LAW ENFORCEMENT ASSOCIATES CORPORATION
Consolidated Statements of Operations
for the Three Months Ended September 30, 2009 and 2008
2009 2008
(Unaudited) (Unaudited)
----------- -----------
Net sales $ 1,920,551 $ 2,397,224
Cost of sales 1,288,833 1,450,593
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Gross profit 631,718 946,631
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Research and development 63,762 12,509
Operating expenses 723,980 771,035
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Total operating expenses 787,742 783,544
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Income (loss) from operations (156,024) 163,087
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Other income (expense)
Loss on sale of assets 0 0
Other income 1,287 5,329
Interest income 787 119
Interest expense (8,524) (28,042)
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Total other income (expense) (6,450) (22,594)
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Net income (loss) before income taxes (162,474) 140,493
Income tax (expense) benefit 63,501 (44,092)
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Net income (loss) $ (98,973) $ 96,401
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Net income (loss) per weighted average share,
basic and diluted $ (0.00) $ 0.00
=========== ===========
Weighted average number of shares, basic and
diluted 25,782,436 25,782,436
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LAW ENFORCEMENT ASSOCIATES CORPORATION
Consolidated Statements of Operations
for the Nine Months Ended September 30, 2009 and 2008
2009 2008
(Unaudited) (Unaudited)
----------- -----------
Net sales $10,458,950 $ 6,225,583
Cost of sales 7,143,142 3,950,503
----------- -----------
Gross profit 3,315,808 2,275,080
----------- -----------
Research and development 239,861 52,401
Operating expenses 1,969,723 2,177,579
----------- -----------
Total operating expenses 2,209,584 2,229,980
----------- -----------
Income from operations 1,106,224 45,100
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Other income (expense)
Loss on sale of assets (8,361) (43,666)
Other income 11,625 11,935
Interest income 812 1,439
Interest expense (145,188) (90,087)
----------- -----------
Total other income (expense) (141,112) (120,379)
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Net income (loss) before income taxes 965,112 (75,279)
Income tax (expense) benefit (372,045) 23,336
----------- -----------
Net income (loss) $ 593,067 $ (51,943)
=========== ===========
Net income (loss) per weighted average share,
basic and diluted $ 0.02 $ (0.00)
=========== ===========
Weighted average number of shares, basic and
diluted 25,782,436 25,782,436
=========== ===========
LAW ENFORCEMENT ASSOCIATES CORPORATION
Consolidated Balance Sheets
September December
30, 31,
2009 2008
Assets (Unaudited) (Audited)
----------- -----------
Current assets:
Cash $ 747,255 $ 254,705
Trade accounts receivable (net of allowance for
doubtful accounts of $30,000 at September 30,
2009 and December 31, 2008, respectively) 1,021,583 2,011,293
Accounts receivable - other 49,253 0
Refundable income taxes 32,500 0
Inventories 1,598,132 1,368,049
Prepaid expenses 235,282 45,629
Deferred tax asset-current 244,626 244,741
----------- -----------
Total current assets 3,928,631 3,924,417
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Property and equipment, net 166,599 170,027
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Other assets:
Intangibles, net 2,051,364 2,174,564
Assets held for sale 335,505 335,505
Deferred tax asset less current portion 565,995 820,425
----------- -----------
Total other assets 2,952,864 3,330,494
----------- -----------
Total assets $ 7,048,094 $ 7,424,938
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LAW ENFORCEMENT ASSOCIATES CORPORATION
Consolidated Balance Sheets
September December
30, 31,
2009 2008
Liabilities and Stockholders' Equity (Unaudited) (Audited)
----------- -----------
Current liabilities:
Trade accounts payable $ 506,790 $ 331,451
Line of credit 0 1,038,809
Accrued expenses:
Compensation and payroll taxes 103,350 126,695
Profit sharing plan 30,263 76,769
Warranty provision 52,426 58,809
Other accrued expenses 109,686 97,205
Deferred expenses 27,897 104,628
Customer deposits 4,957 30,540
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Total current liabilities, before shares
subject to redemption 835,369 1,864,906
----------- -----------
Common stock, subject to redemption of
1,200,000 shares, at redemption value 1,500,000 0
Total current liabilities 2,335,369 1,864,906
----------- -----------
Total liabilities 2,335,369 1,864,906
----------- -----------
Commitments and Contingencies
Common stock, subject to possible redemption of
1,200,000 shares, at redemption value 0 1,440,374
----------- -----------
Stockholders' equity:
Common stock, $0.001 par value, 50,000,000
authorized, 25,782,436 issued and outstanding
at September 30, 2009 and December 31, 2008 25,782 25,782
Treasury stock at cost, 595 shares of common
stock held by the Company (625) (625)
Paid in capital in excess of par 4,995,595 4,995,595
Retained earnings/(accumulated deficit) (308,027) (901,094)
----------- -----------
Total stockholders' equity 4,712,725 4,119,658
----------- -----------
Total liabilities and stockholders' equity $ 7,048,094 $ 7,424,938
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Contact Information: Contact: Pfeiffer High Investor Relations, Inc. Geoff High 303-393-7044