Annual report pursuant to Section 13 and 15(d)

Impact of Superstorm Sandy

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Impact of Superstorm Sandy
12 Months Ended
Nov. 30, 2012
Impact of Superstorm Sandy

NOTE 5 — IMPACT OF SUPERSTORM SANDY

On October 30, 2012, Superstorm Sandy caused widespread flooding on the New Jersey coast, resulting in substantial water damage to the Company’s offices and warehouse. The Company has a flood insurance policy with a loss limit of $1,000,000. The Company received $200,000 of the insurance proceeds in November 2012 and anticipated receiving the balance of $800,000 as of November 30, 2012, and accordingly recorded an insurance receivable in the amount of $800,000 as of the same date. The Company incurred a total net loss of $128,554 as a result of Superstorm Sandy that is recorded in the results for the year ended November 30, 2012. The following chart shows the components of the loss:

 

Superstorm Sandy Losses

For the year ended November 30, 2012

 

Inventory at Cost

   $ 437,088   

Loss on Disposal of Assets Destroyed

     79,893   

Cleanup & Water Removal Costs

     327,641   

Leased Office Equipment Destroyed

     145,662   

Other Expenses

     138,271   
  

 

 

 

Total Expenses

     1,128,554   

Less: Insurance Proceeds

     1,000,000   
  

 

 

 

Net Loss

   $ 128,554