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Exhibit 1 Operating Statements for the Years Ending December 31, 2011 through 2013,

and for the first quarter 2014 ($000s)

Fi rst Quarter
2011 2012 2013 2014

Net sales $1,697 $2,013 $2,694 $718


Cost of goods sold
Beginning inventory 183 239 326 418 183
Purchases 1278 1,524 2,042 660 1252.44
1,461 1,763 2,368 1078 1435.44
Ending inventory 239 326 418 556 239
Total cost of goods sold 1222 1,437 1,950 522 1196.44
Gross profit 475 576 744 196
Operating expenseb 425 515 658 175
Interest expense 13 20 33 10
Net income before income taxes 37 41 53 11
Provision for income taxes 6 7 9 2
Net income $31 $34 $44 $9

In the first quarter of 2013 sales were $698,000 and net income was $7,000.
a

b
Operating expenses include a cash salary for Mr. Gilbert of $75,000 in 2011, $85,000 in
2012, $95,000 in 2013, and $22,000 in the first quarter of 2014. Mr. Gilbert also received
some of the perquisites commonly taken by owners of privately held businesses.
239 326 418
1493.52 2001.16 646.8
1732.52 2327.16 1064.8
326 418 556
1406.52 1909.16 508.8
Exhibit 2 Balance Sheets at December 31, 2011-2013, and March 31, 2014
($000s)

First Quarter
2011 2012 2013 2014
Assets

Cash $58 $48 $41 $31


Accounts receivable, net 171 222 317 345
Inventory 239 326 418 556
Total current assets $468 $596 $776 $932
Property, net 126 140 157 162
Total assets $594 $736 $933 $1,094

Liabilities and Net Worth

Note payable-bank $- 146 233 247


Notes payable-Mr. Jones 105 - - -
Notes payable–trade - - - 157
Accounts payable 124 192 256 243
Accrued expenses 24 30 39 36
Long- term debt—current portion 7 7 7 7
Total current liabilities 260 375 535 690
Long- term debt 64 57 50 47
Total liabilities 324 432 585 737
Net worth 270 304 348 357
Total liabilities and net worth 594 736 933 1094
Exhibit 1 Operating Statements for the Years Ending December 31, 2011 through 2013, and for the first quarter
2014 ($000s)

2010 2011 2012 2013 2014 Q1 2014 (Est)


(Annualized)

Net sales $1,103 $1,697 $2,013 $2,694 $718 $2,872


Cost of goods sold:
Beginning inventory 183 239 326 418
Purchases 1278 1,524 2,042 660
1,461 1,763 2,368 1078 4312
Ending inventory 239 326 418 556
Cost of goods sold 1222 1,437 1,950 522
Gross profit 475 576 744 196
Operating expenseb 425 515 658 175
EBIT 50 61 86 21
Interest expense 13 20 33 10
Net income before income taxes 37 41 53 11
Provision for income taxes 6 7 9 2
Net income $31 $34 $44 $9

a
In the first quarter of 2013 sales were $698,000 and net income was $7,000.
bOperating expenses include a cash salary for Mr. Gilbert of $75,000 in 2011, $85,000 in 2012, $95,000 in 2013, and $22,000 in the first
quarter of 2014. Mr. Gilbert also received some of the perquisites commonly taken by owners of privately held businesses. also received
some of the perquisites commonly taken by owners of privately held businesses.
Exhibit 2 Balance Sheets at December 31, 2011-2013, and March 31, 2014 ($000s)
Ratios

2011 2012 2013 2014 Q1

Assets Profitability Ratios


Cash $58 $48 $41 $31 Sales Growth
Accounts receivable, net 171 222 317 345 EBIT Margin
Inventory 239 326 418 556 ROE
Total current assets 468 596 776 932 ROA
Property, net 126 140 157 162
Total assets 594 736 933 1094 Leverage Ratios
Liabilities / Equity
Liabilities and Net Worth Liabilities / Assets
Interest Coverage
Note payable-bank 0 146 233 247 Current Ratio
Notes payable-Mr. Jones 105 0 0 0
Notes payable–trade 0 0 0 157 Operating Ratios
Accounts payable 124 192 256 243 Days of Inv.
Accrued expenses 24 30 39 36 Collection Period
Long- term debt—current portion 7 7 7 7 Payable Period
Total current liabilities 260 375 535 690 Cash Cycle
Long- term debt 64 57 50 47 Financing Need
Total liabilities 324 432 585 737
Net worth 270 304 348 357
Total liabilities and net worth 594 736 933 1094
2014 (Est)
2011 2012 2013 (Annualized)

53.9% 18.6% 33.8% 6.6%


2.9% 3.0% 3.2% 2.9%
11.5% 11.2% 12.6% 2.5%
5.2% 4.6% 4.7% 0.8%

1.20 1.42 1.68 2.06


0.55 0.59 0.63 0.67
3.85 3.05 2.61 2.10
1.80 1.59 1.45 1.35

71.39 82.80 78.24 388.77


36.78 40.25 42.95 43.25
36.53 48.10 47.26 41.90
71.6 75.0 73.9 390.1
0.0 0.0 0.0 0.0
Assumptions Financial Statements

Income Statement Income Statement 2011 2012

Sales Growth (2014+) 30% Net sales $1,697 $2,013


COGS/Sales 72% Cost of goods sold 1222 1437
Oper Exp/Sales 25% Gross profit 475 576
Purchase Discount 2% Operating expenseb 425 515
Interest Rate on Borrowing 10.5%/11% Interest expense 13 20
Tax Rate 20% / dynamic Net income before income taxes (EB 37 41
Provision for income taxes 6 7
Balance Sheet Net income $31 $34
Cash grows with Sales
A/R / Sales 12% Balance Sheet 2011 2012
Inventory/Sales 16% Cash $58 $48
Purchases/Sales 75% Accounts receivable, net 171 222
PP&E grows with Sales Inventory 239 326
Accrued Exp./Sales 1.5% Total current assets 468 596
Payables Period (days) 55 Property, net 126 140
Payable Period (with Discount) 10 Total assets 594 736

Liabilities and Net Worth


Note payable-bank 0 146
Notes payable-Mr. Jones 105 0
Notes payable–trade 0 0
Accounts payable 124 192
Accrued expenses 24 30
Long- term debt—current portion 7 7
Total current liabilities 260 375
Long- term debt 64 57
Total liabilities 324 432
Net worth 270 304
Total liabilities and net worth 594 736

Ratios
Current Ratio 1.80 1.59
Interest Coverage 3.85 3.05
Liabilities / Equity 1.20 1.42
Liabilities / Asset 0.55 0.59
ROE (start of the year) - 13%

2011 2012
Assumptions/Ratios to Sales COGS/Sales 72.0% 71.4%
Oper Exp/Sales 25.0% 25.6%
Tax rate 16.2% 17.1%
End Inv/Sales 14.1% 16.2%
AR/Sales 10.1% 11.0%
Purchases/Sales 75.3% 75.7%
Acc Exp/Sales 1.4% 1.5%
Interest expense 1% 1%
Pro-forma Statements (w/o discount) Pro-forma Statements (with discount)

2013 2014Q1 Average 2014 2015 2016 2017 2014

$2,694 $718 100% $3,600 $4,680 $6,084 $7,909 $3,600


1950 522 72% $2,589 $3,365 $4,374 $5,687 $1,198
744 196 $1,011 $1,315 $1,710 $2,222 $2,402
658 175 25% $901 $1,170 $1,521 $1,977 $900
33 10 11% $396 $515 $669 $870 $396
53 11 $121 $158 $205 $267 $1,106
9 2 20% $24 $32 $41 $53 $221
$44 $9 $97 $126 $164 $213 $885

2013 2014Q1
$41 $31 30% 1,080 1,404 1,825 2,373 1,080
317 345 12% 432 562 730 949 432
418 556 16% 576 749 973 1,265 564
776 932 2,088 2,714 3,529 4,587 1,512
157 162 30% 1,080 1,404 1,825 2,373 1,080
933 1094 3,168 4,118 5,354 6,960 2,592

233 247 15% 536 697 907 1,178 536


0 0 5.9% 212 276 359 467 212
0 157 0% 0 0 0 0 0
256 243 25% 893 1,161 1,509 1,961 893
39 36 1.5% 54 70 91 119 54
7 7 1% 36 47 61 79 36
535 690 1,732 2,251 2,926 3,804 1,732
50 47 8% 288 374 487 633 288
585 737 2,020 2,625 3,413 4,437 2,020
348 357 41% 1,490 1,938 2,519 3,274 1,490
933 1094 3,510 4,563 5,932 7,711 3,510

1.45
2.61
1.68
0.63
14%

2013 Avg
72.4% 71.9% 72%
24.4% 25.0% 25%
17.0% 16.8% 20%
15.5% 15.3% 16% conservative
11.8% 11.0% 12% conservative
75.8% 75.6% 75%
1.4% 1.5% 2%
1% 3%
atements (with discount) Pro-forma Statements (with Discount & 19% Growth)

2015 2016 2017 2014 2015 2016 2017

$4,680 $6,084 $7,909


$1,408 $1,911 $512
$3,272 $4,173 $7,398
$1,170 $1,521 $1,977
$515 $669 $870
$1,587 $1,983 $4,550
$317 $397 $910
$1,270 $1,586 $3,640

1,404 1,825 2,373


562 730 949
734 954 1,240
1,966 2,555 3,322
1,404 1,825 2,373
3,370 4,380 5,695

697 907 1,178


276 359 467
0 0 0
1,161 1,509 1,961
70 91 119
47 61 79
2,251 2,926 3,804
374 487 633
2,625 3,413 4,437
1,938 2,519 3,274
4,563 5,932 7,711
Exhibit 2 Balance Sheets at December 31, 2011-2013, and March 31, 2014
($000s) Sources and Uses

First Quarter 2011


2011 2012 2013 2014
Assets
Cash $58 $48 $41 $31
Accounts receivable, net 171 222 317 345
Inventory 239 326 418 556
Property, net 126 140 157 162
Total assets $594 $736 $933 $1,094

Liabilities and Net Worth


Note payable-bank $- 146 233 247
Notes payable-Mr. Stark 105 - - -
Notes payable–trade - - - 157
Accounts payable 124 192 256 243
Accrued expenses 24 30 39 36
Long- term debt—current portion 7 7 7 7
Long- term debt 64 57 50 47
Net worth 270 304 348 357
Total liabilities and net worth 594 736 933 1094

Total
Sources and Uses

2014 Use Source Comments