Law Enforcement Associates Corporation
Consolidated Statement of Operations
March 31, March 31,
2008 2007
(Compiled) (Compiled)
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Net sales $ 1,979,659 $ 1,765,054
Cost of sales 1,172,651 989,862
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Gross profit 807,008 775,192
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Research and development 9,204 24,072
Operating expenses 744,306 679,756
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Total operating expenses 753,510 703,828
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Net income before other income (expense)
and provision for income taxes 53,498 71,364
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Other income (expense):
Interest income (expense), net (23,508) (372)
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Total other income (expense) (23,508) (372)
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Net income before provision for income taxes 29,990 70,992
Provision for income taxes 11,396 16,089
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Net income 18,594 54,903
Retained earnings beginning of period (972,947) 58,091
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Retained earnings end of period $ (954,353) $ 112,994
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Net income per weighted average share, basic $ 0.00 $ 0.00
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Weighted average number of shares 25,782,433 25,252,433
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Law Enforcement Associates Corporation
Consolidated Balance Sheet
March 31, March 31,
2008 2007
Assets (Compiled) (Audited)
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Current assets:
Cash $ 48,229 $ 325,244
Trade accounts receivable (net of allowance
for doubtful accounts of $20,000 at March 31,
2008 and $33,205 at December 31, 2007) 1,204,622 713,067
Inventories 1,591,211 1,256,346
Prepaid expenses 31,740 19,083
Prepaid insurance 43,832 19,104
Deferred tax asset-current 757,943 769,338
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Total current assets 3,677,577 3,102,182
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Property and equipment, net 250,765 257,025
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Other assets:
Intangibles, net 2,826,892 2,883,542
Deferred tax asset less current portion 296,147 296,147
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Total other assets 3,123,039 3,179,689
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Total assets $ 7,051,381 $ 6,538,896
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Liabilities and Stockholders' Equity
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Current liabilities:
Trade accounts payable 685,393 593,515
Line of credit 525,000 200,000
Accrued expenses:
Compensation and payroll taxes 93,298 120,304
Profit sharing plan 80,422 61,796
Warranty provision 54,591 59,911
Professional fees 112,250 92,862
Customer deposits 70,307 24,533
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Total current liabilities 1,621,261 1,152,921
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Total liabilities 1,621,261 1,152,921
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Common stock, subject to possible redemption
1,200,000 shares, at redemption value 1,363,721 1,338,170
Stockholders' equity:
Common stock, $0.001 par value, 50,000,000
authorized, 25,782,433 issued and
outstanding at March 31, 2008 and
December 31, 2007 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) (954,353) (972,947)
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Total stockholders' equity 4,066,399 4,047,805
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Total liabilities and stockholders' equity $ 7,051,381 $ 6,538,896
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Contact Information: CONTACT: Pfeiffer High Investor Relations, Inc. Geoff High 303-393-7044