LAW ENFORCEMENT ASSOCIATES CORPORATION
Condensed Consolidated Statements of Operations
For the Three Months Ended September 30, 2010 and 2009
September 30, September 30,
2010 2009
(Unaudited) (Unaudited)
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Net sales $ 1,350,015 $ 1,920,551
Cost of sales 969,875 1,288,833
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Gross profit 380,140 631,718
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Research and development 65,917 63,762
Loss on impairment of long-lived assets 602,497 -
Operating expenses 731,464 723,980
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Total operating expenses 1,399,878 787,742
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Operating loss (1,019,738) (156,024)
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Other income (expense)
Other income 4,626 1,287
Interest income 15 787
Interest expense - (8,524)
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Total other income (expense) 4,641 (6,450)
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Net loss before income taxes (1,015,097) (162,474)
Income tax (expense) benefit (1,257,672) 63,501
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Net loss $ (2,272,769) $ (98,973)
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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 $ - $ 0.01
Weighted average number of common shares
outstanding, excluding shares subject to
redemption 24,582,436 24,582,436
Net loss per common share, excluding shares
subject to redemption, basic and diluted $ (0.09) $ (0.00)
LAW ENFORCEMENT ASSOCIATES CORPORATION
Condensed Consolidated Statements of Operations
For the Nine Months Ended September 30, 2010 and 2009
September 30, September 30,
2010 2009
(Unaudited) (Unaudited)
------------- -------------
Net sales $ 4,309,294 $ 10,458,950
Cost of sales 3,128,853 7,143,142
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Gross profit 1,180,441 3,315,808
------------- -------------
Research and development 216,089 239,861
Loss on impairment of long-lived assets 602,497 -
Operating expenses 2,179,222 1,969,723
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Total operating expenses 2,997,808 2,209,584
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Operating income (loss) (1,817,367) 1,106,224
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Other income (expense)
Loss on sale of assets (17,823) (8,361)
Other income 8,042 11,625
Interest income 364 812
Interest expense - (145,188)
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Total other income (expense) (9,417) (141,112)
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Net income (loss) before income taxes (1,826,784) 965,112
Income tax expense (951,011) (372,045)
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Net income (loss) $ (2,777,795) $ 593,067
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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 $ - $ 0.05
Weighted average number of common shares
outstanding, excluding shares subject to
redemption 24,582,436 24,582,436
Net loss per common share, excluding shares
subject to redemption, basic and diluted $ (0.11) $ 0.02
LAW ENFORCEMENT ASSOCIATES CORPORATION
Condensed Consolidated Balance Sheets
September 30, December 31,
2010 2009
Assets (Unaudited) (Audited)
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Current Assets
Cash $ 234,075 $ 480,148
Trade accounts receivable (net of
allowance for doubtful accounts of
$55,000 at September 30, 2010 and
December 31, 2009) 786,160 982,505
Refundable income taxes - 150,000
Inventories 1,581,738 1,505,777
Prepaid expenses 94,826 43,946
Deferred tax asset - current - 246,368
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Total current assets 2,696,799 3,408,744
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Property and Equipment - net 108,094 150,971
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Other Assets
Intangibles - net 1,546,799 2,324,809
Deferred tax asset, less current portion - 704,643
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Total other assets 1,546,799 3,029,452
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Total assets $ 4,351,692 $ 6,589,167
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LAW ENFORCEMENT ASSOCIATES CORPORATION
Condensed Consolidated Balance Sheets
September 30, December 31,
2010 2009
Liabilities and Stockholders' Equity (Unaudited) (Audited)
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Current Liabilities
Trade accounts payable $ 918,073 $ 490,646
Accrued expenses:
Accrued salaries, wages and benefits 157,703 116,288
Contract settlement 30,000 100,000
Warranty provision 19,648 50,271
Other accrued expenses 15,077 65,072
Customer deposits 242,096 20,000
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Total current liabilities, before shares
subject to redemption 1,382,597 842,277
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Common stock, subject to redemption,
1,200,000 shares, at redemption value 1,500,000 1,500,000
Total current liabilities 2,882,597 2,342,277
------------- -------------
Total liabilities 2,882,597 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 September 30,
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) (3,551,657) (773,862)
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Total stockholders' equity 1,469,095 4,246,890
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Total liabilities and stockholders' equity $ 4,351,692 $ 6,589,167
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Contact Information: Contact: Pfeiffer High Investor Relations, Inc. Geoff High 303-393-7044