|   |   |                                                                                             |
|--------|--------|--------------------------------------------------------------------------------------------------|
|   | x      | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934. |

|   |   |                                                                                      |
|--------|--------|-------------------------------------------------------------------------------------------|
|   | o      | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE EXCHANGE ACT OF 1934. |

|                                      |   |                                      |
|-------------------------------------------|--------|-------------------------------------------|
| Title of Each Class                       |   | Name of Each Exchange on Which Registered |
| Common Stock, par value $0.0001 per share |   | NYSE Amex                                 |

|                    |   |                      |   |
|-------------------------|--------|---------------------------|--------|
| Large accelerated filer | o      | Accelerated filer         | o      |
|                    |   |                      |   |
| Non-accelerated filer   | o      | Smaller reporting company | x      |

----

|    |                                                                                                        |   |
|---------|-------------------------------------------------------------------------------------------------------------|--------|
|    |                                                                                                        | Page   |
|    |                                                                                                        |   |
|    | PART I                                                                                                 |   |
|    |                                                                                                        |   |
| Item 1  | Business                                                                                                    | 3      |
| Item 1A | Risk Factors                                                                                                | 6      |
| Item 2  | Properties                                                                                                  | 9      |
| Item 3  | Legal Proceedings                                                                                           | 10     |
|    |                                                                                                        |   |
|    | PART II                                                                                                |   |
|    |                                                                                                        |   |
| Item 5  | Market for Registrant's Common Equity Related Stockholder Matters and issuer purchases of Equity Securities | 10     |
| Item 6  | Selected Consolidated Financial Data                                                                        | 13     |
| Item 7  | Management's Discussion and Analysis of Financial Condition and Results of Operations                       | 14     |
| Item 8  | Financial Statements and Supplementary Data                                                                 | 26     |
| Item 9  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosures                       | 26     |
| Item 9A | Controls and Procedures                                                                                     | 27     |
| Item 9B | Other Information                                                                                           | 28     |
|    |                                                                                                        |   |
|    | PART III                                                                                               |   |
|    |                                                                                                        |   |
| Item 10 | Directors, Executive Officers and Corporate Governance                                                      | 28     |
| Item 11 | Executive Compensation                                                                                      | 29     |
| Item 12 | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters              | 31     |
| Item 13 | Certain Relationships and Related Transactions and Director Independence                                    | 32     |
| Item 14 | Principal Accountant Fees and Services                                                                      | 33     |
|    |                                                                                                        |   |
|    | PART IV                                                                                                |   |
|    |                                                                                                        |   |
| Item 15 | Exhibits and Financial Statement Schedules                                                                  | 33     |
|    | Signatures                                                                                                  | 34     |
|    | Exhibit Index                                                                                          | 35     |
|    | Consolidated Financial Statements                                                                           | F-1    |

----

----

|    |                          |
|---------|-------------------------------|
| ▪ | Cycle Country ATV Accessories |

|    |   |
|---------|--------|
| ▪ | Plazco |

----

|    |      |
|---------|-----------|
| ▪ | Perf-Form |

|    |   |
|---------|--------|
| ▪ | Imdyne |

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ▪ | Cycle Country ATV Accessories: The Company's main competitors in the ATV/UTV accessories business are wholesale distributors who have sourced private label products primarily from manufacturers in Asia, as well as a few large companies for which this category is a very small part of their business. We are one of the very few American manufacturers in our industry, and the only one for whom these products are a primary focus. The main competitors in the ATV/UTV accessories market are Polaris, Arctic Cat, Warn, John Deere, Swisher, Moose, and American Eagle. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| ▪ | Plazco: The Company's competitors in the plastic wheel covers and other golf car accessories market are Nivel, Inc., and Fore-Par Group, which licenses and markets the popular Cragar-branded wheel covers.                                                                                                                                                                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| ▪ | Perf-Form: The Company primarily competes in the specialty oil filter and oil cooler market with Fram, WIX, Amsoil, K&N, and Purolator. They are all larger than Perf-Form, though we compete well with them in legacy engines for which the sales volume is low and the use of older technologies are appropriate.                                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| ▪ | Imdyne: There are many high quality, competitively priced metal fabricators and plastic injection-molding businesses in our market territory. We have a slight competitive advantage over many of them in that our other segments cover some of the overhead of the Company. As a result, we can be competitively priced because the shared overhead creates cost efficiencies.                                                                                                                                                                                                         |

----

----

----

----

|   |    |                                                                                                                                  |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------|
|   | ▪ | the acquired business may experience losses which could adversely affect our profitability;                                           |
|   |    |                                                                                                                                  |
|   | ▪ | unanticipated costs relating to the integration of acquired businesses may increase our expenses;                                     |
|   |    |                                                                                                                                  |
|   | ▪ | possible failure to obtain any necessary consents to the transfer of licenses or other agreements of the acquired company;            |
|   |    |                                                                                                                                  |
|   | ▪ | possible failure to maintain customer, licensor and other relationships after the closing of the transaction of the acquired company; |
|   |    |                                                                                                                                  |
|   | ▪ | difficulties in achieving planned cost-savings and synergies may increase our expenses;                                               |
|   |    |                                                                                                                                  |
|   | ▪ | diversion of our management's attention could impair their ability to effectively manage our other business operations; and           |
|   |    |                                                                                                                                  |
|   | ▪ | unanticipated management or operational problems or liabilities may adversely affect our profitability and financial condition.       |

----

----

|   |    |                                                                                                                                                               |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ▪ | Spencer, Iowa - Property owned by the Company, used for manufacturing, distribution and office space primarily for the Imdyne and Cycle Country ATV segments. |
|   |    |                                                                                                                                                               |
|   | ▪ | Milford, Iowa - Leased property used for manufacturing, distribution and office space primarily for the Plazco and Perf-Form segments.                   |
|   |    |                                                                                                                                                               |
|   | ▪ | Minnetonka, Minnesota - Leased office space                                                                                                                        |

----

|          |   |               |   |                |   |               |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------|--------|--------------------|--------|---------------------|--------|--------------------|--------|---------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|          |   | First Quarter |   | Second Quarter |   | Third Quarter |   | Fourth Quarter |   |
|          |   | 2010               |   | 2009                |   | 2010               |   | 2009                |   | 2010   |   | 2009   |   | 2010   |   | 2009   |   |
| Stock prices: |   |               |   |                |   |               |   |                |   |   |   |   |   |   |   |   |   |
| High          |   | $                  | 0.62   |                | $      | 1.08               |   | $                   | 0.54   |   | $      | 0.55   |   | $      | 0.68   |   | $      | 0.56   |   | $      | 0.68   |   | $      | 0.62   |   |
| Low           |   | $                  | 0.37   |                | $      | 0.29               |   | $                   | 0.32   |   | $      | 0.15   |   | $      | 0.38   |   | $      | 0.23   |   | $      | 0.29   |   | $      | 0.23   |   |

|                                                       |   |                                                                                                                                          |   |                                                                                                 |   |                                                                                                                                                                                                        |   |
|------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Plan category                                         |   | Number of securities tobe issued upon exerciseof outstanding options,warrants and rights(a) |   | Weighted-averageexercise price ofoutstanding options,warrants and rights(b) |   | Number of securities remainingavailable for future issuance underequity compensation plans(excluding securities reflected incolumn (a))(c) |   |
| Equity compensation plans approved by security holders     |   | -                                                                                                                                             |   | -                                                                                                    |   | 500,000                                                                                                                                                                                                     |   |
| Equity compensation plans not approved by security holders |   | -                                                                                                                                             |   | -                                                                                                    |   | -                                                                                                                                                                                                           |   |
| Total                                                      |   | -                                                                                                                                             |   | -                                                                                                    |   | 500,000                                                                                                                                                                                                     |   |

----

----

----

|                                                |   |               |       |               |   |               |   |               |       |               |   |
|-----------------------------------------------------|--------|--------------------|------------|--------------------|--------|--------------------|--------|--------------------|------------|--------------------|--------|
|                                                |   | September 30, |       | September 30, |   | September 30, |   | September 30, |       | September 30, |   |
|                                                |   | 2010 (Restated)    |       | 2009               |   | 2008               |   | 2007               |       | 2006               |   |
| STATEMENT OF OPERATIONS                             |   |               |       |               |   |               |   |               |       |               |   |
| Sales                                               |   | $                  | 11,944,462 |               | $      | 10,281,726         |   | $                  | 17,513,941 |               | $      | 14,214,250 |   | $ | 16,464,214 |   |
| Cost of goods sold                                  |   | 9,353,775          |       | 8,360,912          |   | 13,215,382         |   | 9,332,869          |       | 10,389,976         |   |
| Inventory adjustments (1)                           |   | 592,784            |       | 474,000            |   | -                  |   | -                  |       | -                  |   |
| Gross profit                                        |   | 1,997,903          |       | 1,446,814          |   | 4,298,559          |   | 4,881,381          |       | 6,074,238          |   |
|                                                |   |               |       |               |   |               |   |               |       |               |   |
| Sales, general & admin (2)                 |   | 4,759,663          |       | 4,037,309          |   | 4,763,859          |   | 4,018,875          |       | 4,707,215          |   |
| Goodwill impairment (3)                             |   | -                  |       | 4,890,146          |   | -                  |   | -                  |       | -                  |   |
| Fraud expense, net (4)                              |   | 134,775            |       | 620,000            |   | -                  |   | -                  |       | -                  |   |
| (Gain) loss on sale of assets                       |   | 94,555             |       | (164,590           | )      | (361,462           | )      | (54,326            | )          | 115,562            |   |
| Operating expense                                   |   | 4,988,993          |       | 9,382,865          |   | 4,402,397          |   | 3,964,549          |       | 4,822,777          |   |
|                                                |   |               |       |               |   |               |   |               |       |               |   |
| Other expense                                       |   | (142,813           | )          | (323,742           | )      | (284,681           | )      | (308,559           | )          | (418,584           | )      |
| Net income (loss) pre tax                           |   | $                  | (3,133,903 | )                  | $      | (8,259,793         | )      | $                  | (388,519   | )                  | $      | 608,273 |   | $ | 832,877 |   |
|                                                |   |               |       |               |   |               |   |               |       |               |   |
| Net income (loss)                                   |   | $                  | (2,023,903 | )                  | $      | (6,798,793         | )      | $                  | (358,262   | )                  | $      | 418,142 |   | $ | 611,794 |   |
|                                                |   |               |       |               |   |               |   |               |       |               |   |
| BALANCE SHEET                                       |   |               |       |               |   |               |   |               |       |               |   |
| Total current assets                                |   | $                  | 6,528,444  |               | $      | 6,958,732          |   | $                  | 8,811,039  |               | $      | 8,289,087 |   | $ | 7,934,523 |   |
| Net fixed and intangible assets                     |   | 10,190,580         |       | 10,981,855         |   | 11,449,369         |   | 13,016,669         |       | 13,612,885         |   |
| Other assets (5)                                    |   | 7,413              |       | 40,388             |   | 5,116,321          |   | 4,928,567          |       | 4,931,542          |   |
| Total assets                                        |   | $                  | 16,726,437 |               | $      | 17,980,975         |   | $                  | 25,376,729 |               | $      | 26,234,323 |   | $ | 26,478,950 |   |
|                                                |   |               |       |               |   |               |   |               |       |               |   |
| Total current liabilities                           |   | $                  | 5,565,400  |               | $      | 3,808,053          |   | $                  | 3,279,937  |               | $      | 1,436,063 |   | $ | 1,516,142 |   |
| Long term liabilities                               |   | 4,065,279          |       | 5,281,537          |   | 6,526,615          |   | 6,522,496          |       | 7,222,686          |   |
| Total liabilities                                   |   | $                  | 9,630,679  |               | $      | 9,089,590          |   | $                  | 9,806,552  |               | $      | 7,958,559 |   | $ | 8,738,828 |   |
|                                                |   |               |       |               |   |               |   |               |       |               |   |
| Net worth                                           |   | $                  | 7,095,758  |               | $      | 8,891,385          |   | $                  | 15,570,177 |               | $      | 18,275,764 |   | $ | 17,740,122 |   |
|                                                |   |               |       |               |   |               |   |               |       |               |   |
| EQUITY                                              |   |               |       |               |   |               |   |               |       |               |   |
| Weighted average shares of common stock outstanding |   |               |       |               |   |               |   |               |       |               |   |
| Basic                                               |   | 6,068,247          |       | 6,059,854          |   | 6,169,659          |   | 7,346,617          |       | 7,271,966          |   |
| Diluted                                             |   | 6,068,247          |       | 6,059,854          |   | 6,169,659          |   | 7,346,617          |       | 7,271,966          |   |
| Income (loss) per common share                      |   |               |       |               |   |               |   |               |       |               |   |
| Basic                                               |   | $                  | (0.33      | )                  | $      | (1.12              | )      | $                  | (0.06      | )                  | $      | 0.06 |   | $ | 0.08 |   |
| Diluted                                             |   | $                  | (0.33      | )                  | $      | (1.12              | )      | $                  | (0.06      | )                  | $      | 0.06 |   | $ | 0.08 |   |

----

----

| (1)    | Includes a charge for excess and obsolete inventory of approximately $315,000 and $283,000 for the fiscal years ended September 30, 2010 and 2009, respectively and a charge for inventory shrink of approximately $277,000 and $191,000 for the fiscal years ended September 30, 2010 and 2009, respectively, all included in cost of goods sold. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                         |
| (2)    | The year 2008 includes a charge of $117,000 in connection with terminating the employment agreements of the former CEO and CFO who were terminated. Refer to Item 7 for a discussion of changes in sales, general, and administrative expenses for fiscal years 2010 and 2009.                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                         |
| (3)    | The year ended September 30, 2009 includes a goodwill impairment charge of approximately $4,890,000.                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                         |
| (4)    | Includes costs, net of recoveries, associated with the misappropriation of funds discussed elsewhere in this filing.                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                         |
| (5)    | September 30, 2008, 2007, and 2006 includes goodwill of approximately $4,890,000 which was impaired during the year ended September 30, 2009.                                                                                                                                                                                                      |

----

----

|                                  |   |            |       |       |   |          |   |          |      |
|---------------------------------------|--------|-----------------|------------|------------|--------|---------------|--------|---------------|-----------|
|                                  |   | 2010 (Restated) |       | 2009       |   | $ Change |   | % Change |      |
| Total Revenue by Segment              |   |            |       |       |   |          |   |          |      |
| CCAC ATV                              |   | $               | 9,025,443  |       | $      | 8,649,967     |   | $             | 375,476   |   | 4.34 | % |
| Plazco                                |   | 467,032         |       | 689,792    |   | (222,760      | )      | (32.29        | )%        |
| Perf-Form                             |   | 205,250         |       | 254,197    |   | (48,947       | )      | (19.26        | )%        |
| Imdyne                                |   | 3,195,293       |       | 1,425,997  |   | 1,769,296     |   | 124.07        | %         |
|                                  |   |            |       |       |   |          |   |          |      |
| Total Revenue by Segment              |   | 12,893,018      |       | 11,019,953 |   | 1,873,065     |   | 17.00         | %         |
|                                  |   |            |       |       |   |          |   |          |      |
| Freight Income                        |   | 82,472          |       | 92,842     |   | (10,370       | )      | (11.17        | )%        |
| Sales Discounts & Allowances |   | (1,031,028      | )          | (831,069   | )      | (199,959      | )      | (24.06        | )%        |
|                                  |   |            |       |       |   |          |   |          |      |
| Total Consolidated Revenue            |   | $               | 11,944,462 |       | $      | 10,281,726    |   | $             | 1,662,736 |   | 16.17 | % |
|                                  |   |            |       |       |   |          |   |          |      |
| Gross (Loss) Profit by Segment        |   |            |       |       |   |          |   |          |      |
| CCAC ATV                              |   | $               | 4,529,672  |       | $      | 3,807,060     |   | $             | 722,612   |   | 18.98 | % |
| Plazco                                |   | 14,237          |       | 378,522    |   | (364,285      | )      | (96.24        | )%        |
| Perf-Form                             |   | (22,456         | )          | 62,713     |   | (85,169       | )      | (135.81       | )%        |
| Imdyne                                |   | 1,018,890       |       | 348,378    |   | 670,512       |   | 192.47        | %         |
|                                  |   |            |       |       |   |          |   |          |      |
| Total Gross Profit by Segment         |   | 5,540,343       |       | 4,596,672  |   | 943,670       |   | 20.53         | %         |
|                                  |   |            |       |       |   |          |   |          |      |
| Freight Income                        |   | 82,472          |       | 92,842     |   | (10,370       | )      | (11.17        | )%        |
| Sales Disc. & Allow.         |   | (1,031,028      | )          | (831,069   | )      | (199,959      | )      | (24.06        | )%        |
| Factory Overhead                      |   | (2,593,884      | )          | (2,411,631 | )      | (182,253      | )      | 7.56          | %         |
|                                  |   |            |       |       |   |          |   |          |      |
| Gross Profit                          |   | 1,997,903       |       | 1,446,814  |   | 551,089       |   | 38.09         | %         |
|                                  |   |            |       |       |   |          |   |          |      |
| Sales, General & Admin.      |   | (4,759,663      | )          | (4,037,309 | )      | (722,354      | )      | 17.89         | %         |
| Goodwill Impairment                   |   | -               |       | (4,890,146 | )      | 4,890,146     |   | (100.00       | )%        |
| Fraud Expense, Net                    |   | (134,775        | )          | (620,000   | )      | 485,225       |   | (78.26        | )%        |
| Gain (Loss) on Sale of Assets         |   | (94,555         | )          | 164,590    |   | (259,145      | )      | (157.45       | )%        |
| Interest Expense, Net                 |   | (310,440        | )          | (334,741   | )      | 24,301        |   | (7.26         | )%        |
| Other Inc/Exp, Net                    |   | 167,627         |       | 10,999     |   | 156,628       |   | 1,424.02      | %         |
| Income Tax Benefit                    |   | 1,110,000       |       | 1,461,000  |   | (351,000      | )      | (24.02        | )%        |
|                                  |   |            |       |       |   |          |   |          |      |
| Net Loss                              |   | $               | (2,023,903 | )          | $      | (6,798,793    | )      | $             | 4,774,890 |   | (70.23 | )% |

----

----

|               |   |                                              |   |                                              |   |
|--------------------|--------|---------------------------------------------------|--------|---------------------------------------------------|--------|
|               |   | Year Ended September 30, 2010 |   | Year Ended September 30, 2009 |   |
|               |   | CCAC                                              |   | Plazco                                            |   | Perf-Form |   | Imdyne |   | CCAC |   | Plazco |   | Perf-Form |   | Imdyne |   |
| Materials          |   | 3,759,781                                         |   | 111,353                                           |   | 67,257 |   | 1,856,446 |   | 4,024,072 |   | 142,019 |   | 128,395 |   | 875,891 |   |
| Direct Labor       |   | 329,260                                           |   | 33,488                                            |   | 33,393 |   | 211,856 |   | 304,443 |   | 37,951 |   | 25,558 |   | 99,015 |   |
| Mfg Variance       |   | 102,545                                           |   | 20,161                                            |   | 3,239 |   | 31,812 |   | (50,796 | ) | 15,110 |   | 4,392 |   | 33,247 |   |
| Subcontract        |   | 60,112                                            |   | 53,862                                            |   | 17,263 |   | 44,445 |   | 25,493 |   | 81,813 |   | 17,783 |   | 10,828 |   |
| Inventory Variance |   | 222,290                                           |   | 232,096                                           |   | 106,554 |   | 31,844 |   | 374,160 |   | 25,845 |   | 15,357 |   | 58,638 |   |
| Royalty            |   | 21,783                                            |   | 1,835                                             |   |   |   |   |   | 40,674 |   | 2,841 |   |   |   |   |   |
| Other              |   | -                                                 |   | -                                                 |   | - |   | - |   | 124,861 |   | 5,691 |   |   |   | - |   |
|               |   | 4,495,771                                         |   | 452,795                                           |   | 227,706 |   | 2,176,403 |   | 4,842,907 |   | 311,270 |   | 191,485 |   | 1,077,619 |   |

|               |   | % of Total Revenue |   | % of Total Revenue |   |
|--------------------|--------|-----------------------------------|--------|-----------------------------------|--------|
| Materials          |   |                              | 41.66  | %                                 |   | 23.84 | % |   | 32.77 | % |   | 58.10 | % |   | 46.52 | % |   | 20.59 | % |   | 50.51 | % |   | 61.42 | % |
| Direct Labor       |   |                              | 3.65   | %                                 |   | 7.17 | % |   | 16.27 | % |   | 6.63 | % |   | 3.52 | % |   | 5.50 | % |   | 10.05 | % |   | 6.94 | % |
| Mfg Variance       |   |                              | 1.14   | %                                 |   | 4.32 | % |   | 1.58 | % |   | 1.00 | % |   | -0.59 | % |   | 2.19 | % |   | 1.73 | % |   | 2.33 | % |
| Subcontract        |   |                              | 0.67   | %                                 |   | 11.53 | % |   | 8.41 | % |   | 1.39 | % |   | 0.29 | % |   | 11.86 | % |   | 7.00 | % |   | 0.76 | % |
| Inventory Variance |   |                              | 2.46   | %                                 |   | 49.70 | % |   | 51.91 | % |   | 1.00 | % |   | 4.33 | % |   | 3.75 | % |   | 6.04 | % |   | 4.11 | % |
| Royalty            |   |                              | 0.24   | %                                 |   | 0.39 | % |   | 0.00 | % |   | 0.00 | % |   | 0.47 | % |   | 0.41 | % |   | 0.00 | % |   | 0.00 | % |
| Other              |   |                              | 0.00   | %                                 |   | 0.00 | % |   | 0.00 | % |   | 0.00 | % |   | 1.44 | % |   | 0.83 | % |   | 0.00 | % |   | 0.00 | % |
|               |   |                              | 49.81  | %                                 |   | 96.95 | % |   | 110.94 | % |   | 68.11 | % |   | 55.99 | % |   | 45.13 | % |   | 75.33 | % |   | 75.57 | % |

----

|   |    |                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ▪ | Wages, bonuses, and benefits related to executive compensation increased approximately $397,000 (Restated). Information related to employment contracts for Jeffrey M Tetzlaff and Robert Davis are found elsewhere in this filing and in the notes to the audited consolidated financial statements.                                                                                   |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                    |
|   | ▪ | Salaries and wages related to sales increased approximately $180,000 due to increased commissions on increased sales amounts.                                                                                                                                                                                                                                                           |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                    |
|   | ▪ | Professional fees paid to Bene Merenti, LLC, a related party, increased approximately $159,000, $75,000 of which was attributable to costs associated with attempts to recover amounts misappropriated as further described elsewhere in this Form 10-K and in the notes to the audited consolidated financial statements.                                                              |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                    |
|   | ▪ | Lease expense increased approximately $38,000. In April 2009, the Company entered into a sixty-seven month lease agreement with an unrelated party for office space in Minneapolis, totaling approximately $50,000 per year. The agreement commenced in June 2009, and the base rent was abated for a period of seven months with the first payment due in January 2010. |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                    |
|   | ▪ | Marketing expenses increased approximately $70,000 (Restated) due, partially, to expenses associated with a new marketing strategy and related expenses.                                                                                                                                                                                                                                |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                    |
|   | ▪ | Research and development costs decreased approximately $27,000 (Restated) due to customer incentive programs.                                                                                                                                                                                                                                                                           |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                    |
|   | ▪ | Expenses associated with investor relations decreased approximately $112,000 as we discontinued use of an outside firm to supply investor relation services.                                                                                                                                                                                                                            |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                    |
|   | ▪ | Costs associated with workers compensation insurance decreased approximately $100,000 due to a change in carriers as discussed elsewhere in this report.                                                                                                                                                                                                                                |

----

----

|                                                |   |   |     |   |   |     |   |
|-----------------------------------------------------|--------|--------|----------|--------|--------|----------|--------|
|                                                |   | 2010   |     | 2009   |   |
| Net cash provided by (used in) operating activities |   | $      | (569,972 | )      | $      | 364,292  |   |
| Net cash used in investing activities               |   |   | (250,100 | )      |   | (192,379 | )      |
| Net cash provided by (used in) financing activities |   |   | 821,521  |   |   | (338,999 | )      |
|                                                |   | $      | 1,449    |   | $      | (167,086 | )      |

----

|                |   |            |      |   |   |      |   |
|---------------------|--------|-----------------|-----------|--------|--------|-----------|--------|
|                |   | 2010 (Restated) |      | 2009   |   |
| Current assets      |   | $               | 6,528,444 |   | $      | 6,958,732 |   |
| Current liabilities |   |            | 5,565,400 |   |   | 3,808,053 |   |
| Working capital     |   | $               | 963,044   |   | $      | 3,150,679 |   |
|                |   |            |      |   |   |      |   |
| Current ratio       |   |            | 1.17      |   |   | 1.83      |   |

|                               |   |            |       |   |   |       |   |
|------------------------------------|--------|-----------------|------------|--------|--------|------------|--------|
|                               |   | (2010 Restated) |       | 2009   |   |
| Current debt                       |   | $               | 699,681    |   | $      | 863,160    |   |
| Long-term debt                     |   |            | 2,478,279  |   |   | 3,111,783  |   |
| Total debt                         |   |            | 3,177,960  |   |   | 3,974,943  |   |
| Shareholders' equity               |   |            | 7,095,758  |   |   | 8,891,385  |   |
| Total capitalization               |   | $               | 10,273,718 |   | $      | 12,866,328 |   |
|                               |   |            |       |   |   |       |   |
| Total debt to total capitalization |   |            | 30.9       |   |   | 30.9       |   |

----

----

----

----

----

|   |    |                                                                                                                                                                                                                                                                                                                                       |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ▪ | Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;                                                                                                                                                                            |
|   |    |                                                                                                                                                                                                                                                                                                                                       |
|   | ▪ | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorization of management and directors of the Company; and |
|   |    |                                                                                                                                                                                                                                                                                                                                       |
|   | ▪ | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements.                                                                                                                               |

----

|         |   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                           |   |     |   |          |
|--------------|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|--------|---------------|
|         |   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Director |   | To Serve |
| Name         |   | Age    |   | Principal Occupation                                                                                                                                                                                                                                                                                                                                                                                                      |   | Since    |   | Until         |
| Paul DeShaw  |   | 67     |   | Mr. DeShaw is a long-standing investor in Cycle Country Accessories Corp. He is also a Director of BDFSC Holdings Corp and a Vice President of Broker Dealer Financial Services Corp, and has been with that firm since 1995.                                                                                                                                                                                                  |   | 2010     |   | 2013          |
|         |   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                           |   |     |   |          |
| Robert Davis |   | 49     |   | Mr. Davis is the Company's Chief Operating Officer and Chief Financial Officer and Interim Chief Executive Officer. Prior to this role, he was engaged by the Company as a turnaround consultant and acted as the Interim Chief Financial Officer, as well. Through his firm, Bene Merenti LLC, he has been an entrepreneurial C.E.O. for over 20 years, having bought, started, lead, and sold many companies in that period. |   | 2009     |   | 2012          |

|         |   |                                                     |   |         |
|--------------|--------|----------------------------------------------------------|--------|--------------|
| NAME         |   | OFFICE                                                   |   | OFFICERSINCE |
| Robert Davis |   | Interim Chief Executive Officer                          |   | 2011         |
|         |   |                                                     |   |         |
|         |   | Chief Financial Officer and Chief Operating Officer      |   | 2010         |
|         |   |                                                     |   |         |
|         |   | Interim Chief Financial Officer, Secretary and Treasurer |   | 2009         |

----

|   |           |   |                                        |   |                     |   |            |   |                                   |   |                                                                                       |   |                          |   |                         |   |
|--------|----------------|--------|---------------------------------------------|--------|--------------------------|--------|-----------------|--------|----------------------------------------|--------|--------------------------------------------------------------------------------------------|--------|-------------------------------|--------|------------------------------|--------|
|   | Name           |   | Fees Earnedor Paid inCash($) |   | (Restated)StockAwards($) |   | OptionAwards($) |   | Non-EquityIncentivePlanCompensation($) |   | Change inPension Valueand NonqualifiedDeferredCompensationEarnings ($) |   | All OtherCompensation($) |   | RestatedTotalCompensation($) |   |
| (1)    | Paul DeShaw    |   | $                                           | -      |                     | $      | -               |   | $                                      | -      |                                                                                       | $      | -                             |   | $                            | -      |   | $ | - |   | $ | - |   |
|   |           |   |                                        |   |                     |   |            |   |                                   |   |                                                                                       |   |                          |   |                         |   |   |   |   |   |   |   |   |
| (2)    | Daniel Thralow |   | $                                           | -      |                     | $      | -               |   | $                                      | -      |                                                                                       | $      | -                             |   | $                            | -      |   | $ | - |   | $ | - |   |

----

| (1)    | Paul DeShaw was elected to the board at the annual meeting of stockholders in 2010 for a term which will expire at the 2013 annual meeting of stockholders. As of September 30, 2010, Mr. DeShaw was not vested in a 50,000 share compensation award approved by the stockholders to be vested over three years.                                            |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                        |
| (2)    | Daniel Thralow was elected to the board in 2009 to serve until 2012. As of September 30, 2010, Mr. Thralow was not vested in a 50,000 share compensation award approved by the stockholders to be vested over three years. Effective December 31, 2010, Mr. Thralow resigned his position as a member of the board of directors and forfeited these shares. |

----

|   |   |                                                                                               |   |   |   |    |   |    |   |         |   |             |   |                  |   |    |    |      |   |
|--------|--------|----------------------------------------------------------------------------------------------------|--------|--------|--------|---------|--------|---------|--------|--------------|--------|------------------|--------|-----------------------|--------|---------|---------|-----------|--------|
|   |   |                                                                                               |   |   |   |    |   |    |   |         |   | Restated         |   |                  |   |    |    |      |   |
|   |   | Name and                                                                                      |   | Fiscal |   |    |   |    |   | Other Annual |   | Restricted Stock |   | Securities Underlying |   | LTIP    |    | All Other |   |
|   |   | Principal Position                                                                            |   | Year   |   | Salary  |   | Bonus   |   | Comp         |   | Awards           |   | Options               |   | Payouts |    | Comp      |   |
| (1)    |   | Jeffrey Tetzlaff, Former President                                                                 |   | 2010   |   | 176,731 |   | 135,000 | (5)    |         |   | 13,333           | (8)    |                  |   |    |    | 4,185     | (11)   |
|   |   |                                                                                               |   | 2009   |   | 150,000 |   | 25,000  | (6)    | -            |   | 4,167            | (9)    | -                     |   | -       |    | 1,464     | (11)   |
|   |   |                                                                                               |   |   |   |    |   |    |   |         |   |             |   |                  |   |    |    |      |   |
| (2)    |   | Robert Davis, Interim Chief Executive Officer, Chief Operating Officer and Chief Financial Officer |   | 2010   |   | 59,615  |   | 135,000 | (16)   |         |   | -                | (10)   |                  |   |    |    | 121,346   | (13)   |
|   |   |                                                                                               | 2009   |   | -      |    | -      |    | -      |         | -      |             | -      |                  | -      |    | 116,876 | (13)      |
|   |   |                                                                                               |   |   |   |    |   |    |   |         |   |             |   |                  |   |    |    |      |   |
| (3)    |   | Randy Kempf, Former President                                                                      |   | 2009   |   | 187,500 |   | -       |   | -            |   | 25,000           | (11)   | -                     |   | -       |    | 10,432    | (12)   |
|   |   |                                                                                               |   |   |   |    |   |    |   |         |   |             |   |                  |   |    |    |      |   |
| (4)    |   | Alan Bailey, Former Vice President                                                                 |   | 2010   |   | 76,923  |   | -       |   | -            |   | -                |   | -                     |   | -       |    | 36,225    | (14)   |
|   |   |                                                                                               |   | 2009   |   | 125,000 |   | -       |   | 500          | (7)    | -                |   | -                     |   | -       |    | 18,842    | (15)   |

----

| (1)    | Resigned effective December 31, 2010                                                                                                                                                                                                                                                                                                                                             |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                  |
| (2)    | Mr. Davis served as Interim Chief Financial Officer through Bene Merenti, LLC until July 1, 2010 at which time he was named Chief Operating Officer and Chief Financial Officer. As of December 31, 2010, Mr. Davis was also named Interim Chief Executive Officer                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                  |
| (3)    | Employment terminated April, 2008                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                  |
| (4)    | Retired effective April 30, 2010                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                  |
| (5)    | Includes $60,000 signing bonus and $75,000 performance bonus earned and accrued in fiscal year 2010. $50,000 was paid in fiscal year 2011, the balance will be paid under the Separation Agreement and Release of Claims disclosed elsewhere in this filing.                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                  |
| (6)    | Signing bonus                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                  |
| (7)    | Christmas bonus                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                  |
| (8)    | Includes $13,333 for 33,332 shares vested and issued in fiscal year 2010. Excludes 1,005,809 shares issued in fiscal year 2010 as part of an Employee Agreement effective July 1, 2010 but subject to forfeiture and not yet vested as of September 30, 2010. The 1,005,809 shares were subsequently forfeited and cancelled subject to a Separation Agreement and Release of Claims. |
|   |                                                                                                                                                                                                                                                                                                                                                                                  |
| (9)    | 16,666 shares vested in fiscal year 2009                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                  |
| (10)   | Excludes 1,005,809 shares issued in fiscal year 2010 as part of an Employee Agreement effective July 1, 2010 but subject to forfeiture and not yet vested as of September 30, 2010.                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                  |
| (11)   | Issuance of remaining stock for a total of $100,000                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                  |
| (12)   | Health insurance                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                  |
| (13)   | Amounts paid to Mr. Davis' consulting firm, Bene Merenti LLC for his services as Interim Chief Financial Officer.                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                  |
| (14)   | Includes $14,271 vacation payout, $7,978 value of personal use of company auto and $13,977 paid for health insurance.                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                  |
| (15)   | Includes $6,180 value of personal use of company auto and $12,662 paid for health insurance.                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                  |
| (16)   | Includes $60,000 signing bonus and $75,000 performance bonus earned in 2009 and paid in fiscal year 2010.                                                                                                                                                                                                                                                                             |

|                 |   |                                                          |   |                                                            |   |
|----------------------|--------|---------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|
|                 |   | Option Awards                                                 |   | Stock Awards                                                    |   |
| Name                 |   | Number ofSecuritiesUnderlyingUnexercisedOptions(#)Exercisable |   | Number ofSecuritiesUnderlyingUnexercisedOptions(#)Unexercisable |   | EquityIncentivePlanAwards:Number ofSecuritiesUnderlyingUnexercisedUnearnedOptions(#) |   | OptionExercisePrice($) |   | OptionExpirationDate |   | Number ofShares orUnits ofStock ThatHave notVested(#) |   | Restated MarketValue ofShares orUnits ofStock ThatHave NotVested$ |   | EquityIncentivePlanAwards:NumberofUnearnedShares,Units orOtherRightsThat HaveNotVested(#) |   | EquityIncentivePlanAwards:Market orPayoutValue ofUnearnedShares,Units orOtherRightsThatHave NotVested(#) |   |
| Jeffrey Tetzlaff (1) |   | -                                                             |   | -                                                               |   | - |   | - |   | - |   | 1,005,809 |   | $ | 372,150 |   | - |   | - |   |
| Robert Davis (2)     |   | -                                                             |   | -                                                               |   | - |   | - |   | - |   | 1,005,809 |   | $ | 372,150 |   | - |   | - |   |

----

| (1)    | Jeffrey Tetzlaff forfeited his award in connection with his resignation effective December 31, 2010. |
|--------|------------------------------------------------------------------------------------------------------|
|   |                                                                                                 |
| (2)    | Of this award, 402,324 shares were vested effective October 1, 2010.                                 |

----

|                                |   |                      |       |             |   |
|-------------------------------------|--------|---------------------------|------------|------------------|--------|
|                                |   | Restated Amount and  |       | Restated         |   |
| Name and Address of  |   | Nature of            |       | Percentage       |   |
| Beneficial Owner               |   | Beneficial Ownership |       | of Class(6) |   |
| Alan Bailey                         | (1)    | 510,779                   | (direct)   |             | 10.41  | % |
| 24160 Kelley's Beach Drive          |   | 326,889                   | (indirect) |             |   |   |
| Spirit Lake, IA 51360          |   |                      |       |             |   |   |
|                                |   |                      |       |             |   |   |
| Lisa Bailey                         | (2)    | 326,889                   | (direct)   |             | 10.41  | % |
| 24160 Kelley's Beach Dr             |   | 510,779                   | (indirect) |             |   |   |
| Spirit Lake, IA 51360          |   |                      |       |             |   |   |
|                                |   |                      |       |             |   |   |
| Joan Bailey                         |   | 1,055,592                 | (direct)   |             | 13.12  | % |
| 1209 Country Club Lane              |   |                      |       |             |   |   |
| Spencer, IA 51301              |   |                      |       |             |   |   |
|                                |   |                      |       |             |   |   |
| Robert Davis                        | (5)    | 1,005,809                 | (direct)   |             | 12.50  | % |
| c/o Cycle Country Accessories Corp. |   |                      |       |             |   |   |
| 1701 38th Avenue West               |   |                      |       |             |   |   |
| Spencer, IA 51301              |   |                      |       |             |   |   |
|                                |   |                      |       |             |   |   |
| Paul DeShaw                         | (3)    | 391,300                   | (direct)   |             | 4.97   | % |
| c/o Cycle Country Accessories Corp. |   | 8,700                     | (indirect) |             |   |   |
| 1701 38th Avenue West               |   |                      |       |             |   |   |
| Spencer, IA 51301              |   |                      |       |             |   |   |
|                                |   |                      |       |             |   |   |
| Hummingbird Management, LLC         | (4)    | 412,922                   | (direct)   |             | 5.13   | % |
| Hummingbird Value Fund, LP          |   |                      |       |             |   |   |
| TheTarsier Nanocap Value Fund, LP   |   |                      |       |             |   |   |
| Hummingbird Capital, LLC            |   |                      |       |             |   |   |
| Paul D. Sonkin                      |   |                      |       |             |   |   |
| 145 East 57th Street - 8th Floor    |   |                      |       |             |   |   |
| New York, New York 10022            |   |                      |       |             |   |   |

----

| (1)    | Includes 326,889 shares owned by Mr. Bailey's spouse, Lisa Bailey                                                                                                                                                                                                                                                         |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                           |
| (2)    | Includes 510,779 shares owned by Mrs. Bailey's spouse, Alan Bailey                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                           |
| (3)    | Includes 8,700 shares owned by Mr. DeShaw's spouse; includes 50,000 shares awarded but not yet vested and subject to forfeiture.                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                           |
| (4)    | Includes 101,000 shares owned by Hummingbird Value Fund, LP and 311,922 shares owned by The Tarsier Nanocap Value Fund, L.P. Hummingbird Management, LLC serves as the investment manager of each of Hummingbird Value Fund, LP and Tarsier Nanocap Value                                                                      |
|   |                                                                                                                                                                                                                                                                                                                           |
| (5)    | Includes 603,485 shares awarded but not yet vested and subject to forfeiture.                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                           |
| (6)    | Effective December 31, 2010, Mr. Tetzlaff and Mr. Thralow resigned their positions and will forfeit 1,005,809 (12.50%) and 50,000 (0.62%) of the 8,046,471 total shares outstanding as of December 31, 2010, respectively. Mr. Tetzlaff will retain 50,000 (0.62%) shares earned as part of a previous compensation agreement. |

----

|                                                          |   |                                                                |       |                               |   |
|---------------------------------------------------------------|--------|---------------------------------------------------------------------|------------|------------------------------------|--------|
|                                                          |   |                                                                |       |                               |   |
|                                                          |   |                                                                |       |                               |   |
| Name and Address of Beneficial Owner      |   | Amount and Nature of Beneficial Ownership (Restated) |       | Percentage ofClass (Restated) |   |
| Robert Davis, Interim CEO, COO, CFO, Corporate Secretary,     | (1)    | 1,005,809                                                           | (direct)   |                               | 12.50  | % |
| Treasurer, and Director (2009)                                |   |                                                                |       |                               |   |   |
| c/o Cycle Country Accessories Corp.                           |   |                                                                |       |                               |   |   |
| 1701 38th Ave West                                            |   |                                                                |       |                               |   |   |
| Spencer, IA 51301                                        |   |                                                                |       |                               |   |   |
|                                                          |   |                                                                |       |                               |   |   |
| Paul DeShaw, Chairman of the Audit Committee, Director (2010) | (1)    | 391,300                                                             | (direct)   |                               | 4.86   | % |
| c/o Cycle Country Accessories Corp.                           |   | 8,700                                                               | (indirect) |                               | 0.11   | % |
| 1701 38th Avenue West                                         |   |                                                                |       |                               |   |   |
| Spencer, IA 51301                                        |   |                                                                |       |                               |   |   |
|                                                          |   |                                                                |       |                               |   |   |
| All Officers and Directors as a Group (2 persons)             |   | 1,405,809                                                           |       |                               | 17.47  | % |

----

| (1) | Includes 603,485 shares issued but not yet vested and subject to forfeiture |
|-----|-----------------------------------------------------------------------------|

----

|               |   |   |    |   |   |
|--------------------|--------|--------|---------|--------|--------|
|               |   | Fiscal |    | Fiscal |   |
|               |   | 2010   |    | 2009   |   |
| Audit Fees         |   | $      | 188,200 |   | $      | 136,500 |   |
| Audit-Related Fees |   |   | 41,100  |   |   | 14,500 |   |
| Tax Fees           |   |   | 6,200   |   |   | 6,500 |   |
| All Other Fees     |   |   | 93,700  |   |   | - |   |
| Total Fees         |   | $      | 329,200 |   | $      | 157,500 |   |

----

|   |                    |
|--------|-------------------------|
|   | /s/ Robert Davis        |
|   | Robert Davis            |
|   | Chief Executive Officer |

|               |   |                                                                       |   |           |
|--------------------|--------|----------------------------------------------------------------------------|--------|----------------|
| Name and Signature |   | Title                                                                      |   | Date           |
| /s/ Robert Davis   |   | Chief Executive Officer, Chief Financial Officer, Treasurer, Secretary and |   | April 16, 2012 |
| Robert Davis       |   | Director (principal executive, financial and accounting officer)           |   |           |
|               |   |                                                                       |   |           |
| /s/ Paul DeShaw    |   | Director                                                                   |   | April 16, 2012 |
| Paul DeShaw        |   |                                                                       |   |           |

----

| ExhibitNumber |   | Exhibit                                                                                                                                                                                                                                                                     |
|---------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1           |   | Articles of Incorporation (Incorporated by reference to Exhibit 3.1 contained in the Company's Registration Statement on Form SB-2 (and amendments thereto) filed August 29, 2001 (file number 333-68570)).                                                  |
|          |   |                                                                                                                                                                                                                                                                        |
| 3.2           |   | Amended and Restated Bylaws as amended effective through May 7, 2007 (Incorporated by reference to Exhibit 3.3 contained in the Company's Quarterly Report on Form 10-QSB for the quarterly period ended March 30, 2007).                               |
|          |   |                                                                                                                                                                                                                                                                        |
| 10.2          |   | Lease of Milford Facility, dated November 9, 2007 (Incorporated by reference to Exhibit 10 contained in the Company's Current Report on Form 8-K filed November 20, 2007)                                                                               |
|          |   |                                                                                                                                                                                                                                                                        |
| 10.3          |   | Secured Credit Agreement, dated August 21, 2001 (Incorporated by reference to Form SB-2 filed August 29, 2001 (file number 333-68570))                                                                                                                       |
|          |   |                                                                                                                                                                                                                                                                        |
| 10.4          |   | First Amendment to Secured Credit Agreement, dated July 22, 2002. (Incorporated by reference)                                                                                                                                                                          |
|          |   |                                                                                                                                                                                                                                                                        |
| 10.5          |   | Second Amendment to Secured Credit Agreement, dated May 30, 2003 (Incorporated by reference to Exhibit 10.10 contained in the Company's registration statement on Form SB-2 (and amendments thereto filed January 20, 2006 (file number 333-131775))    |
|          |   |                                                                                                                                                                                                                                                                        |
| 10.6          |   | Third Amendment to Secured Credit Agreement, dated June 25, 2003 (Incorporated by reference to Exhibit 10.11 contained in the Company's registration statement on Form SB-2 (and amendments thereto filed January 20, 2006 (file number 333-131775))    |
|          |   |                                                                                                                                                                                                                                                                        |
| 10.7          |   | Fourth Amendment to Secured Credit Agreement, dated January 1, 2005 (Incorporated by reference to Exhibit 10.12 contained in the Company's registration statement on Form SB-2 (and amendments thereto filed January 20, 2006 (file number 333-131775)) |
|          |   |                                                                                                                                                                                                                                                                        |
| 10.8          |   | Fifth Amendment to Secured Credit Agreement, dated April 29, 2005 (Incorporated by reference to Exhibit 10.13 contained in the Company's registration statement on Form SB-2 (and amendments thereto filed January 20, 2006 (file number 333-131775))   |
|          |   |                                                                                                                                                                                                                                                                        |
| 10.9          |   | Executive Employment Agreement between the Company and Robert Davis (Incorporated by reference to Exhibit 10.1, contained in the Company's Current Report on Form 8-K filed December 9, 2010)                                                                |
|          |   |                                                                                                                                                                                                                                                                        |
| 10.10         |   | Separation Agreement and Release of Claims, between the Company and Jeffrey M. Tetzlaff (Incorporated by reference to Exhibit 99.1 contained in the Company's Current Report on Form 8-K filed January 6, 2011)                                              |
|          |   |                                                                                                                                                                                                                                                                        |
| 10.11         |   | Sixth Amendment to Secured Credit Agreement, dated April 26, 2055 (previously filed)                                                                                                                                                                                        |
|          |   |                                                                                                                                                                                                                                                                        |
| 10.12         |   | Seventh Amendment to Secured Credit Agreement and Waiver dated January 17, 2011 (previously filed)                                                                                                                                                                          |
|          |   |                                                                                                                                                                                                                                                                        |
| 10.13         |   | 2007 Incentive Compensation Plan (previously filed)                                                                                                                                                                                                                         |
|          |   |                                                                                                                                                                                                                                                                        |
| 31.1          |   | Certification required by Rule 13a-14(a).                                                                                                                                                                                                                              |
|          |   |                                                                                                                                                                                                                                                                        |
| 32.1          |   | Certification of Interim Chief Executive Officer, Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                       |
|          |   |                                                                                                                                                                                                                                                                        |
| 32.2          |   | Certification of Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                               |

----

|                                                    |   |
|---------------------------------------------------------|--------|
|                                                    | Page   |
|                                                    |   |
| Report of Independent Registered Public Accounting Firm | F-2    |
|                                                    |   |
| Consolidated Financial Statements                       |   |
|                                                    |   |
| Consolidated Balance Sheet                              | F-3    |
|                                                    |   |
| Consolidated Statements of Operations                   | F-4    |
|                                                    |   |
| Consolidated Statements of Stockholder Equity           | F-5    |
|                                                    |   |
| Consolidated Statements of Cash Flows                   | F-6    |
|                                                    |   |
| Notes to Consolidated Financial Statements              | F-8    |

----

|   |   |                                                  |
|--------|--------|-------------------------------------------------------|
|   |   | /s/ Boulay, Heutmaker, Zibell & Co. P.L.L.P. |
|   |   | Certified Public Accountants                          |

----

|                                                                                                                                                       |                               |       |                   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|------------|------------------------|--------|
|                                                                                                                                                       | September 30,2010 Restated(1) |       | September 30,2009 |   |
| Assets                                                                                                                                                     |                               |       |                   |   |   |   |
| Current Assets                                                                                                                                             |                               |       |                   |   |   |   |
| Cash and cash equivalents                                                                                                                                  | $                                  | 28,939     |                   | $      | 27,490 |   |
| Accounts receivable, net                                                                                                                                   |                               | 1,963,548  |                   |   | 1,819,552 |   |
| Inventories                                                                                                                                                |                               | 3,208,749  |                   |   | 3,588,880 |   |
| Income taxes receivable                                                                                                                                    |                               | 640,733    |                   |   | 997,413 |   |
| Deferred income taxes                                                                                                                                      |                               | 366,000    |                   |   | 448,000 |   |
| Prepaid expenses and other                                                                                                                                 |                               | 320,475    |                   |   | 77,397 |   |
| Total current assets                                                                                                                                       |                               | 6,528,444  |                   |   | 6,958,732 |   |
|                                                                                                                                                       |                               |       |                   |   |   |   |
| Property, plant and equipment, net                                                                                                                         |                               | 10,028,623 |                   |   | 10,803,308 |   |
| Intangible assets, net                                                                                                                                     |                               | 161,957    |                   |   | 178,547 |   |
| Other assets                                                                                                                                               |                               | 7,413      |                   |   | 40,388 |   |
|                                                                                                                                                       |                               |       |                   |   |   |   |
| Total assets                                                                                                                                               | $                                  | 16,726,437 |                   | $      | 17,980,975 |   |
|                                                                                                                                                       |                               |       |                   |   |   |   |
| Liabilities and Stockholders' Equity                                                                                                                       |                               |       |                   |   |   |   |
| Current Liabilities:                                                                                                                                       |                               |       |                   |   |   |   |
| Disbursements in excess of bank balances                                                                                                                   | $                                  | 387,141    |                   | $      | 438,636 |   |
| Accounts payable                                                                                                                                           |                               | 695,241    |                   |   | 562,689 |   |
| Accrued expenses                                                                                                                                           |                               | 1,055,583  |                   |   | 747,044 |   |
| Bank line of credit                                                                                                                                        |                               | 2,700,000  |                   |   | 1,030,000 |   |
| Current portion of notes payable                                                                                                                           |                               | 699,681    |                   |   | 863,160 |   |
| Current portion of deferred gain                                                                                                                           |                               | 27,754     |                   |   | 166,524 |   |
| Total current liabilities                                                                                                                                  |                               | 5,565,400  |                   |   | 3,808,053 |   |
|                                                                                                                                                       |                               |       |                   |   |   |   |
| Long-Term Liabilities:                                                                                                                                     |                               |       |                   |   |   |   |
| Notes payable, less current portion                                                                                                                        |                               | 2,478,279  |                   |   | 3,111,783 |   |
| Deferred gain, less current portion                                                                                                                        |                               | -          |                   |   | 27,754 |   |
| Deferred income taxes                                                                                                                                      |                               | 1,587,000  |                   |   | 2,142,000 |   |
|                                                                                                                                                       |                               |       |                   |   |   |   |
| Total long term liabilities                                                                                                                                |                               | 4,065,279  |                   |   | 5,281,537 |   |
| Total liabilities                                                                                                                                          |                               | 9,630,679  |                   |   | 9,089,590 |   |
|                                                                                                                                                       |                               |       |                   |   |   |   |
| Stockholders' Equity:                                                                                                                                      |                               |       |                   |   |   |   |
| Common stock, $.0001 par value; 100,000,000 shares authorized; 8,046,471 and 7,482,677 shares issued and 8,046,471 and 6,072,307 outstanding, respectively |                               | 805        |                   |   | 748 |   |
| Additional paid-in capital                                                                                                                                 |                               | 12,495,917 |                   |   | 14,849,334 |   |
| Accumulated deficit                                                                                                                                        |                               | (5,400,964 | )                      |   | (3,377,061 | ) |
| Treasury stock                                                                                                                                             |                               | -          |                   |   | (2,581,636 | ) |
| Total stockholders' equity                                                                                                                                 |                               | 7,095,758  |                   |   | 8,891,385 |   |
|                                                                                                                                                       |                               |       |                   |   |   |   |
| Total liabilities and stockholders' equity                                                                                                                 | $                                  | 16,726,437 |                   | $      | 17,980,975 |   |

----

|                                          |   |             |       |   |   |
|-----------------------------------------------|--------|------------------|------------|--------|--------|
|                                          |   | 2010 Restated(1) |       | 2009   |   |
| Revenue                                       |   |             |       |   |   |   |   |
|                                          |   |             |       |   |   |   |   |
| Net sales                                     |   | $                | 11,861,990 |   | $      | 10,188,884 |   |
| Freight income                                |   |             | 82,472     |   |   | 92,842 |   |
|                                          |   |             |       |   |   |   |   |
| Total revenues                                |   |             | 11,944,462 |   |   | 10,281,726 |   |
|                                          |   |             |       |   |   |   |   |
| Cost of goods sold                            |   |             | 9,946,559  |   |   | 8,834,912 |   |
|                                          |   |             |       |   |   |   |   |
| Gross profit                                  |   |             | 1,997,903  |   |   | 1,446,814 |   |
|                                          |   |             |       |   |   |   |   |
| Selling, general, and administrative expenses |   |             | 4,854,218  |   |   | 3,872,719 |   |
| Goodwill impairment                           |   |             | -          |   |   | 4,890,146 |   |
| Fraud expense                                 |   |             | 134,775    |   |   | 620,000 |   |
|                                          |   |             |       |   |   |   |   |
| Total operating expenses                      |   |             | 4,988,993  |   |   | 9,382,865 |   |
|                                          |   |             |       |   |   |   |   |
| Loss from operations                          |   |             | (2,991,090 | )      |   | (7,936,051 | ) |
|                                          |   |             |       |   |   |   |   |
| Other income (expense)                        |   |             |       |   |   |   |   |
|                                          |   |             |       |   |   |   |   |
| Interest expense                              |   |             | (318,742   | )      |   | (336,461 | ) |
| Interest income                               |   |             | 8,302      |   |   | 1,720 |   |
| Miscellaneous                                 |   |             | 167,627    |   |   | 10,999 |   |
|                                          |   |             |       |   |   |   |   |
| Total other expense, net                      |   |             | (142,813   | )      |   | (323,742 | ) |
|                                          |   |             |       |   |   |   |   |
| Loss before income tax benefit                |   |             | (3,133,903 | )      |   | (8,259,793 | ) |
|                                          |   |             |       |   |   |   |   |
| Income tax benefit                            |   |             | 1,110,000  |   |   | 1,461,000 |   |
|                                          |   |             |       |   |   |   |   |
| Net loss                                      |   | $                | (2,023,903 | )      | $      | (6,798,793 | ) |
|                                          |   |             |       |   |   |   |   |
| Weighted average shares of common stock       |   |             |       |   |   |   |   |
| Basic                                         |   |             | 6,068,247  |   |   | 6,059,854 |   |
|                                          |   |             |       |   |   |   |   |
| Diluted                                       |   |             | 6,068,247  |   |   | 6,059,854 |   |
|                                          |   |             |       |   |   |   |   |
| Loss per common share:                        |   |             |       |   |   |   |   |
| Basic                                         |   | $                | (0.33      | )      | $      | (1.12 | ) |
|                                          |   |             |       |   |   |   |   |
| Diluted                                       |   | $                | (0.33      | )      | $      | (1.12 | ) |

----

|                                                                |   |        |       |                                 |   |                                 |   |          |       |                   |   |
|---------------------------------------------------------------------|--------|-------------|------------|--------------------------------------|--------|--------------------------------------|--------|---------------|------------|------------------------|--------|
|                                                                |   | CommonStock |       | Additional Paid-In Capital |   | RetainedEarnings(AccumulatedDeficit) |   | TreasuryStock |       | TotalStockholderEquity |   |
| Balances at September 30, 2008                                 |   | $           | 743        |                                 | $      | 14,729,338                           |   | $             | 3,421,732  |                   | $      | (2,581,636 | ) | $ | 15,570,177 |   |
| Net Loss                                                            |   |        | (6,798,793 | )                                    |   | (6,798,793                           | )      |          |       |                   |   |   |   |   |   |   |
| Issuance of Common Stock - Compensation Fees                        |   |        |       |                                 |   |                                 |   |          |       |                   |   |   |   |   |   |   |
| $97,500 yearly accrual of signing bonus                             |   |        | -          |                                 |   | 97,500                               |   |          |       |                   |   |   |   |   | 97,500 |   |
| Issuance of Common Stock - Consulting Fees                          |   |        |       |                                 |   |                                 |   |          |       |                   |   |   |   |   |   |   |
| 50,000 shares at $0.45 per share                                    |   |        | 5          |                                 |   | 22,496                               |   |          |       |                   |   |   |   |   | 22,501 |   |
| Balances at September 30, 2009                                 |   |        | 748        |                                 |   | 14,849,334                           |   |          | (3,377,061 | )                      |   | (2,581,636 | ) |   | 8,891,385 |   |
| Net Loss (Restated) (1)                                             |   |        | (2,023,903 | )                                    |   | (2,023,903                           | )      |          |       |                   |   |   |   |   |   |   |
| Treasury Stock - recovery of 195,416 shares at $0.6141 per share    |   |        | (120,000   | )                                    |   | (120,000                             | )      |          |       |                   |   |   |   |   |   |   |
| Treasury Stock - cancel 195,416 shares at $0.6141 per share         |   |        | (20        | )                                    |   | (119,980                             | )      |          |       |                   |   | 120,000 |   |   | - |   |
| Treasury Stock - cancel 1,410,730 shares at $1.83 per share         |   |        | (141       | )                                    |   | (2,581,495                           | )      |          |       |                   |   | 2,581,636 |   |   | - |   |
| Issuance of Common Stock                                            |   |        |       |                                 |   |                                 |   |          |       |                   |   |   |   |   |   |   |
| Issue 3,609 shares to directors                                     |   |        | -          |                                 |   | 5,999                                |   |          |       |                   |   |   |   |   | 5,999 |   |
| Issue 5,373 shares to directors (Restated)(1)                       |   |        | 1          |                                 |   | 2,499                                |   |          |       |                   |   |   |   |   | 2,500 |   |
| Issue 50,000 shares to officers (Restated)(1)                       |   |        | 5          |                                 |   | (5                                   | )      |          |       |                   |   |   |   |   | - |   |
|                                                                |   |        |       |                                 |   |                                 |   |          |       |                   |   |   |   |   |   |   |
| Stock-based compensation (Restated)(1)                              |   |        | 339,778    |                                 |   | 339,778                              |   |          |       |                   |   |   |   |   |   |   |
|                                                                |   |        |       |                                 |   |                                 |   |          |       |                   |   |   |   |   |   |   |
| Issuance of Restricted Common Stock                                 |   |        |       |                                 |   |                                 |   |          |       |                   |   |   |   |   |   |   |
| Issue 2,011,618 restricted common shares to officers (Restated) (1) |   |        | 202        |                                 |   | (202                                 | )      |          |       |                   |   |   |   |   | - |   |
| Issue 100,000 restricted common shares to directors (Restated) (1)  |   |        | 10         |                                 |   | (10                                  | )      |          |       |                   |   |   |   |   | - |   |
|                                                                |   |        |       |                                 |   |                                 |   |          |       |                   |   |   |   |   |   |   |
| Balances at September 30, 2010 (Restated)(1)                   |   | $           | 805        |                                 | $      | 12,495,917                           |   | $             | (5,400,964 | )                      | $      | - |   | $ | 7,095,758 |   |

----

|                                                                            |   |               |       |   |   |
|---------------------------------------------------------------------------------|--------|--------------------|------------|--------|--------|
|                                                                            |   | 2010 (Restated)(1) |       | 2009   |   |
| Cash Flows from Operating Activities:                                           |   |               |       |   |   |   |   |
| Net loss                                                                        |   | $                  | (2,023,903 | )      | $      | (6,798,793 | ) |
|                                                                            |   |               |       |   |   |   |   |
| Adjustments to reconcile net loss to net cash provided by operating activities: |   |               |       |   |   |   |   |
| Depreciation                                                                    |   |               | 774,140    |   |   | 829,870 |   |
| Amortization                                                                    |   |               | 6,155      |   |   | 5,901 |   |
| Inventory reserve                                                               |   |               | -          |   |   | 14,766 |   |
| Stock-based compensation                                                        |   |               | 348,278    |   |   | 120,000 |   |
| Goodwill impairment                                                             |   |               | -          |   |   | 4,890,146 |   |
| (Gain) loss on sale of property, plant and equipment                            |   |               | 94,555     |   |   | (164,590 | ) |
| Deferred income taxes                                                           |   |               | (473,000   | )      |   | (320,892 | ) |
| Fraud recovery                                                                  |   |               | (120,000   | )      |   | - |   |
| Change in:                                                                      |   |               |       |   |   |   |   |
| Accounts receivable, net                                                        |   |               | (143,996   | )      |   | 1,116,096 |   |
| Inventories                                                                     |   |               | 380,131    |   |   | 1,506,852 |   |
| Income tax receivable                                                           |   |               | 356,680    |   |   | (982,633 | ) |
| Prepaid expenses and other, net                                                 |   |               | (243,078   | )      |   | 132,220 |   |
| Other assets                                                                    |   |               | 32,975     |   |   | 7,975 |   |
| Accounts payable, net                                                           |   |               | 132,552    |   |   | (14,589 | ) |
| Accrued expenses                                                                |   |               | 308,539    |   |   | 21,963 |   |
|                                                                            |   |               |       |   |   |   |   |
| Net cash provided by (used for) operating activities                            |   |               | (569,972   | )      |   | 364,292 |   |
|                                                                            |   |               |       |   |   |   |   |
| Cash Flows from Investing Activities:                                           |   |               |       |   |   |   |   |
| Purchase of property, plant and equipment                                       |   |               | (274,410   | )      |   | (221,200 | ) |
| Purchase of intangible assets, net                                              |   |               | 10,435     |   |   | (6,637 | ) |
| Proceeds from sale of property, plant and equipment                             |   |               | 13,875     |   |   | 35,458 |   |
|                                                                            |   |               |       |   |   |   |   |
| Net cash used for investing activities                                          |   |               | (250,100   | )      |   | (192,379 | ) |
|                                                                            |   |               |       |   |   |   |   |
| Cash Flows from Financing Activities:                                           |   |               |       |   |   |   |   |
| Change in disbursements in excess of bank balances                              |   |               | (51,495    | )      |   | 438,636 |   |
| Payments on bank notes payable                                                  |   |               | (856,984   | )      |   | (807,635 | ) |
| Advance on development loan                                                     |   |               | 60,000     |   |   | - |   |
| Bank line of credit, net                                                        |   |               | 1,670,000  |   |   | 30,000 |   |
|                                                                            |   |               |       |   |   |   |   |
| Net cash provided by (used for) financing activities                            |   |               | 821,521    |   |   | (338,999 | ) |
|                                                                            |   |               |       |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                            |   |               | 1,449      |   |   | (167,086 | ) |
|                                                                            |   |               |       |   |   |   |   |
| Cash and cash equivalents, beginning of year                                    |   |               | 27,490     |   |   | 194,576 |   |
|                                                                            |   |               |       |   |   |   |   |
| Cash and cash equivalents, end of year                                          |   | $                  | 28,939     |   | $      | 27,490 |   |

----

|                                                             |   |               |     |   |   |
|------------------------------------------------------------------|--------|--------------------|----------|--------|--------|
|                                                             |   | 2010 (Restated)(1) |     | 2009   |   |
| Supplemental disclosures of cash flow information:               |   |               |     |   |   |   |   |
|                                                             |   |               |     |   |   |   |   |
| Cash paid during the year for:                                   |   |               |     |   |   |   |   |
|                                                             |   |               |     |   |   |   |   |
| Interest                                                         |   | $                  | 315,704  |   | $      | 336,950 |   |
|                                                             |   |               |     |   |   |   |   |
| Income tax refunds, net                                          |   | $                  | (993,680 | )      | $      | (159,380 | ) |
|                                                             |   |               |     |   |   |   |   |
| Supplemental schedule of non-cash investing and financing:       |   |               |     |   |   |   |   |
|                                                             |   |               |     |   |   |   |   |
| Issuance of common stock for payment of consultant fees          |   | $                  | -        |   | $      | 22,501 |   |
|                                                             |   |               |     |   |   |   |   |
| Recovery of treasury shares from fraud                           |   | $                  | 120,000  |   | $      | - |   |
|                                                             |   |               |     |   |   |   |   |
| Issuance of common stock and options for payment of compensation |   | $                  | -        |   | $      | 97,500 |   |

----

----

|                   |   |   |   |   |
|------------------------|--------|--------|--------|--------|
| Asset Description |   |   | Years  |   |
| Land Improvements      |   |   | 15-20  |   |
| Building               |   |   | 15-40  |   |
| Plant Equipment        |   |   | 7-10   |   |
| Tooling and Dies       |   |   | 3-7    |   |
| Vehicles               |   |   | 3-7    |   |
| Office Equipment       |   |   | 3-10   |   |

----

----

----

|              |   |   |      |   |   |
|-------------------|--------|--------|-----------|--------|--------|
|              |   | 2010   |      | 2009   |   |
| Raw Material      |   | $      | 1,386,948 |   | $      | 1,522,838 |   |
| Work in Process   |   |   | 69,481    |   |   | 160,160 |   |
| Finished Goods    |   |   | 1,902,320 |   |   | 2,055,882 |   |
| Inventory Reserve |   |   | (150,000  | )      |   | (150,000 | ) |
| Total Inventories |   | $      | 3,208,749 |   | $      | 3,588,880 |   |

----

|                          |   |   |       |   |   |
|-------------------------------|--------|--------|------------|--------|--------|
|                          |   | 2010   |       | 2009   |   |
| Land                          |   | $      | 119,820    |   | $      | 119,820 |   |
| Land Improvements             |   |   | 160,442    |   |   | 160,442 |   |
| Building                      |   |   | 5,727,051  |   |   | 5,707,601 |   |
| Plant Equipment               |   |   | 7,356,101  |   |   | 7,737,780 |   |
| Tooling and Dies              |   |   | 1,070,692  |   |   | 971,279 |   |
| Vehicles                      |   |   | 423,912    |   |   | 434,906 |   |
| Office Equipment              |   |   | 1,164,888  |   |   | 1,100,224 |   |
| Construction in Progress      |   |   | 3,800      |   |   | 9,328 |   |
|                          |   |   | 16,026,706 |   |   | 16,241,380 |   |
| Less Accumulated Depreciation |   |   | (5,998,083 | )      |   | (5,438,072 | ) |
|                          |   | $      | 10,028,623 |   | $      | 10,803,308 |   |

|                          |   |                      |   |                         |   |
|-------------------------------|--------|---------------------------|--------|------------------------------|--------|
|                          |   | Weighted-                 |   | September 30, 2010 |   |
|                          |   | AverageAmortizationPeriod |   | GrossCarryingAmount          |   | AccumulatedAmortization |   | Net |   |
| Amortized Intangible Assets   |   |                      |   |                         |   |   |   |   |   |   |   |   |   |
| Patents                       |   |                      | 11.85  |                         | $      | 73,415 |   | $ | 47,776 |   | $ | 25,639 |   |
|                          |   |                      |   |                         |   |   |   |   |   |   |   |   |   |
| Unamortized Intangible Assets |   |                      |   |                         |   |   |   |   |   |   |   |   |   |
| Trademarks                    |   |                      |   |                         |   | 125,418 |   |   | - |   |   | 125,418 |   |
|                          |   |                      |   |                         |   |   |   |   |   |   |   |   |   |
| Total                         |   |                      |   |                         | $      | 198,833 |   | $ | 47,776 |   | $ | 151,057 |   |

|                          |   |                      |   |                         |   |
|-------------------------------|--------|---------------------------|--------|------------------------------|--------|
|                          |   | Weighted-                 |   | September 30, 2009 |   |
|                          |   | AverageAmortizationPeriod |   | GrossCarryingAmount          |   | AccumulatedAmortization |   | Net |   |
| Amortized Intangible Assets   |   |                      |   |                         |   |   |   |   |   |   |   |   |   |
| Patents                       |   |                      | 11.52  |                         | $      | 67,715 |   | $ | 41,622 |   | $ | 26,093 |   |
|                          |   |                      |   |                         |   |   |   |   |   |   |   |   |   |
| Unamortized Intangible Assets |   |                      |   |                         |   |   |   |   |   |   |   |   |   |
| Trademarks                    |   |                      |   |                         |   | 124,835 |   |   | - |   |   | 124,835 |   |
|                          |   |                      |   |                         |   |   |   |   |   |   |   |   |   |
| Total                         |   |                      |   |                         | $      | 192,550 |   | $ | 41,622 |   | $ | 150,928 |   |

----

|       |   |   |   |   |
|------------|--------|--------|--------|--------|
| 2011       |   | $      | 6,281  |   |
| 2012       |   |   | 6,281  |   |
| 2013       |   |   | 3,630  |   |
| 2014       |   |   | 1,458  |   |
| 2015       |   |   | 1,069  |   |
| Thereafter |   |   | 6,920  |   |
|       |   | $      | 25,639 |   |

|                                          |   |   |   |   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|
|                                          |   | 2010   |   | 2009   |   |
| Unamortized Loan Costs                        |   | $      | 7,413  |   | $      | 15,388 |   |
|                                          |   |   |   |   |   |   |   |
| Investment in Golden Rule (Bermuda), Ltd |   |   | -      |   |   | 25,000 |   |
|                                          |   | $      | 7,413  |   | $      | 40,388 |   |

|                                  |   |          |      |   |   |
|---------------------------------------|--------|---------------|-----------|--------|--------|
|                                  |   | 2010 Restated |      | 2009   |   |
|                                  |   |          |      |   |   |   |   |
| Accrued salaries and related benefits |   | $             | 543,286   |   | $      | 326,803 |   |
| Accrued warranty expense              |   |          | 50,000    |   |   | 50,000 |   |
| Accrued real estate tax               |   |          | 102,480   |   |   | 110,127 |   |
| Accrued royalty expense               |   |          | 1,731     |   |   | 5,131 |   |
| Accrued interest                      |   |          | 6,418     |   |   | 3,381 |   |
| Accrued customer incentive program    |   |          | 196,866   |   |   | - |   |
| Accrued expense - other               |   |          | 154,802   |   |   | 251,602 |   |
| Total                                 |   | $             | 1,055,583 |   | $      | 747,044 |   |

----

|                                                                                                                                                                                                                                                                                                                          |   |   |      |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|
|                                                                                                                                                                                                                                                                                                                          |   | 2010   |      | 2009   |   |
|                                                                                                                                                                                                                                                                                                                          |   |   |      |   |   |   |   |
| Note 1 to commercial lender payable in equal monthly installments of $42,049 including interest at 6.125%. The note matures April 2011 and is secured by all Company assets.                                                                                                                                                  |   | $      | 284,263   |   | $      | 755,094 |   |
|                                                                                                                                                                                                                                                                                                                          |   |   |      |   |   |   |   |
| Note 2 to commercial lender payable in equal monthly installments of $33,449 including interest fixed at 6.125% until April 2011. Beginning April 2011, the interest is reset every 60 months to 0.50% over prime not to exceed 10.5% or be less than 5.5%. The note matures April 2018 and is secured by all Company assets. |   |   | 2,418,530 |   |   | 2,660,690 |   |
|                                                                                                                                                                                                                                                                                                                          |   |   |      |   |   |   |   |
| Note 3 to commercial lender payable in equal monthly installments of $14,567 including interest at 6.125% until maturity of April 2013 secured by the specific equipment acquired.                                                                                                                                            |   |   | 415,167   |   |   | 559,159 |   |
|                                                                                                                                                                                                                                                                                                                          |   |   |      |   |   |   |   |
| Note - Spencer Area Jobs Trust due in full March 2014 forgivable in full if the Company maintains required job levels.                                                                                                                                                                                                        |   |   | 60,000    |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                          |   |   |      |   |   |   |   |
| Total                                                                                                                                                                                                                                                                                                                         |   |   | 3,177,960 |   |   | 3,974,943 |   |
| Less current maturities                                                                                                                                                                                                                                                                                                       |   |   | (699,681  | )      |   | (863,160 | ) |
| Net                                                                                                                                                                                                                                                                                                                           |   | $      | 2,478,279 |   | $      | 3,111,783 |   |

----

|       |   |   |      |
|------------|--------|--------|-----------|
| 2011       |   | $      | 699,681   |
| 2012       |   |   | 441,718   |
| 2013       |   |   | 395,237   |
| 2014       |   |   | 374,947   |
| 2015       |   |   | 334,788   |
| Thereafter |   |   | 931,589   |
|       |   | $      | 3,177,960 |

|                 |   |            |       |   |   |
|----------------------|--------|-----------------|------------|--------|--------|
|                 |   | 2010 (Restated) |       | 2009   |   |
| Current tax benefit  |   | $               | (637,000   | )      | $      | (1,140,108 | ) |
| Deferred tax benefit |   |            | (473,000   | )      |   | (320,892 | ) |
| Total tax benefit    |   | $               | (1,110,000 | )      | $      | (1,461,000 | ) |

|                                            |   |            |       |   |   |
|-------------------------------------------------|--------|-----------------|------------|--------|--------|
|                                            |   | 2010 (Restated) |       | 2009   |   |
| Deferred Tax Assets:                            |   |            |       |   |   |   |   |
| Inventory reserve                               |   | $               | 141,000    |   | $      | 51,000 |   |
| Capitalized fees                                |   |            | 37,000     |   |   | 39,000 |   |
| Accrued expenses                                |   |            | 210,000    |   |   | 124,000 |   |
| Allowance for uncollectible accounts            |   |            | 5,000      |   |   | 5,000 |   |
| Deferred gain on sale                           |   |            | 9,000      |   |   | 66,000 |   |
| Charitable contributions                        |   |            | 13,000     |   |   | 11,000 |   |
| Theft loss discovered in subsequent fiscal year |   |            | -          |   |   | 211,000 |   |
| NOL carryforward                                |   |            | 292,000    |   |   | - |   |
| State NOL carryforward                          |   |            | 52,000     |   |   | 22,000 |   |
| Business credit carryforward                    |   |            | 177,000    |   |   | 91,000 |   |
| Total Deferred Assets                           |   |            | 936,000    |   |   | 620,000 |   |
|                                            |   |            |       |   |   |   |   |
| Deferred Tax Liability                          |   |            |       |   |   |   |   |
| Property and equipment                          |   |            | (2,157,000 | )      |   | (2,314,000 | ) |
| Net Deferred Tax                                |   | $               | (1,221,000 | )      | $      | (1,694,000 | ) |

|                       |   |            |       |   |   |
|----------------------------|--------|-----------------|------------|--------|--------|
|                       |   | 2010 (Restated) |       | 2009   |   |
| Current Assets             |   | $               | 366,000    |   | $      | 448,000 |   |
| Long-Term Liabilities      |   |            | (1,587,000 | )      |   | (2,142,000 | ) |
| Net Deferred Tax Liability |   | $               | (1,221,000 | )      | $      | (1,694,000 | ) |

----

|                                         |   |            |       |   |   |
|----------------------------------------------|--------|-----------------|------------|--------|--------|
|                                         |   | 2010 (Restated) |       | 2009   |   |
| Federal statutory tax                        |   | $               | (1,065,500 | )      | $      | (2,808,000 | ) |
| Permanent items                              |   |            | 71,200     |   |   | 1,701,000 |   |
| IRS adjustment                               |   |            | -          |   |   | (220,000 | ) |
| State taxes                                  |   |            | (37,600    | )      |   | (44,000 | ) |
| Other R&D and Workers Opportunity Credit |   |            | (78,100    | )      |   | (90,000 | ) |
|                                         |   | $               | (1,110,000 | )      | $      | (1,461,000 | ) |

----

|   |   |    |
|--------|--------|---------|
| 2011   | $      | 78,889  |
| 2012   |   | 50,103  |
| 2013   |   | 51,589  |
| 2014   |   | 52,608  |
| 2015   |   | 13,152  |
|   | $      | 246,340 |

----

|   |    |                                                                                                                                                                                                                                                                                |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ▪ | Cycle Country ATV Accessories is engaged in the design, manufacture, and sale of accessories for all terrain vehicles (ATVs) and utility vehicles (UTVs) such as snowplow blades, lawnmowers, spreaders, sprayers, tillage equipment, winch mounts, utility boxes, and oil filters. |
|   |    |                                                                                                                                                                                                                                                                                |
|   | ▪ | Plazco, the Company's plastic products division, designs, manufactures, markets, and distributes injection-molded plastic products for vehicles such as golf cars, lawn mowers, and low-speed vehicles (LSVs).                                                                      |
|   |    |                                                                                                                                                                                                                                                                                |
|   | ▪ | Perf-Form, the Company's oil filter division, is engaged in the design, manufacturing, sales, and distribution of oil filters for the powersports category, including ATVs, UTVs, LSVs and Motorcycles.                                                                             |
|   |    |                                                                                                                                                                                                                                                                                |
|   | ▪ | Imdyne, the Company's contract manufacturing division, is engaged in the design, manufacture and assembly of a wide array of parts, components, and other products for non-competing OEM and other businesses.                                                                      |

----

|                                  |   |            |       |   |   |
|---------------------------------------|--------|-----------------|------------|--------|--------|
|                                  |   | 2010 (Restated) |       | 2009   |   |
| Total Revenue by Segment              |   |            |       |   |   |   |   |
| CCAC ATV                              |   | $               | 9,025,443  |   | $      | 8,649,967 |   |
| Plazco                                |   |            | 467,032    |   |   | 689,792 |   |
| Perf-Form                             |   |            | 205,250    |   |   | 254,197 |   |
| Imdyne                                |   |            | 3,195,293  |   |   | 1,425,997 |   |
|                                  |   |            |       |   |   |   |   |
| Total Revenue by Segment              |   |            | 12,893,018 |   |   | 11,019,953 |   |
|                                  |   |            |       |   |   |   |   |
| Freight Income                        |   |            | 82,472     |   |   | 92,842 |   |
| Sales Discounts & Allowances |   |            | (1,031,028 | )      |   | (831,069 | ) |
|                                  |   |            |       |   |   |   |   |
| Total Consolidated Revenue            |   | $               | 11,944,462 |   | $      | 10,281,726 |   |
|                                  |   |            |       |   |   |   |   |
| Gross Profit (Loss) by Segment        |   |            |       |   |   |   |   |
| CCAC ATV                              |   | $               | 4,529,672  |   | $      | 3,807,060 |   |
| Plazco                                |   |            | 14,237     |   |   | 378,522 |   |
| Perf-Form                             |   |            | (22,456    | )      |   | 62,713 |   |
| Imdyne                                |   |            | 1,018,890  |   |   | 348,378 |   |
|                                  |   |            |       |   |   |   |   |
| Total Gross Profit by Segment         |   |            | 5,540,343  |   |   | 4,596,672 |   |
|                                  |   |            |       |   |   |   |   |
| Freight Income                        |   |            | 82,472     |   |   | 92,842 |   |
| Sales Disc. & Allow.         |   |            | (1,031,028 | )      |   | (831,069 | ) |
| Factory Overhead                      |   |            | (2,593,884 | )      |   | (2,411,631 | ) |
|                                  |   |            |       |   |   |   |   |
| Gross Profit                          |   |            | 1,997,903  |   |   | 1,446,814 |   |
|                                  |   |            |       |   |   |   |   |
| Sales, General & Admin.      |   |            | (4,759,663 | )      |   | (4,037,309 | ) |
| Goodwill Impairment                   |   |            | -          |   |   | (4,890,146 | ) |
| Fraud Expense, Net                    |   |            | (134,775   | )      |   | (620,000 | ) |
| Gain (Loss) on Sale of Assets         |   |            | (94,555    | )      |   | 164,590 |   |
| Interest Expense, Net                 |   |            | (310,440   | )      |   | (334,741 | ) |
| Other Inc/Exp, Net                    |   |            | 167,627    |   |   | 10,999 |   |
| Income Tax Benefit                    |   |            | 1,110,000  |   |   | 1,461,000 |   |
|                                  |   |            |       |   |   |   |   |
| Net Loss                              |   | $               | (2,023,903 | )      | $      | (6,798,793 | ) |

|                       |   |            |       |   |   |       |   |
|----------------------------|--------|-----------------|------------|--------|--------|------------|--------|
|                       |   | 2010 (Restated) |       | 2009   |   |
| CCAC ATV                   |   | $               | 4,521,359  |   | $      | 4,832,042  |   |
| Plazco                     |   |            | 375,887    |   |   | 553,528    |   |
| Perf-Form                  |   |            | 216,303    |   |   | 71,850     |   |
| Imdyne                     |   |            | 10,226,307 |   |   | 10,932,867 |   |
| Total Identifiable Assets  |   |            | 15,339,856 |   |   | 16,390,287 |   |
|                       |   |            |       |   |   |       |   |
| Corporate and Other Assets |   |            | 1,386,581  |   |   | 1,590,688  |   |
| Total Assets               |   | $               | 16,726,437 |   | $      | 17,980,975 |   |

----

|            |   |            |       |   |   |
|-----------------|--------|-----------------|------------|--------|--------|
|            |   | 2010 (Restated) |       | 2009   |   |
| United States   |   | $               | 10,973,245 |   | $      | 9,267,487 |   |
| Other Countries |   |            | 971,217    |   |   | 1,014,239 |   |
| Total Revenue   |   | $               | 11,944,462 |   | $      | 10,281,726 |   |

----

|                                                      |   |                 |    |                                             |   |                                      |   |           |    |                                    |   |
|-----------------------------------------------------------|--------|----------------------|---------|--------------------------------------------------|--------|-------------------------------------------|--------|----------------|---------|-----------------------------------------|--------|
|                                                      |   | Number ofShares |    | WeightedAverageExercisePrice per Share |   | WeightedAverageRemainingContractualAmount |   | IntrinsicValue |    | WeightedAverageRemainingContractualTerm |   |
| Outstanding at September 30, 2008                    |   |                 | -       |                                             | $      | -                                         |   | $              | -       |                                    | $      | - |   |   |   |   |
| Granted                                                   |   |                 | 500,000 |                                             | $      | 1.68                                      |   | $              | 840,000 |                                    |   | - |   |   | 2.52 |   |
| Exercised                                                 |   |                 |    |                                             |   |                                      |   |           |    |                                    |   |   |   |   |   |   |
| Forfeiture / Expiration                                   |   |                 |    |                                             |   |                                      |   |           |    |                                    |   |   |   |   |   |   |
|                                                      |   |                 |    |                                             |   |                                      |   |           |    |                                    |   |   |   |   |   |   |
| Outstanding at September 30, 2009                    |   |                 | 500,000 |                                             | $      | 1.68                                      |   | $              | 840,000 |                                    | $      | - |   |   | 1.52 |   |
| Granted                                                   |   |                 |    |                                             |   |                                      |   |           |    |                                    |   |   |   |   |   |   |
| Exercised                                                 |   |                 |    |                                             |   |                                      |   |           |    |                                    |   |   |   |   |   |   |
| Forfeiture / Expiration                                   |   |                 | 500,000 |                                             | $      | 1.68                                      |   | $              | 840,000 |                                    | $      | - |   |   |   |   |
|                                                      |   |                 |    |                                             |   |                                      |   |           |    |                                    |   |   |   |   |   |   |
| Outstanding at September 30, 2010                    |   |                 | -       |                                             | $      | -                                         |   | $              | -       |                                    | $      | - |   |   |   |   |
|                                                      |   |                 |    |                                             |   |                                      |   |           |    |                                    |   |   |   |   |   |   |
| Options Vested and Exercisable at September 30, 2010 |   |                 | -       |                                             | $      | -                                         |   | $              | -       |                                    | $      | - |   |   |   |   |

----

----

|                                                                                                   |   |                           |       |        |   |                           |   |
|--------------------------------------------------------------------------------------------------------|--------|--------------------------------|------------|-------------|--------|--------------------------------|--------|
|                                                                                                   |   | September 30,2010ORIGINAL |       | ADJUSTMENTS |   | September 30,2010RESTATED |   |
| Assets                                                                                                 |   |                           |       |        |   |                           |   |   |   |   |
| Current Assets:                                                                                        |   |                           |       |        |   |                           |   |   |   |   |
| Cash and cash equivalents                                                                              |   | $                              | 28,939     |        | $      | -                              |   | $ | 28,939 |   |
| Accounts receivable, net                                                                               |   |                           | 1,963,548  |        |   | -                              |   |   | 1,963,548 |   |
| Inventories                                                                                            |   |                           | 3,208,749  |        |   | -                              |   |   | 3,208,749 |   |
| Income taxes receivable                                                                                |   |                           | 640,733    |        |   | -                              |   |   | 640,733 |   |
| Deferred income taxes                                                                                  |   |                           | 299,000    |        |   | 67,000                         |   |   | 366,000 |   |
| Prepaid expenses and other                                                                             |   |                           | 320,475    |        |   | -                              |   |   | 320,475 |   |
| Total current assets                                                                                   |   |                           | 6,461,444  |        |   | 67,000                         |   |   | 6,528,444 |   |
|                                                                                                   |   |                           |       |        |   |                           |   |   |   |   |
| Property, plant, and equipment, net                                                                    |   |                           | 10,028,623 |        |   | -                              |   |   | 10,028,623 |   |
| Intangible assets, net                                                                                 |   |                           | 161,957    |        |   | -                              |   |   | 161,957 |   |
| Other assets                                                                                           |   |                           | 7,413      |        |   | -                              |   |   | 7,413 |   |
| Total assets                                                                                           |   | $                              | 16,659,437 |        | $      | 67,000                         |   | $ | 16,726,437 |   |
|                                                                                                   |   |                           |       |        |   |                           |   |   |   |   |
| Liabilities and Stockholders' Equity                                                                   |   |                           |       |        |   |                           |   |   |   |   |
| Current Liabilities:                                                                                   |   |                           |       |        |   |                           |   |   |   |   |
| Disbursements in excess of bank balances                                                               |   | $                              | 387,141    |        | $      | -                              |   | $ | 387,141 |   |
| Accounts payable                                                                                       |   |                           | 695,241    |        |   | -                              |   |   | 695,241 |   |
| Accrued expenses                                                                                       |   |                           | 965,631    |        |   | 89,952                         |   |   | 1,055,583 |   |
| Bank line of credit                                                                                    |   |                           | 2,700,000  |        |   | -                              |   |   | 2,700,000 |   |
| Current portion of notes payable                                                                       |   |                           | 699,681    |        |   | -                              |   |   | 699,681 |   |
| Current portion of deferred gain                                                                       |   |                           | 27,754     |        |   | -                              |   |   | 27,754 |   |
| Total current liabilities                                                                              |   |                           | 5,475,448  |        |   | 89,952                         |   |   | 5,565,400 |   |
| Long-Term Liabilities:                                                                                 |   |                           |       |        |   |                           |   |   |   |   |
| Notes payable, less current portion                                                                    |   |                           | 2,478,279  |        |   | -                              |   |   | 2,478,279 |   |
| Deferred income taxes                                                                                  |   |                           | 1,587,000  |        |   | -                              |   |   | 1,587,000 |   |
| Total long term liabilities                                                                            |   |                           | 4,065,279  |        |   | -                              |   |   | 4,065,279 |   |
|                                                                                                   |   |                           |       |        |   |                           |   |   |   |   |
| Total liabilities                                                                                      |   |                           | 9,540,727  |        |   | 89,952                         |   |   | 9,630,679 |   |
| Stockholders' Equity:                                                                                  |   |                           |       |        |   |                           |   |   |   |   |
| Common stock, $.0001 par value; 100,000,000 shares authorized; 8,046,471 shares issued and outstanding |   |                           | 593        |        |   | 212                            |   |   | 805 |   |
| Additional paid-in capital                                                                             |   |                           | 12,197,101 |        |   | 298,816                        |   |   | 12,495,917 |   |
| Accumulated deficit                                                                                    |   |                           | (5,078,984 | )           |   | (321,980                       | )      |   | (5,400,964 | ) |
| Total stockholders' equity                                                                             |   |                           | 7,118,710  |        |   | (22,952                        | )      |   | 7,095,758 |   |
|                                                                                                   |   |                           |       |        |   |                           |   |   |   |   |
| Total liabilities and stockholders' equity                                                             |   | $                              | 16,659,437 |        | $      | 67,000                         |   | $ | 16,726,437 |   |

----

|                                                 |   |         |       |        |   |         |   |
|------------------------------------------------------|--------|--------------|------------|-------------|--------|--------------|--------|
|                                                 |   | 2010ORIGINAL |       | ADJUSTMENTS |   | 2010RESTATED |   |
| Revenues:                                            |   |         |       |        |   |         |   |   |   |   |
| Net sales                                            |   | $            | 12,030,161 |        | $      | (168,171     | )      | $ | 11,861,990 |   |
| Freight income                                       |   |         | 82,472     |        |   | -            |   |   | 82,472 |   |
|                                                 |   |         |       |        |   |         |   |   |   |   |
| Total revenues                                       |   |         | 12,112,633 |        |   | (168,171     | )      |   | 11,944,462 |   |
|                                                 |   |         |       |        |   |         |   |   |   |   |
| Cost of goods sold                                   |   |         | 9,946,559  |        |   | -            |   |   | 9,946,559 |   |
|                                                 |   |         |       |        |   |         |   |   |   |   |
| Gross profit                                         |   |         | 2,166,074  |        |   | (168,171     | )      |   | 1,997,903 |   |
|                                                 |   |         |       |        |   |         |   |   |   |   |
| Selling, general, and administrative expenses        |   |         | 4,633,409  |        |   | 220,809      |   |   | 4,854,218 |   |
| Fraud expense                                        |   |         | 134,775    |        |   | -            |   |   | 134,775 |   |
|                                                 |   |         |       |        |   |         |   |   |   |   |
| Total operating expenses                             |   |         | 4,768,184  |        |   | 220,809      |   |   | 4,988,993 |   |
|                                                 |   |         |       |        |   |         |   |   |   |   |
| Loss from operations                                 |   |         | (2,602,110 | )           |   | (388,980     | )      |   | (2,991,090 | ) |
|                                                 |   |         |       |        |   |         |   |   |   |   |
| Other income (expense):                              |   |         |       |        |   |         |   |   |   |   |
| Interest expense                                     |   |         | (318,742   | )           |   | -            |   |   | (318,742 | ) |
| Interest income                                      |   |         | 8,302      |        |   | -            |   |   | 8,302 |   |
| Miscellaneous                                        |   |         | 167,627    |        |   | -            |   |   | 167,627 |   |
|                                                 |   |         |       |        |   |         |   |   |   |   |
| Total other expense, net                             |   |         | (142,813   | )           |   | -            |   |   | (142,813 | ) |
|                                                 |   |         |       |        |   |         |   |   |   |   |
| Loss before income tax benefit                       |   |         | (2,744,923 | )           |   | (388,980     | )      |   | (3,133,903 | ) |
|                                                 |   |         |       |        |   |         |   |   |   |   |
| Income tax benefit                                   |   |         | 1,043,000  |        |   | 67,000       |   |   | 1,110,000 |   |
|                                                 |   |         |       |        |   |         |   |   |   |   |
| Net loss                                             |   | $            | (1,701,923 | )           | $      | (321,980     | )      | $ | (2,023,903 | ) |
|                                                 |   |         |       |        |   |         |   |   |   |   |
| Weighted average shares of common stock outstanding: |   |         |       |        |   |         |   |   |   |   |
|                                                 |   |         |       |        |   |         |   |   |   |   |
| Basic                                                |   |         | 5,954,980  |        |   | 113,267      |   |   | 6,068,247 |   |
|                                                 |   |         |       |        |   |         |   |   |   |   |
| Diluted                                              |   |         | 5,954,980  |        |   | 113,267      |   |   | 6,068,247 |   |
|                                                 |   |         |       |        |   |         |   |   |   |   |
| Loss per common share:                               |   |         |       |        |   |         |   |   |   |   |
| Basic                                                |   | $            | (0.29      | )           | $      | (0.04        | )      | $ | (0.33 | ) |
|                                                 |   |         |       |        |   |         |   |   |   |   |
| Diluted                                              |   | $            | (0.29      | )           | $      | (0.04        | )      | $ | (0.33 | ) |

----

|                                                            |   |        |     |                                 |   |               |   |          |       |                   |   |
|-----------------------------------------------------------------|--------|-------------|----------|--------------------------------------|--------|--------------------|--------|---------------|------------|------------------------|--------|
|                                                            |   | CommonStock |     | Additional Paid-In Capital |   | AccumulatedDeficit |   | TreasuryStock |       | TotalStockholderEquity |   |
| Balances at September 30, 2010 as previously filed         |   |        | 593      |                                 |   | 12,197,101         |   |          | (5,078,984 | )                      |   | - |   |   | 7,118,710 |   |
| Net Loss Restatement Adjustment                                 |   |        | (321,980 | )                                    |   | (321,980           | )      |          |       |                   |   |   |   |   |   |   |
| Issuance of Unrestricted Common Stock                           |   |        |     |                                 |   |               |   |          |       |                   |   |   |   |   |   |   |
| Adjust value of 5,373 shares issued to directors (Restated)     |   |        | -        |                                 |   | 500                |   |          | -          |                   |   | - |   |   | 500 |   |
|                                                            |   |        |     |                                 |   |               |   |          |       |                   |   |   |   |   |   |   |
| Adjust Stock-Based Compensation (Restated)                      |   |        | -        |                                 |   | 298,528            |   |          | -          |                   |   | - |   |   | 298,528 |   |
|                                                            |   |        |     |                                 |   |               |   |          |       |                   |   |   |   |   |   |   |
| Issuance of Restricted Common Stock                             |   |        |     |                                 |   |               |   |          |       |                   |   |   |   |   |   |   |
| Issue 2,011,618 restricted common shares to officers (Restated) |   |        | 202      |                                 |   | (202               | )      |          | -          |                   |   | - |   |   | - |   |
| Issue 100,000 restricted common shares to directors (Restated)  |   |        | 10       |                                 |   | (10                | )      |          | -          |                   |   | - |   |   | - |   |
|                                                            |   |        |     |                                 |   |               |   |          |       |                   |   |   |   |   |   |   |
| Balances at September 30, 2010 Restated                    |   | $           | 805      |                                 | $      | 12,495,917         |   | $             | (5,400,964 | )                      | $      | - |   | $ | 7,095,758 |   |

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|                                                                        |   |         |       |        |   |         |   |
|-----------------------------------------------------------------------------|--------|--------------|------------|-------------|--------|--------------|--------|
|                                                                        |   | 2010ORIGINAL |       | ADJUSTMENTS |   | 2010RESTATED |   |
| Cash Flows from Operating Activities:                                       |   |         |       |        |   |         |   |   |   |   |
| Net loss                                                                    |   | $            | (1,701,923 | )           | $      | (321,980     | )      | $ | (2,023,903 | ) |
|                                                                        |   |         |       |        |   |         |   |   |   |   |
| Adjustments to reconcile net loss to net cash used by operating activities: |   |         |       |        |   |         |   |   |   |   |
| Depreciation                                                                |   |         | 774,140    |        |   | -            |   |   | 774,140 |   |
| Amortization                                                                |   |         | 6,155      |        |   | -            |   |   | 6,155 |   |
| Stock-based compensation                                                    |   |         | 49,250     |        |   | 299,028      |   |   | 348,278 |   |
| Loss on sale of property, plant and equipment                               |   |         | 94,555     |        |   | -            |   |   | 94,555 |   |
| Deferred income taxes                                                       |   |         | (406,000   | )           |   | (67,000      | )      |   | (473,000 | ) |
| Fraud recovery                                                              |   |         | (120,000   | )           |   | -            |   |   | (120,000 | ) |
| Change in:                                                                  |   |         |       |        |   |         |   |   |   |   |
| Accounts receivable, net                                                    |   |         | (143,996   | )           |   | -            |   |   | (143,996 | ) |
| Inventories                                                                 |   |         | 380,131    |        |   | -            |   |   | 380,131 |   |
| Income tax receivable                                                       |   |         | 356,680    |        |   | -            |   |   | 356,680 |   |
| Prepaid expenses and other, net                                             |   |         | (243,078   | )           |   | -            |   |   | (243,078 | ) |
| Other assets                                                                |   |         | 32,975     |        |   | -            |   |   | 32,975 |   |
| Accounts payable, net                                                       |   |         | 132,552    |        |   | -            |   |   | 132,552 |   |
| Accrued expenses                                                            |   |         | 218,587    |        |   | 89,952       |   |   | 308,539 |   |
|                                                                        |   |         |       |        |   |         |   |   |   |   |
| Net cash used for operating activities                                      |   |         | (569,972   | )           |   | -            |   |   | (569,972 | ) |
|                                                                        |   |         |       |        |   |         |   |   |   |   |
| Cash Flows from Investing Activities:                                       |   |         |       |        |   |         |   |   |   |   |
| Purchase of property, plant and equipment                                   |   |         | (274,410   | )           |   | -            |   |   | (274,410 | ) |
| Purchase of intangible assets, net                                          |   |         | 10,435     |        |   | -            |   |   | 10,435 |   |
| Proceeds from sale of property, plant and equipment                         |   |         | 13,875     |        |   | -            |   |   | 13,875 |   |
|                                                                        |   |         |       |        |   |         |   |   |   |   |
| Net cash used for investing activities                                      |   |         | (250,100   | )           |   | -            |   |   | (250,100 | ) |
|                                                                        |   |         |       |        |   |         |   |   |   |   |
| Cash Flows from Financing Activities:                                       |   |         |       |        |   |         |   |   |   |   |
| Disbursements in excess of bank balances                                    |   |         | (51,495    | )           |   | -            |   |   | (51,495 | ) |
| Payments on notes payable                                                   |   |         | (856,984   | )           |   | -            |   |   | (856,984 | ) |
| Advance on development loan                                                 |   |         | 60,000     |        |   | -            |   |   | 60,000 |   |
| Bank line of credit, net                                                    |   |         | 1,670,000  |        |   | -            |   |   | 1,670,000 |   |
|                                                                        |   |         |       |        |   |         |   |   |   |   |
| Net cash provided by financing activities                                   |   |         | 821,521    |        |   | -            |   |   | 821,521 |   |
|                                                                        |   |         |       |        |   |         |   |   |   |   |
| Net increase in cash and cash equivalents                                   |   |         | 1,449      |        |   | -            |   |   | 1,449 |   |
|                                                                        |   |         |       |        |   |         |   |   |   |   |
| Cash and cash equivalents, beginning of year                                |   |         | 27,490     |        |   | -            |   |   | 27,490 |   |
|                                                                        |   |         |       |        |   |         |   |   |   |   |
| Cash and cash equivalents, end of year                                      |   | $            | 28,939     |        | $      | -            |   | $ | 28,939 |   |

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|                                                      |   |         |     |        |   |         |   |
|-----------------------------------------------------------|--------|--------------|----------|-------------|--------|--------------|--------|
|                                                      |   | 2010ORIGINAL |     | ADJUSTMENTS |   | 2010RESTATED |   |
| Supplemental disclosures of cash flow information:        |   |         |     |        |   |         |   |   |   |   |
|                                                      |   |         |     |        |   |         |   |   |   |   |
| Cash paid during the period for:                          |   |         |     |        |   |         |   |   |   |   |
|                                                      |   |         |     |        |   |         |   |   |   |   |
| Interest                                                  |   | $            | 315,704  |        |   | -            |   | $ | 315,704 |   |
|                                                      |   |         |     |        |   |         |   |   |   |   |
| Income tax refunds, net                                   |   | $            | (993,680 | )           |   | -            |   | $ | (993,680 | ) |
|                                                      |   |         |     |        |   |         |   |   |   |   |
| Supplemental schedule of non-cash investing and financing |   |         |     |        |   |         |   |   |   |   |
|                                                      |   |         |     |        |   |         |   |   |   |   |
| Recovery of treasury shares from fraud                    |   | $            | 120,000  |        |   | -            |   | $ | 120,000 |   |

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