Lifeway Foods, Inc - 3,669,990 2,883,455...

Lifeway Foods, Inc - Recent Material Event

Item 1. FINANCIAL STATEMENTS

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

ITEM 3. CONTROLS AND PROCEDURES

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

ITEM 6. EXHIBITS

SIGNATURE

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LIFEWAY FOODS, INC. AND SUBSIDIARIES

Consolidated Statements of Financial Condition

March 31, 2008 and 2007 (Unaudited) and December 31, 2007




	(Unaudited)
	March 31,						December 31,

ASSETS

Current assets
Cash and cash equivalents	$	392,790		$	1,013,345		$	595,885
Marketable securities		6,790,850			8,560,756			6,989,474
Inventories		3,669,990			2,883,455			3,506,554
Accounts receivable, net of allowance for doubtful accounts
of $39,460 and $39,460 at March 31, 2008 and 2007 and
$39,460 at December 31, 2007		4,926,058			4,587,966			4,209,662
Prepaid expenses and other current assets		9,087			9,992			21,253
Other receivables		134,298			50,425			43,111
Deferred income taxes		467,695			-			311,960
Refundable income taxes		—			158,553			240,880
Total current assets		16,390,768			17,264,492			15,918,779

Property and equipment, net		9,854,945			8,554,799			9,678,948

Intangible assets
Goodwill		5,414,858			3,952,425			5,414,858
Other intangible assets, net of accumulated amortization
of $681,837 and $358,985 at March 31, 2008 and 2007 and
$601,976 at December 31, 2007		3,175,801			3,498,653			3,255,662
Total intangible assets		8,590,659			7,451,078			8,670,520

Other assets		500,000			—			500,000

Total assets	$	35,336,372		$	33,270,369		$	34,268,247


LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities
Current maturities of notes payable	$	1,131,725			1,129,004		$	1,136,126
Accounts payable		1,966,926			1,239,046			1,594,330
Accrued expenses		392,384			341,189			414,039
Accrued income taxes		203,529			---			---
Total current liabilities		3,694,564			2,709,239			3,144,495

Notes payable		3,813,825			5,201,873			4,096,797

Deferred income taxes		1,679,859			485,244			1,712,795

Stockholders’ equity
Common stock, no par value; 20,000,000 shares authorized;17,273,776 shares issued; 16,792,826 shares outstanding at March 31, 2008; 17,273,776 shares issued; 16,889,237 shares outstanding at March 31, 2007; and 17,273,776 shares issues; 16,897,726 shares outstanding at December 31, 2007		6,509,267			6,509,267			6,509,267
Paid-in-capital		1,137,709			1,080,911			1,120,669
Treasury stock, at cost		(2,437,517	)		(1,411,195	)