Little Bit, Inc.

LITTLE BIT, INCSTATEMENT OF CASH FLOWSYEAR ENDING DECEMBER 31, 2009CASH FLOW FROM OPERATING ACTIVITIES |

NET INCOME | 5,500 |

ADJ. TO RECON. NET PROVIDED BY OP ACTIV. | |

DEPRECIATION AND AMORITIZATION | 18,000 |

DEFERRED INCOME TAX | 500 |

CASH PROVIDED BY (USED FOR) CURRENT A&L | |

ACCOUNTS RECEIVABLE | (6,500) |

INVENTORY | (8,500) |

PREPAID EXPENSES | (4,000) |

ACCOUNTS PAYABLE | 2,000 |

ACCRUED LIABILITIES | (16,000) |

NET CASH USED BY OPERATING ACTIVITIES | (9,000) |

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CASH FLOW FROM INVESTMENT ACTIVITIES | |

ADDITIONS TO PROPERTY, PLANT AND EQUIP. | (6,000) |

OTHER INVESTING ACTIVITIES | (1,000) |

NET CASH USED BY INVESTMENT ACTIVITIES | (7,000) |

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CASH FLOW FROM FINANCE ACTIVITIES | |

SALE OF COMMON STOCK | 15,000 |

ADDITIONS TO LONG TERM DEBT | 17,000 |

NET CASH PROVIDED BY FINANCIAL ACTIVITIES | 32,000 |

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INCREASE IN CASH AND MARKETABLE SECUR. | 16,000 |

CASH AND MARKETABLE SEC., BEGINNING OF YR | 24,000 |

CASH AND MARKETABLE SEC., END OF YR | 40,000 |

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SUPPLIMENTAL CASH FLOW INFORMATION | |

CASH PAID FOR INTEREST | 2,000 |

CASH PAID FOR TAXES | 800 |

LITTLE BIT, INCBALANCE SHEETYEARS ENDING DECEMBER 31, |

ASSETS | 2009 | 2008 |

Cash | 40,000 | 24,000 |

Accounts receivable (net) | 48,000 | 41,500 |

Inventory | 43,000 | 34,500 |

Prepaid expenses | 19,000 | 15,000 |

Total Current Assets | 150,000 | 115,000 |

Plant and equipment | 67,000 | 61,000 |

Less accumulated depreciation | (41,000) | (23,000) |

Plant and equipment (net) | 26,000 | 38,000 |

Long-term investments | 90,000 | 89,000 |

Total Assets | 266,000 | 242,000 |

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LIABILITIES | | |

Accounts payable | 13,000 | 11,000 |

Accrued liabilities | 55,000 | 71,000 |

Total Current Liabilities | 68,000 | 82,000 |

Long-term debt | 25,000 | 8,000 |

Deferred taxes | 4,000 | 3,500 |

Total Liabilities | 97,000 | 93,500 |

Common stock...