The Company has also sold its Perf-Form segment that manufactured and marketed oil filters. Further, it discontinued manufacturing of its PlazCo segment and has outsourced the manufacturing of that segment’s wheel covers and other products for the aftermarket and OEM golf industry. In doing so, the Company incurred charges of approximately $250,000 in inventory, goodwill and other intangible asset impairment for the full year of fiscal 2011 for these segments, in addition to the charges noted above for the ATV Accessories segment.

The Company also announced that it has discovered an error in the way it accounted for certain equity compensation grants, which will require it to amend its previously-filed Annual Report on Form 10-K for the fiscal year ended September 30, 2010, and its Quarterly Reports on Form 10-Q for the first, second and third quarters of fiscal 2011. The error, which related to a non-cash compensation expense, caused the Company to understate the number of shares that were to have been issued and outstanding, having the effect of inaccurately reporting the basic and fully-diluted earnings per share for those periods.

Amending these previously-filed SEC reports will cause a delay in filing the Company’s Annual Report on Form 10-K for the year ended September 30, 2011. The Company expects to file its 2011 Form 10-K by February 14, 2012.

Preliminary, Unaudited Results for the Quarter and Year ended September 30, 2011.

 

For the three months ended September 30,
 

 

For the year ended September 30,

2011
2010 2011 2010

STATEMENT OF OPERATIONS
Sales $ 2,268,651 $ 3,429,231 $ 10,588,190 $ 11,944,460
Cost of goods sold 1,777,745 3,118,106 8,838,851 9,353,775
Inventory adjustments   1,514,461     592,784     1,995,379     592,784  
Gross profit (1,023,555 ) (281,659 ) (246,040 ) 1,997,901
 
Sales, general & admin 1,321,827 1,715,855 4,997,010 4,759,661
Goodwill impairment - - 110,186 -
Fraud expense - - - 134,774
Loss on sale of assets   107,390     (11,230 )   127,452     94,556  
Operating expense 1,429,217 1,704,625 5,234,648 4,988,991
 
Other expense   (56,010 )   (132,925 )   (128,785 )   (142,813 )
Net loss pre tax $ (2,508,782 ) $ (2,119,209 ) $ (5,609,473 ) $ (3,133,903 )
 
Net loss $ (2,272,682 ) $ (1,379,171 ) $ (4,200,422 ) $ (2,023,903 )
 
BALANCE SHEET
Total current assets $ 3,335,774 $ 6,528,444
Net fixed and intangible assets 9,238,648 10,190,581
Other assets   1,521     7,413  
Total assets $ 12,575,943 $ 16,726,438
 
Total current liabilities $ 7,261,525 $ 5,565,895
Long term liabilities   2,426,545     4,065,279  
Total liabilities $ 9,688,070 $ 9,631,174
 
Net worth $ 2,887,873   $ 7,095,264  
 

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