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