Law Enforcement Associates Transitions to Profitability on 39% Increase in Full-Year Revenue; Fourth Quarter Revenue Increases 92% Versus Prior-Year Period
Market Wire, March, 2009
Law Enforcement Associates Corporation
Consolidated Statement of Operations
Three Months ended December 31, 2008 and December 31, 2007
December 31, December 31,
2008 2007
------------ ------------
Revenues $ 3,020,587 $ 1,574,925
Cost of Goods Sold 2,242,677 1,465,590
------------ ------------
Gross profit 777,910 109,335
------------ ------------
Research And Development 28,926 154,879
Operating Expenses 550,692 1,211,730
------------ ------------
Total Operating Expenses 579,618 1,366,609
------------ ------------
Operating income (loss) 198,292 (1,257,274)
------------ ------------
Other Income (Expense)
Loss on sale of assets - -
Other income 2,299 1,431
Interest income 68 3,700
Interest (expense) (1,736) (1,160)
Factoring fees (25,921) -
Interest accretion (25,551) -
------------ ------------
Total other income (expense) (50,841) 3,971
------------ ------------
Net income (loss) before provision for income
taxes 147,451 (1,253,303)
Provision for income taxes (benefit) 23,655 (469,766)
------------ ------------
Net income (loss) $ 123,796 $ (783,537)
============ ============
Earnings per weighted average share, basic and
diluted $ 0.00 $ (0.03)
------------ ------------
Law Enforcement Associates Corporation
Consolidated Statement of Operations
Twelve Months ended December 31, 2008 and December 31, 2007
December 31, December 31,
2008 2007
------------ ------------
Revenues $ 9,246,170 $ 6,666,479
Cost of Goods Sold 6,193,180 4,681,694
------------ ------------
Gross profit 3,052,990 1,984,785
------------ ------------
Research And Development 81,327 227,595
Operating Expenses 2,728,271 3,406,537
------------ ------------
Total Operating Expenses 2,809,598 3,634,132
------------ ------------
Operating income (loss) 243,392 (1,649,347)
------------ ------------
Other Income (Expense):
Loss on sale of assets (43,666) -
Other income 14,234 1,431
Interest income 1,507 11,029
Interest (expense) (15,170) (2,117)
Factoring fees (25,921) -
Interest accretion (102,204) -
------------ ------------
Total other income (expense) (171,220) 10,343
------------ ------------
Net loss before income taxes 72,172 (1,639,004)
Income tax provision (benefit) 319 (629,258)
------------ ------------
Net loss $ 71,853 $ (1,009,746)
============ ============
Earnings per weighted average share, basic and
diluted $ 0.00 $ (0.04)
============ ============
Weighted average number of shares, basic and
diluted 25,782,433 25,423,365
------------ ------------
Law Enforcement Associates Corporation
Consolidated Balance Sheets
December 31, 2008 and December 31, 2007
December 31, December 31,
2008 2007
ASSETS (Audited) (Audited)
------------ ------------
CURRENT ASSETS
Cash $ 254,705 $ 325,244
Trade accounts receivable (net of allowance
for doubtful accounts of $30,000 and
$33,205 at December 31, 2008 and
December 31, 2007, respectively) 2,011,293 713,067
Inventories 1,368,049 1,256,346
Prepaid expenses 45,629 38,187
Deferred tax asset-current 244,741 769,338
------------ ------------
Total current assets 3,924,417 3,102,182
------------ ------------
PROPERTY AND EQUIPMENT - net 170,027 257,025
------------ ------------
OTHER NON-CURRENT ASSETS
Intangibles-net 2,174,564 2,883,542
Assets held for sale 335,505 -
Deferred tax asset-net of current portion 820,425 296,147
------------ ------------
Total non-current assets 3,330,494 3,179,689
------------ ------------
Total assets $ 7,424,938 $ 6,538,896
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $ 331,451 $ 593,515
Line of credit - 200,000
Accrued expenses 464,106 334,873
Factor line of credit 1,038,809 -
Customer deposits 30,540 24,533
------------ ------------
Total current liabilities 1,864,906 1,152,921
------------ ------------
Total liabilities 1,864,906 1,152,921
------------ ------------
Common stock, subject to possible redemption, 1,440,374 1,338,170
1,200,000 shares, at redemption value ------------ ------------
STOCKHOLDERS' EQUITY
Common stock, $0.001 par value, 50,000,000
authorized, 25,782,433 issued and
outstanding at December 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) (901,094) (972,947)
------------ ------------
Total stockholders' equity 4,119,658 4,047,805
------------ ------------
Total liabilities and stockholders' equity $ 7,424,938 $ 6,538,896
------------ ------------
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