Unrestricted Net Assets (Tables)

9 Months Ended

Sep. 30, 2016

Unrestricted Net Assets

Condensed Balance Sheets

Balance Sheets

	September 30, 2016			December 31, 2015
	(unaudited)
Balance Sheets
Assets
Cash and cash equivalents	$	84,500		$	61,300
Accounts receivable, net		1,220,200			1,121,300
Inventories		1,408,800			1,490,100
Other current assets		182,700			199,800
Total current assets		2,896,200			2,872,500
Investment in subsidiary		1,225,000			1,225,000
Property and equipment		8,911,100			9,378,500
Intercompany (payable) receivable		(229,400	)		284,000
Other assets		188,300			175,800
Total assets	$	12,991,200		$	13,935,800
Liabilities
Line of credit	$	391,900		$	453,100
Accounts payable		2,664,900			2,640,400
Accrued liabilities		1,357,000			1,021,000
Note payable to related party		2,605,500			2,119,600
Subordinated convertible notes to related party		3,752,000			3,680,100
Current maturities of debt, leases and severance		3,254,800			3,505,900
Total current liabilities		14,026,100			13,420,100
Long-term capital leases		9,600			14,000
Severance payable		629,200			678,400
Total liabilities		14,664,900			14,112,500
Stockholders’ deficit
Common stock		15,100,300			15,100,300
Preferred stock		227,600			227,600
Accumulated deficit		(17,001,600	)		(15,504,600	)
Total stockholders’ deficit		(1,673,700	)		(176,700	)
Total liabilities and stockholders’ deficit	$	12,991,200		$	13,935,800

Condensed Statement of Operations

Statements of Operations	Three months ended September 30						Nine months ended September 30
	2016			2015			2016			2015
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Net sales	$	2,746,700		$	3,247,500		$	8,292,000		$	8,787,700
Cost of goods sold		(2,255,600	)		(2,547,100	)		(6,816,500	)		(7,141,000	)
Sales, marketing, and retail expenses		(300,900	)		(317,800	)		(882,300	)		(993,500	)
General and administrative expenses		(549,600	)		(426,600	)		(1,729,900	)		(1,287,300	)
Loss from operations		(359,400	)		(44,000	)		(1,136,700	)		(634,100	)
Other income		1,400			7,400			13,200			51,000
Interest expense		(133,900	)		(117,500	)		(371,900	)		(365,000	)
Provision for taxes		-			-			(1,600	)		(3,800	)
Net loss	$	(491,900	)	$	(154,100	)	$	(1,497,000	)	$	(951,900	)

Condensed Statement of Cash Flows

Statements of Cash Flows	Nine months ended September 30
	2016			2015
	(unaudited)			(unaudited)
Cash flows from operating activities	$	(417,400	)	$	297,400
Purchase of property and equipment		(6,200	)		(70,400	)
Net repayment on line of credit		(61,200	)		(875,200	)
Borrowing on note payable		400,000			1,000,000
Repayment on long term debt		(401,000	)		(401,000	)
Payment on obligation under capital lease		(4,400	)		(4,100	)
Net change in payable to UBIUK		513,400			83,300
Increase in cash		23,200			30,000
Cash, beginning of period		61,300			61,500
Cash, end of period	$	84,500		$	91,500