1. Advanced Valuation Analytics

2. Balance Sheet 200220032004200520062007 Current Assets- Cash and Equivalents$500,000$550,000$600,000$450,000$300,000$125,000 Trade Receivables4,000,0004,500,0005,000,0005,500,0004,200,0003,100,000 Inventory2,400,0002,600,0002,750,0002,850,0003,000,0002,600,000 Other Current Assets200,000 Total Current Assets7,100,0007,850,0008,550,0009,000,0007,700,0006,025,000 Property & Equipment8,085,885 Other Assets933,346 Total Assets$16,119,231$16,869,231$17,569,231$18,019,231$16,719,231$15,044,231 Current Liabilities$3,000,000$3,500,000$4,500,000$6,000,000$7,000,000$6,500,000 Long-Term Liabilities5,000,0004,500,0004,000,0003,500,000 Other Liabilities000000 Total Liabilities$8,000,000 $8,500,000$9,500,000$10,500,000$10,000,000 Equity$8,119,231$8,869,231$9,069,231$8,519,231$6,219,231$5,044,231 Total Liabilities & Equity$16,119,231$16,869,231$17,569,231$18,019,231$16,719,231$15,044,231 Unadjusted Equity$8,119,231$8,869,231$9,069,231$8,519,231$6,219,231$5,044,231 Total Adjustments to Equity$0

3. Advanced Valuation Analytics Income Statement 200220032004200520062007 Net Sales$30,000,000$33,000,000$32,000,000$30,000,000$26,500,000$23,000,000 Cost of Sales21,500,00024,500,00024,000,00020,000,000 Gross Margin8,500,000 8,000,00010,000,0006,500,0003,000,000 Operating Expenses4,900,0004,950,0003,600,0004,000,0004,500,0004,300,000 Depreciation1,100,0001,350,0001,900,000 2,000,0001,900,000 Other-000000 Operating Profit2,500,0002,200,0002,500,0004,100,0000(3,200,000) Interest Expense770,000930,0001,050,0001,030,000600,000450,000 Other Income (Loss)25,000 Income Before Taxes1,755,0001,295,0001,475,0003,095,000(575,000)(3,625,000) Income Taxes737,100543,900619,5001,299,900(241,500)(1,522,500) Net Income$1,017,900$751,100$855,500$1,795,100($333,500)($2,102,500) EBI$1,450,000$1,276,000$1,450,000$2,378,000$0($1,856,000) EBIT$2,500,000$2,200,000$2,500,000$4,100,000$0($3,200,000) EBITDA$3,600,000$3,550,000$4,400,000$6,000,000$2,000,000($1,300,000) Net Income (Unadj)$959,306$775,000$865,000$4,021,100$926,500($3,625,000) Depreciation/Amort.1,100,0001,350,0001,900,000 2,000,0001,900,000 Changes Work Cap908,330181,816(293,408)(3,972,523)(807,008)4,027,840 Investing Act(1,604,564)(7,918,481)(801,652)(785,937)(1,098,795)(1,767,503) Financing Act(1,967,445)6,331,404(2,005,511)(764,264)(1,020,697)(535,337) Dividends000000 Cash Flow($604,373)$719,739($335,571)$398,376$0

4. Advanced Valuation Analytics Net Sales vs EBITDA

5. Advanced Valuation Analytics Gradual Increase

6. Advanced Valuation Analytics Erratic History

7. Advanced Valuation Analytics Hockey Stick

8. Advanced Valuation Analytics Effect of Debt on Value