Note B – Liquidity

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the six months ending June 30, 2014, the Company incurred a net loss of $(178,396), and as of such date has a significant Stockholders’ Deficit. We are focusing our efforts on increasing our sales of products and reducing operating costs, where possible. Additionally, we seek to expand our business opportunity through strategic relationships and transactions such as acquisitions or mergers. On March 14, 2014, the Company entered into a non-binding Letter of Intent to acquire two operating companies engaged in the manufacture and sale of coated fabrics. While no assurance can be given that such acquisitions will be consummated, we believe our current funding ability as discussed under Long-Term Debt below will be sufficient to finance our operations through, at a minimum, June 30, 2015. Should we require additional funding over above such borrowing capability, we may need to reduce or refocus our operations or obtain funds through arrangements that would be less attractive to us or which may require us to relinquish rights to certain or potential markets or assets, either of which could have a material adverse effect on our business, financial condition and/or results of operations.