NOTE 2:

RESTATEMENT OF CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS

The Company is filing this Amendment to our Quarterly Report on Form 10-Q/A for the three months ended March 31, 2018 due to the fact that the Company has determined that a material weakness in internal control relating to the recording of customer returns, allowances, discounts and incentives has resulted in an overstatement of year end income before provision of income taxes of approximately $445,000 as of December 31, 2017 and an overstatement of loss before income taxes of approximately $90,000 for the first quarter ending March 31, 2018. As of the date of this filing, the Company is working diligently to determine the impact of this material weakness will have on the Company’s Form 10-Q/A for the second quarter report ending June 30, 2018.

Following is the effect of the restatement on the Company’s March 31, 2018 unaudited financial statements:

	As Previously
Balance Sheet	Reported		Adjustment		As Restated

Current Assets:

Cash	$	7,272,479	$	-	$	7,272,479
Accounts Receivable		1,163,303		-		1,163,303
Inventories:
Raw Materials		8,466,419		-		8,466,419
Work in Process		11,265		-		11,265
Supplies		194,346		-		194,346
Finished Goods		2,557,545		-		2,557,545
Income Tax Receivable		242,044		92,912		334,956
Prepaid Expenses and Other Current Assets		116,404		-		116,404

Total Current Assets		20,023,805		92,912		20,116,717

Property, Plant and Equipment		4,236,170		-		4,236,170
Goodwill		413,280		-		413,280
Other Assets		406,549		-		406,549

TOTAL ASSETS	$	25,079,804	$	92,912	$	25,172,716

	As Previously
Balance Sheet	Reported		Adjustment		As Restated

Current Liabilities:
Short-Term Debt	$	797,254	$	-	$	797,254
Accounts Payable		569,533		-		569,533
Accrued Expenses		353,266		355,899		709,165

Total Current Liabilities		1,720,053		355,899		2,075,952

Deferred Income Tax Liability		111,983		(28,296)		83,687

Total Liabilities		1,832,036		327,603		2,159,639

Stockholders’ Equity:
Common Stock, $.30 Par Value, 2,000,000 Shares Authorized, 583,094 Shares Issued and 519,600 Shares Outstanding		174,928		-		174,928
Capital in Excess of Par Value		1,288,793		-		1,288,793
Retained Earnings		22,057,266		(234,691)		21,822,575
Treasury Stock, at Cost, 63,494 Shares		(273,219)		-		(273,219)

Total Stockholders’ Equity		23,247,768		(234,691)		23,013,077

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	25,079,804	$	92,912	$	25,172,716

	As Previously
Income Statement	Reported		Adjustment		As Restated

Net Sales	$	2,036,263	$	90,015	$	2,126,278

Costs and Expenses:
Cost of Goods Sold		1,813,782		-		1,813,782
Selling, General and Administrative Expenses		779,515		-		779,515
Amortization Expense		4,500		-		4,500

Total Costs and Expenses		2,597,797		-		2,597,797

Loss from Operations		(561,534)		90,015		(471,519)
Other (Expense) Income		(1,464)		-		(1,464)

Loss Before Income Taxes		(562,998)		90,015		(472,983)
Income Tax Benefit		149,194		(23,854)		125,340

Net Loss	$	(413,804)	$	66,161	$	(347,643)

Loss per Common Share (Basic and Diluted)	$	(0.80)	$	0.13	$	(0.67)

Dividend per Common Share	$	0.15	$	-	$	0.15

	As Previously
Cash Flow	Reported		Adjustment		As Restated

Cash Flows from Operating Activities:
Net Loss	$	(413,804)	$	66,161	$	(347,643)
Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Depreciation and Amortization		105,749		-		105,749
Decrease (Increase) in:
Accounts Receivable		1,135,493		(428,147)		707,346
Inventories		(2,022,296)		321,366		(1,700,930)
Prepaid Expenses and Other Current Assets		107,980		-		107,980
Income Tax Receivable		(149,194)		23,854		(125,340)
Other Assets		(61,134)		-		(61,134)
Increase (Decrease) in:
Accounts Payable		(69,360)		-		(69,360)
Accrued Liabilities		(214,457)		16,766		(197,691)

Net Cash Used in Operating Activities		(1,581,023)		-		(1,581,023)

Cash Flows from Investing Activities:
Purchase of Property, Plant and Equipment		(65,692)		-		(65,692)

Net Cash Used in Investing Activities		(65,692)		-		(65,692)

Cash Flows from Financing Activities:
Proceeds from Short-Term Debt		382,330		-		382,330
Payments on Short-Term Debt		(131,148)		-		(131,148)

Net Cash Provided by
Financing Activities		251,182		-		251,182

Net Decrease in Cash		(1,395,533)		-		(1,395,533)

Cash, at Beginning of Period		8,668,012		-		8,668,012

Cash, at End of Period	$	7,272,479	$	-	$	7,272,479

Supplemental Cash Flow Information:
Noncash financing activity:
Dividends Declared	$	77,940	$	-	$	77,940