Restatement of Previously Issued Financial Statements

Certain amounts appearing in the condensed consolidated financial statements as of September 30, 2014 and for the three and six month periods then ended have been restated to correct an error related to the recording of inventories and related cost of goods sold and accounts payable due to cut-off errors within the operations of the Company’s 50% owned Hong Kong Joint Venture. Those errors impacted the Company’s reported Investment in the Hong Kong Joint Venture and Equity in Loss of Joint Venture. The following is a summary of the financial statement line items affected by the restatement.

	Three months ended September 30,
	2014 As Previously Stated		Adjustment		2014 (Restated)
Equity in (loss) earnings of Joint Venture	$	(77,850)	$	(158,052)	$	(235,902)
Net Loss		(954,212)		(158,052)		(1,112,264)
Comprehensive Loss		(975,390)		(158,052)		(1,133,442)
Investment in Hong Kong Joint Venture		14,080,131		(158,052)		13,922,079
Total assets		21,950,388		(158,052)		21,792,336
Retained earnings		6,738,055		(158,052)		6,580,003
Total shareholders’ equity		20,854,843		(158,052)		20,696,791
Total liabilities and shareholders’ equity		21,950,388		(158,052)		21,792,336

	Six months ended September 30,
	2014 As Previously Stated		Adjustment		2014 (Restated)
Equity in (loss) earnings of Joint Venture	$	(90,377)	$	(158,052)	$	(248,429)
Net Loss		(1,697,061)		(158,052)		(1,855,113)
Comprehensive Loss		(1,679,371)		(158,052)		(1,837,423)

The correction to the net loss per share for the three and six month periods ended September 30, 2014 resulted in an increase from $0.41 to $0.48 and from $0.73 to $0.80, respectively.