Exhibit 99.2

CARBON FIBER TECHNOLOGY, LLC  FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005

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TABLE OF CONTENTS

|REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |  | 1
|------------------------------------------------------- |  | -
|BALANCE SHEETS                                          |  | 2
|STATEMENTS OF INCOME                                    |  | 3
|STATEMENT OF MEMBERS' EQUITY                            |  | 4
|STATEMENTS OF CASH FLOWS                                |  | 5
|NOTES TO FINANCIAL STATEMENTS                           |  | 6

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[SQUAR MILNER LETTERHEAD]

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board
of Managers
Carbon Fiber Technology, LLC

We
have audited the accompanying balance sheets of Carbon Fiber Technology, LLC (the "Company") as of December 31, 2006 and 2005, and the related statements of income, members' equity
and cash
flows for the years ended December 31, 2006, 2005 and 2004. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.

We
conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control
over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, ON a
test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In
our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Carbon Fiber Technology, LLC as of December 31, 2006 and
2005, and the results of its operations and its cash flows for the years ended December 31, 2006, 2005 and 2004 in conformity with accounting principles generally accepted in the United States
of America.

/s/SQUAR, MILNER, PETERSON, MIRANDA & WILLIAMSON, LLP

SQUAR, MILNER, PETERSON, MIRANDA & WILLIAMSON, LLP

March 5,
2007
San Diego, California

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CARBON FIBER TECHNOLOGY, LLC        BALANCE SHEETS        December 31, 2006 and 2005

|                                   |                           | 2006                                  |            | 2005     
|---------------------------------- | ------------------------- | ------------------------------------- | ---------- | ---------
|ASSETS                            
|CURRENT ASSETS                     |                           |                                       |            |          
|                                   | Cash and cash equivalents |                                       | $          | 1,360,868
|                                   | Accounts receivable       |                                       |            | 1,362,252
|                                   | Inventories               |                                       |            | 2,738,452
|                                   | Prepaid expenses          |                                       |            | 842      
|                                   |                           |                                       |            |          
|                                   |                           | Total current assets                  |            |          
|PROPERTY, PLANT AND EQUIPMENT, NET |                           |                                       | 6,691,237  |          
|                                   |                           |                                       |            |          
|Total assets                       |                           | $                                     | 12,153,651 |          
|                                   |                           |                                       |            |          
|LIABILITIES AND MEMBERS' EQUITY   
|CURRENT LIABILITIES                |                           |                                       |            |          
|                                   | Accounts payable          |                                       | $          | 1,215,760
|                                   | Accrued expenses          |                                       |            | 250,385  
|                                   |                           |                                       |            |          
|                                   |                           | Total current liabilities             |            |          
|MEMBERS' EQUITY                    |                           |                                       | 10,687,506 |          
|                                   |                           |                                       |            |          
|                                   |                           | Total liabilities and members' equity |            | $        
|                                   |                           |                                       |            |          

The
accompanying notes are an integral part of these financial statements

2

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CARBON FIBER TECHNOLOGY, LLC        STATEMENTS OF INCOME        For the Years Ended December 31, 2006, 2005 and 2004

|                       |  | 2006 |            | 2005 |   | 2004       | 
|---------------------- |  | ---- | ---------- | ---- | - | ---------- | 
|REVENUES, NET          |  | $    | 13,569,590 |      | $ | 11,462,087 | 
|COST OF SALES          |  |      | 12,888,033 |      |   | 11,051,888 | 
|                       |  |      |            |      |   |            | 
|GROSS PROFIT           |  |      | 681,557    |      |   | 410,199    | 
|OTHER INCOME (EXPENSE) |  |      | 10,422     |      |   | 4,926      | 
|                       |  |      |            |      |   |            | 
|NET INCOME             |  | $    | 691,979    |      | $ | 415,125    | 
|                       |  |      |            |      |   |            | 

The
accompanying notes are an integral part of these financial statements

3

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CARBON FIBER TECHNOLOGY, LLC        STATEMENT OF CHANGES IN MEMBERS' EQUITY        For the Years Ended December 31, 2006, 2005 and 2004

|BALANCE, December 31, 2003 |  | $ | 13,186,525 |  
|-------------------------- |  | - | ---------- | -
|Distributions to members   |  |   | (3,000,000 | )
|Net income                 |  |   | 531,877    |  
|                           |  |   |           
|BALANCE, December 31, 2004 |  |   | 10,718,402 |  
|Distributions to members   |  |   | (800,000   | )
|Net income                 |  |   | 415,125    |  
|                           |  |   |           
|BALANCE, December 31, 2005 |  |   | 10,333,527 |  
|Distribution to members    |  |   | (338,000   | )
|Net income                 |  |   | 691,979    |  
|                           |  |   |           
|BALANCE, December 31, 2006 |  | $ | 10,687,506 |  
|                           |  |   |           

The
accompanying notes are an integral part of these financial statements

4

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CARBON FIBER TECHNOLOGY, LLC        STATEMENTS OF CASH FLOWS        For the Year Ended December 31, 2006, 2005 and 2004

|                                                     |                                                                                   | 2006                          |                                           | 2005     |            | 2004      |         
|---------------------------------------------------- | --------------------------------------------------------------------------------- | ----------------------------- | ----------------------------------------- | -------- | ---------- | --------- | --------
|CASH FLOWS FROM OPERATING ACTIVITIES                 |                                                                                   |                               |                                           |          |            |           |         
|                                                     | Net income                                                                        |                               | $                                         | 691,979  |            | $         | 415,125 
|                                                     | Adjustments to reconcile net income to net cash provided by operating activities: |                               |                                           |          |            |           |         
|                                                     |                                                                                   | Depreciation and amortization |                                           |          | 1,154,355  |           |         
|                                                     |                                                                                   | Loss on sale of equipment     |                                           |          |           |           |         
|                                                     | Changes in operating assets and liabilities:                                      |                               |                                           |          |            |           |         
|                                                     |                                                                                   | Accounts receivable           |                                           |          | (15,011    | )         |         
|                                                     |                                                                                   | Inventories                   |                                           |          | (1,419,634 | )         |         
|                                                     |                                                                                   | Prepaid expenses              |                                           |          | 673        |           |         
|                                                     |                                                                                   | Accounts payable              |                                           |          | 716,554    |           |         
|                                                     |                                                                                   | Accrued expenses              |                                           |          | 43,615     |           |         
|                                                     |                                                                                   | Deferred revenue              |                                           |          |           |           |         
|                                                     |                                                                                   |                               |                                           |          |            |           |         
|                                                     |                                                                                   |                               | Net cash provided by operating activities |          |            | 1,172,531 |         
|CASH FLOWS FROM INVESTING ACTIVITIES                 |                                                                                   |                               |                                           |          |            |           |         
|                                                     | Purchase of property, plant and equipment                                         |                               |                                           | (75,839  | )          |           | (327,618
|                                                     | Proceeds from disposal of property                                                |                               |                                           |         |            |           |        
|                                                     |                                                                                   |                               |                                           |          |            |           |         
|                                                     |                                                                                   |                               | Net cash used in investing activities     |          |            | (75,839   | )       
|CASH FLOWS FROM FINANCING ACTIVITIES                 |                                                                                   |                               |                                           |          |            |           |         
|                                                     | Distributions to members                                                          |                               |                                           | (338,000 | )          |           | (800,000
|                                                     |                                                                                   |                               |                                           |          |            |           |         
|                                                     |                                                                                   |                               | Net cash used in financing activities     |          |            | (338,000  | )       
|                                                     |                                                                                   |                               |                                           |          |            |           |         
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |                                                                                   |                               | 758,692                                   |          |            | 36,379    |         
|CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR         |                                                                                   |                               | 602,176                                   |          |            | 565,797   |         
|                                                     |                                                                                   |                               |                                           |          |            |           |         
|CASH AND CASH EQUIVALENTS, END OF YEAR               |                                                                                   | $                             | 1,360,868                                 |          | $          | 602,176   |         
|                                                     |                                                                                   |                               |                                           |          |            |           |         
|SUPPLEMENTAL DISCLOSURE                              |                                                                                   |                               |                                           |          |            |           |         
|                                                     | Interest paid                                                                     |                               | $                                         |         |            | $         |        
|                                                     |                                                                                   |                               |                                           |          |            |           |         
|                                                     | Income taxes paid                                                                 |                               | $                                         |         |            | $         |        
|                                                     |                                                                                   |                               |                                           |          |            |           |         

The
accompanying notes are an integral part of these financial statements

5

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CARBON FIBER TECHNOLOGY, LLC  NOTES TO FINANCIAL STATEMENTS

NOTE 1ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Carbon Fiber Technology, LLC (a Delaware limited liability company) (the "Company") manufactures carbon fiber for use in various applications, including
aerospace, sporting goods, and other commercial applications. The Company, which was previously a wholly owned subsidiary of Aldila Materials Technology Corporation ("AMTC"), was formed on
October 29, 1999 as a joint venture between AMTC and SGL Carbon Fibers and Composites, Inc. ("SGL"). Profit and loss are allocated equally to each member based on their
respective ownership interest of 50% in the joint venture. The Amended and Restated LLC Agreement provides that the Company is to continue until December 31, 2099 unless it is dissolved
earlier, its affairs are wound up, and final liquidating distributions are made pursuant to the Amended and Restated LLC Agreement.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make
estimates and assumptions. The recorded amounts of assets, liabilities, revenues, expenses, and related disclosures are affected by such estimates and assumptions, and actual results could differ from
those estimates and assumptions.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company has not
historically experienced losses on such investments.

Accounts Receivable

The Company was established to provide for the carbon fiber needs of the respective members. Accounts receivable consist primarily of balances due from the
Company's members as sales to third parties are permitted only after the carbon fiber requirements of each member are met. The Company has not established an allowance for bad debts as historical
losses related to uncollectible accounts from third parties have been minimal.

Inventories

Inventories are stated at the lower of first-in, first-out (FIFO) cost or market value. Substantially all operating costs of the Company
are directly related to the manufacturing process, and are included in the cost of inventory.

Property, Plant and Equipment

Property, plant, and equipment are stated at cost. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets as
follows:

YearsBuilding

39Manufacturing equipment

5-10Office furniture and equipment

3-10


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CARBON FIBER TECHNOLOGY, LLC
NOTES TO FINANCIAL STATEMENTS

Impairment or Disposal of Long-Lived Assets

The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such
assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be
generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the
assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. No assets are considered to be impaired as of December 31, 2006 and 2005.

Revenue Recognition

Sales to Members The Company recognizes revenue when product is shipped. In accordance with the
Amended and Restated LLC Agreement and subject to modifications made by the members, the Company bills the members for fixed costs incurred on a monthly basis and bills variable costs at an
agreed-upon transfer price for the period as carbon fiber is shipped. The billings reflect an approximate 5% gross profit margin to the Company. Fixed costs billed prior to the shipment of
the product are recorded us deferred revenue, and are recognized as revenue when the earnings process is completed.

Outside Sales The Company recognizes revenue when products are shipped and the customer takes ownership and assumes risk of
loss, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable.

Income Taxes

As a limited liability company, the Company is not subject to federal and state income taxes. The taxable income or loss of the Company is included in the income
tax returns of its members. Accordingly, the Company has made no provision for income taxes.

Fair Value of Financial Instruments

The carrying amount of cash and cash equivalents, trade accounts receivable and payable and certain accrued expenses in the financial statements approximates
their fair value due to their short term nature.

Shipping and Handling Costs

Shipping and handling costs are classified as cost of sales.

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CARBON FIBER TECHNOLOGY, LLC
NOTES TO FINANCIAL STATEMENTS

NOTE 2INVENTORIES

The composition of inventory is summarized as follows:

December 31,2006

2005Raw materials

$
2,478,696

$
1,100,275Work in process


2,246


2,029Finished goods


257,510


216,514$
2,738,452

$
1,318,818


NOTE 3PROPERTY, PLANT AND EQUIPMENT

The composition of property, plant and equipment is summarized as follows:

December 31,2006

2005Land

$
140,142

$
140,142Building


5,887,585


5,875,818Manufacturing equipment


8,644,651


8,471,293Office furniture and equipment


62,117


68,846Construction in progress


32,408


144,06514,766,903


14,700,164Less accumulated depreciation and amortization


(8,075,666
)

(6,930,411
)Net property, plant and equipment

$
6,691,237


7,769,753


Depreciation
and amortization expense for the years ended December 31, 2006, 2005 and 2004 was $1,154,355, $1,131,102 and $1,152,218, respectively.

NOTE 4ACCRUED EXPENSES

The composition of accrued expenses is summarized as follows:

December 31,2006

2005Salaries

$
102,047

$
90,173Accrued bonuses


123,490


95,000Other


24,848


21,597250,385

$
206,770


NOTE 5CONCENTRATION RISK

Cash and Cash Equivalents

The Company maintains some of its cash in bank deposit accounts, which may be uninsured or exceed the federally insured limits. No losses have been experienced
related to such accounts. The Company believes it places its cash with quality financial institutions and is not exposed to any significant concentration of credit risk on cash.

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CARBON FIBER TECHNOLOGY, LLC
NOTES TO FINANCIAL STATEMENTS

Supplier Concentrations

The Company is dependent on one supplier for all of its purchases of precursor, which is the essential raw material in the manufacture of carbon fiber. Purchases
of precursor for the years ended December 31, 2006, 2005 and 2004 amounted to $7,340,241, $5,849,295 and, $4,650,681, respectively. The Company has been notified by its supplier that it does
not intend to continue to supply precursor to the Company beyond October 2007. If the Company cannot find a new supplier to provide sufficient quantities of precursor on a timely basis and on
comparable pricing terms, it could have an adverse effect on its business.

NOTE 6RELATED PARTY TRANSACTIONS

The Company was established to provide for the carbon fiber needs of its respective members. Sales to members, SGL and Aldila Golf Corp., an affiliate of AMTC,
for the year ended December 31, 2006 were $6,551,675 and $6,873,398 respectively. Sales to the members, for the year ended December 31, 2005 were $6,238,170 and $4,841,656, respectively
and for the year ended December 31, 2004 were $7,002,143 and $4,726,319, respectively. Accounts receivable due from SGL and Aldila Golf Corp. at December 31, 2006 were $1,099,186 and
$142,645, respectively and at December 31, 2005 were $1,005,827 and $254,618, respectively.

Administrative
services charged by Aldila Golf Corp. to the Company were $18,292 for each of the years ended December 31, 2006, 2005 and 2004.

During
the years ended December 31, 2005 and 2004 the Company incurred losses on the sale of machinery to SGL of $87 and $79,170, respectively.

NOTE 7EMPLOYEE BENEFIT PLAN

Effective January 1, 2000, the Company adopted the Carbon Fiber Technology, LLC 401(k) Savings Plan (the "Plan") for employees of the Company. This
defined contribution plan allows employees who satisfy the age and service requirements of the Plan to contribute up to 20% of pre-tax wages, limited to the maximum amount permitted by
federal law. The Company matches the first 4% of wages contributed by employees at a rate of $0.25 for every $1.00. The Company's matching contributions vest immediately for employees with four or
more years of service. The Company's contributions amounted to $5,717, $5,513 and $5,254 for the years ended December 31, 2006, 2005 and 2004, respectively.

NOTE 8COMMITMENTS AND CONTINGENCIES

The Company leases a vehicle and copier under non-cancelable operating leases, which expires in 2008. As of December 31, 2006, future minimum
lease payments under the non-cancelable operating leases were as follows:

Year Ending December 31,

Future Minimum Lease Payments2007


6,1922008


1,995Total minimum lease payments

$
8,187


Rent
expense for the years ended December 31, 2006, 2005 and 2004 was $6,320, $4,325 and $0, respectively.

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