Unrestricted Net Assets (Tables)

12 Months Ended

Dec. 31, 2015

Unrestricted Net Assets

Condensed Balance Sheets

	2015			2014
Balance Sheets
Assets
Cash and cash equivalents	$	61,300		$	61,500
Accounts receivable, net		1,121,300			1,365,000
Inventories		1,490,100			2,047,700
Other current assets		199,800			173,600
Total current assets		2,872,500			3,647,800
Investment in subsidiary		1,225,000			1,225,000
Property and equipment		9,378,500			9,904,500
Intercompany receivable		284,000			421,900
Other assets		175,800			310,400
Total assets	$	13,935,800		$	15,509,600
Liabilities
Line of credit	$	453,100		$	1,192,900
Accounts payable		2,640,400			2,620,000
Accrued liabilities		1,021,000			1,031,300
Note payable to related party		2,119,600			1,038,700
Subordinated convertible notes to related party		3,680,100			-
Current maturities of debt, leases and severance		3,505,900			3,918,900
Total current liabilities		13,420,100			9,801,800
Long-term capital leases		14,000			12,100
Subordinated convertible notes to related party		-			3,588,900
Severance payable		678,400			760,100
Total liabilities		14,112,500			14,162,900
Stockholders’ equity
Common stock		15,100,300			15,100,300
Preferred stock		227,600			227,600
Accumulated deficit		(15,504,600	)		(13,981,200	)
Total stockholders’ equity		(176,700	)		1,346,700
Total liabilities and stockholders’ equity	$	13,935,800		$	15,509,600

Condensed Statement of Operations

	2015			2014
Statement of Operations
Net sales	$	11,364,100		$	12,253,800
Cost of goods sold		9,422,700			10,249,000
Selling, marketing, and retail expenses		1,320,900			1,433,700
General and administrative expenses		1,771,400			2,538,100
Loss from operations		(1,150,900	)		(1,967,000	)
Other income and (expense)
Interest expenses		(481,600	)		(518,500	)
Profit (Loss) on disposal of assets		-			3,500
Other income		112,900			46,800
Provision for taxes		(3,800	)		-
		(372,500	)		(468,200	)
Net loss	$	(1,523,400	)	$	(2,435,200	)

Condensed Statement of Cash Flows

	2015			2014
Statements of Cash Flows
Cash flows from operating activities	$	258,000		$	(380,900	)
Cash flow from investing activities
Purchase of property and equipment		(115,600	)		(105,300	)
Proceeds from sale of equipment		-			3,500
Net cash flows from investing		(115,600	)		(101,800	)
Cash flow from financing activities
Net repayments on line of credit		(739,800	)		(324,300	)
Borrowing on note payable		1,000,000			1,000,000
Repayment of long-term debt		(534,700	)		(534,700	)
Payment on obligations under capital leases		(6,000	)		(5,300	)
Net change in intercompany payable		137,900			294,800
Net cash flows from financing activities		(142,600	)		430,500
Cash, beginning of year		61,500			113,700
Cash, end of year	$	61,300		$	61,500