Confederate Motors (PINK:CFED)

At March 31, 2014, the Company maintained a backlog of orders represented by deferred revenue totaling $827,638. This account is a revolving account with funding added as new orders are placed and relieved to revenue as motorcycles are shipped.  As of May 15, 2014, the Company has the needed inventory to begin relieving these funds as revenue.

We have a significant backlog of orders.  As of the date of this report we had 35 orders which represented four months of production and approximately $1.7 million in gross revenue.  Assuming our average gross profit margin of 30%, we would earn $510,000 in gross profit. Management projects an additional 50 to 100 orders with the unveiling of the C4 Hellcat and the Limited Edition Pierre Tereblanche P-51 Fighter at the 2014 year end. The required inventory has been ordered and backlog production is scheduled to begin on or before July, 2014

Additionally, management is planning diligently in an effort to begin producing two bikes per week beginning in July 2014. We expect to produce up to 65 motorcycles this year which would represent approximately $1.5 million in gross profit. All inventory items needed have been ordered and are expected in house by mid-June 2014.