LAW ENFORCEMENT ASSOCIATES CORPORATION
Condensed Consolidated Statements of Operations
For the Fiscal Year Ended December 31, 2010 and 2009
2010 2009
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Net sales $ 5,575,872 $ 11,945,501
Cost of sales 4,307,897 8,559,876
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Gross profit 1,267,975 3,385,625
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Research and development 254,858 296,667
Loss on impairment of long-lived assets 1,469,569 21,228
Operating expenses 2,761,733 2,686,063
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Total operating expenses 4,486,160 3,003,958
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Operating income (loss) (3,218,185) 381,667
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Other income (expense)
Loss on sale of assets (27,320) (10,373)
Other income 9,044 14,005
Interest income 365 1,276
Interest expense (312) (145,188)
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Total other income (expense) (18,223) (140,280)
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Net income (loss) before income taxes (3,236,408) 241,387
Income tax expense (951,011) (114,155)
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Net income (loss) $ (4,187,419) $ 127,232
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Weighted average number of common shares
subject to redemption 1,200,000 1,200,000
Net income (loss) per share common shares
subject to redemption, basic and diluted $ 0.00 $ 0.05
Weighted average number of common shares
outstanding, excluding shares subject to
redemption 24,582,436 24,582,436
Net income (loss) per common share, excluding
shares subject to redemption, basic and
diluted $ (0.17) $ 0.00
LAW ENFORCEMENT ASSOCIATES CORPORATION
Condensed Consolidated Balance Sheets
2010 2009
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Assets
Current Assets
Cash $ 79,128 $ 480,148
Trade accounts receivable (net of allowance
for doubtful accounts of $57,113 at December
31, 2010 and $55,000 at December 31, 2009) 423,336 982,505
Refundable income taxes - 150,000
Inventories 1,267,512 1,505,777
Prepaid expenses and other current assets 52,309 43,946
Deferred tax asset - current - 246,368
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Total current assets 1,822,285 3,408,744
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Property and Equipment - net 80,183 150,971
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Other Assets
Intangibles - net 643,506 2,324,809
Deferred tax asset, less current portion - 704,643
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Total other assets 643,506 3,029,452
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Total assets $ 2,545,974 $ 6,589,167
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2010 2009
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Liabilities and Stockholders' Equity
Current Liabilities
Trade accounts payable $ 772,610 $ 490,646
Accrued expenses:
Accrued salaries, wages and benefits 57,699 116,288
Contract settlement 20,000 100,000
Warranty provision 48,719 50,271
Other accrued expenses 14,116 65,072
Customer deposits 73,359 20,000
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Total current liabilities, before shares
subject to redemption 986,503 842,277
Common stock, subject to redemption,
1,200,000 shares, at redemption value 1,500,000 1,500,000
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Total current liabilities 2,486,503 2,342,277
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Total liabilities 2,486,503 2,342,277
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Stockholders' Equity
Common stock, $0.001 par value, 50,000,000
authorized, 25,782,436 (including 1,200,000
shares subject to redemption) issued and
outstanding at December 31, 2010 and
December 31, 2009 25,782 25,782
Treasury stock at cost, 595 shares of common
stock (625) (625)
Paid in capital in excess of par 4,995,595 4,995,595
Retained earnings/(accumulated deficit) (4,961,281) (773,862)
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Total stockholders' equity 59,471 4,246,890
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Total liabilities and stockholders' equity $ 2,545,974 $ 6,589,167
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Contact Information: Contact: Pfeiffer High Investor Relations, Inc. Geoff High 303-393-7044