INCOME STATEMENT Period Ending Current Period Prior Period Current Period Prior Period HORIZONTAL ANALYSIS VERTICAL ANALYSIS REVENUE 09/30/18 10/01/17 $ Change % Change VARIANCE Total Revenue 24,719,500 22,386,800 2,332,700 10.42% 100.00% 100.00% 0.00% Cost of Revenue 10,174,500 9,034,300 1,140,200 12.62% 41.16% 40.36% .80% GROSS PROFIT 14,545,000 13,352,500 1,192,500 8.93% 58.84% 59.64% -1% OPERATING EXPENSES Research Development 0.00% 0.00% 0.00% 0.00% Selling General and Administrative 9,491,500 8,444,300 1,047,200 12.40% 38.40% 37.72% 0.68% Non-Recurring 224,400 153,500 70,900 46.19% 0.91% 0.69% 0.22% Others 1,247,000 1,011,400 235,600 23.29% 5.04% 4.52% 0.53% Total Operating Expenses 10,962,900 9,609,200 1,353,700 14.09% 44.35% 42.92% 1.43% OPERATING INCOME OR LOSS 3,883,300 4,134,700 (251,400) -6% 15.71% 18.47% -3% INCOME FROM CONTINUING OPERATIONS Total Other Income/Expenses Net 2,067,000 275,300 1,791,700 650.82% 8.36% 1.23% 7.13% Earnings Before Interest and Taxes 5,950,300 4,410,000 1,540,300 34.93% 24.07% 19.70% 4.37% Interest Expense 170,300 2,500 77,800 84.11% 0.69% 0.41% 0.28% ncome Before Tax 5,780,000 4,317,500 1,462,500 33.87% 23.38% 19.29% 4.10% Income Tax Expense 126,200 1,432,600 (1,306,400) -91% 0.51% 6.40% 6% Minority Interest 300 200 500 -250% 0.00% 0% 0.00% NET INCOME FROM CONTINUING OPS 4,819,500 3,276,100 1,543,400 47.11% 19.50% 14.63% 4.86% NON-RECURRING EVENTS Discontinued Operations 0.00% 0.00% 0.00% 0.00% Extraordinary Items 0.00% 0.00% 0.00% 0.00% Effect of Accounting Changes 0.00% 0.00% 0.00% 0.00% Other Items 0.00% 0.00% 0.00% 0.00% NET INCOME Net Income 4,518,300 2,884,700 1,633,600 56.63% 18.28% 12.89% 5.39% Preferred Stock and Other Adjustments 0.00% 0.00% 0.00% 0.00% NET INCOME APPLICABLE TO COMMON SHARES 4,518,300 2,884,700 1,633,600 56.63% 18.28% 12.89% 5.39%