SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
Aug. 31, 2011
Notes to Financial Statements
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Nature of Business Southern Products, Inc. (“Southern” or the “Company”) was incorporated in Nevada on February 23, 2010. Since April 2011, we have been in the business of designing, assembling and marketing consumer electronics product, primarily flat screen high-definition televisions using LCD and LED technologies. Through August 31, 2011, we have four LCD widescreen televisions on the market. Basis of Presentation The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. Accounting Basis The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting). The Company has adopted a February 28 fiscal year end. Use of Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Location of Operations Southern Products DBA Sigmac USA currently assembles its televisions in its plant in the City of Industry for sale and distribution throughout the United States. All televisions are shipped as parts from the contract manufacturing and parts providers to Sigmac USA for assembly. We also import fully assembled televisions from China as and when demand exceeds our ability to assemble sufficient final product at our facility in California. Inventory Inventory, consisting of television parts and accessories and finished televisions, is valued at the lower of cost and net realizable value. Customer Samples Customer samples are invoiced to the customer as sales but voided upon return of the sample to Sigmac USA. Customer sample sales are carried as separate account receivables and returned to inventory upon their return and the voiding of the invoice. Revenue Recognition The Company recognizes revenue when products are fully delivered based upon the PO delivery point of sales or services have been provided and collection is reasonably assured. Sales Commissions Sales commissions are earned at time of sale of product or service. The sale is recognized upon delivery of the merchandise to the customer as specified in the customer’s PO or at the time service is received. Advertising and Promotional Costs The Company’s policy regarding advertising and promotional expenses is to expense those costs when incurred. The Company incurred advertising and promotional expense of $218,931 and $0 during the periods ended August 31, 2011 and 2010, respectively. Related Parties Policy The Company’s policy is to disclose all compensation to related parties. Compensation was not paid to Edward Wang. Edward Meadows was paid $29,000 during the period ended August 31, 2011. Through August 31, 2011, we owed NIVS USA Corp. $377,119. NIVS USA Corp. provided us with product inventory through June 2011 and is affiliated with our director and COO Edward Wang. Financial Instruments The carrying value of the Company's financial instruments approximates their fair value because of the short maturity of these instruments. Litigation Southern Products, Inc. is not currently involved in any litigation as of August 31, 2011. Income Taxes Income taxes are accounted for under the assets and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Basic Income (Loss) Per Share Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of August 31, 2011. Impairment of Long-Lived Assets The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. Stock-Based Compensation Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options. As of August 31, 2011, the Company has not issued any stock-based payments to its employees. Dividends The Company has not adopted any policy regarding payment of dividends. No dividends have been paid during any of the periods shown. Recent Accounting Pronouncements We are not aware of any recent pronouncements regarding accounting standards or interpretations issued or recently adopted that are expected to have a material impact on the Company’s financial position, operations or cash flows.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Aug. 31, 2011

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Southern Products, Inc. (“Southern” or the “Company”) was incorporated in Nevada on February 23, 2010. Since April 2011, we have been in the business of designing, assembling and marketing consumer electronics product, primarily flat screen high-definition televisions using LCD and LED technologies. Through August 31, 2011, we have four LCD widescreen televisions on the market.

Basis of Presentation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars.

Accounting Basis

The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting). The Company has adopted a February 28 fiscal year end.

Use of Estimates and Assumptions

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Location of Operations

Southern Products DBA Sigmac USA currently assembles its televisions in its plant in the City of Industry for sale and distribution throughout the United States. All televisions are shipped as parts from the contract manufacturing and parts providers to Sigmac USA for assembly. We also import fully assembled televisions from China as and when demand exceeds our ability to assemble sufficient final product at our facility in California.

Inventory

Inventory, consisting of television parts and accessories and finished televisions, is valued at the lower of cost and net realizable value.

Customer Samples

Customer samples are invoiced to the customer as sales but voided upon return of the sample to Sigmac USA. Customer sample sales are carried as separate account receivables and returned to inventory upon their return and the voiding of the invoice.

Revenue Recognition

The Company recognizes revenue when products are fully delivered based upon the PO delivery point of sales or services have been provided and collection is reasonably assured.

Sales Commissions

Sales commissions are earned at time of sale of product or service. The sale is recognized upon delivery of the merchandise to the customer as specified in the customer’s PO or at the time service is received.

Advertising and Promotional Costs

The Company’s policy regarding advertising and promotional expenses is to expense those costs when incurred. The Company incurred advertising and promotional expense of $218,931 and $0 during the periods ended August 31, 2011 and 2010, respectively.

Related Parties Policy

The Company’s policy is to disclose all compensation to related parties. Compensation was not paid to Edward Wang. Edward Meadows was paid $29,000 during the period ended August 31, 2011. Through August 31, 2011, we owed NIVS USA Corp. $377,119. NIVS USA Corp. provided us with product inventory through June 2011 and is affiliated with our director and COO Edward Wang.

Financial Instruments

The carrying value of the Company's financial instruments approximates their fair value because of the short maturity of these instruments.

Litigation

Southern Products, Inc. is not currently involved in any litigation as of August 31, 2011.

Income Taxes

Income taxes are accounted for under the assets and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled.

Basic Income (Loss) Per Share

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of August 31, 2011.

Impairment of Long-Lived Assets

The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell.

Stock-Based Compensation

Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options. As of August 31, 2011, the Company has not issued any stock-based payments to its employees.

Dividends

The Company has not adopted any policy regarding payment of dividends. No dividends have been paid during any of the periods shown.

Recent Accounting Pronouncements

We are not aware of any recent pronouncements regarding accounting standards or interpretations issued or recently adopted that are expected to have a material impact on the Company’s financial position, operations or cash flows.