 MA4E7::C50-IJ6'^K@?'-2F\ETYO)+$R.2A?DP+(LZM?AJ+B9K:NW0SMVO9>K ME^/H1^P//*^N/\%]`I[K*=QGXV'S1_K5\IB_%G_G]>ONT,R>J[:MRN&@]*6J MVJ*;NKCKUN*VR#>7'_OBI>V_QMWW>CQR'G^TU?%\@GXYQE_]#U!+`P04```` M"``AE0Y'HO7-P2\$```3%```&````'AL+W=O8S>',W[<_NHG4?_*JKIGL)+WU_?8ZB[G#1==%],5?=#/^< M3%L7_7#9GJ/NVNKB.#6JJPCB.(GJHFS"[6:Z][W=;LRMK\I&?V^#[E;71?O? M3E?F_A**\''C1WF^]..-:+N)UG;'LM9-5YHF:/7I)7P5SWM,1LFD^+O4]\XZ M#T;S;\;\'"_^/+Z$\>A!5_K0CR&*X?"N][JJQDA#YG^7H!\YQX;V^2/ZUZG< MP?Y;T>F]J?XIC_UE`I0&L#=8\[@:X-,"/!G*J='8VU?5'T1?;36ON03L/ MQK48QUP\X]!SAV`HI@O'OZ;N&A7;S?LVSS?1^QB'2':S!":)6!71$'S-`'R& M'5C-P95@;RM2=&=`3PTXM.RFQ(YUV M4BO/TP`;MQNB2H$SDWG,9,2,G);LG4`F6(=^6@DT'*$SDR[1?,8TCC/.4M$*"6RDTSX`"=LPJ$; M!XMF284IVTNV3JJ<->0#G%"VH=1M2)%G/4\5YX@(E5#\P/F8*6QH(C.[;1IF M@NTC6Y8(P7>2CYJ"8I.9W#81):3(64KI\`H>(SYXBLS&B.!"^)`G"/.$>[E= M1,LZBIBS74WH"%*F7%W@PR/$Q!0X*4<@D M:\J'40`RK)()X>,>(*G+O:X"X5F6<:L#?`(DL-P#'_>`O-D)Y_*Z`QMH*HY9 M3[9.Q#&_X(,/?:"()S?[@"(-V+>S3T+)OV^"CWU`7AB%&WZ0D+G&3DDJXPWY MV`>$?<+-/B!,&YY:P5FRA2CSC/7D8Q^0-T=P+^U@OQ1RRSH1/8F,GTD^D`(! M*;A!"I2/R'VW?-(E*;MFH8^C2#@*3H[ND'!4*F[8B`Y!LL.&/N`B`2ZX@8LV M1X>^Y-XUT`:S2OA.\M$6"6V!H2UZOWD);<%-6[0IBGSO^1"*!*'@1BC::`2, MN7F/]M/X'(BLO99:M^=I#ZH+ M#N;6]/.&QGIWW>=ZA7&OYM/]G7C>S[M5'V&VFVMQUG\5[;ELNN#-]+VII[V< MDS&]'OS%7X9^N.CBN%Y4^M2/I^EPWLY[5O-%;ZZ/+;AU'W#[/U!+`P04```` M"``AE0Y'FH]A?J(!``"Q`P``&````'AL+W=O%S9G9VEZQFM"]N`/#D32OCMG3P?MPPYIH!M'`W.(()-QU:+7S8VIZYT8)H M$TDKQHOB"]-"&EI7Z>S)UA5.7DD#3Y:X26MA_^Y`X;RE*WHZ>);]X.,!JRNV M\%JIP3B)AECHMO1^M=FM(R(!?DN8W=F:1.][Q)>X^=EN:1$M@(+&1P41I@,\ M@%)1*`1^/6J^AXS$\_5)_3%E&]SOA8,'5']DZX=@MJ"DA4Y,RC_C_`..*=Q& MP0:52R-I)N=1GRB4:/&69VG2/.>;N_)(NTS@1P)?"%^+9#P'2C:_"R_JRN), M;"[M*&('5QL>"M&0X,W1>)6RCXBZ.M0K_JUBARCT`;/+&)XQ"X(%]24$_W^( M'3^C\\OT\HK#,M'+'+TL+@NLKPBLD\#Z:HH?,.7G)-E93378/CT=1QJX74UBAY^"=M+X\@>?>ALZDV'Z"&8*&YN*1G"_UDV"CH?EW=A M;?.3RAN/X^F#++^T_@=02P,$%`````@`(94.1P.6;;RA`0``L0,``!@```!X M;"]W;W)KGY`A/ MAMA9:V'^'D#ALJ>93^XD&!UQ39>*S6,5N)(#'1[^I#O#F5`1,`O"8N] M6)/@_8CX$H(?[9YFP0(H:%Q0$'XZP2,H%81\X3^KYEO)0+QL5,0>HG'#81'IQ>JPN"Y0WA`HHT!Y ML\7WF/)#$79QIAI,'Y^.)0W.HTN'MV6WU_G`XYV\P>MJ$CW\%*:7HR5'=/YF MX]UTB`Z\B>SNGI+!_Y\M4-"YL/SLUR8]J10XG,X?9/NE]3]02P,$%`````@` M(94.1_WM1H>D`0``KP,``!@```!X;"]W;W)K98FS=.\4_`S[3J!GPE\(7S.DO&Y4++Y57A1E18G8N>C M'42\P7S'PT'4)'AS-&ZE[B.B*D\5_U*R4]3Y"W*8(3Q!\@7!@OA2@?^_PH&O MZ/PZO;AAL$CT8JY>;*\+;&X(;)+`YE:':TA>W/]3@ZU.5(/MTL-QI,;1^/GH MENSR-A_2%;(/>%4.HH,?PG;2.')$'^XUW4R+Z"&8R.ZVE/3A]RR!@M;'Y:>P MMO.#F@./P^5[+'^T^@-02P,$%`````@`(94.1[:E=6"A`0``L0,``!@```!X M;"]W;W)K-'$M-JZI] M6*GJP^XSL<<.<.E&-&^NP[`DT^MC-O2SOM^ MPYBK.M#"76$/)NPT:+7P(;0M<[T%42>25HQGV0W30AI:%BGW:LL"!Z^D@5=+ MW*"UL']VH'#$T9VL M2?2^1WR/P4N]I5FT``HJ'Q5$F`[P`$I%H5#XXZCY53(23]>S^E/J-KC?"PQ!M<;7@XB(H$;X[&K=1]1)3%H5SE MMP4[1*%OF-V$X1-F0;"@OI3@_R^QXR=T?IZ>7W"8)WI^='AW7F!]06"=!-87 M6_R.^?%/$79RIAILFYZ.(Q4.QD^'MV27UWG/TYU\PU!1X[.&UL M?5/;3N,P$/T5RQ^`DS2PJRJ-1%DA>$!"/.P^N\DDL;`]P78:]N_7ES24%?3% M]HS/.7/&EVI&\VH'`$?>E=1V1P?GQBUCMAE`<7N%(VB_TZ%1W/G0],R.!G@; M24JR(LMNF.)"T[J*N6=35S@Y*30\&V(GI;CYNP>)\X[F])1X$?W@0H+5%5MY MK5"@K4!-#'0[>IMO]V5`1,!O`;,]6Y/@_8#X&H+'=D>S8`$D-"XH<#\=X0ZD M#$*^\-NB^5$R$,_7)_7[V*UW?^`6[E#^$:T;O-F,DA8Z/DGW@O,#+"U+[$OOB MC%Y\3=]<<+B)],WB\)OZY06!,@J4%UO\C/G?)3L[4P6FCT_'D@8G[=+AK=GU M==X6\4X^X'4U\AZ>N.F%MN2`SM]LO)L.T8$WD5U=4S+X_[,&$CH7EC_\VJ0G ME0*'X^F#K+^T_@=02P,$%`````@`(94.1X<48;ZA`0``L0,``!D```!X;"]W M;W)K&UL?5/+;MLP$/P5@A\0RK2<%H8L($Y1M(<" M00[MF996$A&2JY*4E?Y]^;`5.TU](;G+F=E9/JH9[8L;`#QYU, MN68`+=P=CF#"3H=6"Q]"VS,W6A!M(FG%>%'<,RVDH765TB!9`0>.C@@C3$1Y!J2@4"O\^:;Z5C,3+]5G]:^HVN#\(!X^H M?LG6#\%L04D+G9B4?\;Y&YQ:V$3!!I5+(VDFYU&?*91H\9IG:=(\YYW-_8GV M,8&?"'PA?"Z2\5PHV?PBO*@KBS.Q^6A'$6]PM>7A(!H2O#D:MU+W$5%7QWI5 MKBMVC$)7F'W&\(Q9$"RH+R7X_TOL^06=?TQ?WW"X3O3U/PZO!,H;`F42*&^V M>(TIWQ5A%V>JP?;IZ3C2X&1\/KPEN[S.!Y[NY`U>5Z/HX8>PO32.'-"'FTUW MTR%Z"":*NPTE0_@_2Z"@\W'Y*:QM?E(Y\#B>/\CR2^N_4$L#!!0````(`"&5 M#D>TMQ>KH0$``+$#```9````>&PO=V]R:W-H965T0%F M..?,&2[EA.;5]@".O"FI[8[VS@U;QFS=@^+V!@?0?J=%H[CSH>F8'0SP)I*4 M9'F6W3+%A:95&7//IBIQ=%)H>#;$CDIQ\W\/$J<=7=%3XD5TO0L)5I5LX35" M@;8"-3'0[NC#:KLO`B("_@B8[-F:!.\'Q-<0_&IV-`L60$+M@@+WTQ$>0@X3VFGR&;:94(^$_*%W` MPPVNMKD_B)IX;Y:&K=A]0%3EL5H5FY(=@]`GS#YA\H19$,RK+R7R[TOL\S-Z M?IF^ON)P'>GKV>'M98'BBD`1!8JK+7[&W'TIPL[.5('IXM.QI,91NW1X2W9Y MG0]YO),/>%4.O(/?W'1"6W)`YV\VWDV+Z,";R&XVE/3^_RR!A-:%Y9U?F_2D M4N!P.'V0Y9=6[U!+`P04````"``AE0Y'P4`IO*,!``"Q`P``&0```'AL+W=O MYK3<^)9=KV/"5:5;.4U4H-Q$@VQT.[I0[X[%!&1`+\D3.YB3:+W M(^)+#'XT>YI%"Z"@]E%!A.D$CZ!4%`J%_RR:;R4C\7)]5O^6N@WNC\+!(ZK? MLO%],)M1TD`K1N6?@\ZC.%$BU>YUF:-$_SSB9?:-<) M?"'PE7"?)>-SH63SJ_"B*BU.Q,Y'.XAX@_F.AX.H2?#F:-Q*W4=$59ZJO+@O MV2D*O<,<9@R?,2N"!?6U!/]_B0._H//K],T-AYM$WRP.OUP7*&X(%$F@N-GB M.\PV^U"$79RI!MNEI^-(C:/Q\^&MV?5U/O!T)V_PJAQ$!S^%[:1QY(@^W&RZ MFQ;10S"1W6TIZ%(0N(4P3IH4"00WNFI95$A.2J)&6E?U\^9,4)$E]( M[G)F=I:/:D;S8@<`1UZ5U'9/!^?&'6.V&4!Q>X,C:+_3H5'<^=#TS(X&>!M) M2K(BR[XQQ86F=15S3Z:N<')2:'@RQ$Y*YH%"R"A<4&!^^D$]R!E M$/*%_RZ:;R4#\7)]5G^(W7KW1V[A'N4?T;K!F\TH::'CDW3/.#_"TL(V"#8H M;1Q),UF'ZDRA1/'7-`L=YSGME+<+[7-"L1"*E?`]B\93H6CS!W>\K@S.Q*2C M'7FXP7Q7^(-HB/=F:=B*W0=$79WJ?)M7[!2$WF$."5,DS(I@7GTM47Q=XE!< MT(O/Z>45AV6DEXO#+P0V5P0V46!SM<7WF/)#$79QI@I,'Y^.)0U.VJ7#6[/K MZ[PKXIV\P>MJY#W\XJ87VI(C.G^S\6XZ1`?>1':SI63P_V<-)'0N+&_]VJ0G ME0*'X_F#K+^T_@]02P,$%`````@`(94.1XN0I&UL?5/;;N,@$/T5Q`<4ASC=*G(L-5VMM@\K M57W8?2;VV$8%Q@LX[O[]`G;\`#.<<^8,EV)$^^(Z`$]>M3)N1SOO^RUC MKNI`"W>#/9BPTZ#5PH?0MLSU%D2=2%HQGF6W3`MI:%FDW),M"QR\D@:>+'&# MUL+^VX/"<4=7])1XEFWG8X*5!5MXM=1@G$1#+#0[>K_:[O.(2(#?$D9WMB;1 M^P'Q)0:/]8YFT0(HJ'Q4$&$ZP@,H%85"X;^SYEO)2#Q?G]1_I&Z#^X-P\(#J MCZQ]%\QFE-30B$'Y9QQ_PMS")@I6J%P:234XC_I$H42+UVF6)LWCO',WTSXG M\)G`%\)=EHQ/A9+-[\*+LK`X$CL=;2_B#:ZV/!Q$18(W1^-6ZCXBRN)8KC9Y MP8Y1Z`*SGS!\PBP(%M27$OSK$GM^1N>?T]=7'*X3??W!X85`?D4@3P+YU18O M,9MW1=C9F6JP;7HZCE0X&#\=WI)=7N<]3W?R!B^+7K3P2]A6&D<.Z,/-IKMI M$#T$$]G-AI(N_)\E4-#XN/P6UG9Z4E/@L3]]D.67EO\!4$L#!!0````(`"&5 M#D?-(:QKH@$``+$#```9````>&PO=V]R:W-H965TV;ZP$\>=?*N#WMO1]VC+FZ!RW<'0Y@PDZ+5@L?0MLQ-U@032)I MQ7A1W#,MI*%5F7(OMBIQ]$H:>+'$C5H+^^<`"J<]7=%SXE5VO8\)5I5LX352 M@W$2#;'0[NG3:G?81$0"_)0PN8LUB=Z/B&\Q^-[L:1$M@(+:1P41IA,\@U)1 M*!3^/6M^E(S$R_59_6OJ-K@_"@?/J'[)QO?!;$%)`ZT8E7_%Z1O,+6RC8(W* MI9'4H_.HSQ1*M'C/LS1IGO+.EL^TZP0^$_A">"R2\5PHV?PBO*A*BQ.Q^6@' M$6]PM>/A(&H2O#D:MU+W$5&5IVJUO2_9*0I]PAPRAF?,@F!!?2G!_U_BP"_H M_#I]?)GS.,_1=C%F6JP77HZCM0X&I\/;\DN MK_,I72+[@%?E(#KX(6PGC2-'].%FT]VTB!Z"B>)N2TD?_L\2*&A]7#Z$MA_,'67YI]1=02P,$%`````@`(94.1\.\W,BB`0``L0,``!D```!X;"]W M;W)K&UL?5/+;MLP$/P5@A\0RO2CJ2$+B!,4[:%` MD$-[IJ651(3D*B1EI7]?/FS%*5Q?^)R9G=TERPGMJ^L!/'G7RK@=[;T?MHRY MN@3YD?(2+QGVC7 M"?Q$X#/AODC&DX4N-H?"[>?#J_S@>>>O(!K\I!=/!3V$X:1P[H0V=3 M;UI$#\%$<;>FI`__9]XH:'UMTKP` M,YQSY@R78D3[ZCH`3]ZU,FY+.^_[#6.NZD`+=X4]F+#3H-7"A]"VS/461)U( M6C&>93=,"VEH6:3=C@I4%6WBU MU&"<1$,L-%MZN]KL\HA(@#\21G>R)M'['O$U!D_UEF;1`BBH?%0083K`'2@5 MA4+AMUGSHV0DGJZ/Z@^IV^!^+QS86[B.@A4J MET92#)]FJ5)\SCM\%\S[3R!SP2^$'YFR?A4*-F\%UZ4A<61V.EH M>Q%O<+7AX2`J$KPY&K=2]Q%1%H=R=<,+=HA"GS"["<,GS()@07TIP;\OL>,G M='Z>OK[@<)WHZ]GA^KQ`?D$@3P+YQ18_8_(O1=C)F6JP;7HZCE0X&#\=WI)= M7N\"+L6H0$``+$#```9````>&PO M=V]R:W-H965TU# MI:H/N\_$'E]48%S`.W;SH4$*PLV\^I>@;8]:F*@V=+;Q6:7!T0$_.IALF=K M$KSO$=]"\%1O:18L@(3*!07AIP/<@91!R!=^/VI^E@S$\_5)_2%VZ]WOA84[ ME+_[VG7>;$9)#8T8I7O%Z1&.+:R"8(72QI%4HW6H3A1*E/A(8]99?VGY%U!+`P04````"``A ME0Y'D:@]W*(!``"Q`P``&0```'AL+W=O93=,<:%I5<;]"@E4E6WB- M4*"M0$T,M%MZO]KLU@$1`:\")GNR)L'['O$M!$_-EF;!`DBH75#@?CK``T@9 MA'SAO[/F9\E`/%T?U7_%;KW[/;?P@/*/:%SOS6:4--#R4;H7G!YA;N$Z"-8H M;1Q)/5J'ZDBA1/'W-`L=YRGM%,5,.T_(9T*^$.ZR:#P5BC9_KTN!$3#K: M@8<;7&UR?Q`U\=XL#5NQ^X"HRD.UNKDMV2$(?<'L$B9/F`7!O/I2(O]_B5U^ M0L_/TXL+#HM(+V:'=^<%UA<$UE%@?;'%KY@?WXJPDS-58+KX="RI<=0N'=Z2 M75[G?1[OY!->E0/OX#O]_ED!"Z\+RUJ]- M>E(I<#@TD6=,?P(``"(*```9````>&PO M=V]R:W-H965TG!GOB%1+?HG$P"DY&:.NC7`<;Z*.-'U8%F;OC9<%N\JV MZ>D;#\2UZPC_=Z`M&WU%P_J`T_,NW*/M`<<: M8A"_&SJ*Q7.@G3\R]J$7/T^[,-8^T)964E,0=;O15]JVFDDI_[V3?FEJP^7S M@_V[.:YR_T@$?67MG^8D:^5M'`8G>B;75KZS\0>]GV&M"2O6"G,-JJN0K'N8 MA$%'/J=[TYO[.+W)XKN9W0#?#?"3030)&3>_$4G*@K,QX-.W'8@.(=IB]2&J M0/DF0OW*G%XCRN)6HC0NHILF`IC#A,$39D9$BGV6P&Z)`UZ88[MYXO$P,>;) MI)[$=H*5AV!E"%;W(R+K$2'&X>7:([(&!(E5!&)6=I&-1V0#"-96$8C9V$52 MCT@*"%*K",1D=I',(Y(!@MPJ`C"9(_"Y1R0'!/;`0XPC\+JZW144`PI[Z)]` MCM@C;Z4B0&&/_A/($7[D*=<]P@L*;`\-P*`L=;K`0@4>.Y(-PARI9NO#2!0X[DCW2#( ME6Z^3H!`F>>.[P9!CH:#?,T`@4K/'7F]!*GYQ?&S\[4#'`,*>]=Y`CWG0;3X MAW>47\RH(H**77LY_:SGW7DK'5#WS:829%I(-CXEL'@O+_U!+`P04````"``AE0Y' MJA>7%:,!``"Q`P``&0```'AL+W=O6B?67MLHX#'!;Q._SYYI[]RX8\S6/6AA;W"$P=^T:+1PWC0=LZ,!T4225HQG MV3>FA1QH54;?DZE*G)R2`SP98B>MA?EW`(7SGF[HV?$LN]X%!ZM*MO(:J6&P M$@=BH-W3N\WN4`1$!/R6,-N+,PFY'Q%?@O'0[&D64@`%M0L*PF\GN`>E@I`/ M_'?1?`\9B)?GL_K/6*W/_B@LW*/Z(QO7^V0S2AIHQ:3<,\Z_8"EA&P1K5#:N MI)ZL0WVF4*+%:]KE$/H#HBI/%<_RDIV"T`?,(6%XQ&Q6!//J:PC^_Q`'?D'GU^GY M%QGFD9ZGZ'EV7:#X0J"(`L528G&UQ(^8[:<@[**G&DP7GXXE-4Z#2\U;O>OK MO.-Q)N_PJAQ%!X_"='*PY(C.3S;.ID5TX)/(;K:4]/[_K(:"UH7C=W\VZ4DE MP^%X_B#K+ZW>`%!+`P04````"``AE0Y'P!7QH:4!``"Q`P``&0```'AL+W=O M+X^J?^*V7KW!V'A'M6+ MK%WGS6:4U-"(4;DGG'[#G,(F"%:H;!Q)-5J'^D2A1(OW-,L^SE.ZR?E,NTS@ M,X$OA-LL&D^!HLT'X419&)R(2:4=1.C@:LM](2KBO5D:KF+V`5$6QY)GUP4[ M!J%OF'W"\(A9+0CFU9<0_/\A]OR,SB_3\Q\I^CYYK+`^@>!=118SRG> M7$SQ.^;VGR#LK*8:3!N?CB45CKU+Q5M.E]=Y%YO(ON!E,8@6_@K3RMZ2`SK? MV=B;!M&!-Y%=;2CI_/]9-@H:%Y8W?FW2DTH;A\/I@RR_M/P$4$L#!!0````( M`"&5#D?EY$;_IP$``+$#```9````>&PO=V]R:W-H965TM+!7.,+@;UHT6CAOFH[9T8!H M(DDKQK/LAFDA!UJ5T?=DJA(GI^0`3X;826MAWO:@<-[1G)X=S[+K77"PJF0+ MKY$:!BMQ(`;:';W+M_LB("+@MX39KLXDY'Y`?`G&SV9'LY`"**A=4!!^.\(] M*!6$?."_)\V/D(&X/I_5'V*U/ON#L'"/ZH]L7.^3S2AIH!63XS^FFR$ZTRP1^(O"%\"T26`H4T_PAG*A*@S,Q MJ;6C"!/,M]PWHB8^-TO#5:P^(*KR6/'L>\F.0>@39I\P/&+R!<&\^A*"_S_$ MGJ_H_#)]\T6&FTC?I.C%S66!X@N!(@H4*7Z>72QQC)?7>5#(?C^8,LO[1Z!U!+`P04````"``AE0Y'2,ZLP*\!```6!``` M&0```'AL+W=OL\<+8)DS?OEX(22J:"]Z^[?=".6GS9GL`ASZD4':/ M>^>&'2&V[D$R^Z`'4'ZEU48RYX>F(W8PP)I(DH+0+/M$).,*5V6<>S%5J4@+-<*&6CW^#'?';8!$0&_ M.$SVJH]"]J/6;V'PH]GC+$0``;4+"LPW)W@"(8*0-WZ?-2^6@7C=/ZM_B]7Z M]$=FX4F+W[QQO0^;8=1`RT;A7O7T'>828L):"QN_J!ZMT_),P4BRC]1R%=LI MK13Y3%LGT)E`%\*7+`9/1C'F,W.L*HV>D$E;.[!P@OF.^HVHD<]F<5B*U0=$ M59XJFN@ MB`+%7")=+?$6LUDWV=XQV=X(%*LFMYCM/R;DZN`DF"[>3XMJ/2J73FB979[` M(XT'?X%7Y<`Z^,E,QY5%1^W\]8D7H-7:@0^1/?@4O7^DRT!`ZT+WL^^;=&_3 MP.GA_`J77T'U%U!+`P04````"``AE0Y'`*?E)Z4!``"Q`P``&0```'AL+W=O M2UE4T7M0Z4H M#^TS:X]M%&`=_O&'-5 M!UJX&^S!A)L&K18^;&W+7&]!U(FD%>-9MF5:2$/+(IT]V;+`P2MIX,D2-V@M M[-\#*!SW-*?G@V?9=CX>L+)@"Z^6&HR3:(B%9D_O\]UA'1$)\%O"Z"[6)'H_ M(K[$S<]Z3[-H`114/BJ(,)W@`92*0B'PZZSY'C(2+]=G]<>4;7!_%`X>4/V1 MM>^"V8R2&AHQ*/^,XP^84]A$P0J52R.I!N=1GRF4:/$VS=*D>9QNMM]FVG4" MGPE\(=QER?@4*-G\+KPH"XLCL5-I>Q$[F.]X*$1%@C='XU7*/B+*XE3R?%NP M4Q3Z@#E,&)XP^8)@07T)P3\/<>`7='Z=OOK"X2K15U/TS2<"ZR\$UDE@/:=X M>S7%CYB[_X*PBYIJL&UZ.HY4.!@_%6\Y75[G/4\]>8>712]:^"5L*XTC1_2A MLZDW#:*'8"*[V5#2A?^S;!0T/BYOP]I.3VK:>.S/'V3YI>4_4$L#!!0````( M`"&5#D?\\8Z*I0$``+$#```9````>&PO=V]R:W-H965T`!U1_9^B&8+2AIH1.3\L\X_X1C"M=1 ML$'ETDB:R7G4)PHE6KSF69HTS_EF=7>D72;P(X$OA-LB&<^!DLWOPHNZLC@3 MFTL[BMC!9WW//7D`UY7H^CA4=A>&D?VZ$-G4V\Z1`_!1'%U3O`VE`0``L0,``!D` M``!X;"]W;W)K&UL?5/;;N,@$/T5Q`<4![O=5>18 M:EI5[4.EJ@^[S\0>VZC`N(#C[M\O8,=-5]F^<#WGS)D9*">T;ZX'\.1#*^-V MM/=^V#+FZAZT<%O MI($72]RHM;!_]J!PVM$-/1V\RJ[W\8!5)5MYC=1@G$1#++0[>KO9[HN(2(!? M$B9WMB;1^P'Q+6Z>FAW-H@504/NH(,)TA#M0*@J%P.^+YF?(2#Q?G]0?4K;! M_4$XN$/U6S:^#V8S2AIHQ:C\*TZ/L*1P'05K5"Z-I!Z=1WVB4*+%QSQ+D^9I MOLGY0KM,X`N!KX2?63(^!THV[X4756EQ(G8N[2!B!S=;'@I1D^#-T7B5LH^( MJCQ6G/.2':/0%\Q^QO"$V:P(%M37$/S_(?;\C,XOT_-O'.:)GL_1;_++`L4W M`D42*)84\XLI?L44_P1A9S758+OT=!RI<31^+MYZNK[.V]1$]@FORD%T\"QL M)XTC!_2ALZDW+:*'8"*[NJ:D#_]GW2AH?5S^"&L[/ZEYXW$X?9#UEU9_`5!+ M`P04````"``AE0Y';E41H<`!``![!```&0```'AL+W=OR\JS^1@>-O!BT)Z$(*IOR?@$"3\"Y$[+&[Y/FIZ4C+N=7]6=?K4U_9AJ>)/_3EJ:Q82.,2JC8P,VK M''_`5$+B!`O)M7^B8M!&BBL%(\$^PMAV?AS#2;R?:-L$.A'H3'B(?/!@Y&-^ M9X;EF9(C4N'5]LQ]P=V!VA=1()M-8W?DJW>(/+ODE"89N3BA%>84,-1C=C." M6/79@O[?XD07=+I-CV\DC#T]#NYILBVPOR&P]P+[J<1TL\0UYG[;)+EADJP$ M'C9-UIAOVR;I#9-T*1!'FR9KS-?/11;=(4#5_A)H5,BA,Z$-YMWYGCU2WUV? M\#SK60V_F*K;3J.S-+9'?9=54AJP(:([6VIC_P3S@D-EW/3>SE6X'&%A9'^] MZO/_)O\'4$L#!!0````(`"&5#D=HE=LQ&`(``&8&```9````>&PO=V]R:W-H M965T=VKGR#A%4BWY"8B>8W0P)$H`C*(5H*CMPJHTL5=>E>PL2=OA5QZ(,Z6( M_]UBPH9-&(>7P%M[:J0.@*H$$^_04MR)EG4!Q\=-^!2O7PJ-,(!?+1[$;![H MW/>,O>O%C\,FC'0*F.!::@6DA@^\PX1H(67\9]2\6FKB?'Y1_V:J5=GOD<`[ M1GZW!]FH9*,P..`C.A/YQH;O>"PATX(U(\+\!O592$8OE#"@Z-..;6?&P>X4 MT4CS$^!(@!-A\O$3DI&07`GI(B$=">G_$K*1D-T0@*W=G-PSDJ@J.1L";F^[ M1_JCBM>9NILZ4,3W21=\ M4LN\B6_C M]R95&_?O-XC8Q*K!*,'=5N-:OK3@N"CU--19"2VG`(``&0*```9````>&PO M=V]R:W-H965T96<5.>]&9 MG;WH7FT!9QT:2'@)TH1CL5U#9!"$`:M*CN_+)0?<^T+,B9 M-W6'GZG'SFV+Z-\5;LAUZ4/_UO%2'XY<=@1E$0QQN[K%':M)YU&\7_I/<+&! M"E'$[QI?V>C9D\F_$?(N&S]W2Q_(''"#MUQ*('&[X#5N&JDD1O[3BWZ.*0/' MSS?U[\JN2/\-,;PFS6N]XT>1+?"]'=ZC<\-?R/4'[CTD4G!+&J:NWO;,.&EO M(;[7H@]]KSMUO^HW.>C#[`%A'Q`.`<,X]H"H#X@^`^+)@+@/B%U'2/J`Y&Z$ M0'M7E:L01V5!R=6C>KI/2*XJN$C$W&P]42[FRU=J0B11%I<\G_,T-?P\J+#>GQW];8$A8IW+50PZ?B#-9.9.;:=*T.KFQ0,-J9K<*G3X4 M-ZSZ@MD_E2_8_4P&HRVTQ?2@#B_,VY)SQ_7O?^@=#DA/H=R"[_I7<+&&EOY* M'JC4EOTI7Q8G=,"_$#W4'?/>"!<;O]JZ]X1P+/(&,_'_.HHCW]!H\)[+QTP\ M4WT(T@U.3K&PO=V]R:W-H965TW^W/.:EYTJTN:LVJNRN[*MZB)MN\/ZU6OVM4HW`ZG(/?3]R"O2K'27 MB^'<4[U<5&]MGI7JJ7::MZ)(ZW^7*J\.%RZXQQ,_LM==VY_PE@OOQ-MDA2J; MK"J=6FTOW*]P_HBRAPR(GYDZ-)-]IT_^N:I^]P>KS87K]SFH7+VT?8BTV[RK M*Y7G?:1.^8\.^J'9$Z?[Q^BWPW"[])_31EU5^:]LT^ZZ;'W7V:AM^I:W/ZK# MO=)C"/N`+U7>#/_.RUO35L61XCI%^G?<9N6P/8Q7(M0TGH":@"<"@I40:$(P MER`T09P((*R$4!/"N0J1)D1S"5(3Y%Q"K`GQ7$*B"*-Y;O4/S7:9LN%W5U<.JQ8_=I;PQPWK&Z MX$Y7\HW;7QN:JH^\C$YIAC@,#<4@QSF MEF("#G-',8+#W%-,R&%6%!-QF#7%2`[SC6+8>?Y.,>P\/Q!,Q,[S(\5\S+/7 M%<2I*M!6%3A$$#H"NPHKB@EXE<"F$I`(G]:H'%5&C!PPX(\_7DK8I`21"CFI M>S&50K-0:!,*B1!;+_<4(WF5R*82D0AL-5U'L1DXR3=@8< MYM&$(9G$MDSB:2;29S.))RI?.AGD=1*;3D)TV-&LDTF91!"#,-5)?[>Q&*]/ MM)#5TJ!P``61C"*CF-WE@8@%O!A,Q``A]-F)_J9QNE%$"#SN.\&%4<+#'@@L MZ.Y!QB%:+0NF?O39A(\CQ.D(9??8*TUCQ.D8(Q02C&E9/0Z(R4G6Y-8:I/." M&'TTJEEM#HC/R=`0P^I@0.Q)1ES&=QHTS@_:;!FL1@;$I:3!ILP^%ZTT:$P8$R'-"5M['4FOQY$AAK77D?1ZS-K\ M"J<]!ZPY>9/7I'WZJA[2^C4K&^>Y:KMWKN&=:5M5K>K"^6?=^'&UL?93+CILP&(5?!?$`8["Y M1@2IH:K:1:71+-JU0YR`QF!J.V'Z]O6%4-,"&WSAG./O-]C%R/B[:`B1WD=' M>W'T&RF'`P"B;DB'Q0L;2*_>7!GOL%1#?@-BX`1?C*FC``9!`CK<]GY9F+E7 M7A;L+FG;DU?NB7O78?[[1"@;CW[H/R?>VELC]00H"S#[+FU'>M&RWN/D>O0_ MA8Q=RQ7*D;X^I79+JTHBT<)LZP`#QVTT)RL!EK-FJ):*.)9`A3`3`%W M**#Q(^,/T48`V@E`)B":RLB7D+TMPVI2HTD"J'[G-5GERM(H0(YL@1/MX$0N M3KZZSLEJ8J-!:9YLX+@R&.?1%DZ\@Q,O<,)5G-A9)T&;N^/*P@!%<(LGV>%) M%CQPE2=Q>?)@`\=595&P!9/NP*0+&+0*DSK_1)AD:`O'U<$P3//_@(!S/`=\ M(]\QO[6]\,Y,JI-NSNJ5,4E46O"B-KM1%_`\H.0J=3=5?6[O)#N0;'C>L/,U M7_X!4$L#!!0````(`"&5#D?.M3]+A`(``.P)```9````>&PO=V]R:W-H965T M]&9G;UHKTE"HK,J M%DBR??N"DD0RP.9&0;^?PX$#E!="/UB-,?<^N[9G2[_F?%@$`=O5N$/LA0RX M%W\.A':(BRX]!FR@&.U'4M<&,`S3H$--[U?E^.V-5B4Y\;;I\1OUV*GK$/VW MPBVY+'W@7S^\-\>:RP]!508WWK[I<,\:TGL4'Y;^-[#8@$Q"1L3O!E_8K.W) MX+>$?,C.S_W2#V4,N,4[+B60>)WQ&K>M5!+.?Y7HW5,2Y^VK^O=QN"+\+6)X M3=H_S9[7(MK0]_;X@$XM?R>7'UB-(9&".]*R\>GM3HR3[DKQO0Y]3N^F']^7 MZ4^6*YJ9`!4!W@@@=A(B18CNA-1)B!4A?M8A483D@1!,8Q\S]XHXJDI*+AZ= MIGM`)=#%?_AHG1"*J\ES!(BZ#LQ32,*L)`Q4F,6'6&B:*3)A7 M#6-";#3$W2@0`[F-!CI&`T=^K"+5+?HIB`F2C1"0YE$8AB;<9HZ#`&3%#*?% M$SGBB;1X4K-`[!"(-8',F'H=DYM-$H=)H@D41I,Y)K*E(G68I)H`,)KH&&@V MR1PFF29@7H4Z)C:;Y`Z37!-(C*LLGZV>',2A+6.%PZ?0?%*CSX1)IM4,BCRV M&E_I(&#S<54\T,H9&$M^ M]0"RU#QP%3W0*AI8UH,.>BS[8'9J#NB(?R%Z;'KF;0D7!_!XA!X(X5A(A2\B M-;6X>MTZ+3YPV-5_4$L#!!0````(`"&5#D&PO=V]R:W-H965T.%VB9,_[Y>"($1$QZP?7W./>=ZRRO$ZIX>C[LNJ`8OG$!V!ZIN&"8J6'HO7E(`#7ED2)'P5!ZE/< M,Z_(;>Q%%#D?%>D9O`@D1TJQ^'<&PJ>3%WJWP&O?=LH$_"+W%U[=4V"RYPP) M:$[>";$=\+!5NJ<*M+W@22]$IU^I94"@4::;Z;YP%]<-%!]NS]#R%A;_`5!+`P04````"``A ME0Y'^F(;VN-./KE21I"04W;S><\PNF@2 M:?T0PM0GJ.F\LM!K+ZPLZ%VT38=?&.!W0A#[=\0M'?9>X#T77IM;+=2"7Q;^ MQ+LT!'>\H1U@^+KW#L'N%(0*HA&_&SSPV1BH\&=*W]3DYV7O094!M[@22@+) MVP.?<-LJ)>G\=Q3]\%3$^?BI_EV7*^.?$<%("+]*B$9"-!&"6%=J MDNFZOB&!RH+1`3#S,7JDOGFPB^2;JX`LAGOJD7Y="E$6CS(*\L)_*"$+%+],XKE1")U&\N^$Z3S3 MZG08'/19X'_`RZ)'-_P+L5O3<7"F0K9%W=BNE`HL4\"-W`JU/*ZF28NO0@TS M.6:F@9N)H/WS/)H.Q?(_4$L#!!0````(`"&5#D?>."LZ[@$``.P%```9```` M>&PO=V]R:W-H965T'2#9P\28;0I3SSF@GCVZC M5'\`0)8-85@^\9YT>J7F@F&EA^(,9"\(KJR)40`]+P(,MYV;9W;N1>09ORC: M=N1%./+"&!9_GPGEP]'UW=O$:WMNE)D`>09F7]4RTLF6=XX@]=']XA^*Q"BL MX%=+!KGH.X;]Q/F;&?RHCJYG$`@EI3()6#=74A!*39#>^,^4^7]+8USV;^G? M;+6:_H0E*3C]W5:JT;">ZU2DQA>J7OGPG4PEA":PY%3:KU->I.+L9G$=AM_' MMNUL.XPKL3?9M@UP,L#9X`>[!C09T`<#&,EL75^QPGDF^."(\2YZ;*[E*U:ZU$=HH5L!H1T@M`)"FT#H02#T*%"P`Q2L@(+M M@'`G(%P%W+FC:"<@>N".HD6I$`7IO2-9Z0*(HGM'$N\`Q2N@:#L@V0E('J@H M69#Z,-6@VQ6M=$&2QI\J`HL?L\=G\A.+<]M)Y\25_L?M7UISKHA.\Y[T;37Z MZ9T'E-3*=&/=%^-K-`X4[V]OZ_S`Y_\`4$L#!!0````(`"&5#D>/L%\54`(` M`'`(```9````>&PO=V]R:W-H965T'.`$M8&H[R?;MZP_"XI6-<@FV^4W(R1FT#$(0I M:$G=Q45NSEYYD;.K;.J.OO)(7-N6\'][VK#[-D[BQ\%;?:FD/@!%#D:[4]W2 M3M2LBS@];^-=LCDD2".&^%W3NYBL(RW^R-B[WOP\;6.H-="&EE*[(.IQHP?: M--J3NOGOX/3S3FTX73^\?S?A*OE'(NB!-7_JDZR46AA')WHFUT:^L?L/.L2P MU`Y+U@CS&Y57(5G[,(FCEGS89]V9Y]V^6<'!S&^`!@,T&B3IK`$>#/`7`V"5 MF;B^$4F*G+-[Q.W'Z(G^YLD&J\R5D0I&Q/J529,L@P MB8\X3`F,5R,#E()1!@K+V*.)`^2]PB&6_AOP3*#8V"\&B0$'BQD'"\?!VA79 MV3`LD]E,(0RACSJ$*4?,4K^#]8R#]1,%MYZD#`<+ M+DPY8G37"S<*^$3)?8$6_F81@EPQLUTK>:+L!LB&O8:K+)"=.BW4C6/^;[^">C^`]02P,$ M%`````@`(94.1SQTVXR>`0``R@,``!D```!X;"]W;W)K&UL?5/;3N,P$/T5RQ^`I!NIU6:4&M2_6! MF%X#;0))<)(ER2T1E$EE.EK.)+QH9(Y"4/VU`ZZ&+4[Q>>&5'3KK M%TA5DHG7,`'2,"61AG:+[]/-KO"(`/C/8#`7,?*U[Y5Z]\G?9HL37P)PJ*U7 MH&XZP0-P[H6<\<>H^6/IB9?Q6?TI=.NJWU,##XJ_L<9VKM@$HP9:>N3V50W/ M,+:P\H*UXB9\47TT5HDS!2-!/^/,9)B'N+-.1MHR(1L)V41(LU!X-`IE/E)+ MJU*K`>EXM#WU-YAN,G<0-7*U&>RW0O<>496G*B]6)3EYH1EF%S'9B+F=,,3I M3R;9%9,L"!2CP-W<1$:3B$F3`$J3,):=\BM.^B47SJM6?8HK/L7, MY\_BL'06A_> MN5C'?RTF5O7GES,]W^H;4$L#!!0````(`"&5#D>7#:'[\0$``/(%```9```` M>&PO=V]R:W-H965TI0 M5>VBTF@6[=H!$]#8F-I.F+Y]?4FH&1&:#;[]__%W?+"+B8LWV1&B@G=&!WD( M.Z7&/0"R[@C#\HF/9-`K+1<,*ST4)R!'07!C38P"&$498+@?PK*P)E[[4Z?,!"@+,/N:GI%!]GP(!&D/X>=X7^5& M804_>S))KQ\8]B/G;V;PO3F$D4$@E-3*1,"ZN9"*4&H"Z8U_7V/^V](8_?XM M^E>;K:8_8DDJ3G_UC>HT;!0GQF:I7/GTCUQ12$[#F5-IO4)^EXNQF"0.& MWUW;#[:=W,HNNMK6#?!J@+,A3C8-Z&I`'PS`D=F\OF"%RT+P*1"N%B,V)8_W M2)]<'>AD9&B6['$915E<2I3&!;B80`O-L]-`JX%KBFJA2&<)T``S!=R@@-:? M.`J$EGL,CL)I%Z@'0C0+K(!Z[FDWJ@^2Y#=_+Q97&$=MF]A+(-GNR!8;./D#YGFNB_^8H2G MX@$``"0%```9````>&PO=V]R:W-H965T&@M3&U3=B^?7T@!"22&WSZ_YEOC.UT M%/)3-0`:?7'6J6/0:-T?,%9%`YRJ)]%#9U8J(3G59BAKK'H)M'0FSG`4AL^8 MT[8+LM3-O&PO=V]R:W-H965THP'B!Q.W;EQ_'FVBC7CPS\/T,`ZY&M&^N M!_#D72OCMK3W?M@PYIH>M'!W.(`).QU:+7PH[8&YP8)H$TDKQHMBQ;20AM95 M6GNV=85'KZ2!9TO<46MA/W:@<-S2!3TOO,A#[^,"JRLV\UJIP3B)AECHMO3; M8K,K(R(!7B6,[B(GL?<]XELL?K5;6L060$'CHX((X01/H%04"L9_)\U_EI%X MF9_5?Z33AN[WPL$3JC^R]7UHMJ"DA4X/B+HZU>5R5;%3%+K"[#*&3YCUC&%!?S;A7YCP)'`_"3Q&PO=V]R:W-H965TO+X3!E;%F$VSX__.= MX]C'Y4C9&Z\)$<%[U_9\%]9"#-LHXJ>:=)@_TX'T\LN%L@X+.677B`^,X+,V M=6T$XSB+.MST857J=R^L*NE-M$U/7EC`;UV'V=\]:>FX"T'X>/':7&NA7D15 M&T#QBY[,(O8'L`2$FTXE=#1KX8!RKY(Z5O:O+CO`MCE0-IR4FH M$%@^[N1`VE9%DN0_4]`/IC(NQX_HWW2Y,OTCYN1`V]_-6=0RVS@,SN2";ZUX MI>-W,M60JH`GVG+]&YQN7-#N80F##K^;9]/KYVB^%/%D`YH, MZ#]#9#+3=7W%`E! M+,W>:*#60)?B8"G261+)!.8LH"<+J/U(^T$*W0&0)P#2`9*I#&`GV9LRC"8W MD$1N9S=KOOH'4$L#!!0````( M`"&5#D?;]6\EI0$```8$```9````>&PO=V]R:W-H965T0&F&K5YMSV`0Q]2*'O$O7/#@1#;]""9W>@!E%_IM)',^=9VB^M4>GQ*TQ;B`D; M+6S\HN9JG99W"D:2?:21JSB.::4L)MHZ@4X$.A-H"IZ,8LS/S+&Z,GI$)AWM MP,(-Y@?J#Z)!/IO%82GN/B#JZE9O]WE%;D%H@3DE#)TP=,80KS^;T"J2,&4RR=8]BB<>Q<+C/R'+)P+E0F"W M&C)A]A&SWV5Y]F]0\G#'`[O`=V8N7%ETUL[_+O'".ZT=>+%LX]5Z_RCG1D#G M0KGWM4G_:6J<'NZO;G[Z]1]02P,$%`````@`(94.1[7!X5:L`0``M@,``!D` M``!X;"]W;W)K&UL?5/;3N,P$/T5RQ^`4Z?9H"J- M1%DA]F$EQ`,\N\DDL?`E:SL-^_?XDH:"@#S$]OB<,V?&=C5K\V('`(=>I5!V MCP?GQATAMAE`,GNE1U!^I]-&,N>7IB=V-,#:2)*"T"S[123C"M=5C#V8NM*3 M$US!@T%VDI*9_P<0>M[C#3X''GD_N!`@=4567LLE*,NU0@:Z/;[9[`[;@(B` M)PZSO9BCX/VH]4M8_&GW.`L60$#C@@+SPPEN08@@Y!/_6S3?4P;BY?RL?A>K M]>Z/S,*M%L^\=8,WFV'40LM6'U` MU-6ISLNR(J<@]`%S2!@:,9L50;SZFH)^G^)`+^AY47XMD/_@,8\">]3'G+16`FFC_?'HD9/RJ4.KM'UBM[$DR3O M\+H:60]_F>FYLNBHG3_>>$"=U@Z\C^RJP&CPCVA=".A&UL?5/+;L(P$/P5RQ^`\X#2HA"I4%7MH1+BT)Y-LB$6 M=C:U#:%_7]N!%"K$);MKS\R.UT[6H=Z9&L"2HY*-F=/:VG;&F"EJ4-R,L(7& M[52H%;>NU%MF6@V\#"0E61)%#TQQT=`\"VLKG6>XMU(TL-+$[)7B^FEY82VVM?4++,_8P"N%@L8(;(B&:DZ?X]DB]8@`^!30F8N<>.\;Q)TOWLLY MC;P%D%!8K\!=.,`2I/1"KO'W2?.OI2=>YF?UUW!:YW[##2Q1?HG2ULYL1$D) M%=]+N\;N#4Y'F'C!`J4)7U+LC45UIE"B^+&/H@FQZW?&TQ/M-B$Y$9*!$(^# M\;Y1L/G"+<\SC1W1_6A;[F\PGB5N$`5QW@SU6^'T'I%GASR=/F7LX(6N,(L> MDP1,,B"84Q]:)'=:)($^[EL\1K<%TCL"Z95`?-/C->:_2W8QE)9OX8/KK6@, MV:!U\PT3JA`M.*5H-*&D=J]X*"14UJ=3E^O^8OO"8GM^IL._DO\"4$L#!!0` M```(`"&5#D=V&YF)GP(``%T)```9````>&PO=V]R:W-H965T*X M4!FK+S7@<\Z M2+7EIT1<."4'0^J[)`4@3WK2#G%3F[,GWM3L*KMVH$\\$M>^)_S?AG;LMHYA M?#]X;D]GJ0^2IDXFWJ'MZ2!:-D2<'M?Q(USM(-80@_C3TIMPUI$V_\+8J][\ M.JQCH#W0CNZEEB#J\4ZWM.NTDHK\-HI^QM1$=WU7_V'25?9?B*!;UOUM#_*L MW((X.M`CN7;RF=U^TC&'3`ON62?,WVA_%9+U=TH<]>3#/MO!/&_V30E&VCPA M'0GI1)CBS!/02$"?!+Q(P",!?R$D-A53B!V1I*DYNT7<_O1 MRE[$^I6IKT8T]7N#2E0G[UK(PVPL)C48."$2I3Z%2,,A-JE#3^<";%U$,>MA MYXED\R;00I[(\/&8)YX7P`L"V!/(?).#S=1B"H/),@1R`.9P6Q>79RDJ')QG M*%LPE'F&\EE#%I,9#,YQR(\+RW`)0W;R!3NY9Z>8M9,[<2#*JX"?7>[4!Y8@ M12%#Q8*APC-4S@N4"P*E)U#-9E2Z!F6C!3N6:JV3";R@F#+BO+*F1(]\UPYP">I4!C@(O-!WZCQ"-HM(M"-?9@$)?!G!9:U2-,OU'F M$31&R@I8!NH\`L?O&*A?1=#44NN"7N^JTH#$4O."7O>JT'Q>7OL"(/#Y;#T< M!#[0>DJ<(=13?C+37$1[=AVD[>+3Z71C>$SU$/MROH&KK9W[GS)-?2$G^IOP M4SN(Z(5)-2+-D#LR)JER"!Y40SNKN\ZTZ>A1ZF6AUMQ.?[N1['*_S$PWJN8_ M4$L#!!0````(`"&5#D>EP.C"$0,``)(,```9````>&PO=V]R:W-H965T;R$WDE[QJQ37 MSCJ/#/RSE"_FXL=^'0/#("JQ4\9%H0^O8BNJRGC2D?^,3M]C&D/[_.;]6[]= MC?]<=&(KJ]_E7ITT+8BCO3@4ETH]R>MW,>XA-0YWLNKZWVAWZ92L;R9Q5!=O MP[%L^N-UN$/):#9O@$8#-!E,<>8-\&B`WPWZ",E`UN_K:Z&*?-7*:]0.+^-< MF'<.[[%^KY-4X!^3+4NIMT!@J,="N\D2KXM05X3IYT4"[6['$4>I;U-.6P14_\EX MH4)]$69+ZL1N>3SS,MDR@ACS$H5:(Z1+BL3N>@2"+/,Q.<(4!]I)J$%"MJ1$ MF+\5.TR.#F)_.H5:+N1+2H1;$P;*N.]OW]%!1L%_2(DUZM6B/?8C&PO=V]R:W-H965TA4YEC9=5=V'E:H^;)^)/8Y1N;A`XN[?+Q?'3=0H+YX9.)=A MP/5D[+L;`#SZ5%*[#1Z\']>$N'8`Q=V=&4&'G=Y8Q7TH[9ZXT0+O$DE)PBA] M((H+C9LZK;W8IC8'+X6&%XO<02EN_VU!FFF#"WQ:>!7[P<<%TM1DX75"@7;" M:&2AW^"?Q7I;1D0"_!4PN;,WP32V`!):'Q5X"$=X!"FC4##^ MF#6_+"/Q/#^I/Z73ANYWW,&CD6^B\T-HEF+40<\/TK^:Z1GF(ZRB8&ND2U_4 M'IPWZD3!2/'/'(5.<&XE4X?$4U];.YI49-C%+K`;#.&)4RYJA8,"?J+";MAPI+`_6S" M+DUT-LF8*F$J2DM*K_N4-WS*"Y_RJD]YYE.L*E9],R)G$QSY'OYPNQ?:H9WQ MX3+2.'MC/`0U>K?":`A/?BDD]#ZF5GEQVK^`U!+`P04```` M"``AE0Y'RJ"OD<,#``")$0``&0```'AL+W=O$VD'80)(L`@UDD:[5-MX71PY'4[+%V2GZT33<^IY=INCYEV7B\V+8:O_17V[E_ MSOW05I.['=ZR\3K8ZK0$M4V&0IBLK>HNW>^6W[X.^UW_/C5U9[\.R?C>MM7P MWXMM^MMS"NG]AV_UVV6:?\CVN^P1=ZI;VXUUWR6#/3^GO\+3`?-9LBC^KNUM M]*Z3&?ZU[[_/-W^>GE,Q,]C&'J>YB^N_ M+\-U^*_5:`]]\T]]FBZ.5J3)R9ZK]V;ZUM_^L-L8]-S@L6_&Y3,YOH]3W]Y# MTJ2M?JS?=;=\W]9_"K&%A0-P"\!'`*AH@-P"Y*>`;"5;QO5;-57[W=#?DF%= MC&LUKSD\23=SQ\0-9DSGOY;IFA7[W<=>";7+/N:&B.9EU>"BP9#B0!3Z(TCVZE6#7YH@$H2R%"LH,O,Z`]%:&1$1KITQ1!F%6B[S"% M8FB(3AJ'P_"H"(_R>1`H]P>.2!+#!XKI"%`1 M`2H(4#BC"Z^CTAB1,T!$5PK%[K`R`E02H'!*EWZJZH*;(%^F$$H.9[9TW@6% M#P3!GEXVT49D2&[X1$0G02@6*6K,0)`@C`1^>BAC#&=$5*FU*-F]!C&G!B18 M&,9"K[,"%+=V1.=L%/G5B_DU^(8MP_L-)$FG>088)B(T[M3#,L4\&WS3EN$M M!\2UP0!R3$0H)$B6*>;;0(P;PF46B"7K'-@TUWY!%K)@:PG$W!NH?8>9J"U+ MQ:])S)>!&#.H<%^^XSHKR-E$R;WQRQ(*/GECW@S$G"%<3<%W79"%X+<4\>=" M`%O!(&;00!P:PD5U$ZTS4++.XSLT('`\&#-HI`8=W.,'),:K"WY%,.:\2)TW MO'O1]-S>"'W[T?$Q=-UPPD;BI*QELZGY6&MYX,6:\Z!NOPO#F M17(&UFX"N,-@7$FQ8MZ+BF"%2R>2HS#FAH.*Z"A2S'K1MUX=+E'H.^\OX`[G M);?+/TEE69#:0;EB[HO$?3%[%_5\%9W8_+:3^[Y>WF"/O?]9%U[XHN;^XNM3H^;QIZG M^3)WU\/ZIF"]F?KK_<7'X^W+_G]02P,$%`````@`(94.1TK8?M$(`P``Q@L` M`!D```!X;"]W;W)K&ULC99=DYL@%(;_BN/]KH`@ MDC'.;!([[45G=O:BO783DCBKDBK9;/]]0=T$4K"]4<'G?+P=$TIU;`[1/VIX^5N,&KJ"`&01$U9 MM6&>#7//79Z)LZRKEC]W07]NFK+[O>*UN"Q#&'Y.O%2'H]0349Y%5[M=U?"V MKT0;='R_#)_@HH`#,A`_*G[IC>=`)_\JQ)L>?-LM0Z!SX#7?2NVB5+=WON9U MK3VIR+\FI[>8VM!\_O3^99"KTG\M>[X6]<]J)X\J6Q`&.[XOS[5\$9>O?-)` MM,.MJ/OA&FS/O13-ITD8-.7'>*_:X7X9WZ1@,G,;H,D`70VN<=P&\600WPSP MK`&>#/#_1B"3`;F+$(W:AY7;E++,LTY<@FXL]ZG4NPHNB*K--E#+U8?ZU5`0 M3>39>XX1SJ)W[%HO8,=I1RLC0@8EADA``7-S:XA#&B9O;F!PA&"`W5U@< MH\R,:PG$,P*Q(9"F3GTC0@;D`6$*8X]`&TP88QZ%%H@)BSU@88$$D#3V:20S M&HE5Q,0IDIB18H1\&FT.0^B1:'$))=2CT.(H2+!/8#(C,+$$4J?`Q$H\!9[= MM[8X=3ZD'H$6ER;`)]#B&$J13R"=$4@M@>YM2JV5]*2SMBB$H.?CVE@<8:DA+W7OS]2(@X'OB#&IU%%24&KNI8L-B.+F;+< M16/&&?8`$?8)L[D8^$X6=G=6>?P5EC]$DL2G3W<>_E\IL/8EPYZS8V2!GU[*CB+K(ZT/\2&1E-2L.[P]`> M]L%6G%NI?\'&[+4%?4*ZR;F;7\'%&CKF-[IE'9JBF_L\.Y4'_KWL#E7;!Z]" MJM9J:([V0DBN,@>/ZOP]JJ;Z.JCY7NI'JIZ[L_P%02P,$ M%`````@`(94.1S3_BI6*`@``&0D``!D```!X;"]W;W)K&UL?99-<]L@$(;_BD;W1H`^D#.R9F)W.NVA,YDW7T6K%V:*^-OXD2I3#Z&?A3K]"3E^3'+Q.Y$!R(>V)F.ZLV! M\8%(->7'3)PY)7MC-/09`J#*!M*-:=N8M6?>-NPB^VZDSSP1EV$@_.^&]NRZ M3F%Z6WCICB>I%[*VR6:[?3?0471L3#@]K-,G^+B%2$N,XE='K\(9)QK^E;$W M/?FQ7Z=`,]">[J1V0=3CG6YIWVM/*O*?R>D]IC9TQS?OWTRZ"O^5"+IE_>]N M+T^*%J3)GA[(I91W@\)D:LE,7E^))&W#V37A]C#.1)\Y?,S5SNT2E8Q( M]2NS75K1-N]MD8,F>]>./,W&:I#1P%F1*>]S"!0/L4&..0H%V+H*G(TI@CC82[O"L>-:TGE`]0)0[0&50:#:"X0C.+ZJBL&L%F!6'DSXL%9. M&%A%ORU/ANKH?UE7WWC!`AX0#@)-HNE_4<=.RY.IKRMZ6G"QA$*/J`X302=4 M!15S%3LW3E57^'U'F=)R!\J/IQ"+9L)Z67O_OB'IOCC'U9_?%&-UXN\7"59.4DNRU6Q M>DA>ESQ"497)7M+,LCIO_O#=ZH]_^`[?X?>.DW=5N9HU\,XDG[3_^D_K?NK=Y?L7 M'RY>O_^0//]T^:?7[W],+CXDK]]?](QV`=^OLSE\=Y)_3=[D#[V3O'Y8=CXV MW-_[Y]X7/N9U4>'")LF+;-5Y5^EF_N$?HI2#,28TSLMY=MO^ZS2;-YT1+]9U M32\4S1B6].<\JWN_OK_=5G6')%>+;(Y__Y0OJWI5 ME+?)1;589F7G0:5QM5@`>UVMJO&7-+DB'DL^K%?-"A@17F^_=EUG^.ODZF%Q M4\TC&_R\E^:R="']2_AUAYO_>?38VT2XZ+L7%;!)V>036%/95/-B`B2:),^S M>5:.KU0R8*(N.R=_M(87,YFV1W13S M8A59UE4^7M>P,?.B!%:KILD8_E5TIF,)N,P>D'J1O]=K&J;W2^^K5:ZO)ZL* MMF).++',@"*=::UOJAI8FYX85[`M<'SPQ1)&:1Y]71<.XG%=TVQP:8VLET<9\L"MVZ>9_T" MRA^BR8$*='IZIAZRX(9-?XOKN<;U//)0TK_H%";>-,FX-='^46B=6[YUU5[J MEN\Q!;9:GCS:_P#*XF*%!Y0/(7`A2O"\',>.$4KL636'C6W^"QWM[N1`@DSS M&AFP$?F>HZ!)SD$`5$C4Y"Z;KV&I]\5J!B<)!IFPNK&D-W.D!_#!LV$"4H0U MD!^2X7ZZOT__$YTDR=:K&8BP?\TG(#Y')^FQ^U/1-'A*2:;TWRIR"\DL_;GA M+;SA:\-1>CPK&>RV%?P')G(&.+NSPI2OAW3-K8YR?YM!AW M!19O[S;;TF$$FNTV;VYWQ^U\S)!G9_FJ@"MS%^Z\9\EW/?KCU0I&H`L6]ODE MB#]@-KRD\2I`1OAOYS>HT(U7_\\3F*N'DRP//3J4SP%/^&Z'09[^+K//T]_[ M106/ M;GP2N0')U/[]2_A$<5N*PC!^2-`,;N8L!&,OA,?E;>0)_10)SK&<8#RZRU7_@23GN'1SE#_NI6\?/OA3U?)RT\?WB4?/EY^.K]&/\/YQ?7K?WE]_?KR M*D:S&/'/)S^M&U'&2!,%;6Q$5G+SH"<'5@SBI[BC M&_[[B+4%0Q;,'G2.%VBO_VO4NQ)RYZ1:WZRF:SC^8B+UGIM,;"1X,="D2;_> M\E!V^7:6@4X*%TWIKY0>I86@03:/+SIB%,>V@RBZQLLG_(:EYF/[_OK]OUQ> M/;+O']?U>`;V`3':TC>3A*0FZG464[ M%N@\M,WZJ>:?IREKI1LI=_GRY>7%=?+A97+Y7R]>G;__\3*!DW^9\,]7R8?W M"1*W\[W+:WD$>";Z!/XNA1ODMBA+HM04A6M1=<48/9BCV='["*T,73H3L"61 M$K-<'L6#W=G9UQNN(3WCG17)2OTS\/Y%E).Z)C!Y#IG<*-%C=_*+O!G7Q9+$ M5E<%O%HO%EE-OH,KN`P+,)30%RSG'I?\$41]S)R-/+)!AQL.DG`BYA=/9,-` M[V`W*V"\*GE>YWA.C/A24]1^!LD.[M^WO\DOO_V<@'#^]K=WSR^^_;R;W&<- M;NJ"3__P[/0`_WN1S0OX;5ED*L;YIB4F1H7WQO/N7S?)7I M]Q/[_;=O+Y*=;W_C/\/G>+3/94'F(#S-]@EQ24G+`4UIY_.;73`[%_00O/WY M^>O/;^#E`3R'O&CD?;J$&UW>YRL:'Y9%WY`9\81SFOR-_=YJEJWP[$[68.[= MY.A"A%<6V1Q$5,X*`E&%.+]9X@4X7SV8;W\;U]ET!11L\ELU1O$1&F)!:O`@ MN<9?V$^A5C.OQG2I`6$_?RFR6>K1E]D@@TE6MUERM<0#UZ3)^_P^^7-5?QD8 M'&Z1_5199Q>J^#0Y7&I!%`%%@SX4[!S/1+:"9M2(IVP._X+/PF=@O/M9,9X! MN2;)=5;,DW.X+8J&!IW.L]MF5BP-/4W4SR83LK=3>D#'!AHC"S7D"<*#0%]# M1L!IZC?95\M?'B1B&\R!27@C5@E^2[Q*-:YYDH,N!E?P:OY@Z"I;!90%O09_ M<3^K@"!`E+I!QIZ@C5'!C^ MV@ACFCL!N= M/LI<4$U!LO`=2Q_TN-+`6^]`V(/-7>9I\@;9V@[4VO3N?3"N8&Y\_ZUFL(R_ MK$%QRVN88TV1':7A/]O?<\0'SZI9S>IJ?3M3J>5KZX"]J5.>) M!SQ:?*SS1;%>"$WH,)39A(\8K<>7&WRRW/>8YVE<'':-9C;\PAL>#[@=J\P6 MN"Y_IT/A!U("9@`GHLQY#<1^*+[T<'06Q5H:4`<)FN?,P)V))\MUW:SQFH!I M9D";VSIG9P)]P9O1^0(V:9S)->!.G&$98D^9[H-_=@8@">8JWW1)?VT,SPN= M"#@Y8>R=_.LX7ZZ(]\,'?@0E"M[?QBOJAL8;[0_/!TD>J!PWJTCU=@3&8@*""X:[1\N%K%-DI$R`> M&V,M/J,C+'+7[2/\!#M)AA.]E273/&=5$+[R"@^IVVGCMA>$,$@!V7IFJW(] MA6VBW0[X'&T[GW_A>EAF=$6'S(#R<$H>6=AKB@&W9!',QNBIA4G-U^2?L.>W M`2VQ=\-365U=/="6\RIM``YIF!)=P=@"B0N71`T4J4&A@!O2$CL%"L!W4?KS M!N+>S85Q5U4*UWI1-C?K&O=Y/S'TEIJ<9P@N@NDC?E%KP1USHA-Q)T4CC]'JX0%L8-3U/\3%/K16^< M-X.T"`Y-((EX`)@"NT;0Z%Z#MM#]6L,D759-0]'(S+HE:#/PI>CW\&"27@`, M,IY7#3`,WEAP?F7]R*^W*KD,+;^Q`HO..*VU%#TF/"3]:P3M<+RJJU*.V1+M MT5H6/2WFN%B5UPE%@LF<,W2OZ@FA.%A#_@X04U>7%Z2C?H0K>'\E$YP>3:8AP\+3Z3G`W5;7%X#=J/?.'O>J^1&>_IXNGJOF2HHT7 M*TOR!0Q?XX<*.F5,(EI/@!#?9N5XC(B$N"BZ&MHJZS588:4$6>^3Z/X'EKEO/B: M+-@;GZ,W/OFG=9E;*!'-'?WPWISM5@?*H6&AX^RNI=M&RW[X=Q!^_"ZKW:1> M-;DW]^ATFUFUGN.EGB"\2A2#G]:ETPP,[;:CQ"/K9\GC9N+Q_`+=_>BY(E14 MN8876>?"4_(2]/1DN+\'DAP-OV(.3.@8_?(BE7.$PABEEQ6X,(J;"$4MK2E8 M>/@O9BCW;_1&@FE'%J-GX/J$%@/73(&CJWO5)>V26(&-'^12(0MXI.M\Z7%> MT]5=\%8"Z4]""0[L._LO.+=&#]9-E=7D&V'3`ZT(46&?ZU]>Z%_(X(23*)]O MEO!9DG["G45-A^N63#>BVKQADYCW%U37"/!#3+O&G@ MV`-K%B"AQQ1;T87+J'QO++('Y#Z,4(Q7(N?PH0?$*;%T-R]@N`4J4@(O.DI( MSX'K<8T7N5P&`^"F\1ST5-I+)O6%W)/`O`OD36+FC><6CA?\1%]W1[.V`],% MBLR#G*1WG&(O+\[?7R?G%Q)"6++`#'N<4?1<0-$N"NJ=<.*(MZ?48G0+P4Z?`#OM]G@<,`!#HJ= MP@\&8_YP.>-^(A0/Q\2_.7#):_(A\X:_1*U@78-BP!<6$ M]$>XK6:@QL&B.$`O/FFY',4?/E$UT0<"@5X`FIQ0$3Y,T!@@&'`^?3=W,TT M-S(]%M?D^0#RHV[AG>1%OOK>_*__\=\110FZ/JGF.7K*!:F#9FM=XZDA:9Q_ M!1HV/]`;+T"IN,MK-LE)W\/+FOQ(]1TY,7R!@89D/N$WZ9[(K?0-OE#@9?>5 M!YKDZ-H'ZH*H_@&WD-Z^@/6`D&"PRP.^`%=U4^%3#VB6HRDS@&O`K9THHX@PJ$2+:=I8P4"()OHN.A#@JM5_/K`=J41`@3?) MD4"D/9&72S03[\MU[@^\U+7RP"AK08?V3&5/F/JS]2)'2%ZDT4MF0+H!ST,& M?*D,^,)C0*;NQPVT2XE)%GA4<92\('LIRLV&'2OX;-BP,3E[ MR_RV6A5$KHS-#HR'Y]:][7,HZ4GLI@"S`]49GO84/FU07W"&GW>Y%2A?97LC MHPXH/.&?/P/?^.3.WSF?OQ@K\NK5J3_>XA1O/B:F*P@PPM0T'*!VC+9W\[!G M3]X-63\WF3QE12(0$J.;=%2=PCEHB0;Q^^1HB1E0&2N?.!B49(SG-FL+-G`` MQFK!T5SKM2#>][8.;NV*I3C&7CVSNS%V.1I6!;L<]-X'#WJ-3A[R%KZ>@O:' M<[([$H0/?1;JV2BD0'=!J;V%:+UR-^E6X*5.I._>87!'&O7?Z%$7J)_XLQQ) MIO[U@J)JGHUYKG"?D)S*8$QU1A>E%6LPXHP.'!Y1-$@4`T3S,6X^Y'Y!2H`( M9RVY*N5DD#)J5>0-'R/X14-NTYJMC0DSKO?L0K%8(N_FY,I0:+Y5>AJKRAA/ MM*%6LUS?T(=NB^F*G9IBW5C*DR+`'F1W$XO(Q"OR'/4"TGE0#KY0%(@%5?@; MA?$,LC--IF\UJ*5ET;IMASQ?9%UP, MZ($D"`0%,##N;'J::*CF"*OS^I7+E;];[(QQ.G0H@U[G;F==RO?N5WSH]NZ! M.V8HQ)K4++-FY?M;[*&S9KJ^G5J+"$$_U0*^Q>;W!![`:Q'5(X%H.PO%*0MR MJ.7*%7!N8S"BDYSM)Y/L`7,!&A3DN7?D43>'_]1%\T6N);6_[XK\G@R0"9BX MDS6Y3'#;0N*0K`@-1/2>%!K9;M^W=OONT0B#/23:@P0'1H"[<8*:2(X"@XP\ MV1`PO74O=-=ULU/?I^&QW3VZ:,R-8P_R:;&H\7P%?]7[@#-4@C@HHT':O+HN MA0#L&162J0\SP\VI;W,T[,`(0X[B/IP#+EDU7 MH@_X@2["^EA1:YD7_75@*9.DP@U5K:&:3CNS59L\,JWNY+MPJD'B)10%/\.' M#0E#>Y6A4X@CHA:ZUZS43Y4M@>A?B=!R7HNZ6>T592H_`370&IE5DQ0E.\O' M9`=M(*#`O/A7H@#!G'>#2P3NG=OU/.-0)G)V0]*D\.;JG!GHBV`[H+II*A2$ MUNC*5C;P@;2X!9YMF/1S=0O]99W)P7"#&]K2EIYJ!V]OCU6\Q'$"URTZ5WE= M"$(16/A+Q2@9!`6C[=G0OLS9$;6J3'6#\ICDG<,SX2PX*8=N``\'B).Z\U1. MYWS2)(0;T$+^1+8C["14H>IG5IQS/NNV.:'6Y@L/1H?S_BQS:;_-@#Q+F/*=^4CBN"3_FZ01+!?]*W7"!@76K*'$VL3[?.2J.6CWZ`1`G?IJ)XP[87>.;+ M6SPH`F8)<2Q".]93.R2+4/8'7&E-<3Z$6:#J+/OF;2K\5J.5>,.+1"_7Y/QC M!Y$W!:$>XF42%HUZU_J!@>DT*^JF_;:)XUE"I1UO)D^#2E%"Y46W/J) MG_GY;)2.S@[3$?P=!X_LV$3=7W9[C`?$4J`,S34X;`/-&;A&0&,P1?V,::/O MH\Z^JXODY&A?+BI1*LA&(,2B!2&SED(KSS!,6M4^09WK#Y^O-5VZ.P,Z8W," MH=>>1Y.`;7#?`+,J8LV**WA1$=%LZI'W@W:Y^)+/BUE54H>S1!2C_7R4TW+@I^#N>@%[FAMB>LG#WL7C4?8 M]B<)'<'[`?1NR#HK,XK)X%LU*3(V3(,R9+F42(E/)(I[>R/?L%G''C6R@%>K.:J]T76$1B#9:&QXHM^IYX-!F)"2$8B@ M,*J(0]HK&.L>7=JA.%#L`HLY]L"@*T1M>B*]I/_)%=?6!08[`"#B4XWXDN"!6]G.)]K;7;$YB1>.WJ"Y$X#J7& M\!\YR<5?5*C&2=V7S(]D]NUB2P_'5R\%:\O( M6ZH'*\AF[*7Z23JI^K/OV\DZ?"?A,C>D[;2QB;I<%"+MR;@E$'1HD@M<#(A" MH0J)%TYY>L#$S&7``??DR7*9SV'^O;5M/?W%T_S878&GU6;G3"7&RG-.-?O( M/6"G:NX50T`*(^(/LT:VJ/LT6!D%7D6T%78Y]"5/$;0K;BS&);&?025C3Y\@ MN*1H%.+QP+4WGI,\S-WIUB;8:7*,HP<5#"Z\I][34Q\9A_7M9Y@"W&:[!/)B MM,E7P3Q8*R#0$N?C]=S>45V"#`1]@^SJ$`(W]D184OBO&F82^E\COJ#F>R"% M%V=D??VJ%;XUQ]\=[']'AU%_.DPBOS,V&>Y9LG-ZE)Z`0K.;[`P/3BB7?!=_ M?7)T1HH0_/YX_XA_-$_(:/.RSQ_[T3SOX2>`-\;+O_-#]<$LGD(DT.18[T$4`A.&F`>=RQCN MR;^BL=#DK+!VS\(>_Y]YH7^SAZ=%[J>0^$7O$=^&R(EF<%Y(!J>Y]C(X6PJU M\:%A24?]306XR6X6A,-K6FBJ"O)'4'P0>9S7<\(Y:FZ`8)>\5P:>]>D0'X:% M0Y,'*#4Z49IY2C."&P%LM`F<,-1G6#%BF;B'R4H6ELH*$DG-'@6K=$="WS+\ M5C2=2=WK_*;SE%]P(07<=#]%-O/R+1&L/>:X&6G\N*$R*P0?N$D9P2UG$QC>;S*E0OU-K4&([%'.!W%`VV M601TP40P/.@)8DHP)U#(<4X*M_=I!KHJ4$G!AT9O.X*;-#,@@8!+"!$B'E[' M%J+3M;?38X(61NK%@BABG()M%AL,H9L+&&" MW%^'9P'3AP7)I7A^&XFR\B#BKNE!\RG6"6VD7PA%5$P@A664SUV@Y4MN/4C@65^ER=QH].JJ@8P?,2E;1$S,K$CRW?SOH]YSL?DS+" M1H6(;@Z]"[IM$.3-N04*+9A]@H#43<9>R09-T`W)S8I]3JT1*'8N7`3SF/// M&4N#L,:$"6M,A`GU8DB*7BH*->&XNIXP>V&T0CHL.)@\*%D\G3IIJG4]MO3U MRL/5T6(3.=L./8?#)E&(_DNFAOG8\4'`D(C(^"*D^C:$4&,M#0& M+1M/<[:(;\SCP]L!`^*2A==\G^P4NQ:3Y;W%UB8'P.LJJ!:1A([!(%/$/F1< M#I&`0-]CI$X3:^"ZA:U'Y]T#9HCA.#L%S"0^F,NS\.U-N69E>+G;C3]NW(1L M%+1"Q+61>L)V69.;(=SD?T<-=KFP^CU;@\UJ\!SU2!\ M?XN7$RK[(3EGG=_#]<[`D5F8(T*[%N:H&/B+%0VOA;_N&(#R8.\3VN'O_.!] MX$8B=$-D(FIG4CPS=3>!!%R+QE#<9"(N/8Z,M`\CO8%2B<"<#]&`E$2;"&BC M]D?#\M1-"L<-:&&6\TS=VWC9DJL(Y6F=DUL4[P<\]>@ME!4%/(*STTH!:4*# MA04#4AO%>I![6OV:+8>W_;KS/?9/I4/F0:?*"<$Y->KEA=P_PAR[9=;LT^=; M/#T:)/8%$QL^^:`1'2XE.DQ-*U>8X#>JC&8:6*'\7+8(8"8VUVX'Y>""5`WF MH&]_V_@"Y5HCSO^BFJ-K^6$.;/L\*[\0O.LUXC0J0A"57SA^5*-#;27))=Y+ M)!'\04`6W>JLWSWWE/#.Z*9G=/\MG"?\]GQ]"VIN,CQ5U]%Y8TM$4#RAG="9 M`@'>$AP3TZ-G("H,%:/"D^//UF*O6E]@61VN@'(4FO484>[D<^5<%30PPU%3 M*N-02[B;1S9N[G0V-NZF%1DV;BWRYZ$#,];<*I^7CO$7ZR7.ZIDK.V7NGU.J;U7F$85&-%LUSL4-F&H8S;F)X'/"7)C4)13K MW5CC-M:&75IGG4`AC#VR67X4"UPO!%HI.`?RCV=LELTOD1H1>+*"^OM:+?"1,X8 M^GS!N"^F?/DR*`.O8I>YMX'RI!J+CP]%+AU+N(7J"H%69*:+?N/<[I9N-*Z) MCZM6Y.9-923LV0D/U]VB;:(GKM3NWDBGPJ%0I`;O'I, M;&\C`"PFRT:(IK#/8I9VA4)U@ZIDGG!*"LPVH[SZ.6'40)2OUE0]0G11;QT. M>O3CF"Z66BCQ MTC?GF!>PU!`&RN89N8P(=KA8P(@4N#=T_\,C*'E2"Q^T%6N1*RK.ERYT40\) M:":2S](AKHX'O\@7N6;0KY$5T4R\(O8,Z'4QX0\)CI2@;IPT MB'B&%A9CQ!J$#Y[DO+*BY?4G,70.=_O<:G<=7=L300VB5R#!'3D1N:^RR5=>SHH[M ME.)>V#UF>%2"SP;B2\,:>9\EJK`-+I-2 M3-L[@:>C6$D`E&#UXD"Y@PS2<'Q_59S##^]FV>_P;,4A: M>N1Z+*9<5D)F8=-(..<3$S*>[1/D%QY4K81\JZ6>^(`\R6;RP'3I!II7]ZXJ M"(+G&L[0$**C!N$%7MUJT1IK4D,S=A`9=[%YMV?[OB1Q^D\9B%K@BI&D9I-` MW495%V'D=/50P-K?XXE]LHBS;QL^+1-Q9GTEXT;81"C]B6BA7GS/%$:CF<"P M#*Z-#0_Z35.)QWLB?#DM2DT9:#/YCG.OPBDB_#AY/63?@C.TRUQD;\9-1XAY MA+1!A^3(!*`N&!7B/"M$"&.*#&@M%^<`<<@,$,VEIP2T5R\EY<)9;#JGYK%S MRF/!I'?1X;G4(S2.',/EEA_!1MO]5 MMT3RRVX)4G/;^J4@D^A6E:+`=)7QUC\0`M4I<9W7Q>H8[8.F-,D>K$QD@QA5 MTIS\;*QD_O(+*92XRH1/OX=,E[]UL`WL?-XDFF9R`]K$KV58\RL8]K%;8RN& M-1V&]6P:#+JPB61L("50>B=47/3&T3M4YU)?+K7,*'%0Q+1`F@]^'Z/J]1V? M$V-+=)'1NJ(&/G8'14WG>`,N+M_::$TMB7E0FX+B,N_1&VJ#8&:>W5LJ29R9 M+5J)]B*T7JZP^WRRM>W&$*7R#XQDTT$BRT@#0VV) MTZZ2J&FS:DV5#]:JULI:"%1:EUI@PK.?C"J\9#E-FL"1@R,I'64?@G-6=%T> M?02)ET$4+C2."[W-\(379C,[^?5FMOEU9G:`(?/DJB4;2%Q9%Q;A(8T@-*U'3\I''LB35X/$>\[(=E7PN[2C7_&QVR32VL!9PAS**5, M#->9T4#.R`9-PHHZH3X^4@?'1;;*%D@.6TR#HR`IQ>_TCUP#N065%6!L@'_% M*7R2IS[B4]]^3@41FQHO7$7UT"FQ#AL@B1;-Y=69E9=451_DPW*E[D/&:;BJ M.JV*6UPJ2RH.>X$97+AAO\[H4#T(6YVXIO$W6KU?A%$%5/>89[M*D2?_1FHA^O)75*C?3&`^%MXOG MH^,S1K0T(LR6J(^M+(+!2R.4=1"H,;>QV M<[[%5(J&TL` MSIM"4O2M-F%>@9YY1XBDBH\PT4VA;Y3K,\7BI+8='-78MTYB.>RLO57O MOR_`MHXOB8MC`VA'$RO4'R-8<6"%58P/_"X'_>4-4*4=CH;D&J?+L=OF(>_>T>0;FT.EHGQ+G)>N_I6BDG3JJ["FZP2G=BVP.@(92LJKQ MPJ=/A$5X#BARQ\F]T)U&@`H+VA43).WY>7LRF?<*"3KG+F*-.#(BHY,%F.P5 M`CF.]$"YJ:HOT@*VBV^37`=D7@H2<'2@^QJ*W2"':=4I23!M*3]&KA#*1B[9 M\\.`?7M5_LI;XI%[P+RD:S3#NE]IR`_X3;HR\>HD59KO8-_)Z2MHJN%@IM(: MYY11PI,D_SB5`;XTN2759XZGH`9]A?<0/^AG?'BK(%RD0T/S,?=R4+2$EF9N MH&"A'`M!I5AZZ<>YJ@$7BZ(R";T^G:= MSLW?^E94];,D]]GLV#?':#!.QR2T-_J!Z@?CX48I_T<>@HMQR=Y[3IY$O=9Y MCS0S0\M/,KRD3+C8%$Z=CFP44N36 MI9=0I+L;E,/U$T2H:5*SQO8XA8`4+?8@3CD^YJ9)D=OBBGZX:PBZ^G5E^TZB'KBM;[BL]B\,726$8)+7BZ_>@D M6F.`"$`ZJ*3W^)N.![2@XD=HP&I=1X\\$9O"A.01.X=]`(J-=\D]#]R8HQ%( MJI?E4][:,]CGJ_S[:>)690#C?HI$HD*!MJ]Y7,TVOUK-3IZ@9OLW3;LFWIR\ M&,W_N8*6%BJR]O\*(=OM6ZCAV!P?*8!]?,`##-/]`RK#9-[E6*(: MF`XVY9BA':>4RV"N/UR?OX5/#=/CTP/ZP[-DE`Y!;SV#G[O]';FRUEOM"GH1 M[0KZ5K(6)$+S4O,U^KLQ'@X2&=NTQL;#9JN]I9198FR^BG63AGD2*DHEB&,(/.YRY769:9>WF(5+W3%$`DG$_]3O?P$+]E.)0(DH* M4[B?7BDP$YC)+1SLZ?"0@4JO^UNPA/V1(C7&.)U2JKK=V"J>V"@$<4=]L&D_81M MM"C=#"=R-:Y6V.R,^B-)+3Y;7][KZ_;I^14ACNP!H^;#%<:NM36!CQ/$V5%S M,YOA<@HG:.D:">M=1M4TR7D?(YQ7.H%Z,&+7QS=^`[7K6;QG:&@X/3WXOE3#"7YU>,/Z$'V"<@*;+JXH"W]@=#D4$8,VK3/I_T'2#SZ`%* M-AV@83HZ.4"GQE..T*IU,#>>GRV*`W;/"-(LQO"=SL4;H[3=/L0WJZU4B#^" MD1\,;=I#RY^=N\-T"BZIDJ!1'E;6('@>4)G;J1_C9I\RHRW: M[+@M^,+$HACB,A%I[)GD7@@<(TC9@YO9+XI+FR`D+&'OSLADC4C$/=<>$]N$ MWB.N3/;=BTQ3,Y8\`_YXI?=UV2/B&=TG5]+ID=U:!=N>K>'BAV]0G4G#84&5 M0,Z[XK["\5]&'U`PF7FGF'0NBNWJW"77C]P@QU0EV8YD^D?J7!C!#+PZ;(:7 M3^BI\`ZQ;06CKG7MAPT_TI MOE>/C?TU;D")B]L-:+]\>-@N..BF@@X,(X4,A3P,1P^,,4(\#\EP-M,Q$D1:#! M&P*]G6L*I]*;,F2)G=HE3?*%@'$9LL.20V<4"@M)&C%M=UJ\7,L3D>SM5@(,V!/B0CL=]`0Y=,;]4+=3Y0&8>.>\"OUJE-#<@C MS'X1BL"(Y49N%%@OH=GU\!08B/PX0BUY[JG.0DEWENUR%]S.OW%I&1#(#TV4:_@34O M\%*C]J%@WC`^0T(D?S"^EQ0/3XY>0XP(ML:X*<[9]2 MD=._"SG`X#X[ILMXF!Z>GN'`!@AR>$0$.DC/A@?D`7Y+3<;$5;]P/!I[]IE4 M<(V>GVL]/_#`1MTF/&V//7TZ<#U&#;WP[=_#-YYP(%[E19EC(/7S&W5*!8SP M%UO?J'LT#LAQW3X;B'-\XV\Y;+A%$R#9\G)Z3&QY3/RPY\RE_=LX]&(/2)'PS/9PM'Q*!W2V_*[ MEF2BJVHK0116/\;GNLV$[??,GUW3X+B\I$N8J'.X6#=7`P.#@@=UQJJ),)-Y,AAE67S9EZ:%"EX"FVE6A52(]\ MGZ"Z9R_+6_+.6O\@=MNT3M2B46!W/AF8STN&Y5YJ08X7MN!(PRFXSG?7I3?E MU.&O\7-$4,SP)X[&1[@*OWX8R]1)45,U!5]A@6)\GZN1+'"]84I2&F1L<7NA M2`ZGRX8@R(JDZZ"%Z7+1I+PXJ=!\&G/31HE'CR&3PJ*7RLGCA.FH)A>B<;VE M$DX?G-F[]8-/U4W.L.XNC66Z8_D^G3G^U752E%N&':6X8ZZ\$R'NFL33E[A9 MH4R9!A*?-A=253P=_<6V9W.0/!?)ES$,/ZG002G6&Z*O$)/7,W!O'"8NR"[[ M!=F0(YXDQWH>.TY&IZC1;'SH9)N'3M%+.WSDH;,M'AKM8RX4!F2'HV.*Z=)5 MH45WZUP(&MCE.Z`(GE$M]8]M0>3@D1;[W'MH9'=%=LPM:<;FG#S"?V1OX M67)Z2G=`5XO'\#A&!GHT^.$^JMWRD+%>EA`\EXF9*B42M$"SY/GI%SIWBO=D M]U9Y5P^2/V?-#,O970$-$:D,Y$"R89MHACY>S(H<9/!7N%*H(LL']./%TNL# MNS;V72D0A5^EKZ']A1GGK3SI?+&<5VS[XDV.P7MIK$LE+%NR*O:AW933T7L' MUFO'-Y_='_$U&J'8!=LW6\WP'W=4)-=VRZR3G;OP`RW?J5:,NLC05MU^XC,O M61HY&_O;&"\5J;%[[=JIE%Y?4.(;]Y!>5CRFI)[.7*\_6/UH<$1QP`;[=EHL MAYH5>.F:)IOC1;[CX:Q=#SW6$^#4[89N3:Q4G=N*P3ZI*(\6UKK`ZN;+>>$" M(:Z5%VMM.\CAF#RX5TL)Z*9H=I%("$1FUQ1M7#>6(EM\[7WW!6H9VV[%#U:U M2LW,IKDHNKQ+873=4$MD]O*MT,$')#O8WU7QC&$3G_=CI$ZZI#;]I&X\(N/F M^41&3]ON`&6.5#)FZ+2=@7=9Q=9ON="H0LC,$S4WVW$#G'`&\CM@"*UP:!,[ MK?P-4W=\$8&ZSYB:;!AR_.92@`&N[&+AZNG+46BY\.-I#<%,7=EV"J$Z][VH MP\].CO?QDNKJ/Q9YQ^?O0N<_A@OC20]O%VL=#JE$NPYCNL.`.![/A#Q^G8Y& M6],[[V3005E;V[G"HW]!J6Y-JKNLILQ/05GEE!*'?:/@>F3\'`X>@#(7V9S1 M7[-JR9L$)[4.2[P)C+&Q.,9JPI_TD[`L_&\IBQ-?B,[)`D()G:D/^_WN@Z[D MZ,TE==P&9ZIEKAVH,9?_%MX([]V@J1<6QL)B''0<*"O.@IDINL1,*6U0J21! MB.R7*A;T`)5(5`%48E5T3)(C?`*&M7=/1J1640 MIO2]/U?U%RL*+E`U).?O95WD[!&FY!@0B`OB&?4:+HRHV=VPMZ! MNPA0LXP"4RQ?,/8M,W4&64L,L&AY[RJ=5G9$(:3\API7J54BO0I%Z(9)5K* M\VO\CEJ/S&FUJNHR?T#($/>IES"YK7^"NJ:4S&1DKMXM>#96`X,88XV02,XO M!Q%=T3]U;`R/U4(8P4-7R'3$8 M=;;WT"*:.?7Z_#*A#E-\)\-!/<_K"AT:A.8\_Q%/!#R$)\+5FPET2*JQ""H. M%E%6IKK07Q`'86L_:I3S#H1.J0<`C@VU'.=S@SFWP#I`_")SHZPE^=GU^X3[ ML`D=%QA\NFU25M1=1C.>1=NFA^12CMU@L(*.;?"C`L,>;"SLCFFPI2WG+CHN MZ#NVAA+*`P5-M"YT0;GHX=7Q*4"%7G%;AXHF2C+.SN$FY\1WF29#$NV\'CQG MM+\#.YFS$)@>V#REG&"W@UV5]+G?I=71.=5+1N=[6U-GJDY>^([G&(M_B,GR M[6]PKV*]O-OJV\\*)VD3(V%B@.X3#FIY!D0Q<"4A9WI9#EU+9&\&):I%0*D' MRL!IILJ#-7M6*(VO9BV,_Q0*(IZM'`:L7Y5Y73_AL*^DY">/MZ,MWC$RIOT* M=%;&FQ67`8PS;;.JEL'R2)8MLB]^<3U-V):,)`*^SJ7TGY521X^E:_8`YK' M2-W;W$M&<&AQFAJF*8RA[9.;,75U81/'%K.PX>P5^\?"O,\E95TVE$A(\-,) M&<*:/2^9$8Q1P+HO*.4T+=[T\*D>?/];FNJR2]DLS8P0J13BU]3Z!DT2:72Y M)H;S95\@[#CH>_3]_K[Y^"[9^9B-,3LSN0:#%\8GJK-_^N@')S]QE40M>SEG8S;$MD!0QY*-7]@>GR/`4M26X+/=T5MQ5( MQ`;=WB3K@MP>++:PQMX.YPT!?-<-U]8S!-*8P'5?S",@W`MQSG&+#Z3G2RQ( M?+KWAN_)/@J[^]Y]S,I.6WPL7#@F_$S]9&J/!.6&G2*!F-F[Q@&^HDU*?"S$ M+ZV>YA;A;A_Y=V\E-:WNWRZE9GY-*36<8(YT';3M+%B%<5D9V7U6VS+K;.(( M@I;0E2AU/&-K%>%5YC>$)J6$404QMZ;(+'OR1+BWHR M1C-A/]A4P;?L+HY$*GI2"TGS0%]KXCI+T2E7ZU>!?;@1%JV34E.T,;JFN/*= MU\Z:8Q$6R"-9;3P)@C`1/$R'GQ!J5"V(AKSS7\I9Z.+1ZPGQIV^$$C6YK M.Y`3:&]5[0D>$?._[VSW=6Z593HFL-ZM=`D4?H=QV?)&YV[+MM$L\@EO!YS$ ML82J^2G*6>"J5I+T9S&U0@-_15IOWN\7K^$#J2*/O(I,DS4.SSER*;I8%ZK2]0RZ&59^!>H?U!U[OH9EW,!=+)2+$W:8@2UA9&`^O:H#%X]K9W9=;B?ED,QHL='M<@ MR^\1RM%V:62FL-Z.CAP65PU*!V%ABOU1.U>2_25+-&I&['HK]O%/QX>UU8>YY,ND\^-8H['`V2X+LF&,V7CEAT#3V+QG9/I./QE"9.0N+JOFSG M](PXU[$EVAEF:TBS1,@FJH[J3N""C`0*0&6X\9IX!@UL:9)7LWP)5]T$F";# MAB*8L.'5"6Z#F%L]'@S9T+A]G,>P(-?2@#].EMOC,R`HPB/?T30/R;&DCQG^ M6)-ZG7N*,J""A,0=$)74`NFWR7Y#&W'E4N7^[+R6QDVK`WD$,ND:K#EP\T(?=2_A"^&FM( M?G@D0"C^H3-&T'+9);?HZP<'\OKP$#.=S'-;!;I5?1)F*9@A0FQ)G[CSBXL/ MG]]?)\_/WYZ_O[AL4Q-H[Q!LYYK,9LL+EQ,+F)T77E4!IL\P/3@^$PIA&A;! M&$T[E2R8HLOG4EC92>P5I.6SQ"']\>>CT].>G&XV4U]3DV-2Y_H>84T=:?=4 M87@PT):RQOM.N_J7E7^"=IC;S#FV(>XKUZ_TV[_32>EK^FJ/DK9DMW_IU!SK M-I[M'53S^!!)"#?\G'TCX@G&+W*$I>#^KO`47'CX6IU-5Q0:`L7A9;N=ZB,? M#0TW_!B'DFZ`(R8T95*G[TM/>TX]/)@X)8E$7+./F(8&Z3GZ0%ENX,`!DEZK/+J M!&;`(O*%WZK[/V>+Y0^P0J]9-\I@*H&&,-/#0_GIB`O0&87-77K5BQ`]NR\? M'1V?"8SVX(#QT1MI?/AK:7QV^`SR5>ND!3*N`-)./9;R?^#U''=.\;]WY;&/><^)1E0DKZ M():EE2.-%RN7R*-DYGTF?P1-J'E)6EB@G1^O%AI;II^>7Z6!W.``GF91B1G, ME8A8CV"-M2:UQ<%T$65;YUQN">1&79)39P)7@W2>H`1M8BOJ[3I!A69BG..E M\"Y+UE^Q`NTMY^TRP'BEOGN?6MI\*!1/R7/)W+_"S/W&A/]LJ38[ZS(#S0Y6 ML1M!Z_/N`5_U54@$GAIJFL5TQCE.X? MGO`I9!=@4+TH.1B=T&/#$\XJH0/>>2@='1U*SL0QC'8J7Y/T6RJ#;V^:83H: M'4F"AOP$MX972ANS]+)'2**0V#L\(-]K5 M5^%&H?&0SL_4--W!J^J$*TCMPK^` ML*?,";LRX28V'3(`S_A\'Y(N$%D>;5[T[7Z>)WB,3?_YX-33:W)+Q=6$7@6" M.ABP)6Y_,KXSI670O$SJ&UASU5SJH@4\(_C,Y:I\`\0,&<'^@\03"!16),C729U2K!6\J9`DC6:=PY&(QWW MX'!(K`<_'I\"[YD?VJ;(].T%/+!I_%$3SQCMEGP%.;70HNN;. MJ8A$^/%L="J<@DIII][CSHD^.!H)2\&ZSO9U9B>BU.R*L)3FV4!'I"_K6HB(%5R$U%=W16.]G.@+A@.\!^N4I>W1 M3E.I/%#QSH8R^V=(S@.K!>Z>5(4B#1\7`I^PD'X-*D;GY1AMX5-%2'QTS%X8AO--"1:O&7LS9T MQ"H-THHG@]OC>QN1THP@9P6)-N:$M'5\4##[\HBO3QUQ9F&W,"*=B&ODU?Z_ M;0G#/1J(>6-H/(E>>9Y,L\F3V>E6@L%VK%#^->JVXX#+%"_$&<9E^;A5Y5RJ MQTR*B8:#82`Y^B8835#?%`WRV\21BB#W'+X@:A3ZA*?3)I<&8-E722XE*MEJ M>LF.UG#/)U8"\F3G<('/38@C<;40=JW_Z?.;"-*N04\REVS,N)L9^I$E:(ZZ M.L>;/)2`YX29V+:];CDV(I>5/MK5M[O($XIQS43HSXY@NL M6$^`:HIA9>W,&*\DQBT"((-$^Z%PVUSZJ@M/6]A-)4$\:R\S7MO[0/CM)H:6\&I8WN2\>KKO$",C MAS?@@$[X[P6E@"[5B/:T1()R.,_>E4<3,8X(XEO-"\H\V-&?=K?^Q.8'C3>7 M=W!>JG%16CBY9A!HL,]!8O$`_(S!_V]_PX@69KDQJGK!?EZPI@_:$$TMPH5. M=*<7^)'K[XU$:!V<7;[_]NT%587DN#.!N=%+VXY/A@#@G<]O=OV:DNS4_7G7 M`B'D?=*$&EO`Z(K&;S6MD%9Y-/D;^SV299R6D9-W75SP\Y67[*$!=VHX`W]Z M,-_^1OYXH*`Z<<5M3$-HCL2UC;E+3>!''>G=:+QSI)OK6>XZH&"XD"P$[?#G M+ARN>NZ-W`*HD?M?"\QS"""E`C$28I^`K`(U_WR>:R^6Z3R[Q:INAIZ.M$G0 ML:6G?6/32FQD@^H,R#?9U\1?'B0_*MHBM8EV^"W)0JD%BLR%\^8/QF*TO$WD M&Q3]?CD2I2;0D_6]2?T^K!-93UQ_$):&A(V'79D3B&Z@X5UF+(-^_@E\3SGK M#8'/NRY%"E//N)Z=MFZB);M`08(5F)/+->K%/D^3-Q%8FFL?T$#>S`G6-1]7 M,Y0:CB71-"M`M?''YP`$?B5U(`U:'W^4N8!14F0Q6'^C<"7#XHL)&-!EGB9O MQ).E&DBPZ5Y@6I1+RAO1S,*B\6HAU`PO%!JV07MX5HW>6T+.#IC6)4ATHC%2 M40,+OCI:=((R%UF933*G4?ER@T^6KUP1F$]K!V!**O["&QX/N!VK1-`R[*.W MTZ'P`RD1;^YF_+!?.\2487DH2N/$F)_=B$#@!65$_&Q]^H(WHQ#SX4Z<81EB M3YGN@W]V$"1EJS'[D5::%[D88'+"V#N8T;E,Q^A6;Z$*GBS\#96GMF\P&*]I`2].!0$B$JQUI'I9!?4+E?((_EAE M"-Q:21%MGRRIF1=_65>U5FZ_0\@QE;1%%%9[PT20P`:@R4*8UE+;>+-FQP3D M&GBV?\%R]M!P.IW[=KLTO]&L0H*ZN4K'M'S*$B(X'^(%IJVXL>ZJREVWC]Q3 MERU7!DM/Y3XY]C=!9-!;F19; M(=M38SK5-("HQN.J!!7Q:I+1%**?GRH;[-2PMQ;O67:;W&Q]+%,&4TK MZS0EC`I%70-"QUG(VA);POG*1]1?]->$7&+O``">:SHP:;V6F#/?WWE`V M"*=Q6@0XG"#%#.'=@<(VTMY<&B\ M4U1#_"]1.5+ZO>AL99YH;64NWJQ9[2@O7(X[B`VCIS/2L5+3JCOUO07N6\GG MJ89VH64IX:6"4UUNR=(DFA&6'MW_#WZ:AN1Q.)OL,:X6<(/V?"HHA9X:ME,V ME:;1<'8(75O2>L4F-.CY>7!%YDRWAE/%%XPT]M.W6B9@Q@!SE MY>$@)D)M:I/R-N#`:(R;8; MPW,R7B',FSRN%Z"[V;Z:Q_M'>K1L%6(3?8TDQ:!GQF&7/>NJX4@QLAO)'NXN MTO0-8I>-@1GNV>WU^G$P>1ML<(=FD:^^-__K?_SWY&..5@,I^3FF()5CR7[S M"YAPV?KF!WKC!2@-=YCY@F8":8(U9SXUVKC&/YMHDN83?I-=Z%8P!E_`-B+4 M`PVMJES*"8$4I=Q8>ON"T[(UCD1ED[$V%SQ%2?1H%`U`0KL5F?N>]]^ M1L"R3]8)&-%RHUO3B@^=A&LQB]7@->EK7D%M/W@T=8V!7J%M'V.M/W([L%\$ED+#]/X]FBS\>,)6QGD;S1V M(S.J0A.4M2'"#+3*AA10(E%"J!3Z+KHBEI2-)IQ"%JD2@4-F2*",X8(N.=7[ M,J.5=>"EKM5KKY[[1G>02N-FZW5%0/(BC5XR`])E`S)U/VZ@ M7>HUFW!MRZ/<;-;Q8NQMCN(3OZ04*@RZY+>5%JUALP+S4'+K*/G['6!_F8<^>/*K?YL*R5B0"(>>%'%6G"_8TS<[1TN*^"$%Y MIW5)5]]6:PLV<`!FK#0$L?X/XGUOZ^">KUB*$VC#&>2-LAGHWB@'][0:F]A6B]1?B]YGM=$-'R,X%M5QQ;Q:*LU3:'M@?39(A3#H3BNX*R^A)C!%D<9J MK"H3E$R+)ZFRX6$I3XH`^Z+=32PB,V+HGUM\`U+Y1;6^64W7SG1UZQ[!'_K:N()ACQ2"@KEJ`624`4WRR3:)M@6Q;6E M*8T[V9[F&RI)GI&]'2T#@/&"]&QC?4\K(31I7SO?L5'=H_ZWG-*N5EF M39`T:8^LM;_U[=2:+K"U9;6`;[%=/8$'\%*M*6V77-\N!]>I&IFK*0I\)=#R MAFLZGFDO$9R-EGYF@8&V`%;$*IHOMMPM,]A=03GN04T#R@`.B&.;%CE+#MTB MA4;8V[>UW3Y"E\`>$NT+JM&4:N?:.?6S0JN9-P1L:B][CW9=-SOUG14>VW&# MW!O''D@3$9^>$^"OC8?7:<5C.4F_S:OK4@L&D<=52*:^T4R:""(RR28<<,DB M$>BD'$7@1F[/6"`SSB7,0*4^-V&`K\$8V\0):LN\Z(CC+N*\H:IS5--I9[9J M/$=14.W)=[,(>EL$_\+6OC:'S652R_$MZF:U5Y2I_,2%7U:S:I)Z[8!WT*!B MR!01A'*$=]LWP.UZGG&$%1F=<_H*;Z[."8$^!#8JJAML?+=R01^+G&&PS6V. MK0MH)^;J_J&>FQQWL8,;+>CE*[UV\/9N62U.'!X(WT%VH'5%T#8"+A-[E6*I M35>P=Y\C`'3#3TM#.BP`6$G'<=^EDA$BH185EJ:Q=X6.;SE49&5]RX3S MRZ78U;=']E"1F4/6&HKP>BU'ABR_GDE.RB!,!O-!C^T/1"=$`"(8C&"H73?W M1JQGI&1LB7Y@UR=*"N=\`AD?*1GK/6Q:#SN?!Y7AK=EB9NY=5HBYY"8K5GWU M1%,+XS9N3THD"ET\T4S2<5]N4VHDL;LCA[`-0;P3LG\%]>9,981WI&([Z@$; MNT:]-UGYI3&%@PI9A"D+;%*^""N)=Z!;W2"))%ZU2K1@4=6Q#?/VV@899BNS MY:8?(.G%][D8#L`RF%X)/^(A$UA/B.C1]K#\MQ6P\-["IMAU,0ZB%R2*2QWO9^S&$ZQ7(O[;=-'-D3:;G9[J][S)V# M:.MEJWDNC_?%G:C[SFZ/:;?_?A--?=R$$P]FK%\57``]Q5#LF._RZB(Y.=KW M:FH2DD,`R.P8<$4/B!!81)%#K9:^SI,IU76XP$!W!G3D*(U1;0\;^EG`C;?F M0LI]<&^V7,F90YN.$.=BA@7WL8@T7]76OY-]-;;DO*N)),!7U]YNTS+38!;B M8+(=;%3`HIY`(';2-=D[HY7JC`(GQEYM*M+7]?I5U8_Q1KGPD9]1%=+:$M=Y M[/40Z%"DRCG2$\)<'_;N+(^P[4\2;(3W`^A-;9/R,N,:`!;8[2I<5026)F'= MP>`;#171+FB@GW#.MIR?3R0*\'LCW^1:$5G]Q2OL,="SCM"F15MSPG8T=S:, M?C`(2%(F$!$41A7I&$"I0^G@E]M6AQ)Z=L1%P:27LFN1ZF^$F0+@A5S9PBBV[MX0F,MH:)EKV)@0/8B'U1S$E'OE2+2.HB MH+?Y"AN"/OJJZ7V5D<+TO!I<1BH"N&:EY+=>+-?29)XL6KUMK)DF;ZE.KS@F MOR6J=F`61_]]CD`IO+7%>N'+#J\G?0L_']81ZL`_R3*%Z:,X:D_&+8'069-< M$'ES[I&B,VDV':OX59U$2DE7W`LE([65.+"/.>4 MYP!+MP_8J9I[Q3V0%HL0SZR1+>H^#193@9<:;85=#GW)TS#MBAL'"[*?0>UE M3Y\@1*K?WY/7[I=#[32';R4,[S0YM;39JDOQMY^YEL`N%1W0;KEJ/_FB> M]_`3SF-_L#_$2]'++;$+DMT[7^"]<1&$MYOWD45R;/FMBS'27?A],E'94\95@MUR.F9(6Q#)JJ MTOZ1RJ5?(;*>4*B:N2%0+>^5@6<1-T$*,8<2@JE0\SV9-V4(8.[J53*!PXE* M%6MG+$[W,-G4@H992R.!VZ/EE>XTM=[J)A=PV50.,W`!?1M]N.`"`Y3VYQ'8 M3QI#*/V88Y%D=B`O:`G[NJ-ZLH[+Y,?RL(AW]&M&&@'3).>HKO@S3RC9DL;4 M8(!UQ&B=?]V%$-[84AV+_C@._(XB[*E:\70W12!(Z-EB2C`G4!AW3EJ_]VF& M(2LNRP(V]:(D!%(S`Q(,$B\S_)Z8T;*%.D)[MC,">5RAXXQ$-XSK10+P$Y$( MBK>Q:@81*`HXDH)7%CF.83"E7LC;#E74T?$^LTBZ%/=XQ[W4_KL$NFT?*%25 M>K".BNPJM)[DTX&:KG;J++O38^&B55]RD]N)<30/I*U4%@X"$(ZQ.U9?&C:] MT9.6^"=-LZAMXCL!^CT7@!B3VL.&D%P2C'X0[-\@R*-T"]3^ MXL1M053O)F.G+#4-]3Y=B=1J15DU7,4VARMG'O-].@,OUM<*OC3#UKYW M>5@N;>.C)JRL%@XC9K/HSJ+T5Q3UZ6B[]E)K1=2DY@D1%D68I_=K&ZB!`IIM M?98;&V[3FZ#G59%65,$TE_!Q]`3*-)K<[Z<5I@!$0';(I&2W2+7'""RS\T@K MA(NAL<9X)<+9_A7H/R:`:I5(K07)?2$4@N>]Q=8XXQWJ*BPW$OI1@Q0C^Y!Q MR6<"Q^TK+H>IA9DV58@/YA)T?'M<-``97M4.?]RXB=TH1HD[)&IDD:!\UB7! MB'P*==1^6GJ:D"?(PRN'55V,:AZNO`(I]G-5;GQ_E)=,+/LAR8J=WX/FP3BA M69A<1+O6*HKI:EEJOC`W%4N82;3C&]#\.Q^K$;C9M.YO>R)J/5,`.G67E$3( MB\909&LB+L_"]O;PCZ]MT4%0\H=HR%#B@82K4JNJ"4KG"P<$M##8;UE<4J@' MD"L-97>=DQ<9[R*4$^A-E15U"G5J!9>4FC>OPD(NJ8TS2GD-Z_=MQ0?LUYUO MMG\J'3+_!^;A7^,4NX+Z:CS+)^LY76\M#PY*9S0@R8SZV.?V:1N^YG'#-_G- M\/W-\/T_V_#U$1#;'!WO^:W*>_X"A(6'EA#W(,5?VU#R[TVGW':K#N6G[#YY M9Z^#9\GQ_DCJJIT<N9')PP%XR.J(:?>8D7'U;B^9'*KAT? MC&QE0VXE_BY'J#76',V38RY]=TIU`LWUA^OSMU12\?CT0.NG4HV^>*%MCK`& MWKO^#7'BT!4A?`%*#'L8;+/AX1N1C\3W_;&]>8O0"JXKW\T) M3VVJ+EP@KMY`T&T7:[H.N4(97F3KQA69!^:"L3!>G_-?CGXON2*L1K,SY`CCH]EE+$7,?R>$,G]:,1 MQW*/AE3QS6`AXY%4HI??=1G$VY)W09%+W./DNH<#XIOSKE,E4Z+M8VDN)*&U M]L45WE)%MU4];+5=#+>T[WGN&)H5E'QPL/FM^/4E6WWOI"4, M#V+[/^,RP_'U3UL1[MJ9E=)SQG"%.%OWUP(^';H^K"6GUJDFYMHF$1KTU68V MK8&CH2X0J#W[<]F_/T,67;0]/8\=)Z-3*CNYZ:&3;1XZ348>-_0\=+;%0R,L M@4>2=3BBVI-\O-0%87,M"[_=Q,YPI"4,V^3N(3.6V3O:<'9W1D=2I?$]=IC2 M6K%<^%6EUK/D]#3*VOW-9IXBBQ_O5;.!>W]K6/);PY+_7S4LV>ID/=[H)'ZD M?FO^\%OSA]^:/\2:/_0>.]O*H-5Q8*OS]EN3@M^:%/S6I."W)@7_7VE2T#5^ MK72T5>`W%XW]K.[[@=;Z0>_M4[XK77"W[MUPM\O-/F" M)%"3O$?X,PH/.$/)YZL7R'"ZVN[MA3[P(J/'LP/]S6\&R?X1&YA]!S>#@SL:;GSF?'T+SXACHO/'90U_/.0_;OS( M:.,S[ZN[`?K,J5UUSS-7^1(6M/D9DD2C`Y9$6T@K7?1[RC?IGM'QP%KA6XS6 M]XP_3O_,Y^X9DA=53DL=ME'"_,/_X!ADD<',$USD+"-#8T#NT0<9J$JOIOG8A MR2GPS+\E<>:Z!K6"Y1P(`RIU8C_6:AO1O7"XI%AG@-Z"B&V'44?85_47NE)% M'Q(+M'N-MCIEO))N`UH?O>_^]$LMHH`L5HI?^_S\U=ONM-7OKN7;I&9\W_`? M$1*13T26A_X0K(L0J9!8S0G'+(?@I1R"WB\\_@;L\SF5%3G7L_+(8%QDJO?L M20VY!HO83/H/X#O@:U"Q@_7Q[_E^SU"/"K!&CVM+`7RGHQ"% MR)VN*/&!.YUM<5UH0ZV"V1NF4B3NKLOD1=T*G3Y!_YBB'P]DBG M1[&+8;OQ/?!HS^C'^['1[=&GI@]LH?3>OVBUQ^]?.TQX)68WU5TN@*"Y(%)B M-^)!;&JA)SH-H]C1$R`6A4_L#F\_O^K=R>'@X+0SB]>MHH@JYCHO1S6%K)=)6!_,.R.'<+B M0'EJX=B>8EC;BPV;&F12/"EJ%UEC2IP471C>-CFXOW*ZGVWUE4?M.(UT*/.W M__X!&!F#Z13IZ.,^`@IZ!77\%&4N`MIK7PT/[/!-[_A;$FT[,=<-5>C:4SGN M=/X1!-@]94>/\7#_Z`E7A.L1<F.5DO1@R#CB3F][W>"=AC M9WU-^!*E6!/4)9N"P@`TE+F&>!.4+ M4OF^U,NAP#H-4F+63UZ#UW&26.&=FFIHZ0B>I2N]1257M)@8/(/,=0M?+#6E M@JL`LLY95MR!DLIG'DO-0*ZWGTQ1=^:_'&@U032S_I-MP6DO%0MN@@D,[#0G M^0*'4JDHJ0OZ%0'GB>.0!UPA2M1FG1&="^JVX677_Z<)U3QJL-S(.--V4ZX_ M0.,?!9CJW,;JR/5J%:V&4PP#7<#B6;VZ7\?=AC-16/%>T@80.XCP%GK9V\!# MC%UT0$?L/!3'ST4!RF[)I2R+#6?^(6%\KM#]E M&Z1<_V@'@Z-?,-ZO(?0.W`JPX%F^PHHO&P@_'"7O++JS>W.BR=#XR&DRS5NX MZ8TOI1OTIIB^=!B3<\\Q%I^A MWP?P[U>>BQK^^>/SC^U_[GS[GYVMN([QO#+!)(+$]V(L4XLWI_J"F'!VG\_O M**T23G8<[]ZKFW@;Q5S[*4*^J$;_"/E"VZV;!K"=J-B`\D^\4_=+SMS?;_[= M$_AWG?AF^C2/)SMT%#GDX;,^(^AQNCBAU$TE\-Y$/>#*Y03\F7("_%W_#]W> MF$NYHZ\)Y02=W#R>G_#("`^;[??M"T>@PWP->RU-L%E"O^JR,:^@:U)NE5S0M6K[,@BZ M-XN"K6QJ6/1R"\Y,QY+TPS(]T9#WMB#F"HXKQ9,U5JG:!.:3([P')$C_VS'5 M(_FWI.>KW>6YI*9^C:N-/_NWY%G7YE*_.-L*%UK7HB\>WU52T##(G6F`K2+S M6W3G%PV6;.O>\_T9'H]_KA,,`%(*8'E+BYB*VF";Y5YF'465@0WSCEZDFQ:X M05R]V@`(:*5O!"&']K.7+EW"3^"@-AT;7MLNJ:&S*V`E=CT5_7&9=DI'NTQ1 M&$R)NG+")`BO1.,C+AX7YMD\20ADFCCS^0IAITCV6W02,D(&B*1J/W7=]>TID3 MA\)W#L<3(>V;">N!J?L=12&.?:-[N1?)_J@R$9_GAOGYNCCU.-C^\#Q M_R*X\4=GT8&<][VYS2GK`9S_G8^;!8=W]V#.%0XWP[;;KVV!S.[R4A=\'3FE M;?#SKZ:I!T?^^])T&X!RG[;5#TR.[=R6F.0-WJ\VPCABD&\'+8Y-KQ]7W%4" M0EAQC*114''\P0!4[![YKFE6?_S?4$L!`A0#%`````@`(94.1[P-6`+O`0`` M+2```!,``````````````(`!`````%M#;VYT96YT7U1Y<&5S72YX;6Q02P$" M%`,4````"``AE0Y'2'4%[L4````K`@``"P``````````````@`$@`@``7W)E M;',O+G)E;'-02P$"%`,4````"``AE0Y'MZLFGN@!``#9'P``&@`````````` M````@`$.`P``>&PO7W)E;',O=V]R:V)O;VLN>&UL+G)E;'-02P$"%`,4```` M"``AE0Y';:8OAB4#``!T#0``$```````````````@`$N!0``9&]C4')O<',O M87!P+GAM;%!+`0(4`Q0````(`"&5#D=>@$I*/P$``&D#```1```````````` M``"``8$(``!D;V-097)PC M$`8``)PG```3``````````````"``>\)``!X;"]T:&5M92]T:&5M93$N>&UL M4$L!`A0#%`````@`(94.1UEH_IQD`@``2`L```T``````````````(`!,!`` M`'AL+W-T>6QE&PO=V]R:V)O;VLN>&UL4$L!`A0#%`````@`(94. M1\&PO=V]R:W-H M965T&UL4$L!`A0#%`````@`(94.1U92A7+"!```TA<``!@` M`````````````(`!GB```'AL+W=OB]&PO=V]R:W-H965T&UL M4$L!`A0#%`````@`(94.1P.6;;RA`0``L0,``!@``````````````(`!TRL` M`'AL+W=O&PO=V]R:W-H965T&UL4$L!`A0#%`````@`(94. M1\/Z#%6@`0``L0,``!D``````````````(`!6S$``'AL+W=O&PO=V]R:W-H965TTMQ>KH0$``+$#```9``````````````"``0HU``!X;"]W;W)K M&UL4$L!`A0#%`````@`(94.1\%`*;RC`0``L0,` M`!D``````````````(`!XC8``'AL+W=O&PO=V]R:W-H965T+D*7) MH0$``+$#```9``````````````"``90Z``!X;"]W;W)K&UL4$L!`A0#%`````@`(94.1\TAK&NB`0``L0,``!D````````````` M`(`!;#P``'AL+W=O&PO=V]R:W-H965T M&UL4$L!`A0# M%`````@`(94.1[P(NQ:A`0``L0,``!D``````````````(`!]T$``'AL+W=O M&PO=V]R:W-H965TTD6=,?P(``"(*```9``````````````"``:A% M``!X;"]W;W)K&UL4$L!`A0#%`````@`(94.1ZH7 MEQ6C`0``L0,``!D``````````````(`!7D@``'AL+W=O&PO=V]R:W-H965T&UL4$L!`A0#%`````@`(94.1TC.K,"O`0``%@0``!D` M`````````````(`!\DT``'AL+W=O&PO M=V]R:W-H965T&UL4$L!`A0#%`````@`(94.1_Y>O`VE`0``L0,``!D``````````````(`! MD%,``'AL+W=O&PO=V]R:W-H965T&UL4$L!`A0#%``` M``@`(94.1Y%D)+:<`@``9`H``!D``````````````(`!LED``'AL+W=O&PO=V]R:W-H965T&UL4$L!`A0#%`````@`(94.1\ZU/TN$ M`@``[`D``!D``````````````(`!H&(``'AL+W=OP!```7!0``&0`````````````` M@`%;90``>&PO=V]R:W-H965T&UL4$L!`A0#%`````@`(94.1]XX*SKN`0``[`4``!D````` M`````````(`!X6D``'AL+W=O&PO=V]R M:W-H965T&UL M4$L!`A0#%`````@`(94.1Y<-H?OQ`0``\@4``!D``````````````(`!8G`` M`'AL+W=O&PO=V]R:W-H965T&UL4$L!`A0#%`````@` M(94.1QW[H,!%`@``\@<``!D``````````````(`!:W8``'AL+W=O```>&PO=V]R:W-H965TUP>%6K`$``+8#```9``````````````"``<-Z``!X;"]W M;W)K&UL4$L!`A0#%`````@`(94.1]*?7".``0`` M-P,``!D``````````````(`!IGP``'AL+W=O&PO=V]R:W-H965TE MP.C"$0,``)(,```9``````````````"``3.!``!X;"]W;W)K&UL4$L!`A0#%`````@`(94.1SJ!4A^2`0``9`,``!D````````` M`````(`!>X0``'AL+W=O&PO=V]R:W-H M965T&UL4$L! M`A0#%`````@`(94.1S3_BI6*`@``&0D``!D``````````````(`!?8T``'AL M+W=O&PO XML 15 R46.htm IDEA: XBRL DOCUMENT v3.2.0.727
Related-Party Transactions (Details Narrative)
Jun. 30, 2015
United Breweries of America [Member]  
Percentage of ownership interest 25.00%
XML 16 R33.htm IDEA: XBRL DOCUMENT v3.2.0.727
Inventories - Schedule of Inventories (Details) - USD ($)
Jun. 30, 2015
Dec. 31, 2014
Inventory Disclosure [Abstract]    
Raw Materials $ 602,200 $ 740,300
Beer-in-process 379,600 259,400
Finished Goods 632,200 1,034,200
Merchandise 69,000 84,000
TOTAL $ 1,683,000 $ 2,117,900
XML 17 report.css IDEA: XBRL DOCUMENT /* Updated 2009-11-04 */ /* v2.2.0.24 */ /* DefRef Styles */ ..report table.authRefData{ background-color: #def; border: 2px solid #2F4497; font-size: 1em; position: absolute; } ..report table.authRefData a { display: block; font-weight: bold; } ..report table.authRefData p { margin-top: 0px; } ..report table.authRefData .hide { background-color: #2F4497; padding: 1px 3px 0px 0px; text-align: right; } ..report table.authRefData .hide a:hover { background-color: #2F4497; } ..report table.authRefData .body { height: 150px; overflow: auto; width: 400px; } ..report table.authRefData table{ font-size: 1em; } /* Report Styles */ ..pl a, .pl a:visited { color: black; text-decoration: none; } /* table */ ..report { background-color: white; border: 2px solid #acf; clear: both; color: black; font: normal 8pt Helvetica, Arial, san-serif; margin-bottom: 2em; } ..report hr { border: 1px solid #acf; } /* Top labels */ ..report th { background-color: #acf; color: black; font-weight: bold; text-align: center; } ..report th.void { background-color: transparent; color: #000000; font: bold 10pt Helvetica, Arial, san-serif; text-align: left; } ..report .pl { text-align: left; vertical-align: top; white-space: normal; width: 200px; white-space: normal; /* word-wrap: break-word; */ } ..report td.pl a.a { cursor: pointer; display: block; width: 200px; overflow: hidden; } ..report td.pl div.a { width: 200px; } ..report td.pl a:hover { background-color: #ffc; } /* Header rows... */ ..report tr.rh { background-color: #acf; color: black; font-weight: bold; } /* Calendars... */ ..report .rc { background-color: #f0f0f0; } /* Even rows... */ ..report .re, .report .reu { background-color: #def; } ..report .reu td { border-bottom: 1px solid black; } /* Odd rows... */ ..report .ro, .report .rou { background-color: white; } ..report .rou td { border-bottom: 1px solid black; } ..report .rou table td, .report .reu table td { border-bottom: 0px solid black; } /* styles for footnote marker */ ..report .fn { white-space: nowrap; } /* styles for numeric types */ ..report .num, .report .nump { text-align: right; white-space: nowrap; } ..report .nump { padding-left: 2em; } ..report .nump { padding: 0px 0.4em 0px 2em; } /* styles for text types */ ..report .text { text-align: left; white-space: normal; } ..report .text .big { margin-bottom: 1em; width: 17em; } ..report .text .more { display: none; } ..report .text .note { font-style: italic; font-weight: bold; } ..report .text .small { width: 10em; } ..report sup { font-style: italic; } ..report .outerFootnotes { font-size: 1em; } XML 18 R25.htm IDEA: XBRL DOCUMENT v3.2.0.727
Long-Term Debt - Related Party (Tables)
6 Months Ended
Jun. 30, 2015
Long-term Debt - Related Party  
Schedule of Related Party Debt

 

    June 30, 2015     December 31, 2014  
Loan from Heineken UK Limited, payable in quarterly installments of $137,900, plus interest at UK prime plus 5% maturing on October 9, 2016, secured by licensing rights pursuant to a Sub-License Agreement.   $ 786,300     $ 1,038,600  
                 
Less current maturities     524,200       519,300  
    $ 262,100     $ 519,300  

Schedule of Maturities of Long Term Debt

Maturities of debt for succeeding years are as follows:

 

Six months ending December 31, 2015 $ 262,100  
Year ending December 31, 2016 $ 524,200  

XML 19 R50.htm IDEA: XBRL DOCUMENT v3.2.0.727
Unrestricted Net Assets - Condensed Balance Sheets of US Operations (Details) - MBC and Releta [Member] - USD ($)
Jun. 30, 2015
Dec. 31, 2014
Cash and cash equivalents $ 119,900 $ 61,500
Accounts receivable, net 1,198,400 1,365,000
Inventories 1,609,300 2,047,700
Other current assets 327,300 173,600
Total current assets 3,254,900 3,647,800
Investment in subsidiary 1,225,000 1,225,000
Property and equipment 9,660,700 9,904,500
Intercompany receivable 258,000 421,900
Other assets 267,800 310,400
Total assets 14,666,400 15,509,600
Line of credit 814,000 1,192,900
Accounts payable 2,515,500 2,620,000
Accrued liabilities 1,161,200 1,031,300
Note payable related party 1,571,800 $ 1,038,700
Subordinated convertible notes to related party 3,634,000  
Current maturities of debt, leases and severance 4,107,500 $ 3,918,900
Total current liabilities 13,804,000 9,801,800
Long-term capital leases $ 9,400 12,100
Subordinated convertible notes payable   3,588,900
Severance payable $ 304,100 760,100
Total liabilities 14,117,500 14,162,900
Common stock 15,100,300 15,100,300
Preferred stock 227,600 227,600
Accumulated deficit (14,779,000) (13,981,200)
Total stockholders' equity 548,900 1,346,700
Total liabilities and stockholders' equity $ 14,666,400 $ 15,509,600
XML 20 R42.htm IDEA: XBRL DOCUMENT v3.2.0.727
Long-Term Debt - Related Party - Summary of Maturities of Long-Term Debt for Succeeding Years (Details) - Loan from Heineken UK Limited Notes With 5% Prime Plus Interest Rate [Member]
Jun. 30, 2015
USD ($)
Payable during six months ending December 31, 2015 $ 262,100
Payable during year ending December 31, 2016 $ 524,200
XML 21 R37.htm IDEA: XBRL DOCUMENT v3.2.0.727
Secured Notes Payable - Summary of Long-Term Debt (Details) - USD ($)
Jun. 30, 2015
Dec. 31, 2014
Long term debt, total $ 3,645,900 $ 3,913,300
Less current maturities $ 3,645,900 $ 3,913,300
Long-term debt non-current    
MBFinancialBankNotes With 4% Prime Plus Interest Rate [Member]    
Long term debt, total $ 2,349,900 $ 2,423,600
MBFinancialBankNotes With 3.5% Prime Plus Interest Rate [Member]    
Long term debt, total $ 1,296,000 $ 1,489,700
XML 22 R52.htm IDEA: XBRL DOCUMENT v3.2.0.727
Unrestricted Net Assets - Condensed Statement of Cash Flows of US Operations (Details) - MBC and Releta [Member] - USD ($)
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities $ 113,900 $ (837,900)
Purchase of property and equipment (70,400) (57,700)
Net borrowing (repayment) on line of credit (378,900) (20,500)
Borrowing on note payable 500,000 500,000
Repayment on long term debt (267,400) (267,400)
Payment on obligation under capital lease (2,700) (2,600)
Net change in payable to UBIUK 163,900 128,700
Decrease in cash 58,400 (57,400)
Cash, beginning of period 61,500 113,700
Cash, end of period $ 119,900 $ 56,300
XML 23 R47.htm IDEA: XBRL DOCUMENT v3.2.0.727
Related-Party Transactions - Schedule of Related-Party Transactions (Details) - USD ($)
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
HUK [Member]      
Purchases from related party $ 5,530,600 $ 6,523,700  
Expenses reimbursement to related party 464,600 548,100  
Accounts payable and accrued liability 1,369,600   $ 1,802,300
UBA Convertible Notes [Member]      
Interest expenses associated with related party notes 45,100 45,100  
Notes payable including accrued interest 3,634,000   3,588,900
Catamaran Notes [Member]      
Interest expenses associated with related party notes 33,100 14,800  
Notes payable including accrued interest 1,571,800   $ 1,038,700
Borrowing From Catamaran [Member]      
Borrowing from Catamaran $ 500,000 $ 1,000,000  
XML 24 R9.htm IDEA: XBRL DOCUMENT v3.2.0.727
Secured Lines of Credit
6 Months Ended
Jun. 30, 2015
Line of Credit Facility [Abstract]  
Secured Lines of Credit

4. Secured Lines of Credit

 

In June 2011, Cole Taylor provided a line of credit, from which may be drawn up to 85% of eligible receivables and 60% of eligible inventory for the period expiring in June 2016. The borrowings are collateralized, with recourse, by MBC’s and Releta’s trade receivables and inventory located in the US. This facility currently carries interest (including default interest) at a rate of prime plus 3% and is secured by substantially all of the assets of Releta and MBC. The amount outstanding on this line of credit as of June 30, 2015 was approximately $814,000. Included in the Company’s balance sheet as of June 30, 2015 are account balances totaling $1,198,400 of accounts receivable and $1,609,300 of inventory collateralized to MB Financial, as successor in interest to Cole Taylor, under this facility.

 

On April 26, 2005, Royal Bank of Scotland Commercial Services Limited (“RBS”) provided an invoice discounting facility to KBEL based on 80% prepayment against qualified accounts receivable related to KBEL’s UK customers. The initial term of the facility was one year, after which time the facility could be terminated by either party upon six months’ notice. The facility carries an interest rate of 1.38% above the RBS base rate and a service charge of 0.10% of each invoice discounted. The amount outstanding on this line of credit as of June 30, 2015 was approximately $1,273,500. Included in the Company’s balance sheet at June 30, 2015 are account balances totaling $2,294,200 of accounts receivable collateralized to RBS under this facility.

XML 25 R43.htm IDEA: XBRL DOCUMENT v3.2.0.727
Capital Lease Obligations - Schedule of Future Minimum Lease Payments for Capital Lease Payments (Details) - USD ($)
Jun. 30, 2015
Dec. 31, 2014
Capital Lease Obligations [Abstract]    
Six months Ending December 31, 2015 $ 14,200  
Year Ending December 31, 2016 28,500  
Year Ending December 31, 2017 28,500  
Year Ending December 31, 2018 22,100  
Year Ending December 31, 2019 22,100  
Year Ending December 31, 2020 11,000  
Capital lease future minimum payment due, total 126,400  
Less amounts representing interest (12,900)  
Present value of minimum lease payments 113,500  
Less current maturities (25,300) $ (5,600)
Non-current leases payable $ 88,200 $ 12,100
XML 26 R29.htm IDEA: XBRL DOCUMENT v3.2.0.727
Unrestricted Net Assets (Tables)
6 Months Ended
Jun. 30, 2015
Unrestricted Net Assets  
Condensed Balance Sheets

Balance Sheets

 

Balance Sheets   June 30, 2015 (unaudited)     December 31, 2014  
             
Assets                
Cash and cash equivalents   $ 119,900     $ 61,500  
Accounts receivable, net     1,198,400       1,365,000  
Inventories     1,609,300       2,047,700  
Other current assets     327,300       173,600  
Total current assets     3,254,900       3,647,800  
                 
Investment in subsidiary     1,225,000       1,225,000  
Property and equipment     9,660,700       9,904,500  
Intercompany receivable     258,000       421,900  
Other assets     267,800       310,400  
Total assets   $ 14,666,400     $ 15,509,600  
                 
Liabilities                
Line of credit   $ 814,000     $ 1,192,900  
Accounts payable     2,515,500       2,620,000  
Accrued liabilities     1,161,200       1,031,300  
Note payable related party     1,571,800       1,038,700  
Subordinated convertible notes payable     3,634,000       -  
Current maturities of debt, leases and severance     4,107,500       3,918,900  
Total current liabilities     13,804,000       9,801,800  
                 
Long-term capital leases     9,400       12,100  
Subordinated convertible notes payable     -       3,588,900  
Severance payable     304,100       760,100  
Total liabilities     14,117,500       14,162,900  
                 
Stockholders’ equity                
Common stock     15,100,300       15,100,300  
Preferred stock     227,600       227,600  
Accumulated deficit     (14,779,000 )     (13,981,200 )
Total stockholders’ equity     548,900       1,346,700  
Total liabilities and stockholders’ equity   $ 14,666,400     $ 15,509,600  

Condensed Statement of Operations

Statements of Operations   Three months ended June 30,     Six months ended June 30,  
    2015     2014     2015     2014  
    (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Net sales   $ 3,166,500     $ 3,244,600     $ 5,540,200     $ 5,979,500  
Cost of goods sold     (2,471,300 )     (2,699,900 )     (4,593,900 )     (5,058,300 )
Sales, marketing, and retail expenses     (322,300 )     (341,100 )     (675,700 )     (706,400 )
General and administrative expenses     (380,600 )     (424,800 )     (860,700 )     (928,200 )
Loss from operations     (7,700 )     (221,200 )     (590,100 )     (713,400 )
                                 
Other income     40,500       8,800       43,600       10,700  
Interest expense     (124,500 )     (130,900 )     (247,500 )     (256,600 )
Provision for taxes     -       -       (3,800 )     -  
Net loss   $ (91,700 )   $ (343,300 )   $ (797,800 )   $ (959,300 )

Condensed Statement of Cash Flows

 Statements of Cash Flows    Six months ended June 30,  
    2015     2014  
    (unaudited)     (unaudited)  
Cash flows from operating activities   $ 113,900     $ (837,900 )
Purchase of property and equipment     (70,400 )     (57,700 )
Net borrowing (repayment) on line of credit     (378,900 )     (20,500 )
Borrowing on note payable     500,000       1,000,000  
Repayment on long term debt     (267,400 )     (267,400 )
Payment on obligation under capital lease     (2,700 )     (2,600 )
Net change in payable to UBIUK     163,900       128,700  
Decrease in cash     58,400       (57,400 )
Cash, beginning of period     61,500       113,700  
Cash, end of period   $ 119,900     $ 56,300  

XML 27 R28.htm IDEA: XBRL DOCUMENT v3.2.0.727
Segment Information (Tables)
6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Schedule of Segment Information

A summary of each segment is as follows:

 

Six months ended June 30, 2015
    North
American
Territory
    Foreign 
 Territory
    Total  
                   
Net Sales   $ 5,540,200     $ 9,292,500     $ 14,832,700  
Operating Income (Loss)   $ (586,800 )   $ 96,500     $ (490,300 )
Identifiable Assets   $ 13,183,400     $ 4,106,600     $ 17,290,000  
Depreciation & Amortization   $ 336,700     $ 244,700     $ 581,400  
Capital Expenditures   $ 70,400     $ 269,300     $ 339,700  

 

Six months ended June 30, 2014
    North
American
Territory
    Foreign 
Territory
    Total  
                   
Net Sales   $ 5,979,500     $ 10,783,200     $ 16,762,700  
Operating Income (loss)   $ (710,300 )   $ 428,800     $ (281,500 )
Identifiable Assets   $ 14,749,600     $ 4,539,500     $ 19,289,100  
Depreciation & Amortization   $ 339,200     $ 213,400     $ 552,600  
Capital Expenditures   $ 57,700     $ 187,000     $ 244,700  

XML 28 R44.htm IDEA: XBRL DOCUMENT v3.2.0.727
Severance Payable (Details Narrative) - Jun. 30, 2015
USD ($)
Number
Segment
Number of times on average monthly base salary 2.5
Number of monthly installments | Segment 20
Severance Payable Long Term [Member]  
Severance payable | $ $ 760,100
XML 29 R30.htm IDEA: XBRL DOCUMENT v3.2.0.727
Description of Operations and Summary of Significant Accounting Policies (Details Narrative) - USD ($)
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Jun. 30, 2011
Deferred financing costs on borrowings       $ 225,000
Amortization of deferred financing costs charged to operations $ 22,500 $ 22,500    
Uncertain tax benfits        
UK [Member]        
Cash deposits $ 1,600      
Accounts receivable due from customers $ 2,294,200      
XML 30 R31.htm IDEA: XBRL DOCUMENT v3.2.0.727
Description of Operations and Summary of Significant Accounting Policies - Schedule of Basic and Dilutive Net Loss Per Share (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Accounting Policies [Abstract]        
Net loss $ (85,700) $ (137,000) $ (759,600) $ (605,600)
Weighted average common shares outstanding 12,611,133 12,611,133 12,611,133 12,611,133
Basic net loss per share $ (0.01) $ (0.01) $ (0.06) $ (0.05)
Interest expense on convertible notes        
Loss for computing diluted net income per share $ (85,700) $ (137,000) $ (759,600) $ (605,600)
Incremental shares from assumed exercise of dilutive securities        
Dilutive potential common shares 12,611,133 12,611,133 12,611,133 12,611,133
Diluted net loss per share $ (0.01) $ (0.01) $ (0.06) $ (0.05)
XML 31 R8.htm IDEA: XBRL DOCUMENT v3.2.0.727
Inventories
6 Months Ended
Jun. 30, 2015
Inventory Disclosure [Abstract]  
Inventories

 

3. Inventories

 

Inventories are stated at the lower of average cost or market and consist of the following:

 

    June 30, 2015     December 31, 2014  
Raw Materials   $ 602,200     $ 740,300  
Beer-in-process     379,600       259,400  
Finished Goods     632,200       1,034,200  
Merchandise     69,000       84,000  
TOTAL   $ 1,683,000     $ 2,117,900  

XML 32 R32.htm IDEA: XBRL DOCUMENT v3.2.0.727
Liquidity and Management Plans (Details Narrative)
6 Months Ended
Feb. 05, 2015
USD ($)
Jan. 21, 2015
USD ($)
Aug. 20, 2014
Apr. 24, 2014
USD ($)
Jan. 22, 2014
USD ($)
Nov. 11, 2013
USD ($)
Sep. 01, 2013
USD ($)
Jun. 23, 2011
USD ($)
Jun. 30, 2015
USD ($)
Number
Dec. 31, 2014
USD ($)
Jun. 30, 2014
USD ($)
Dec. 31, 2013
USD ($)
Jul. 31, 2013
Segment
Credit facility, maturity date               Jun. 23, 2016          
Credit facility, agreement amount, prior to amendment               $ 10,000,000          
Default interest per year             $ 120,000            
Default interest rate in excess of regular rate             2.00%            
Reduction in advance rate against inventory each month     2.00%                    
Fixed charge coverage ratio - Required                 1.10       1.10
Fixed charges coverage ratio - Calculated | Number                 (1.12)        
Tangible net worth Required MBC and Releta                 $ 6,181,400        
Actual tangible net worth                 3,676,600        
Cash and cash equivalents                 121,500 $ 145,100 $ 56,900 $ 324,800  
Accumulated deficit                 17,006,700 $ 16,247,100      
Working capital deficit                 11,820,200        
United Breweries Holding Limited [Member]                          
Investments commitment by UBHL           $ 2,000,000              
Catamaran Services, Inc. [Member]                          
Proceeds from related party loan $ 500,000     $ 500,000 $ 500,000       $ 500,000        
Revolving Credit Facility [Member]                          
Credit facility, agreement amount, prior to amendment               4,119,000          
Revolving Credit Facility [Member] | After Amendment [Member]                          
Revolver facility, agreement amount, as per second amendment   $ 2,500,000                      
Machinery And Equipment Term Loan [Member]                          
Machinery and equipment, agreement amount               1,934,000          
Real Estate Term Loan [Member]                          
Real estate, agreement amount               2,947,000          
Capital Expenditure Line Of Credit [Member]                          
Capital expenditure, agreement amount               $ 1,000,000          
XML 33 R40.htm IDEA: XBRL DOCUMENT v3.2.0.727
Long-Term Debt - Related Party - Schedule of Related Party Debt (Details) - USD ($)
Jun. 30, 2015
Dec. 31, 2014
Less current maturities $ 524,200 $ 519,300
Long-term debt non-current 262,100 519,300
Loan from Heineken UK Limited Notes With 5% Prime Plus Interest Rate [Member]    
Long term debt, total 786,300 1,038,600
Less current maturities 524,200 519,300
Long-term debt non-current $ 262,100 $ 519,300
XML 34 R2.htm IDEA: XBRL DOCUMENT v3.2.0.727
Condensed Consolidated Balance Sheets - USD ($)
Jun. 30, 2015
Dec. 31, 2014
Current Assets    
Cash $ 121,500 $ 145,100
Accounts receivable, net 3,492,600 4,384,500
Inventories 1,683,000 2,117,900
Prepaid expenses 745,800 632,900
Total Current Assets 6,042,900 7,280,400
Property and Equipment, net 10,979,300 11,087,800
Deposits and other assets 267,800 310,400
Total Assets 17,290,000 18,678,600
Current Liabilities    
Secured lines of credit 2,087,500 2,156,900
Accounts payable 4,062,600 4,860,800
Accrued liabilities 1,855,800 1,768,600
Note payable to related party 1,571,800 $ 1,038,700
Subordinated convertible notes to related party 3,634,000  
Current maturities of secured notes payable 3,645,900 $ 3,913,300
Current maturity of long-term debt to related party 524,200 519,300
Current maturity of obligations under capital lease 25,300 $ 5,600
Current maturity of severance payable 456,000  
Total Current Liabilities $ 17,863,100 $ 14,263,200
Long-Term Liabilities    
Subordinated convertible notes to related party   3,588,900
Long term debt to related party, less current maturity $ 262,100 519,300
Long term lease, less current maturity 88,200 12,100
Severance payable, less current maturity 304,100 760,100
Total Long-Term Liabilities 654,400 4,880,400
Total Liabilities $ 18,517,500 $ 19,143,600
Commitments and contingencies    
Stockholders' Equity    
Preferred stock, Series A, no par value, with liquidation preference of $1 per share; 10,000,000 shares authorized, 227,600 shares issued and outstanding $ 227,600 $ 227,600
Common stock, no par value 30,000,000 shares authorized, 12,611,133 shares issued and outstanding 15,100,300 15,100,300
Accumulated comprehensive income 451,300 454,200
Accumulated deficit (17,006,700) (16,247,100)
Total Stockholders' Equity (1,227,500) (465,000)
Total Liabilities and Stockholders' Equity $ 17,290,000 $ 18,678,600
XML 35 R45.htm IDEA: XBRL DOCUMENT v3.2.0.727
Commitments and Contingencies (Details Narrative)
6 Months Ended
Jun. 30, 2015
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Demanded payment in legal dispute $ 500,000
XML 36 R6.htm IDEA: XBRL DOCUMENT v3.2.0.727
Description of Operations and Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2015
Accounting Policies [Abstract]  
Description of Operations and Summary of Significant Accounting Policies

1. Description of Operations and Summary of Significant Accounting Policies

 

Description of Operations

 

Mendocino Brewing Company, Inc. (the “Company” or “MBC”) was formed in 1983 in California, and has two operating subsidiaries: Releta Brewing Company, LLC (“Releta”), and United Breweries International (UK) Limited (“UBIUK”). In the United States (the “US”), MBC and Releta operate two breweries that produce beer and malt beverages for the specialty “craft” segment of the beer market. The breweries are located in Ukiah, California and Saratoga Springs, New York. The majority of sales for MBC in the US are in California. The Company brews several brands, of which Red Tail Ale is the flagship brand. In addition, the Company performs contract brewing for several other brands. Generally, product shipments are made directly from the breweries to the wholesalers or distributors in accordance with state and local laws.

 

MBC’s United Kingdom (the “UK”) subsidiary, UBIUK, is a holding company for Kingfisher Beer Europe Limited (“KBEL”). KBEL is a distributor of alcoholic beverages, mainly Kingfisher Lager Beer, in the UK and Europe. The offices of KBEL are located in Maidstone, Kent in the UK. In addition, during the period covered by this quarterly report (the “Quarterly Report”), through UBIUK, the Company had production and distribution rights to Kingfisher Premium Lager in Canada and the United States. The Company has the right to use the Kingfisher mark and the name “Kingfisher Brewing Company” in connection with the brewing and distribution of assorted beers in the United States pursuant to an agreement with Kingfisher America, Inc. Generally, sales are made through distributors.

 

All of the Company’s beers sold in Europe (except for beers sold in Germany) are procured under a contract with Heineken UK Limited (“HUK”). This contract expires in October 2018. KBEL is the distributor of Kingfisher Premium Lager to specialty restaurant trade distributors, liquor and convenience stores in the United Kingdom, Ireland, and continental Europe, but does not physically distribute the Company’s products to customers. KBEL relies on HUK for distribution of the product in Europe in exchange for a fee paid to HUK, except for in Germany where beers are manufactured and distributed pursuant to a separate contract with a different entity. In addition, HUK has the exclusive right to sell Kingfisher Premium Lager, for a royalty fee payable to KBEL, to certain large retail customers, including, but not limited to, Sainsbury’s, Asda, and Tesco.

 

Subsequent Events

 

The Company evaluates events that occur subsequent to the balance sheet date of periodic reports, but before financial statements are issued for periods ending on such balance sheet dates, for possible adjustment to such financial statements or other disclosure. This evaluation generally occurs through the date on which the Company’s financial statements are electronically prepared for filing with the Securities and Exchange Commission (“SEC”).

 

Principles of Consolidation

 

The consolidated financial statements present the accounts of MBC and its wholly-owned subsidiaries, Releta and UBIUK. All material intracompany and inter-company balances, profits and transactions have been eliminated.

 

Basis of Presentation and Organization

 

The accompanying unaudited condensed consolidated financial statements for the six months ended June 30, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the US. These condensed financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s most recent Annual Report on Form 10-K, as filed with the SEC, which contains additional financial and operating information and information concerning significant accounting policies followed by the Company. The financial statements and notes are representations of the Company’s management (“Management”) and its board of directors (the “Board of Directors”), who are responsible for their integrity and objectivity.

 

Operating results from the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or any future period.

 

Reclassifications

 

Certain items in the financial statements for the prior year have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income or equity.

 

SIGNIFICANT ACCOUNTING POLICIES

 

There have been no significant changes in the Company’s significant accounting policies during the six months ended June 30, 2015 compared to what was previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

 

Cash and Cash Equivalents, Short and Long-Term Investments

 

For purposes of cash flows, the Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents.

 

Revenue Recognition

 

The Company recognizes revenue from the brewing and distribution operations in accordance with Accounting Standards Codification 605 of the Financial Accounting Standards Board. The Company recognizes revenue from product sales, net of discounts.

 

The Company recognizes revenue only when all of the following criteria have been met:

 

  Persuasive evidence of an arrangement exists;

 

  Delivery has occurred or services have been rendered;

 

  The fee for the arrangement is fixed or determinable; and

 

  Collectability is reasonably assured.

 

“Persuasive Evidence of an Arrangement” – The Company documents all terms of an arrangement in a written contract or purchase order signed by the customer prior to recognizing revenue.

 

“Delivery Has Occurred or Services Have Been Performed” – The Company delivers the products prior to recognizing revenue or performs services as per contractual terms. Product is considered delivered upon delivery to a customer’s designated location and services are considered performed upon completion of the Company’s contractual obligations.

 

“The Fee for the Arrangement is Fixed or Determinable” – Prior to recognizing revenue, an amount is either fixed or determinable under the terms of the written contract. The price is negotiated at the outset of the arrangement and is not subject to refund or adjustment during the initial term of the arrangement. 

 

“Collectability is Reasonably Assured” – The Company determines that collectability is reasonably assured prior to recognizing revenue. Collectability is assessed on a customer-by-customer basis based on criteria outlined by Management. The Company does not enter into arrangements unless collectability is reasonably assured at the outset. Existing customers are subject to ongoing credit evaluations based on payment history and other factors. If it is determined during the arrangement that collectability is not reasonably assured, revenue is recognized on a cash basis.

 

The Company records certain consideration paid to customers for services or placement fees as a reduction in revenue rather than as an expense. The Company reports these items on the income statement as a reduction in revenue and as a corresponding reduction in marketing and selling expenses.

 

Revenues from the Company’s brewpub and gift store are recognized when sales have been completed.

 

Allowance for Doubtful Accounts

 

The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Management considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic and industry trends and changes in customer payment terms. Balances over 90 days past due and other higher risk amounts are reviewed individually for collectability. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. Based on Management’s assessment, the Company provides for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances that remain outstanding after the Company has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.

 

Inventories

 

Inventories are stated at the lower of average cost, which approximates the first-in, first-out method, or market (net realizable value). The Company regularly reviews its inventories for the presence of obsolete product attributed to age, seasonality and quality. Inventories that are considered obsolete are written off or adjusted to carrying value.

 

Deferred Financing Costs

 

Costs relating to obtaining financing are capitalized and amortized over the term of the related debt. When a loan is paid in full, any unamortized financing costs are removed from the related accounts and charged to operations. Deferred financing costs related to a borrowing made in June 2011 were $225,000. Amortization of deferred financing costs charged to operations was $22,500 for the six months ended June 30, 2015 and 2014.

 

Concentration of Credit Risks

 

Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, and accounts receivable. Substantially all of the Company’s cash and cash equivalents are deposited with commercial banks in the US and the UK that have minimal credit risk. Accounts receivable are generally unsecured and customers are subject to an initial credit review and ongoing monitoring. Wholesale distributors account for substantially all accounts receivable; therefore, this risk concentration is limited due to the number of distributors and the laws regulating the financial affairs of distributors of alcoholic beverages. The Company has approximately $1,600 in cash deposits and $2,294,200 of accounts receivable due from customers located in the UK as of June 30, 2015.

 

Income Taxes

 

The Company accounts for income taxes in accordance with ASC 750 which requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards. The Company periodically assesses uncertain tax positions that the Company has taken or expects to take on a tax return, including a decision whether to file or not to file a return in a particular jurisdiction. The Company evaluated its tax positions and determined that there were no uncertain tax benefits as of June 30, 2015 and December 31, 2014.

 

Basic and Diluted Earnings (Loss) per Share

 

The basic earnings (loss) per share is computed by dividing the earnings (loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period. Basic net earnings (loss) per share exclude the dilutive effect of stock options or warrants and convertible notes. If the Company’s operations result in net loss for any period, diluted net loss per share would be the same as basic net loss per share, since the effect of any potentially dilutive securities would be anti-dilutive. Therefore, the conversion of the related party convertible notes (see “Subordinated Convertible Notes Payable” below) has been excluded from the Company’s calculation of net loss per share. The computations of basic and dilutive net loss per share are as follows:

 

    Three months ended     Six months ended  
    6/30/2015     6/30/2014     6/30/2015     6/30/2014  
Net loss   $ (85,700 )     (137,000 )   $ (759,600 )     (605,600 )
Weighted average common shares outstanding     12,611,133       12,611,133       12,611,133       12,611,133  
Basic net loss per share   $ (0.01 )     (0.01 )   $ (0.06 )     (0.05 )
Interest expense on convertible notes   $ -       -     $ -       -  
Loss for computing diluted net income per share   $ (85,700 )     (137,000 )   $ (759,600 )     (605,600 )
Incremental shares from assumed exercise of dilutive securities     -       -       -       -  
Dilutive potential common shares     12,611,133       12,611,133       12,611,133       12,611,133  
Diluted net loss per share   $ (0.01 )     (0.01 )   $ (0.06 )     (0.05 )

 

Foreign Currency Translation

 

The Company has subsidiaries located in the UK, where the local currency, the UK Pound Sterling, is the functional currency. Financial statements of these subsidiaries are translated into US dollars using period-end exchange rates for assets and liabilities and average exchange rates during the period for revenues and expenses. Cumulative translation adjustments associated with net assets or liabilities are reported in non-owner changes in equity. Any exchange rate gains or losses related to foreign currency transactions are recognized in the income statement as incurred, in the same financial statement caption as the underlying transaction, and are not material for any year shown. Cash flows were translated at the average exchange rates for the six months then ended. Changes in cash resulting from the translations are presented as a separate item in the statements of cash flows.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the US includes having the Company make estimates and assumptions affecting the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. The amounts estimated could differ from actual results. Significant estimates include the allowance for bad debts, depreciation and amortization periods, and the future utilization of deferred tax assets.

 

Comprehensive Income (Loss)

 

Comprehensive income (loss) is composed of the Company’s net loss and changes in equity from non-stockholder sources. The accumulated balances of these non-stockholder sources are reflected as a separate item in the equity section of the balance sheet.

 

Reportable Segments

 

The Company manages its operations through two business segments: (i) brewing operations and tasting room operations in the US and distributor operations in Canada (the “North American Territory”) and (ii) distributor operations in Europe, including the UK (the “Foreign Territory”). The Company evaluates performance based on net operating profit. Where applicable, portions of the administrative function expenses are allocated between the operating segments. The operating segments do not share manufacturing or distribution facilities. In the event any materials and/or services are provided to one operating segment by the other, the transaction is valued according to the Company’s transfer policy, which approximates market price. The costs of operating the manufacturing plants are captured discretely within each segment. The Company’s property, plant and equipment, inventory, and accounts receivable are captured and reported discretely within each operating segment.

XML 37 R35.htm IDEA: XBRL DOCUMENT v3.2.0.727
Notes Payable to Related Party (Details Narrative) - USD ($)
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Proceeds issuance of notes $ 500,000 $ 1,000,000
Catamaran Services, Inc. [Member]    
Note payable to related party 1,571,800  
Interest payable $ 71,800  
XML 38 R22.htm IDEA: XBRL DOCUMENT v3.2.0.727
Description of Operations and Summary of Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2015
Accounting Policies [Abstract]  
Schedule of Basic and Dilutive Net Loss Per Share

The computations of basic and dilutive net loss per share are as follows:

 

    Three months ended     Six months ended  
    6/30/2015     6/30/2014     6/30/2015     6/30/2014  
Net loss   $ (85,700 )     (137,000 )   $ (759,600 )     (605,600 )
Weighted average common shares outstanding     12,611,133       12,611,133       12,611,133       12,611,133  
Basic net loss per share   $ (0.01 )     (0.01 )   $ (0.06 )     (0.05 )
Interest expense on convertible notes   $ -       -     $ -       -  
Loss for computing diluted net income per share   $ (85,700 )     (137,000 )   $ (759,600 )     (605,600 )
Incremental shares from assumed exercise of dilutive securities     -       -       -       -  
Dilutive potential common shares     12,611,133       12,611,133       12,611,133       12,611,133  
Diluted net loss per share   $ (0.01 )     (0.01 )   $ (0.06 )     (0.05 )

XML 39 R36.htm IDEA: XBRL DOCUMENT v3.2.0.727
Subordinated Convertible Notes Payable to Related Party (Details Narrative) - USD ($)
6 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Unsecured convertible notes $ 3,634,000  
Accrued interest $ 1,718,600 $ 1,673,500
One UBA Note [Member]    
Debt instruments conversion price per share $ 1.44  
13 UBA Notes [Member]    
Debt instruments conversion price per share $ 1.50  
Subordinated Convertible Notes Payable [Member]    
Percentage of convertible notes interest, prime rate plus 1.50%  
Percentage of convertible notes interest rate, maximum 10.00%  
Convertible notes payable maturity date, description The UBA notes have been extended until June 2015 but have automatic renewals after such maturity date for successive one year terms, provided that either the Company or UBA may elect not to extend the term upon written notice given to the other party no more than 60 days and no fewer than 30 days prior to the expiration of such term. UBA may demand payment within 60 days of the end of the extension period but is precluded from doing so because the notes are subordinated to long-term debt agreements with MB Financial maturing in June 2016.  
XML 40 R24.htm IDEA: XBRL DOCUMENT v3.2.0.727
Secured Notes Payable (Tables)
6 Months Ended
Jun. 30, 2015
Long-term Debt, Unclassified [Abstract]  
Summary of Long-term Debt

7. Secured Notes Payable

 

Maturities of secured notes payable for succeeding years are as follows:

 

    June 30, 2015     December 31, 2014  
Loan from Cole Taylor, payable in monthly installments of $12,300, plus interest (including default interest) at prime plus 4% with a balloon payment of approximately $2,202,500 in June 2016; secured by substantially all assets of Releta and MBC.   $ 2,349,900     $ 2,423,600  
                 
Loans from Cole Taylor, payable in monthly installments of $32,300 plus interest (including default interest) at prime plus 3.5% with a balloon payment of approximately $908,700 in June 2016; secured by substantially all assets of Releta and MBC.     1,296,000       1,489,700  
      3,645,900       3,913,300  
                 
Less current maturities     3,645,900       3,913,300  
    $ -     $ -  

XML 41 Show.js IDEA: XBRL DOCUMENT /** * Rivet Software Inc. * * @copyright Copyright (c) 2006-2011 Rivet Software, Inc. All rights reserved. * Version 2.4.0.3 * */ var Show = {}; Show.LastAR = null, Show.hideAR = function(){ Show.LastAR.style.display = 'none'; }; Show.showAR = function ( link, id, win ){ if( Show.LastAR ){ Show.hideAR(); } var ref = link; do { ref = ref.nextSibling; } while (ref && ref.nodeName != 'TABLE'); if (!ref || ref.nodeName != 'TABLE') { var tmp = win ? win.document.getElementById(id) : document.getElementById(id); if( tmp ){ ref = tmp.cloneNode(true); ref.id = ''; link.parentNode.appendChild(ref); } } if( ref ){ ref.style.display = 'block'; Show.LastAR = ref; } }; Show.toggleNext = function( link ){ var ref = link; do{ ref = ref.nextSibling; }while( ref.nodeName != 'DIV' ); if( ref.style && ref.style.display && ref.style.display == 'none' ){ ref.style.display = 'block'; if( link.textContent ){ link.textContent = link.textContent.replace( '+', '-' ); }else{ link.innerText = link.innerText.replace( '+', '-' ); } }else{ ref.style.display = 'none'; if( link.textContent ){ link.textContent = link.textContent.replace( '-', '+' ); }else{ link.innerText = link.innerText.replace( '-', '+' ); } } }; XML 42 R7.htm IDEA: XBRL DOCUMENT v3.2.0.727
Liquidity and Management Plans
6 Months Ended
Jun. 30, 2015
Liquidity And Management Plans  
Liquidity and Management Plans

2. Liquidity and Management Plans

 

On June 23, 2011, MBC and Releta entered into a Credit and Security Agreement (as amended, the “Credit and Security Agreement”) with Cole Taylor Bank, an Illinois banking corporation (“Cole Taylor”). Cole Taylor merged into MB Financial Bank, an Illinois banking corporation (“MB Financial”) on August 18, 2014. As used in this Quarterly Report, “Lender” shall refer to Cole Taylor prior to August 18, 2014 and to MB Financial, as successor in interest to Cole Taylor, on or after August 18, 2014. The Credit and Security Agreement provided a credit facility with a maturity date of June 23, 2016 of up to $10,000,000 consisting of a $4,119,000 revolving facility, a $1,934,000 machinery and equipment term loan, a $2,947,000 real estate term loan and a $1,000,000 capital expenditure line of credit. Convertible promissory notes issued to United Breweries of America, Inc. (“UBA”), one of the Company’s principal shareholders, are subordinated to Lender’s facility.

 

The Credit and Security Agreement requires MBC and Releta to maintain certain minimum fixed charge coverage ratios for trailing twelve month periods and minimum tangible net worth. The minimum tangible net worth MBC and Releta are required to maintain is subject to increase based on the net income of MBC and Releta. On March 29, 2013, MBC, Releta, and Lender entered into a First Amendment to the Credit and Security Agreement to clarify the method by which the fixed charge coverage ratio is calculated, with retrospective application.

 

The required fixed charge coverage ratio for the trailing twelve month periods ended March 31, 2013 onwards fell short of the required ratio. The tangible net worth fell short of the required amount for the period beginning June 1, 2013 onwards.

 

On September 18, 2013, MBC and Releta received a notice (the “Default Notice”) from Lender regarding its intention to exercise certain rights with respect to events of default of the Company pursuant to the Credit and Security Agreement.

  

The Credit and Security Agreement provides that the failure of MBC and Releta to observe any covenant will constitute an event of default under the Credit and Security Agreement. Under the Credit and Security Agreement, upon the occurrence of an event of default, all of MBC’s and Releta’s obligations under the Credit and Security Agreement may, at the option of the Lender, be declared, and immediately shall become, due and payable, without notice of any kind. The event of default shall be deemed continuing until waived in writing by the Lender. The Default Notice states that Lender has elected, effective September 1, 2013, to charge a default interest rate equal to two percent (2%) per annum in excess of the interest rate otherwise payable under the Credit and Security Agreement. The Company estimates that the increased rate currently results in approximately $120,000 additional annual interest expense.

 

On April 18, 2014, MBC and Releta received a second notice (the “Second Default Notice”) from Lender regarding its intention to exercise certain rights with respect to events of default of the Company pursuant to the Credit and Security Agreement.

 

The Second Default Notice required MBC and Releta to engage a consultant to perform a viability analysis and prepare a revised projection for 2014.

 

Effective August 20, 2014, pursuant to a notice to MBC and Releta dated August 18, 2014 (the “Third Default Notice”) which referred to MBC’s and Releta’s continued failure to meet the required fixed charge coverage ratio and the tangible net worth requirement, Lender notified MBC and Releta that it would reduce the advance rate for (i) eligible finished goods and raw material inventory and (ii) eligible work-in progress inventory by 2% each month. The advance rates are used in the calculation of the borrowing base of each of MBC and Releta, which is used in the determination of the amount available to each of MBC and Releta pursuant to the revolving facility. Under the terms of the Credit and Security Agreement, if such availability is less than $0, or if certain components of the borrowing base of each of MBC and Releta fall below certain limits in relation to outstanding revolving loans, such difference shall be immediately due and payable.

 

On January 21, 2015, MBC, Releta, and Lender entered into a Second Amendment (the “Second Amendment”) to the Credit and Security Agreement.

 

The Second Amendment reduced the maximum amount of the Revolver from $4,119,000 to $2,500,000. The Second Amendment also changed the definition of borrowing base (including by lowering certain advance rates) such that the calculation of the borrowing base will result in a lower number than it would have if calculated prior to the effectiveness of the Second Amendment. The borrowing base is used in the determination of the amount available to each borrower (a “Borrower”) pursuant to the Revolver. Pursuant to the Credit and Security Agreement, if such availability is less than $0, or if certain components of the borrowing base fall below certain limits in relation to outstanding revolving loans, such difference shall be immediately due and payable.

 

The Second Amendment reduced the advance rate for (i) eligible finished goods and raw material inventory and (ii) eligible work-in progress inventory by two percent (2%) and continues to reduce each by an additional two percent (2%) on the 20th day of each month thereafter. The advance rates are used in the calculation of the borrowing base of each Borrower, which is used in the determination of the amount available to each Borrower pursuant to the Revolver. As stated above, if such availability is less than $0, or if certain components of the borrowing base fall below certain limits in relation to outstanding revolving loans, such difference shall be immediately due and payable.

 

Lender has not waived the events of default described in the Default Notice, the Second Default Notice or the Third Default Notice and has reserved the right to all other available rights and remedies under the Credit and Security Agreement, certain other related documents and applicable law. Lender could declare the full amount owed under the Credit and Security Agreement due and payable at any time for any reason or no reason. Since receiving the Second Amendment, the Company has not received any notice or other communication from Lender that it intends to exercise any other remedies available to it under the Credit and Security Agreement in connection with the events of default. Lender continues to charge a default interest rate equal to two percent (2%) per annum in excess of the interest rate otherwise payable under the Credit and Security Agreement. The exercise of additional remedies by Lender may have a material adverse effect on the Company’s financial condition and the Company’s ability to continue to operate. If it becomes necessary for MBC and Releta to seek additional financing, there is no guarantee that MBC and Releta will be able to obtain such financing on terms favorable to the Company or on any terms.

 

Pursuant to a letter from UBHL dated November 11, 2013, UBHL indicated a willingness to invest up to $2,000,000 in the Company. On January 22, 2014, Catamaran Services, Inc., (“Catamaran”), a related party (see “Notes Payable to Related Party”, below), provided a note loan of $500,000 repayable upon receipt of an equity investment by the Company’s majority shareholder. On April 24, 2014, another note loan of $500,000 was received from Catamaran on terms similar to the previous note. On February 5, 2015, another note loan of $500,000 was received from Catamaran on terms similar to the previous notes. On June 30, 2015, another note was issued to Catamaran for $500,000 on terms similar to the previous notes (the proceeds of such note were received by the Company on July 6, 2015). On each date on or prior to which Catamaran provided a note loan, the Company received a letter from Lender permitting the Company to obtain loans subject to certain conditions, including that no portion of such loans would be payable until either (a) certain obligations of the Company to Lender pursuant to the Agreement were satisfied in full, or (b) such payment was made from an equity investment by the Company’s majority shareholder.

 

In response to the losses incurred in connection with the Company’s operations, UBHL, the Company’s indirect majority shareholder, issued a letter of comfort on March 5, 2015 (the “Letter of Comfort”), to confirm that UBHL had agreed to provide funding on an as needed basis to ensure that the Company is able to meet its financial obligations as and when they fall due. The Letter of Comfort does not specify either the terms of UBHL’s support, or a maximum dollar limit and is not a legally binding agreement. However, to date UBHL through its affiliated company, Catamaran, has provided capital for working capital needs. UBHL’s financial support is contingent upon compliance with any applicable exchange control requirements, other applicable laws, and regulations relating to the transfer of funds from India. The Letter of Comfort does not specify any time limit for extending support. If it becomes necessary to seek UBHL’s financial assistance under the Letter of Comfort and UBHL is either unable or unwilling to provide such financial assistance to MBC, it may result in a material adverse effect on the Company’s financial position and on its ability to continue operations. UBHL controls the Company’s two largest shareholders, United Breweries of America, Inc. (“UBA”) and Inversiones, and as such, is the Company’s indirect majority shareholder. The Company’s Chairman of the Board, Dr. Vijay Mallya, is also the Chairman of the board of directors of UBHL.

 

As of June 30, 2015, the fixed charge coverage ratio was required to be 1.10 to 1. The Company calculated that the fixed charge coverage ratio as of June 30, 2015 was -1.12 to 1. The Company calculated that the required tangible net worth of MBC and Releta was $6,181,400 as of June 30, 2015 and the actual tangible net worth on such date was $3,676,600. The Company does not anticipate that it will regain compliance with the required fixed charge coverage ratio or the minimum tangible net worth in the immediate future.

 

At June 30, 2015, the Company had cash and cash equivalents of $121,500, an accumulated deficit of $17,006,700, and a working capital deficit of $11,820,200 due to losses incurred, reclassification of debts owing to MB Financial as a result of the default under the Credit and Security Agreement described above and reclassification of subordinated notes payable to UBA as a result of a subordination agreement, which subordinated notes are maturing in June 2016. In addition, the book value of the Company’s assets was lower than the book value of its liabilities at June 30, 2015.

 

If the Company is unable to find any source of funds, it may result in a material adverse effect on the Company’s ability to continue operations. For example, MB Financial may seek to satisfy any outstanding obligations through recourse against the applicable pledged collateral which may include the Company’s real property, fixed assets and current assets. The loss of any material pledged asset would likely have a material adverse effect on the Company’s financial position and results of operations.

 

 Management has taken several actions to reduce the Company’s working capital needs through June 30, 2016, including reducing discretionary expenditures, reducing manpower, securing additional brewing contracts in an effort to utilize a portion of excess production capacity, and pursuing export opportunities. The current revenue from operations are insufficient to meet the working capital needs of the Company over the next 12 months. The Company has requested UBHL to make a capital infusion. If UBHL is unwilling or unable to infuse additional capital, the Company will seek capital from other sources, including outside investors. If sufficient capital for working capital needs is not obtained, the Company may sell some of its operating assets.

  

If it becomes necessary to seek UBHL’s financial assistance under the Letter of Comfort and UBHL does not fulfill its commitment to MBC, it may result in a material adverse effect on the Company’s financial position and on its ability to continue operations. In addition, the Company’s lenders may seek to satisfy any outstanding obligations through recourse against the applicable pledged collateral which may include the Company’s real property and fixed and current assets. The loss of any material pledged asset would likely have a material adverse effect on the Company’s financial position and results of operations.

XML 43 R3.htm IDEA: XBRL DOCUMENT v3.2.0.727
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2015
Dec. 31, 2014
Statement of Financial Position [Abstract]    
Preferred stock, Series A, liquidation preference per share $ 1 $ 1
Preferred stock, no par value    
Preferred stock, Series A, shares authorized 10,000,000 10,000,000
Preferred stock, Series A, shares issued 227,600 227,600
Preferred stock, Series A, shares outstanding 227,600 227,600
Common stock, no par value    
Common stock, shares authorized 30,000,000 30,000,000
Common stock, shares issued 12,611,133 12,611,133
Common stock, shares outstanding 12,611,133 12,611,133
XML 44 R17.htm IDEA: XBRL DOCUMENT v3.2.0.727
Related-Party Transactions
6 Months Ended
Jun. 30, 2015
Related Party Transactions [Abstract]  
Related-Party Transactions

12. Related-Party Transactions

 

The Company conducts business with United Breweries of America, Inc. (“UBA”), which owns approximately 25% of the Company’s common stock. Until October 2013, KBEL had significant transactions with Shepherd Neame, Ltd., which is a related party with respect to a former Board member. KBEL also had significant transactions with HUK, a related party with respect to one of MBC’s Board members, beginning in October 2013.

 

The following table reflects the value of such transactions during the six months ended June 30, 2015 and 2014 and the balances outstanding as of June 30, 2015 and December 31, 2014.

 

TRANSACTIONS   June 30, 2015     June 30, 2014  
Purchases from HUK   $ 5,530,600     $ 6,523,700  
Expense reimbursement including interest to HUK   $ 464,600     $ 548,100  
Interest expense related to UBA convertible notes   $ 45,100     $ 45,100  
Interest expenses related to Catamaran notes   $ 33,100     $ 14,800  
Borrowing from Catamaran   $ 500,000     $ 1,000,000  

 

ACCOUNT BALANCES   June 30, 2015     Dec 31, 2014  
Accounts payable and accrued liability to HUK   $ 1,369,600     $ 1,802,300  
Notes payable to Catamaran   $ 1,571,800     $ 1,038,700  
Notes payable to UBA   $ 3,634,000     $ 3,588,900  

XML 45 R1.htm IDEA: XBRL DOCUMENT v3.2.0.727
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2015
Aug. 13, 2015
Document And Entity Information    
Entity Registrant Name MENDOCINO BREWING CO INC  
Entity Central Index Key 0000919134  
Document Type 10-Q  
Document Period End Date Jun. 30, 2015  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   12,611,133
Trading Symbol MENB  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2015  
XML 46 R18.htm IDEA: XBRL DOCUMENT v3.2.0.727
Segment Information
6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Segment Information

13. Segment Information

 

The Company’s business presently consists of two segments – the North American Territory and the Foreign Territory. The Company’s operations in the North American Territory consist primarily of brewing and marketing proprietary craft beers. For distribution in the North American Territory, the Company brews its brands in its own facilities, which are located in Ukiah, California and Saratoga Springs, New York. The Company’s operations in the Foreign Territory, which are conducted through its wholly-owned subsidiary UBIUK and UBIUK’s wholly-owned subsidiary KBEL, consist primarily of the marketing and distribution of Kingfisher Premium Lager in the Foreign Territory.

 

A summary of each segment is as follows:

 

Six months ended June 30, 2015
    North
American
Territory
    Foreign 
 Territory
    Total  
                   
Net Sales   $ 5,540,200     $ 9,292,500     $ 14,832,700  
Operating Income (Loss)   $ (586,800 )   $ 96,500     $ (490,300 )
Identifiable Assets   $ 13,183,400     $ 4,106,600     $ 17,290,000  
Depreciation & Amortization   $ 336,700     $ 244,700     $ 581,400  
Capital Expenditures   $ 70,400     $ 269,300     $ 339,700  

 

Six months ended June 30, 2014
    North
American
Territory
    Foreign 
Territory
    Total  
                   
Net Sales   $ 5,979,500     $ 10,783,200     $ 16,762,700  
Operating Income (loss)   $ (710,300 )   $ 428,800     $ (281,500 )
Identifiable Assets   $ 14,749,600     $ 4,539,500     $ 19,289,100  
Depreciation & Amortization   $ 339,200     $ 213,400     $ 552,600  
Capital Expenditures   $ 57,700     $ 187,000     $ 244,700  

XML 47 R4.htm IDEA: XBRL DOCUMENT v3.2.0.727
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Income Statement [Abstract]        
Sales $ 8,264,800 $ 9,079,200 $ 15,072,100 $ 17,065,900
Excise taxes 126,200 166,500 239,400 303,200
Net Sales 8,138,600 8,912,700 14,832,700 16,762,700
Cost of goods sold 5,649,200 6,121,900 10,247,700 11,643,600
Gross Profit 2,489,400 2,790,800 4,585,000 5,119,100
Operating Expenses        
Marketing 1,457,100 1,607,300 2,860,000 3,135,200
General and administrative 1,003,700 1,145,100 2,215,300 2,265,400
Total Operating Expense 2,460,800 2,752,400 5,075,300 5,400,600
Income (loss) from operations 28,600 38,400 (490,300) (281,500)
Other Income (Expense)        
Other income $ 40,500 8,800 $ 43,600 10,700
Profit on sale of asset   5,200   16,300
Interest expense $ (154,800) (189,400) $ (309,100) (351,100)
Total Other Expense (114,300) (175,400) (265,500) (324,100)
Loss before income taxes $ (85,700) $ (137,000) (755,800) $ (605,600)
Provision for income taxes     3,800  
Net loss $ (85,700) $ (137,000) (759,600) $ (605,600)
Foreign currency translation loss (30,000) (28,900) (2,900) (40,300)
Comprehensive Loss $ (115,700) $ (165,900) $ (762,500) $ (645,900)
Net loss per common share (basic) $ (0.01) $ (0.01) $ (0.06) $ (0.05)
Net loss per common share (diluted) $ (0.01) $ (0.01) $ (0.06) $ (0.05)
Weighted average common shares outstanding Basic 12,611,133 12,611,133 12,611,133 12,611,133
Weighted average common shares outstanding diluted 12,611,133 12,611,133 12,611,133 12,611,133
XML 48 R12.htm IDEA: XBRL DOCUMENT v3.2.0.727
Secured Notes Payable
6 Months Ended
Jun. 30, 2015
Long-term Debt, Unclassified [Abstract]  
Secured Notes Payable

7. Secured Notes Payable

 

Maturities of secured notes payable for succeeding years are as follows:

 

    June 30, 2015     December 31, 2014  
Loan from Cole Taylor, payable in monthly installments of $12,300, plus interest (including default interest) at prime plus 4% with a balloon payment of approximately $2,202,500 in June 2016; secured by substantially all assets of Releta and MBC.   $ 2,349,900     $ 2,423,600  
                 
Loans from Cole Taylor, payable in monthly installments of $32,300 plus interest (including default interest) at prime plus 3.5% with a balloon payment of approximately $908,700 in June 2016; secured by substantially all assets of Releta and MBC.     1,296,000       1,489,700  
      3,645,900       3,913,300  
                 
Less current maturities     3,645,900       3,913,300  
    $ -     $ -  

 

XML 49 R11.htm IDEA: XBRL DOCUMENT v3.2.0.727
Subordinated Convertible Notes Payable To Related Party
6 Months Ended
Jun. 30, 2015
Subordinated Convertible Notes Payable To Related Party  
Subordinated Convertible Notes Payable To Related Party

6. Subordinated Convertible Notes Payable to Related Party

 

Subordinated convertible notes to a related party included notes payable to UBA (the “UBA Notes”) for a total value of $3,634,000 as of June 30, 2015, including interest at the prime rate plus 1.5% per year, but not to exceed 10%. Thirteen of the UBA Notes are convertible into common stock at a rate of $1.50 per share and one UBA Note is convertible at a rate of $1.44 per share. The UBA Notes have been extended until June 2016 and have automatic renewals after such maturity date for successive one year terms, provided that either the Company or UBA may elect not to extend the term upon written notice given to the other party no more than 60 days and no fewer than 30 days prior to the expiration of the applicable term. Under the terms of the UBA Notes, UBA may demand payment within 60 days following the end of the extension period. UBA has agreed to subordinate the UBA Notes to the Company’s long-term debt agreements with MB Financial, as successor-in-interest to Cole Taylor, which mature in June 2016. Therefore, the Company will not require the use of working capital to repay any of the UBA Notes until the Lender’s facility is repaid. The UBA Notes include $1,718,600 and $1,673,500 of accrued interest at June 30, 2015 and December 31, 2014, respectively.

XML 50 R23.htm IDEA: XBRL DOCUMENT v3.2.0.727
Inventories (Tables)
6 Months Ended
Jun. 30, 2015
Inventory Disclosure [Abstract]  
Schedule of Inventories

Inventories are stated at the lower of average cost or market and consist of the following:

 

    June 30, 2015     December 31, 2014  
Raw Materials   $ 602,200     $ 740,300  
Beer-in-process     379,600       259,400  
Finished Goods     632,200       1,034,200  
Merchandise     69,000       84,000  
TOTAL   $ 1,683,000     $ 2,117,900  

XML 51 R19.htm IDEA: XBRL DOCUMENT v3.2.0.727
Unrestricted Net Assets
6 Months Ended
Jun. 30, 2015
Unrestricted Net Assets  
Unrestricted Net Assets

14. Unrestricted Net Assets

 

The Company’s wholly-owned subsidiary, UBIUK, had undistributed losses of $700,300 as of June 30, 2015. Under KBEL’s line of credit agreement with RBS, distributions and other payments to MBC from KBEL are not permitted if retained earnings drop below $1,572,700. Condensed financial information of MBC, together with its other subsidiary, Releta, is as follows:

 

Balance Sheets

 

Balance Sheets   June 30, 2015 (unaudited)     December 31, 2014  
             
Assets                
Cash and cash equivalents   $ 119,900     $ 61,500  
Accounts receivable, net     1,198,400       1,365,000  
Inventories     1,609,300       2,047,700  
Other current assets     327,300       173,600  
Total current assets     3,254,900       3,647,800  
                 
Investment in subsidiary     1,225,000       1,225,000  
Property and equipment     9,660,700       9,904,500  
Intercompany receivable     258,000       421,900  
Other assets     267,800       310,400  
Total assets   $ 14,666,400     $ 15,509,600  
                 
Liabilities                
Line of credit   $ 814,000     $ 1,192,900  
Accounts payable     2,515,500       2,620,000  
Accrued liabilities     1,161,200       1,031,300  
Note payable related party     1,571,800       1,038,700  
Subordinated convertible notes payable     3,634,000       -  
Current maturities of debt, leases and severance     4,107,500       3,918,900  
Total current liabilities     13,804,000       9,801,800  
                 
Long-term capital leases     9,400       12,100  
Subordinated convertible notes payable     -       3,588,900  
Severance payable     304,100       760,100  
Total liabilities     14,117,500       14,162,900  
                 
Stockholders’ equity                
Common stock     15,100,300       15,100,300  
Preferred stock     227,600       227,600  
Accumulated deficit     (14,779,000 )     (13,981,200 )
Total stockholders’ equity     548,900       1,346,700  
Total liabilities and stockholders’ equity   $ 14,666,400     $ 15,509,600  

   

Statements of Operations   Three months ended June 30,     Six months ended June 30,  
    2015     2014     2015     2014  
    (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Net sales   $ 3,166,500     $ 3,244,600     $ 5,540,200     $ 5,979,500  
Cost of goods sold     (2,471,300 )     (2,699,900 )     (4,593,900 )     (5,058,300 )
Sales, marketing, and retail expenses     (322,300 )     (341,100 )     (675,700 )     (706,400 )
General and administrative expenses     (380,600 )     (424,800 )     (860,700 )     (928,200 )
Loss from operations     (7,700 )     (221,200 )     (590,100 )     (713,400 )
                                 
Other income     40,500       8,800       43,600       10,700  
Interest expense     (124,500 )     (130,900 )     (247,500 )     (256,600 )
Provision for taxes     -       -       (3,800 )     -  
Net loss   $ (91,700 )   $ (343,300 )   $ (797,800 )   $ (959,300 )

 

 Statements of Cash Flows    Six months ended June 30,  
    2015     2014  
    (unaudited)     (unaudited)  
Cash flows from operating activities   $ 113,900     $ (837,900 )
Purchase of property and equipment     (70,400 )     (57,700 )
Net borrowing (repayment) on line of credit     (378,900 )     (20,500 )
Borrowing on note payable     500,000       1,000,000  
Repayment on long term debt     (267,400 )     (267,400 )
Payment on obligation under capital lease     (2,700 )     (2,600 )
Net change in payable to UBIUK     163,900       128,700  
Decrease in cash     58,400       (57,400 )
Cash, beginning of period     61,500       113,700  
Cash, end of period   $ 119,900     $ 56,300  

 

XML 52 R15.htm IDEA: XBRL DOCUMENT v3.2.0.727
Severance Payable
6 Months Ended
Jun. 30, 2015
Severance Payable  
Severance Payable

10. Severance Payable

 

The Company is a party to a Separation and Severance Agreement (the “Separation Agreement”) with Mr. Yashpal Singh, its President and Chief Executive Officer. Pursuant to the terms of the Separation Agreement, upon Mr. Singh’s (i) termination of employment for Good Reason (as defined in the Separation Agreement), (ii) termination of employment at the end of the employment term, (iii) death, (iv) disability or (v) termination by the Company without Cause (as defined in the Separation Agreement), he shall be entitled to certain severance benefits and payments. The severance payment shall equal the product of 2.5 times his average monthly base salary (calculated over the twelve (12) month period preceding the termination event), multiplied by the number of years (on a pro-rated basis) he had been employed by the Company at the Termination Date (as defined in the Separation Agreement); provided, however, that the severance payment may not exceed thirty (30) months of Mr. Singh’s average monthly base salary (calculated over the twelve (12) months preceding his termination date). Payments due to Mr. Singh under the Separation Agreement shall be paid in equal monthly installments by the Company over a 20 month period. The receipt of payments is contingent on Mr. Singh executing a release of claims for the benefit of the Company. As of June 30, 2015, the Company estimated this obligation to be $760,100.

XML 53 R13.htm IDEA: XBRL DOCUMENT v3.2.0.727
Long-Term Debt - Related Party
6 Months Ended
Jun. 30, 2015
Long-term Debt - Related Party  
Long-Term Debt - Related Party

8. Long-Term Debt – Related Party

 

    June 30, 2015     December 31, 2014  
Loan from Heineken UK Limited, payable in quarterly installments of $137,900, plus interest at UK prime plus 5% maturing on October 9, 2016, secured by licensing rights pursuant to a Sub-License Agreement.   $ 786,300     $ 1,038,600  
                 
Less current maturities     524,200       519,300  
    $ 262,100     $ 519,300  

 

Maturities of debt for succeeding years are as follows:

 

Six months ending December 31, 2015 $ 262,100  
Year ending December 31, 2016 $ 524,200  

 

On April 18, 2013, KBEL entered into a Loan Agreement (the “HUK Loan Agreement”) with HUK pursuant to which HUK provided KBEL with a secured term loan of £1,000,000 on October 9, 2013 to be repaid in twelve quarterly installment of £83,333.33 each, commencing from January 9, 2014 along with interest at the rate of 5% above the Bank of England base rate. Prepayment is permitted. Upon an Event of Default, as defined in the HUK Loan Agreement, if HUK and KBEL fail to agree on a payment plan acceptable to HUK, HUK may, among other remedies, declare the loan immediately due and repayable or exercise its right to an exclusive license pursuant to the Sub-License Agreement as described and defined in the HUK Loan Agreement.

XML 54 R14.htm IDEA: XBRL DOCUMENT v3.2.0.727
Capital Lease Obligations
6 Months Ended
Jun. 30, 2015
Capital Lease Obligations [Abstract]  
Capital Lease Obligations

9. Capital Lease Obligations

 

The Company leases certain assets under an agreement that is classified as a capital lease. The future minimum lease payments required under the capital lease and the present value of the net minimum lease payments as of June 30, 2015 are as follows:

  

Six months Ending December 31, 2015   $ 14,200  
Year Ending December 31, 2016     28,500  
Year Ending December 31, 2017     28,500  
Year Ending December 31, 2018     22,100  
Year Ending December 31, 2019     22,100  
Year Ending December 31, 2020     11,000  
      126,400  
Less amounts representing interest     (12,900 )
Present value of minimum lease payments     113,500  
Less current maturities     (25,300 )
Non-current leases payable   $ 88,200  

XML 55 R16.htm IDEA: XBRL DOCUMENT v3.2.0.727
Commitments and Contingencies
6 Months Ended
Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

11. Commitments and Contingencies

 

Purchase of raw materials

 

Production of the Company’s beverages requires quantities of various processed agricultural products, including malt and hops for beer. The Company fulfills its commodities requirements through purchases from various sources, some through contractual arrangements and others on the open market.

 

Legal

 

The Company is periodically involved in legal actions and claims that arise as a result of events that occur in the normal course of operations. Management and the Company’s legal counsel assess such contingent liabilities, and such assessment inherently involves the exercise of judgment.

 

On September 26, 2014, The New Buffalo Brewing Co., Inc. (“NBB”) initiated an action against Releta in the Supreme Court of the State of New York for the County of Erie to recover damages for alleged breaches of a Brewing Production Agreement between NBB and Releta dated September 6, 2013 (the “Brewing Production Agreement”), as well as for a declaration rescinding and nullifying the Brewing Production Agreement, and, in case of Releta’s failure to answer or appear, damages resulting from the alleged breaches, rescission of the Brewing Production Agreement, attorneys’ fees and any other relief deemed proper by the court. In a demand letter to Releta dated October 16, 2014, NBB demanded payment of the sum of $500,000. The Company has engaged a law firm in New York to respond.

 

On June 3, 2015, IAE International Aero Engines AG (“IAE”) served the Company with a complaint (the “Complaint”), filed in Marin County Superior Court, California (the “Court”), which requests, among other things, (i) that the Court recognize and enforce a foreign judgment against an Indian corporate entity (which is an affiliate of the Company), the alleged judgment debtor, and (ii) that such judgment be made enforceable against any assets of the Company (and of the other defendants) that are located in California, on the alleged ground that the Company (along with the other defendants) is an “alter ego” of the alleged judgment debtor. Along with the Complaint, IAE also served the Company with an ex parte application for a right to attach order and a writ of attachment, and, in the alternative, a temporary protective order (collectively, the “ex parte application”) to, among other things, stop the Company from making certain transfers to related parties other than in the ordinary of business.

 

The ex parte application came up for hearing before the Court on June 5, 2015. At the conclusion of that hearing, the Court: (i) issued a temporary protective order of limited scope, providing that to the extent the Company had possession, custody or control of any stock belonging to the alleged judgment debtor (which the Company does not), it should not transfer said stock out of Marin County, California until 5:00 PM (Pacific Time), June 9, 2015; and (ii) continued the hearing on the ex parte application to 3:00 PM on June 9, 2015. At the conclusion of the continued hearing on June 9, 2015, the Court denied the ex parte application for a writ of attachment and dissolved the limited temporary protective order.

 

The Company believes that the allegations in the Complaint are without merit and will continue to vigorously defend against the lawsuit.

 

As discussed in more detail in the Company’s Current Report on Form 8-K filed on June 9, 2015, the Company has discussed with the Lender the allegations set forth in the Complaint and the ex parte application and, as of the date of this Quarterly Report, the Company has not received any notice or other communication from the Lender that the Lender intends to exercise any of the remedies available to it under the Credit and Security Agreement in connection therewith. 

 

The Company is not currently aware of any legal proceedings or claims that the Company believes will have, individually or in the aggregate, a material adverse effect on the Company’s financial position or results of operations.

 

Operating Leases

 

The Company leases some of its operating and office facilities for various terms under long-term, non-cancelable operating lease agreements. The leases expire at various dates between 2015 and 2020 and provide for renewal options ranging from month-to-month to five years. In the normal course of business, it is expected that these leases will be renewed or replaced by leases on similar properties. The leases provide for increases in future minimum annual rental payments based on defined increases which are generally meant to correlate with the Consumer Price Index, subject to certain minimum increases. Also, the agreements generally require the Company to pay certain costs, including real estate taxes, insurance and repairs.

 

MBC and its subsidiaries have various lease agreements for the brewpub and gift store in Ukiah, California, the brewery at Releta’s Saratoga Springs, New York facility, a building in the UK, and certain equipment. The New York lease includes a renewal option for three additional five-year periods, which Releta intends to exercise, and some leases are adjusted annually for changes in the Consumer Price Index.

ZIP 56 0001493152-15-003733-xbrl.zip IDEA: XBRL DOCUMENT begin 644 0001493152-15-003733-xbrl.zip M4$L#!!0````(`)6$#D?!\B3O<+4``&&Z"``1`!P`;65N8BTR,#$U,#8S,"YX M;6Q55`D``UI1SE5:4^4&```D)-I;1 MU%27@ZW7.;_STN/HP]\?AAZZ(\*GG'TLV?M6"1'F<)>R_L?2CYO*YYN3\_,2 M^ONGO_X%P7\?_E:IH#-*//<0G7*GPU=6&_ZQ&[=V^[!9.VS67]BBQ#+P)RU:#VW+LBWX+RK^X:$K/'JH M_D7`#.8?/OCT8VEJD/?U?2[ZU1H4J_[O[]]OG`$9X@IEOL3,(:6DE$?9ST7E M[$ZG4PW?)I\^^5(UGK11KZK77>P_UJPZN.+[)SV!MZZ<%)C^N%F-7LY\2A=^ MVHH^I$%?&\W*I9=J=O)YX+TEG:Y586WR8?4YXV:?;!J M?-$728'`K_0Q'DT*]+#?#3^.7ZC.-&<[`V\$]XB_L$SX9D$AQAD+AHO[Y4I1 ME>,1J<)'%?B*".I,RCU?:+8`]$']O+AWX9L%O5.",RDP5#+:%>0>Q'!8382I ME`B'`M2A'\+VFO10B,7#0<@A*-FM)`7V'WRW%+]6[7XL^51ICA*J)E5%PN)P M)LF#1-3]6/KL7_9"]MLUU;WXP\FGA$DJQY-?)[]35[WI45!/8<_(#,T2;)V< M?RM]4K+:L3MVO?&A.E_XL;GJPO;BUD9`;^XNZ$4H.O+3XP`F3<1OYNN?J2GY M,:;'LT2R*U:K\L@8_8@4#R`=(IT)/DR`;MF21\\:$@R((J2R7)\>AY/4]/CN M23$0XJE"TW1.WFP>C+7Z']?DCGMWX'"<".)2>88=ZL%@?R?#+A%;H_PC,4D? ME)2<>A&_$ZR=X1"50X&$$MH;*0)!I>NT$`EY"@J*B M(7*]+'`[&I5:3;E>\7/K#R?P)1_^<%#B&,K^67)J#(PB_5S.?/5E(7 M!4F)O%UA`5T'/^8FZ/K4I5B,+\7G7@_P"KQ2[=NX0>?B=]4-9A?Z>$ M<(W!;U/Z\AL5SH'IDI$?3&FL8T'NH5X"7WT.9Z_P.7,NN"1Z(RG1[>?LCO@R M=/K'(S(%J)<28(N>07,[DS()1"ZXD(.8)`R<9T$E%YHKF`06:NV`J/*7([6V M0EG_LR/I'96`@YNHYBFLK**$T3:+8-68@E7#P$HS6#5>`ZO&=F%UQ@6A_=T& MU&(:&"B]P!_ZO7M&&68JI%.AGK+__K^I')SQ0%Q!J`WY2P9C&0IE&'6PY MHQ]3P>,J_6B,<=&-L?XZTV!TIS":6ST:+6Y30AIS MI9,M0^OOA-%=NK7?&O08^/K-=#SQ/$VV:@IC M=JZ+LY#O69I"=79=(?`W`L'[3\)^?(MI&*[)SZTE32\A3:TL%0."2V=8-T>B M@MO3N:#.0&LWH+7ES7\&9@6&6P9#9>F!M8FG@N98`XP1+/,1` MNGCCR#ES=A0:2RFQ?6M36]_:V%-9YK+R7G1>S\BM5:]7;*MB=9Y1Y(5+^YB= M9E^G5R>!$(0YT^U.*+Y%&Q)C).7U2]7&9%W-8-)@\AF5&B-F[:6[:2BGHE+G M?..)X=]1E,Z-O^"^\(I9/`.$K0)!^UD[@Y_\X"=__OPC?MJ@YA+\M"LUW>,F M-9RUZ=R>.DN;DI'7,2:=,8;I)Q@.SR?'RLQ>F0NH&"KMN?MH%HUYJVHL9M!Z MXF5GO]A@T+(EM&2?D;PVY3W#<]/,).LQDQRS;FV/6O%X6_LJC%K)@Q'*7RRV MV`C-RYUO5-!34A3<0#7"/"KU)+R"YX8Q4'H8J)AU:X>2BL=I+\'I?SZ)4#!2L M?\)N&26,3[?F_+K!5+XQE;\Y]]FY8).V0)NT!:E.?L^Z=085VJ!B"W[L[8`* M20A[YCK*@ABBI1=RKD>&HKJ]BR%R0\`08^:0.$WH=\[ZZCK[8D!B><+4E<,N M*@2F(Y\XN77T;/\14^R/:W+'O3L(`V>G>&)BK!E\,J"R?V'YT M=%>0YGG(K.538]:?UF"+"+[]"&S=A.+-V>,`:,1>"WX,CH#[= M]7VSJXAA)O36U%8&63H@*W\Z:\DRIEERR-N2PW83*1A`Y!D06[@!?-=-3'Y. M#V[CJI$ET^%Z8V'%[2,KQUM4WB^?\C%KA_E>.]1VCLL`2R-@Y6-2+P#='*+J MQ\WI$RP,"?8#03Y1GS=J]L$A?)-4EKR:;4+5MJ3^FP'PQ5_:1$R$\*-7MP'] MNUK2CDOO`(1/::O*7@1#=1D?7[!HM`8-YONXJ-:I1D\)XT-U<>3J9I^GRWR[ MBRI.WL]0X04$?D=HTL(14MVK8(_VX<\_P<>AO7'\(U7#@WJM_29EDXYTU4,\8A0.V0_[U\UG M3W_%P]'1+W;+.GJ^EU+Q#CG$\_P1=@`<'TM6*?Q[A%TW^?O)2-`)=*HK:!G] M1KP[(B'\@NY#I%Z)QW!/73E0WUKOCI"ZU)B(BL,]#X]\/PN4?=6:`H&TO$ M$4J!)O\(&$%UJXR4(*.]@.'`5='X^^S(4VP"@W,1!2=U.R1R(T7"AH\B;1'< M&D^WVI\"C.@5\`!5#X+3%SQ@KE+W7!RB7TY.OGPY.\M8>7_V_4R5]L9JF-8S M0M6S5,WH`N3BD&9#$G$_`).Y2AYBYZG9?I>*C3G!_@!A!BI&/9#_!O0.>V#2 MUA67Q,=;WLLU^/!\96\9\O^\R\LT"P\\7][!EEYM9 ML5-O2^TXT`GI(P&N+V@BB$?+B!%9:-O])DU1MCOM=01/2:Y6G[7$(190:AE=R:",;1-9K!YK*_"YQR3ZH@W;60&MLP[C?L,72Q0 MO5QK-EX1N.>!0OK0N`56OJV#O+[>RA>6\YH-K`"DT=CV/.9^090A?[+E4D/M MFE646:NE/5&1WQJ*0^.MVY^W$.A*\!%T<1PN*JGUI)&28`T1F0V>.N56RTIY MUB*_-61%XX[5>,4*S,[864F$$VT#G5IXT1"0&4TT-MO&R*9*X4;-3CF,UMK$ M1A.Y9@(W?4EOI3W58+BT@2DAVTIY!5QCXQY-X.9)5]3V:PHB+@_`RDR1 M;<O!J)8F M^R[-(1S=!U8`TFAL`F\D=WX.N`>*QX\'UV@=A5EJ"K[323.0%X`T6U?Y;Q&4 M$SX<<@9%05X*+1=O\AR:*MC0-,.O(7(Q3-J5(#TB!'&-L*X^L5$[2/F@?7YK M*`J%M3:IGQTG&`;1SGJ7]-25\&8")D4X[D%@?W#0V=S.GK=T)OLK47>+U?5R MI[W!(U3IL%IC+R.:._9S%3[O$L*;C;370@V7-A"KE.N-ECFNM,825'3&(?]J MQ60Q,SGK#+?C^9BMY*RKRG"/R^2GQW_@Y2AI9(A%G\+X82R3H59'ZNE#-?`K M?8Q'AS?.@+B!1RY[)YRYA/G$/<:>VDES,R!$WJIV;H&6QQZHI4]__8L:RH<5 MA<\H@\(4>S<2@CN5[-Z?K4/MK%/,N2:]CZ4SP82C-,>LX296QN5.&N>GCDC#ID=SDB M`DO*6;0#HCNA;B:J"R@'C&(?2ZW2Z_P7AZA\[:D(]^U`$(*&4&3@(P+X=M$_ M`D90W2KKI-OS3.(;^I`Y@5_A,ZZ2U#4HE3&_:_GCM]+O6LI./FG9,+0TN,PA M+=/$Y0ZJ[XP8MQP5*O65LZAQ&-UHO$N%7!<$ MRF%O[QIK/FI`+V,AEC\))*R?CG<]B2(Q-1#Y&&DMA&8!%E+`5JOU?(.3\.C MAKVYS!N&1ZGPJ'70W-SF5,.C5'AT8&UP)V6N3?$V`N&OA!&AKL,&\XO=(674 MEVHKV!W9GAG>I0WR>_6VM;FMHWJIH)WBI:XT6Q@AC2&-#M)&JWCCDLY(`)1YO"AN>9CZ>V0EJ9IO'4A M<-MHQP62^,'L;#%701K^ M&/[DE#][=;-?J/A<3E,*-0Z151('C_LYL=`F^^FJC5#VKNX],5A9_TQ,?5?/ M+1FPK+W3HW-@/"`#EA=:H68G[YIE@3N6:@KO9[-POR"3]PGV!V<>OY]48?)X MYRN/]Z-6FD#7:R/L"/I77CMU9IT MW(&T@['%AY/\>U\RQJYOY8<78^4DJ+G!"\"7ZO?*$]049X MK'3&>\19R$^E5AQ!W"WF_3FQ]:.HY"*\D8HAQ)R'M(: M#IEC4"E/.C@#S/H$49:$"DAR]./X_,>WS%&Y2WO][=8&K_XPYV[2XE*M;5(7 M+"/.*7&$\B^4[G"P/]`0RQG-,;0WYP:;*88EBQ.[$6ALQT]0FS;*J$OZE+%P MH,P-V\:PQR?687H#5X=N7V] M8UB]PC%MK7%.:BT-E>IAIF<.(LT?93H/\W?>XH=3ZCL>]P.1U:&ET5.N5!D7 M0^RM9LX1FK0P"X4_`U_2WCC^D2IZ0+W6?I.R24>ZH1`W]T.V!>J/B`!AKVXG MJ6Z"2<>[^1S"'-;RU@.@-1#@N<\.$(LS$2 MQ%%:P%6YAR:7:\&O'B#:53-POL(VZ@G,G`&%&#O,480X\\;1]9@N==4"?UQ1 MDJ-6=6*F1C<(Y_-4T_@.4P]WJ4?E6-ECE_2($'$7L.\3Z:M/>:\'CTAU$EZ$ M$X)1Y2K,5_7\N$%[6(://>).+@R+.NR1.^)%W8A:!?*I10H\&GG@IT!M[\.O MPXJ^[:/;*9H,L(^(KQ0']4'F$4:]P//0'?:":&T#>R#T0!`82Q]3YLMIDL9P M:;2._,G0)O2(A]?%H#W4@@EFX4^^'ZZ@R$$\'D>`CR0HCGY91*!["CT:<@$C MI3^)-U9?ACLM(#H"7@!Z_@\*J)&HW\9$AEWH$L+0D,A]=!H(%4#-8F?^G-ER MW$P/DO1ZQ`DO9U/]$T!]Z!Z!GBF!H`JD+D'J$KMKC@@&>]D+I MB%[`&]7O_W#Q,_D]9/8>O7L?R81B)Y&!8$HC#`'I80\XB+024/*`@:N11'3' MD6A/I`OU.80$3,%:R64@!UR$9RJ21&>`22Q\A2P;BD*$T!^$,(M$\:E`0Y'P M<,9C33$YQL@9<.Z'ZB4\`!/!,.ZW:FT$_KZ(VXOUD`]LH#WH*HL^QU(*V@V@ M'0<+,892]UBX<6<'JO:I2O;1;_P>](LHAUWP`V<0M1R+95<)Y9#&"A2[BMO1 M&5C5LOIZNI'9]OU9540C^74"D'\F0-`'Q1R)=>0,(O87^3"K/)`G M!Z])7W7ZFHRX4.=B=LEIJ4\Y+3$=PFZ=LY[J@**O\5W2U'+=P(@K\SO6 M#I!2B*H".,(]Z=V,!)-YD#AZWEEAE@-,VEF3C;\&M3R;41;>+(W:W,XYZ"SV(P*6)-B'7WSF= M&46+`:^0-%Q18$,PI>1J@9X#O"`S'NO81QZR[@'KBV0`^\:Q*[5F:@^D1IT% MGG=W#-2G;E08CT(^YL@Y>3HL.9N<$Q?&+CY&"H]\/'MW83R.%!*X1"CQ;9=` MX#<^P@<3]`F%I.02C"*/Y^2"3F5WAC72IWPC3)$/\W'QA<)R:\Q6[9Z5_K7%\;(2RB4=/*U:9OZ&9/551BD MZ7J`S$B0URMX[/S^S"A6.$2NT)NT(:VR3*26\MX\J@%O.8B&L608OP40X:MU M[+C#Z>+><%3AO$K/2*49[2#P+RNQX@RKJ:Z`6;U7U--U5!Y2X]16=Z-K=!US MAR;/NI**JH@.C7ZI33NE*:![U#K7A],"`/>PW-\#T8A(ZQ9>2-$0OI*KC.!HBM2'J#JR* M7:5&>^[G:8VA=WC78,RC6.RAB?+!"&.9%9*UNJA$H_=*[#JF(:K&+QK6?UG[ M_E5(K\S4R9)RT'7BY-X2)YVUTKB#=[#)!=")DSIQ4GF+I+),U)DXJ<$[['3) M)BAKY6C4LVSP+.O;"]'IEW5'=_M(OQSVASI9KT6(6J;1']@ZH[9-D/:,?D_G M7^Z6?^GI_,MJ6Q):RB=^:9!?2)73&9278ZN"]]\^B(XZ@Q++X%:S#NL+770" M9K.EV7*,OC/4N7UJH^0877N7X%.=2&AJ=P="PFI"@HQ,P#TPX,='@^3L5 M6G_4F:YCZ8L0BD/4[9;8_DTG8&IA?)$P]G6^MMH(68-^NUIYMP^BZF\]/*+1 MMTC`M!;1:WSQDPF->?XE_+,VMJUXNHQS5OGYT[O/9V^N?=#>D>!8B#79A3FD MPL].H?!SD1.2-CQ0+VQ,Z>+/%15_7E.[UTBJ_!ID1L?87CHKS@M?PC,H)BM# M_Q-6-1Z78.%8^'6E,N@)N99-J;$&<+%6,"YK_+(K&):/IU/!6%[R^Y9',_+U M[,I8J08RNONGLW,R@?4@QY!5C;%\^X*).8]DB>4)5J:G M'&?&J,`F=B$9BV!!1LP+;LD_+:/;ER>1)R1O,R/IF'"?^A!&>X0OBY`CU3"D M`4-/F21&DBO+/BR>G3VL*:D%?'D"5SJ/'4'U21C8LM*&;NX^`/[ M.^8WU,/HY9G+Y0#R3P?UY9_NU.E6YQ.KBN=.#=/WFTN\)TOMND!$A.T%70:: M".)1@_@L:K7M?I&F,*SAH%W'Q0KRV.YU=4&UM7F:_@WX"X'@ZASR*BA"/;-E M15B4XW'',)VJC\(;;5R_R!.`M'5LVC>Z=GE\>G.MCC%J2K;K]!NZY@\)):MO M-R.9:Q_&75:GV+?.:(H%LHU.U]DA<%>!0\WA<0^L?+5WX_9NY5N+?,,FU@+6 M--CV8&`91DGC9[^0N=)`[5I7E-GI5+U1H>X;VL/CO=N?ES#H4@0+(/%.'BKA M>=)"ILXU3R+K:M[7ZYGM2N!7D,=#TZGXVFRC[6S$A)NDWA8.7AHHD#5M-'8' MVLA67/[$JCB,;K2)339R]09N#97SJ]YJT"B5L"5D5=V"HL'&/=G`54E7=$XZ M*"+C(`8G0XF$H&W(K*T,3Z_7:V@^AT;[N6AW(2BINNC2WCV=UGJX#9M8"UC3 M8#M\P>F(>SQJ>Y94PT2Z!:S9NX)_V;(H7K569674Z8[4XVH,P+-LU9Y5^R#" M5.Y.,[:]]F%`\ZL!"WJGMZU:[JG(JR&/3MBI.QFZP(IG<;EE0Q)MMH':M2SU\V`Z%9L1C=++4>KW3&WL-^\-[7-/Z)!$T0)]8>D] MY68`U6M(WJ6^A-/TB;6`-0TV@5=1X'Z?!1XHGC"=G-/[65:I:7FF4\.$O`6L MV;O*?\E".0_F\\"'1V&]M'I=O,ASZ&*PT=`*OYK)[3!IEX)-F!#8&%4OUDTW M-CK]BB_:J_N&MG"XT2;UU'7C>9QDUH_9A+M[N.YZ2'']$03V_?ZPO,R>EQ!3 M?TO4PX+:-H:#$J]050-U@[V,9.\X5"I\/B0)[SI5GX5JE$J(50S;Z>GK2L\X M@DKN.*BO5G05,UVS3J.=[L?LI6;=ZTCFN!3_M'@X@==^(.:@8C;.XVGW:9A]W:7>Y/?WUEOI*_+^AX MG/W^D.WG`-M(<(/\P;P;ABH<2*5^>)S2F[6"- MK7#G*:M0L^K'AT?XPU4$(3"V!)`7WKXLF*`1#_PD&V&4PU^+&@'.`5#^KZ]Z MKW;S)5R&M=,K66C?9H(Q,H='9B%A(*!C\K^QSXAM&DW2LRJS^(K_J)W!._AO MFU;J,SA5,]X=]?#NF%:WD6M'35XZFI=:+A7D995R>8#JNR;@CF*?QF,>L7'] MF^6:89IAFF%[8M@.*G7''LQ/KL^A^/57/$+2G7U;G MOE5 )3U[TQJ]?;(>V^9A`THL]`M.,X.VPX:D151;1K=!USA]-ZC:BZB`[[ MP_JT;DDNPU[JO@5AA!O?TR`8AQ@;CYODB]::4'C4,9Q^B45[7T)+HR*&NE'J M#8?E9:=HE"I!R3&Z0UNCI#A*7/4%[%6<^6&`;F`&P'<6<7]JR!0D MP2+*/<)^+)BOBU5M$%"[TU%=/#5&CE5>%0R-4248]?K=\A)%-4:58-0W2\QJ M5-H4[R,0_IWY3&!K:C"_=#SG/@\C3`6[8?LSPX>4K'YD#\SRTCB;I8(."F>G MXY17>EGCK"S.@YYYJ"[%0>$\[`P.Y*;COBI8AR&9B&!.@M7D=.TD/^8D'ZK. M:0Q"G8[R-Z,/'J/NL,3"I1JC:C2=9>OM`'50KU-N&C8QS1K-FH-D3:/CCB_1 MC`G"?3>8ZY8;:SLUF@TMJ=T4!@]T2^MJ!=C690BK+5!1XBYHVY)//^!5(19& MV0E;`\6PKHIR':<\0Z,#\HJJ_IDZH5%QC#I.B3U0-$;58-3MJ9X(T.C`[E($ M-SSD@4\F@2`1_:$S6W1;1HV/QD=1?(YLG2_4?I2K7(4-#I&QB(,7A(I8:%V) M=%,BE'6HN2=:5IY_)\8^U'M+6EB>G>DQ[&L/2`O+EE:H.U1=LSSBCNVOG#8. MKDMG/P=8?'BTRL75(MKG-)R1]UYP&TIB=!7MS;Q;5_6Y'N;M$!OM(&^Z$&R. M?%Y=M^9E<3CL=?3">3FRK:KIJ1FVGQVS[8N@]BHJ@BI]D8GT18IWJ/PIH6[$ M;V37IV?R\0`J]75KJ]1G6;M4@=*5%U7%\VA@]RL!M+90M"DG`Y>Q<&A.5J_`1G4+#,::9%#K33'IFZI?G3IXB+K*W^2MST>JZ%P1@C<1W*(O M="38@MZASOB)!+[$$]6**]AX#VW!&R.C=K_$-KA:CU2335CB#1VE]<@^?)"S M7(.`UO"#B!%0(W(G7\OCFLKDIFF8^L)-I5VOS+2!8^H1SQ&]2V^3:T) M%`]I-4+ZYE'%FP[NC/I31KB?A0HD"LCUV8?KC[5+Y2&EUUN]$KMMZ*LN5:'4 M&>AJ`>N8\Y:Y`OT+U!TN#6<-E.6:]A@&Y;G!>HMAS>'$800:^_$3,&G#(",V MY;XO-QT]XRK2<_24%O<'[(6T6NL6W^Z<8A MH/CGU^".>F?4__YEVE4WEDN(73_WQ M53P*^9A3YUD%YQ3OWD5WCU%O(?4= M^\^O[";P;O#+JZ]ZFGP'Z%\1F.>05-%T-O/;3/Y[&<529_TG$-^3S_#-+@Y"VL&FN%G/ M\O-FSMQ[_WV2/O@W(*>!N)/;U&OUUF9%:EG]81&AXDN?.^!6O.\-;+/D`5^@ M$7KFT-Z6FK=L%'WPP7+&>*[XB4:Q`)`0FL>0!]H`<$LBOYG.ST'$PO_P:/8^ MB,4EF$1X.YV"-%P*<$@NO3C,ZHY^A;'26>5"9!>H7T_AR^;B%.9RSQHV;BZ; M<#E[?"[?9H*QRX#[T7M^PY212FMS(ERSPVAWL%JJE3DG8MG9*UC49^H0Q=N3,VCCV8]A6;XI>_LD4@ M\([`M!]$PE@SCMR"BGEHG8SL<@.T-1Q6.5/2, M5)I124?!VUQ#542'1F?8 MV2%I2".J*J*68PSL7:ZI[(A"219F'\E&7_)*4A]DCTQR=!&$H3)W:^J4T[JR M;@>]0ZV#?#`@#WL-34(]&(2.G*'9P`K3SVBM>S#"6&817ZTN*M'HO1)[46F(JO&+AO7?)ZZ[VY?WH.F2I&*4TZ<3 M)U5*G'362N,.WL$F%T`G3NK$2>4MDLHR46?BI`;OL-,EFZ"LE:-1S[+!LZQO M+T2G7]8=W>TC_7+8'^IDO18A:IE&?V#KC-HV0=HS^CV=?[E;_J6G\R^K[9IG M*9_XI4%^(55.9U!>CJT*WG_[(#KJ#$JLU%K-.JPO=-$)F,V69LLQ^LY0Y_:I MC9)C=.U=@D<-4IU+:6AT!D/#:D*"CD[`/##AQ$2#Y^]4:/U19[J.I2]"*`Y1 MMUMBAS*=@*F%\47"V-?YVFHC9`WZ[>HVW3Z(JK_U\(A&OY^`N9+YN$6MSF69 MT1V+A]ZO07I&0QYBW5468D56?`BKZ0/O^023PJ*TM#R\]S+PN,M9N+]"I,_- M2-VVF*>7IJE:)Q+M.(E90E?PA0Q9@HFD*CWX"/R04'],KI9E2PO\(DN&D8QC MB,+'G\[.EQ_]1&YER5XQ9V-L&6D- M!S;^'Q.TX:\^IX9
?&!7T$E40"0DL$S"% M"=N7(`?R#[>S`!@#S!$A+J`QQ_9%HS@*X'?@"P73(<;4!T&XY=$,]`**"P*` M"'G$H[?AB3)J1$7-MM1#O9_#=/U+A<+6-^/J9./9^\NBMHDH0?^F+R\(`0HZM1S M@QGZ#\@`^2D8U\?7V4HI(0DBRL8#+!?E3X7CE@8;%+*N#) M3Y2/PRCPF4$^RH+KV)[R2NH=GXX3C2;G6%3E2T6V'#-1,?+=^.HX9/(/A2%0I^;O\^F\.-^B MA*S:KX*BQI;*@>^S9%YRU6>6)M--#R:+4A*&P$%D/F.)[G@P(;*(11BC1PJD M4^#95#`FC8(@$DM?Q+A2>I2%1YKN@RC(JJ2ZND3>T-/"^SPO?0!PV5 MX"PA#$''((ZI'CEB/UP&$0^JFM4O_,Z`6O_N)XD)K`DWQD48P\#@.2PMFP3Y MC[0#!^J&1S33'ZMN3KH">,$^,NS53)"9T*5&)Z'G\[SA(W"$@Z(;YG*%I!&V5DE20^52_@PP+ MADWYC.PQ<"PQL/52QAH$1B#C`%[@!^!WS>Y"W%<%I92/SS:!E2HAJ6J2WB"` M3^+2BH,(8@Z^&(8;)>%T$8'1.M M@0REQGE75O1*P6BD?$"E.,V\#4F+9$.8.QG2N,@Y^VD(^+AF7C]G"+S=2`1^ MJN,7`E5>R@1L$@H3SWPNP-G%5DT\A4?ZTIE:QAZOP#^DN&`_K]Z=K]A/561. MP660JY%+""-7VR02'D^$2.'XA=9/-]!F]D1X,N$%HNWV7J# M)'B4L.7@B3'[*%]_CUB?? ML=W8J4PN!JR\45@$N9%:V1&4I"3^^?*`:;%4IKDAQ<\A5DB>3_9=Y690R`KT M/TIR.`MB#[<4P*^@XW1KXJ_87^Y-I-LTP*0E1Y[@0^*@+ZEYQ'K/@S""(?&N M+SGU_1A>D.P0H=U_#W@#\L<0!.&I`O=2;;_CR2*)PLE=D?':R)Q6O[$Z8[83E4TRVX!YW36#` M_V_O39L;-Y*UT>\WXOX'A*\=T8Z@9.Z+/3,16KIM'7>W=%KJXYA/$R!9%#$- M`APL6N;7WURJ"@40)`%NHM1XSWN.U1*`RLK*RLJM\O$0OY2,E$#,C>T;+@\7 MH','#A297H89\DG_UK!&$G4,XPU].QCC=SE.C>'F3'#N7#UQJ9Y(93+@B)"D MAG,@D>Q`*>%.0!K_GF+_Q./AOS&<]8".X]'L["-4-LD].N!J[$9A.GFP3G'` M:J"WZ\&^"4,XKF'GPQ@@J1%ZXE*&Y)?9R9C9S[BYQ=,C*`PXZC&&%:3W4*UMD1/ZBQBY-C@.$UJ8*D5=D*0+&?J! M0V:&9X@^>%:>M7`4)S"D1_=A@0;PXBOU1R2E:TQNKW[_?/7AZN+L\YUU=G%Q M_?7SW=7GWZV;ZX]7%U?O;X^T\.3XRV/N*`JLA9X(`?$TK1>.9(0K[+`UMHZ9 M`EQS.)$%'4A+#3;:(QX_6!4"&^S!\>.0X^T8%5II&2ZW!A<.+_A.]MQJ5_NO MR!%U88=3,MSP!Z+G/6BO!]M%W0JC3)'W^/>/OG=_!KA(R?(+!Y.MF-3I4SIH2.ZUI3YWX*VP6380[NE83S\#W8 MU+B#9-YF)L'FV?H+A%![%`8''Y&25F``TK@B6>-JFQ2SY!Z$%PM01B,?]&05 M5-DD`Q(P\_XK/>=`\C15,95?\Y#4WN842ADUM[<1O`N^;`ACCK719G7K'>43 M?5`F))&0^RIYP^G:M(1R*T6U+@K#.HD:F8'D9X<<:ZWVUG:2X6/=T^,4['@[ M*:3@@`M59(&ZPU"T8>_/1/3KB\^P69SKI?H=&TV,DQM>])6E5\4B?[[J,ICJ M0->?/Y6^*R+?;;;G3[]9!DOQ7L2:?LS;W]]@0@?=WN"WDGR'61'7!2 M;8%J"ZQO"^""^`=<:4FI?\QZ4"5V\$!UJV84!PO(-;@3)%0N=4 M4F>`@VFO)]X98P'F#J;(04I^0RNYV@[5=GA[V^$"#'PQ@L5W7`QG..ASV:&/ M8O^,M>]8W'KZQD7_I1S$=L^P33D(EC_`)KLV;+);99/]@3;9.=ID-WR=3HP+B`%_.C0KX,.5:V9Q MF2K=U^-U5P1@&@$67(D))@A(KDZM&U5:'^H8*A`OQ\9+$G/?4_]\YAIX)3]F MUF$L4,:HI(4N2\D2D0P5@3`'F2M>\""8`'&%6?:?D]TP9^`/8;4XP%5):R%I M1?'ZP":3S@Z?IV!$MUD]<>]'#DF=S?6:?AR%0M_A-?4EU?7P#98PIG(; M)GT22S'%@HVD3-M(W#D8N98[)N?+I\>[Y$=($EV,-RT5H@@6YDMBK9RQM5)$ M1;(8J2OAHP(VT)I3#ZE9-*7@71%BU@C5FE:`)\/G$WV8#JFN=&C+IW24%202 M&Z#0Z9M4G9UF3GQYMXJ@.Y@C'NK:1,I"*_8H'U5HCJG=<&J]QY`8Q7[532#2 MQ<8^\+U[GX/#8NQ$QFT#>=].36MN/]/VF#IXI4P6K_'>MJD$[M2ZFE@.;7J] M.F-S-YE[KJF#JA^1!7 M5^H2R9F8T2:T.%Q[Q,L)WCB9&C9\5UT[=CQMG<`7IZ3D\6C`@DXJJ_-"OG@M M=YZBBR[IH,"`(5.IPU@=PYE3%QO0X#WSB3-*X@-J.K\FOV+[X.01 M\371[I)7BN=V&)D7E+1]H*\$UM96%2)"&Y MTZJGD*PI6X>!P*U'EBR6FM!!/8FDKVBV'8EQAMIJU`*N+G>)R80L"EQPY57Z MD\D"U:K&.8>TQ0FH[8X7<9P''/:ECZAF&\$YCU6CZC,*BR'!P0D6&_T=!9G' MQSF#82C";*A&9N0#KU-Q-R1N@00;((S4+2][#EOYB;:O/"6<(,1Q:O(GV%]8 M!33UQS6TZ=DJMMYA:1;L*=?Y+^TIW!3BYY3O*IVR^]BUN8T1ZM*0SC+'H#FY M;H"W!3@N[@]#'^TZ70]F1[KK!NZN>]",(6]H5UV4^D]L2U5L2!`K7N!#)L"H M!\AN>AWJD=<;P"?%JXL\OY?>PD%\'684- M$IU##`2!4OY@1$Z32VPN*8>Q&$:GUE]4 M#`@J`GQN)V2?'@Y5,%G=&MU2BSW]/:(B&7M$5+*9-(.AQHGQJL;0QZ`TVN`4 MI6V5U)^>6EI"\;@O;;$8*$NV(3Z`I9X MI2R*W870+@?XH%'`^>'DX)O[$;:=(L=%1W4-`SG*W&LR%P5WCK1IR36B`S3$ M_JI@+]`=67Q`77C)7H1@_X\T4HXU;&$')+#;)6E&/7*>D[1L#%(_8S'W0[I` M3S[ER)^!/T4<&=K>MU`&S7775-6O\$]V(RB:A.XO+I$QVU,=$S'(IO&2Y@"Q M%XJ1[@VV-(1N>Y(&SA:I0<@@8B]4QMA!OSAHN7CWJ)EE=]-T8U/)2XZU+K`P MA]._X6P#ZF:D&D-BA%RNI['8\%O5[`N]8^GM>#%=`N,J?(,,R45LHFJQD:=\ M4[-)P&1B.T&8?5MM]ISNG.GL!WIOAH$*D_RQ@<`AY/BC*,BE9WI^;-::@S;" M\Y"QF[-Z8W7/0"\5D6)T[%6M/XGFE':OE'HQ]XUB\'?V4^6_E8\E*IEE2\L/ M5$HC0G;F7M6YO;!ZG;KTY614AQ(H&+CAU+;KJ%`1;24;.XQ1PRZ]2Y-+._A\ MH*`/\JD@A8Z!#YUFTUT_9N"2@394O;*UT04O,CTJ"TI5':0^G&_"=::^3]TR MI#^I"SWL)QFO\L2$W4;5-`'OJ8*N^*IK`U9-MY:B1%:;R`!6TK39UK<"W`O+]=2,+/+#F M!**C.63I5(+)DT%1_&HRS,W/AR_+\I76#[SWB);7TN:-:`O*YRAE^ M3+.K1"@M`1X\.@U.ID0V\!C9V"T6`Z0T>VYS=.--[!LS?=$CJBZ2;]R-C#,@EXX;J[9T[U7( M_-U'A(FGVKW;*<;]JL.VX&$[),:JW`/1\L[5S`RGW-V3'0)97_M(4$?H+LA(+%O7:N^H-Y&$,)78 M6.@73XD;F`:>6EF"DFE0+^&QD'VE08KH@ISLLC)A$D%+)FH,5,PCE>&HF`UV MB@XXFT,MMG2F*\=+,P(HG-#$XP$)).T[D6V/F/X:TP.LT`]HLHF21]4]C6(O MV`O>#N72+;Y1`Q\6;2):'CT]&LUP?S4'0MV;U-+#H!MUHI[0[>NEWR3SHLB+ MT*A"51$JU+O/B[RRWH7"[`H&'B\8;]R1$?B7//V9GK[AILU&;=M0@)G%O$]W8$QKEFLN[EA7)?Y#:.58^K:Z;KV/!2_6NJGHC=I&)%RU64:DRLC M*@YW__H:M9*EG#$X2)NC:HH`:F)BWJ?9A>[S4T;'=) MS&CI0='_#(V9\ MNV)\)?'?%>,/+?$;'#D;HI*KN];MG_;"P,_2+2C)/V4D+R>J_)7P%1_;9H9E M8985-4B.*2;[@UQ^U^]L`+F\7Z[]?-P"L<''#KB>C=8F,.??]8*^\1W>ZPPP MW5U)Q%O9XMUZYQ4MZ([,E<>I$XE5QLH>)O57-M*^-+9>C-*H%^AZV8+=:X>/>@F43$)476FQ25Y@B$&&D.L98#(>8+A,Z%LE\ M>[KGY%A8^P;5QAOB;27X1[PXWY7@OVKW]J.J\N6R4BI;-FI\Y162RNL]TL1P M970?XJ`,\XOO`"#'-J5>ZMV*' M88SMW<43=FH(!7<(6+B>4XEM9>!7O*UX6_&VM-*H%^AZV8%4!=.1; M\+55`.T'@O;5][?"0:D)V`<_@,7QK`N"5!EQ!\,[A&'AMD!$<=4NK$1OSJGL M<8=-=YVQ8Q-XP4+G6(15(!P7PET88:A!KD!-]9:]03O4NHU$`)OHOH:]QJAK M;NR-)&J+>N742IH[:U0SW6F/$=!2Y&!;ID@N,E$5^=CR>(S=AX)0MG[D!EPG MPL/P.R/IR!:0U*)K20M)+[E*I=XB0OC-A?YD]*U`08#9-)8$30.9G%%SJH>$ M6.H@JB$V"7;&'S%\)_4Y19-94@;?-0@C&KA')#;3Y*7P?._$?_00E"@!"L+> MJ`@/<88]$,UY6_>(WD3?56A,NO'\1&XCM2(FDE&V-R61XBR'HH/?$?YO34D+ M=36;+*XP=O1GCK!D$`*J2RU&C>%KO";4EC&RL#UR`%\A(E2K->S1"0X&L`*8 MCNV2)]2VE8&&$C&1G2NSRVL(1;K_/?[3XY8]\%T#B@F'T%!63(EJ4F8LM.J_ MBG`?-#SB\(5B;M-B(**?9I"6>=UHG&90-9`L<@1\Y;3:>PG.5+5C+JSR039) M&@U<@IQMRC+O>XA4C>V&25$9O93GH!)'SAP1"Y..\?!W,3=/C%O9^U40KJ%2 MH@FXW#=6LPIB2VIB3)_.Y68R<<$2-;C0C+AFJLU:OFZNR>9_X0A4(?99IJ:4 M-!W$!2-=FWL^<#]!-6:"!S:B]HK%*H'M2VB?S!9Y&<%A^RU#XZCAPW#QTDZ3M%E#PU,KT5]^P45%NMI#\W([Q+B0X3I;H7*^3'Z-&WAN@T(;IZ M*#G]J_7.^9E`B_',-=[B]O*,IA[XL-V,OZ7A9PPL%.,AY3]<`&%CVWJ'+R3- M@S\CKJIU-H/YPUEIW<&!A5`Q6@?T?_N9OOW.`>KR!T`JWLAQ["+\'SNPHQ`EFL6P2'( M7L1T\H\1ER_#UXR.1%<7-CH#Y& MA%SV:1%P0+%3&83P5VWX7$GE]D!N'@D6NV(D$;^8D.@IW`E$'/-RB%&]P@F9 MMI8X3Q(^UV$Y(3S"L<0#89"X92<#O8WVUQRA=IYS@1\EJB.8K"/=&SIDZS$A M$+^?X@U1,G=M!<2$?BMA3*`%&0@"[$&K&(\AA!V1,TRC1!J4SE$V@PA(I(^R M:0J'QISQ9Q5JY+-T?4VPE`Q$DZ8D`3193M;"$ABGT-]^B<.3>]N>_XJW]\/K MR0W[K;2CSKRQ8;Z>:=/_!AD-PG$'6N@<)//;/_[?_P=#J'_[]/[S^:^7`JAP MR'J_GESKW4DO/>M7R.Z&?WP1D[__\`%.;^P3>5)OP/^/?/ZY>]*J__"/E"+5 M>E$AO1Z+YM5GES%[A8R<\*`ZQ8J0]$EX8W_D>+YUSJ<0D2+W4PT4TN@TJ\XS MFZW_&ZJUY,^?SB_,<^216KL',W93&X-^RZ)SR77@MYYC\_XCA)-'W]P^1BSR M5R+JBW!%9"LZ+4WCQX\7UKMD?'[,((%'^.H1&AF^+2B^2?=I/5N&2=]]_?-G MZZ.$+#.^]O7\ZNN?J;/J*L&MD=^\C4CO9=CT]39%`["%Z)"SX(D*-@LT38RR M1SBU`EOT!PR%9+M1@FJ6!-$021W^Q/'X9.!18$\B8W746:!L9/PLZVA6GLGP MJ.V,*/37;XX]K1EK1=34(I04_.'%"%)5S MW%UL&.>IDS_/WW\TM0G3`[_DCZ=L[5Q,PYJ%0/5@=!AC?H0_\,BU)'E$HL*$ M2$MU,B'#$;Y+`QJ;77D+GVQG#$ZY!^;SGZ@Q],A*G\)[8# M3$H]2X,IR^O_U7]G_]-4E42-> M25XEGI%&\#15>:+(4@A<&!+%;^.GXY`#BL80J%/U]SS,QQCK;DA(^OPR%#6' M@#T9TJ!=KTX:I9L6)LLA639)4;,G[F'J;)K'01BC&4P(HI9]'PA.#]$H!G72 M*90G?Z+P.%U)JEPK.K5&INJJ5-(*DLY6`=/R.M,2AJ!C$@?;>B>>,-!/JB;] MP.\"W>/GGY4WR/BQE.,#;:)/-EKD/X3C"<20`]V0HYG^2)LY<@$%F9E_H=9!BSK]ZXIEX#PY*OCZG(!8P`[CI\`!WV^?0Y ME#!]>GRQ:K&D$B)5HT%@)3M@9#SK88<"8QEI,+-M27M**R)9:\=+K4F M0C"4.HSR!^I"E@:=G$W$0)8+L(BD@P_2>TWF-4ZKA"3(FA8:6^,@POH#_S#I M;1X%1`7.4"E(@I2BX+-6E:$`L5\F"#4YR\!_)E'@V3XK_#/D98WX*Y$"7818 M1[!"M/TTTVOR!)-Q*%Y87%,%0ASYB+#D>.$P#LQUK%EGX5CZ('?@3?HI=[V$ MBZV\3MWCVE2]>-J*LHZ"!W/'IIS@B*;&Q=<.F>!.:?`]^01P'E[R82)@^55I!*E=8K9$@W\1Z:VTMHP MY@SXAUK>.%YOWU^DCM>@BA#NA%CTG:B7FZ080D;]4ERHE$U1 M93/2;),^8.[FD-55G$61<7)4+2JBA0DO#&:XSU0H-TZ%[FHJX$4Q.'3F3BTT M@U5B`^L*P=R0^Y2*0CPJ-B3(0QD*DAGDFDSWR/2863TWM1^$Q+3$(]_#&>5N MLE7[);NWKH-[VY.E':GW&U9.H=QAOZ-O!F%NU8+@N)2 M/9%*J,"1(TD-YT`BV9M2PIV`3I![2D$0CX?_QJC:`_JO1[.SCU#97&M9E#65 MZ1S&.L4AZ\<]V#=A",<_['P8`R25ZO,UT#5]F9V9F?V,FQL+,*C@2ZDHJC9G M=X-(N(1/(KJYU6K(P619NBS"E$#F>2?^7D_QK,D`IJD?W!`Q7\3(M<$/F-#\ MX4/:%S+3UF_4"LA.OHH`%"O?E%$NK'3$/-\25">NRK'D!16@0=Z+R=N&97=&JLP% M+YS`1L3_O(@Q MV`.C((/H[\BB$^2193#)JC9E$9(^8$0K#K!H6@<-5,BP9A7T[%'QO221K MO!BNWG:K+`2R1U,QCEUQ/7EOD_T9PB:^Q=I&@J"!;\I6%'<8LW^K.XZC)=B* MV%"&L%1#@N'AU(IL#+78D8/+2E%?HU$>_GHTLUJ_V;@P?"1P>K__8?Z M#_3O.3HT\M^+-[2QJF<8.#7K#^$^B(@RRK>V%YY(@A4*8;W^TV^6A'(>X2A^M=1/24\5HF5-:Y95'5A,KAP_RG7W^%"N[TR=1,8_362S_A#5"FRP`K<9 MY^O`_'?+]TIZ.QORB&'GRS;;J!B_(\:W*\97$O]=,?[0$K_!D;-AHUAICK;; M^T'%_BQ=@I+\.S#:^38S+-LM[`7@TC<",GDIM/2C$(@-/G;`]=P,]>2[7M`W MOL,W@TCYKB7BN+?X9G@J+[6@.S)77J*;\%_T-9&T94OUM+?\.`HCF[.QY=;B M^VE\674%KYA<,?G%650Q^445KRM>%LYIELBB^/!,O31I$WKNV]Z?:X0_RA>4JB04VW-!^(+FPBE'## M(G80_4F#KN%QSBFS1X^+RFN/NU0V6]0XLL%0$1DT-KJ<3@UA"0SC`GYVN'&: M[/+^;)UIR)QWB$H\HQXLW/PK:5FZ\L44*I[J7'OAN\*ZLY_!S+;.;>\;0E%8 M5RXH#-\)P1+WOC'85##W&7C"[+)JO)R"J#,_.A/!O9K9IW/K@VXDN#`:T;-F M1/,+YGS@J;/X'I;":O2)S^U3ZRQ$E"3991+!=Q\(O$X.5L,'&K5!JTT/S.S1%,Z@X#F-@PJ; M)IB!=X6[#9YOU@;MGOP@2(A@S#G]C%93]&E)&L*C.IBPHJ)-F"^V8\7S#HED M#J!`)E66@B_! M48@(];G(]NZYJ%A$UB/B8?/F7O[W++'<>YHF,DY1[J"VH8;3^&L'<[IV*!&L MI90R1)S1.G62^?JI=8UP?,%H:C4'I!A:!"&JX!08L8B%-'MZ?7`"4&UG>$(I MY)4HM2Q$1([JPBZQK@W+SSW#9R*:^M1!/`%46;$*..^1[8YB%_=0C;5=(*+` M1Z`ORBA(?&YJ,WLT(GNDNTB+%K&<#X![0#^ M.$&$KI":Q>HFW7)T&H.V!I&0LRU6O&S/L&]VTJ>8L2*'`GA"G>SIX,L04PG& M:F/V%H$4J!4Z6"5$B58.IG9B#',R0^"4=48BVUW_4DSLV(VLS_17TY:CDA.I M6@)Q;S,FO$/`"9011/WE)\4H4E.SL88N;JCV/FU\>I;QJ[!L10Z;/J538'31 M.AOK*$7D^(2EV%DL[579CY]T/.@1-.(6#B5<''\8B@!5.34[AF6U"434=:GU M<03F'Z$4\XJ;"\Z@E,G::F,R9WW!$$P_O$00:F`IR\.4X,`"PH1$XWB1@!IU M9.8Y98$"+<&9*Q&CR?.`Q-`P0:I=!GR4F(A^K/J,;.FJRSQ;X;&,V8!88K[X' MOQ`SH7`P8]S3"&K@6H\V*0JP7!ZQCDPB+DC@$":;/YU6&5;(T+(D-U)=(`HD MX:CAY+A)/)[[ALY2M@S:&GR3#9 M59]@CQGE`@%SYK#'GNA-^,./C2;[308@C,T(,T[F_MM1ZKEC(0F.PC-PZ%SM M^N<&=HQC,!2(-;3D-+SE/^[L4&1[3;HPW^^A>"PDW3%>H['$1(M49-I>73SN MA'=ODX["TPU>DZL!VH?`-&SKP;&''-VQ82<_(_89J6L&S$)@6_'@H'X`'?!O MB>R-]C"%DXZ&/T>X9._UZ6$$XIIUN=MNC&2:L*(P4(EQHM^'A+W&J%*+_H>LGP*'V# MS2&IH)`=A/N2%6@\MAQ\&T'58.!XQ`#7]OB!D%SI$$/Q?.?\C$B*/.#$\1"Y M>6S=^S*4`@\^:@A'(@/!+;S(EP'&=X[Y/A#[#588MP!HJS"TDH?!RFC^9`D; M^$O^*AL:)CF,1Y8$DH4.,AC&U=`/`O]1FRXVE\C39Q>L6(7,YH2IKXX%QCDQ M`&A\5SJP]@,LGH*DSO^J*9`L(;2^V;"L:=KB>`FRVFH[UYDP>JZDA#4.S("A M0:9@[_X(6P.CVY.4/X:7"WU/G3,I5EFKV00DD]GH^H\)^#:B:9--@\#JZLPS MNL,9,\:`L<3E)LH5CCCA!4N+U#!]LX9NI1O7Y+1L,!EA`S4E'IJV?HI$".51 MF(0(\ZTA_7=3&5:VR.YLD83!K,E1'[.RG]E/%(:6"DCNW2^TNV`]R1HU\C^8 M+6K6.IR181VZL,:V&Y+/Y=W+,<#J!,6NU%V."GW'0)FD*YXMQ),,*#4HM4%* M2__,^DD[1JN4-&L>"AJPFT1>$@]@@4L'CJ)4H;:7'%<$;8;J3<>8DRP@?EZ[ MFY[A"V:YP+S)4++J)."`_9K3@+\'Q+^S4_B5_%MS]V1->K6BI];->F,_';G9 MZ%"PUAX(A=2^LH%6J7ZK4OLOH3FV,N6LSL@^,\MI^UL<*I#0SL",K5)Z&:S2W'M#FD]FYY8Y')6%`1ZH,K M-,!9R"&UL64/P078=G^;FFN3/;[.M"NTOXF(:H\7)\D(I"*4+L=FM4.Q&#(: M$V+F,!'-M!M;,T_!3/Q69N7RO%]:+J0!@4&#!U8M28*'G&Z,IN,6-,Y#&>@B MK8*Q9BSA*!AMK6E)Y(^2%,*X8W\4)P#5,H&,M8Q(C&L_GBH3=T1&@@RMOP?B#Y@5?P8D\FS\UHI+*4R+&G6.0X3*7G\&N*IW)-4NK) M6-)LP\. M+CDWA*\FN]1.CE`X@D0@(\`)3NZ2DJ0$UQ5X<`X_D26TE-$VRW M.+6N)KBN^^QNE81-/,Q%S8D3U#J<%)/H`R"[F&KY:J8%4/F:5\%#67'IX=@+B_`RDU M'*O/5#9X([R_4=*JV5:!;-MCY9Q/TR.= MP?)7@QW2H"%J@#V(8T`IU=,5(9^\CARP;6.+3 MJLL@E1J3J*!Q<9BD`#09`K65IJ78>!S%@F4>"3&FTX$4$`\C`I%,AY110I MFT&]F*A3,KO-TL+$YI='!^RP)&1#BAI4-Y9:2R^%^,&?X9C*4)^01`G7`PB' MQ.*=_7-BDQFE$)DDI:Z57?!L$KN!N!_"^R%E)>"#:)N1Z_)N*"-'0(?V9U$H M9O98R.XW.]A]1Z.RC_`4N?(H*^UCQUU>.C:N_1`!ST&@L*AAO,SXRUD!-D=8 M'O&8J2U[$(^?`(4Y;\UJ4B^P0ZUV#1:5^[,)51NJ"MD.[]EL%/NC?N."WTB= M,6Q"39Q@QCN%SL.I#1L4Q9:TD=S5(*P,?2,-&`Q:H'$E<,,C`#C;VUY(Z3T5 M`%7[`Q/"\IBBO!]ZV8G59VXLFWV3]/9#R;`T=#@78 M2:`?R?D#O*L'7#"8(VE+XF4T#?SX?DH3MB<3,%SIC!XQ7VJ)]JR1!Z15J+I/ M@"<`AIPHY"Q_ATR'&^!+WID,J_$`KG^K\74'26:@O@6E#64?\5E6&L(F>W$`! M:ZYQVJ!L8".UVF;.+"GS755S@B01#2FR:,03&*-9<(R$NL5[`XL5!_CU'[NU M1K]1:V.!Y!(B5'S$'D44+9I( M^+'1J/6;]5H31'C,\;F,*5U#;]#%TV^B`KH4-QTB68_2:DC=U4734!V*4MEN M4%=O)`LHPR0MET524I>)]$6.*RR!-G&*_JX34+[["[G?!5#]7P=%HMI MU4WM>J,+9DR2&JS)T\7_9L'JQ:NN>,),!);:`GU43I#4$2Q^`@T!5Y9O4E0\ M(U'5]EOE-$XR7HX,("@A`1N,$QFA'P=\3X'LWAV9>&L,."+F`]G'\!)>FTAM M)QR?[&"TARDLP<:UF>XT/3/ERL!>@=E@3@5/A9#/.,,?@)'&]^3CN*A(`NF0 ML/CCH!R=$NP5B&B>`-;CY4I$B3$N/K!?)7?)11:RQY"T3S41%"#W*L MAWUZYQL672Q)66QB64L=PI<=@`QS$8Y%5H]P^R0D)2T_B!ITA2/[FP`+!GUJ M7)R1%$)=/;%D<7*=92V[IFKKFG%"^BC#3\#I("@/)%-&QI7^L)8\"&R8(TPCCF#S_A2#^,0K^$ M>=@C;&6@CS2*,.*W@3"*`)'+&WNDOWD[J"T28%(REA'$1"CIQ(&M&T_PS):7 MGG4]=CX'^;1)1XL?Y)GKP?):8`Y314J8-BZGTCP'_U!(;YFNB7^C^P1R",>; MQ.CED=^N/&KM0+,WK3.U^*RJ<]'\EE]*AYO)>"45I\,IQ`CRU%DEIX+%J/G0 M0^<(*WAN1(_!IIRH#%O%*5;)B!$'K%5[%$43:UVD2UYYQP-8+@V*$"NU(]RB M1Z@_5B5Z=Q_DT6[2)'8G*%FX"]CE.5,P>F.:CEFOP!S% MI;Q%^#K,`6*`M`C>ABF0OX-6-2$KW#U,M1M371!93,IZB:OK43O(X-3(!XV%#<+L MX)N(5*DN'@S*OYZ`WJ)XQ*]',\_UTDV=#JT1V!DAFH_>_=]_J/]`_Y[CH2#_ MO=AQ\0(H&`9.S?H#NZ=$U'+J%G3*B23XT1E'4WRV_M-O6$\+)\<)*?9Y*'ZU MU$])CV2B94VKY54=E4VNC.C^SM)NEANVR-S!5V':P&7O[S\T-4LE:WB",%'7 M!A7;..T`BT/?=<;I]5Y#PS8-,E.QG)+].BOF;\G\2[!(J>!,]AIJ'W@!W(,A M<$B]T.G_M!=&?K$?K4_2."L+O:%4UG+*2@CO^H]M,\VRO9@5-F4% MF)+#X69G@'4!>^3PX:R&/;#G@[K:^3M>[7R%0X0?=I=_3(O7;>UZD5WVD MWUW?G7T\#B71/&VB<(S]>.B*HW`9BY!YJ`.OVV^])653+?8*+Z36:/1J@T,K MK2R"D[O+Y$M^UBL+_;0JB9I-N"8P4?JM"\Y8IW&AWECRM4K#56FX*A-4I>&. MA?E5&JY*P[VMM$V5AGM;ZUFEX:HT7)6&>TTK-%R5ACN" M#$^5AGL%BU2EX:HTW*O/S%1IN.]HL8\D#9>?AEEUA[%LAFPALX9(RWP'^1&6D2Z9RG;>1'EUA7#+-J"J_4ZC9EWXLB?L MG?WL4NM;W>$6MQ#UX236U[BS0'*I&9%F`_O1DZVC^YV?J+V#0A'A1K@HXMS3 MI%M/_SU!()&PX42%A`X73W,GIU=0"M.'>SPD=ZZ=_QIH]'QANX;M8POA]T4! MMJ$U:"9JJ#FFIA/V'V5X91>OK[=(D!-JS#<#%79D!Y0;UBWK#8BE;$?\GPEW M0(+83K#W\`ROE,=,0NLGU:(SY&V!4PKC(5Y8CQSJUBGQCNE2.O>0@7_)5FOX M+C!`PNU)C`3SNCO.!:%&4FO-+=F(\TR$V1 MZM8'&'&F!A1Z#=/BDNV_59/-%S'RBG`K7K*`V+0ZO55JNJ>"(0-'V=;B6$C2 M4+Y-ZKY=E[WW*>`MK;]P\1Y\!-?`AC#83$AMT,X637A1^2)J("MY@/ M6^)9V"!B!'LDE6Z$BL%\7F*A#+D#L&RX-M2M@;FG/O7##9TGV;HFH4Y"CS!9 MR2=9 M71S^MXF&BG)TX$H5A0@*S0&%XY:IIT45A#Q< MK4L,_/W\AG_Q@X6MG&B\&\9^L>_% M#XCI`ZOFAG__X>KSAQ_^43^M-UK]9.9EYK1C?N29V&I6GX;Z^$"N$&;%7[`! M/X`%DLSN>G*#Y_H-'.OFN"7YT3X.;K0-;K1/&LV35N,[YL8JV3C/Y\;=-!#B MQ@?E^L%Y$+OF2ZMS'(Q9)2;?-6-62,Q'W_;PJ3\$C/%->%__E*J4-E&&)^:8 M!H=*GXQ:^H?-XU_ZIYIZ^A+32>M8)7;9<;W>R)OS.F(7 M-J7OW7\WL>3>DEAR"DZN"B1O3:54+!+W)#0XG6XEC_%="JH)"CEB8(-CM^"L M\YV7L+KQ._#Y.&17\9FO)7]G$W@!K#F=O'-+&"# M+QR*QX-&:X-K\*_?&'FSXO#*)O8&6'.,SN16MC;"(2J8KYG.J53&:'785>OT MI@[,HY6>Z@+B
  • Q-\":8W0FM[*UJ_J@JCZH6J?OX,`\6NFI2D>J^J!JD5]??9"[ M6!6TJN`G6QR$3UQY813$&%R[L(/@V?'NS[A+ZV([)-6VS>AM]/7VTFQJ5/_A M'RU0V*"O$X)6#;(M07MMU;DXMV:K/1@<:FY[;;R9,[=VL]5]J77;4[?(Q5DV MF@.8Y`NMX.%FV>X/>@=>R]5*`:SM'6T<[G+GC&XX(P`L`H[.;?=%N_KF"=H* M);AL#KN;^<$Z^![=S%^@6V^.O!_OZG\O/#AT#]ZQ6LSJT+7B86;V8>A[4^[W#+]KQ3D_M3^QI MZT14R7&&'6X)444`R2+$'K2N'\;!V[\^TF@8]T<,EA!I#%QC,(;HK^Z1Y%*9 M3Q`QZR9&U-Z0\%X"^Q'S'O`-D.`,/P]-W_&!*MT$_C@>18[O23@A(B4/VD8\ MB``4!X+1_"=V0&$@KA&(JKJA\V##@1N'"*&$`%B(=G0?.*/8C>(`R)_S0$!P M4JL%TXJH/&KJST.ZR#,4(B`T'Y,,:Q*[$\=U0\N)0M`+LQD<[#2L)(6KPZ)I MX,?W4VLN%U]6F"FZ0CB^1LBPT"<@)'X8M4Q@CZ(82`0_T8:-QU\#LH@&'\&0 M0D8Z`WF:"P]9_4U$%5;7&M40<_KQ'@8YY+9[O4R[2T"E$+%O+BU8K"PDHA#X MRGU@`"J7^&K3SF54PI%K.S/;C(ZTR'(= M>XBX`@ZR"S]&#_##9.HX'NPW03"(L!]^R(H!:/QW/+['%ZIMN!HR M[U;,([X:U>PR8!X:CS5"3,/ASN/)Q'9]ZSP0"(L)"WM:0ZBS4Q,E[_/YN?H' MHN0Q"EW$,'DL@QKL3A:]2M&ZC>>HGN&K<1`IP+K;"-Y5ZX@T_-,/OBD<3WS4 MBY[QV?>!(Q#@#/$XX?"QQO:,#B!\$C:%N,<2W``QX?@$LO4DC%/M[!X,8)*L MH8@>!:AOF(P)XXETC&DR":L(8+#1LMXA00D;5GW>X`_A0#X*J@5F8M&"=FW> M4[@C1P[C9R(97NRZL(8*K@Y'7#4.[1H\1*V1-'`6X4@GMN."+8V\L[WP$2:$ M1,SGA`FHN,B*@4`-\9@D_$]F*M&A&%MC>L,P,1'6T1=%?N")9Q,L<"(DCBOJ M-CI2$??0$1/@#+PV1O,`E`Y65.,`J(I@9R,=5QZQ;X8OPSP1SQ`Q[UC*>-VN M1Y&/J];@90/AQB7F=_#3274W?CN,"3GQ1W!!&7G45+M@-UC"N[?O&<+6?B0: M)DXP0XYK626A#.>^-Z[4SVKUP[==^;(KJY^KL_<6N9P>;0<8_$P$OO7>@Q&` MAK/?3<4##YN*!Z$A1>H`4J7\8!7.X0"$9<[LV0OUA]0&!7-2RCDLZRH4]K#GV(M?A@=27V6@331*P9W&\VWF(T@NB7LT1=#AFO7. M^9F/8*GK0"VB?KOWG/\*?<(*#X8** M;JZ2,3FJ!G*1]R0=^8,Q>Y+E!%\$GA#W?K*D0*G6R5E&6J1,^@10-2P54838IU32('%2'P.'KZS0 MG])G`U,L-]F#@#_`'IVAF`3/J&LC,<+?R^^]P^O__!OWF>4BX8NBD,E(J#3W M9>3G"WL8^?/4M.FHF=G?\/08B2"RD5;PNL().EFD5AD-%X3@6F/XQ#5!QAI8G7N!9YHD84C6RPT.(YB=U4V(20PEY4M=WF%= M#G(?R:,:W?G$.H!]*+]12][^E=0>&!$QG:MYHJC6%8V5";@)C-06BC%,X%KAJOTZ+BN%@H4 MJP?GWHQ43OLJDLY"@C:/*8;JL(J>H3(>@\L#"F(Y M_/B%+//_(F!_D,K^`(1:_9,_V>!=ME<3WR<96!LT'P5BBZ?M("DC8.'A'HZF M.=+BK=CW9*78VC@<:^L4;++_C?'Q`,2'9Y&BD:A`.E'%,BBZ8)^2T>A1S[/% M@%'BV-.*1GFX/)G$7)3_QLO"WI@,$!5G8D^5"<00QABM$?L!%H#*+HD=/BI] M!;T.1$ID>0]#"2-"S33"#^BQ^YXGV%]&(@7R^/0()?`(2K MUX^HH.3ASJ%(RD105["0#``C0!KEZ$+695,;S66,SX#%$=.M;E]'2NU[6$Z0 M?C*H55*);8;Q@\#HJ9A,8(75V9NS1RR$88$=&895R378 M";"U6!6B17V"OZC!-O5.1B#N@I2F\44:$A.$K!Q#CL(9A(BGN8,]_"(]!)X2 MH0[BXO%%=#7KS3K]P#X"]P,$G2`>@7?^G`\JS.OI2">UECB)_!/Z`77^!`U( M:AQX:ETE7N9"7D2YFF3L@Q8"(F&SBR3\$*HYL"X9"J8$3UXD"L[&$;>-D$_! MY@_!J'7M0`9`D;$+O#!GYGBC@-\%E32)(PSSSAS/F<4SX(*':4Q4B*A>..P) M++-#/OK!'@/RQ\8WV*%!Q7D/=`:D[6;"]LC%&OD!>^-$A!'@\,(8#$#K)D"! MN((U?ZIA'XQ_H^+#]Z1?K\C2PV&L)/1EW$DOO3&T3.>FM#-\$&;"REY^>.2' MZ3PR?-ZU1(AI!2NRGP3],8P#E#R2#<1X=H)*H:[LMWE^0;S"K8]=3<#?AITG M11!/1;T3LYM7IVZ&8-+,XR%]YMZ9X&49M%MAR;Y^<^QI+17(4R\(\./L*">+ M<8L)$__>MF[G`863B)(D7R0!RO$H'L:.2Y(@S^FO?W+P4DD,RM6"02G3G:A@Y>ZG M)J5C7!^I.JMI5&=)?IP00X@XDRM5:=9.C1`0**H/XN2C/&C9"_WJ4=CGG)2%K#8Z MPQ`$7F/+IJJ_GI_EY&3\1ZR22/5V:G9^RF0G3.5#54;L>U/P[A2HP.BKAF_7G^_B/%'$.8+P;JZ.@TA(0G<#L5<_#WQL!`>P:*X&,T/E64.:QVDJBW MS`U@?I$/5/8O4"^@"CCW;?C0C/+4ITP`Y1C64_$':<758X&90)8.'`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`5=EZM:+;KVA5MEZ5 MK1^O\5^5K;^"1:K*UJNR]:,1QZIL_54LTE&4K>>7$R\OXTYJT=.#?;[3V7/O''0.:@57B#:M$HHU!P2EGQG@-2'\%S[`-E=ES M1Y;\F_`!(&JA$Q)\I[?4OI4P[?]C>S&"=C:;"J;];!XXKM5LUY*2_P]B&-!3 M'051R""AD8^81G3%@,A`!'=MW>55;^$#_-=32^.0)_<$&"40:;8>[5!!T_)8 M^B*#PHBWAC%#QDE$.0:I>(2!$A!"B5ROX"P(:=%]MKH*596P+C1'_O`)KX:A M($SX"OF'%(0%79OP@:GAU`[$%)Y@D%S].4;&8?Q&("CR@Y#A!A'#@B$>KK`2 M!8%<42PDR`-^=V;_&^9L?#B4\`],,>+@X1>MH?#$Q"'<.O_1X_&-;P(#B8:O MYW]\/+4N@U/K_YQ_V\_6)X2TD6`_%U/;`6G54+*,9`'_N-1$9]#"$1L#L2T* MOVW08&*+(&?L\!NL4K("CU-!(H!_)YE&G3MUYHCJA1*M@,:(^1GVR$4*.RSP@W/"Q4O<:V,L82<$9(N(/ M?.U9RI?O0B*4,D:J79](FNR?T`TW3XJ\G@/UAC M,7)@XX9__^'J\XW*)LAPNT-Q+""PRW(PJ5D7UP"C_[((/_ M1Q9,:<8]ANN(XJ'V8Z@PGS:+4'7QL7B?;/)&&L'I.V4 M82M(NR!'8N_JI?`PV^D68YB=*I;6PNY=,=*61!5>^=T2M0-ETFAV&XU&J[6" MH/RM6X*8X@IW9\3L2HD4H*C81MVM`MF.K!L)17WGGXT(X?F&P:Z?;US;B\Z\ M\7N%SULT=IG:^2:U=1#YUJ"74G:%1]\[W%PSR MQ;GUZNUCF%K;F%I[1U/K](YBU59,[8,?".>^U*0:_5[]&&:U0A8WF%6S.V@= MPZQRUFHUW>WVCF3L4LP#^#)Y9O"S*_`'>.%L!N+O_)=^OPM=UNDW4AN^R+A[ MI'7K3=YJ=7LO-9]]*"TX:YI'.)]-]G2C=8R2MLE,,KO\A==D]?[N-+O;TOH7 MI;/%^.Q!!/:]^!PCARX=-X;?+9AF9V,,JF]F:A6V#3>D:(\36[TNKWABL$KM MM[IB[>-9L2MO%%"C$-N5C@^[SE$4.,.8JD+N?(ZS8T+T>H(A\ELQBD%K.2+< M?*^M"V;L@;!B>^4%""LFZR_#L0*RNHPP2B,!5?Y,?/3#$%-G,6;<\!]24M_; M@8<)YQL1T-?..&FX`P/SI-<9T`FT,15[F4;9<_2D6^\3J`H`;JFAP1C(0L3F=.9&G9CTCXP4& M3G'RSO;NJ69`1'^A?_Q%4(RD8,1]D:)N0P8S5GY](:1MSQTXJC\B4\,/<10' MXI/C82V!BMYJ#(I0UVBDGOLR0&Y&[,9W-;KLTH>4I5-)P1565 M8GSEJ;]L3OB@'-W+22@_G1OX$/R7LHG7$Y"WS-\WGE2CU2DWJW649.=VC85@ M6&7I4>C#!IXX,/IM/)^[8(J>>>-/`MNJ@O,2BJ]8@'6!];CWWH)3M2H_FYE6 MOYW2&UO1L/<)%=([@_U-2'\'3`H+L%#5_L1RU;F[*AUZZW MZ=4*VNS1PX.=&0P6! MOP*!8GP>B$>!U=&R_/JC,\-?%XD(+Y15K:4P90E]]+W[.Q',T(9*7==YZU=N M^L:5&V3""7*!Z"+S7589=^#SK^CNS??>*J=JN;+8T>:57/,\9J8NX*Z\B>O< M=S5]Q<[QK/_$H&Y%X.)-D!!\ M#Y=/5[H&WY@&,R7_I_`2*-&)\'M^SKD>1CXLXH#7L MUJP0(]]\O\UU0'Q"?)`N]H;6/`["V/;HSHQMW<;#DX_TB+#.[@-!0?;3P_0% M6?NQ]=OD".Y.*WK[A0@^S$WK7K][N/8NE4R\"IG@CAT':^.T(VV_:=.?8^C@ M4.(+Q47@E4WL#;#F<';+P6P5BK#(\#L;$I@E/[A1O;$NW^D8!^HZW&S7FJ^R M/\UWM4J-P0:&4W4NEEC5YFD3EW7LQ^`/'86U5H3,PXA?L]M\I6@&U5*_!DUS M=`W.=S`ZC?1)&S$81QECG!O[1(3Q"/,$&/UX%G8@>TNHOB+AKWLDZSL)96\7 MH>NU#ABANTV!6*-,9*.?9.F=_B(F:.`#3N2OPW\!P=;0-&X]+#-W:EDN@,[0%FN MS_WF%!M;"9K,8JZDA2,,L7$8-HK"[$STB(=G?I(F_=E^J]9JM4Y;+4O8HRES M!+OW"6^DX9Q4^\2!ZI;H^O`G(MW,[E#O,MD3J_.390]](($:YMG>-_SE>^_> MQ09?0SOD)T^M&Z3YF7%P0VRS-7.B2(Q/N9W>W*=&9>\?)-F78F+';E1#ZV+8PQN*:U"QG0K_&(8G9$QN;:L'ZXB/(1MM2@\]=;(@&=M8\,CN&P>LU M^L;,QF9Z,YPW]V_$BQQC!X5R+$8N6F1(!2V;,\,_P?2`[^.8(2%HFO1E,.C$ MDPA&#O``&Y&1FB&JL./9R(U#!]C&"2_N*&?*$0Z2F^UBEH2CP!EBAS\8F)^)MU+]NBK52H[O++#*SN\LL,K.[RRPU]/(_=B MAV^JL#2_"_PK/+&K$LPCC*58%8R495@'L/1 M_G;J#(_W"R_.FL/9+54)YALN[JM*,%_#*E4EF%5=7E6"62WUV]0TVP>Q2P6A M2[6R6M+AH6YT>("?!ZK#@XJR?/TSU=5!_?GW\YN%-@_PNVSGFE;+;/VYDKZ\ MR9QYXU0/GTLG'+E^&`??`;CJP.CT()E`5!$GK.L$IXU(?[V]'5X$HU"AX;DD M5ES=(^'U[#`4$4+-C0F+DJMB:`-%4YO*<48N/.-,'"PH"2W;&O'J\,<8YW)" MS::L&7>3XK^HHIK0"E3?-AX$RU!&Q@KSTUBKP@BGU*(JP4`E,#T1+?NX3:'. M#+KJH2LRRDO'FTI`;1=7[]?W4^M@U&:\/U1MQDXCFB\18NP=K-"CL8D#^SJC MA]NPB4HZELCOCDHZCC3^MI7GTZ]U7H/?74!+'EBF>I5,O7*9.C8MU:\D:IE$ M[3L\\V:UU*"2J5FI9J'CY)^3XF0!MU;.GZIW%S3O=DT^%;+WNS6VJ]A MW5]"&U':W":X$8R1R<`7ZB95J5>II#W*YKM&$XLC=\/C;0CY>2D)+Z[4MIG6 M33:0FQ_`K0RYI4=FJ_(WJY*C(U*8S<[N4LR5PER8UF??.U$BS8DZ5>9_'&)= ME5\LI[S??\U7"(O6'JPNP%"025_L2-Q&5,>A<(\LE&>L0$ZKG\((R^HTRDQC(_"M*^]N&@CQ3VH>L"$L M2K-?$ODI,^ZFA#_Z+T&V''5YVXG4N_0Y`V`E-P]E** M0314Y1A5.495CE&58[QVQ[,JQWC+J?/C2W16Y1BO7::.34M5Y1BO/75^?%JJ M*L=X[3)U9%JJ*L>HRC&J5%)5CE&58QRU[JS*,:IRC*-2F%4Y M1E6.495CO,%RC.WSVME,^4>8VO7D(A!C)UJ1NU?E%E_\9]M%N([KR>W(CQ"M MXP+!0(*18[O`Y0=G),)4GXR56?]&L]=*Y?U-S M/5Q?7/<=$4/=7:XP[>Y,'!30,VXV4;#J8N5Z]7"YD(`E@^R&!L6?SWX03<]@ M!\")Y=V)`.P;/R@D5ZU&O]7>+9UM@\[VKNAL]]J#[L'H!/4%BK84A>U.:]`Y MV()O0F"CWMT_!U>OXJ#9'S0*T*"/&ML5X1?Q(+Q8?!:Y39-*[\QVO]7LF:HA M,\AN:-A:XCN==KVY6S+WL3$[@]Z@<7\YT?2#\R"2`N'KB5D^3`//Q(T;AP7$M-EM-E(6 MU3;3VHI'F)B[>UPE9@=F3:?9;F[,&CF;+$?,XG&C[R!\YT(W/+N0_O]R/V0U MV8U!RR2[Q)`[IK;(P9UE\HM3^\)"]G+SS_BXAYK_[J3U&L$QS4WZV?=&I??2 M4^C\ZCGNWW^(@EC\8/VRY2A+]L"Z4=*W0Z2V>;X$=EP2T.87AWZRI_2"LH1`($AH);TQ5_)'C%`!,NIBM(_6V/$:M7`EB'ACOKP,02W)!3:L):@U5)/2.$0]FED-):$ MUY'(F?UL"5>,(B07$6&82GJ4`&UCQ')]#!#=U<-GG)&P[F%$3Z&:,JSJ'!O` MPM^MF4^0JK9G=>M`Z7-(EQ/@#Q/Q2"3`7UKR+_/`\0.*N,EOB:>Y$U#34,QW MT:R1B%--ZEC,\',*_16A;)UD)'GA`>E7/^)L0OS>G)JY$J\1L#80(S=&_B!B M#Y$P]C%S'"(@[\B.0\:%Y37$[I2A(0`X=832/2$.$/W=N#!Q,.S.0@D+#=Q;W?T-3J]M(V^:MP%IX$QDI#Y M^8;P[ML--^KU>BH&9]!0_$3:2#5O>'`D8^V*OD*WSC*&]0O0]\*NQ"%G?.S& MR_(9G\%I$SG_I1/C>B(5KG=_X8>[B5DWTU&(5<-M2UK9^,06I*6/&\.:X1_Q MN(2%'(E&@>UQ[8FO'@K'>8#G.R&9RJ#9E3?"-=BRN MH'.?$[R;.D$$YMN:6>9*_/)I=NI;3',LG%\O_1$]?O<\%X7OQ,*!]K]_^R7[ M>I9[ZNR$;4[TG]LA6*2;[*9E\S^IG]:["0-R!]R8JK4;:155G7U1!?QI;\RK MQAYYU=Z85]M2=>FX<=8L*GY'427-;J/1,.&P2M&Q\TFL MEKU7,HG54OM*)K%:X@\SB:]>($;^O>?\5XSO[*=SX8F)$^46`VR8G"HQ0LG$ M%!VYIGEDEEY>!O:C=^V]=YU[ATR\$3)53X-'%DN1:-<1>A*RZ#?D99! M>3(WF:4V/`XYQVZ]W!PUD0N]U_(3@)N:%JUN*UV9N^3[BTF6!'OQ+K"]T!YA M^.\F#D93ZL\&[#2?*9GR7)+Q6%.BUZIWTPF9SW6TGY;$;$[J_Z>YX83OM?F-WT\WZ M"?K-TDNX)FK0S/-*E"M]1YX$_!;^`X']RU.Q^+MG4^-#.'@\%9J6/F&.956:%-IQ5 MI]\?'-.L,FM52NXZO49_1W.YL,/II9C[X6KS53.?4EM_@N4]]F=%2$T.!7.D MQ:-;FXBH0BYH,+&R%>VF%#6;@W0EX+*QLS2"9A\C=ZDP33$]>?G&=YU1837] M2GK.XJ"$QGR&W5W!F*9B,J+GTH^'T21V+<4*(CH^+O*/&[!Y9CL>UB`Q9K.M M6!Q2P=Y8\=>6_*7?PJD(HHS)$]3I$/@WX329=@55-]2B1\LCUP=!3`>NB,Z1WL.TS=?6D4L&U\^.WC5'BP ML;"JS<%,"W<:AL?$*#*&#^>P]R88*I`TZ.G\FOQJ1![5R2/>H@%3+`QK1,W< M#B,K2NPI:^J$Y`=2U1R-)[]0T^T)P"OW_!F,AZ5_P'UX`%Z(X&]CKBX$,]N[ M![XY7C*^*A&D>LA3Z]QV:1F("+R:8`U4$2)2-(ZYB3(7,TZ=>_Q/X(3?='\9 MK`$,Q(,C'@41X3PXXQB6]YF6,,VD4^N*RP\GN@00I@#LX,)&KGA,9$9*=+O[ MF[FLCP(+*7U>#\L&&<8"#L$EK#7SB3Z'A$B)C`'N>"J[M6?3!:H5O6O.:0M3D!M]T`?+:=Y M]\@+'4>+=KP,4_"?WVJK='ULJ?FJ=B75\;2&)(-ANKM[2#@)%NP;E&&06]@H MH-IM#LV"Z(2PPQ^GS@@$'FMHGVA'RX/#"4(=AF[G.?VF;41NCGT\M."R)`K4E`W$?NW;@/DOU&M+QYA@THTY)NMN/ MJ!>2/PQ]%S0C:IYQ/(I@)E'@#&-9G0USJ%DA[W%2B[@C_Q/;4CL;$L2Z&/B` M^UT=D*@"U0!9/0#$V&-D.8\TLH/@&94-S2]W5R_;H(ME:Q,!)YZ\0!=^)]M9 MS=K218M2/,+*_"Q&$M>4!N@/*NZ!8/I#-$/)O%.,91GG)B28Y>!SBBM'4>0? MY&E)UQKD#8J`W4RZY7!J_846H@WZPO;H&H7MH#%D@4GK@J$!NSGV]/>(D&3L M$5')9M0,AAHGQJT:0Q^3TJB#74![S.>4*6S.4TN+2_;+ZB-D+PS]("#;EHB8 MP:EJWKUHL''U8[/9P:Z:IY99/8L3'R\;))]0$%B'V1DA M.W&CX`/!F$Q9\LO.;B^L7J`V)8<@(DEV'>6"D,%@PX/XZ<0%DJ.2 M'O+0`I_CII-;=($*4DT$/V/)M"S;V/#K&9SK<<`NK;E9X46F)[2&Y,;0W36R M;YQOPG6FOD\7PZ11HC8[O";]()GP)85&F#QXHPYTSE<-N[-JNK44)?+:F+Z' MI_0"6D5(J"#_C>^LB1FPP@Z>^1Z:`W\)!#DV0Q$]XM5!1OR1AH9RH]!&[9K0UCX.Y'TKFTG3DI\@E2I:`CQ`@4KU@J%V#R=EA<;YR;8#W(8XH M/'#SY5L!&9#B:2Y&2D_/YRYYK/!GLA&E!#B>=I%I!7!%6/3`R,2;>8IAELDL M'-[\.OFU(SS4\&P+P!S$6KSQDKD$PDK2_SH@!BL72^]UR:`8-%`5/12_8>;" MEZ7[1^L&WWNT@W%(YF_B-=.=1&RIAPX]N=;P27":18!G=[(,&%^EDX8LU:Q# M&X&_[^$,>?8A<_0;7@J%HY!8+T"<09,`?]V876,*H-+-R,>IX-NA/@@-3!0^ M).^"XC\YC"6_0+J![GHZ(S3:0>L$3@@S0.K2+NS,7LPH^F.UPGW^L+CLH%X/7U.?C2Z)ZOI.354[<,F9>';!E M#UBM2?B(#21/M<$[#,2C.@?'3LB>*QU'B5&9=PPG)^@MQKA0H\"88PS&\G'6 MK7>4X:X+98B$W%?/??A/>MLFE%LIJI6;'6(3G!J=8GCT.B%;$J='LPRO4S)\ M#TX`"K_#6:!6,`G0CP('@\"VT4U@)J*7Q^5K%N=Z*3@^`V.O*)!>Y,\+0.6U M^_.G38'FFNWYTV^6P5+L.+H&+G#[QJA,Z*#;&_Q6LCMJ.4IS%WP'3L)2L:WNCRBK*1T2[LMK:'7,::*_4FV%:BN\P:U`<,="Z&"(>08X(?B; M3[PSE'-H4P=R,%>K[5!MA[>W'2[2I35.F)0E4#P(`VFG;UST7\I!;/<,VY2H M>9^V3\\2W:1>Z?]FR1\[,*CIUHUE/XV0_#>J.;$%RR9`B\V,4<\U+6) ME&$JSR6Y^`PY1F%+D3E@T1/2U5" MJTKKI,Y9UGU3N;)#F][(RAF[R=R32Q8-.;$XJ5HJR.V$9HJ5E\4.I[P,U7%0 M(H,0C'F-59)4G=!\B%-5%I8F:LF9F-$FM#A<>\3+"=XXF1J8X:54MT])7K5D M\,6IZMIK4\&'X`M(>76<")[4QI?6IYI05^](!J>P#_PJ3 M#$0X][F2._4L%YC*_)DT5UR7R@WD[:A*F%:0)#.\H4Y'FLMH&FZ8I9S'0UJ3 M>V>"/BXV=\Z42E#6BM*"1AQ3&H;*?Q=S>9443[$HI\'9ZP. M1'U31;ZEBL\IC(>:UY_-0%?!?AE]F_HN7;F2GORC;(*B2^T]:H/"YNQ$OTD] M45*768SSF.N&Z+(.3`-S\5F"DFF()VIT3N^-48HH%4?%9W27"TFT_'EB-\#Q M\$@'OJK#3>[EUIYA^9U410KAR]<=?A6D#E[V__]#5+"V'Q[R&ANW240'L3J[2MZA"OV06 MH5J!+5?@5M^2>!'^YZ10OI\-V3P^<>C^TJK_@@;[F]Z'1\SX=L7X2N*_*\8? M6N(W.'+`F`0NW0=^[(W1H/2#7ZW_[^+B_?L/'XI4=;1_V@L#/TNWH"3_E)&\ MG*CRQ2S MT>KAC>1J0:L=+B6BUQG4NI5$O)TMWJUW7M&"[LA<>9PZD5AEK.QA4JK=N-'4 M9DELO>1:;"]VN[74]R>LC6:MVVC4&JW6*V11Q>17\86*R163C].!W@.'SI=D M+X]%*`]I3!_(WD(,N=VP]Y`F\_>C-*H%^AZV8+=:X>/>@F43$)476FQ2"O=" MU:92H7FV3.A8)//MZ9Z38V'M&U0;;XBWE>`?\>)\5X+_JMW;CZK*E\M*J6S9 MJ/&5]T`JK_=($\.5T7W()=HLU_N6U^@-[L/-TK=O>9&/;R-NEI&M'."B#O"( M>W7;KDJ]TKT5.PQC;"0AGD0P/]0L7DBLG'P***R6_#&;IW@NL+W0 MIEYWX9DWIG]R&Y_O`!!X8\'!EZGSF>0F34.QU#*82--->J2E1.WU5.;:4&(P=BUZNN?"#$N9+)BM&$VQ%ZI$LZ2.9DO0,+WDYEGFK856;O0= MV0*3N[#9-);L9FE=Q#/JY?60$$S=NG7O8VIWZX^XKS)AQ:&'(2F#;V=A.KE9 M)R^%YWLG_J.'O<:)R%#A;R+,*\*EGR&@7A$F M6"JT;.](9WE_4/@=-66OR75)FL!-%E<80:V9(RP9U)K:);148_@:KPDA3$86 MXMD'^!75E0ZA1L$7`U8`P[$O[8309Q^U@&I14;UZERSO(@0T_M/C#D?P;'KZ':`/88IITFH$@/0<-.G+FV'7V7H#N8@C=T4C,S0/F5B+>T^:3J(,<(;.^\HX4Z-:DQ%++;7P<:5C$8L<^J,LL`:!=Z[A54A<%#$V-.3 ME#QA%8;=&PEA5`$,#&W$DACBG,8"%@L/%86\#30$D8+.YJ-+3HO/8P+-CB/' MA-?.@>?.;0JOE%,6B4U?Z*'F2";`%?JIPA) M*2::6.>R:ZYL^>M3X_RE/6YU[):ZXR:'.9M+O!'1IC*Z_UJA'P+N"Y4J9#-UR>O2?)JXC'&^W`R0I(1B9&*SR+'`QA$BRMV#17=9=G?> MBGM4VE\4TOQWM35YUM135O*AL@9*HQK,"&:#MP&BO!N-I*-IX,?W4RMZ]*TA M.F0(J1%*3O]JO7-^UGC:QEMT*-D,H1'XL"73T-K2/$@!<(/9GCRDW(X+(&QL M6^_PA:2/\V=8\:EU-H/YP^%JW<$)YR"X1M*Y^6?Z]CL'J,L?`*EX'P?PBYH\ MD969`1YO9C@SJI$W5AJ:1"*!B%#!-=&NUW@@A-W-9)`AY4^2@XQJFT[`:;4$N?,EF@4+"?(<%3(A-=.R^@O.SWH;338YJ0= M,0+BC*;(^,!_D@8:`UPP9I)JTQVRN9D0B-]/\88HF;O@E9"TL0>Y)5>C$4D.WZ`7Y7W$/] MW^;??EGY)37?SW_]3&W]KR>D*:^],PX5?,)P@/M\#GOQ%D[CX+GHZ%;L M.?S0)5CDH)-_`,.:?@C__L/5YP\__*-YVOG;+V6&3I%[*_`IT!.R!?VE=E/> M\OD]I)J%^JFE#W/-!R),]>-/'^?#XYQ'YH0_+BK-\TDJ35N")A!`X:T."I"2 MT,M@G=T'@F-\F3/1>$,_8QZ_%#'X%)Q:_[3#Z1PF=@MJ8@IZ"]3C#7C("/89 MZ5CKQ=01$^O]DQAQG>#U!-QF`6_?Q`@2ZD5*I:>P[O)HJ#$T(HY,(YHJ%6T5 MB:*G#',QF[L^`73Q608GU.^^/Y;8:M8[&T&Y)HZ71#7R!OVYQJ;&TH^KD"7& ML"7QQA_Q-?J"PU`38V%'4_S%`UDO"N<+:'OWD!Y$'H]J:9'I?HQ0"3&X,<6) MQ]#E%*%3ATABY$2N#'4BF(H$N0JU3`R%!U^5@1();R:MB>0A!7O&WX6#"^$` M$UA.Y`*H3"LB<9\B8)R,YLY849+!1#2$K*G?*4@--*,>%/3A(V)!6.\:S9_Y M1171Q\B)T":=R3*R36#.,XSZ@KF5H+PR%`Q2AK%H$!?<#7RL!_Y)(!W&T`%7 M%9Z>VF.)!T(+F7Q&+89<\CMC[$OT%(LNRV_:/.(@_-1_1.[6&`,NRN7VS'YF M5+RGD4"S:NK@%G_7JO^L0N$PN]R]D<=^:Y'U["@O97]H,!X7U63\&-X'4_E& M"HPUC@FL1U-C)8B6>?S0$LHK@B!K[/6#8"FB'2^,X"'^?F8YB&C;:M93@L)B M2P;3G(12R;.$=Y7A0ON"@*=/C++R>E+*,3AJGC:8DKL!@:>((7/$#>QC/7Q"& M3HS/&"1UF3W4K"M["'YN_$N:K/_Z(AY\%X/0Z6]^$KCI_\5@??\ZFX#$@E_I MC5$(^&_&%+_>7IK3`V.KV:GC_U/36T[N4G,/!T(=HF:)V)EH]?JFHN\2,QFY.Z)KZUFKU6,7&+\G0\Z2/Z! MGSH@:UO==J^O96"1E`THW1M7.^U!`4H3!?H@9.G*E:?'"V^-^IPS5=&"!0C_ MXSM>]'_P>!R(0ZY`HTD'K*GYMR!\[US8ER[:"Q=(5&YDE!$>>J^"BP=<7SB? MVATMMWG$;$3MGM9AT.W6>\6I)2MEQ%__DH1D#\?==K,Q,(ZP/&HV)'A/#&YV M^O6"!.><'Y]]+EH[J`2W&O7VDO,LH6=CHO?%YVZO7YCHY$@Y^`'RUQ9S(S(WV50[*OV6T:SFF6D-)4[FW3XS*OHU*)*OP] MB,7X8U*?I0P=;_PB"J!1;S52%FTQ"GIGQS>:RG;?A[[6I>.#(:4FX=:Q8^^=X_!GDLQ1&(N[+D#>NLCQB^O M=9#Q!9:G-6CT4\&*4H3N?)9[6KQVH][K;#W+!2?/V).'--[[]4:^>VS0LRG- M^]H]K3[::P6)+K=*!_6+&^6E:'>SVI=_U=Y\4KFY#SB67G2']+KU1CTOY+Z4 MN-U,9U]1IGI[F^G09GN9A6BT&]UF)D"V#9E[4)W9NQ5(+0FT#>E7@9IC:;O:X17%JD92-B]^6TE2+V+"FY MOQ039^0>UI:3KM_F`7T_HST>=(U,(W7CB\MHZ\W4SH M@"&YHA-29N<7=7FP6-'%SL6LTZZGPBZ*GC)TM@TZVWNB<]`;=+:E$WC8WC,_ M6XUN=VLZVP:=>^)GJ]EN=U?1*0V8,+J>8(5J>`M"G"V).)R8GK0[@];`,*RR M=&U`]@&D]J13[_1;NR7[`$)\TFSW&CLF^P`R?=+L#@:%A>16N-A?!(;]1!=P MX&?;&W\1D>VX[R5ZUPL)>[?7Z1F.[UHZ=S&O0^R&7MTX+0\TKT-LEU:SV7J! M]=K[?FJU&XV-Y_4[-VJ`Y\]25PG?J\N#+[2Y^F91Q3HBMY[1(;;5H-EO'FY& M!]E0_7KWH&NT]ZW4;K;[F\V(+^8CJ=?);>(7VCN=@1%@SB-L(\H/XOV( M]E/H_.HY[M]_B()8_&#]LA$G]R"XV].U'\%<21>+)O;5>4'WMC-K/;1E[;.7=`F*"2M!Y` M7AML[F]/ZP'DM5WO[(RO^Q;8_F));YI4>0,SG'[`GI3&V0].Y`C,W<5L]^$$ MN-$PHXEK:-QZ0H?0ROU6K_R,U.JI2])W_MGH/[$3B!N^-@\^24[BZY#G8KK: M?2V=.YG800+#O=YV$PM\O')/"VP699:_NYN3:Y%WC->-M0U-.3Q>H\5+$D7[ MX(N0]^NO/;.\ZX6DN=GM)3[H$M(V)?\`,EN:_!OU1%(_]Q5[+IBE=2^U%,:] MJ@)4[F1:!UFBS:<%AB;WJK[RY%:Z\Q-R7NJ<[AKG]&H*MYS,(2S1IGDCH-!D MS*OT6#_P8+MX3)Q%%W808,?S_\->="_;=6`Y7=O/XH"="O8YC7T5171;AYQ% M:T]E08U6K_PT:!-]=#QQ/#P,K&$_\B;/<]M5I?-=ODJ1)3;`[:OLFYW[^M[.;_S*&XR;W`E?9^W\;=MC1U\I*4I2I//%&\#O.)ZA% M^>*$W[X#\"39)]Y@@&HJSFRPB`]5:^HB)"4H0MC1+8BYJS?#%-E1@B+M/B.D MT+_%*$HU3XM\*S2@%T;FHE"3-EZ0`!8$_Q@Z(77[!6(=^*)";K&QOSS^()*S MKZ8[5JJ&NU;2;/?4PH,WLA5IV*YN>1_[I6-0S]ZQF/NAH^&$1OYL)@+BR-#V MONGVV$8?;=FZFA@TM1^$A8EL7")CMJ?6V2+9-%Z"XA%[H8"]+=L%LU(1`5.E MF>W#'R4-#L-YRT'$@P.R@&^"$^IC&\"9[V&_;/@1NUS[K@AAFF93[E#QDKKF MA0LLS.'T;SC;0"#844V*A1/J]306&W[K.C/BHVPWF&[TF"9#\)\ MDATD$XP4>S*QG2#,OJTVN^V._"DJ.VLHN*M=F&X/CK!<1KMIF.2/C1H<%QJ0 M2"X]T_-CLP9G>JT)?\>/YZP>SHM`#_12$2D+8%^(5Y#M.;C8/;"P!E_>W/F? MP@[*M7;&G_.:.^LO+78I$6'TTG5+S;9Q52M+5&F*#Q'C;'8,NV1KB@^1+FPT MV[OE\=ZSAHU6?5",8ADP1=IT\`XL.K1G0[7S7JSHHF=<=BE"Z$YF=I`]4.]L M-#'3&>:F\V!7!QBTNQ3\WY>Z,-)O9YWU?/JVF\EAR5[W+-J[)OJS3%MO?H5_39,G-2 M5R$VDA^)Z\G*E$U3BSC\W%SF5!?SJ5?E[=+D;$?VZ^#\!5Z_5"$H[E\%]C8:OWV>3;TW<+F-NXB-K=3[YL??H\@`,\7Y`FX M5^"?/_TI"H.E_`.G,F@,&JTV#Y/[M9SADMOYA-P=7L<1^H+433Y?O_3!WC+X MRJ\M=+UN-+N-1J/52E&S8K"%WEP%6_NNUF'-?KIV8F6/WJ+M>5?GANKMYJ#P MD#>(#.J,I:VZY6R[K?3(N1_?F((BD^^U._W2%*CP2-)O?UV*CF7 M^_6-22@4BFX/FMW2)*C.IC<(/&6F/+9@1J-1[_A21FE*M!XMU4=TV?>WH:,(5[*M08O2L;;/Q.JUZ,.PW45557R40BO>0Z6T M?I24`[BE(FPV.MUT7[NN*:-)AX'*=/[1?HD6Z[J<= M&(PJT%AJM)V1N(1GRT1TS<[9GAV9CJAKQ]D)844$I]]O;D18;JQS>SZM:TFZ M/16%SIHUG427+-+2HOM2QF@F#I-7+E]TP$)1F$Z[^'B%NJ.NJ7)L9&X#KFIL M7*C-Z3HCLI%U,):.AU$WAX%KL*6O+_$51^7FNU;)E!ME0U66[GJYKNZ[4#?- M%9_>*'S(%+W M@Z\G=_;3QOJIT\["+I09=@]4%S,2%T`PMJ&:NAAY8OS>#CS8NV&I!K)K"C2Z MV$PMW6EOW6"[(:\('T_P?GRWMQUYI9J*KFF3TTTCCZWOGUFJ`>BZZI]F^F19 M/_K'S;NKE@Q0KAMI%Y1M%M0L2]D*'Z"\R[;^;-YDL&+Q"WF]H_A06>)^#T`G MW03^I'#EU1JEV$_O'N/[)8SVWTP`[<#=#Y]3YK38GVOTTD,-6L\X6[*VY M13I(!YI7#)WI1KF+]6[4F^WT-?+,(!O04/I>=J.;,?^WIZ&L!'2Z[4%SYVPH M)0G=AL0^+$C"K>V*4+;*]QY:$[3JMYHID<@;:5-J2@M'M]?='S5EQ:3? M:*6/U!VSII3`]`>-\IQY_S1R0H&'+#YB73KV7CGSFC[4Y1:5U3*_>3>>1 M=DU1:3W3[+;[>V91*0D:U'OI\[$80;K-+_4I)=,VA'^5ZXV]6O&@/C8)6SWD M]@26UD>-5J=Y2`)+JZEV)QU<.``'2VJO>J^U.8%K.N7N1`B;C72V=CW=Q>$@7"PGBK!9&EN0J/NHE;P)N*80NY>6OH51-B*C MM/\.XM7=/1GE??E,Y=;.N%'2K^\TV^7(P*#S9]_SU8.EVG.6[K6Y.-(6!)5O MQ;;84'.G!)65FKRNF;OF4#GG;K$UYGIZ?K<=#W,4UQZ:9]>35'5P?L.:XA*U M+DRZ^>#E8P+IP[;0P#OEU3K9VBNO2LE1VO;CK6FQEB`PI* MV^6=QHXI*&WO=-(^WDYX4,ZE[I/>%65-ZZW3KZ2KIM\N:TINV MW^E]'YPIKRU:O?J+L@8^(571.?CZ.TJSMW)TQ,)`6]!38&^N,U'+S7Y;@[C< MW-:)T+K1/HLHD:,=J?U!2K>E1B@]_-:J=;OAMU5?6T]^.Q6Q[P+;"^T1*I4S;TS_YWAH_2F_[9O\%]DO.`#O5`;UN,]T1&)]Q4\[/U`+T>G+IN#'\=G6_F4+R MM[;WS(:4[&$BJZ7U%4UDM6R_HHFLW@F'FLC[R42,8/N\?QH1$L87.Q+7'K;A MPVM4:12`72CHU%XN,_BN"2^MOK%3P(YH1]P1;'2(:)QC,3Y__AJ*\94G6V!O M`,VV3KNGR\6*#[];PDMG&-J#_F[H3K7ZE'1V;>/=LR-)4OW>BL9=VZ#H3;-@1>$V'H+^TU6+@/[L;4 MEM>U]>;VY"Y1%U?>@P@W`L!C/[FHHMJ1@RT**$J,77//-T5I75^LTTP6AQ4??+=WEL\>]QHX(S_:7OO(6 M.V'M@M7]1C8SM7;879%:EKO@6@SV0JO9TT.KLF M4_9FI&!=*5C@U99V;XV0+@Z[*U++A[4[:X1T$UK3G6)W;VRK)L.>J.==Z:>MT5FHX,HQ!<]`]^<.G'PV@2 MNQH/;"",*BUT27T3#/AR%A395M\!:[XO`5I&VHLUT'?U&%!KU@C=@ M,>ZHE\:2.C\]QF94[*2ZCVL><93=]'^H9]R%Y/MEQRYM<^%5DC5CRZZ=KBL" MSK>(,5D<.\D)]A-\MIPA-B%ABQ4N"LJ5[A%^)]XNS/$0?^B>6AKRV.0.D6:P MR"(>62J,$OF69)-%?,J`(0^/<[(9?.3CHM+D/DJ;XCQ1Y!'W$:S7"B3?Y]0B MW_%&;CR&?_(3\V1]OIZ?6>\0,%9!%?=^PU_1.JI?]7_[F:!Z;7@A@ID]T'GC M3ZP?6[5NJUT#_6&`S1(E"G"V)H?&,@A'5;;;C-Z,",S""H!,:^[&H=4X[?QD MS45@/0L[J%G#.$)RD4CQA)%UX.Y/"*WK!)$0GD):UM028'&6(S"F;XVHT2>L M%.Y0&-SF07$",&:=Q@RQ5D+B&")H["6XW_L:>SUUGQ.(*Y)Q:7X&-@28O7)"# MFI[66,R0NS)C2"0@N+:34#;Q7==_5)C/.&WY-6(".HRXOF"'G])'"HH,1$(`JTEC.0R8.SL%%G,#]>EA0\0D#S@B<0A MR?>C'WRC\B5.^^.(&!!\MDAZLKN/Y1I_]Q$%/3!G/;%'F#%XQNW$,46]68@* M_H)44@B/W6OT"2*;$+$;M6ZO5>MH1&Q,0J2420KBFMX!=XD@^*Q6@W[;KL&X MX5Q@0DBXSXLPV)L?^8O&>E(D$7Z(<3D^(3![/+N1F>O+6%QY'_PX0+CKC=MP M-Y?WOR\R[*9D`_]>@FPU[$9DD_RS+MW4STS;R"5'7:A>HZZLGT0T10"'D;T`09E\=:&NL'[: M[!BU;46I2]G,6>3KOT"5+47I66X9_RL+JED$@;>50`NL(V-KFG-\BTUH;K3[ MAZ-Y!9^_#NVLNBM`O8P+O3C'#T=]UCM6%^W\("#[H6C06E&N7Z1[F&4$IYX! MCEU*T5:DKQ"9C4G/0MZNI7SMR5P8C>Q?^P;*WHK(#(-WADRN^F.7)'%E6=74 M#Z*2!9V[GMISL]8"YP5_GV`5\:7#[,S@A1K/P, MLYQ*D\6#Z8*;Z0=%>'?2Z7?[^R!VQ;IO3FROL1_.KB!6WMHK0V:[V=\+2U>L M_P94#KJ=`[%RW0W*1D%"U/[.U'MA3G4#A$_%NC^$XXEOPOOZYT=GADY`$>NA MU1VLPD1=1=*.9Y,YF3>:3;_>S(+0E)C-WWYY&@:N\RO^7_CG_P]02P,$%``` M``@`E80.1T'D2!NL%```Y1$!`!4`'`!M96YB+3(P,34P-C,P7V-A;"YX;6Q5 M5`D``UI1SE5:4]I\GH;/+UZFHO MR/(PC<,$I>#+7HKV_O9??_J/@/S[Y<^C47`)01*?!F,4C:[2*?IK7MA]3S\=/KQZ/3CL>:( M>9@7V6;$@]=/!P>'!^3?BOR7!*;?3NE_SV$&`@)/FIV^9O#+'B/GR_$'A&?[ M1X1R_W]NKB?1'"S"$4PI3!'86U/17GATAY\_?]XOOUTW;;5\?<;)>HSC_34[ MFY[)MU#2GN$D@Z=9R=XUBL*\M#+E,(&P!?UKM&XVHA^-#H]&QX`!3`/ZDUC+9M0%M9]G#%Z(B2SVZ;?[!*&"?)R?I?%%FL/\C<*%%R6W M1(*RNSD&TR][I-7S:&T<=,R_Z-#F;TLR;3)(K7XOV._*YGF84)U.Y@#DF8HO M;F,;C-R'F(@_!SF,PL2(*RYE3RS2208H+MG=]&Y)_1#!(R,@4=^#P1RD&?P. MKHBG6X!KE"G5V;4_"^)\#;/Y98)>C'AN$?7$V!AD$89+JHV&8B;%8A'BM[OI M!,Y2."48DTD21:@@LR2=W:,$1A`H9>BK_Y[$O89_%#`FLYPPF)K5N4`^)X MWL+G!#RB!Y"0*1(31Y2_J9A34_:EN>(989)_T?Z_(@(0SB$9LSOGG3OLUQ38 M\30M@4?2UTQ&Z6R4`[P8@^=\9*).-65/+'X-ES`/DVM`4IV[YP3.5KY/Q9^" MK#=0B1W16*Z-*+]]7[I"BP7,RV!7!N4R")"%C(8/U"#MB M)^H8T>IM7"3@;GH>9C`BA&.8%)13@B,M)MT#/)F'&%2"V-979X;L%UE,3:=# M5_W'9T:?S*>:8)KV8[%\8ZI\DSZLEW=,F3?OR57YQQB6O@:PESB.-HZJEG1I M3IG.';H2R&@+I9_>K>?4QI[:N"?K(C#^MLZ/MB7VT;<'8AK99^\##:"`]?2Y M"?,"PQS2>%5K?XGPI(@B`.BYB'^!$.N&;[NCVEUJ,GA=%H1%<`-3N"@693OB M>LJ2*>&1)5]_K*D>^R-;*G>;YT)Z]/;+X::<=^C*=F'!5`3CCFP+T/:$0MXZ MR]9A#&LU%H:7]I?:6=TNO=JLSYB:HU$G-AD?D=D<@S0#<>UG(UA*R0V!#^B,?TTX.5O\.@U&PIF)_#=,X6'41U/JPQSO_<%^-V2/"X4;WY/<- M(/2W#"4PIB$AJ'H*JJXJCM<\)RBJ\9G0(YP(UTVB8K,\ISD-L^?RL&:1C69A MN-RGIK(/DCQ;?U(:S^C@L#JS^9?JX]]7=O.UP'0%L!X@"9]!4@[[>]6NT6S? M'X&JM])#Y<@I*CRYO%/^/0;+$,87KTOJFY2S7]!<#XYCIW!( M)?4.EVI3*'L`$2`3FI:'9;-#T%P/EQ.GN$@E]0^7VDDF47CT)6R(5,Z%Q3=5 MWV-$4M3\C6X6EDDB"6U+FDQ)9X*U=$DC:NT[;U6I7".#IY&`.V[!G<.A.KW*6Z-#JX?;1_7315X1W M&-+]^<=J>UZ=&?`:ZZ'TDWN4)*)Z!PM[&HKQ!53&),PR.(4@5L)EU(D>C#^[ MA[&#:KR#5W!,1.TU%71Z('YR#Z*>`NQG&=6`U8DE>I!<\%AG(]O0H-/#XK/C MK$-;`=[-(=:=ZX4L3SVZ3I%'C]KY&IT#B;;W?@W1@.,NCP8$/]1Z_M'FXPV=+]NMB7FB)^9VL`!-@^UP MY6,=M0&#U8C!#W3,'X,?GM*PB(G=Q3\Z?&YB$B8@>R`+Y;0`OR(49]+CB?S6 M+A8D5MD2KNYQV@J2Q]KC5S/$@['JLGA\^'CKR@C"X^2S0G)$F3+Z49# MUU-"#81`-O]F016QTUGU:(W$.W&:.F3\)L3?`.6&N)NSN-QDR+:\B:50T;F> MY$)`&A:F)[]WDW[U6IND9'H!4YCEJP?VE;@I"5T[!5W@-#7@'7(;^=HK!XFO M8!M[,[4X:Q^D=/!>+LWU11*;IW\QB18K;U&*ZL(I782*SJ7;"V%*P;E+:8IV M-ZT]+;9Y5$SB_33IG4\Q+>B:L\U(.=XYQJLT!_02#Z5]MAHZ]QY=T!*(^V[< MB+'_<+_CTPDGA?@>3J-U!+LD\J]N2BL(V]N:XCF8(@R8UT%M>&;?!'Q#>I7'Y5P5`_+]%EE=7A2A` MMC6>ZVEL;A]V->_5"07YFVAKN_8?V[OVHKUZVE-0=N7)7CS!@/)$5O_?(='. M^=M3!N*K=)-3GA$$ORO.AIOT\?_9E'FL-03H7?KT,2`^)8)AY2_.%@CG\/]" M]F93[KU(8B+7WG5GX#14XAV,I;09X9!$@S$JGO-ID:SO@Q'C**=R70C:&4@= MI7B'9*/BJ+B>A5^F].N.EIUQU%")=S`VR_QE!J>ZDE%*Y/K*EIUAU%")?ZM3 M$L(Q?21W#%8_K]+V+:#22H(&M>MK7GJ8H/I*>@\0,Z_,,\&V1N;ZTA<+H'+4 M\A[0K%^G;`)HD]+U'3`6,.4KYSW`6MURJA58]:A=7RMC`5ZQDMX#Q(T;+;O$ M6<,[@PX/WA.Z`OUXEPQS.6_<@FD(;HM:$U^/"T8F6O(.8H'T-&7(=JQG M)NHFG7A:1S6`W5QE[\6M7<(T3*/=W!JW#T\L_($L"MZJ3;AK]M)W/=N6D'OJ MS"2`2JQ:J2;O[)GEGKTO4`_7.H6G#JH;E#QE>(=>S=ZT[N@44WBZNZ./GDH9 M_N40/(X%USZ:(2KLQ-.MG]U`5JC,/]SY+SV\!QBBN+GHDQQY,^K%=9SM(G/[ M`(7I@MK+8]?V5"'+Q7=0A3VG;T\5,I?B6QB_F$Y!E-]-+UZC>9C.P$.8@[N4 MKQNQ/S#KQ74DZ`'Y+FKSZFCC&&01ADO:5^.RH@E5(J97Q,-9"JRW.B0201)$UR1CUOI0W^Q MI&(@V'#@M;I&DV@.XH*>53D/,Q@1PC%,"LHW`9X^O'(/\&0>8E#)Q=>GO;R% MS*.*0]JZY+'L8LUE:9^4SX`P&I2<;C"P&V[$!3T]&VSE,_("W]"6Q20>C)$P MGTH-0IK'U#&M93@;Y%R>W5WQ\R:]++[>RNE1XXJ1A_#EAH1+#,-$LHDB:.YZ M]Y2G]-9I88F@WFUY;;C])\+?Z%,G*`*RRP!$[5WOY9H`PQ757V0NZ?6\Q`^5 M]WAK(--H[WIKV009KJC>(5,^M+/A>3/')\5RF:S>3G,#,-T*C6$&GD@PP_0" M%))`R`\A[]BMZXUD#9Q[49Q7.\>\G3V]M$I8D;BN[_0-G4^)]\KTY&H5*N2[ M@4.+9[Q#J"=UJZZAN6/H7!WM,MIHLR*K5:JD:72K),(OKXW8%56C@#7(8LA8 M7/6;N(XY!97.L@_Y@BYQ'5+/Y%OE&%5%E.+'7-BZ!Y*N%+@\O]AP%9<(3XJ(/K``T]F_0(BE M)8>3=CU%J;&MX]@RP7$C4X2#+2=!R[?HDS%!3_@S7;FNC0UA`2W-O5<;N$0%[L<$F)Y<5\T&L("6WMZM M`9`U8T\&L.W)]>V-0QA`4V_OTP`>YP"#<$J673OBSW;D^HI'Z_"WM?8.T;_' M(",_?PN3@JPE;T'>^'X7@U#W[?\205<_70SH'9O-^G[BJS1*BI@^C=J'P<^PS"$W-R' M&/0L7/]QAF'-FRO2B/B2F%Y$'I^'"?6:DSD`].ZGIVQ[9EZ&ZL?6[KE(W/)U M8:NQ@FJP8#4:1?IIPA[2WVU7C@C_7"8*!S\='Y1IPLW%[?GOCXA$Q"H""N\O MIRUY#1W?9B7+8.BWSE)2D;X$6K*_NJ2M;9=`H32#+J;%(\9S"&(9V61`(4E9^2!=O? M$4SSWTASDLTHGLK8H5OW@4$Z37I1VA`A(P>8)+C+,'V3OAULY8?YC=V'$%GL MD`GHW5QCO*M.J570W'TDT0TAG#*<=9M?7^FO>`$";9<(-%*"K MJ"9_44XS!DI?C#/@!&2OY2[OZ.Q6%3?LQGVF(@:M,7D[*<@[/WL-4Z!^042] ME?N,0Q\DCGCV9W_CW5ZB:=]NYCZ!4&N6S[FGYMU^"]=ZJ9'&.GF%+KW[1$-[ M2IBIQ/YD89^T8QZKV?(EF#T:=.[S$[WII*T"^VC('G[EWXO;@,6D`VU6F M2>L^9U-Y+Q,=N(TPXC>:J=RPX9O-;&9B.P03>R\QDT6128ZB;W.4$,UDM%:2 MO[$;[^IM!CWZ?BM78`J("@%I2PR9.U33NO<^NO*U\O+.*ZR$7G?-YFT,;EN9*#>NY.+C(:H@?,+A/T8J*@UKTMQ@JBHP;EL$H%5;9% M_WLFRRORR;\!4$L#!!0````(`)6$#D=MPV)X,!X``,O^`0`5`!P`;65N8BTR M,#$U,#8S,%]D968N>&UL550)``-:4CDXF+'"D+D.\@C/OZZXY.=?_S/?_Z'Q?[\\E^#@77N8L_Y M8IT2>W#AC\G?K6LTPU^L7[&/*0H)_;OU!_(B_@TY=SU,K1,RFWLXQ.R'1<-? MK,-W'Y$U&$A4^P?V'4(?[BZ6U4[#6=3Y[1"Z'?@GG[][G7,.#E%(2O%?V:E]CZQ MO_8/[_<_?3DZ^'+T7K+%$(51L&QQ[_73WM[^'ONS(/_%<_UO7_A?3RC`%E./ M'WQY#=RO.QD^7]Z_(W2R>\`H=__OZG)D3_$,#5R?J\G&.RD5KZ6,;O_SY\^[ M\:]IT4+)UR?JI6V\WTWA+&MFOSKADB!;^&AW\6.VJ"NH.@,Z<+\$,2>7Q$9A MW"$K$5E@"?Z_05ILP+\:[!\,WN^_>PV,@KFY*\?CK#BOU-$C[$6_S M;S*TX=N5RFHRG&85"%J[1P&T!N$67L3W'HVLBKA:J4 M4A%$/AXQUTMP,[Z9\RF+Z2-@2N+3%,53[`?N,[Y@D^(,7Y*@4IQ-ZVN!G1,4 M3,\]\E(+W MQ'-M%U?RH*I^1>Q>NG]&KL-&.0-PA7PTB>5[RSIU)2<2I(I`7OC/K&9")<1; M4E15C\5V1+%SZ?J8=S_VT0TK.ZR`1A&L:Q)B-O&\H2/'>RF/NJ\%60*5,JZT=\+9?6:'EY5;(B MLYD;QHM=O"C'BP#S>23F0`E212"3OC*8\\YRSZ01(%M*I96$RI0ZX7*H8?[" M%(H@/?@4!R%U;<;_-0Z'02!A_`J)E*VRW-:[1Z\RJVRAJ";F5U=F6$OFV*:P M[OE,U#KS^5;4&WER7(`$[:WR5PRM*WN_K+894B;GM5DX,J2=[: M"B?;2<5T;:YV<@@E2#69=4]QB%PON$:44SY7FHYMM:>).`8\T.M$'KX9'Z/` MM1GAJ>M%'"G3(P\FW6(ZFB**$T;:EE=C0.T'6>IVG095J5^?,_+,?"NIS+KU MM!B^J2O\.G6T'MZI"[Y^37V%?VJK154#[1F.@^5$E3.Z)(=,XPK[8JC6%HJ: MVENWJ6O/U+5K:IV%S'R;QR/=$U74K0&;M?JG\H8Z$$`Z?*Y0&%$W=/EZE2M_ M3N@HLFV,>0K%OS&BLLMWNZVVZVIF]'4>,8CXRO7=632+R[&I)PZ9,HQ9\O1K M2?&TWW)+X>[ZMI`),"&)KS%N#-EJ+L62P M%'^4MNHVJ;7-^$S=[EBKDC:!#]AH=K`?8">7EW,S?@A680-)]2AKH!N&E[DQ MV0A)&XS7;ZAS`2QS@UKF7ZX=$?N(VJD$R@IG@0(9A&DB(T\=/(KQ3UD5U(Z> M\,!Q9SR-BV]A)@UE1;RLQ?7#759T-RFS6UI!^[B7C0T<,D-N3=!%Z@X0QRT- M9GCVA&E-N'G2]K$BSZN',"9H'Y=/PF%=:"E-IWT2CU'DA8T[94J>Q\R^9HX` MGS4NV7]SN/%KR.9`[*3(>86;YORRKWDE>XL_^];`2JFR'Y'O6(LJK%P=K4$O M3^W-83U@`)?P_^^"7[KIUS-/[?( M3^-TX!R7AW)YL_63P\^BAR7U=&5+(IIQCF& MCXH,0VSRFJRXJH[84)9IG./X`Y\IW,#V2!!1S/^S:J9$FTE3_)=,8]:J-6O5 M7&N2D,E4SC'Y<9W)90TQ4ZLZK*22UJ"7Y3/GH'Y:AYJC:&^,B#*; M*U/Q&J?W'7(J2)#.\7(`]:<<]#9GD^ITZ1S@]X7)A%=PSRJP>`WLBZYD7)5( MG8-]N`X[H;9BN@.\AD6^?0%E;03`V)!92KHS7D MU4G8.=R%13&EC[NME:^@Q1X!YF?GT!;6Q82P(Y=&G+"=0UI8(+.T%B.V4NH6 MK8QB/G<6XT%A14SL\H1$6QM6:,L>%)9%5;8L<]R23SH;^&NYE#G1%%99=:)9 M--NF8.#,\!R/A84Y0]<%S.H\\1S@Y\#+K>A>H9;+3<\!EE_DNP+>6@)[E M^'W!:%"WAB0`K"6"G].[,E)I><3.B)MPL+>?W,[QM^3KQV6_#>O.9%[?V=2=8C.X4V9B2 M6:4\$]D1(0=9`3,@.Q:A#J9?=_;W5EA8Q\7.UYV01B4L]Z&E7S&94#2?\MV` MX:LKT\^*)$IU5[I77*6KO`H`/4&\EJBL7^4L>F@6[FFR`PTJ!R91JISBGGB5 M9D"A$UD&("4=['TW6GK<+^%%E:+2?>)-Y\---1DS"2GS?5-E%K-M^%5FCP\^ MWPS[C:WQK*->)3D1!;WPHB4E'\O0;*:.?'(&).K*04"J<8,2[GE22[O1R,8^ MHBZ17&WRQ;=DI2GCL60"ZU94H$36?"ZKC`* M-;05*\PF6FQG=5&CR%,\QI1BY]SU^1;2"0G"@+GGL!H!@L>//:U+LBZ1"+>> MMO9P1FCH_H46@8L%;K:DQLAA_8BHM%=2)7C5ZQ5@HO'TI5,\)X%;*FI>)EM$ M7[F6(@6GHEZ[^QVVL?L<1P//&:,G41"2&::"K@Y1Z*L.&>"0=@Y[U0Z/W]ID MXKM_8><>O1YCG\E3-`\!!-KK1H0;4LU1)GJ]N\81:^^;KI'MYE>%Y$+?[>TL M#ZP4(2\=8XRK2%'&.PD3Y$16V'$6YUR:/0"S!_`C M[0%PWM)$VW-DNQX?:L*@#$RA=URFBE/=G)(RO)=\[J15_G\U93^!FDH-5"NL M3`#:A6S:TYS.`1S%VM4YE'.'GXGWS-WE''QPAV'IC`C('LLZ;0?FNO0H6W>L MJG@!!V?3:16((%PA>\IXH-Q"/&.FW3Q>"#"=71+D"S=])"C[V@2JJY4Z["C? M&P(41=Q;PI5E*&U#QQ\/M48&0!S#;@V>N?4CS`\8;^K4![Y`_P6)S/%-$;_N[P(MN>Z$QP,HU/%NH'S.Z*,@20>?Y MT,Y$KBMKG0W?&OKH-/ME.`XQ'?*8&HYU$1?UG^)#%;0C]_O M>6+)GF3(9,$?OV5_J9CF:]2A^3I06QKZ[9]E+N6L\.C+RO:T;-27.ZPXS2,P MFVE(Z\5&O19[2,D\IO@%\_-P_R0>O[/UTIWQKR52-(64C_L]N>N"H5%(UI3@ M`%S(5+OH)RA$,\2ZT0C39]?F%_%4^(=`^^17-QX12\L(#J&C.?EG=\B&G M2:B6[52IF!O5X0)@,JP#K#36"DR:&]>KL4X5\J?:UE>@Y54X5X%J5Y5]1_I< M9PJ,GQ$SP5X$6,[5]1VHL<`7&PWM.H7\*+_P@I/&%HK?,BB:.:R&P69MHTG\XI9-^945`G5P&A&)QBJ0@PZ) M_:/BG6_BAU/O+;U>YNU?A'Z[\&\IF3`HP0HFM/TM2:ZY.NJQ`:GFD^J];V;< MQ&=@7K%S,D5T@D\(OSQN@N^XZP+N@8O)-%>%''Q(!9]5QS8\.XJ#`QDX@8P6 M)"@U5X0T!Z#;K#CL=X_\27S#*`[9^`RG:4\!-``5UUSL8MCP]I3B?3\[C)"W MC@7:^2LMK+F<1:!!*:L^N)8SK.^P$]G8&<[XP0IH6H$I-)=W)7(X8-VKO\#/ MX_'+4]D_/-CPC+SX.M7P!%'ZQMR?/Y`7"4XF2)%KK+KZ;,"!\)ZW\T(F$.R< M(>HSP,'0MJ/98GT[98*V78'35TVKOP9E>0#5U]1M!^8^;F(OH@<\NPY6`2]< M6E9CD5=@!D7_A!F?=^5.4;"X`AH>(=6T&JNK)@^@^IJZ MYHK4E\45NT?#,>V23T M4/R\XHQ-]@Q1DO$8R*38UJ]HF\['-N0.'#']+F8G$:78MRM,BWPIOE[2+G?BH,4DWG0H*]G/LE\J*5(!5?G2WH9$=5Z.&TB]TR4WFY>2G1]/ M*7KQ;_PSSXVWRS)7XDGDYLA5I.]=F^&5I]%6;''1(1_UN,):9DVE*WQV#?LJ8\">+5,MZ MOB94B_9ZK,T,I-E^4X:S;,AI;JLT(Y1\OUN2R2VCP6I9O<;APD`2:$)$I;UF M*L%#FNIW]W&YB@JOH\^6TEX3!;"0Y!7G_9;-FND:""X?\&F-+*&^,J^!'U*# MXMS?K/EX2_%\D1UP,QY.&,-!^'N$O/C5B.*`E;"NZU6HM]HVY$NT+]>6/I-( MW2*GF6]`YI8I([PB^5>E!X M\C?_5'%(UI_\-1D()@/AQ\E`,/=-->5$]8:=#K<9F?NF=->0SIL>VW[?U/K- M/T'=*XY6!#UE)#2[X2@/6\]Y[33*6W\N#I)@R=!WKHEO5P6+)"OH[257Z9AY M#3[T5&4:&4Y,\,HP7WEY[14E@*UZMU#]P8*LUP5K!J+07C="X!);@YUZP*/H MB2%P?3[B3XC_C-F@Y^'B#1WC#X6<_$P[5J8AXS$;C]EXS,`>O=@S+BNKMP<, M;&9%'>HUFN,J;@BGZ\7H%LA8II_U7'E>]:4>!DJ*ZOW,@1SIYO7E$=ZPGB;$)H\EE[U:(D, M;3]+DT#^(D6)V-=ND6I7\K?%%C+)&&7(&:4GS,['[JTA!COP)9(-17O4KZ>ONOF=8:\`;IKN>'!_)V M5S;M-U[IG54*"O]N\6`3T\DLFLEZ`W7J?/R@>>AQ0];T-(*:,+6X7EIM'UC4 M^5WV@0QK$@'J/@Z9EOM1L((!`NVU)\(-SM$:#<\,_L5';E/>LD5']$*,=!7: MJZ\>)Y!"=;K^$6KSYSZYL&NY8%=9L-5[/A:C9 MK@W7M:N^XE7]7VXX/2<1S9^E8P*Z]:(@&PBHJ)U-(V\?E M:.\9%;XE3%SG[C/>4.\JVVAAH*OO`LH9!GN#3FMK^MH"^$1(>2@C1Z7ON519 M\'J&NKD'=I^X=Y6IZR6%M=<+A%G/J/--.,4T"UDF>"(@TEX]5=@E(M!Z!TMN M$>=EBD/71EYYY.23PLB)]5.N01-),9$4$TDQD90M\=9-)$5?W9A(BHFD:.)& MFTA*JY&4LBE+MRZ@G&%P_M9I;5U[\9[QQ$0P7_D55;,Y1/^H^ZMI-=C0-,[2 M_36[NNNT-C.J0S;`A)WO:\?,#2/$3[H:,/^*2/35@Q1RB0!,[]/BQC>+:ZLB M.>B0CHYZ"I+EXF"#^G3TG/-L_SF>?YOI/G M^7X]OA5.R\O?NYZ(J[HD`3#J&6-,TD:XBRQPW5:%M+_7LY1BZ[C\/KKLK:S$C$X34)-PY&]A0[D#H:)"8?3Z=(HLG'TR\?[Y(@GU^=7XBTQ4EE:WE$ M6_]CD%9=Z]6CO231@1T\O4<"(AX(@?A>T M\K1(?[K7G\YD2>B0"8 M"(")`&RGEVDB`/KJQD0`3`3`1`!T&,6MG>KPT^\&M[0?K=(G_ MQD>$=-=:!?1MVK-/K]-)F(C?$/,3,Y90K M8_`.SQ=.;A"SLO!S+_QK-G+N7[#WC*_8,)H*%L6-JNWKBIY&MZXVX^X[Z`S< M';A_(8KZ0%+;]Z7Z+%,2881.7=03-'=#Y%UB%.";)\^=Q&]@!IGMYO.(L9>^ M9QB72R)?`?-0L^3IUT(W]?VZFYK48,556!D(:[O/"QA6@B,IGC89^ZCYFI8_ MK3S5E8152W&$GS%%OHV3I`.I&T`.#XM7XB;5+*_#-9=^&(?;.-S&X=Y:I\XX MW/KJQCC>I'@`)S?%%]`>QWQ)F_&]ZP'!C?^D`.; M+%PM[^V8&80CY"'Z!JA"DEK?_;&Z3$!J:7%NE\.,7MA7CY=X@KPS-H[!BS%9J4(A39WF,JAM M>LNR0E[@`7TN5B1?HF/_5R`V`B!LU=%M1ZQ:NJZU1=^IC_K@\SW+8[;P8AIG MFPUG[(.-A#ZJF*CKS5NHYY(Z@/6,N)W]&3&^KG`X)?$Q#:;N M?+7%#*^TTE5HO[M6CQ,)A79JJX/6;/$,)VCQEANZ'VL8NJ5G-T46L;&#C1VL MN1UL;I,WM\D7]6ENDV_/>C>WR9O;Y,UM\@VM+B=H,6QP9E(L[!,4HAEB(U$HXK52CX/^@LZ$KDD-0_Z&,`91:AVXC:4Q3@@+.3+5/;K`5K>F3]1>_P03.. M.EH9`'!GKW-FGN`[[,Z>(AHL3'A2H4%>8>/Z--:C`KXD-G!5:#,][I'`BI_G ME5!:%9GFNI&##]JSO4Z<:]B7\[_`\0=)-%:3''30I%#\)HUMD\@/TROYAK[# MOJ$1=M(.E!O!+H82@6K7H[&"-N`'TMI1KP,+9.;214_\?HW5#:GP4*M1B<:Z M;BV29%`+`%?%1"O MINQG`Z.N0M9?.I.3AW9[&>TI4N=]CG:5W>F6QS6AX33)!/+O,:4NHWP3AC1% M)#UM?DB/'R+/1D=1KW-"L3N1%'UYX;X.1#61NH`#4.`]KU7(X_<7/&,_PM=8 M]+1FON#C1\V=L#*\'04'EUWFPF>4VR[201@[N%8@+XSG+&EQ_TK_AZ>3F2H M]55672;TC-RE5Z7,>#[N/&LK%O4H7X?VVJS) MBFY!NP>?!_R9O1=BARUXB_E#[B#=Y_487;8NBU5F+6HSI^A,/&[[XG'F%)TY M16=.T9E3=)LE=AY?//PF3N574?AGZ%M1[,HWLD^9?S;;CB*G@+7 M<>$K640D^AY@DT*NYV[%'3?I?.R<(>KS#)'A?,[L7NIR/F##1$2EKYIDP4L$ MBOJW[0E#D(1H*LX5'NW)VOW\VI"D+2MIS%JT MQO?K'T;6JD&S4V\\`^,9&,_`>`;&,_@A/(/%`\A#WUE9>S=T.!Z['K-&C3T+&JBU],(/D'!%%YK^:_ZWFNW#A*2<+^Y-&E2[!VVL?O,%R9F M7TKG!9=1::^12O`=>>'\*A6?%79Q4+[%OSC;D2VDKVP!K!(>6P^=_B:<8KKP MH2J[>K&LODH00P977K7=^IZ$R$O:%:8!%`OJ*UD!7DBL_:8!K.YI"B[\Y;(? M+(T!-D89#\2.OV56PO\2)KH_6/&(EB;%+`\P;5"MONI5QAW4&3XH-FZ3+?"* M9(#8#BPIJJ\BA(@AX7YLX1"IO3"05S8"N#Z7%=9;P`+,D(@_Z;)>"^_`+JY_ MVW`!=B5J2"F?6UBXJU?LK5FJ)=;HLK!*A_WZ,O/J.=R=LZ7T%3L$%A2]XNS> MM=.=DF>6->_'I6A!B?9[DA\\3,O6<9E96XY>7WW59P-4I.+S_O%%4$D7RA]@ MA[W?Q6&5"CI]E2$/'U1"TR1@0`G,B6`UNSZ'L7Y)E]3-,O(5Z*V6FGR`^FGJ M4JE_E)4_`5+^;F=E=*E6-?KJM3$WH'85^W39V$UF:I:(3&5*ZRO_*M"@F/OU MZ^3ZRZ:C1U^UU6<#C*>K?BE,,$DG2VJ#92JAU%R*1H M-5>'-`N@0A1[FO%$*[F(;(V82]&"$E6\9<0?/R/^*"3VM^&,.[R`2`OE])9I M.5Q0J(H=CEOV(V8#Q:F6:UE1O44+(@:EJW@'IIA5#@>QZ_--%WKA#]AOEU<@L:1`P)M]_3"G'NZP(SO%YF"NDK?``K)';%,?_UEX#` M_IPOIJ\X0;200-4?M'AVN:]Q3N@]>@4E6BBGMTC+X4(R57Z^(KV?5G3L,5-& M;UD6H4)R_*1]\)%OA-QY/#+%`EM M):F^2JO%04=1-M:VC;&S>.-[GB"[&7,>`L'1U\1)K2355QFU.-`S*I?`C\?_ M:$IHF!Y2$(P>B$1?14DA[RA^M^PE-W[V4`@P0(#2^HJZ"G170;T4P.ITS8// M&LH>O`&-JVI2O>4OS4%'T4!^]]H4^1-\X28NL2Y\&W*^\DI7OP+KP_[7$],_^^;_`5!+`P04````"`"5A`Y' M%E/XA.Q<``!;&`4`%0`<`&UE;F(M,C`Q-3`V,S!?;&%B+GAM;%54"0`#6E'. M55I1SE5U>`L``00E#@``!#D!``#EO>MR)#>2)OK_F)UWP&K/[G2;L:0JJ;MG M6C.S:\E;B5TDDTUF23LF6Y,%(Y!,;$5&I!"1++*??@'$/7"-O`#..?VC557A MCOP`_P`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`^#&Z!QDRL^!S>Z'M/8[$(*56+H5RYX4-,OH^)1X-T6[YZB:,/M M_^?O<%H6S;^(/M\C0OW/OSUL'PN2D(@27"B[OTG0!RWL0#D[]%+!26*%-N;* MS>G9P<8'_7`O/"[F:KT:!WU)RN?0KX'8GP!&(L&-;<:EF`RX(!*21YD3=A\8 M9LLE20F'5XU:QL%!)^QS@#`#[@\2:DFOW'G&]#%OW=@);?H&F=0.?*_SY5F^ M7N<90XFSTFVZT2@%F7J,%5!.0TJ-X*/4))ACJGTZO;@&QK![_)RGSR1[.J,X M(>5E%+.>8QFR+#H^^>4$OT\OHP(8=KF@E,>Q6@=52JC1`L8XMHC'K,\,*J98 M3-G%??+,!KI/,9TL&'99`,H+L"S!5.SO@UI_.5,H-'G<:!.8,`YN54#&:!9C M-U&\8F2FK[,LN?A]2S9,KEQ@NK[.HTR_.G-2\[97_,.(LVI&0P7S9LH"/EEN+^E*IGB9N>-\9,J4;+'A-='YEBU12JI]+PNS?*J&"UU.A_A$$!!2*-KW+L$8/!7$2O:6XPJ2SC M;R30P.MZ_4@`AGDUJ*3>S,10)7=TGR%_C=+3*/LR7S[$>Q\T`F%P&#;SOCEKR6TX=C,[':CF2NMZX]K4ZK1$-N#BY6 MA)889SL/2A,+\#8R[52Q=GB:I!V<8CM#'E.O*:,=K8ICSX5[U'= MT7R#:?DZ*S]_(=%*3SH7+6],,<$TE(H%H=B?W'1AW8!'B. M'\NKK"CIEH^XA@E0)>AS`M0#[4^`LE1P)EFAC=P)L*7X+$UG18%+ M-F)62P&VJ&!K`X=!R*+I?R!RJHH\&!G5@M-H.M8QKYKAJ%+DV]3UFH^?G7FX M%7N;TW)5S\;9`E-*F*9A>\$L[XU6+K!;,IF$85#(`>&8.$(%-3JH50(VE?&P M4LQ'S/F&A]V2[&D6E^29E,P-?,!/EOG-6=OKU7'S>$FR*.-'C_Q(4FQI_4+* MU25KA#O,VB$KHR<\7]Y1LL9WZ;:XRDK,VJB\CTR;G@WH=0@.*8%DP+W^4D*R_),]ZG M:QSV!_QUDF,T3-==#EDZD(YSA"JY=Z$?OOUSN$[4JYB`=!>]1H^IH5-8%/SY MH2[`.W?4)`V#A"X0QZ1BQ*F(5`L#V\6I`B4?RCS^8@PP5,AYC=?1P1R$ZXR% M@K/&ADSV6;D<>EA%]("'H0?>[^-Q'^4KO^R49^ROA";YR1T^E M`(99+BC'+*M$42<+*H;P05PDF-VQ(MEZ'B?VL$X=,K=8@ MEXBK,AA^3D4\9FM/O]XC&I2`JB*`4?<>EQ')<'(1T8QD3^945SIAOSDA3("' MR2!4DF#H9H1GXM8Y7I+X^#%J?]MF>/$U7ZSR;1%ER46*G[$A1M8H[FV=Z`"Z M724:9(.3Q!'@F"9<@V=X_@!LE#FC6!RM\134YE0.(S'/B1R4($=I'`8RP8EB M`28'5&]R6HI4X*`\]=,M27G>=N/T,Q;R20XUP#XUAA)@B*&$-:9%(P1LV&AN MWMXQL&4_Q<3IJR7HPTG3)W\F5*5/*@1"]DO5T;!ZN1C$^N*>'U6340`,,?%2HY;8R0`39.W3.(IM&H]]WK4FD, M:[`Z:CZ"L?\8D>2[\._`Q@%%^B/+J�\#M&6*$/1PRM.!C^V#&Z)J&"-;K< MD,P^VPQEO#))!6_`G;X`'+8H4$G\J&2`\:&*`OD)I\EGGMRFSF9TC:/"DJG> M1='K_K)S108;RU8M,!QSAJHZ5JN&(J&(FHQ50A48'06F59XF5^L-S9_%":*9 MAT8-KWE?[=`'J5_UXF`H9\6\6TLY)-*:H!]]@PE MP!!&"6O,D48(&"LNMS03Z?N8^W9)7OB?S`PQ*?ADBQUXGSEZ:3`LLD*4`BT: M!>%Z-RK'#V0M<;'(;R+Z^Q:7IMO`.DF/<5PFJ+VX+958<%[8LOJH5\"1 M+E[K8ET(,RM_[_43?KJ)LNA)^.2S)XJQ=H=QBJ*_V)0I%>EB3ERT8/!M"E1Y M=ZG6!>95]U]I6[!AMXAB$1;-DREU7TS''1,*\'MU;&K%AM?)7+6#4W-GR);7 MTP`=O=2!VF?Y-BLU$?1F4:_+/0/8P4)/(0>&3`9P4A*U3\"&M.KJ[2)ZF6W+ M54[-#PKIA/TF#34!'B8.54F"88T1GIQ`5-R09M*H%0Q^]&5$"U)JP_0+#@&,X4F<\O0,VJ(NL(7'U2$BS,-M2BK/X]31BV&-\^GJ. MBYB2#9^3C*N='4KRNQ3:N:K#==+D8H*3?CZ>F02O`F*4=L@*,6(9G>U6@CK@/H['>+$VK#2$>V2\/,AH9;];4P6NM M.A8(WN5-J*2@X#1%K=QQ>^EL0TFZ^,K\U]=;,HA*;5[>T/=B=UU_O)A8G8XO MCHI`>#0-K<0OKHXJ?<0+8'_.45,$:M]<.?(84[T+\XED3TFNO@6O%_.W8-&# M[!8NL@RHV42/#_P&?^/"F(++!R)>`\L5X`9!Y;WOP0<.`R@IQ5CC-QYW?\+\ MHE*8IY-,;R2!>PS)]=6CHR>??,')V2JB3[@XR]E@%#WA>_S[EE"<+&A$6`E/ M;+))G_%-GI4KT[;XCB5Y3%>Y3U5[>2QW*08&Z?;"+FVW\\)071IJBD-->:@I M$'WX'E7%`9N?VNW?AQAG$26YRP;\4#;(YKL*KG+CO2\8G(`NZ*2;?[7(<24V2OWE!!W_7*MI'/ULA02GWK[('4>^JK1CCGM3)G%^[CEQMNZK MA)V69?#F^;>3ATLV&:3KC,H572ATS.72;@F:OX>REK9#U.5JYJ)'[\`X8::V M7UZR"?OKM#;`77?520+IJ!9XBHM)M8J?';;VY>6?F'KY)6D(?KF@8O#]X?:3L!^P'$+<-:GX"??[4 M]HW>NRT!7VV1*J_O#UI1;^2V@&V9JILSN#&'?CK^.?O#"F]6F":W.%KC MZ]+``)VDOUA3(]0NL%0I!L/\1FS2QE$MC(0T8N*>W;7YLG[-U-E3DS1".6D: MZ#K_;"0.@RQ.&*U>6;YLWJ0]^HNC41FM(QIE#Y@^DQ@75YDA\8%)VM^KHU;( MW;NC6E$8;+'BD_8&&@74:)SPER2^A7;`L7TL\.];_GK0LRT)ID;6ZP&'">[@ M@$,E&)Q*+N@4J0UJ622$81/(DM];*QV01*8\WAI1J$2RY.N6J'3`#-V.L]:D M20O"G.4^9869L6R7PVPHO<];-J(XT",<*6Q4`#+/&$#I[5UMFAS]')(6Y0-Y M*5^;^ZBG_(&XU'0,:=;P>`KI`KUW"&D2AT$1)XSR$2130G]Y?_+^_7MT&G'Y MH]/FXH4-1&R--HDY#DK>R.-<@98_5@T8%'*%*:5*%GIHOO3,I)O'P0O?>O9H M!/WEX#(![7)NJ:1@,,,$37YW';7"B$L?FP9WE.1TD<_8Y\2K%[8WW:L#7"W$ZN3A$$,&SPY M('^F2.]X9'HT`5.Z'6.V/+)P9FH)WHBT6]5:=DU3AT&YG3"/>?CA!\2IZ(5^ M#YA?\F-VK+.87N?9TP)30TB=3BF3(67*1E:1\ MO5;>1FL\JK5>S`>E M;"`Y@W0RP0EC`2;MS%64Z&01%PY'BS/&51JE5UF"7S[A5VWE)#F_Q-#`'#)C M)`2(&FID&F[4PDA((R8>@AW-.,8/L175&G[VQ045J(8"_6\@+*\`I)TLN$Q( M*]^QQ7G.YKKD/"I-YA[)^;:[$N:8``,A4$Q0(=-2HA)F+D2"N'@(=K3+J,LT M>E+4:_3=%QN4L!H6##Z"L+X*D;1L;1>L7"B$K:NT->4E*>(H_0\<4?U@H!?U MQ0`;V(8,.CD0O+"`4^<58@01\H@K!!T<*F?EDJ3\"=\2/^54[SR.I/RZCDJ( M0\=Q(`*"''I<&J=1B*)&-N!ZHHOO?EA%K$GFV[(HHXQ'5^K=8Z.2YY6&0P5& MRPZ#!B`R.<#4+4AZD?@GJ%)&/>T0;%O0B/_TP^OZ,5?5>?3=%X>4L!JZ##Z" M8(8*T9@$M0RJA$*N4JJIKW*,+]F_C>_!6V1]KU:T<,S(!$A7JK0$G1DBR_HFA@2OS8R0(C"9J M=+IMFTH'!FO.HF(URQ+^GXO?M^0Y2AG"8E:>192^,E?_YRC=CC?^)NIZS20^ MI3J#='DNBF!8-P6M'(=6K&!P;Q;'_'&.XA['F-6!WTO&VA%++>MUQ#+!'8Q8 M*D$PW#&AD^:W6A;15O@$9;B$P9^KC,=6Y_153YNAB-]7N61PP^>VNN]@N*$` M)3^058D0#&0&NZ-X$Y'DXF6#LP+7E'D9I=>N3K%N*YD7@B"ZQ'X6GE`SLLYWO!-I:)B M_BVSK'$DTHO[9)<-=)]9.EDPK+(`E/:I:W'!J+Q<88HB0*-650OC@!QB`M// M7!"G+.-S#@^W+/\UPB%VG=6`5=O.0TDP##+" MTVX\;RII,.2A6YS(XZB^RCIYSQ0RPQZQ2"T,B4A&A`HN<7DV'AUL%M-$=/,L M)36]%_D]3J,2)W<1+<>WX6W"WF*WK8#;@&VM9'!:.,$;-GEX[$142GKUO/50!XZW+`:&6WILNL7:.BJW5,QRW/\ M8A0H;TKD]*H'[=Z0S>?S-"H*LB0X,1-L4@D^B;=#U?J$G*`.AJC3,5L(_,KI MFS+ZORMY]JZ$=0"@(^)9M"%\>QE'!9X_IN1)I'>QK`UL2GYOS;E48'A=SJ0! MAI1.,%UXF'?*:)LEF**X*AJEO.QCI>JOD-S40.;+<4X\E2OLH.0OG;]K!;H$ M_S:-X-R:!-.%6T6;LQ#4].R\RQ%Z>\-M7R/PAH;U`-)Y.V-X<0;@UGP+J#M2 M=S_Q4>D$(I,>OH97LD+PP6H*2OGE5^9[BJB!V:XG`!6-6HB_8KUA"T8B@+%(S\0 M!E$URR7[D&K7`["F6+,>B8F.N?6UG+)*!\NIK^:/130X M:]SPZ?/HUVM2T.-6?Y/<81\]W"&$[?0!V))41J9>C`)>*?0`V9=&P9::EH4E M,%I(P#2L@,8%GKN,E&L1*ITE;!E2DNP)9[&>&T8-ORM$*_3ANE`K'GQ"3[MM_P;NUT^^4=]7^"=4J<`@U1TKB[_S644) MF#)R*"4]1S?KH(YBF\=B8(BCQZ:(:ZXD45&GPQ0/G*'9",]J6JYR2 M?^#D!'W__3^?_*7[1(J"7VT4(6G'2<*YWW1;)QDU9I&1Q'Q/K"J0X]FT+P.& MJAI@JGF3D:XF:9^:Z`5\N8A>-&TZN13/-[EWJ>+H?O>4(L!P?3?R5@(@H`@:3[W$9D0PG%Q'-6/JC/\9+$1.=-NBCZY*M[1?H4M6N! M8:4S5!,1DTH2!O=DO]G9P0Z]8G%;J<#:3-'B4^^IP%VDV.*9[9M)&C5($>B6 M?3JE#BR^.:*U[N@)%Q`N&X>+N.MNZ777KKR=K)`R23K=H"A$LT_2-CSEJA*:=Y9LQ1!33Y[`^-V1D(;N>YMP]O]>`TLH'. M/,R^FU(0#+U,Z-R/0,`QR-%?,VH$8I.+IV80A\@L1Q]MR"^@;IE4+:-/II4. M2BZ]-Z81A4LJHQ^F)!0DUVO"XZYN*D%I9?&X0#_K.@&D$\O`N5?5Z6[[-)OE M1IU6VN_K'T;(PX=`E*)@:&7&)S\/PJ51]XX>M!?S'J(4%_?X&6=;_#'/D^(C MS0O=_5^=L-=S3B/@P5FG4A(,D8SPI-N87!@&8RY>8E)@?EK&,2VB%^UU<:6D M3ZX8H/:)HA`#PQ(]-NE%@=#T3`#"5J7+(/7(C7?I^X'"J8 M(`QNB-GQCN9+[6V_@81/3BB@]?G0^PQKH)"!CK1NYN(?L$<%W.P9HG(GE)TM=)4 MWJ;DDU=N%>B3RZP!AF%.,,<9F>EFUO$YM M;E483'=F%3`,<\,IS8B5EKCO&0WT8'!.&IE=1_#`\Z'3/`C+?=+!4U\6EJ9` M8'SI8H9LU>U+!N&,#%7)FDX,*&\D@)K=XS^D3.2/B+<&RBOE/`/B08G@LPHG M?XG4T2FW*'EEE5,%!@0S:H"9WYQ@2HZZ>,BSX5VM]$=`5+O-LWS8?TS55TE[ M)Y<>LL0J6106G;3XU#R"%$3Z,2(9'VKG&=_PG"\'CRBW+R+K?$5'9:^N^:0* M#3QT)TTPS)L$5_'P]9*4B)_J,V6^L2E>*8;!R:NLQ*RU2O."4)+R>W*OA#@\ ML1^(^.'-7RO>9/B)QPR;W"TU/-G5JJ00!N6=JP==,U]L2@`F0`.;S!K`/'D7 MK)KEH)@@02T%N^7();-AE8%LRRHU;Y<_2'.D7_=]O.FK3R7>DCO)SL#K8\2LJ9P4N"O0H"JW= M5T@W*MIZU@/'*`-6RIH*FNWO!]/1AD,.60NF1C(7G*JB=VXM<%C;(B MBOGH.\L2\;=4C,6SY/]L"Y&/U))3[%@_YMVQ/5J#20[QP7\)S*!ZU.J-.UU= M8)VW/7Y%95<(H-ZH:`Y+ES)J>`XEL4$?19+HQ&$-Z7:@BF"27CZ]:S#D:G*S MW6$JXF).HX+$FEIK9+W>X3;!'=SB5@F"&>9,Z'2N@4C.$]&1JP$Y MCQE7Z9RDVU(;/ZF5#DFF$603G6I1L(0:XIM`J:12!$*J7]C\O&)P9OS!E2=\ MNUT_8CI?2A%\IE%K8AD^";A3]?JTG%0`&++N@GI,X:8,%%6%#&@\"--$HAC0 M?*Y[JVNH\.12`'#:5D4'5NN*@,YK"^X]F%T/UC"XW4:USI=G4;&Z3/.OMIL_ M9A6_^7+MX(>9<_7R8/CH`%)^YZ,)3-SYWK.AH=W1B*6!(O#-T:04^>_@)75[/?WE` ME_?S&S2_N[B?+:YN/Z+9V>+JYZO%U<6#B=QP=K>_AV0W/5@L M\GO,S4-2/*C)(C_,X'*L(J0J-[JGZUS6I)_B+]J M6MRHX;/_.$#O=P.#.!@VVS&.2=G7J$*E>CHP*-8>SU_F]#S?/I;+;3J+XWS+ M.I*F'RR>N;F+J/85 M$*-&P-N_*NB&F\!]<3`LLV/47@UFM*+\N3=&-UJI\;RIY2M*\".0&^7CN_+B M='W&;[SK!C6C1LAX!@5T4Q!#3QS:#70[5,>H!3`#6DQQ5.!S7/VWY[:>11M2 M1JD])Z%S`9[O*DZLV.CZHJ,VH,%P(F1IBV7%_L93L6;]Y83@JO#[4A(]II!6 M%G*-&Q>#+=,P>69P]7$X+JIA^:JOC)FILAZT070"9L7C@D*0+XYK2:ADO,J> MV4H^IT2;N,&B$Y9^"OAFWO44X!-.!BN[BJT$5(;=4;R)2&(+.;2IA>69NA)F MJ@UUX+--B5?Q.@@7:J(6P;+N'&_R@I3VY8B;:ECVZ2MC9J"L!Y^%6LR*+3\N M6+E]N8ANA+UF:;R"N^AU)Z>OU8/A\8VJX>;NU4I>UR//F#[F!=[-UQL"UCIZ MFTH,,/7X1E+O_=@I#2&I!B>@IC)6#H[TW@0-U9@53!1;A6DG"8.,[IX`68L"`"5'2KJ0&E# M*6"V)7>&;KL!=G7[\\7#A!M@'H^CH]?ZNL@L_GU+*!YD.>()W"PIJJ84X/6H M>G+%!@?7SMK0EE*3D4M+>P9JQ;R.@A__;&IEL;K"C280ZM(\QC@1*3H4&;I< MN#NE!,_W+*96;73MPE4=S-@[';/B\%*44"4LA7B`Z3Z_[#U!0?4<]O,8WH03 MK,=M=8))H_I6G.!+DD59?``GV%@0`"H[5-2!TH92P`S$.T.W.<&75[>SV[.A M$PSD=+X_^=SC3>U"S9?7),/L/V<4)]IL5XZZH=P':W5TCH-6$0Q3IZ!5#;V/ M.:7Y5S[:TD:;7WU*N3IW'6)1`#R&WN8EMAP?Z,5#\5`%6D>]OBQ(MBD`C@EV MVI*+42IC\K`.!P;])<^>%IBNS_&C;I#3B_ODDPUTGT\Z66CK=0O.,:WN!R,5 MDW]7,@5`-X%5]:GO]%WSPXSY8TJ>JAR:$UI$6T)H^EFJ9F.D1OTMD-0,75J< MU_J3:M"*\9M7:HW"#- MU@1],"[H#J"EU[HO+R_.%FA^B2[^U]E/L]N/%^A^MKA`U9\?T/P6\74[#`:K M:W:'*B!\62VF$U.I'9J;ABK9Z*E0!`&]VM(DH^"XM;7K MBX1(%]('I\H/PK\#(H,$2I?Y"LMYWY\FK MX;RK6\2,T1-""=WTAL-<*FH^?," M!;\7C0N^(*G3(CZ0IXPL21_25?^G]"E+TGB/-Q-?D]RU)2/G* MZGD39=&36)SS$`'=6.NNYFVFGE")=N9VT`E.RXE`I3=P&TW$5%&GBX2R?T+I M!L\)>A`HI1P&G97`D\HVH'6LBH[`JD/MKE3YFUZ=5\U&#;][+U;HPZT8K7AP MIKECU.7?>D6="CCW45$MFWMH5@E,,Z-[9Y*'E^_#BA5\PK=KDN$FY.(RBGGN MD5?+$&96\4DN%_!]=L8IA/V M>F)J!#PX(%5*@B&5$9Z\4Q>SH2Q!UTU`U1F@@"I>`6=O2R?L]X$/$^#AVQXJ M23`<,L*3MR,>R^,X59KUH`CMXH_GM/GY#=MH3AK>UH!NT-O5GUD\.%W<,4KG M15P)U>%Y_!FB6AV)UQ:.=42T?#HOO"E:;-7'NH5B(:\7@#EM7&LW*/O711<,0R<"=J;JT2Z#L]4JOWM<>X/&C3RMK,=KX6:XO;OA M:L'@/'%!)_OMM?B1??8Q+/O="G>U8!2QW+%PU8&UA>6,]^A4.I#7E:_7I*QB MI3.^*\>OW^(LGA1[-:T,KQ[9+M4;^&=3"@@^QNV#6IH0NS+$G<=!*9!OJ#E5 MWN;032T$'*F-SMVT$MX6K:V.GHG7,!@\6-JS2:/@2>'L:V&[FM\\EVZ5&":W M-.N`8:(C4#GO:F_;!?45P8VBNAJZ#Z&32H#`3,?!+ZZ#YMU">]DZL+@ MZP-^XF/Z/=[D5$2+6U+B:,6]WNBT@![RF9CK3/\SGCB5@HB=E(>HO+ZDEJT\Z?1<'; MWHX3\'97QR@=G##.$,<\Z>L@GL9Y=I!7P1RX4OV0XZZ@HV(0[E@KHN205@O4 MWN`4Q)ZH=>#4;A/B2@T:09*]N<:5:L6##UONYX)@*Y&T[1;WL@:4FE<`\ MLP26ZN4A,\T>4=I0[6BY.WJI1>;++K&(R!ABOJ+DJNEM9IQ6E79J=%,+3J/I M6)VSR,`8L1ZVCP7^?\J)29B!-U_2;DG5"=83I>!\7@=-P%K2+@ MH-9%E3(,(IZQ+L'P)Z)SN/'/K.+W-,L.?GAVI9<'0S('D/+#TR2+R2:M@YS[ M!Y>1%\U[:+UP<)O?1P.BU;%C):?4JSCUN@ICB*LE?\G^VA3@)[S6( MIIFG%^/WB=C=*CE\.G9:&6!ZP([`Y0.^H>ZQUF_J=V-$2A#VSTV$0Y7U>=TY M:,:5W?YE>EOS':KZ[6IPWP*#\_B0M5"^G2%N^?`_]$H^0:)L\:V+CNF5#V/T MOL=LF;'%K&_F3QEQ=^\=]/S>N'"LQO">A44I.'.G(I6'7*&'>HHP:+>@48)9 MOYN7*TQK_ZA@*#'K/H\IKFJG:0Q'79_TFU2=/@6=%,'0<`I:*7-YFN9?Q?7T M94[1>;Y]+)?;M$G)#&0T;%,O$@.2<=ACR=+)1S3D>RSZ4"PW@^DP:8,%%^ M%I7@X]@TG*J=ZUAL>IR3=,LOFS7EH#]3^+N7>T^I7,@G$E7XMQT M0X9-N5^)-A&SEU+\TK7_:H\(/!N1<&A]%[XI7N?=6G<)Q@MH?A`S`-V^"",[F`MGKI& M:#?L*X^WG,AYFWH8DKM52LUJLRY`&CL!-O$6W"%,5S>10GD:(U4J85BH!Z]F MGBP/D&U:D/*-^/8IWV&N8A/'CG6.!G=:&FDD+'VT1)NYR*R,X@_<$;B)S5U`SY:&%RY07@M:76X85WY",K+=KD=?X M+GH5*_3+G`[R)$\D^NX%AZ'^O@VA[@R[E@JP>^Q9%5.'J8I&==EU>NVF=''9 M<)AYN_D$K3/I,JA-[#JNQ83I*-,JJ>X6;F4`[`23@#LX/'!3Y;55'F_\]C)@ MG;[6']VY/;&T,!3?JD@ZR[,$9P5.3J.4QR,\K#">NA!S*B/,\#.A>NI!QZ$`@$.-.VK%E=M* M$]6J2.C"Y6U]!SU*'TKF!0A?=E?Z.A05F,7.E;60V5H.9$Z[@M=3NU4$F>9( MKC&/IKU,\Z\M[ET9;BTH,+\=*VIAMZ44R-QV@^[(;!&$S4N#PNQ!I72-,A+R MRD@EP`';!A)PF*2"):T=6F[\*L2`)*)L85V3#%^Q/^JNWZH$@[!#`JID2"L% MCR5C:`:F<%$D9('0I0D^K+P`+`(/V2I+4V6M=(CH40UD5=CH2!0,AD<;_*"2$Q2?/>:&6D,:Y#E MJ/D8G!`Z1,KL0TDM`V-4Z=*!%)>LZ<^V19FO,=6-*'IQO^F#S*"'68/4LL%) MXPA0&D'J#"R(MGHHV6+$6PC%C3(,P]C, MD`?Q;&I1,,0RXY-/!6),RXADJ(Q>T"/.EI8QZHA&8`Y;%Q%R\;OCO*[PQJ:JV4])N110MUF(Q%$@,S M'^JQR;E7*DF$*U&^'<#:B+&S)-S?RO(#A(!K%F/=Q,&#>[?\'@;_2QV=-F8_ M6T\R9U"U'-FM'&^+NWVJV2X"=RDD.!WW12[')E0E3[U'-3`#!ON6*43BRJ?Z;)6.D'K*M[M%25,"RX7;Z(7 M'EYTVISAGD4;]J74Y:B?5D1H=MHJ9Z.I3A\T7RV@K<2-GBBNKHQ$8C5U@C;\ MG1Q^P!JQ?T[XIR,MZ:=4YR:*5TRQ>\SDMG1OO@Z*`DE8165W8FROG+='61F\?*^GBEC'G>3A MN7NHVZF/Y556E'3+H56O!)*X#K)OSCTT;IFCKM^;JQ.J,[S'ZJ`8G*N[H%7< M<8VV*3\(J`^U^%;"*X[HD093AHZ_B1$]B21U,>59'#3$(L(& M/O;O=BMPO/=2%E4Q.:AZOX3M7 MHG<[WZH#@U7N0$W$*F1F=04?B5L+!H9?1KK%)1MLRU5#954M];+>6&2#VU)' M)PB#+Q9T8Y(TXN(<[RM7:(<<='-Z)G;G[G&*R^A(+)G%Y39*QZA5-=-)>F.( M&6K+#[48#'88L%$_W]0:.XO\G'#KJ;=/2R,.AA M!ZAX$#Q/V*ZML!F#5FXG:8=<0=&1[C-LM$G@A^2O$:QFDCT':$5DK!&)M-T*28GTJ6]=EJV_]`'#C,!G\O4>\=S6., M$Q%6RG=FJLN`NLO3+HH^M_;=*](?BNQ:P?DV&:I\D;F5$!GQ%GT]_ MN@9"PWZ-BF++=_2J>]JZUC`H>*6=%?B`;EII.#2S01S3JU&H;L?3^K6&C4A> MG.81D`=1VZWF^^CK#4-(293JXT*4LGZC/0QPAS$<"D$P9#*ADQ8OT5?4R@`C M37L^P4^V;'4="0>AC1*PDC<#27C$4<&3HG8QIN](]FY320'CSB7)2+'"R<<\ M3ZS<&0D'X8X2L)([`TEXW%'!D_?E*QDDA&!09UZN,&UKT8Z)#]O-)B68/UE^ M@VF\XF$[!?Z<)9B>Y5E!GC)#Z-:>9?HDXD&JW^?K7@6"H?4A:B%=_.TT`NT@ MM172)!#L?_<T^AK-L\N4B+. M"GHIHVQW?UQ+"7+/:EH5E;>OW(H(WN?WPRVMT-J"^*6LE&=`9?^-JY"7A)?& M,U9T"<(*'K&Y6W;O_9HG5X9T#@K56\J8]L"WA1?QZAW8VM[P>M@7#W& MA>GZN;_7B^='`N.D.4E@+UH2F_EU_'N@(/6VUNZ-XS ME.>L>ME3===;TR+3B@@=MFJKG"UL5:9H&2M88I5AD M=SC('>S#,]FA:<(QT<8TD$S2I7T:S*,G_4R#H`*.FGRUG5?+%E=G6TKU6QMF M%:]IRQW`#]*6&^3!D,L!I";I<'])X344LYKJE7.ALU;@`$M5%2RQE'V5X.R9 MAE,^LB8BOU#)W\9FHU9SG\W#>O2.XDUUTCY?SJIHDK]OHY0L"4[DKF!;!TTM M+<@:=;KTXJ"P=*]\9M7L)NVR#8ZZ?>F2!3)Z=D]PLJD*:D">VY!4!X^0U+<.^?1TD-3IQ]C9[V_4B><%DVY> MY?]VSZJ&;TC&3R:<-JBG%1CN9&"7BNM/#J:4!F:0V;L*9I=,>CJ@W=T]J?=T MQ2;O)MV^X9Y1G=D=L(&;`J'WC&'%]^T956EONF<,JK!KSQ!=`MA1\%F'5C6M MCYI.*^V3T!;(@_A+M2@8*IKQR<^9B M[0GZX490AVKI!TR#,AA23D4LY]QZY+F-F@**FJU(E":FM%*(>K2'-WLU0QRP9^@I"L*!E?5>P5@-.X$KQA MYA[(@V&8`TCY<;7LJ3JT3ICR"1(A!(&V%3F6!8/"JV'8T%6(P=M,-(&4;,"3 MC]8C0#/G@'F/2P3Q]&MCG5N,&M[#LLS0I:`KM3B8'F['J.K@[]H.SAR<[%VM M`(-?QLS/;&F1Q603N0UX>F4P&;NE"CFG[&XUP7!Q$ER9EE'6.=HDJQ+>IJ]B MK1BEJ5@LAIJ'?-[MAC=S[8+>:-X3PV7O(R;:'O+SE)$JS[.:GJJ;*F9Y;_># M7&"W]X%,PL$'"E>$\IOF0@@UE]!X4!7G4Z#AX&!Q1N"ZN@-6RWX>Q.?R'JI] M<4,JIH&$3]]``:W/G=[GX)U7CVE,B5I"^)?#'@RN/(K3IDC@?GE9'Y#F3(GX_^''N0/?G-,8'I`__$'C=VO M%`[CG7`8[\',,_U#VITO^$XMQ.5@(T]V@G])`W6`T52J.B$`$> MAHW7">KP?-U=P!]@HS:(-7?ME#TROR'[*5`?9A/T+6\2@K/?1-S6_<+I_I[' M?`&]#?J;=IAH?=F"1^W5%;[*;O%+N1">K'AC3)=P<<\RO68D.$3U=2=^DPL$ ML_XY1"VDVZ9UATB$4XT*\E)MI!>H3J)QCF.\?L04_?#A!'&ZOL$>\A\XHHNO MXY?$]BL*;'\857;G;E"7\S;9/P1O(3U_ZE5'][_`H'O]ZL(U?Z2TN-SR]Y/K M^(HF1_[YUA)T-ZT(KU>P=ZC<\%T<=WTP=-X!M+1OV@W6%Z`':Z>Z7F6LP_)^ MJW-@)I<"CL-R%2?3N"OB;3%9PCTF,_^FH_%;&H191=EOXD,0N5<.1"I+U=R% MS&TA;X[.8^13"/W/;XK0EZQ]#\#G7C$`Z2Q5<@:X/`(^ABPGKG8PID^<7>ZM'/E"NCI5!&ZTJ[ MO9*9;+'#438DKC8W2JZR.-TF.+EJ+J'N[DJ8BH3%;'OEIQ%>7QZT5Y`/4!?E M+8`J`S7/@KEARDR:#^2PXC/M5;^KH(L7O.?+6UR.ON_O\?93";5#-,<``6ZB=&O]OPQ)4_B&8W"\;Q"UH#W M$+PC7MB7G325,-]TLBI!>Y_-';"<8[2]TE3UJ\(E1^0>T56W6[YDF2\79(V+ M>39[QC1ZJBXKI*^G#,!#E$;JA["<5;W%7$VL3!M^Y:@7?.VZ`UB)8$*;#]\E MU^=YEZ.JA#9T\Y$/YX4HY$BD>\#\)YDMZRF'7RAHJE57Y*IW&TS5"I.+\$;" M'2O7DG&B/@Q2[@9:3\ZI8<0'(J-X,41[V=\N'H1D&M!*0HUDX9%'#5".5:LU M#C4['F:IUGC0ESF]9@Y=^H#+,L6F-9A1P^?BR@'Z(!VT7CPXI]PQRE&QZRA+ M1$KW:G^,9,P+8ZK\.8+-%DK$TL7O6_Z>#2Y7><(?M2Q*#G;^-<.T6)%-E[I4 MTS`3]'U2<'*U^H1T5@9#SZF(S1EJ\T8/V.Y5+\;C=<&&["**^5KH;LO?_^8[ M%(P"?1E-8TTOQB=S=ZUDG\!3RP##XQV!2W1NY!%OV\,^KJ'Q_#3(+UXV."OP M/2;KQRTMQ(PQ>#9$N1K>HS!O7N/>%6Y]RIU+"D[;@\`?D[=6Y.<(/=6#/Q*C MX7%S]-&@^(64*QM=[3K>6.D*OR6?30$&QQQ1:D/F<<.IJ"CRF`@6?65E#"D% M*57XJ,:G.:7Y5Y(]Z18_!OD0.6NUL%69:B7AX*1S12BE:6H$JHGW+"JC=<3& MQ",-5LUCAO5:?Y8E=5KI%X?K(=9'/XM^WA.([FK,QLGR]8^!YGCU^Z+59:Q8, M[MJ>O4R74^8)H'6A&F*=G!!^9?=8?@1;G6S76[$(/\=+$I/R8?M8D(1H[OB9 MY7WNJ5AA][=/M,+!:>.*4'XG,B%%2??X$8_ZYQV5$ M,IQ<1#3C^XVSS89U!2IVKK5GAR85OT>X=O##XUJ]?'"230`YYED="X`:553K M(HK%Z):@94Y1RT5^K5GL<.3\19LV"("??-VQYA!X<_O8M/[ M8R9Y>+M83FBU>Y&TU3I!&=Y[YUQ[#OW,T.24)W.5]J&4$A[/F%70>B?*_<]0 M;*^')A\:MT(P1EKQP%FU.#8??J@$O3\NIP0JO2DWD`(S0FNA29M58H9N@HNB M@VQ<:`:"!0^0:I*K:W>J5%+>!@0]Q'90D$5@1)F9P8W-+@0/;/9#71=I+KT6 M5]ELN20I=TR+=BG$!K-9<_6E8`OIO^4D*W]FXGQ]K+W\L%>9?J^='*#ZPZLI M>Q0(9CP[1"U4TV-5)K_17[1K[2,-?\T.D&J_J]^'U7+>AD`3S'805`D%YXH- MF1RZ7HF*Y0INA(]Y&S/.UYLH>^V\=;5KIY;T>_-2"W5XWU(2@\$"(S;EW99=E`CK/#>\QCP>#D<4&G]J"/[SE;7.8POK+)28;I'3NX MQ79;'K$'7?=>6%-UG/YW>!M22G12\A$FQ$\I8B'FYT:QRX7A@/>!K==]_?8C MV_:3!ISMUB.,*55[=]/E23]79<\WL M;Y2$'_)P_/;@TRG:_G*43*Y2E[+$617*B+4;;"FO2:\`%'[%3_8Y6#83?-ZJ$D\-7ZP0GU$2@$WV[XZ9Y M':?88XMGMPG143%8XD-C1;0I$)5:L)82$Q`?/3NBR:]R<:@">E)6%PJP[^3J M-!U_@^LL7Z_S[*',XR\S\6*""K-"R)NMM0!;8TL2,.83'2QI*27D4,$%CW9M M!2\Q&V(2BYW5AA]JZMR$(P#&Y`IGAQH1(]JMGE8"3-.9`D%3#\2W6( M-A(!-9UKX2D.+1I!E%22QYR]!0E7>9I@6E0)23]G/+<.)3%#8+F(X*;L=[Z? M4J&A(^"B"V*?GGF6I$A MQVQ:T/CEB-?JEE;;O$?@VJ$B5T5Z%]WV7??9;T3J$-0P^K3Z%MRET0!2I<YRPOROGR8YXGQ0,CF";Z3"7E<86B@]A;HHQ%0/DP6GCR6J4H^4'/$Q=% M!9,]VJY6FO)\7EER$]$OF&?B80.-"%U.ZZ2#ZKT5!S6/.UK.E>CM9UEU@@\- M$X'*FUA"\P2M&\43,8M0H=MFQST2LS[B#-,HY;E8$O[.'7.IHI(\XR:5I:JN M=AUOG'*%WQ+*I@"#38XHQU2JU:I,C`/%8].H2@O&,^#7J<+D,T*#G,43\PD+>B,'Q0$5Q0U43C8PTDO(=Z#*%)`1[59RC^BAZ: M.J:#"!%/Z?G5%![+!$N_K^CX0P$HG5Z)RI9._W@AG\^D8*/)94X7T8O:R`HA MG\&>:H#]2,^A!`P[ZV`I8CPK.9&@J.221YW4^4RBS7(R$/`\C8^`C>;O^BL, MVZH@J;8.>+JS8^T<1,7J,LV_%CWWH9\A6KD0MNKXVU5PA-_M,5@48!##$:4R M)=62ZPU\//%V0*,*P]M398U,MARD.K7O!+T0KT9:JV%+\SE0"L[!J4AU;YGQ M3;"-S]P##%^,<5(]N=8DXYLOKTF&BW&HZ6B2==#SZ:PX5Z/OOUB5@C-K*E+5 M;/C8/MCS!]JH_Y$_Y)T>--KV0`-=55#&@Z M86C+81M0_=-0C%U9+R3N:`\RUG2>9_U;VZH^I!7U^)BB$6SOJ42EG!]N_+7B M1H:?^(T2[=&.&>.8%JVT&'28/!(WY'ET%7YO3JBX(L9)0DU2H??%]D:.Z-%07!\#H#DG&()O,U2*AFGJ'8!1H MS:W&9XI&.;='H_AK\EV??P)N!@FI0W@0GVVZE-;?AK%/N8W2!0-*JH=)?LEI MN5)81B4&S28&C+(UN#`J:VG^M`KZRN7#6"%-S_CP*%*DCUYQ5@H`:WDU.JG- MTQ2U<@[O,!^MM3>4I(NOK$:OMR3#BZ_Y8I5OBRA+%BM"2XRS&[Q^Q%2V@J,B M,.M,0RU9C:NC2A_Q`MB?<]04@9HRT*]5*4$L>A:E<36T7I(7G)RM(OJ$B[.< M)U-XPO>\:137*:PZL.SH#EA>WC2::,E5^2X;UT5QK8S$?=H@0U^]M=Q[0/.Z MEYY8TQ%=E*`9SQFQPQNCB"NC^1)5ZJC2#V.^8B52,PW6W>*$DOUSQGD M+D])_+K`+^5IFL=?%*;=KT!H9C](;92WI?B:5ORA5S(218M/O'#$2T>]XM&O MU0\@_@M(_$2@`;M8G>--7A!%3'?_(SQSCI`I3=/(A&K:P]XK!&<"![1*LP@] MQ!51JXEF3O<+CV>M,EI'--*YG*/OT&RA`B)@^:$$259)CVIIN?9_7E2LDT)F%8MG%`*M_7>BQ1IX-J)51KA3%.$5.RX96<+[N,!;8]+37_R_OU[5.D$=1$N<<*3P/QM2TF1D)A766,DK20LX]A@CHU2RZ.^ M0M@EXB6A1>G>>"U&7(,[[#K&FRLO^^@=8\!FEHUK%#E8WS MC%&MA(16>R\PW,&9Z@RWOL%"(^:-9D^+KSA]QC=Y5JYT2]1="H%FSYUK()N9 M'VW79:&F,%3?]&F*0U5YJ"HP<"?5'.-/L'9/'KYA9;".-A2*\&R%16:!9,\. M:R_F#5C6M0ZN!J_+`]EMEHC[$";,MHT-IMU%][!S37QU.-69H/L)I_A$I*2WH:N#'OM*UY![,Y[RSM M>1>V00^>=!=6\[NAU27?%<%3P^2[%P[)=X]EK)\PR?`7G'W^=$W6I,2)IB]H MY&"9Q@QR;)%&&GW^A&KYL/M`5PFK'%D2$:VG?J%%%H%E`2T^*1]I3Q!5DD&: M?.>,S[":78]03@3+10?W]BRYGX_;]CSKY5F^WFSY_4'^EW.2;EE7O(@H#_0N M[C!]8`L:K#E/W:40B+;;J08:VXKDWFUAU5_KXE!3'M_"0Z+$@+='IB1J!6HS M_?V$OC$"74P029\9BDV4O=[C&)-GY:/#:C%H+6[`J$QV70NC3CJ,"9Y9M7(> MI*?F>/\SM"978).;NA4*Q?*_;0=Q>!8YZS3&.,_D=8K:]`)KV@(43"-FXOZ*VYJ'43E5O*_ELE"7S#&/Z&EW4**.[8(EIU'5Z(>OMNDTT>A9MV)?RM1>FZ&A+:SEOP<"NE9#" MJY\HQN)^VX8_@Y#P%Q?K-,#=O43^+D*31!%W1099\D^I_DT4KY@X?9VQ^:!) MH+T7*Y0EOEU^F*JS,U/63:'#Q.7@V7*/H_2B8`V[W\#1%?-V>2'586LF/X459M2&J.A+@OX+ZM][XE0KF6;8O:O&?XO\@?@SQ7PM[C-#/7-Y+\&>X M4F_5@$8(-[BRG?LIVME@7F5QV7#=\"/#S>DER:(L)E%Z&F5?Q-5*SKW%BDU. M=SG)RC'76W;W2:\9'`Y:.BPZ'*-J8^K/2ID)T,U'E?.&BO^38S! MA,GQ=.F?\%.W4FD7HSJ6N&@!X\$$R)*E&UW$E/L+NF[1'M2&_`IU^MH<@[W^ MDM,O5]D=S1FZHNA(*)O141&8):>AEMZU&73*=548(DUI/&GL%_%<25U@$$?\ ML"_(@#*?$U;52S*5%AL[VV"O18XZS2!FX@F&9VM,21Q9XP=,PL!,9$Z->_Y6+,&GF.:)%_I%&&0,>DR71)7K3"<(SB`&ETA[,#D(!U1K!NT@3.SU\ M4>5L2ZGJD-:J`<]"+G!5INK"PT?/PZ!:-U@7*A;Y341_W^)2NR)7BP$TC@ZC MVB*L][3BX7O.^!DB_3F%61RD689]Y5?`Z?XN=URCLR7"[+&Q3R;59'% M]6KP-"KP0Y0J%T=N>L!,-PFT9$.AS=>W)=?G;[A&=2!VL^!]Y`\G%J*0(*/? M/,.?,WZX>4KQ5\SO[LZ7M0=ZE<6C`;F#V=$>M>S)YGJ%-&0ALU;WY#Z_?B[)XWVQ*0VUQ@"W>18[),<'3BWB35I?Q[VGW M7H&A+7]'\::><):SIXAD1?GW;922)<%)\\*J(6IR]Z+@,F&G>I@9T14I?.:J M4-26BMJW;,/&:?9;H7X\HLJC=4X*`1`G\XP-6CF)S52P*<,UOB-RL[F;YU"J M4E!7#!\%ZH*"V)?B)<\DFIC>AE`)`;.7'J%DET8T^",1=S3?8%J:XY940M#: M7HM0;OM*='A[,%#;/Y."U>@RIXOH1>7)C"7`M;H2GJ+)*SG$!)&0#-'>7:R1 MY3*M3A!6ZUM0CHW`Q5$E#^2J;/^`5VN)L0@T&VCPR:W?.YD&T^H+&F5%)-*L MUXG.[C%9/VYI(6[O62X5[%P27!ON4@VSJ7LE-LGDT*!,Z=Y"(%+@,M)WPO8C M.-.-D2FLP40"][AFX9;UPZ,4[:R4@];D)I!RZV^ZS=_NH5ZN$<825;;E7F9G M\]OI-@5HMG%"*QNISD'=?S,=PI/I]_EK%9W`%L!Q7C+0"7];CRUJ290VSTB: MW+B.P)IV=A^V=3 M0;ZL;'=?RL]?2+2RV5&K`M2&-KP&^XE%=[?C5"*A'=AR:+N#"FXRX9DZFO[?(= M_#0O&-D,\Z%=!YKI7`'+IJLUVVO-G6[P6YKC:MWF67W)^II$CSR-$5%L`#MI MP;:?";+>@IM*&8BE8DVL@%X4O$UB8W2`9`B4M2J!?,>N!DVFB.8NS(BWT[6WHGN8GZ[LL(8>X4W*TR36QRM\76I6]NK MQ8"9SH11LE`MC(0T8N)ALU4];!]SFI",KR?/\HS1IR1B]+`^M.FL"+"U+H#$8"-K,*G;NM:$DB;FU:N&CFXK6]?G0Y-T),/9H=/'08> M:<7O$J[R-,&TX!?;%%@VG^<-$$:)P)L-564W04U"\BX#3T^?3J\R>-6]S[!LLJ M,K!QNPN)H*ZJZ00/[%&=_4PN_+G;:*7S$^M6_#E!X^T5!QU@AG`&+!EHO(:K M=6$\_ZI;IKK9;20.VF1JK%9K]5;<``SUB1$GR==&ZPQD()I$!5!CAUHT\/@V M]BU=M*!9QQVR;"_)>X)T2,U3QE:/\_"D#.=X26(BGWHJI6#9R`1Q;)-: MMDU%44N':/]Z;Z%Y"(_'?0X/;B5;6#5@V<45[MA&S:;+NGDB,%^B8GQ&'6;" M>8S&)T6Z:4]9665H;9(GW)/B2W&7IR0V/+;C MK`G+9%-A2[VKK\^[5ITB0A2!?JT*08'G)L<3(UWOFZ8.R[X[8=_KM"QL!VY2 M#M57+>5=N;$`+'-IT"E?0N>/731R83(LT3S&..%/K+7!6D65=Z9HAA*I_5V4 M8-ED`F)%]#I7K5ZAZY2;E#I%EU,'ZB4=R7X..K#,YP[8>"4G[ODIF1CF0KJ. M8]^WB:?4QD^8Q('9RP6K_?YV%S$:-F)B6)EBPHW@XJU<"9:!6LU3H$XGT-Q% M0T3AABBM'8N M"I@9]ZW'CC>JQSE4PC\9W+YTSY<-9U$9K2.J33AE$H9E8`>D8Q.V*M4*JE4* M.VJ.%^G\=4ICMB.;`BP[.:*U[DE4KRB'?U?)-+!8TE2YJ\(RX63<$Y>^S'\< MY(H(\]Q%]9):]G25Q?F:K1,+U7Z?4@J6M4P0I5(S2_[V_6_I8^K-%(.:U"9P!"C[\8TXJN1#K:,:_-4^XF44 M\\NRK[,74JC,($L!,H$!G'3N5!TS-;+H5RX=9`G[\53CF34??OLA>`.K\8S; MM!%X2Y>O@+2M"9KZXM5`-LA1=^-,U\F[V'RB:7>M))36MP.4A@^=1JAY5-SG M4KPKJ10`-&2K<4F3I9`Z:0*@@C:ROG7!-:NE/0,U8R\@QT!860I0\QK`C9NZ M)QJ:O[V57']]QE/]J8^5)BD",L\TO(HK2>UR=;".Y?HGO8.G4/U'D\A7]1V0 M492PI-["A-Z5@?+T*GJW962"U+P*5(:Q*%#3FN.$]5*`&MH`3MH%ZXG^4Q/% M."M+2AZWI3@\*'-4O349GNK6*&Y7'4"VMNG2K%0+4SGIL^NWW]I3KUW.\C+9IB:YYH:%V?Q5G M"$8K=&(0[:!`9ST(^0,7_R,0W$-Q3URQ6F;%67#]EC M:'JS!B!+.`*5^@970WV]MI/4JG\,UB^:CBTN@>09`[=E^.K>G&?%*5[F%%=R MXKFWBY>21M4BGKY>E7@MKILR3?:;J6@2^<5M#S\'B"4^:BGW_?Z@NQ2W<]H? M1MTOHT?QTPW_Q(^?H,'/(_'[U<9,AZ!]/#S89MMZ0_&*=1;R7+<<\U[G2U8# M]1:;5AP04UQ0RMMI/9WA9"L<>A[TQ_1/8"V,/T8DXQCG&5^)S)=B2-0?`!C$ M`9G/!:6T/F`Z33?-,YXQ8),7I(G6K&:*H,<)C%$41P4^Q]5_KS+S*]U3]`#9 M;A)W54P5C)_&0 M.TF,"Q6S#FAK::`Z&JS6#KS`D6MUCL4@;IG47/1`&\\`U]&`=0E09SA%D*VS M$FC+Z;!.G=CN@KSE8JP7W>+$" M+8<.,`N+]\_Y'WKEG*"J)*1PB8,M8*H-IU=+/ET7>4!V=((I+U1J)4A9:89BWPE0M1FD]+K_V3*7`[':-+"FK.5:[="S MHR&WKTT6XJRH@ZB=$9GG4N7I#9^O=WBG91&].-E&+0O*-A:(FOLUXF(%...< M;X>S9A=&Q[QKW8?IY<`)NEO8KNMGWPO&0O5"WD$1D!&GX967[KUM-K9> MKPI`=0FH*0*Q,L`:LKD6R2:(=)OP+:KFRV[VU9?WILSN4(T=V7#2WD1%3>'B M:DC]&2Q1[AAD]M^?HW2+Y\M;7(Z^[T876ZEOBC3.E=F9.O4O(/$3?,^?[Q&/ MQ<+D,&ROHMTJDKX./T-9BFI0Z=8UE5CHEZ[=7Q<'TLH&9,JW7@>BP5K;U,P` MV]>E8<.UZ.CZEMRL8P$H;:O%)670&0F&2DDD7;1R78>Y:0*:CB<"5A@L\(4R MC\ED@?2F'1!/.8`9%A%ZGM;1:#!. MRVF&Y$-,-=E=-*'89CI@9?=P*2&8)3]-R([EK@7*@LY@E=:S:8=Y@K*)@T`]IH(5!D-,`@"B'@02*5:'?LI;-7_IVOV)_;/S3^Q_WMD!F;_ M\G\!4$L#!!0````(`)6$#D>)Q=>D>S(``$]<`P`5`!P`;65N8BTR,#$U,#8S M,%]P&UL550)``-:4VW9[CN]$K3UU7=LI5?O<>7*P*$C"-`7(7*JK_.L'("F) M"Y8$10I@'?K!+E411C2GY]]>[UVU<>(@&=8;+X M]=77Z>1H>G)Q\Z'*?\-/<_(S*CT=>[BVVWRR19__+FS??OWU\3^NA_I]&W^'5`8=U-:1H% M:-O7U=GU\?]Y?_K^[;M/;W_\\-9[]_;OWM_?>Z?GUZ^?YDR24S]AK?B?6:NW M/[-_O?MX_^[G7SZ]_^73!^`7$S])X^T7WS[]_/;MN[?LGYS\;R$FWW[A_WKP M8^0Q>$C\RU.,?WU5DO/[A]+-A9]LS^RM6M"]Q$N-?XHR]2QKX23;*M)_Q MI"WX_TTVS2;\5Y-W[RO-LK/-!C1$-VAN(O2= M#9'5&_[7-PRAE/TZ.2*S,Y+@Y)G#%:TR;ID$67?+",U_?<5:/4PV@X-_\U\A MM,GSFDV;&/-1_\I[TY;-8S_D.ITN$4IB'5_"QGTP?8?0G1/[U#(ILB,+43)LXXY M/657FDL?:,3L+][_"64`10EFWVS/>>L.NQT*Y>\!1X*(I*N93,EBDJ!H=8H> MDHF).O64';%XXJ]QXH>7B)DZ-P\A7N1KGXX_#5EGH+)QQ/=R,*+B]EWIBJY6 M.,DVNVQ3SC8!=I`!K($`THZ8+,;*9,T'RSW31NP'($BUA)V!NN!Z,#!_Y10= ML?251"A.(APP^:]13`II`3][?(PQK2$O>_X,#ZA]/WN_C!>0<1][VHP5H'DO>UP MT$&JINMSMX-Q""!U9-4]18F/P_C:CSCEH]9T[.M[CJACPKVWLS1$-_-C/\8! M(SS%85OD!C\0N^G9`3*/QV?F'#J"`S?2Y\I,TP@GF^U6E_3F- MIFD0(,3C(OX+^1%T^^[WJ_T>-4MXG:>,172%"5ZEJZP=6WHRERGCL4R^^350 M/?U_N2=WM[DM!*/OWQUNRGF+KOIV+)B*8-Q1WP(T5T(I;ZUE:_&-WGPL)5Z: M?P1;=?OTVJ=_QG0X&G72)^,3-IMGB,1H5HG+N9E_C7=N`R`\G7W@,`)O8V/* M'I(^!#?_T,$5L(T-ZEE^V'=4XJ_9IUA7&=TE^T6%!#TE3`MHMNF(:V'?J#_V M:][)V_R?=][$VU"5?_3)S,N[\,I]%*QOF`]I4.$WY/&0--+IET>D_J'B]>B! MJ9\MZ)N.0O\!A5GW?W!:&.F;-LP6NLTB-&,4O%[0QS'YR#QZ(/FR@=1_YG(7I\^J!AF)@:DV` M&/SL$@9"*6W:2/F2F=L,Y^QWL5CUBN9`&#Z[!(-6>ON0\%T,#$BI,?BTYBX> M#=$%:/SMC=!'U)\#29QB6?$8O?NL7X3S$-\8P[YKVB)Z_H:M_A M-??CAPRJ-)XL?'_-Q]BG-RA,XLUO,A=3:;`5O_ZCY*T[QX3QA-E3D5ZK4T@B2?=KV;YH%(8Z%)1&Z=YQ>\[#]G?Z;XT0^S*]_DQ(^B9V:@9.4*Y.@`R:TYL4!`T#8BN01B M$';VM.9&5R&-'`))0GF(&V]I>2[1-8J29YX\D1WFV):XYD:IP&+-7T<]E*9]%M9GZ2>2F+VB7V M'W"8Q5[S]#CN`E_2D*DYYK,\>=:?2N$]0`^JO9U4]W`CF.K)C8E7XAKL95#1 M0!'L[?1J#(,41:==$9?EC$&MH2AN#<6JMT,L0-EU=.12NX'+YJQ=Y##H37A) M>R@VO9UNC;%12^X,.E'*TVWKLBD!DI%`,>KMU-L&([7\^\(DBZC2>SOEPI6ND<2EB5%*OM&&L\5>`:<0-!GA5Y M7R1%ZNT!46,H1KV=9\W-`;G,;H!2SD`O37XN8.C',9YC--."9=0)%,3>3LC& M(+;0D1O@2A)S]>NEA@Y\_^<,A#!-]&1;%%\I,L1YX1Y)&]A?K\_A*L!>GP%V-U#=Q+N7,Q&GB01&13A0QR"]W0FR;7B MQF14F+N02Q(@.1300YR8%8B`3P+*ZQ2SB!Q8*(81R:UV"X#36@]*13$0YSIX9,9JI*>K-6Z2:;$@E.H"*`('.+$KD=` M)XU+,Z?L68"Y4>!H'.+H#9X/(D%?D#$*,CT-HCF=@JXIYM"1`[PS(;(]%410 M9%V]CP:_O&%[Q6P3&-)!*,@'5\]^0PD`N=VL$QG#F@P&86,H4KT=ZHRQ4SNM M&<,)UX@;"#8%-+$]X`CU=H+KP,IX*4V$]\YP:ZK!1;#R`E9':;*D$?YKMQ[K(&O2V4Z" M[PPXF4K\BCE-3Z#8TMA/G.X:MJ@IW(5.7T%,(V*:&7H_.MD[!Z[F.7BUM6XD[7NQ.^0ASI^P^YM&YM_M<]N)' MY8->_D7O!_[-?_-^^$K\=(99'S:=+CE/6R'T?A8I@4V_MQ^B^`X](I*B+Y3. MXB]1"5:!KTC2WK8#10-&W?>ME-J-%?3L*<`QXDY:SNR]_Z0*9!$VMNT<,<-$ M(:\;@#0&C;(TD[BU;;?'GM-$7)-ID)=$)S1F^W@FU92&2A.RUM"V#\0,0XF< M;DRI;-F]C>A<=4%>:63;AV&F?(%\0Y\WA9E&%D411$"]9P6)[4.S&9Q:V=V8 M55=^]`UQ-MEF>C3+$I#B'=-RG'1TML_,>O53(WEOW!EEN9 MP)O$#>%^@9MYI7+SMFRSPE(!TENOC=<*0C/MN('H!4D0?UY< M:V0V&EHOI=<*(XF\YAO>YWS#(VC!+S(Z/NEIFS M,]S.F=;R],Z4";N[1SM&5*D/RG"TY>$'R*G'!\WWDDYBIAZ-#9MG_A3E6L_]. MXZ1X:463?]K7]Z!CR:4C=6]J=V-1$(BG'Q]*(NNE^$PO3+4*&/KRL4G*O451 M%HUV[,!VR!;I.5P\HNIDWXCDUL\FP&^N%VLR0;*4DI_$MQJ)!%+-Q1];+ MOW6"L4Y1KL4W\Y>'ST/Z71+$_*D9Q"P+7>8]>5E7CH0FER+5MU(:Y8$+J.P> M5#E#MQ%]Q`SLX^>O,9I=D.T=YA&SLQ_SF@9:(=OT93NX&0)G\]C;4F5N+,;] M^B;Z`FH/K9MY+6P6M=H>8&/^+%%`28"S9\%W#-_3SJ9K/U^S'8;=V3CI$PPW MAMLI8N`$V"\\*4]>OOZ?K#P0Q0GALH MUX-A,L>Y[J%N)9'M1($#H@Q0WO`C5IC:(OZ0PBG*_UM25/'.`BB?%MR'[=R% MSBP^<\6YL20T^=YL4&PV(?PH>6Y-*K6(VG:J0PML=.#*E?02UX`+\LBT3"-E MT7X-F?6DBAY&@4`O+Q'^VPBM?3P#A*/J*%W(QNAZ$(BU\Q+'`3NV\K(J(*L1 M1@T=#WW60NAZ/,BU]!+'Q&8CE+_,JMU#31]G[363IR]#0?Y>ZT`?%12*&J5, M#,A;33!JZUE#_0P(B9:&/R;@IZDN+@(=2$GJ\F+)4'-##W:32,Q-ZKBCRV-E M7]9S:+J[/0;HS`UG`]L$"U?=4?!GBB-4R<;CF43Z=$63/J`8']J]!`&,MI;Z MI1B;3,0`H5F6QB-(W@0.%Y-.K&S'7GQA(!UT`7VX$#"4R=06ZNN1=J M0A1%8#LQ(91]0Y]3HZ-+H;_H"!:Z\+F\V! MS+O.AHNYYH9NYY_-YRA@-N[94[#TR0+=L2%\0[@2^`L([#_\+/O(3KG*J%2S M7JSG?K6P[=OHR0VS0AKZ[!?+?,06P2AZ M9NN=[ADO&#ET-+B43&:DF=;#8)V-+L9>E/QS#(8_WL.'@TNN';!PG0R(,^*` M%3E-U^LP4Y,?;M1TEO\"DE@+HH8.A4,\K@D="B9Z<<,"$'%\0>8T6OG`U[*A M'4#Q[.^]31-P]+@JM.0&M*5">[<^GBF?YQ&UA0+6WY.;AEJ7U)QKB.\*/'GV M$F=.!4RY%122_H(G]H2D*;(;8&QDX?4GV8^[RSLR$QSP3W$\[YJ;W).T]7*CYYOYE.\('B.`QYP MD8=Q,D5# M=D!]"06-Q>69E\>*>2Q-:7XQP%4XW[.!=@9._MPQ<+;JUI;@+ M';JP`%QB=LB>X>29<7_E$W^1;40\O$HRMW^JS^UM#]E%7, M14X*HNQR*U1\4#65-+PZ,%_`VFQNA28Z<6%JB/(B*U/AY_I4*%/8/`KE7#R; M&-9*(JOGN@9?@+U(365YKP'@TSCIZ970<=[-X8LGHB#E+`LCNBK3[G-]VA6D M7D:;E4S,J>V-6L[)1HAS/^`I4L_Z.:BFLNG67-(HV83[`*:?K+WEB0=!I>ZJ M5$KNPBY5CJ+CQ6,$57O*L^?=V_KLR3KPBAZ\A'I%'U[>B&(4^F(;%<`52NZ;,+!Q'=A6DS3A_PI',;G"279^[QL?)O.EG>- MO:;4KU?JN#:-[KN81C(WFZEHFL/1'OUUZCTT94,W[?;IT.;Q:F]\*_['O;7Z M0@Q+8;1Y9:Z_E]F5E:EMTZHL!5T#K$EA:XM69)DA@!$I:6[;AE1@4+,=E?*Z ML$=R!B=)P>%$OQE^:+C^>`=<1(_WP'[1VYY7UJ7!UJ8GZ]3I)_F:UN.GI[-F M(L*T*'#V077APD30Y2E49L''^BPHJ+V,W"O3V[R!%TH$N6#7$%JMUOV09*&! M.Q9+M["0.RIX#Y:W&2!^C8K<9@IR8>Y-$7_HA01(:9M]:MIF!=E>=IDTD*'* MD^X`)6W>;71%]2LPA[B(OWVK;:A\7]22Z943B863=V7[[4%(2LJUY"4\M,9%*.CNM M9+T_Q.C/E*GBC,1>4_6GUPV'1=ME=53>KZXLE*6 MX5[L-2V>'[=^M]4>6C2RTKM3HQH2^0\PV21%_=)@=9HRV?0"I M]8>53:<=SF"0'+;SQL;HVBD%C>0W*9X@J>? MG,+V2\7&>.F$'_Z;A3TUE_C]@8:Y@F^C*!*`F83+E3 M99,*>H?C;U!;!TYO_9%@0ZO&5#.N+)N%"]M@V9116'_&M\6ZJ99^^.OFF1\1 MI@]>''K*%@P$AEE+:/V97F.T@;IP8V*>TPCA!3E)V9@C037`B,RR_PVAWOZB MSSVZM/X$KS'8>^O/C6'P-48W\[,XP2L_43V"46]G_4U<8\#$DKJ!P@E=,04N M$8GQ(\HW#<,[&G@/4.0<\.88R^82IO60,=-+-QBY]?>%S6_=3/3R$J(;[KE+ M0Q+;T$AI[RZV(?_L/WUD0T>3.5BB6?P**6!CX12':8)FF=8AT[MM MAT.KP[FGYEQ8`$I5`U5SN9%]7Z)S83J^J+*#NV&UY3`WQ1/S&:CK87#E"$V5 MX\(D$U2!44VV1I*_L!:,"]-NX$5A=F,I*Y-B/+E$5,,I$0.1WH79(Z\4HYI$ MC:1]=;V8_6;3D`O'[(9!^5N@"9%EQ(/)!U=&QE0SCIS-MUQ?^4D:9<]%5-], M-E_HH#U9"Y-M`W%K*=U9&B656E3K8K-*@ZR"D`L&QHLL);0;<>Z4ZL+$EA9O4$UM@Q(.+LSM%UK+ M06PU-#`TFLO0GH99U:&MQER8J,W2#JH9"BGPX,+4?"F5'K8#J\Y>2=_'S\4? MC6:D88<#JPBQG]Y8*4Y"_OFU=*M M`'N`KNW+JG>I(\B!"G-A"]TW-N04)3X.XVL_XI2/XN*Z'QHE9[J+$BD8\+8< MC`$CW:P#E;&KF..U=KKYVQCZCD1YU,0HI[6X@`*;Z.B"_:B(LO4H/'K"$#":)$/$I"E%R?2R'Z-:9N^4KGRL*`N@ M('$,&=EH$\>CB@3:'8>Z+2^(F7WT&UM<9W1UA58/*!*H.[>G!"UM5]_0CIEJ MZ4"IK,//?=J.M&F`B!]A"ES3JLT=FS6@]:PJ0>E,8?7DE?/TE<1K%#"C%\VT M:YF-Y5L=DUL MUVG3*[7)LTL#?5=?)#YGLIVD<4)7*%(,%H4%%("VS7(P,!H1'X)SLW)SK=;R?7!CXCM@IS MO_J_$V_#(6^=\9AUL>$RN]+D?'J,42_C=.LQ'?VDG8C"-)QG]'(UR[FO-;-M M`1K[1X5B#O\$_`^$%TO^*@!_\6V!KE-^P&>K`I\I\4V:Q`F;3DQ+V=22HVO8 MC6WKTAC]5FH:_N@0)GS*1X&DN6VS=^\R,"\,U0N2('[->_:TYK>U//A?CJFP ML6WCN449)ZG(/1T.=YL%+WZ1W8\G.*_74GLTK@0F@[%N&[8#[NBU8:V%J3#P94*WE-U;N!?7[L*_N%6U)9@ M<$6"-:(/_:&Q2_QGBF3XBLRN?L!'*1]]MZ!-@5%BC=M"VQ\R)L>O3RSKM M+-9+EL@MET>7RPVA=.&>=UBQ7JN]ZQXBN'KW$`XWHXAQM:A"?^P$.^0A3 M!C_(*0:$B%P(-\*Y1/Q=\DTITD5"Z"G=@$DW\`"`5<5R(C3B#CW2\)'?.U_VE&2V'6?0T=A\X4.OC)[<+E<^$XF@B&^7_.V8=9Z[%ZTNJ4^4H7H@ M2MN.+U-$P(+U"LH=\L.SF*_/("3DS6W[M-JH7R=\;\$I60F(S.')N&7GBS+S M2OW#2&U[E=I@8:(4-[P'=SY9(+5A5FKBQA8/LL1*7+L1?9HQI-VPRXW&H*]<6<5/K[X((P"^O&RH!'5DG)#5%CI\K1<+4 M"XE!'VZ,?=A*8R!6R:)V!$S=N4_4U@UPS(>D`KA#)/0<1^@[XK6>_Y.&_$;A M$J_XKP$)/AI*ZV^CR`=4,]4'I(7>C-;$7_ELK$Q1](@#_E2$QE*5MK?^O`E, MYUJ)AQ]N(C+4F06.\Y#/4Z:D=V9NK0:Q[6!"<,BP@2K<,"M$#%_Y3[SFX#&- M(OJ=>WG\-?M+HG@$U:P7V\&!>Z&I4TY/"Z<)*T)_D/1B;^]^;3LQ84DOG2G0 M`8!W'J<.4"UW9MO[V3V4354Y@%_)/=4!@)7>;#M0NT=0H"PWMDX>DW9!XB1* MLPM[9E+3&0Z*(KV;>%3YG@DDM^V%-B^G(P.B\-DN"E#Q>W-RA$&:^09* M#,00`$"4X,.P[2QSL!9ZPN'>)PO\$/),5C8/D^5F6$B4+V\.U;A%_X-:@%[5 M?!0DJ1_6/RZ['I(TMGY!!%.Q6M:^UI.*G7R'9FF`9LJ$(B4%5-6VJU3HI7;C M',#+:1R1K"0J=Q8\^B$3+3Y*3OPH>F8'F=_],%6$)`/)K5\Q@`\"1OH8OO?[ MCH?LDUT*VU$0I*M\XSM%<\R.L*J[/3VM]7L.@T(F4$V8H_XY1YV@!>]N']0E MBRRWU'.O`P\@DB/'&TO:0I&R>%97<._2DEIZZ8B=G0*$9EEI''ZLRC/`%$$. M$%HH4A;/]0;2.(5--\@WI4[ MW_)5G;@8(\+^II[2U?=_[W*S8^(^R'BB51TMSVK;KYJ]E* MN=U8`)NNOP"IRB;)VMN^)-\#'*'DCJ%SC@F.V6KUA=(9!)U:>]MWWGN@(Y3< M#71NDB6*MHQN)_@T7:]#GHQ.9EW9K^U+< M'.M.].C&D-A*H:Q#7&UE^PY\C\DI+CULYAE)*'\9UG+IA*Q8"V.8&2^(=54`&D5N$4'(LIV$[C M&(LIN(:(7(BQF(+%AXAUNV-V0!'J*6;JA3-!`JL2DBUOM9 M[\L!I^4Y>1KYW\D-.0MQ%A]3>ME"HNXV'=GVC)K'Y)JIZ`"QT0J&MJZ(_1`K M=6/;5]HI7@WUN+%)5(/OK_R$5\I]/A5G"`D#]JLTMC?ZEED'(L'=`$ADN6Q" M].\8MZ>,;[+(LR;,CBWR7FS[0??*L]0IQSU88;`-**-'))P;:B\*%<>[W?,: M);GQHW]?1T+E?JH/2`R78.KQ\L9^O(_FSJ;_W-)\JY-N&?(\RRKA,%)ZX"HX M@/E\&Z%U'I=W,S]:L'-6G/P]]B&J]I@N);_SE_.*12F`=TY_RI?N>< M=>@5/7H)]8H^O:Q3QZZ>^1G()*I1UMZ%:\Y!7C>K`1@OFAUS.3M\T3Q6>>RR MRJ/EZ^FQRJ-4M'ZN)>JU]F+3\H)QB_J";I47;(KLABO@-*T:9AC%A_IEKAX^^3A^8KC'A2TO^C&:2U:O8\YC\8R,TN_0=K_2A0YV?)79` M]O7ZVJIYX4Y#X\+);%AG8X!2Q_.QDRM^]3E8U'9`*(C8=^-<6^7L MVE\AW>E63N$&(/)AI02E+$@_)UK`1JX\X!K0VSXWZ495^=1KK!8W;.U=U8Y[ M]BGUZB5JZ\9D`:U>(O;=>`:JRMD)DV5!(_Q7ID3=ZU`06C=`D@\U)5!BD?I9 MVVX(JCU(B("9GZ;Z0%U"H2-C:A?N88=V**=4YWH-RE+U*[G(=VA M=:C*GES/5\=B#N\9%;JEF"3G^!'M"7NWW[#MMC0:`'VHUXTS6LTY4#P\(WTR M2>Q2J%'9AK:M9T0HO!LPE:U@;32PL/%@O,0*48?#Z\E<<+(,R\D%T^OH M[7+2S^*PMVNL&C=6C1NKQK7=(/\3L0G]#9&OOT&>S9*VMNWC@M6+TPCKAG$] M/GDU/GDET%1S-!_PR:LOQ[?*=:'T=VLK@50E37]:MRXZJR318HED:,H54_5?J MU+:/;PU=5Q-O\R$>W%7]6P>);J-':_1HC1ZM?T:/UAB_Y8`G:HS?.EC\UB7U M"2]&W7#/9)%'M7"3LE53"CY1'D^[_(#M(Y=),$_WBG7C*%".Y-_G6073?@9S MK&NGH.'GXBCD#OTXSM[;T^9:&74RF!-B"]6\Y/&PW_(PR&PM$V6\W#`6O7=` MG_WU\5UOKH).CZ\`5UX%C24#V;^9; M)P$-]$AXZ>XULGV_41OE='J-;'U%.%@RBWV/T#]S,LNN_DLA=_941:7].8VF M:@.M"7\L"$,=ZZF<+1;FQ%8`XOR!L3]60[7K1? MO.L:&Q#>]TL4(7^>"%T])FHH=V2[M%V/:#?U-2"P]X08#&QOK\SV".S^-_N4 M?\/ZS;Y>V(U?\H($83I#LXM-O\;.+9^'MK8@FKU):U7)?T9N8Y$=,!Q M\=G=<2'7QLM:54IR0A+4`*1@_]$@P.\P44TTYRV\3/:((I\$J$C+`]58_OBQ M^?98TRRK7^=8$B,F;NQ"/-+S`,)WZQX`PQT*1QH`P%U`8`\+&@+#& MUK4)7%`&>>F(;%_:F`1NP130T^M=URG_R,W\'J]0?$..."N+//HG?#YFQM[4 M#_WH60(#F-KR]3CLO1=#7?2$2'DX9`LH&PH;S@I>^,CRPU#FP:@/*E`OMN^U M81"U5,X!H.(S5WU&%,WU-D=#B[%E6A&DZCY\_!A=K7"2C8(C,CMA8P.315&' M&G2H^]0("-OUZ/EDYE7Z[.R`UY$/0R']5B9`E)=9-Q8-ME+HWR5:^.$4)0Q, MC8]7260[HJL-@C53#J`4%Z9JD4HU6=>?YX!-U!_K$W737Y[75^[0L5DJ>Y9$ M/S'UE"[X$8;ER`&K=O3I..E-Z-VG$Z/@]8(^OIDAS`'XR'_@>O]8TCO[U1_9 M6GO&%FSI*U>L5:/1$#0MXKM+APU4P_GWI2X9UJ3:PK)N16IK*+;*<3^^EJ^$ M)X0=L]T715F"_=&*_1#X2E^+CLC:R;&AM.9A!2:P&V%29W^F3)8KE"SI[((\ MHCBS_FZ^$Q3%2[S>I>_)5W"#+MP_[YO+-`"3MEGM4FKVBJW=GPRL76&52Y59 M/!K#HS$\&L.C,6QEHH_OPX[OPSJVS(WOP[[H]V%EIZ0'_X0R2S-*,)NJ695V M]0%)WMYV+AE,S5J!>U+TB9_X*Y_--Z5Z&ZULI_#`E"H1KB=5'M,HHM\Q6?`2 M,#"]JDELYT7`E`P1VXW3O62+N4VC8)D%VC,!RFV,;1]%3[87>_!9OZV2>II4 M$G;.GM:(Q.@.X=5#&L6Y54RNL)R`WR5`%(S$OB07`2T]F M>W^'P0(5WXV5LL;M=HE7'`<5)+:SN\%KGU;LGN;&41#0E"=U%:'K9,9^$Z5H MMADME9F*D2SBK$4_M@TYV.QIK2`WII.4_4OL/_""XKM'Z.03S*@3VYG8X"G7 M0C4N7"Y,T8)+=T'F-%IE799N%9I_5%XG_-Q,7B2QK'4CR!I.PQ/FU+0OIR; M,\85GN/L",N^)\T)%#5TWSTFX]RE!>,4,;T%N#ANKT.4J8_,CE;\%/17]GOY M*@*C=M]99B2.2_!M\J3NZ5'P9XHC=!M1-I&3Y]O09]8;F?$8U/5*Z2$SZ6,P M#C)SQ;C@'_M*N!^=&74)FK&]+5\P8+EDG^ONL')?'NO,RWOKNYZ/4`1-41\- MC0L'^6&YM`!*'9U:;CM)^G)JC:E@8RK8P%/!CB^^_J8.:RRW<#K)JRE*?W?E MZ2K-[GI/T1P'.)FF#S&>87F)'#6)=:\9]`9<*[8;EOP=M\H(FIWY$>&Q$T?K M-;-8(\Q9E^]V:JK!^'0@PCMKGT].*.N#Q&AV[(>\O,QTB1!_INQK7#A5-)EQ MG]Y";7=>RJ7XEE=\S,N_QJ^WOTZ]W0?[>=9YM.Y'ZWZT[D?KWEU-C];]L*W[ MVXS-(S+;&6HWT=%\CD-N#9S0U=HGZCM'HQY4U_ZBAL.X]I>+V.DK(U9RG#:%C.(+LC5&XJV)PI8!)C`-LM\RV^7_ M44R2WUGS-!(&SFQSB/;J=C#WTIVHKZ=YN;DBUX0-9*:IL*GMS&O8W%2)V6<6 M9Y`;[#O+16H&B!L#M=O;FVP&&9M24=VPH$L['N1M+$ES(!Z]O8769H,'53SO M;(_7;^Z&NWI_;XL9;.LO:S_G\M[,3QC76#$%JJV@:-F_6!))Y^#QL);."4Q4 M-I@WEH.+9?(-_Y0H3;MEU@5D;X'20X&V7PW`3",.3L:LBE0Q4JOI\7(_0)Z3 MHZ6#HFBY;@!8`ST9#^PTQ#2!"?]PO;P7J%R-20=03"R>'4U%LC^U.K)-BO?$ M^)MD_"F1EH\:&W8#'1`6C['M!#N84Z^T]@,\>Y764.5;/N5JI!W\H0`TL/:= M<08W'`.9:A;WQ6*[;K$A;BFA:-A^20^NA;YPJ#TDQ\Q:\,H'I(5BX=B3>DI- M.&CK9^LX<+MJA8_E@[=,/GL;E`0(_F@<)=.$!M^.5MQ7($%"T`X*A>5#E53" MWFYS"ESU2A4WA>K5\L%()>?!DBGD#KM&0ZA:+=^2R65T=1G/\%_2D*DOSI_> M*0=)Z^\B8/10^%PXH)AHQ+D=(9/@M]W6Q>,@&_*H\-330K&T>(5G($T/.+J6 M8+.K6#7?9;H8)-J\:Y-HL_THS[$I)=B,&3=CQLV8<6,!C3'CQBE-CQDW8\;- MF'%C.WL\JX>G?'=NTV(HF3=UF7HZS)_0F)F37RB=Q5-F4,O3,T0-W<^;D7'N M[%E^BL*05^0DLRL_^H9X24*?S+(*`6'Q;H'4M0Z@'$92C8$2>IH67Q!A!YN0 M5[^;K3#!W,[EQ<(V3T=(,-"3N9\7`Y.C5^WG13CYHU&[\Z5$X^*FPTB348GI MQL::Q4[G;,KWUDJCP52[%(CFX'90?P%*.@OJS=Q/"1+SW?.E$'W$,=/`.8WN M_2>I.@7M!I/<(Q:PUX6:5TM6Y?56V@PECT<@V`!J,)5@A'CW$-M`8/<1.:7KT$(\>XM%#W/D3](5U4SH^EQ^RD7DQ MM63#\)!!Q7?#C2!ZCF"6',+LO*=IV;HLB3&<7)(CXF#I% M^7_E^Y:*9C`EA_2"NP,0CY]^]$-N`QTE)WX4/;.#Q.]^F&I`4M$-H)X14)(] M[8QU-@@8-U%B/ZVY'[3_>`_'VWX!7;TLG2!^1NK;GORBJ/@+_]<#6R'8;_X' M4$L#!!0````(`)6$#D=5%F2M,1,``#C4```1`!P`;65N8BTR,#$U,#8S,"YX M=\;66G.-]24$D)*%,`1J0M*WWZU\W>%\0*6M";*3Y ML"L#C49?:#0:!S__]77N6L]4>DSP+WL'[_;W+,IMX3`^_;+W..R=#@=75WO6 M7__RA]];\._S'WL]ZY)1USFQSH7=N^(3\6?KELSIB?65$J03OS_<5)O__R\O*. MBV?R(N23]\X6S=`-12!MFN"ZN;@]^Y_#\\/]@^/]#T?[UL'^K]:OA];YY>V[ MUPEP#\Z^'AR?'AR?-2P1Y_X@9?TN/_Z<7__8!_^-6M^ MPSP[:?SQN[T0/[\^L'].*?\8#/Z77]I#\N'J;GS_Z?^.;X^6]&GV_-5YF9#Y MMU^6[Y]/#Y_.A\NGHU]>R.'5X^-]V.5GSY[1.;%`]]S[LI>1Y\O1.R&G_4.@ ML/_/F^NA@ML+`4]>7<:?JL`//GWZU%>U,6@)\G4LW1CU41^KQ\2C"6:H91IX MQCV?<#L'[_A)@RSP<3^LS(&R2M`/(2B+01U:@/.H_6XJGOM0`?`'[WO[![VC M@Q@\\'I30A9)DPGQQ@IU5(%-CDM-I'"I5]E&U50TXH+S8%XM'<>7?7^YH'T` MZ@$4EQ9PO>UH( M[!1(4-TZ=,(X4[3MA_\.K)X5-\_^)-RQ0EQ6!MGG?A%-!GG@4>>._T7]7DCJ M`1K5Z!H*HH812$TCF[AVX+9KDY)2V20JB,6]G@+.B(O#?#BCU/="B>>+]"(^ M!+FBMZ61C`>".Y0#B?C+$RYSH,ZQ(I16B',G:>^>2&!L1GT&Y%:(/5^OU\'1 M.CJP?LIU\:?MU$DB-N]N[7$Q$K[5>XLU[,5=FW]A)W_R?KID9/`88!CI^7)@'BS2U>\5*@R MK=+KZ[BLKSHM(4I+X=QIX9QZMF0+[*0P;(;!?$[D\FXR9%,.`8I-8+JW;1'` M',VG]R!;F]%(86_&HM?M!XP3(/QWA1=(BG^D_54,NZA/K,GT:J7=6G&_VZGS M:_8]8&#T2]#/#>%DJH;&/4Q$D3IU`'I-_5S45()*:29%9BELVRG_*_X,O`B9 M#)]L@5Z^'XORS33=3F$.J0V2<*`#BK,%_&1^-(M4U>C%^ZDHW@B'I9"HN4.A MV4Y1WPJ?0@R\)&-H(QZHBW,K!*S^,A2XIEXK]H/]HM@5)BM"9?G"BI!9"MMV M2G\8C(5T&$CK*O5R?U^4>X3&4GBL#*+M%/F0@MO%1%+!J11* M]4(^+GN4J/UV>Y.!F,^9K]('*IVDUI"4I\M?'8!>Y*65;095E$+*(-M.\4<> MM;=`CSH">_2(G7$H]=5ZT9>6JC$BY;FM+*;ME/N03M$.2WL_%>5Z29<6K1&& MW3[/(P=N?,ELL+M;ZI]Z7K+?4UVE%W1I^9I%8@$6*T2SG<(.\^\C\IJF7=(" MK6`/2PO4*)>OVFZG--^:\MUL`KE9(OFPM'C=5"+9^BG^M=M'6$N!(PPO-V0, M$2Z]*926SYLSA;#_+36$3$(ZJ]-RL5X]I85V!L&62[@B5925='VU7N*E)79E M/FG+95^?.,JJ8"647A.E=;@^R;3E*JE)*&7UH0?1*Z.\0J_+/&VY'FK7X5E- MK`+2ZZ+%DGW+E5%>H^>GB)I:O?B;K..W7.Z5J_:LZ'4`>NDW7=QON0;>NG@X MISYAKG=+)+9\IIM9DI2P:G5]5,HW;&YQ$E%B):3L[&0MC?;P3H@3N/1NWA5'0BL'E>-(/4JJDVG7.>/$NY&TNKCA=5*:@&O5U4IWZ(_ M?KC3V-I'$FM&VYO1Z/5;2N$T/+*X4WR+%'0OB5]SV<_<[->^F5ZQI7Q0=H,I)YQ6&DPZ MPZ?45,SW$R&ME"1+T;3M7J5F!SSC`RX#$"F]`4KFP5S!06RESJ&#AK/-X^*< M"?U`_'HS*F7"ZK?G\RXGI,>*"(K`X[Z5#>4Q)55;;DG%.R5U";054'JM5B3/ M"C=1=M%A@]LIU;IITT"OIE+B3'M[9:>RE4=EJA76'%ROKE(>3'=\9J>K%;HJ MQ\^U"EJAQC:8]!INU6:^5!K&K_VPQ4K[3FI[=VCE>CH%[R#%ON8;Z[R:.7GE3)#<&WH]$J]KB4 M_ZI3;/8)N<*K?S!"'X?9HS:[L:G36?*:6_8$U?HFT`*=WA1*.;`FII"^69<_ M;;6SB75M(GDQ<",FL0*;WB)*2:[6%I%YJW`;+`+_@P]B/]")I1[2/L'WEK_L M>0Q?3M^+RF:23K[L@8C&O?@QY'\#:^]>YVX,@J@U#VDKDRI*(^HX1D&D7<)2 M>N@;D(@%'A^@7C\F/D;@,Q^;WV>ZP=,_3V"#_4VP[))Q6Y:A"75_(*_7B'^C M3(+UM66R8+`_B-5!VLM&&8:ATY;A_&C[0?R>)YUDV8V>&^^G[XU'?Q??)/\, MC`OI6[STNKGNF?OP@?YK82M4FB;X5R]NU\.BWL%A[^C@W:OGI)2V(2(50SLB MXG9K$%']?G_#[N,&V.]QJQ[KGO>OZ;BR#?[HI8V;]J_]5H"N_\J&?>KZ7ES2 M2U&M0TWYG?_UR5&XUJ"GP2<.FAA'MN5MV!"-Y!,:Y\&'-Q*S'B&KJ(@^E*!B M-?RRPK^S@5.T`$_BJA%]]<]<83_M*;+ST9T.F+DN[B5\V?-E@.X.O[YQ`FZ0 M"6>DO+43A+'6GA5Z[_`3%"=^C.,*`C6$!/:#L0>.,D#HKU($BR][(3H&(#K& M_B'D$^/3:+,)G:R-#YB&C-15KB0\](1^7#4.UYO`$!TC@I";L&XN.(21R_< M_ZAA>@-X3!"'YN))B>6&L&:PQ6E\WO^2V,P%JJ.S!LM[14K*5`/(UBR%$''I M!A@"4FQ<>TR!6%B'+,)-[+O)Z92@B_@U_O9,=('+>Z`V!:-4+PB&C+X)0W,_ M%:D4]+D(.]PP\T,JGYE-!S/\Q`[.!D@L+D=AJ`EF5[+;H$VW#.)QEROH0*HO MZ)P1UQ6"1P<54B^KA5E[)K&CE[9_T%2BCO?F3OWCRS%%U[(2R@2GDGYR!+\' M$N"&./ZA[D%2YX)(#B7)M*UJ M"%;`M%?I1L?AFAQ%<+>!/8NW+@3YASD9#XQD%3,Q@H84R?B M&\']F;N,KQ$O<4EZQ>^EF((_]E)?';/9`KYC3YZ=9[+A_+DD+_R.7[A,.?(T MH/6J9JC&+7\;W"9Z:\EKMEW'G.:FIO0@T\7K`O?7'BB;CP/IJ4;%#V;$#F=] M!,9ZVWA]%IV?A;4XE`"-3L16*8S.^*W6#4UU9IAV.:<+X;%TTBR4&1JDW0;S M,95WDQ&;4^^.GX;S7^1LSR!"'@(=Z:AM#KYNCF)C^4RHTD(I*G8&!UFJ88"J6&>L"1`&$.`HEW`?/+GLH:0[FX M#_?9,1>.^?]%-E574VO9:PIL*K-* M/75J^VVP@%?S!!_Z$-\6PK:*"E.9N)=T0L%NG`H^:NI,9:6<#JQ/%!K,AAH! M2N(SX3I4>ABY^,OR"9SM,G7AXY3*C9IV22H=0,UE168?@,9H1/Z15/GD,M[R^O MA#+6-JO/4K[BNSQG0DKQ$AZ!AAHLMV<`+BL3:)M`9&H8UH:W!TK<"P^O$:XC MF5SK_P9QJ(@&X`*YECSRS4T5"$Q#`7&+I\_2-65-K:%IS8'@>!H@]$>QHAZ8 M]U1[KKY%`Q,V".,#C<6HO*+*$\63PV`C75BQ03M=XMC*M\%EX/8BIC*/_*M^2SFPMU`*8R%>70XWLG>&,A MKYO$.S8`-)7)BKV#%1;YFS!(3#)1>0F.@MM1RC.;?RI7&1N^M_Y\0_EU12B^S9L\N]?-\-(3MG*=KBLG*/.V%LLYI'.!33F3IB@*=%>6=T_H@EL0] M(_P)XF!;^.!Z'3P$0:7-B!M=^O6NV1SP.`7+7Z=EY_R&WT]0GQB-T\%W\G0R M82Z#,3P(#^GE&6W7I',.[SA]Y"CT,TE?J%1?*3A53XP0F)HQXLBSUP*^<]Y& M,R9]2GDK!MLVZIS+Z+-.9RK[G!R$]1^?&)GE66L$:0X_IVYTAE3=+H5("X\5 MG`UJ>%H%W3E?MY@WCHR(P_0O&5[ZRG.S`L90'M+C`DVXJ8#NG*]+(2F;UFFE MMK9SN@="+@1T@7?+[OP9E5XQAJBM[YSVFW&8IV%A7*`6M[BJOQ2!S#^=PN;T MW@V\.`7P0(H^>S.HNI?(634;HYFD]%XP[E^R9]I6-AM&VKF4,N1FTUR%(;L" MJ',N_A9P.GH1HYD(/(B%+USZ3`N+13U(YQQ$V:@;(K\'U"^:76VM$72/Q%<) M(KTG-ILPNTQY37WGM#=(]Q;"HQ8-.N?NAME2#'TBO]%I^MS9Z10<%?XH^+6& MP)US58P>ZJ*E!G"=\_)X=O7X+4]VOJAS"K^>W>?IRQ880%V1.'-H.UU(YHY> MH&QYRW(S3[PDSM/>`KYSWL+%_#?&IX"R8+^55=U37%Z^&[9.K[QS'STX-)*$ MX44`,`_W.7P\H>CMUFUM)-_1(;&UN&[0UDB>U?L*#92:`^N>$^K@W8V_!9)Y M#E.OTQ1XT`!T3GTA*?F+V!XMNT7"G/($^6/WR(2U?J] ML#+-+D@SZ]3"_LXF,78NGQ(7>6;KJSNG?#BCBQF5SBT%2J_]`N&UM9W379?X MUPZO,E3G?`R(3^8$EK'Q[MH5+ZQTM1#&T;^2?#.IKZ'9'$HOF?3\(7OUEW'\ M?H:7P=WBU+X"JG,^+E[!@F$@KF2E"6#GW!12VMI\MSE4PP0JY$B`+^1..653 M6]LYW8]C4LR.%=R]!J!SZAMN61=8:MVJ$54)WS<3J!H+-F MC-34=4YS6/9P@Y8%AF/NI[.L9;_';Z^'\C6!+] MBGE:]Z4Z?+^#3S>QG*K_8DB1PT:@QC'8^L![D>TW(#!.&'7/RI=4O1+..-:* M7KRDQMIZXUBI_&)JD9\50,8Q=>I&CZ[9$#.<*P^=3&&559U[_\HOGA35L`+( M2#7@`L``00E#@``!#D!``!02P$"'@,4```` M"`"5A`Y'0>1(&ZP4``#E$0$`%0`8```````!````I(&[M0``;65N8BTR,#$U M,#8S,%]C86PN>&UL550%``-:4`Q0` M```(`)6$#D<64_B$[%P``%L8!0`5`!@```````$```"D@37I``!M96YB+3(P M,34P-C,P7VQA8BYX;6Q55`4``UI1SE5U>`L``00E#@``!#D!``!02P$"'@,4 M````"`"5A`Y'B<77I'LR``!/7`,`%0`8```````!````I(%P1@$`;65N8BTR M,#$U,#8S,%]P&UL550%``-:4'-D550%``-:4 XML 57 R34.htm IDEA: XBRL DOCUMENT v3.2.0.727
    Secured Lines of Credit (Details Narrative) - All Currencies Domain - USD ($)
    1 Months Ended 6 Months Ended
    Apr. 26, 2005
    Jun. 30, 2011
    Jun. 30, 2015
    Dec. 31, 2014
    Inventories     $ 1,683,000 $ 2,117,900
    MB Financial Bank [Member]        
    Percentage of line of credit drawn on receivables, maximum   85.00%    
    Percentage of line of credit drawn on inventory, maximum   60.00%    
    Facility expiration date   Jun. 30, 2016    
    Facility interest rate above prime lending rate     3.00%  
    Line of credit, outstanding amount     $ 814,000  
    Account receivables     1,198,400  
    Inventories     1,609,300  
    RBS [Member]        
    Facility interest rate above prime lending rate 1.38%      
    Line of credit, outstanding amount     1,273,500  
    Account receivables     $ 2,294,200  
    Initial term of facility 1 year      
    Percentage of prepayment against qualified accounts receivable 80.00%      
    Percentage of service charge on each invoice discounted 0.10%      
    XML 58 R51.htm IDEA: XBRL DOCUMENT v3.2.0.727
    Unrestricted Net Assets - Condensed Statement of Operations of US Operations (Details) - MBC and Releta [Member] - USD ($)
    3 Months Ended 6 Months Ended
    Jun. 30, 2015
    Jun. 30, 2014
    Jun. 30, 2015
    Jun. 30, 2014
    Net sales $ 3,166,500 $ 3,244,600 $ 5,540,200 $ 5,979,500
    Cost of goods sold (2,471,300) (2,699,900) (4,593,900) (5,058,300)
    Selling, marketing, and retail expenses (322,300) (341,100) (675,700) (706,400)
    General and administrative expenses (380,600) (424,800) (860,700) (928,200)
    Loss from operations (7,700) (221,200) (590,100) (713,400)
    Other income 40,500 8,800 43,600 10,700
    Interest expense $ (124,500) $ (130,900) (247,500) $ (256,600)
    Provision for taxes     (3,800)  
    Net loss $ (91,700) $ (343,300) $ (797,800) $ (959,300)
    XML 59 R21.htm IDEA: XBRL DOCUMENT v3.2.0.727
    Description of Operations and Summary of Significant Accounting Policies (Policies)
    6 Months Ended
    Jun. 30, 2015
    Accounting Policies [Abstract]  
    Description of Operations

    Description of Operations

     

    Mendocino Brewing Company, Inc. (the “Company” or “MBC”) was formed in 1983 in California, and has two operating subsidiaries: Releta Brewing Company, LLC (“Releta”), and United Breweries International (UK) Limited (“UBIUK”). In the United States (the “US”), MBC and Releta operate two breweries that produce beer and malt beverages for the specialty “craft” segment of the beer market. The breweries are located in Ukiah, California and Saratoga Springs, New York. The majority of sales for MBC in the US are in California. The Company brews several brands, of which Red Tail Ale is the flagship brand. In addition, the Company performs contract brewing for several other brands. Generally, product shipments are made directly from the breweries to the wholesalers or distributors in accordance with state and local laws.

     

    MBC’s United Kingdom (the “UK”) subsidiary, UBIUK, is a holding company for Kingfisher Beer Europe Limited (“KBEL”). KBEL is a distributor of alcoholic beverages, mainly Kingfisher Lager Beer, in the UK and Europe. The offices of KBEL are located in Maidstone, Kent in the UK. In addition, during the period covered by this quarterly report (the “Quarterly Report”), through UBIUK, the Company had production and distribution rights to Kingfisher Premium Lager in Canada and the United States. The Company has the right to use the Kingfisher mark and the name “Kingfisher Brewing Company” in connection with the brewing and distribution of assorted beers in the United States pursuant to an agreement with Kingfisher America, Inc. Generally, sales are made through distributors.

     

    All of the Company’s beers sold in Europe (except for beers sold in Germany) are procured under a contract with Heineken UK Limited (“HUK”). This contract expires in October 2018. KBEL is the distributor of Kingfisher Premium Lager to specialty restaurant trade distributors, liquor and convenience stores in the United Kingdom, Ireland, and continental Europe, but does not physically distribute the Company’s products to customers. KBEL relies on HUK for distribution of the product in Europe in exchange for a fee paid to HUK, except for in Germany where beers are manufactured and distributed pursuant to a separate contract with a different entity. In addition, HUK has the exclusive right to sell Kingfisher Premium Lager, for a royalty fee payable to KBEL, to certain large retail customers, including, but not limited to, Sainsbury’s, Asda, and Tesco.

    Subsequent Events

    Subsequent Events

     

    The Company evaluates events that occur subsequent to the balance sheet date of periodic reports, but before financial statements are issued for periods ending on such balance sheet dates, for possible adjustment to such financial statements or other disclosure. This evaluation generally occurs through the date on which the Company’s financial statements are electronically prepared for filing with the Securities and Exchange Commission (“SEC”).

    Principles of Consolidation

    Principles of Consolidation

     

    The consolidated financial statements present the accounts of MBC and its wholly-owned subsidiaries, Releta and UBIUK. All material intracompany and inter-company balances, profits and transactions have been eliminated.

    Basis of Presentation and Organization

    Basis of Presentation and Organization

     

    The accompanying unaudited condensed consolidated financial statements for the six months ended June 30, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the US. These condensed financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s most recent Annual Report on Form 10-K, as filed with the SEC, which contains additional financial and operating information and information concerning significant accounting policies followed by the Company. The financial statements and notes are representations of the Company’s management (“Management”) and its board of directors (the “Board of Directors”), who are responsible for their integrity and objectivity.

     

    Operating results from the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or any future period.

    Reclassifications

    Reclassifications

     

    Certain items in the financial statements for the prior year have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income or equity.

    Cash and Cash Equivalents, Short and Long-Term Investments

    Cash and Cash Equivalents, Short and Long-Term Investments

     

    For purposes of cash flows, the Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents.

    Revenue Recognition

    Revenue Recognition

     

    The Company recognizes revenue from the brewing and distribution operations in accordance with Accounting Standards Codification 605 of the Financial Accounting Standards Board. The Company recognizes revenue from product sales, net of discounts.

     

    The Company recognizes revenue only when all of the following criteria have been met:

     

      Persuasive evidence of an arrangement exists;

     

      Delivery has occurred or services have been rendered;

     

      The fee for the arrangement is fixed or determinable; and

     

      Collectability is reasonably assured.

     

    “Persuasive Evidence of an Arrangement” – The Company documents all terms of an arrangement in a written contract or purchase order signed by the customer prior to recognizing revenue.

     

    “Delivery Has Occurred or Services Have Been Performed” – The Company delivers the products prior to recognizing revenue or performs services as per contractual terms. Product is considered delivered upon delivery to a customer’s designated location and services are considered performed upon completion of the Company’s contractual obligations.

     

    “The Fee for the Arrangement is Fixed or Determinable” – Prior to recognizing revenue, an amount is either fixed or determinable under the terms of the written contract. The price is negotiated at the outset of the arrangement and is not subject to refund or adjustment during the initial term of the arrangement. 

     

    “Collectability is Reasonably Assured” – The Company determines that collectability is reasonably assured prior to recognizing revenue. Collectability is assessed on a customer-by-customer basis based on criteria outlined by Management. The Company does not enter into arrangements unless collectability is reasonably assured at the outset. Existing customers are subject to ongoing credit evaluations based on payment history and other factors. If it is determined during the arrangement that collectability is not reasonably assured, revenue is recognized on a cash basis.

     

    The Company records certain consideration paid to customers for services or placement fees as a reduction in revenue rather than as an expense. The Company reports these items on the income statement as a reduction in revenue and as a corresponding reduction in marketing and selling expenses.

     

    Revenues from the Company’s brewpub and gift store are recognized when sales have been completed.

    Allowance for Doubtful Accounts

    Allowance for Doubtful Accounts

     

    The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Management considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic and industry trends and changes in customer payment terms. Balances over 90 days past due and other higher risk amounts are reviewed individually for collectability. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. Based on Management’s assessment, the Company provides for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances that remain outstanding after the Company has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.

    Inventories

    Inventories

     

    Inventories are stated at the lower of average cost, which approximates the first-in, first-out method, or market (net realizable value). The Company regularly reviews its inventories for the presence of obsolete product attributed to age, seasonality and quality. Inventories that are considered obsolete are written off or adjusted to carrying value.

    Deferred Financing Costs

    Deferred Financing Costs

     

    Costs relating to obtaining financing are capitalized and amortized over the term of the related debt. When a loan is paid in full, any unamortized financing costs are removed from the related accounts and charged to operations. Deferred financing costs related to a borrowing made in June 2011 were $225,000. Amortization of deferred financing costs charged to operations was $22,500 for the six months ended June 30, 2015 and 2014.

    Concentration of Credit Risks

    Concentration of Credit Risks

     

    Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, and accounts receivable. Substantially all of the Company’s cash and cash equivalents are deposited with commercial banks in the US and the UK that have minimal credit risk. Accounts receivable are generally unsecured and customers are subject to an initial credit review and ongoing monitoring. Wholesale distributors account for substantially all accounts receivable; therefore, this risk concentration is limited due to the number of distributors and the laws regulating the financial affairs of distributors of alcoholic beverages. The Company has approximately $1,600 in cash deposits and $2,294,200 of accounts receivable due from customers located in the UK as of June 30, 2015.

    Income Taxes

    Income Taxes

     

    The Company accounts for income taxes in accordance with ASC 750 which requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards. The Company periodically assesses uncertain tax positions that the Company has taken or expects to take on a tax return, including a decision whether to file or not to file a return in a particular jurisdiction. The Company evaluated its tax positions and determined that there were no uncertain tax benefits as of June 30, 2015 and December 31, 2014.

    Basic and Diluted Earnings (Loss) per Share

    Basic and Diluted Earnings (Loss) per Share

     

    The basic earnings (loss) per share is computed by dividing the earnings (loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period. Basic net earnings (loss) per share exclude the dilutive effect of stock options or warrants and convertible notes. If the Company’s operations result in net loss for any period, diluted net loss per share would be the same as basic net loss per share, since the effect of any potentially dilutive securities would be anti-dilutive. Therefore, the conversion of the related party convertible notes (see “Subordinated Convertible Notes Payable” below) has been excluded from the Company’s calculation of net loss per share. The computations of basic and dilutive net loss per share are as follows:

     

        Three months ended     Six months ended  
        6/30/2015     6/30/2014     6/30/2015     6/30/2014  
    Net loss   $ (85,700 )     (137,000 )   $ (759,600 )     (605,600 )
    Weighted average common shares outstanding     12,611,133       12,611,133       12,611,133       12,611,133  
    Basic net loss per share   $ (0.01 )     (0.01 )   $ (0.06 )     (0.05 )
    Interest expense on convertible notes   $ -       -     $ -       -  
    Loss for computing diluted net income per share   $ (85,700 )     (137,000 )   $ (759,600 )     (605,600 )
    Incremental shares from assumed exercise of dilutive securities     -       -       -       -  
    Dilutive potential common shares     12,611,133       12,611,133       12,611,133       12,611,133  
    Diluted net loss per share   $ (0.01 )     (0.01 )   $ (0.06 )     (0.05 )

    Foreign Currency Translation

    Foreign Currency Translation

     

    The Company has subsidiaries located in the UK, where the local currency, the UK Pound Sterling, is the functional currency. Financial statements of these subsidiaries are translated into US dollars using period-end exchange rates for assets and liabilities and average exchange rates during the period for revenues and expenses. Cumulative translation adjustments associated with net assets or liabilities are reported in non-owner changes in equity. Any exchange rate gains or losses related to foreign currency transactions are recognized in the income statement as incurred, in the same financial statement caption as the underlying transaction, and are not material for any year shown. Cash flows were translated at the average exchange rates for the six months then ended. Changes in cash resulting from the translations are presented as a separate item in the statements of cash flows.

    Use of Estimates

    Use of Estimates

     

    The preparation of financial statements in conformity with accounting principles generally accepted in the US includes having the Company make estimates and assumptions affecting the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. The amounts estimated could differ from actual results. Significant estimates include the allowance for bad debts, depreciation and amortization periods, and the future utilization of deferred tax assets.

    Comprehensive Income (Loss)

    Comprehensive Income (Loss)

     

    Comprehensive income (loss) is composed of the Company’s net loss and changes in equity from non-stockholder sources. The accumulated balances of these non-stockholder sources are reflected as a separate item in the equity section of the balance sheet.

    Reportable Segments

    Reportable Segments

     

    The Company manages its operations through two business segments: (i) brewing operations and tasting room operations in the US and distributor operations in Canada (the “North American Territory”) and (ii) distributor operations in Europe, including the UK (the “Foreign Territory”). The Company evaluates performance based on net operating profit. Where applicable, portions of the administrative function expenses are allocated between the operating segments. The operating segments do not share manufacturing or distribution facilities. In the event any materials and/or services are provided to one operating segment by the other, the transaction is valued according to the Company’s transfer policy, which approximates market price. The costs of operating the manufacturing plants are captured discretely within each segment. The Company’s property, plant and equipment, inventory, and accounts receivable are captured and reported discretely within each operating segment.

    XML 60 R26.htm IDEA: XBRL DOCUMENT v3.2.0.727
    Capital Lease Obligations (Tables)
    6 Months Ended
    Jun. 30, 2015
    Capital Lease Obligations [Abstract]  
    Schedule of Future Minimum Lease Payments for Capital Lease Payments

    The future minimum lease payments required under the capital lease and the present value of the net minimum lease payments as of June 30, 2015 are as follows:

      

    Six months Ending December 31, 2015   $ 14,200  
    Year Ending December 31, 2016     28,500  
    Year Ending December 31, 2017     28,500  
    Year Ending December 31, 2018     22,100  
    Year Ending December 31, 2019     22,100  
    Year Ending December 31, 2020     11,000  
          126,400  
    Less amounts representing interest     (12,900 )
    Present value of minimum lease payments     113,500  
    Less current maturities     (25,300 )
    Non-current leases payable   $ 88,200  

    XML 61 R49.htm IDEA: XBRL DOCUMENT v3.2.0.727
    Unrestricted Net Assets (Details Narrative) - UBIUK [Member]
    Jun. 30, 2015
    USD ($)
    Undistributed losses of UBIUK $ 700,300
    Minimum Retained Earning required for distributions and other payments to MBC from KBEL $ 1,572,700
    XML 62 R41.htm IDEA: XBRL DOCUMENT v3.2.0.727
    Long-Term Debt - Related Party - Schedule of Related Party Debt (Details) (Parenthetical) - Loan from Heineken UK Limited Notes With 5% Prime Plus Interest Rate [Member] - USD ($)
    6 Months Ended 12 Months Ended
    Jun. 30, 2015
    Dec. 31, 2014
    Loans payable in quarterly installments $ 137,900 $ 137,900
    Interest rate above Prime Rate 5.00% 5.00%
    Debt instrument maturity date Oct. 09, 2016 Oct. 09, 2016
    XML 63 R5.htm IDEA: XBRL DOCUMENT v3.2.0.727
    Consolidated Statements of Cash Flows (Unaudited) - USD ($)
    6 Months Ended
    Jun. 30, 2015
    Jun. 30, 2014
    CASH FLOWS FROM OPERATING ACTIVITIES    
    Net Loss $ (759,600) $ (605,600)
    Adjustments to reconcile net loss to net cash provided by operating activities:    
    Depreciation and amortization 581,400 552,600
    Provision for doubtful accounts (2,000) (7,200)
    Interest accrued on related party debt $ 78,200 60,000
    Profit on sale of assets   (16,300)
    Changes in operating assets and liablities:    
    Accounts receivable $ 957,000 (282,600)
    Inventories 435,700 228,500
    Prepaid expenses (109,900) (443,000)
    Deposits and other assets (37,700) 45,900
    Accounts payable (797,500) (515,500)
    Accrued liabilities 81,700 611,900
    Net cash used in operating activities 427,300 (371,300)
    CASH FLOWS FROM INVESTING ACTIVITIES    
    Purchases of property and equipment $ (339,700) (244,700)
    Proceeds from sale of assets   16,300
    Net cash used in investing activities $ (339,700) (228,400)
    CASH FLOWS FROM FINANCING ACTIVITIES:    
    Net borrowing repayment on lines of credit (88,000) (102,000)
    Borrowing on note payable 500,000 1,000,000
    Repayment on long-term debt (521,400) (545,600)
    Payments on obligations under long term leases (2,700) (2,600)
    Net cash provided by financing activities (112,100) 349,800
    EFFECT OF EXCHANGE RATE CHANGES ON CASH 900 (18,000)
    NET CHANGE IN CASH (23,600) (267,900)
    CASH, beginning of period 145,100 324,800
    CASH, end of period 121,500 $ 56,900
    Cash paid during the period for:    
    Income taxes 3,800  
    Interest 230,900 $ 291,000
    NON CASH INVESTING AND FINANCING ACTIVITIES    
    Seller financed asset $ 98,500  
    XML 64 R10.htm IDEA: XBRL DOCUMENT v3.2.0.727
    Notes Payable to Related Party
    6 Months Ended
    Jun. 30, 2015
    Debt Disclosure [Abstract]  
    Notes Payable to Related Party

    5. Notes Payable to Related Party

     

    Notes payable to related party consist of notes payable to Catamaran dated January 22, 2014, April 24, 2014 and February 5, 2015, for a total value of $1,571,800 including interest of $71,800. On June 30, 2015 another note was issued for a value of $500,000 but the proceeds were received by the Company on July 6, 2015. The Catamaran Holding, Ltd. (“Holding”), the sole shareholder of Catamaran, has directors in common with Inversiones, one of the major shareholders of MBC. The indirect beneficial owner of Inversiones is UBHL. Dr. Vijay Mallya, the Chairman of the Board of Directors of the Company is also the Chairman of the Board of Directors of UBHL. The Company has asked Catamaran whether any relationships exist between the shareholders of Holdings and any affiliates of the Company, and has not received a response to such inquiries. 

     

    The notes are payable within six months following the date of the notes, subject to the receipt by the Company of an equity investment by the Company’s majority shareholder in an amount sufficient either (a) to pay the notes from an equity investment by the Company’s majority shareholder, or (b) to pay the notes and certain existing obligations of the Company to Lender. If the Company is not able to satisfy its obligations on the notes within the six month period following the date of the notes, the notes are automatically extended for additional six month terms until they are paid.

    XML 65 R27.htm IDEA: XBRL DOCUMENT v3.2.0.727
    Related-Party Transactions (Tables)
    6 Months Ended
    Jun. 30, 2015
    Related Party Transactions [Abstract]  
    Schedule of Related-Party Transactions

    The following table reflects the value of such transactions during the six months ended June 30, 2015 and 2014 and the balances outstanding as of June 30, 2015 and December 31, 2014.

     

    TRANSACTIONS   June 30, 2015     June 30, 2014  
    Purchases from HUK   $ 5,530,600     $ 6,523,700  
    Expense reimbursement including interest to HUK   $ 464,600     $ 548,100  
    Interest expense related to UBA convertible notes   $ 45,100     $ 45,100  
    Interest expenses related to Catamaran notes   $ 33,100     $ 14,800  
    Borrowing from Catamaran   $ 500,000     $ 1,000,000  

     

    ACCOUNT BALANCES   June 30, 2015     Dec 31, 2014  
    Accounts payable and accrued liability to HUK   $ 1,369,600     $ 1,802,300  
    Notes payable to Catamaran   $ 1,571,800     $ 1,038,700  
    Notes payable to UBA   $ 3,634,000     $ 3,588,900  

    XML 66 FilingSummary.xml IDEA: XBRL DOCUMENT 3.2.0.727 html 79 263 1 false 28 0 false 7 false false R1.htm 00000001 - Document - Document and Entity Information Sheet http://mendobrew.com/role/DocumentAndEntityInformation Document and Entity Information Cover 1 false false R2.htm 00000002 - Statement - Condensed Consolidated Balance Sheets Sheet http://mendobrew.com/role/BalanceSheets Condensed Consolidated Balance Sheets Statements 2 false false R3.htm 00000003 - Statement - Condensed Consolidated Balance Sheets (Parenthetical) Sheet http://mendobrew.com/role/BalanceSheetsParenthetical Condensed Consolidated Balance Sheets (Parenthetical) Statements 3 false false R4.htm 00000004 - Statement - Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) Sheet http://mendobrew.com/role/StatementsOfOperationsAndComprehensiveIncomeLoss Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) Statements 4 false false R5.htm 00000005 - Statement - Consolidated Statements of Cash Flows (Unaudited) Sheet http://mendobrew.com/role/StatementsOfCashFlows Consolidated Statements of Cash Flows (Unaudited) Statements 5 false false R6.htm 00000006 - Disclosure - Description of Operations and Summary of Significant Accounting Policies Sheet http://mendobrew.com/role/DescriptionOfOperationsAndSummaryOfSignificantAccountingPolicies Description of Operations and Summary of Significant Accounting Policies Notes 6 false false R7.htm 00000007 - Disclosure - Liquidity and Management Plans Sheet http://mendobrew.com/role/LiquidityAndManagementPlans Liquidity and Management Plans Notes 7 false false R8.htm 00000008 - Disclosure - Inventories Sheet http://mendobrew.com/role/Inventories Inventories Notes 8 false false R9.htm 00000009 - Disclosure - Secured Lines of Credit Sheet http://mendobrew.com/role/SecuredLinesOfCredit Secured Lines of Credit Notes 9 false false R10.htm 00000010 - Disclosure - Notes Payable to Related Party Notes http://mendobrew.com/role/NotesPayableToRelatedParty Notes Payable to Related Party Notes 10 false false R11.htm 00000011 - Disclosure - Subordinated Convertible Notes Payable To Related Party Notes http://mendobrew.com/role/SubordinatedConvertibleNotesPayableToRelatedParty Subordinated Convertible Notes Payable To Related Party Notes 11 false false R12.htm 00000012 - Disclosure - Secured Notes Payable Notes http://mendobrew.com/role/SecuredNotesPayable Secured Notes Payable Notes 12 false false R13.htm 00000013 - Disclosure - Long-Term Debt - Related Party Sheet http://mendobrew.com/role/Long-termDebt-RelatedParty Long-Term Debt - Related Party Notes 13 false false R14.htm 00000014 - Disclosure - Capital Lease Obligations Sheet http://mendobrew.com/role/CapitalLeaseObligations Capital Lease Obligations Notes 14 false false R15.htm 00000015 - Disclosure - Severance Payable Sheet http://mendobrew.com/role/SeverancePayable Severance Payable Notes 15 false false R16.htm 00000016 - Disclosure - Commitments and Contingencies Sheet http://mendobrew.com/role/CommitmentsAndContingencies Commitments and Contingencies Notes 16 false false R17.htm 00000017 - Disclosure - Related-Party Transactions Sheet http://mendobrew.com/role/Related-partyTransactions Related-Party Transactions Notes 17 false false R18.htm 00000018 - Disclosure - Segment Information Sheet http://mendobrew.com/role/SegmentInformation Segment Information Notes 18 false false R19.htm 00000019 - Disclosure - Unrestricted Net Assets Sheet http://mendobrew.com/role/UnrestrictedNetAssets Unrestricted Net Assets Notes 19 false false R20.htm 00000020 - Disclosure - Income Taxes Sheet http://mendobrew.com/role/IncomeTaxes Income Taxes Notes 20 false false R21.htm 00000021 - Disclosure - Description of Operations and Summary of Significant Accounting Policies (Policies) Sheet http://mendobrew.com/role/DescriptionOfOperationsAndSummaryOfSignificantAccountingPoliciesPolicies Description of Operations and Summary of Significant Accounting Policies (Policies) Policies http://mendobrew.com/role/DescriptionOfOperationsAndSummaryOfSignificantAccountingPolicies 21 false false R22.htm 00000022 - Disclosure - Description of Operations and Summary of Significant Accounting Policies (Tables) Sheet http://mendobrew.com/role/DescriptionOfOperationsAndSummaryOfSignificantAccountingPoliciesTables Description of Operations and Summary of Significant Accounting Policies (Tables) Tables http://mendobrew.com/role/DescriptionOfOperationsAndSummaryOfSignificantAccountingPolicies 22 false false R23.htm 00000023 - Disclosure - Inventories (Tables) Sheet http://mendobrew.com/role/InventoriesTables Inventories (Tables) Tables http://mendobrew.com/role/Inventories 23 false false R24.htm 00000024 - Disclosure - Secured Notes Payable (Tables) Notes http://mendobrew.com/role/SecuredNotesPayableTables Secured Notes Payable (Tables) Tables http://mendobrew.com/role/SecuredNotesPayable 24 false false R25.htm 00000025 - Disclosure - Long-Term Debt - Related Party (Tables) Sheet http://mendobrew.com/role/Long-termDebt-RelatedPartyTables Long-Term Debt - Related Party (Tables) Tables http://mendobrew.com/role/Long-termDebt-RelatedParty 25 false false R26.htm 00000026 - Disclosure - Capital Lease Obligations (Tables) Sheet http://mendobrew.com/role/CapitalLeaseObligationsTables Capital Lease Obligations (Tables) Tables http://mendobrew.com/role/CapitalLeaseObligations 26 false false R27.htm 00000027 - Disclosure - Related-Party Transactions (Tables) Sheet http://mendobrew.com/role/Related-partyTransactionsTables Related-Party Transactions (Tables) Tables http://mendobrew.com/role/Related-partyTransactions 27 false false R28.htm 00000028 - Disclosure - Segment Information (Tables) Sheet http://mendobrew.com/role/SegmentInformationTables Segment Information (Tables) Tables http://mendobrew.com/role/SegmentInformation 28 false false R29.htm 00000029 - Disclosure - Unrestricted Net Assets (Tables) Sheet http://mendobrew.com/role/UnrestrictedNetAssetsTables Unrestricted Net Assets (Tables) Tables http://mendobrew.com/role/UnrestrictedNetAssets 29 false false R30.htm 00000030 - Disclosure - Description of Operations and Summary of Significant Accounting Policies (Details Narrative) Sheet http://mendobrew.com/role/DescriptionOfOperationsAndSummaryOfSignificantAccountingPoliciesDetailsNarrative Description of Operations and Summary of Significant Accounting Policies (Details Narrative) Details http://mendobrew.com/role/DescriptionOfOperationsAndSummaryOfSignificantAccountingPoliciesTables 30 false false R31.htm 00000031 - Disclosure - Description of Operations and Summary of Significant Accounting Policies - Schedule of Basic and Dilutive Net Loss Per Share (Details) Sheet http://mendobrew.com/role/DescriptionOfOperationsAndSummaryOfSignificantAccountingPolicies-ScheduleOfBasicAndDilutiveNetLossPerShareDetails Description of Operations and Summary of Significant Accounting Policies - Schedule of Basic and Dilutive Net Loss Per Share (Details) Details 31 false false R32.htm 00000032 - Disclosure - Liquidity and Management Plans (Details Narrative) Sheet http://mendobrew.com/role/LiquidityAndManagementPlansDetailsNarrative Liquidity and Management Plans (Details Narrative) Details http://mendobrew.com/role/LiquidityAndManagementPlans 32 false false R33.htm 00000033 - Disclosure - Inventories - Schedule of Inventories (Details) Sheet http://mendobrew.com/role/Inventories-ScheduleOfInventoriesDetails Inventories - Schedule of Inventories (Details) Details 33 false false R34.htm 00000034 - Disclosure - Secured Lines of Credit (Details Narrative) Sheet http://mendobrew.com/role/SecuredLinesOfCreditDetailsNarrative Secured Lines of Credit (Details Narrative) Details http://mendobrew.com/role/SecuredLinesOfCredit 34 false false R35.htm 00000035 - Disclosure - Notes Payable to Related Party (Details Narrative) Notes http://mendobrew.com/role/NotesPayableToRelatedPartyDetailsNarrative Notes Payable to Related Party (Details Narrative) Details http://mendobrew.com/role/NotesPayableToRelatedParty 35 false false R36.htm 00000036 - Disclosure - Subordinated Convertible Notes Payable to Related Party (Details Narrative) Notes http://mendobrew.com/role/SubordinatedConvertibleNotesPayableToRelatedPartyDetailsNarrative Subordinated Convertible Notes Payable to Related Party (Details Narrative) Details 36 false false R37.htm 00000037 - Disclosure - Secured Notes Payable - Summary of Long-Term Debt (Details) Notes http://mendobrew.com/role/SecuredNotesPayable-SummaryOfLong-termDebtDetails Secured Notes Payable - Summary of Long-Term Debt (Details) Details 37 false false R38.htm 00000038 - Disclosure - Secured Notes Payable - Summary of Long-Term Debt (Details) (Parenthetical) Notes http://mendobrew.com/role/SecuredNotesPayable-SummaryOfLong-termDebtDetailsParenthetical Secured Notes Payable - Summary of Long-Term Debt (Details) (Parenthetical) Details 38 false false R39.htm 00000039 - Disclosure - Long-Term Debt - Related Party (Details Narrative) Sheet http://mendobrew.com/role/Long-termDebt-RelatedPartyDetailsNarrative Long-Term Debt - Related Party (Details Narrative) Details http://mendobrew.com/role/Long-termDebt-RelatedPartyTables 39 false false R40.htm 00000040 - Disclosure - Long-Term Debt - Related Party - Schedule of Related Party Debt (Details) Sheet http://mendobrew.com/role/Long-termDebt-RelatedParty-ScheduleOfRelatedPartyDebtDetails Long-Term Debt - Related Party - Schedule of Related Party Debt (Details) Details 40 false false R41.htm 00000041 - Disclosure - Long-Term Debt - Related Party - Schedule of Related Party Debt (Details) (Parenthetical) Sheet http://mendobrew.com/role/Long-termDebt-RelatedParty-ScheduleOfRelatedPartyDebtDetailsParenthetical Long-Term Debt - Related Party - Schedule of Related Party Debt (Details) (Parenthetical) Details 41 false false R42.htm 00000042 - Disclosure - Long-Term Debt - Related Party - Summary of Maturities of Long-Term Debt for Succeeding Years (Details) Sheet http://mendobrew.com/role/Long-termDebt-RelatedParty-SummaryOfMaturitiesOfLong-termDebtForSucceedingYearsDetails Long-Term Debt - Related Party - Summary of Maturities of Long-Term Debt for Succeeding Years (Details) Details 42 false false R43.htm 00000043 - Disclosure - Capital Lease Obligations - Schedule of Future Minimum Lease Payments for Capital Lease Payments (Details) Sheet http://mendobrew.com/role/CapitalLeaseObligations-ScheduleOfFutureMinimumLeasePaymentsForCapitalLeasePaymentsDetails Capital Lease Obligations - Schedule of Future Minimum Lease Payments for Capital Lease Payments (Details) Details 43 false false R44.htm 00000044 - Disclosure - Severance Payable (Details Narrative) Sheet http://mendobrew.com/role/SeverancePayableDetailsNarrative Severance Payable (Details Narrative) Details http://mendobrew.com/role/SeverancePayable 44 false false R45.htm 00000045 - Disclosure - Commitments and Contingencies (Details Narrative) Sheet http://mendobrew.com/role/CommitmentsAndContingenciesDetailsNarrative Commitments and Contingencies (Details Narrative) Details http://mendobrew.com/role/CommitmentsAndContingencies 45 false false R46.htm 00000046 - Disclosure - Related-Party Transactions (Details Narrative) Sheet http://mendobrew.com/role/Related-partyTransactionsDetailsNarrative Related-Party Transactions (Details Narrative) Details http://mendobrew.com/role/Related-partyTransactionsTables 46 false false R47.htm 00000047 - Disclosure - Related-Party Transactions - Schedule of Related-Party Transactions (Details) Sheet http://mendobrew.com/role/Related-partyTransactions-ScheduleOfRelated-partyTransactionsDetails Related-Party Transactions - Schedule of Related-Party Transactions (Details) Details 47 false false R48.htm 00000048 - Disclosure - Segment Information - Schedule of Segment Information (Details) Sheet http://mendobrew.com/role/SegmentInformation-ScheduleOfSegmentInformationDetails Segment Information - Schedule of Segment Information (Details) Details 48 false false R49.htm 00000049 - Disclosure - Unrestricted Net Assets (Details Narrative) Sheet http://mendobrew.com/role/UnrestrictedNetAssetsDetailsNarrative Unrestricted Net Assets (Details Narrative) Details http://mendobrew.com/role/UnrestrictedNetAssetsTables 49 false false R50.htm 00000050 - Disclosure - Unrestricted Net Assets - Condensed Balance Sheets of US Operations (Details) Sheet http://mendobrew.com/role/UnrestrictedNetAssets-CondensedBalanceSheetsOfUsOperationsDetails Unrestricted Net Assets - Condensed Balance Sheets of US Operations (Details) Details 50 false false R51.htm 00000051 - Disclosure - Unrestricted Net Assets - Condensed Statement of Operations of US Operations (Details) Sheet http://mendobrew.com/role/UnrestrictedNetAssets-CondensedStatementOfOperationsOfUsOperationsDetails Unrestricted Net Assets - Condensed Statement of Operations of US Operations (Details) Details 51 false false R52.htm 00000052 - Disclosure - Unrestricted Net Assets - Condensed Statement of Cash Flows of US Operations (Details) Sheet http://mendobrew.com/role/UnrestrictedNetAssets-CondensedStatementOfCashFlowsOfUsOperationsDetails Unrestricted Net Assets - Condensed Statement of Cash Flows of US Operations (Details) Details 52 false false All Reports Book All Reports In ''Condensed Consolidated Balance Sheets'', column(s) 3, 4 are contained in other reports, so were removed by flow through suppression. In ''Consolidated Statements of Cash Flows (Unaudited)'', column(s) 1, 2 are contained in other reports, so were removed by flow through suppression. menb-20150630.xml menb-20150630_cal.xml menb-20150630_def.xml menb-20150630_lab.xml menb-20150630_pre.xml menb-20150630.xsd true true XML 67 R38.htm IDEA: XBRL DOCUMENT v3.2.0.727
    Secured Notes Payable - Summary of Long-Term Debt (Details) (Parenthetical) - USD ($)
    6 Months Ended 12 Months Ended
    Jun. 30, 2015
    Dec. 31, 2014
    MBFinancialBankNotes With 4% Prime Plus Interest Rate [Member]    
    Loans payable in monthly installments $ 12,300 $ 12,300
    Loans payable, interest rate above prime rate 4.00% 4.00%
    Balloon payment of loans $ 2,202,500 $ 2,202,500
    Debt instrument maturity date Jun. 30, 2016 Jun. 30, 2016
    MBFinancialBankNotes With 3.5% Prime Plus Interest Rate [Member]    
    Loans payable in monthly installments $ 32,300 $ 32,300
    Loans payable, interest rate above prime rate 3.50% 3.50%
    Balloon payment of loans $ 908,700 $ 908,700
    Debt instrument maturity date Jun. 30, 2016 Jun. 30, 2016
    XML 68 R20.htm IDEA: XBRL DOCUMENT v3.2.0.727
    Income Taxes
    6 Months Ended
    Jun. 30, 2015
    Income Tax Disclosure [Abstract]  
    Income Taxes

    15. Income Taxes

     

    In the six months ended June 30, 2015 and 2014, the Company recorded tax expenses related to state franchise taxes only, and did not record income tax expenses due to the availability of deferred tax assets to offset any taxable income in the US (at the federal and state level to the extent applicable) and the UK. The Company has established a full valuation allowance against the Company’s deferred tax assets based on an assessment that the criteria that deferred tax assets will more likely than not be realized has not yet been met. During the six months ended June 30, 2015 and 2014, the Company’s effective tax rates were de minimis.

     

    The Company’s major tax jurisdictions are (i) US (federal), (ii) California (state), (iii) New York (state) and (iv) UK. Tax returns remain open to examination by the applicable governmental authorities for tax years 2011 through 2014. The federal and state taxing authorities may choose to audit tax returns for prior years due to significant tax attribute carryforwards for those prior years. However, such audits will be limited to adjustments to such carryforward tax attributes. The Company is not currently being audited in any tax jurisdiction.