VALLEY FORGE COMPOSITE TECHNOLOGIES, INC.

CIK:0001332412|SEC Filings

NATURE OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Computation of Earnings Per Share) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
NATURE OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Net income (loss)	$ 95,288	$ (423,766)	$ (578,982)	$ (143,516)
Weighted average shares outstanding	62,416,048	61,320,774	62,393,113	61,320,774
Common stock and common stock equivalents	63,125,140
Income (loss) per share - basic	$ 0.0	$ (0.01)	$ (0.01)	$ 0.0
Income (loss) per share - diluted	$ 0.0

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2012	Sep. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (578,982)	$ (143,516)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization expense	56,194	59,044
Share-based payments	678,732	683,483
(Increase) decrease in operating assets:
(Increase) decrease in accounts receivable	810,538	(2,514,774)
Increase in insurance receivable	(62,684)
(Increase) decrease in inventories	3,129,542	(1,567,751)
(Increase) decrease in vendor deposits	(193,200)	21,000
Decrease in prepaid expenses and other	48,371	15,802
Increase (decrease) in operating liabilities:
Increase (decrease) in accounts payable	(1,273,644)	3,881,286
Increase (decrease) in accrued expenses and other	(360,164)	269,114
Decrease in deferred revenue	(143,400)	(862,414)
Net Cash Provided By (Used In) Operating Activities	2,111,303	(158,726)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of marketable securities	(16,608)	(15,412)
Patent license	(12,547)	(40,000)
Purchases of equipment		(45,483)
Increase in note receivable	(300,000)
Net Cash Used In Investing Activities	(329,155)	(100,895)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments for equity offering costs	(85,803)
Repayments to shareholder		(124,846)
Net cash Used In Financing Activities	(85,803)	(124,846)
NET INCREASE (DECREASE) IN CASH	1,696,345	(384,467)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	372,435	585,549
CASH AND CASH EQUIVALENTS AT END OF PERIOD	2,068,780	201,082
Cash paid during the period for:
Income taxes
Interest		3,102
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES
Deferred equity offering costs in payables	$ 79,498

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2012	Dec. 31, 2011
Current assets:
Cash	$ 2,068,780	$ 372,435
Marketable securities	546,803	518,576
Accounts receivable	2,782,283	3,592,821
Note receivable	300,000
Insurance receivable	62,684
Inventories	1,379,144	4,508,686
Vendor order deposits	193,200
Prepaid expenses and other	17,812	66,183
Total current assets	7,350,706	9,058,701
Property and equipment, net	57,426	112,062
Non-current assets:
Patent license, net	50,418	39,430
Deferred equity offering costs, net	737,760	658,262
Security deposits	5,535	5,535
Total non-current assets	793,713	703,227
Total Assets	8,201,845	9,873,990
Current liabilities:
Accounts payable	4,654,239	5,934,187
Accrued expenses and other	49,200	409,364
Deferred revenue	147,651	291,051
Total current liabilities	4,851,090	6,634,602
Shareholders' Equity:
Common stock, $.001 par value, 100,000,000 shares authorized; 62,416,048 and 62,066,928 shares issued and outstanding at September 30, 2012 and December 31, 2011	62,416	62,067
Additional paid-in capital	13,222,980	12,544,597
Accumulated deficit	(9,935,097)	(9,356,115)
Accumulated other comprehensive income (loss)	456	(11,161)
Total shareholders' equity	3,350,755	3,239,388
Total Liabilities and Shareholders' Equity	$ 8,201,845	$ 9,873,990