<table>
<tbody><tr style="vertical-align: bottom">
    <td colspan="9" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif"><u>STATEMENTS
    OF OPERATIONS</u></font></td></tr>
<tr style="vertical-align: bottom">
    <td colspan="9" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom">
    <td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td colspan="7" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><font style="font-family: Times New Roman, Times, Serif">For
    the Years Ended</font></td></tr>
<tr style="vertical-align: bottom">
    <td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td colspan="3" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-family: Times New Roman, Times, Serif">December
    31, 2012</font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td colspan="3" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif">December
    31, 2011</font></td></tr>
<tr style="vertical-align: bottom">
    <td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td colspan="3" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif">(Unaudited)</font></td><td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td colspan="3" style="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font-family: Times New Roman, Times, Serif">(Unaudited)</font></td></tr>
<tr style="vertical-align: bottom">
    <td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td colspan="3" style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td colspan="3" style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 56%; font-family: Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">Net
    sales</font></td><td style="width: 8%; font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">$</font></td><td style="width: 12%; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">319,413</font></td><td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="width: 8%; font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">$</font></td><td style="width: 12%; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">266,307</font></td><td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="font-family: Times New Roman, Times, Serif; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">Cost
    of sales</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">88,434</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">63,755</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">Gross
    profit</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">230,979</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">202,552</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">Operating
    expenses:</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Selling,
    general and administrative expenses</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">603,628</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">655,678</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Impairment
    of assets</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">—&nbsp;&nbsp;</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">19,582</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">Total
    operating expenses</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">603,628</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">675,260</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">Loss
    from operations</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">(372,649</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">)</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">(472,708</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">Other
    income (expense):</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Interest
    income</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">508</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">3,510</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Dividend
    income</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">70,582</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">33,788</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Interest
    expense</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">(112,987</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">)</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">(18,781</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Loss
    on sale of securities</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">(66,205</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">)</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">(12,207</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Other
    income</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">—&nbsp;&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">161,500</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Gain
    on reduction of liabilities</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">54,269</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">173,571</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Settlement
    expense</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">(73,758</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">)</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">—&nbsp;&nbsp;</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">Total
    other income (expense)</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">(127,591</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">)</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">341,381</font></td><td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">Loss
    from operations before income taxes</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">(500,240</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">)</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">(131,327</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">Provision
    for income taxes</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">—&nbsp;&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">—&nbsp;&nbsp;</font></td><td style="font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td><td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt"><font style="font-family: Times New Roman, Times, Serif">Net
    loss</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">(500,240</font></td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">)</font></td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"><font style="font-family: Times New Roman, Times, Serif">&nbsp;</font></td>
    <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">$</font></td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right"><font style="font-family: Times New Roman, Times, Serif">(131,327</font></td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"><font style="font-family: Times New Roman, Times, Serif">)</font></td></tr>
</tbody></table>
<table>
<tbody><tr>
<td><font><u>STATEMENTS
    OF OPERATIONS</u></font></td></tr>
<tr>
<td><font> </font></td></tr>
<tr>
<td><font> </font></td><td><font> </font></td>
<td><font>For
    the Years Ended</font></td></tr>
<tr>
<td><font> </font></td><td><font> </font></td>
<td><font>December
    31, 2012</font></td><td><font> </font></td>
<td><font>December
    31, 2011</font></td></tr>
<tr>
<td><font> </font></td><td><font> </font></td>
<td><font>(Unaudited)</font></td><td><font> </font></td>
<td><font>(Unaudited)</font></td></tr>
<tr>
<td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td>
<td><font> </font></td></tr>
<tr>
<td><font>Net
    sales</font></td><td><font> </font></td>
<td><font>$</font></td><td><font>319,413</font></td><td><font> </font></td><td><font> </font></td>
<td><font>$</font></td><td><font>266,307</font></td><td><font> </font></td></tr>
<tr>
<td><font>Cost
    of sales</font></td><td><font> </font></td>
<td><font> </font></td><td><font>88,434</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>63,755</font></td><td><font> </font></td></tr>
<tr>
<td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>Gross
    profit</font></td><td><font> </font></td>
<td><font> </font></td><td><font>230,979</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>202,552</font></td><td><font> </font></td></tr>
<tr>
<td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>Operating
    expenses:</font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>  Selling,
    general and administrative expenses</font></td><td><font> </font></td>
<td><font> </font></td><td><font>603,628</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>655,678</font></td><td><font> </font></td></tr>
<tr>
<td><font>  Impairment
    of assets</font></td><td><font> </font></td>
<td><font> </font></td><td><font>—  </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>19,582</font></td><td><font> </font></td></tr>
<tr>
<td><font>Total
    operating expenses</font></td><td><font> </font></td>
<td><font> </font></td><td><font>603,628</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>675,260</font></td><td><font> </font></td></tr>
<tr>
<td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>Loss
    from operations</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(372,649</font></td><td><font>)</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(472,708</font></td><td><font>)</font></td></tr>
<tr>
<td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>Other
    income (expense):</font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>  Interest
    income</font></td><td><font> </font></td>
<td><font> </font></td><td><font>508</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>3,510</font></td><td><font> </font></td></tr>
<tr>
<td><font>  Dividend
    income</font></td><td><font> </font></td>
<td><font> </font></td><td><font>70,582</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>33,788</font></td><td><font> </font></td></tr>
<tr>
<td><font>  Interest
    expense</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(112,987</font></td><td><font>)</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(18,781</font></td><td><font>)</font></td></tr>
<tr>
<td><font>  Loss
    on sale of securities</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(66,205</font></td><td><font>)</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(12,207</font></td><td><font>)</font></td></tr>
<tr>
<td><font>  Other
    income</font></td><td><font> </font></td>
<td><font> </font></td><td><font>—  </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>161,500</font></td><td><font> </font></td></tr>
<tr>
<td><font>  Gain
    on reduction of liabilities</font></td><td><font> </font></td>
<td><font> </font></td><td><font>54,269</font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>173,571</font></td><td><font> </font></td></tr>
<tr>
<td><font>  Settlement
    expense</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(73,758</font></td><td><font>)</font></td><td><font> </font></td>
<td><font> </font></td><td><font>—  </font></td><td><font> </font></td></tr>
<tr>
<td><font>Total
    other income (expense)</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(127,591</font></td><td><font>)</font></td><td><font> </font></td>
<td><font> </font></td><td><font>341,381</font></td><td><font> </font></td></tr>
<tr>
<td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>Loss
    from operations before income taxes</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(500,240</font></td><td><font>)</font></td><td><font> </font></td>
<td><font> </font></td><td><font>(131,327</font></td><td><font>)</font></td></tr>
<tr>
<td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>Provision
    for income taxes</font></td><td><font> </font></td>
<td><font> </font></td><td><font>—  </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font>—  </font></td><td><font> </font></td></tr>
<tr>
<td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td><td><font> </font></td>
<td><font> </font></td><td><font> </font></td><td><font> </font></td></tr>
<tr>
<td><font>Net
    loss</font></td><td><font> </font></td>
<td><font>$</font></td><td><font>(500,240</font></td><td><font>)</font></td><td><font> </font></td>
<td><font>$</font></td><td><font>(131,327</font></td><td><font>)</font></td></tr>
</tbody></table>