Exhibit 10.26

     

    
      
        	
                PROFORMA
      UNAUDITED CONDENSED COMBINED STATEMENTS OF INCOME

              	 	 	 	 	 	 	
                Combined

              	 
	 
      	 	
                Historical

              	 	 	 	 	 	 	 	
                Pro
      forma

              	 
	
                 ($000
      USD)

              	 	 	 	 	
                Qualytextil

              	 	 	 	 	 	 	 	 	 	 
	
                For
      the three months ended April 30, 2008

              	 	
                AS
      REPORTED

              	 	 	
                US
      GAAP /USD

              	 	 	
                Adjustment

              	 	 	
                Adjustment

              	 	 	
                Three
      months ended

              	 
	
                Income
      Statement Data:

              	 	
                4/30/08

              	 	 	
                4/30/08

              	 	 	 	(1	)	 	 	(2	)	 	
                4/30/08

              	 
	
                Net
      sales

              	 	$	27,280	 	 	$	1,965	 	 	$	-	 	 	$	-	 	 	$	29,245	 
	
                Cost
      of goods sold

              	 	 	20,601	 	 	 	756	 	 	 	-	 	 	 	-	 	 	 	21,357	 
	
                Gross
      profit

              	 	 	6,679	 	 	 	1,209	 	 	 	-	 	 	 	-	 	 	 	7,888	 
	
                Operating
      expenses

              	 	 	5,231	 	 	 	830	 	 	 	-	 	 	 	-	 	 	 	6,061	 
	
                Operating
      profit

              	 	 	1,448	 	 	 	379	 	 	 	-	 	 	 	-	 	 	 	1,827	 
	
                Interest
      expense

              	 	 	(100	)	 	 	(206	)	 	 	(131	)	 	 	206	 	 	 	(231	)
	
                Interest
      income

              	 	 	30	 	 	 	59	 	 	 	-	 	 	 	-	 	 	 	89	 
	
                Income
      before income taxes

              	 	 	1,378	 	 	 	232	 	 	 	(131	)	 	 	206	 	 	 	1,685	 
	
                Income
      tax expense

              	 	 	485	 	 	 	35	 	 	 	(47	)	 	 	31	 	 	 	504	 
	
                Net
      Income

              	 	$	893	 	 	$	197	 	 	$	(84	)	 	$	175	 	 	$	1,181	 
	
                Net
      income per share

              	 	$	0.16	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0.22	 
	
                   #
      shares used for basic EPS

              	 	 	5,487,260	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5,487,260	 
	
                ACCRETIVE
      TO EPS:

              	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0.06	 


      

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Exhibit
10.26

      


      


      


      NOTES TO:
PROFORMA UNAUDITED CONDENSED COMBINED STATEMENTS OF INCOME

      Three
months ended April 30, 2008

         

      
        
          	 
      	 	
                  Adjustment

                  Needed

                	 
	 	 	 	 	 
	
                  (1)
      Adjustment to reflect interest- Expense that would have been incurred on
      loan to finance purchase of Qualytextil

                	 	$	13,344	 
	 	 	 	 	 
	
                  Interest
      rate assumed on proforma loan.  Used Lakeland’s actual weighted
      average interest rate for the period + 40 BPS which is the pricing
      adjustment created by the higher leverage resulting from the purchase
      price borrowing

                	 	 	3.93	%
	 	 	 	 	 
	
                  Additional
      interest expense on purchase loan pro forma

                	 	$	131	 
	 	 	 	 	 
	
                  Tax
      rate - The Company considers the rate of 36% to be appropriate as it
      represents the applicable tax effect on interest expense incurred on the
      loan assumed in USD. The Company did not use the effective tax rate which
      is 25.0%, since the rate is affected by various factors not relevant to
      the current transaction including income from various foreign
      subsidiaries, deductions etc.

                	 	 	36	%
	 	 	 	 	 
	
                  Tax
      benefit on additional interest expense

                	 	$	47	 
	 	 	 	 	 
	
                   (2)
      Adjustment to add back interest expense on Qualytextil books  as
      the debt has been repaid as a result of this transaction