Company: Spectra Inc. Symbol: SSA.V Price: $0.01 Common Shares: 60,514,837 Insider Holdings: 11,542,143(19% as per SEDI) Main Website: http://www.spectrainc.ca/ Product Website: http://www.spectraproducts.ca/ Company Description Spectra Inc., (the “Company”), through its wholly owned subsidiary, Spectra Products Inc., supplies products to the transportation industry. The current product line includes a visual brake stroke indicator, Brake Safe®, that permits vehicle drivers and maintenance personnel to visually determine the brake adjustment condition of a truck, trailer or bus equipped with an air activated brake system. The Company’s electronic version of Brake Safe® is an air brake diagnostic system called Brake Inspector® . This product provides an in-cab display of air brake status and permits diagnosis of various existing and potential brake problems with the foundation brakes of trucks, trailers and buses. The Company also supplies an anticorrosion lubricant called Termin-8r® to the transportation industry and Zafety Lug Lock® a product that prevents wheel-end lug nuts from loosening leading to wheel damage or wheel loss. Spectra Inc. Financial Statements and MD&A Highlights(Ending June 30th 2015) The company has had six quarters of profitable revenue growth as shown below. This current quarter there was a significant rise in sales which should keep trending upward as Spectra gains more exposure across North America and overseas. Current Quarter Sales(Ending June 30th) Revenue: $529,252 Net Income: $91,421 Last Six Quarters (Breakdown) Q1 March 31, 2014 Revenue: $357,447 Net Income: $5,939 Q2 June 30, 2014 Revenue: $332,726 Net Income: $13,663 Q3 September 30, 2014 Revenue: $394,364 Net Income: $15,788 Q4 December 31, 2014 Revenue: 349,020 Net Income: $10,210 Q1 March 31,2015 Revenue: $352,031 Net Income: $18,049 Q2 June 30, 2015 Revenue: $529,252 Net Income: $91,421 ASSETS Cash: $74,256 Accounts Receivable: $233,079 Inventories: $99,932 Loan Receivable: $ 25,000 Prepaid Expenses: $14,055 Investment in Cotter Pin Solutions Inc: $49 Equipment: $27,809 Intangible Assets: $4,951 LIABILITIES Accounts Payable: $250,042 Loans Payable: $350,000 Royalty Debenture: $658,828 (Not due until 2019) Convertible Debenture: $937,500 (6% Dividend waived in 2014 and 2015) MD&A Highlights Results of Operations Revenue: Three months ended June 30, 2015 Revenue for the three months ended June 30, 2015 increased by 59 percent to $529,252 compared to revenue of $332,726 for the three-month period ended June 30, 2014. The quarterly increase in revenue is mostly attributable to increases in sales in of Brake Safe® of $97,002 from the same period in 2014 to $255,559, Termin-8r® of $11,370 from the same 2014 period to $108,804, sales of Zafety Lug Lock® which increased by $53,833 to $109,844, sales of Hub Alert® of $823 from the same period in 2014 to $7,318 and sales of Arrow Logger™ our new product of $2,212. These increases were offset by decreases in sales of Brake Inspector® which had sales of $6,096 in 2015, compared to sales in 2014 of $8,298. Net income Three months ended June 30, 2015 The net income for the three months ended June 30, 2015 was $91,421 or $0.00 per share basic and fully diluted compared to net income of $13,663 or $0.00 per share basic and fully diluted for the three months ended June 30, 2014. Six months ended June 30, 2015 The net income for the six months ended June 30, 2015 was $109,470 or $0.00 per share basic and fully diluted compared to net income of $19,602 or $0.00 per share basic and fully diluted for the six months ended June 30, 2014. Balance Sheet: Total Assets Total assets as at June 30, 2015 were $479,131 an increase of 40 percent from $342,678 as at December 31, 2014. OUTLOOK The Company continues to focus its efforts on expanding the present market for its products while introducing those products into new markets as well as seeking out new products to complement our other offerings. The Company’s Brake Safe® product is well established in the Canadian market and inroads are now being made into the lucrative American market. With the implementation of its new, aggressive, safety enforcement and monitoring program, CSA (Compliance, Safety, Accountability), the Federal Motor Carrier Safety Administration is bringing the focus onto unsafe Carriers and unsafe Drivers in the US transportation industry. A significant increase in roadside enforcement, citations and fines for all driver and vehicle violations will impact positively on the sales growth of Brake Safe® and Zafety Lug Lock® products. A program is being developed to educate companies of these enforcement changes and the resulting increased intervention by regulatory agencies in order to capitalize on sales opportunities for Brake Safe® and Zafety Lug Lock® . The Company introduced in the first quarter of 2015 a “buy direct from the manufacturer” program for U.S. fleets and owner operators to increase the awareness of Brake Safe® in the U.S. market. This program is being supported by sustained advertising in select U.S. media and the addition of e-commerce capability on the Company’s website. The Company has entered into a sponsorship arrangement with Kevin Rutherford a radio personality and author of several books for the professional truck driver. Sponsorship is providing widespread exposure to the independent owner/operator trucking segment. Exposure includes prominence on the Let’s Truck website and access to its 30,000 members, frequent blogs featuring the Company’s products as well as interviews with Mr. Rutherford over Sirius XM Satellite radio. The Company will continue to sell Brake Safe® through its existing U.S. distributors. The Company’s Termin-8R® product continues to receive strong industry acceptance with a corresponding growth in sales to the transportation segment. The second private label arrangement, introduced in 2010 and made for a major supplier to the commercial transport industry, is proving to be a strong performer with 2014 private label sales now being more than 10% ahead of the same period in 2014. The company believes that developing new private label arrangements will be a key to the ongoing growth in the sales of this product. Zafety Lug Lock® continues to make good inroads into the marketplace with new interest from overseas. The Company’s newly introduced product, Arrow Logger™, has been designed to complement the Brake Safe® product line with enhanced brake adjustment monitoring. The system allows drivers to inspect brake adjustment during roadside operation without the need to apply the service brake, usually a 2 person operation. The Company anticipates a very positive response to the Arrow Logger™ from existing and potential Brake Safe® customers. While initial sales have been slow, these are expected to grow as the market becomes more aware of the product. Initial interest in Hub Alert® and new marketing efforts have been introduced to try to stimulate sales. At the end of the second quarter, the Company made an investment in Cotter Pin Solutions Inc. This company has been established to manufacture and sell an innovative new product, the Anti-Seize Cotter Pin. This product solves a major maintenance issue plaguing the industry, the seizing of slack adjuster clevis pins and the resulting time consuming and costly process of their free-up or removal . Seized or binding clevis pins can affect brake performance. The Company has a 49% equity position in Cotter Pin Solutions with the product’s inventor, Jorge Goncalves, retaining 51% equity. The Company will continue to form strategic distribution alliances to accelerate its sales outside the Canadian marketplace. The Company may seek sufficient additional funds to provide working capital, inventory and capital equipment as needs arise, but at the moment, cash flow from operations is sufficient to support current needs. Until such time as present market conditions improve, the Company will continue the cost-saving measures introduced in 2009 to reduce overhead and improve cash flow.