<SUBMISSION>
<ACCESSION-NUMBER>0001116502-05-000161
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20050128
<ITEMS>1.01
<ITEMS>2.01
<ITEMS>9.01
<FILING-DATE>20050201
<DATE-OF-FILING-DATE-CHANGE>20050201
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>Ashlin Development Corp
<CIK>0001009891
<ASSIGNED-SIC>5140
<IRS-NUMBER>650452156
<STATE-OF-INCORPORATION>FL
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-29245
<FILM-NUMBER>05566715
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>4400 N. FEDERAL HIGHWAY
<STREET2>SUITE 210
<CITY>BOCA RATON
<STATE>FL
<ZIP>33431
<PHONE>561-391-6196
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>4400 N. FEDERAL HIGHWAY
<STREET2>SUITE 210
<CITY>BOCA RATON
<STATE>FL
<ZIP>33431
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>HEALTH & NUTRITION SYSTEMS INTERNATIONAL INC
<DATE-CHANGED>20000118
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>hns8k.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
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<TITLE>bp53962 -- Ashlin Development -- 8K</TITLE>
<META NAME="author" CONTENT="Bassett Press, Inc. 954-928-2862">
<META NAME="date" CONTENT="01/31/2005">
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<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>UNITED STATES</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin-top:0pt; margin-bottom:10pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>WASHINGTON, D.C. 20549</B></P>
<P style="margin-top:0pt; margin-bottom:14pt; line-height:16pt; font-family:Times New Roman; font-size:14pt" align=center><B>FORM 8-K</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Current Report</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Pursuant to Section 13 or 15(d) of the</B></P>
<P style="margin-top:0pt; margin-bottom:30pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Securities Exchange Act of 1934</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Date of Report (date of earliest event reported) <B>January 28, 2005</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Ashlin Development Corporation</B></P>
<P style="margin-top:0pt; margin-bottom:30pt; font-family:Times New Roman" align=center>(Exact name of registrant as specified in its charter)</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Florida</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>(State or other jurisdiction of incorporation)</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD valign=top width=252><P style="margin:0pt; font-family:Times New Roman" align=center><B>000-29245</B></P>
</TD><TD valign=top width=54>&nbsp;</TD><TD valign=top width=246><P style="margin:0pt; font-family:Times New Roman" align=center><B>65-0452156</B></P>
</TD></TR>
<TR><TD valign=top width=252><P style="margin:0pt; font-family:Times New Roman" align=center>(Commission File Number)</P>
</TD><TD valign=top width=54>&nbsp;</TD><TD valign=top width=246><P style="margin:0pt; font-family:Times New Roman" align=center>(IRS Employer Identification No.)</P>
</TD></TR>
<TR><TD valign=top width=252>&nbsp;</TD><TD valign=top width=54>&nbsp;</TD><TD valign=top width=246>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>4400 North Federal Highway, Suite 210, Boca Raton, Florida 33431</B></P>
<P style="margin-top:0pt; margin-bottom:30pt; font-family:Times New Roman" align=center>(Address of principal executive offices) (Zip Code)</P>
<P style="margin-top:0pt; margin-bottom:15pt; font-family:Times New Roman" align=center>Registrant&#146;s telephone number, including area code <B>(561) 391-6196</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>Health &amp; Nutrition Systems International, Inc.</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>(Former name or former address, if changed since last report)</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman">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:0pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Wingdings">&#168;<FONT FACE="Times New Roman"> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>
<P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Wingdings">&#168;<FONT FACE="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:2.5pt; margin-bottom:2.5pt; font-family:Wingdings">&#168;<FONT FACE="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:2.5pt; margin-bottom:2.5pt; font-family:Wingdings">&#168;<FONT FACE="Times New Roman"> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></P>
<BR>
<BR>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="page-break-before:always; margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman"><B>Item 1.01</B></P>
<P style="margin-top:0pt; margin-bottom:6.65pt; text-indent:72pt; font-family:Times New Roman"><B>Entry into a Material Definitive Agreement</B></P>
<P style="margin-top:0pt; margin-bottom:6.65pt; font-family:Times New Roman">On January 28, 2005 (the &#147;Effective Date&#148;), the U.S. Bankruptcy Court, Southern District of Florida, in Fort Lauderdale, Florida (the &#147;Bankruptcy Court&#148;) declared the Amended Plan of Reorganization (the &#147;Plan&#148;) of Ashlin Development Corporation, a Florida corporation (f/k/a Health &amp; Nutrition Systems International, Inc.) (the &#147;Company&#148;) effective. As a result, Mr. James A. Brown, the Company&#146;s Chief Executive Officer and the Chairman of the Board of its Board of Directors will be issued 300,000 shares of common stock of the Company (the &#147;Shares&#148;) in accordance with the terms of the Employment Agreement dated November 19, 2004, between the Company and Mr. Brown, which was subject to the effectiveness of the Plan (the &#147;Employment Agreement&#148;). The parties have agreed that the fair market value of the Shares as of the date of issuance is the closing price of the common stock on November 18, 2004 multiplied by the number of Shares (the &#147;Issuance Value&#148;). The Employment Agreement also provides that Mr. Brown will continue to serve as Chief Executive Officer of the Company until November 19, 2005 and will receive annual compensation of $86,200. The Company will have the right to repurchase the Shares at the Issuance Value if Mr. Brown leaves the Company prior to the expiration of the Employment Agreement, or in the event he is terminated for cause. </P>
<P style="margin-top:0pt; margin-bottom:6.65pt; font-family:Times New Roman">The Item 2.01 disclosure set forth below is incorporated herein by reference.</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman"><B>Item 2.01</B></P>
<P style="margin-top:0pt; margin-bottom:6.65pt; text-indent:72pt; font-family:Times New Roman"><B>Completion of Acquisition or Disposition of Assets</B></P>
<P style="margin-top:0pt; margin-bottom:6.65pt; font-family:Times New Roman">On the Effective Date the sale of substantially all of the Company&#146;s assets (the &#147;Assets&#148;) to TeeZee, Inc., a Florida corporation (the &#147;Purchaser&#148;), pursuant to the Asset Purchase Agreement dated October 15, 2004, between the Company and Purchaser (the &#147;Asset Purchase Agreement&#148;) also became effective. The President and sole shareholder of the Purchaser is Christopher Tisi, a former Director and the former Chief Executive Officer of the Company. Mr. Tisi also currently owns approximately 12% of the outstanding common stock of the Company. The Asset Purchase Agreement was entered into as part of the Plan. The closing of the sale was a condition precedent to, and effective upon, the effectiveness of the Plan.</P>
<P style="margin-top:0pt; margin-bottom:6.65pt; font-family:Times New Roman">The purchase price for the Assets was $2,191,160.23 (the &#147;Purchase Price&#148;), which consisted of the assumption by the Purchaser of $1,841,160.23 of liabilities of the Company, a cash payment from the Purchaser to the Company of $250,000, and the release to the Company of $100,000 in cash that had been funded by the Purchaser into escrow in accordance with the terms of the Asset Purchase Agreement. The Purchase Price was determined in accordance with the terms of the Asset Purchase Agreement and no other bid was received for the Assets in connection with the Plan.</P>
<P style="margin-top:0pt; margin-bottom:6.65pt; font-family:Times New Roman">In connection with the sale, the Company changed its name to &#147;Ashlin Development Corporation&#148; and assigned its rights to the name &#147;Health &amp; Nutrition Systems International, Inc.&#148; to the Purchaser.</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Times New Roman"><B>Item 9.01</B></P>
<P style="margin-top:0pt; margin-bottom:6.65pt; text-indent:72pt; font-family:Times New Roman"><B>Financial Statements and Exhibits</B></P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Times New Roman">(b)</P>
<P style="margin-top:0pt; margin-bottom:6.65pt; text-indent:72pt; font-family:Times New Roman">The following pro forma financial information is included herein pursuant to Item 9(b): </P>
<P style="margin-top:0pt; margin-bottom:6.65pt; padding-left:72pt; font-family:Times New Roman">Unaudited Pro Forma Balance Sheet as of September 30, 2004.</P>
<P style="margin-top:0pt; margin-bottom:6.65pt; padding-left:72pt; font-family:Times New Roman">Unaudited Pro Forma Statement of Operations for the Nine Months Ended September 30, 2004.</P>
<P style="margin-top:0pt; margin-bottom:6.65pt; padding-left:72pt; font-family:Times New Roman">Unaudited Pro Forma Statement of Operations for the Year Ended December 31, 2003.</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Times New Roman">(c)</P>
<P style="margin-top:0pt; margin-bottom:2.5pt; text-indent:72pt; font-family:Times New Roman">Exhibits.</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=61.467><P style="margin-top:2.5pt; margin-bottom:2.5pt; padding-bottom:3pt; font-family:Times New Roman; border-bottom:0.75pt solid #000000">Exhibit<BR>
Number</P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=551.2><P style="margin-top:2.5pt; margin-bottom:2.5pt; padding-bottom:3pt; font-family:Times New Roman; border-bottom:0.75pt solid #000000">Description</P>
</TD></TR>
<TR><TD valign=top width=61.467><P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman">10.1</P>
</TD><TD valign=top width=18.533>&nbsp;</TD><TD valign=top width=551.2><P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman">Employment Agreement dated November 19, 2004, between James A. Brown and the Company (incorporated herein by reference to Exhibit 3 to Exhibit 2.1 of the Form 8-K of the Company filed with the Commission on January 14, 2005).</P>
</TD></TR>
<TR><TD valign=top width=61.467><P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman">10.2</P>
</TD><TD valign=top width=18.533>&nbsp;</TD><TD valign=top width=551.2><P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman">Asset Purchase Agreement dated October 15, 2004, between the Company and the Purchaser (incorporated herein by reference to Exhibit 2 to Exhibit 2.1 of the Form 8-K of the Company filed with the Commission on January 14, 2005).</P>
</TD></TR>
<TR><TD valign=top width=61.467><P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman"><A HREF="pressrelease991.htm"><FONT COLOR=#0000FF><U>99.1</U></FONT></A></P>
</TD><TD valign=top width=18.533>&nbsp;</TD><TD valign=top width=551.2><P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman">Press Release dated January 27, 2005.</P>
</TD></TR>
</TABLE>
<BR>
<BR>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="page-break-before:always; margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman" align=center><B>SIGNATURES</B></P>
<P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:2.5pt; text-indent:36pt; font-family:Times New Roman">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-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD valign=bottom width=336.533>&nbsp;</TD><TD valign=bottom width=301.867 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>ASHLIN DEVELOPMENT CORPORATION</B></P>
</TD></TR>
<TR><TD valign=bottom width=336.533>&nbsp;</TD><TD valign=bottom width=22.667>&nbsp;</TD><TD valign=bottom width=279.2>&nbsp;</TD></TR>
<TR><TD valign=bottom width=336.533>&nbsp;</TD><TD valign=bottom width=22.667><P style="margin:0pt; font-family:Times New Roman">By:</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=279.2><P style="margin:0pt; font-family:Times New Roman">/s/ James A. Brown</P>
</TD></TR>
<TR><TD valign=bottom width=336.533>&nbsp;</TD><TD valign=bottom width=22.667>&nbsp;</TD><TD valign=bottom width=279.2><P style="margin:0pt; font-family:Times New Roman">James A. Brown</P>
<P style="margin:0pt; font-family:Times New Roman">Chief Executive Officer</P>
</TD></TR>
</TABLE>
<P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman">Date: February 1, 2005</P>
<BR>
<BR>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="page-break-before:always; margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman" align=center><B>UNAUDITED PRO FORMA FINANCIAL INFORMATION</B></P>
<P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman">The following unaudited pro forma balance sheet of the Company as of September 30, 2004 is presented as if the sale of substantially all the assets of the Company was consummated as of September 30, 2004.</P>
<P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman">The following unaudited pro forma statements of operations for the nine months ended September 30, 2004 and the year ended December 31, 2003 are presented as if the sale of substantially all the assets of the Company was consummated as of the beginning of the periods presented. </P>
<P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman">The unaudited pro forma information was prepared utilizing the accounting policies outlined in the historical financial statements of the Company. The unaudited pro forma condensed balance sheet and statements of operations do not purport to represent the Company&#146;s results of operations for future periods, and should be read in conjunction with the historical financial statements of the Company.</P>
<P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman"><BR></P>
<BR>
<BR>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="page-break-before:always; margin:0pt; font-family:Arial" align=center><B>Ashlin Development Corporation f/k/a</B></P>
<P style="margin:0pt; font-family:Arial" align=center>&nbsp;<B>Health &amp; Nutrition Systems International, Inc.</B></P>
<P style="margin:0pt; font-family:Arial" align=center><B>Pro Forma Balance Sheet as of September 30, 2004</B></P>
<P style="margin:0pt; font-family:Arial" align=center><B>(Unaudited)</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD valign=bottom width=229.733>&nbsp;</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=80.267 colspan=2><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Unaudited September&nbsp;30, 2004</B></P>
</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=161.267 colspan=5><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Pro Forma Adjustments</B></P>
</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.133 colspan=2><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Pro Forma</B></P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733>&nbsp;</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267>&nbsp;</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667>&nbsp;</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial" align=center><B>ASSETS</B></P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267>&nbsp;</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667>&nbsp;</TD><TD valign=bottom width=5.333>&nbsp;</TD><A NAME="RANGE!A1:K48"></A></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Current assets: </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267>&nbsp;</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667>&nbsp;</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Cash </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>16,961</P>
</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>333,039</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>350,000</P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Accounts receivable, net </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>46,550</P>
</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>46,550</P>
</TD><TD valign=bottom width=21.867><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Inventory, net </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>1,030,484</P>
</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>1,030,484</P>
</TD><TD valign=bottom width=21.867><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Prepaids and other current assets </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>97,095</P>
</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>52,095</P>
</TD><TD valign=bottom width=21.867><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>45,000</P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:30pt; text-indent:-6pt; font-family:Arial">Total current assets </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>1,191,090</P>
</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=10.267>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>333,039</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>1,129,129</P>
</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>395,000</P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733>&nbsp;</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267>&nbsp;</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667>&nbsp;</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Property and equipment, net </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>84,487</P>
</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>84,487</P>
</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733>&nbsp;</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267>&nbsp;</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667>&nbsp;</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Other assets: </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267>&nbsp;</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667>&nbsp;</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Trademarks, net </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>409</P>
</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>409</P>
</TD><TD valign=bottom width=21.867><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Security deposits </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>8,019</P>
</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>8,019</P>
</TD><TD valign=bottom width=21.867><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:30pt; text-indent:-6pt; font-family:Arial">Total other assets </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>8,428</P>
</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=10.267>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>8,428</P>
</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733>&nbsp;</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267>&nbsp;</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667>&nbsp;</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:30pt; text-indent:-6pt; font-family:Arial">Total assets </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=8><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>1,284,005</P>
</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=10.267><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>333,039</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=8.467><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>1,222,044</P>
</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=8.467><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>395,000</P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733>&nbsp;</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267>&nbsp;</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667>&nbsp;</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial" align=center><B>LIABILITIES AND STOCKHOLDERS&#146; DEFICIT</B></P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267>&nbsp;</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667>&nbsp;</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Current liabilities: </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267>&nbsp;</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667>&nbsp;</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Accounts payable </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>1,433,601</P>
</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>1,433,601</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=21.867><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Accrued expenses </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>283,272</P>
</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>250,772</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=21.867><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>32,500</P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Notes payable, current portion </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>394,980</P>
</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>394,980</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=21.867><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Total current liabilities </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>2,111,853</P>
</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=10.267>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>2,079,353</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>32,500</P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733>&nbsp;</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267>&nbsp;</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667>&nbsp;</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Stockholders' deficit: </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267>&nbsp;</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667>&nbsp;</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Common stock, $ 0.001 par value, authorized 30,000,000 shares; 3,832,813 and 3,832,813 shares issued and outstanding at December&nbsp;31, 2003 and 2002, respectively </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>3,830</P>
</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>3,830</P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Additional paid-in capital </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>858,612</P>
</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>858,612</P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Accumulated deficit </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>(1,690,290</P>
</TD><TD style="border-bottom:0.5pt solid #FFFFFF" valign=bottom width=16.6><P style="margin:0pt; font-family:Arial">)</P>
</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>1,222,044</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>2,412,392</P>
</TD><TD valign=bottom width=21.867><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>(499,942</P>
</TD><TD style="border-bottom:0.5pt solid #FFFFFF" valign=bottom width=5.333><P style="margin:0pt; font-family:Arial">)</P>
</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:30pt; text-indent:-6pt; font-family:Arial">Total stockholders' deficit </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>(827,848</P>
</TD><TD style="border-bottom:0.5pt solid #FFFFFF" valign=bottom width=16.6><P style="margin:0pt; font-family:Arial">)</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=10.267>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>1,222,044</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>2,412,392</P>
</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>362,500</P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733>&nbsp;</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD valign=bottom width=8>&nbsp;</TD><TD valign=bottom width=72.267>&nbsp;</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD valign=bottom width=10.267>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.8>&nbsp;</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=53.667>&nbsp;</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=229.733><P style="margin:0pt; padding-left:30pt; text-indent:-6pt; font-family:Arial">Total liabilities and stockholders' deficit </P>
</TD><TD valign=bottom width=34.333>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=8><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=72.267><P style="margin:0pt; font-family:Arial" align=right>1,284,005</P>
</TD><TD valign=bottom width=16.6>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=10.267><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>3,301,397</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=8.467><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=60.8><P style="margin:0pt; font-family:Arial" align=right>2,412,392</P>
</TD><TD valign=bottom width=21.867>&nbsp;</TD><TD valign=bottom width=12.467>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=8.467><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=53.667><P style="margin:0pt; font-family:Arial" align=right>395,000</P>
</TD><TD valign=bottom width=5.333>&nbsp;</TD></TR>
</TABLE>
<P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman"><B>&#151;&#151;&#151;&#151;&#151;&#151;&#151;</B></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:42pt; text-indent:-42pt; font-family:Arial">Note (a):</P>
<P style="margin:0pt; padding-left:42pt; font-family:Arial">To record the disposition of substantially all of the assets for $350,000 and the assumption of $2,079,353 of liabilities of the Company. Assumes the disposition occurred September&nbsp;30, 2004 </P>
<A NAME="RANGE!B1:K43"></A><BR>
<BR>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="page-break-before:always; margin-top:2.5pt; margin-bottom:2.5pt; font-family:Arial" align=center><B>Ashlin Development Corporation f/k/a</B></P>
<P style="margin:0pt; font-family:Arial" align=center><B>Health &amp; Nutrition International, Inc</B></P>
<P style="margin:0pt; font-family:Arial" align=center><B>Pro Forma Statement of Operations for the Nine Months Ended September 30, 2004</B></P>
<P style="margin:0pt; font-family:Arial" align=center><B>(Unaudited)</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD valign=bottom width=237.933 rowspan=2>&nbsp;</TD><TD valign=bottom width=10.133 rowspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=84.733 colspan=2 rowspan=2><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Unaudited September&nbsp;30, 2004</B></P>
</TD><TD valign=bottom width=9.267 rowspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=264.6 colspan=9><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Unaudited</B></P>
</TD><TD valign=bottom width=17.333 rowspan=2>&nbsp;</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=162.133 colspan=5><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Pro Forma Adjustments</B></P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=68.8 colspan=2><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Pro Forma</B></P>
</TD></TR>
<TR><TD valign=bottom width=237.933>&nbsp;</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=76.267>&nbsp;</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.867>&nbsp;</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Net revenue </P>
</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD valign=bottom width=8.467><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD valign=bottom width=76.267><P style="margin:0pt; font-family:Arial" align=right>6,342,588</P>
</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.867><P style="margin:0pt; font-family:Arial" align=right>6,342,588</P>
</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=17.333><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933>&nbsp;</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=76.267>&nbsp;</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.867>&nbsp;</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Cost of sales </P>
</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=76.267><P style="margin:0pt; font-family:Arial" align=right>2,753,729</P>
</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.867><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70><P style="margin:0pt; font-family:Arial" align=right>2,753,729</P>
</TD><TD valign=bottom width=17.333><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933>&nbsp;</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=76.267>&nbsp;</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.867>&nbsp;</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Gross profit </P>
</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=76.267><P style="margin:0pt; font-family:Arial" align=right>3,588,859</P>
</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.867><P style="margin:0pt; font-family:Arial" align=right>6,342,588</P>
</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=70><P style="margin:0pt; font-family:Arial" align=right>2,753,729</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=60.333><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933>&nbsp;</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=76.267>&nbsp;</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.867>&nbsp;</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Operating expense: </P>
</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=76.267>&nbsp;</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.867>&nbsp;</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">General and administrative expense </P>
</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=76.267><P style="margin:0pt; font-family:Arial" align=right>2,621,158</P>
</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.867><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70><P style="margin:0pt; font-family:Arial" align=right>2,324,615</P>
</TD><TD valign=bottom width=17.333><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333><P style="margin:0pt; font-family:Arial" align=right>296,544</P>
</TD><TD valign=bottom width=17.333><P style="margin:0pt; font-family:Arial">(b)</P>
</TD></TR>
<TR><TD valign=bottom width=237.933><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Advertising and promotion </P>
</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=76.267><P style="margin:0pt; font-family:Arial" align=right>2,121,575</P>
</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.867><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70><P style="margin:0pt; font-family:Arial" align=right>2,121,575</P>
</TD><TD valign=bottom width=17.333><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Depreciation and amortization </P>
</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=76.267><P style="margin:0pt; font-family:Arial" align=right>30,140</P>
</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.867><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70><P style="margin:0pt; font-family:Arial" align=right>30,140</P>
</TD><TD valign=bottom width=17.333><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933><P style="margin:0pt; padding-left:30pt; text-indent:-6pt; font-family:Arial">Total operating expense </P>
</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=76.267><P style="margin:0pt; font-family:Arial" align=right>4,772,873</P>
</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.867><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=70><P style="margin:0pt; font-family:Arial" align=right>4,476,330</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=60.333><P style="margin:0pt; font-family:Arial" align=right>296,544</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933>&nbsp;</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=76.267>&nbsp;</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.867>&nbsp;</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Income (loss) from operations </P>
</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=76.267><P style="margin:0pt; font-family:Arial" align=right>(1,184,015</P>
</TD><TD style="border-bottom:0.5pt solid #FFFFFF" valign=bottom width=9.267><P style="margin:0pt; font-family:Arial">)</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.867><P style="margin:0pt; font-family:Arial" align=right>6,342,588</P>
</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=70><P style="margin:0pt; font-family:Arial" align=right>7,230,059</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=60.333><P style="margin:0pt; font-family:Arial" align=right>(296,544</P>
</TD><TD style="border-bottom:0.5pt solid #FFFFFF" valign=bottom width=17.333><P style="margin:0pt; font-family:Arial">)</P>
</TD></TR>
<TR><TD valign=bottom width=237.933>&nbsp;</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=76.267>&nbsp;</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.867>&nbsp;</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Other income (expense): </P>
</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=76.267>&nbsp;</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.867>&nbsp;</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Gain on disposition </P>
</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=76.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.867><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70><P style="margin:0pt; font-family:Arial" align=right>1,190,348</P>
</TD><TD valign=bottom width=17.333><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333><P style="margin:0pt; font-family:Arial" align=right>1,190,348</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Interest expense </P>
</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=76.267><P style="margin:0pt; font-family:Arial" align=right>(25,353</P>
</TD><TD valign=bottom width=9.267><P style="margin:0pt; font-family:Arial">)</P>
</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.867><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70><P style="margin:0pt; font-family:Arial" align=right>25,353</P>
</TD><TD valign=bottom width=17.333><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Other income (expense) </P>
</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=76.267><P style="margin:0pt; font-family:Arial" align=right>4,515</P>
</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.867><P style="margin:0pt; font-family:Arial" align=right>4,515</P>
</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933><P style="margin:0pt; padding-left:30pt; text-indent:-6pt; font-family:Arial">Total other income (expense) </P>
</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=76.267><P style="margin:0pt; font-family:Arial" align=right>(20,838</P>
</TD><TD style="border-bottom:0.5pt solid #FFFFFF" valign=bottom width=9.267><P style="margin:0pt; font-family:Arial">)</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.867><P style="margin:0pt; font-family:Arial" align=right>4,515</P>
</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=70><P style="margin:0pt; font-family:Arial" align=right>1,215,701</P>
</TD><TD style="border-bottom:0.5pt solid #FFFFFF" valign=bottom width=17.333><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=60.333><P style="margin:0pt; font-family:Arial" align=right>1,190,348</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933>&nbsp;</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=76.267>&nbsp;</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.867>&nbsp;</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Income (loss) before income taxes </P>
</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=76.267><P style="margin:0pt; font-family:Arial" align=right>(1,204,853</P>
</TD><TD valign=bottom width=9.267><P style="margin:0pt; font-family:Arial">)</P>
</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.867><P style="margin:0pt; font-family:Arial" align=right>6,347,103</P>
</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70><P style="margin:0pt; font-family:Arial" align=right>8,445,760</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333><P style="margin:0pt; font-family:Arial" align=right>893,804</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933>&nbsp;</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=76.267>&nbsp;</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.867>&nbsp;</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Benefit (provision) for income taxes </P>
</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=76.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.867><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933>&nbsp;</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=76.267>&nbsp;</TD><TD valign=bottom width=9.267>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.867>&nbsp;</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=70>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=60.333>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.933><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Net income (loss) </P>
</TD><TD valign=bottom width=10.133>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=8.467><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=76.267><P style="margin:0pt; font-family:Arial" align=right>(1,204,853</P>
</TD><TD style="border-bottom:3pt double #FFFFFF" valign=bottom width=9.267><P style="margin:0pt; font-family:Arial">)</P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=8.467><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=62.867><P style="margin:0pt; font-family:Arial" align=right>6,347,103</P>
</TD><TD valign=bottom width=12.333>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=8.467><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=70><P style="margin:0pt; font-family:Arial" align=right>8,445,760</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.333>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=8.467><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=60.333><P style="margin:0pt; font-family:Arial" align=right>893,804</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><B>&#151;&#151;&#151;&#151;&#151;&#151;&#151;</B></P>
<P style="margin-top:2.5pt; margin-bottom:-12pt; padding-left:42pt; text-indent:-42pt; font-family:Arial">Note (a):</P>
<P style="margin-top:0pt; margin-bottom:2.5pt; padding-left:42pt; font-family:Arial">To record the disposition of substantially all of the assets for $350,000 and the assumption of $2,079,353 of liabilities of the Company on January&nbsp;1, 2004.</P>
<P style="margin-top:2.5pt; margin-bottom:-12pt; padding-left:42pt; text-indent:-42pt; font-family:Arial">Note (b):</P>
<P style="margin-top:0pt; margin-bottom:2.5pt; padding-left:42pt; font-family:Arial">Comprised of directors&#146; fees and professional fees of auditors and legal counsel.</P>
<A NAME="RANGE!A1:K44"></A><BR>
<BR>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="page-break-before:always; margin:0pt; font-family:Arial" align=center><B>Ashlin Development Corporation f/k/a</B></P>
<P style="margin:0pt; font-family:Arial" align=center><B>Health &amp; Nutrition System International, Inc.</B></P>
<P style="margin:0pt; font-family:Arial" align=center><B>Pro Forma Statement of Operations for the Year Ended December 31, 2003</B></P>
<P style="margin:0pt; font-family:Arial" align=center><B>(Unaudited)</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD valign=bottom width=237.667 rowspan=2>&nbsp;</TD><TD valign=bottom width=20.933 rowspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=72 colspan=2 rowspan=2><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Historical 2003</B></P>
</TD><TD valign=bottom width=10.467 rowspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=261.2 colspan=9><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Unaudited</B></P>
</TD><TD valign=bottom width=21.733 rowspan=2>&nbsp;</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=161.067 colspan=5><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Pro Forma Adjustments</B></P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=66.733 colspan=2><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt" align=center><B>Pro Forma</B></P>
</TD></TR>
<TR><TD valign=bottom width=237.667>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=63.533>&nbsp;</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.267>&nbsp;</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267>&nbsp;</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Net revenue </P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD valign=bottom width=63.533><P style="margin:0pt; font-family:Arial" align=right>6,552,206</P>
</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.267><P style="margin:0pt; font-family:Arial" align=right>6,552,206</P>
</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=17.333><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=63.533>&nbsp;</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.267>&nbsp;</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267>&nbsp;</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Cost of sales </P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=63.533><P style="margin:0pt; font-family:Arial" align=right>2,514,758</P>
</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733><P style="margin:0pt; font-family:Arial" align=right>2,514,758</P>
</TD><TD valign=bottom width=17.333><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=63.533>&nbsp;</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.267>&nbsp;</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267>&nbsp;</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Gross profit </P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=63.533><P style="margin:0pt; font-family:Arial" align=right>4,037,448</P>
</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.267><P style="margin:0pt; font-family:Arial" align=right>6,552,206</P>
</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=69.733><P style="margin:0pt; font-family:Arial" align=right>2,514,758</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=58.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=63.533>&nbsp;</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.267>&nbsp;</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267>&nbsp;</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Operating expense: </P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=63.533>&nbsp;</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.267>&nbsp;</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267>&nbsp;</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">General and administrative expense </P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=63.533><P style="margin:0pt; font-family:Arial" align=right>2,113,918</P>
</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733><P style="margin:0pt; font-family:Arial" align=right>1,934,909</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267><P style="margin:0pt; font-family:Arial" align=right>179,009</P>
</TD><TD valign=bottom width=21.733><P style="margin:0pt; font-family:Arial">(b)</P>
</TD></TR>
<TR><TD valign=bottom width=237.667><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Advertising and promotion </P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=63.533><P style="margin:0pt; font-family:Arial" align=right>1,428,838</P>
</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733><P style="margin:0pt; font-family:Arial" align=right>1,428,838</P>
</TD><TD valign=bottom width=17.333><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Depreciation and amortization </P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=63.533><P style="margin:0pt; font-family:Arial" align=right>21,760</P>
</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733><P style="margin:0pt; font-family:Arial" align=right>21,760</P>
</TD><TD valign=bottom width=17.333><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667><P style="margin:0pt; padding-left:30pt; text-indent:-6pt; font-family:Arial">Total operating expense </P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=63.533><P style="margin:0pt; font-family:Arial" align=right>3,564,516</P>
</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=69.733><P style="margin:0pt; font-family:Arial" align=right>3,385,507</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=58.267><P style="margin:0pt; font-family:Arial" align=right>179,009</P>
</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=63.533>&nbsp;</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.267>&nbsp;</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267>&nbsp;</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Income (loss) from operations </P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=63.533><P style="margin:0pt; font-family:Arial" align=right>472,932</P>
</TD><TD style="border-bottom:0.5pt solid #FFFFFF" valign=bottom width=10.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.267><P style="margin:0pt; font-family:Arial" align=right>6,552,206</P>
</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=69.733><P style="margin:0pt; font-family:Arial" align=right>5,900,265</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=58.267><P style="margin:0pt; font-family:Arial" align=right>(179,009</P>
</TD><TD style="border-bottom:0.5pt solid #FFFFFF" valign=bottom width=21.733><P style="margin:0pt; font-family:Arial">)</P>
</TD></TR>
<TR><TD valign=bottom width=237.667>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=63.533>&nbsp;</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.267>&nbsp;</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267>&nbsp;</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Other income (expense): </P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=63.533>&nbsp;</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.267>&nbsp;</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267>&nbsp;</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Gain on disposition</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=63.533><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733><P style="margin:0pt; font-family:Arial" align=right>381,787</P>
</TD><TD valign=bottom width=17.333><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267><P style="margin:0pt; font-family:Arial" align=right>381,787</P>
</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Gain on sale of trademark</P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=63.533><P style="margin:0pt; font-family:Arial" align=right>274,945</P>
</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.267><P style="margin:0pt; font-family:Arial" align=right>274,945</P>
</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Interest expense </P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=63.533><P style="margin:0pt; font-family:Arial" align=right>(46,518</P>
</TD><TD valign=bottom width=10.467><P style="margin:0pt; font-family:Arial">)</P>
</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733><P style="margin:0pt; font-family:Arial" align=right>46,518</P>
</TD><TD valign=bottom width=17.333><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667><P style="margin:0pt; padding-left:18pt; text-indent:-6pt; font-family:Arial">Other income (expense) </P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=63.533><P style="margin:0pt; font-family:Arial" align=right>(5,000</P>
</TD><TD style="border-bottom:0.5pt solid #FFFFFF" valign=bottom width=10.467><P style="margin:0pt; font-family:Arial">)</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733><P style="margin:0pt; font-family:Arial" align=right>5,000</P>
</TD><TD valign=bottom width=17.333><P style="margin:0pt; font-family:Arial">(a)</P>
</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667><P style="margin:0pt; padding-left:30pt; text-indent:-6pt; font-family:Arial">Total other income (expense) </P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=63.533><P style="margin:0pt; font-family:Arial" align=right>223,427</P>
</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.267><P style="margin:0pt; font-family:Arial" align=right>274,945</P>
</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=69.733><P style="margin:0pt; font-family:Arial" align=right>433,305</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=58.267><P style="margin:0pt; font-family:Arial" align=right>381,787</P>
</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=63.533>&nbsp;</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.267>&nbsp;</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267>&nbsp;</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Income before income taxes </P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=63.533><P style="margin:0pt; font-family:Arial" align=right>696,359</P>
</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.267><P style="margin:0pt; font-family:Arial" align=right>6,827,151</P>
</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733><P style="margin:0pt; font-family:Arial" align=right>6,333,570</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267><P style="margin:0pt; font-family:Arial" align=right>202,778</P>
</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=63.533>&nbsp;</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.267>&nbsp;</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267>&nbsp;</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Benefit (provision) for income taxes </P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=63.533><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=62.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667>&nbsp;</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=63.533>&nbsp;</TD><TD valign=bottom width=10.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=8.467>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=62.267>&nbsp;</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=69.733>&nbsp;</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD valign=bottom width=8.467>&nbsp;</TD><TD valign=bottom width=58.267>&nbsp;</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
<TR><TD valign=bottom width=237.667><P style="margin:0pt; padding-left:6pt; text-indent:-6pt; font-family:Arial">Net income </P>
</TD><TD valign=bottom width=20.933>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=8.467><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=63.533><P style="margin:0pt; font-family:Arial" align=right>696,359</P>
</TD><TD style="border-bottom:3pt double #FFFFFF" valign=bottom width=10.467>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=8.467><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=62.267><P style="margin:0pt; font-family:Arial" align=right>6,827,151</P>
</TD><TD valign=bottom width=12.133>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=8.467><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=69.733><P style="margin:0pt; font-family:Arial" align=right>6,333,570</P>
</TD><TD valign=bottom width=17.333>&nbsp;</TD><TD valign=bottom width=16.067>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=8.467><P style="margin:0pt; font-family:Arial">$</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:3pt double #000000" valign=bottom width=58.267><P style="margin:0pt; font-family:Arial" align=right>202,778</P>
</TD><TD valign=bottom width=21.733>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><B>&#151;&#151;&#151;&#151;&#151;&#151;&#151;</B></P>
<P style="margin-top:2.5pt; margin-bottom:-12pt; padding-left:42pt; text-indent:-42pt; font-family:Arial">Note (a):</P>
<P style="margin-top:0pt; margin-bottom:2.5pt; padding-left:42pt; font-family:Arial">To record the disposition of substantially all of the assets for $350,000 and the assumption of $1,776,446 of liabilities of the Company on January&nbsp;1, 2003.</P>
<P style="margin-top:2.5pt; margin-bottom:-12pt; padding-left:42pt; text-indent:-42pt; font-family:Arial">Note (b):</P>
<P style="margin-top:0pt; margin-bottom:2.5pt; padding-left:42pt; font-family:Arial">Comprised of directors&#146; fees and professional fees of auditors and legal counsel.</P>
<P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman"><BR></P>
<BR>
<BR>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="page-break-before:always; margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman" align=center><B>Exhibit Index</B></P>
<P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=bottom width=61.467><P style="margin-top:2.5pt; margin-bottom:2.5pt; padding-bottom:3pt; font-family:Times New Roman; border-bottom:0.75pt solid #000000">Exhibit<BR>
Number</P>
</TD><TD valign=bottom width=18.533>&nbsp;</TD><TD valign=bottom width=551.2><P style="margin-top:2.5pt; margin-bottom:2.5pt; padding-bottom:3pt; font-family:Times New Roman; border-bottom:0.75pt solid #000000">Description</P>
</TD></TR>
<TR><TD valign=top width=61.467><P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman">10.1</P>
</TD><TD valign=top width=18.533>&nbsp;</TD><TD valign=top width=551.2><P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman">Employment Agreement dated November 19, 2004, between James A. Brown and the Company (incorporated herein by reference to Exhibit 3 to Exhibit 2.1 of the Form 8-K of the Company filed with the Commission on January 14, 2005).</P>
</TD></TR>
<TR><TD valign=top width=61.467><P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman">10.2</P>
</TD><TD valign=top width=18.533>&nbsp;</TD><TD valign=top width=551.2><P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman">Asset Purchase Agreement dated October 15, 2004, between the Company and the Purchaser (incorporated herein by reference to Exhibit 2 to Exhibit 2.1 of the Form 8-K of the Company filed with the Commission on January 14, 2005).</P>
</TD></TR>
<TR><TD valign=top width=61.467><P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman"><A HREF="pressrelease991.htm"><FONT COLOR=#0000FF><U>99.1</U></FONT></A></P>
</TD><TD valign=top width=18.533>&nbsp;</TD><TD valign=top width=551.2><P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman">Press Release dated January 27, 2005.</P>
</TD></TR>
</TABLE>
<P style="margin-top:2.5pt; margin-bottom:2.5pt; font-family:Times New Roman"><BR></P>
<BR>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>pressrelease991.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
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<HEAD>
<TITLE>bp53961 -- HSN -- Ehxibit 99.1</TITLE>
<META NAME="author" CONTENT="Bassett Press, Inc. 954-928-2862">
<META NAME="date" CONTENT="01/31/2005">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>Exhibit 99.1</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Ashlin Development Corporation (f/k/a Health &amp; Nutrition Systems International, Inc.) Completes the Sale of Substantially All of Its Assets</B></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>West Palm Beach, Fla, January 27, 2005 &#150;</B> <A NAME="OLE_LINK1"></A><A NAME="OLE_LINK2"></A>Ashlin Development Corporation, a Florida corporation (f/k/a Health &amp; Nutrition Systems International, Inc. (OTC Bulletin Board: <U>HNNSQ &#150; News; </U>the &#147;Company&#148;), announced that on January 25, 2005, the sale of substantially all of its assets (the &#147;Assets&#148;) to TeeZee, Inc., a Florida corporation (the &#147;Purchaser&#148;), was completed pursuant to the Asset Purchase Agreement dated October 15, 2004, between the Company and Purchaser (the &#147;Asset Purchase Agreement&#148;). The Asset Purchase Agreement was entered into as part of the Company&#146;s Amended Plan of Reorganization, which was approved on January 10, 2005 by the U.S. Bankruptcy Court, Southern District of Florida, in Fort Lauderdale, Florida (the &#147;Plan&#148;). The closing of the sale is a condition precedent to the effectiveness of the Plan.</P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The purchase price for the Assets was $2,191,160.23, which consisted of the assumption by the Purchaser of $1,841,160.23 of liabilities of the Company, a cash payment from the Purchaser to the Company of $250,000, and the release to the Company of $100,000 in cash that had been funded by the Purchaser into escrow in accordance with the terms of the Asset Purchase Agreement.</P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The Company intends to use approximately $25,000 of the cash proceeds received in the transaction to repay amounts owed to Garden State Nutritionals, a division of Vitaquest International, Inc., and to utilize the remaining cash proceeds to fund future operating expenses of the Company as well as the costs, fees, and expenses of the Company that were incurred in connection with the Plan.</P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">In connection with the sale, the Company changed its name to &#147;Ashlin Development Corporation&#148; and assigned its rights to the name &#147;Health &amp; Nutrition Systems International, Inc.&#148; to the Purchaser. </P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">From and after the effective date of the Plan, the Company intends to engage in the business of seeking suitable commercial activities or a strategic alliance with an operating entity. </P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>This press release contains &#147;forward-looking&#148; statements. Any statements that are not statements of historical fact should be regarded as forward-looking statements. For example, the words &quot;intends,&quot; &quot;believes,&quot; &quot;anticipates,&quot; &quot;plans,&quot; and &quot;expects&quot; are intended to identify forward-looking statements. There are a number of important factors that could cause the Company&#146;s actual results to differ materially from those indicated by such forward-looking statements. These factors include, without limitation, those factors described in the Company&#146;s SEC reports, including its Annual Report on Form 10-KSB for the year ended December 31, 2003, as amended, and its Quarterly Report on Form 10-QSB for the quarter ended September 30, 2004. The Company does not undertake any obligation to update any such factors or to publicly announce the result of any revision to any of the forward-looking statements contained herein to reflect future events or developments.</I></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">For more information, contact:</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">At the Company:</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">James A. Brown, Chief Executive Officer</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">(561) 863-8446</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Email: <FONT COLOR=#0000FF><U>jabrown@gate.net</U></FONT></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Source: Ashlin Development Corporation</P>
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