Joint Venture

The Company and its co-venturer, a Hong Kong corporation, each own a 50% interest in a Hong Kong joint venture, Eyston Company Limited (the “Hong Kong Joint Venture”), that manufactures security products in its facilities located in the People’s Republic of China. The following represents summarized balance sheet and income statement information of the Hong Kong Joint Venture as of and for the three months ended June 30, 2015 and 2014:

	2015		2014
Net sales	$	4,612,505	$	3,664,900
Gross profit		366,307		939,947
Net loss		(784,927)		(121,206)
Total current assets		11,740,633		17,237,635
Total assets		31,066,085		35,671,149
Total current liabilities		6,024,586		7,359,434

During the three months ended June 30, 2015 and 2014, the Company purchased $2,753,772 and $1,076,376, respectively, of products directly from the Hong Kong Joint Venture for resale. For the three month period ended June 30, 2015 and 2014, the Company has adjusted its loss of the Joint Venture to reflect a decrease of $105,329 and $48,076, respectively, to eliminate inter-Company profit on purchases held by the Company in inventory.