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<SEC-DOCUMENT>0001354488-08-001577.txt : 20080911
<SEC-HEADER>0001354488-08-001577.hdr.sgml : 20080911
<ACCEPTANCE-DATETIME>20080911101215
ACCESSION NUMBER:		0001354488-08-001577
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20080911
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20080911
DATE AS OF CHANGE:		20080911

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COFFEE HOLDING CO INC
		CENTRAL INDEX KEY:			0001007019
		STANDARD INDUSTRIAL CLASSIFICATION:	BEVERAGES [2080]
		IRS NUMBER:				113860760
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32491
		FILM NUMBER:		081066445

	BUSINESS ADDRESS:	
		STREET 1:		4401 FIRST AVENUE
		STREET 2:		STE 1507
		CITY:			BROOKLYN
		STATE:			NY
		ZIP:			11232
		BUSINESS PHONE:		7188320800

	MAIL ADDRESS:	
		STREET 1:		4401 FIRST AVENUE
		STREET 2:		STE 1507
		CITY:			BROOKLYN
		STATE:			NY
		ZIP:			11232

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TRANSPACIFIC INTERNATIONAL GROUP CORP
		DATE OF NAME CHANGE:	19960201
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>coffee8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>8-K</TITLE>
<META NAME="date" CONTENT="09/10/2008">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="margin-top:0px; margin-bottom:2.2px; padding-bottom:4px; border-bottom:4px solid #000000" align=right>&nbsp;</P>
<P style="margin:0px; padding-top:4px; border-top:1.333px solid #000000" align=right>&nbsp;</P>
<P style="line-height:18pt; margin:0px; font-size:16pt" align=center><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0px" align=center><B>Washington, D.C. 20549</B></P>
<P style="line-height:12.5pt; margin-top:3.533px; margin-bottom:3.533px; font-size:10.5pt" align=center><B><SUP>______________</SUP></B></P>
<P style="line-height:18pt; margin-top:21.333px; margin-bottom:0px; font-size:16pt" align=center><B>FORM 8-K</B></P>
<P style="line-height:12.5pt; margin-top:3.533px; margin-bottom:3.533px; font-size:10.5pt" align=center><B><SUP>______________</SUP></B></P>
<P style="margin-top:17.8px; margin-bottom:0px" align=center><B>CURRENT REPORT</B></P>
<P style="margin-top:17.8px; margin-bottom:0px" align=center><B>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B></P>
<P style="margin-top:17.8px; margin-bottom:0px" align=center><B>Date of Report (Date of earliest event reported): &nbsp;September 11, 2008</B></P>
<P style="line-height:12.5pt; margin-top:3.533px; margin-bottom:3.533px; font-size:10.5pt" align=center><B><SUP>______________</SUP></B></P>
<P style="line-height:20pt; margin-top:16px; margin-bottom:0px; font-family:Times New Roman Bold; font-size:18pt" align=center><B>COFFEE HOLDING CO., INC. </B></P>
<P style="line-height:10pt; margin:0px; font-size:8pt" align=center>(Exact name of registrant as specified in its charter)</P>
<P style="line-height:12.5pt; margin-top:3.533px; margin-bottom:3.533px; font-size:10.5pt" align=center><B><SUP>______________</SUP></B></P>
<P style="margin:3.533px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=227.267></TD><TD width=226.933></TD><TD width=227.4></TD></TR>
<TR><TD valign=top width=227.267><P style="margin:0px" align=center><B>Nevada</B></P>
</TD><TD valign=top width=226.933><P style="margin:0px" align=center><B>001-32491</B></P>
</TD><TD valign=top width=227.4><P style="margin:0px" align=center><B>11-2238111</B></P>
</TD></TR>
<TR><TD valign=top width=227.267><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>(State or Other Jurisdiction</P>
</TD><TD valign=top width=226.933><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>(Commission</P>
</TD><TD valign=top width=227.4><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>(I.R.S. Employer</P>
</TD></TR>
<TR><TD valign=top width=227.267><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>of Incorporation)</P>
</TD><TD valign=top width=226.933><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>File Number)</P>
</TD><TD valign=top width=227.4><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>Identification No.)</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:normal; margin:0px" align=center><B>4401 First Avenue, Brooklyn, New York</B><FONT style="font-size:8pt"><B> </FONT>11232-0005<BR>
</B><FONT style="font-size:8pt">(Address of Principal Executive Office) (Zip Code)</FONT></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:normal; margin:0px" align=center><B>(718) 832-0800</B><FONT style="font-size:8pt"> <BR>
(Registrant&#146;s telephone number, including area code)</FONT></P>
<P style="margin-top:17.8px; margin-bottom:0px" align=center><B>N/A</B></P>
<P style="line-height:10pt; margin:0px; font-size:8pt" align=center>(Former name or former address, if changed since last report)</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:8.867px; margin-bottom:0px">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>
<P style="margin-top:8.867px; margin-bottom:0px; font-family:Wingdings">&#168;<FONT style="font-family:Times New Roman"> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>
<P style="margin-top:8.867px; margin-bottom:0px; font-family:Wingdings">&#168;<FONT style="font-family:Times New Roman"> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>
<P style="margin-top:8.867px; margin-bottom:0px; font-family:Wingdings">&#168;<FONT style="font-family:Times New Roman"> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></P>
<P style="margin-top:8.867px; margin-bottom:0px; font-family:Wingdings">&#168;<FONT style="font-family:Times New Roman"> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:2.2px; padding-bottom:4px; border-bottom:1.333px solid #000000">&nbsp;</P>
<P style="margin:0px; padding-top:4px; border-top:4px solid #000000">&nbsp;</P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; text-indent:-96px; page-break-before:always"><B>Item 2.02</B></P>
<P style="margin:0px; padding-left:96px"><B>Results of Operations and Financial Condition.</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>On September 11, 2008, Coffee Holding Co., Inc. issued a press release disclosing certain information regarding its results of operations for the three and nine months ended July 31, 2008. &nbsp;A copy of the press release is attached as exhibit 99.1.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; text-indent:-96px" align=justify><B>Item 9.01</B></P>
<P style="margin:0px; padding-left:96px" align=justify><B>Financial Statements and Exhibits.</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px" align=justify>(d)</P>
<P style="margin:0px; padding-left:48px; text-indent:48px" align=justify>The following exhibit is furnished with this report:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:48px" align=justify><U>Exhibit No.</U></P>
<P style="margin:0px; padding-left:48px; text-indent:192px" align=justify><U>Description</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:48px; color:#0000FF" align=justify><A HREF="ex991.htm"><U>99.1</U></A><FONT style="color:#000000"></FONT></P>
<P style="margin:0px; padding-left:48px; text-indent:192px" align=justify>Coffee Holding Co., Inc. press release dated September 11, 2008</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; padding-left:48px; text-indent:-48px; page-break-before:always" align=center><B>SIGNATURES</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; text-indent:48px">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=174></TD><TD width=127.2></TD><TD width=220.8></TD><TD width=174></TD></TR>
<TR><TD valign=top width=174><P>&nbsp;</P></TD><TD valign=top width=127.2><P>&nbsp;</P></TD><TD valign=top width=220.8><P style="margin:0px"><B>COFFEE HOLDING CO., INC.</B></P>
</TD><TD valign=top width=174><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=174><P>&nbsp;</P></TD><TD valign=top width=127.2><P>&nbsp;</P></TD><TD valign=top width=220.8><P>&nbsp;</P></TD><TD valign=top width=174><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=174><P style="margin:0px">Dated: &nbsp;September 11, 2008</P>
</TD><TD valign=top width=127.2><P style="margin:0px" align=right>By: &nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=220.8><P style="line-height:normal; margin:0px">/s/ <FONT style="font-size:6.6pt">ANDREW GORDON</FONT></P>
</TD><TD valign=top width=174><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=174><P>&nbsp;</P></TD><TD valign=top width=127.2><P style="margin:0px" align=right>Name: &nbsp;</P>
</TD><TD valign=top width=220.8><P style="margin:0px">Andrew Gordon </P>
</TD><TD valign=top width=174><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=174><P>&nbsp;</P></TD><TD valign=top width=127.2><P style="margin:0px" align=right>Title: &nbsp;</P>
</TD><TD valign=top width=220.8><P style="margin:0px">President and Chief Executive Officer</P>
</TD><TD valign=top width=174><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=174><P>&nbsp;</P></TD><TD valign=top width=127.2><P>&nbsp;</P></TD><TD valign=top width=220.8><P>&nbsp;</P></TD><TD valign=top width=174><P>&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=center><B>EXHIBIT INDEX</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:48px" align=justify><U>Exhibit No.</U></P>
<P style="margin:0px; padding-left:48px; text-indent:192px" align=justify><U>Description</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:48px; color:#0000FF" align=justify><A HREF="ex991.htm"><U>99.1</U></A><FONT style="color:#000000"></FONT></P>
<P style="margin:0px; padding-left:48px; text-indent:192px" align=justify>Coffee Holding Co., Inc. press release dated September 11, 2008</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>ex991.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>EXHIBIT 99.1</TITLE>
<META NAME="date" CONTENT="09/10/2008">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<A NAME="_Ref3977756"></A><P style="margin:0px" align=right><B>EXHIBIT 99.1</B></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px"><B>FOR IMMEDIATE RELEASE</B></P>
<P style="margin:0px; text-indent:720px"><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></P>
<P style="margin:0px">Contact: &nbsp;Andrew Gordon, President &amp; CEO</P>
<P style="margin:0px">Telephone: &nbsp;(718) 832-0800</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>Coffee Holding Co., Inc. Reports Third Quarter and Nine Month Results</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">BROOKLYN, New York &#150; September 11, 2008. Coffee Holding Co., Inc. (AMEX: JVA) today announced its operating results for the three and nine months ended July 31, 2008. In this release, the Company:</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:72px; text-indent:-24px; font-family:Wingdings">&#159;</P>
<P style="margin:0px; padding-left:72px">Reports net sales of $17,598,572 for the quarter and $50,730,554 for the nine months ended July 31, 2008;</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:72px; text-indent:-24px; font-family:Wingdings">&#159;</P>
<P style="margin:0px; padding-left:72px">Reports sales growth of 26.0% for the quarter and 24.4% for the nine months ended July 31, 2008 compared to the three and nine month periods ended July 31, 2007; and</P>
<P style="margin:0px"><BR></P>
<A NAME="OLE_LINK1"></A><P style="margin-top:0px; margin-bottom:-16px; padding-left:72px; text-indent:-24px; font-family:Wingdings">&#159;</P>
<P style="margin:0px; padding-left:72px">Reports net income of $551,259 for the quarter and a net loss of $1,310,654 for the nine months ended July 31, 2008.</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:49.867px" align=justify>The Company had net income of $551,259, or $0.10 per share (basic and diluted), for the three months ended <A NAME="OLE_LINK7"></A>July 31, 2008 compared to net income of $370,656, or $0.07 per share (basic and diluted), for the three months ended July 31, 2007. &nbsp;The increase in net income primarily reflects increased net sales, which resulted in an increase in gross profit.&nbsp; </P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:49.867px" align=justify>The Company&nbsp;had a net loss of $1,310,654, or $0.24 per share (basic and diluted), for the nine months ended July 31, 2008 compared to net income of $1,019,248, or $0.18 per share (basic and diluted), for the nine months ended July 31, 2007. &nbsp;The net loss reflects increased coffee prices and hedging losses when the price of coffee surged to a ten year high and subsequently collapsed during a 45 day period in February and March of 2008.</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:49.867px">Net sales totaled $17,598,572 for the three months ended July 31, 2008, an increase of $3,633,765, or 26.0%, from $13,964,807 for the three months ended July 31, 2007. Net sales totaled $50,730,554 for the nine months ended July 31, 2008, an increase of $9,936,262, or 24.4%, from $40,794,292 for the nine months ended July 31, 2007. The increase in net sales reflects both increased amounts of green coffee, branded coffee and private label coffee sold as well as increased sales prices compared to the third quarter of fiscal 2007. &nbsp;The increase in net sales also reflects the price increases we implemented in <A NAME="OLE_LINK11"></A>the fourth quarter of fiscal 2007 and the first quarter of fiscal 2008 in response to higher green coffee prices.&nbsp;&nbsp; </P>
<P style="margin:0px; text-indent:49.867px">&#147;Following last quarter&#146;s unacceptable results, we are pleased that this quarter is more representative of the health of our overall business. &nbsp;Although many challenges remain in the overall macro environment in which we operate, we believe that we have taken the necessary steps to achieve the desired results as reflected by our performance in this past quarter,&#148; said President and Chief Executive Officer Andrew Gordon.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:49.867px">&#147;A 26% increase in sales as well as a 48% gain in net income can be attributed to the determined efforts of our management and employees to strengthen our company and increase shareholder value. We will continue to monitor our core business as well as scrutinize the profitability of individual accounts to ensure they meet the criteria designed to achieve similar results going forward and we will not hesitate to make adjustments as we deem needed.&#148;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:49.867px">&#147;With coffee prices having stabilized and the Entenmann&#146;s rollout fully underway, we anticipate further growth in sales and profits in the months ahead,&#148; concluded Mr. Gordon.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><I>About Coffee Holding</I></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px">Coffee Holding is a leading integrated wholesale coffee roaster and dealer in the United States and one of the few coffee companies that offers a broad array of coffee products across the entire spectrum of consumer tastes, preferences and price points. &nbsp;Coffee Holding has been a family operated business for three generations and has remained profitable through varying cycles in the coffee industry and the economy. &nbsp;The Company&#146;s private label and branded coffee products are sold throughout the United States, Canada and abroad to supermarkets, wholesalers, and individually owned and multi unit retail customers.</P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>1</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; text-indent:48px; page-break-before:always"><I>Any statements that are not historical facts contained in this release are &#147;forward-looking statements&#148; within the meaning of the Private Securities Litigation Reform Act of 1995. It is possible that the assumptions made by management for purposes of such statements may not materialize. &nbsp;Actual results may differ materially from those projected or implied in any forward-looking statements. &nbsp;Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, intellectual property rights, the outcome of competitive products, risks in product development, the results of financing efforts, the ability to complete transactions, and other factors discussed from time to time in the Company&#146;s Securities and Exchange Commission filings. &nbsp;The Company undertakes no obligation to update or revise any forward-looki
ng statement for events or circumstances after the date on which such statement is made.</I></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>2</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:10pt; margin:0px; font-size:8pt; page-break-before:always" align=right>&nbsp;&nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>COFFEE HOLDING CO., INC.</B></P>
<P style="margin:0px" align=center><B>CONDENSED CONSOLIDATED BALANCE SHEETS</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=547.4></TD><TD width=7.2></TD><TD width=7.2></TD><TD width=64.8></TD><TD width=7.133></TD><TD width=7.133></TD><TD width=7.2></TD><TD width=64.8></TD><TD width=7.133></TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=72 colspan=2><P style="margin:0px" align=center><B>July 31, 2008</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=72 colspan=2><P style="margin:0px" align=center>October 31, 2007</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=72 colspan=2><P style="margin:0px" align=center><B>(unaudited)</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=72 colspan=2><P style="margin:0px" align=center>(audited)</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=712.867 colspan=8><P style="margin:0px" align=center><B>- ASSETS -</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px"><B>CURRENT ASSETS:</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=72 colspan=2><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=72 colspan=2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px; padding-left:40px; text-indent:-18.667px">Cash</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>$</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>767,783</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">$</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>890,649</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px; padding-left:40px; text-indent:-18.667px">Commodities held at broker</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>986,941</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>3,468,530</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px; padding-left:40px; text-indent:-18.667px">Accounts receivable, net of allowance for doubtful accounts of $127,464 and $136,781 for 2008 and 2007, respectively</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>6,567,245</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>7,130,467</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px; padding-left:40px; text-indent:-18.667px">Inventories</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>4,718,773</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>4,472,097</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px; padding-left:40px; text-indent:-18.667px">Prepaid expenses and other current assets</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>283,393</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>502,240</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px; padding-left:40px; text-indent:-18.667px">Prepaid and refundable taxes</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>322,812</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>236,406</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px; padding-left:40px; text-indent:-18.667px">Deferred income tax asset</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>850,000</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right>279,000</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px">TOTAL CURRENT ASSETS</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>14,496,947</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>16,979,389</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px; padding-left:20px; text-indent:-20px">Property and equipment, at cost, net of accumulated depreciation of $4,878,850 and&nbsp;&nbsp;$4,542,490 for 2008 and 2007, respectively</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>2,901,232</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>2,651,960</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px">Deposits and other assets</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>513,692</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right>765,368</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>TOTAL ASSETS</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.2><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>17,911,871</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.2><P style="margin:0px">$</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.8><P style="margin:0px" align=right>20,396,717</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=712.867 colspan=8><P style="margin:0px" align=center><B>- LIABILITIES AND STOCKHOLDERS' EQUITY -</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px"><B>CURRENT LIABILITIES:</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px; padding-left:26.667px">Accounts payable and accrued expenses</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>$</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>5,958,568</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">$</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>6,791,690</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px; padding-left:26.667px">Line of credit</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>2,328,562</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>897,191</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px; padding-left:26.667px">Income taxes payable</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right>9,161</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px">TOTAL CURRENT LIABILITIES</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>8,287,130</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>7,698,042</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px">Deferred income tax liabilities</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>64,000</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>145,000</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px">Deferred compensation payable</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>414,212</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right>351,332</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px">TOTAL LIABILITIES</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>8,765,342</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right>8,194,374</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px"><B>MINORITY INTEREST</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>-</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px"><B>COMMITMENTS AND CONTINGENCIES</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px"><B>STOCKHOLDERS' EQUITY:</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px; padding-left:40px; text-indent:-18.667px">Preferred stock, par value $.001 per share; 10,000,000 shares authorized; none issued</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>-</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px; padding-left:40px; text-indent:-18.667px">Common stock, par value $.001 per share; 30,000,000 shares authorized, 5,529,830 shares issued; 5,452,716 shares outstanding for 2008 and 5,514,930 shares outstanding in 2007</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>5,530</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>5,530</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px; padding-left:40px; text-indent:-18.667px">Additional paid-in capital</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>7,327,023</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>7,327,023</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px; padding-left:40px; text-indent:-18.667px">Retained earnings</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>2,091,245</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>4,946,467</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px; padding-left:40px; text-indent:-18.667px">Less: Treasury stock, 77,114 and 14,900 common shares, at cost for 2008 and 2007, respectively</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>(277,269</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right>(76,677</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px">TOTAL STOCKHOLDERS&#146; EQUITY</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>9,146,529</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right>12,202,343</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.4><P style="margin:0px"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL LIABILITIES AND STOCKHOLDERS&#146; EQUITY</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.2><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>17,911,871</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.2><P style="margin:0px">$</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.8><P style="margin:0px" align=right>20,396,717</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="line-height:10pt; margin:0px; font-size:8pt">&nbsp;&nbsp;</P>
<P style="margin:0px" align=center>3</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:10pt; margin:0px; font-size:8pt; page-break-before:always" align=right>&nbsp;&nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>COFFEE HOLDING CO., INC.</B></P>
<P style="margin:0px" align=center><B>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</B></P>
<P style="margin:0px" align=center><B>(Unaudited)</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=375.267></TD><TD width=7.2></TD><TD width=7.2></TD><TD width=64.8></TD><TD width=7.133></TD><TD width=7.133></TD><TD width=7.133></TD><TD width=64.733></TD><TD width=7.133></TD><TD width=7.133></TD><TD width=7.133></TD><TD width=64.733></TD><TD width=7.133></TD><TD width=7.133></TD><TD width=7.133></TD><TD width=64.733></TD><TD width=7.133></TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px; font-size:12pt">&nbsp;</P>
</TD><TD valign=bottom width=158.133 colspan=6><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px; font-size:12pt">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px; font-size:12pt">&nbsp;</P>
</TD><TD valign=bottom width=158 colspan=6><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px; font-size:12pt">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=158.133 colspan=6><P style="margin:0px" align=center><B>Nine Months Ended</B></P>
<P style="margin:0px" align=center><B>July 31</B>,</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=158 colspan=6><P style="margin:0px" align=center><B>Three Months Ended</B></P>
<P style="margin:0px" align=center><B>July, 31</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=72 colspan=2><P style="margin:0px" align=center><B>2008</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=71.867 colspan=2><P style="margin:0px" align=center>2007</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=71.867 colspan=2><P style="margin:0px" align=center><B>2008</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=71.867 colspan=2><P style="margin:0px" align=center>2007</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px"><B>NET SALES</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>$</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>50,730,554</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">$</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>40,794,292</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>$</B></P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right><B>17,598,572</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">$</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>13,964,807</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px"><B>COST OF SALES</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>47,927,963</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right>34,581,004</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>15,002,037</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right>12,027,277</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px"><B>GROSS PROFIT</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>2,802,591</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right>6,213,288</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>2,596,535</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right>1,937,530</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px"><B>OPERATING EXPENSES:</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px; padding-left:26.667px">Selling and administrative</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>4,282,961</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>4,270,646</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right><B>1,363,607</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>1,360,846</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px; padding-left:40px; text-indent:-25.333px">Writedown of amount due from dissolved joint venture</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>&#150;</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>242,000</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right><B>&#150;</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right><B>&#150;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px; padding-left:26.667px">Officers&#146; salaries</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>461,076</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right>384,302</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>161,376</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right>149,853</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">TOTALS</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>4,744,037</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right>4,896,948</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>1,524,983</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right>1,510,699</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px"><B>INCOME (LOSS) FROM OPERATIONS</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>(1,941,446</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right>1,316,340</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>1,071,552</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right>426,831</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px"><B>OTHER INCOME (EXPENSE)</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px; padding-left:13.333px">Interest and dividend income</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>49,253</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>102,226</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right><B>5,594</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>35,650</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px; padding-left:13.333px">Equity in loss from dissolved joint venture</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>&#150;</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>(91,340</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right><B>&#150;</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>2,600</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px; padding-left:13.333px">Writedown of investment in dissolved joint venture</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>&#150;</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>(33,000</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right><B>&#150;</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right><B>&#150;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px; padding-left:13.333px">Management fee income</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>&#150;</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>12,026</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right><B>&#150;</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right><B>&#150;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px; padding-left:13.333px">Interest expense</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>(95,740</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right>(87,530</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>(34,307</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right>(31,124</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px"><B>TOTAL OTHER INCOME (EXPENSE)</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>(46,487</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right>(97,618</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>(28,713</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right>7,126</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px"><B>INCOME (LOSS) BEFORE BENEFIT FROM (PROVISION FOR) INCOME TAX EXPENSE AND MINORITY INTEREST IN SUBSIDIARY</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>(1,987,933</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>1,218,722</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right><B>1,042,839</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>433,957</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px; padding-left:13.333px">Benefit from (provision for) income tax expense</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>679,623</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right>(198,493</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>(490,326</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right>(58,443</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px"><B>INCOME (LOSS) BEFORE MINORITY INTEREST</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>(1,308,310</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>1,020,229</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right><B>552,513</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>375,514</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px; padding-left:13.333px">Minority interest in loss of subsidiary</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>(2,344</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right>(981</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>(1,254</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right>(4,858</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px"><B>NET INCOME (LOSS)</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>(1,310,654</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>1,019,248</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right><B>551,259</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>370,656</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">Retained earnings-beginning</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right><B>4,946,467</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>4,009,151</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right><B>1,539,986</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>4,657,743</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">Dividends</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>(1,544,568</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>&#150;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>&#150;</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>&#150;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px"><B>RETAINED EARNINGS - ENDING</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.2><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>2,091,245</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px">$</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.733><P style="margin:0px" align=right>5,028,399</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>2,091,245</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px">$</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.733><P style="margin:0px" align=right>5,028,399</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">Basic&nbsp;&nbsp;and diluted earnings (loss) per share</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px" align=right><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.2><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>(.24</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px">$</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.733><P style="margin:0px" align=right>.18</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>.10</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px">$</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.733><P style="margin:0px" align=right>.07</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px">Weighted average common shares outstanding:</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.8><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.733><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px; padding-left:53.333px">Basic</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>5,485,136</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>5,528,708</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>5,461,242</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>5,528,708</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD></TR>
<TR><TD valign=bottom width=375.267><P style="margin:0px; padding-left:53.333px">Diluted</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.8><P style="margin:0px" align=right><B>5,485,136</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>5,528,708</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>5,461,242</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.733><P style="margin:0px" align=right><B>5,528,708</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="line-height:10pt; margin:0px; font-size:8pt">&nbsp;&nbsp;</P>
<P style="margin:0px" align=center>4</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:10pt; margin:0px; font-size:8pt; page-break-before:always" align=right>&nbsp;&nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>COFFEE HOLDING CO., INC.</B></P>
<P style="margin:0px" align=center><B>CONDENSED STATEMENTS OF CASH FLOWS</B></P>
<P style="margin:0px" align=center><B>&nbsp;(Unaudited)</B></P>
<P style="margin:0px">&nbsp;</P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=547.267></TD><TD width=7.2></TD><TD width=7.133></TD><TD width=64.933></TD><TD width=7.133></TD><TD width=7.133></TD><TD width=7.133></TD><TD width=64.933></TD><TD width=7.133></TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=72.067 colspan=2><P style="margin:0px" align=center><B>2008</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=72.067 colspan=2><P style="margin:0px" align=center>2007</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px"><B>OPERATING ACTIVITIES:</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=72.067 colspan=2><P style="margin:0px">&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=72.067 colspan=2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:53.333px; text-indent:-32px">Net (loss) income</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>$</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>(1,310,654</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">$</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>1,019,248</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:53.333px; text-indent:-32px">Adjustments to reconcile net income to net cash provided by operating activities:</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:73.333px; text-indent:-18.667px">Depreciation and amortization</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>400,134</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>272,058</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:73.333px; text-indent:-18.667px">Bad debts</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>-</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>31,195</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:73.333px; text-indent:-18.667px">Writedown of amount due from dissolved joint venture</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>-</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>242,000</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:73.333px; text-indent:-18.667px">Loss from dissolved joint venture</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>-</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>91,340</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:73.333px; text-indent:-18.667px">Writedown of investment in dissolved joint venture</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>-</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>33,000</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:73.333px; text-indent:-18.667px">Deferred income taxes</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>(652,000</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>(236,600</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:73.333px; text-indent:-18.667px">Impairment loss</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>-</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>31,892</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:53.333px">Changes in operating assets and liabilities:</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:60px">Commodities held at broker</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>2,481,589</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>546,805</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:60px">Accounts receivable</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>563,222</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>1,226,060</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:60px">Inventories</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>(246,676</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>(982,758</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:73.333px; text-indent:-18.667px">Prepaid expenses and other current assets</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>218,847</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>(24,326</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:73.333px; text-indent:-18.667px">Prepaid and refundable income taxes</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>(86,406</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>269,592</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:60px">Accounts payable and accrued expenses</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>(833,122</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>(905,595</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:60px">Due from dissolved joint venture</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>-</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>(388,372</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:60px">Deposits and other assets</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>(47,628</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>(197,370</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:60px">Income taxes payable</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>(9,161</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>27,756</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:60px">Deferred compensation payable</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.933><P style="margin:0px" align=right><B>62,880</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.933><P style="margin:0px" align=right>95,048</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px">Net cash provided by operating activities</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.933><P style="margin:0px" align=right><B>541,025</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.933><P style="margin:0px" align=right>1,150,973</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:13.333px; text-indent:-13.333px"><B>INVESTING ACTIVITIES:</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:13.333px">&nbsp;&nbsp;&nbsp;Purchases of property and equipment</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.933><P style="margin:0px" align=right><B>(352,446</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.933><P style="margin:0px" align=right>(234,291</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px">Net cash used in investing activities</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.933><P style="margin:0px" align=right><B>(352,446</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.933><P style="margin:0px" align=right>(234,291</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px"><B>FINANCING ACTIVITIES:</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:26.667px; text-indent:-18.667px">&nbsp;&nbsp;Advances under bank line of credit</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>46,023,524</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>36,771,879</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:26.667px; text-indent:-18.667px">&nbsp;&nbsp;Principal payments under bank line of credit</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>(44,592,153</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>(36,640,270</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:26.667px; text-indent:-18.667px">&nbsp;&nbsp;Payment of dividend</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>(1,544,568</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:26.667px; text-indent:-18.667px">&nbsp;&nbsp;Purchase of treasury stock</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.933><P style="margin:0px" align=right><B>(200,592</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.933><P style="margin:0px" align=right>(62,748</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px">Net cash provided by (used) in financing activities</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.933><P style="margin:0px" align=right><B>(313,789</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.933><P style="margin:0px" align=right>68,861</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px"><B>MINORITY INTEREST</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.933><P style="margin:0px" align=right><B>2,344</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.933><P style="margin:0px" align=right>981</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px"><B>NET INCREASE (DECREASE) IN CASH</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right><B>(122,866</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>)</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>986,524</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:20px">Cash, beginning of year</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.933><P style="margin:0px" align=right><B>890,649</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=64.933><P style="margin:0px" align=right>1,112,165</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px"><B>CASH, END OF PERIOD</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.933><P style="margin:0px" align=right><B>767,783</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px">$</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.933><P style="margin:0px" align=right>2,098,689</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px"><B>SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:20px">Interest paid</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.933><P style="margin:0px" align=right><B>84,143</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px">$</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.933><P style="margin:0px" align=right>35,530</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:20px">Income taxes paid</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.933><P style="margin:0px" align=right><B>23,249</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px">$</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.933><P style="margin:0px" align=right>132,506</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px"><B>SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES:</B></P>
</TD><TD valign=bottom width=7.2><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD valign=bottom width=64.933><P style="margin:0px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=547.267><P style="margin:0px; padding-left:20px">The Company utilized its deposit for the purchase of machinery and equipment</P>
</TD><TD valign=bottom width=7.2><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.933><P style="margin:0px" align=right><B>296,960</B></P>
</TD><TD width=7.133><P style="margin:0px"><B>&nbsp;</B></P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=7.133><P style="margin:0px">$</P>
</TD><TD style="border-bottom:4px double #000000" valign=bottom width=64.933><P style="margin:0px" align=right>328,388</P>
</TD><TD valign=bottom width=7.133><P style="margin:0px">&nbsp;</P>
</TD></TR>
</TABLE>
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<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt" align=center>5</P>
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