Unrestricted Net Assets (Tables)

9 Months Ended

Sep. 30, 2015

Unrestricted Net Assets

Condensed Balance Sheets

Balance Sheets

	September 30, 2015			December 31, 2014
	(unaudited)
Assets
Cash and cash equivalents	$	91,500		$	61,500
Accounts receivable, net		1,170,200			1,365,000
Inventories		1,700,300			2,047,700
Other current assets		238,400			173,600
Total current assets		3,200,400			3,647,800
Investment in subsidiary		1,225,000			1,225,000
Property and equipment		9,503,500			9,904,500
Intercompany receivable		338,600			421,900
Other assets		265,400			310,400
Total assets	$	14,532,900		$	15,509,600
Liabilities
Line of credit	$	317,700		$	1,192,900
Accounts payable		2,650,300			2,620,000
Accrued liabilities		1,131,700			1,031,300
Note payable related party		2,095,400			1,038,700
Subordinated convertible notes payable		3,657,000			-
Current maturities of debt, leases and severance		3,631,900			3,918,900
Total current liabilities		13,484,000			9,801,800
Long-term capital leases		8,000			12,100
Subordinated convertible notes payable		-			3,588,900
Severance payable		646,100			760,100
Total liabilities		14,138,100			14,162,900
Stockholders’ equity
Common stock		15,100,300			15,100,300
Preferred stock		227,600			227,600
Accumulated deficit		(14,933,100	)		(13,981,200	)
Total stockholders’ equity		394,800			1,346,700
Total liabilities and stockholders’ equity	$	14,532,900		$	15,509,600

Condensed Statement of Operations

Statements of Operations	Three months ended September 30,						Nine months ended September 30,
	2015			2014			2015			2014
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Net sales	$	3,247,500		$	3,584,500		$	8,787,700		$	9,564,000
Cost of goods sold		(2,547,100	)		(2,879,200	)		(7,141,000	)		(7,937,500	)
Sales, marketing, and retail expenses		(317,800	)		(365,500	)		(993,500	)		(1,071,900	)
General and administrative expenses		(426,600	)		(412,900	)		(1,287,300	)		(1,341,100	)
Loss from operations		(44,000	)		(73,100	)		(634,100	)		(786,500	)
Other income		7,400			22,100			51,000			32,800
Interest expense		(117,500	)		(131,600	)		(365,000	)		(388,200	)
Provision for taxes		-			—			(3,800	)		—
Net loss	$	(154,100	)	$	(182,600	)	$	(951,900	)	$	(1,141,900	)

Condensed Statement of Cash Flows

Statements of Cash Flows	Nine months ended September 30 ,
	2015			2014
	(unaudited)			(unaudited)
Cash flows from operating activities	$	297,400		$	(518,900	)
Purchase of property and equipment		(70,400	)		(105,300	)
Proceeds from sale of asset		-			700
Net repayment on line of credit		(875,200	)		(205,900	)
Borrowing on note payable		1,000,000			1,000,000
Repayment on long term debt		(401,000	)		(401,000	)
Payment on obligation under capital lease		(4,100	)		(3,700	)
Net change in payable to UBIUK		83,300			165,600
Increase (decrease) in cash		30,000			(68,500	)
Cash, beginning of period		61,500			113,700
Cash, end of period	$	91,500		$	45,200