EX-99.2 4 poci_ex9902.htm UNAUDITED INTERIM FINANCIAL STATEMENTS OF ROSS OPTICAL INDUSTRIES, INC

Exhibit 99.2

ROSS OPTICAL INDUSTRIES, INC.

Financial Statements

(Unaudited)

For the Three Months Ended March 31, 2019 and 2018

ROSS OPTICAL INDUSTRIES, INC.

Balance Sheets

(Unaudited)

		March 31, 2019				December 31, 2018
ASSETS
Current Assets:
Cash and cash equivalents		$	267,422			$	133,746
Accounts receivable, net			499,072				616,211
Inventories, net			615,534				713,208
Prepaid expenses			2,978				–
Total current assets			1,385,006				1,463,165
Property and Equipment, net			130,800				143,437
Other Assets:
Due from related party			2,105,604				2,093,555
Other			2,130				2,130
Total other assets			2,107,734				2,095,685
TOTAL ASSETS		$	3,623,540			$	3,702,287
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Bank line of credit		$	110,000			$	110,000
Current portion of long-term debt			103,261				103,835
Accounts payable			298,090				402,473
Accrued employee compensation			36,508				90,725
Accrued other			78,246				42,043
Total current liabilities			626,105				749,076
Long Term Debt, net of current portion			326,560				352,722
Stockholders’ Equity:
Common stock, $.01 par value, 10,000,000 shares authorized, 5,112,102 shares issued and 977,776 outstanding			12,010				12,010
Additional paid-in capital			1,154,555				1,154,555
Retained earnings			1,704,230				1,633,844
			2,870,795				2,800,409
Less: Treasury stock, 4,134,326 shares, at cost			(199,920	)			(199,920	)
Total stockholders’ equity			2,670,875				2,600,489
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	3,623,540			$	3,702,287

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ROSS OPTICAL INDUSTRIES, INC.

Income Statements

(Unaudited)

For the Three Months Ended March 31,

		2019				2018
Revenues		$	1,026,984			$	1,006,981
Cost of goods sold			565,658				526,404
Gross profit			461,326				480,577
Selling, general and administrative expenses			362,876				323,676
Net income from operations			98,450				156,901
Other income (expense)			(1,102	)			(2,018	)
Net income before income taxes			97,348				154,883
Income tax expense			22,365				32,525
NET INCOME		$	74,983			$	122,358

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ROSS OPTICAL INDUSTRIES, INC.

Statements of Stockholders’ Equity

(Unaudited)

For the Three Months Ended March 31, 2019 and 2018

		Number of Shares				Common Stock				Additional Paid In Capital				Retained Earnings				Treasury Stock				Total Stockholders’ Equity
Balance, January 1, 2018			977,776			$	12,010			$	1,154,555			$	1,224,301			$	(199,920	)		$	2,190,946
Net income			–				–				–				122,358								122,358
Balance, March 31, 2018			977,776				12,010				1,154,555				1,346,659				(199,920	)			2,313,304

		Number of Shares				Common Stock				Additional Paid In Capital				Retained Earnings				Treasury Stock				Total Stockholders’ Equity
Balance, January 1, 2019			977,776			$	12,010			$	1,154,555			$	1,633,844			$	(199,920	)		$	2,600,489
Net income			–				–				–				74,983								74,983
Balance, March 31, 2019			977,776				12,010				1,154,555				1,704,230				(199,920	)			2,675,472

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ROSS OPTICAL INDUSTRIES, INC.

Statements of Cash Flows

(Unaudited)

For the Three Months Ended March 31,

		2019				2018
Cash Flows from Operating Activities:
Net income		$	74,983			$	122,358
Adjustments to reconcile net income to net cash provided by operating activities-
Depreciation and amortization			17,001				15,661
Changes in operating assets and liabilities-
Accounts receivable, net			117,139				29,368
Inventories, net			97,674				150,378
Prepaid expenses			(2,978	)			–
Accounts payable			(104,383	)			(161,097	)
Accrued other			(22,611	)			(31,614	)
Net cash provided by operating activities			176,825				125,054
Cash Flows from Investing Activities:
Loan advances to related party			(12,049	)			(26,837	)
Purchases of property and equipment			(4,364	)			(370	)
Net cash used in investing activities			(16,413	)			(27,207	)
Cash Flows from Financing Activities:
Repayment of long term debt			(26,736	)			(14,691	)
Advances on bank line of credit			–				(20,000	)
Net cash used in financing activities			(26,736	)			(34,691	)
Net increase in cash and cash equivalents			133,676				63,156
Cash and cash equivalents, beginning of period			133,746				213,694
Cash and cash equivalents, end of period		$	267,422			$	276,850
Supplemental disclosure of cash flow information:
Interest paid during the period		$	1,550			$	2,484
Income taxes paid during the period		$	751			$	100,000

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