Exhibit 99.2
Condensed Consolidated Interim Financial Statements
Precision Acquisition MidCo, Inc. and Subsidiaries
As of December 31, 2020 and 2019 and for the three months ended December 31, 2020 and 2019
Precision Acquisition MidCo, Inc. and Subsidiaries
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS
December 31,
2020 | 2019 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 11,681,940 | $ | 7,379,599 | ||||
Accounts receivable, less allowance for doubtful accounts of approximately $154,000 and $179,000, respectively | 13,336,382 | 9,636,205 | ||||||
Inventories, net | 11,149,482 | 9,064,185 | ||||||
Prepaid and other | 1,819,099 | 2,052,013 | ||||||
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Total current assets | 37,986,903 | 28,132,002 | ||||||
Long-term assets | ||||||||
Property, plant and equipment | ||||||||
Building | 14,293,860 | 13,273,456 | ||||||
Machinery and equipment | 7,185,743 | 6,614,063 | ||||||
Office equipment, including IT software | 4,671,391 | 4,474,395 | ||||||
Leasehold improvements | 1,376,335 | 1,181,371 | ||||||
Transportation equipment | 176,248 | 179,481 | ||||||
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27,703,577 | 25,722,766 | |||||||
Less - accumulated depreciation and amortization | 9,990,059 | 6,838,972 | ||||||
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17,713,518 | 18,883,794 | |||||||
Land | 299,667 | 299,667 | ||||||
Construction in progress | 423,208 | 323,108 | ||||||
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Total property, plant and equipment | 18,436,393 | 19,506,569 | ||||||
Goodwill | 87,836,323 | 87,836,323 | ||||||
Other intangible assets, net | 120,040,400 | 128,073,734 | ||||||
Deposits | 373,101 | 373,101 | ||||||
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Total long-term assets | 226,686,217 | 235,789,727 | ||||||
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Total assets | $ | 264,673,120 | $ | 263,921,729 | ||||
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The accompanying notes are an integral part of these condensed consolidated interim financial statements.
2
Precision Acquisition MidCo, Inc. and Subsidiaries
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS - CONTINUED
December 31,
2020 | 2019 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Current portion of capital lease obligation | $ | 450,479 | $ | 194,049 | ||||
Line of credit | 901,669 | 947,292 | ||||||
Accounts payable | 5,451,689 | 4,194,451 | ||||||
Customer deposits | 3,078,748 | 1,910,938 | ||||||
Accrued compensation and benefits | 3,230,530 | 2,085,513 | ||||||
Other accrued liabilities | 3,308,766 | 671,866 | ||||||
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Total current liabilities | 16,421,881 | 10,004,109 | ||||||
Long-term liabilities | ||||||||
Deferred tax liabilities, net | 28,323,514 | 29,684,244 | ||||||
Term loan, less current portion, net of deferred financing costs | 60,964,700 | 70,492,351 | ||||||
Capital lease obligation, less current portion | 12,118,990 | 12,163,548 | ||||||
Derivative instrument | - | 53,271 | ||||||
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Total long-term liabilities | 101,407,204 | 112,393,414 | ||||||
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Total liabilities | 117,829,085 | 122,397,523 | ||||||
Stockholders’ equity | ||||||||
Common stock, $.01 par value, 100,000 shares authorized 100 shares issued and outstanding | 1 | 1 | ||||||
Retained earnings | 5,126,794 | 529,207 | ||||||
Additional paid-in capital | 141,748,153 | 141,528,849 | ||||||
Accumulated other comprehensive loss | (30,913 | ) | (533,851 | ) | ||||
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Total stockholders’ equity | 146,844,035 | 141,524,206 | ||||||
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Total liabilities and stockholders’ equity | $ | 264,673,120 | $ | 263,921,729 | ||||
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The accompanying notes are an integral part of these condensed consolidated interim financial statements.
3
Precision Acquisition MidCo, Inc. and Subsidiaries
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS
Three months ended December 31,
2020 | 2019 | |||||||
Net sales | $ | 27,671,498 | $ | 19,385,617 | ||||
Cost of sales | 13,543,515 | 9,885,841 | ||||||
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Gross profit | 14,127,983 | 9,499,776 | ||||||
Selling and marketing, engineering and administrative expenses, including amortization of intangibles of approximately $2,008,000 and $2,008,000, respectively | 9,157,582 | 9,021,540 | ||||||
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Income from operations | 4,970,401 | 478,236 | ||||||
Other expenses | ||||||||
Interest expense, net | 1,370,709 | 1,602,980 | ||||||
Other expense, net | 245,683 | 79,891 | ||||||
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1,616,392 | 1,682,871 | |||||||
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Income (loss) before income taxes | 3,354,009 | (1,204,635 | ) | |||||
Income tax expense (benefit) | ||||||||
Current | 1,668,873 | (73,450 | ) | |||||
Deferred | (734,627 | ) | 46,609 | |||||
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934,246 | (26,841 | ) | ||||||
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Net income (loss) | $ | 2,419,763 | $ | (1,177,794 | ) | |||
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The accompanying notes are an integral part of these condensed consolidated interim financial statements.
4
Precision Acquisition MidCo, Inc. and Subsidiaries
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Three months ended December 31,
2020 | 2019 | |||||||
Net Income (loss) | $ | 2,419,763 | $ | (1,177,794 | ) | |||
Other comprehensive income | ||||||||
Foreign currency translation adjustments | 227,478 | 69,251 | ||||||
Change in value of derivative instrument | - | 1,976 | ||||||
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Comprehensive income (loss) | $ | 2,647,241 | $ | (1,106,567 | ) | |||
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The accompanying notes are an integral part of these condensed consolidated interim financial statements.
5
Precision Acquisition MidCo, Inc. and Subsidiaries
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
Three months ended December 31, 2019 and 2020
Accumulated | ||||||||||||||||||||||||||||
Common Stock | Other | |||||||||||||||||||||||||||
Shares | Retained | Additional | Comprehensive | |||||||||||||||||||||||||
Authorized | Outstanding | Amount | Earnings | Paid-in Capital | Income (Loss) | Total | ||||||||||||||||||||||
Balance at September 30, 2019 | 1,000 | 100 | $ | 1 | $ | 1,707,001 | $ | 141,447,756 | $ | (605,078 | ) | $ | 142,549,680 | |||||||||||||||
Stock-based compensation | - | - | - | - | 81,093 | - | 81,093 | |||||||||||||||||||||
Foreign currency translation adjustments | - | - | - | - | - | 69,251 | 69,251 | |||||||||||||||||||||
Change in value of derivative instrument | - | - | - | - | - | 1,976 | 1,976 | |||||||||||||||||||||
Net loss | - | - | - | (1,177,794 | ) | - | - | (1,177,794 | ) | |||||||||||||||||||
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Balance at December 31, 2019 | 1,000 | 100 | $ | 1 | $ | 529,207 | $ | 141,528,849 | $ | (533,851 | ) | $ | 141,524,206 | |||||||||||||||
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Balance at September 30, 2020 | 1,000 | 100 | $ | 1 | $ | 2,707,031 | $ | 141,664,153 | $ | (258,391 | ) | $ | 144,112,794 | |||||||||||||||
Stock-based compensation | - | - | - | - | 84,000 | - | 84,000 | |||||||||||||||||||||
Foreign currency translation adjustments | - | - | - | - | - | 227,478 | 227,478 | |||||||||||||||||||||
Net income | - | - | - | 2,419,763 | - | - | 2,419,763 | |||||||||||||||||||||
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Balance at December 31, 2020 | 1,000 | 100 | $ | 1 | $ | 5,126,794 | $ | 141,748,153 | $ | (30,913 | ) | $ | 146,844,035 | |||||||||||||||
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The accompanying notes are an integral part of these condensed consolidated interim financial statements.
6
Precision Acquisition MidCo, Inc. and Subsidiaries
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
Three months ended December 31,
2020 | 2019 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 2,419,763 | $ | (1,177,794 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation | 828,425 | 699,841 | ||||||
Amortization | 2,008,333 | 2,008,333 | ||||||
Amortization of deferred financing costs, included in interest expense | 102,500 | 102,500 | ||||||
(Gain) loss on disposition of property, plant and equipment | (470 | ) | 1,500 | |||||
Stock-based compensation | 84,000 | 81,093 | ||||||
Deferred income tax expense | (324,391 | ) | (286,530 | ) | ||||
Change in the allowance for doubtful accounts | 67,864 | 8,451 | ||||||
Change in the inventory valuation reserve | 10,488 | 7,097 | ||||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable | 1,082,531 | 1,436,245 | ||||||
Inventories | (1,604,781 | ) | (1,421,762 | ) | ||||
Other assets | 186,919 | 494,548 | ||||||
Accounts payable | 206,262 | 253,029 | ||||||
Customer deposits | 676,254 | 162,425 | ||||||
Accrued compensation and benefits | (1,304,573 | ) | (629,849 | ) | ||||
Other accrued liabilities | 884,233 | (203,631 | ) | |||||
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Net cash provided by operating activities | 5,323,357 | 1,535,496 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property, plant and equipment | (330,976 | ) | (462,589 | ) | ||||
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Net cash used in investing activities | (330,976 | ) | (462,589 | ) |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
7
Precision Acquisition MidCo, Inc. and Subsidiaries
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS - CONTINUED
Three months ended December 31,
2020 | 2019 | |||||||
Cash flows from financing activities: | ||||||||
Payments on long-term debt | $ | (4,945,111 | ) | $ | - | |||
Payments on capital lease | (243,241 | ) | (45,260 | ) | ||||
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Net cash used in financing activities | (5,188,352 | ) | (45,260 | ) | ||||
Effect of exchange rate on cash and cash equivalents | (10,643 | ) | (51,739 | ) | ||||
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Net increase in cash and cash equivalents | (206,614 | ) | 975,908 | |||||
Cash and cash equivalents at beginning of period | 11,888,554 | 6,403,691 | ||||||
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Cash and cash equivalents at end of period | $ | 11,681,940 | $ | 7,379,599 | ||||
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Supplemental disclosure of cash flow information | ||||||||
Cash paid during the period for interest | $ | 1,137,188 | $ | 1,378,439 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
8
Precision Acquision MidCo, Inc. and Subsidiaries
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
December 31, 2020 and 2019
NOTE A - ORGANIZATION
Precision Acquisition MidCo, Inc., a Delaware corporation, was formed on March 6, 2017 for the purpose of acquiring a 100% equity ownership in Dorner Holding Corp.
Dorner Holding Corp., a Delaware corporation, has a 100% equity ownership in Dorner Mfg. Corp.
Dorner Mfg. Corp. designs and manufactures conveyor products and systems and sells them through domestic and international sales channels.
Dorner Holding Corp. has a 100% equity ownership in Dorner Conveyors Ltd., a Canadian subsidiary, which sells conveyor products and systems that are manufactured by Dorner Mfg. Corp.
Dorner Mfg. Corp. has a 100% equity ownership in Dorner (M) Sdn. Bhd. (Dorner Asia). Dorner Asia is a Malaysia-based company that is engaged in the design and manufacture of flexible conveyor systems and parts.
Dorner Mfg. Corp. formed Dorner Holdings Europe GmbH for the purpose of acquiring 100% equity ownership in GmbH, subsequently changed to Dorner GmbH. Dorner GmbH is a German-based company that designs and manufactures conveyor products and systems.
Dorner Holding Corp. acquired a 100% equity ownership in Sautem, S.A. de C.V. and formed Dorner Latin America S. de C.V.(Dorner Latin America), a wholly owned Mexican subsidiary which is engaged in the design and manufacture of conveyors and automatic labeling systems.
In December 2018, Dorner Holdings Europe GmbH formed Dorner Sarl, a wholly owned French subsidiary that provides marketing and development service to Dorner GmbH in the Republic of France.
Sales to foreign customers were approximately 11% and 14% of net sales for the three months ended December 31, 2020 and 2019, respectively. Accounts receivable from foreign customers were approximately $2,663,000 and $2,021,000 as of December 31, 2020 and 2019, respectively.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A summary of significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows:
Basis of Presentation
The accompanying condensed consolidated interim financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all information and disclosures required to be included in annual financial statements. The information contained in the accompanying condensed consolidated interim financial statements and the notes thereto should be read in conjunction with the consolidated financial statements and the notes thereto for the period ended September 30, 2020 (the “Annual Financial Statements”). These condensed consolidated interim financial statements do not repeat disclosures that would substantially duplicate disclosures in the Annual Financial Statements or details of accounts that have not been changed significantly in amounts or composition. The interim condensed consolidated financial statements have been prepared on the same basis as the Company’s Annual Financial Statements. In the opinion of management, the accompanying condensed consolidated interim financial statements reflect all adjustments, which include normal recurring adjustments, necessary for the fair presentation of these condensed consolidated interim financial statements. The results for the three months
9
Precision Acquision MidCo, Inc. and Subsidiaries
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
December 31, 2020 and 2019
ended December 31, 2020 are not necessarily indicative of the results that could be expected for the year ended September 30, 2021.
Principles of Consolidation
The accompanying financial statements include the financial position and results of operations of Precision Acquisition MidCo, Inc., Dorner Holding Corp., Dorner Mfg. Corp., Dorner Conveyors Ltd., Dorner Latin America S. de C.V., Dorner (M) Sdn. Bhd., Dorner Holdings Europe GmbH and Dorner GmbH, collectively referred to as the Company. All significant intercompany transactions and balances have been eliminated in the consolidation.
Use of Estimates
The preparation of the condensed consolidated interim financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated interim financial statements and the reported amounts of revenue and expenses during the reporting period in the condensed consolidated interim financial statements and accompanying notes. Actual results could differ from those estimates.
Inventories
Inventories are valued at the lower of cost or net realizable value. Cost is determined using the weighted-average cost method. The Company allocates overhead and direct labor on the basis of estimated direct labor hours in each work center. Net realizable value represents the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company determines its valuation reserve by considering a number of factors, including age of the inventory and various usage tests.
Property, Plant and Equipment
Property, plant and equipment are stated at cost. Depreciation and amortization of property, plant and equipment are calculated using the straight-line method over their estimated useful lives as follows:
Building and leasehold improvements | 5 to 39 years | |
Transportation equipment | 4 to 10 years | |
Office equipment | 3 to 7 years | |
Machinery and equipment | 3 to 10 years |
Repairs and maintenance that do not extend the lives of the applicable assets are charged to expense as incurred. Gain or loss from the retirement or other disposition of assets is included in other expense.
Revenue Recognition
Sales and related costs of sales are generally recorded when goods are shipped and title, ownership and risk of loss have passed to the customer, all of which occurs upon shipment or delivery of the product based on applicable shipping terms. The shipping terms may vary depending on the nature of the customer, domestic or foreign, and the type of transportation used. The Company provides for the estimated future warranty costs of repair, replacement or customer accommodation in cost of sales when sales are recognized and upon the incurrence of known and anticipated events and circumstances.
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Precision Acquision MidCo, Inc. and Subsidiaries
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
December 31, 2020 and 2019
NOTE C - INVENTORIES, NET
Inventories at December 31, consist of the following:
2020 | 2019 | |||||||
Raw materials | $ | 6,096,838 | $ | 4,825,648 | ||||
Work-in-process | 3,729,373 | 3,124,362 | ||||||
Finished goods | 1,839,425 | 1,431,795 | ||||||
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11,665,636 | 9,381,805 | |||||||
Less - valuation reserve | (516,154 | ) | (317,620 | ) | ||||
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$ | 11,149,482 | $ | 9,064,185 | |||||
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NOTE D - OTHER INTANGIBLE ASSETS, NET
The Company has the following amounts related to other intangible assets as of December 31:
2020 | ||||||||||||||
Weighted- Lives | Gross | Accumulated Amortization | Net Book Value | |||||||||||
Trade name | 16.25 | $ | 8,500,000 | $ | (1,611,500 | ) | $ | 6,888,500 | ||||||
Technology | 11.25 | 30,500,000 | (7,709,700 | ) | 22,790,300 | |||||||||
Customer relationships | 16.25 | 111,500,000 | (21,138,400 | ) | 90,361,600 | |||||||||
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$ | 150,500,000 | $ | (30,459,600 | ) | $ | 120,040,400 | ||||||||
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2019 | ||||||||||||||
Weighted- Lives | Gross | Accumulated Amortization | Net Book Value | |||||||||||
Trade name | 17.25 | $ | 8,500,000 | $ | (1,186,500 | ) | $ | 7,313,500 | ||||||
Technology | 12.25 | 30,500,000 | (5,676,400 | ) | 24,823,600 | |||||||||
Customer relationships | 17.25 | 111,500,000 | (15,563,366 | ) | 95,936,634 | |||||||||
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$ | 150,500,000 | $ | (22,426,266 | ) | $ | 128,073,734 | ||||||||
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11
Precision Acquision MidCo, Inc. and Subsidiaries
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
December 31, 2020 and 2019
The aggregate annual amortization expense for other intangible assets subsequent to December 31, 2020 is as follows:
Remaining 2021 | $ | 6,025,000 | ||
2022 | 8,033,300 | |||
2023 | 8,033,300 | |||
2024 | 8,033,300 | |||
2025 | 8,033,300 | |||
Thereafter | 81,882,200 | |||
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Total | $ | 120,040,400 | ||
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Amortization expense for other amortizable intangible assets amounted to approximately $2,008,300 for the three months ended December 31, 2020 and 2019.
NOTE E - FINANCING ARRANGEMENTS
The Company has available a revolving line of credit with a bank that expires March 15, 2022. Borrowings are limited to $10,000,000. Interest on borrowings is currently at LIBOR plus 5.75% (6.75% at December 31, 2020 and 7.45% at December 31, 2019). Outstanding borrowings under the revolving line of credit were $0 at both December 31, 2020 and 2019.
The Company has an agreement with a financial institution in Germany that is currently in the form of a line of credit in which borrowings are limited to 1,000,000€ to fund building expansion and production capabilities. Outstanding borrowings under the line of credit were approximately 737,000€ or $902,000 USD and 844,000€ or $947,000 USD at December 31, 2020 and 2019, respectively. Upon reaching the limit of the line of credit, this will be converted into a term loan with a bank that expires June 30, 2027. Interest rate on borrowings is currently 1.17%.
During the year, the Company made principal only prepayments on the term loan. As a result, there will be no required principal repayment due until December 31, 2022 and the entire carrying amount of the loan will be considered to be a long-term obligation.
12
Precision Acquision MidCo, Inc. and Subsidiaries
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
December 31, 2020 and 2019
Long-term obligations at December 31, consist of the following:
2020 | 2019 | |||||||
Term loan to a bank, currently bearing interest at LIBOR plus 5.75% (6.75% and 7.45% at December 31, 2020 and 2019, respectively). Monthly, interest only installment payments are due through December 31, 2022, with the next required principal payment due December 31, 2022. The final lump-sum installment is due March 15, 2023. Collateral on loan is all real and personal property of the Company | $61,870,116 | $71,800,000 | ||||||
Capital lease obligation - with imputed interest rate of 7.21%, payable through 2035, collateralized by a building | 12,569,469 | 12,357,597 | ||||||
Less: Unamortized debt issuance costs, net of accumulated amortization of $1,452,000 and $1,042,000 as of December 31, 2020 and 2019, respectively | (905,416 | ) | (1,307,649 | ) | ||||
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73,534,169 | 82,849,948 | |||||||
Less: Current portion of capital lease obligation | (450,479 | ) | (194,049 | ) | ||||
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$ | 73,083,690 | $ | 82,655,899 | |||||
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The Company leases a building under an agreement that is classified as a capital lease. The cost of the building under the capital lease of $10,517,000 at December 31, 2020 and 2019, is included in the consolidated balance sheets within property, plant and equipment. Accumulated amortization of the leased building at December 31, 2020 and 2019 was approximately $2,141,000 and $1,576,000, respectively. Amortization under capital leases was approximately $141,000 for the three months ended December 31, 2020 and 2019.
The aggregate annual principal payments required on notes payable and the future minimum lease payments on the capital lease are as follows:
December 31, 2020, | Term Loan | Capital Lease | Total | |||||||||
Remaining 2021 | $ | - | $ | 838,305 | $ | 838,305 | ||||||
2022 | - | 1,148,422 | 1,148,422 | |||||||||
2023 | 61,870,116 | 1,182,875 | 63,052,991 | |||||||||
2024 | - | 1,218,361 | 1,218,361 | |||||||||
2025 | - | 1,254,914 | 1,254,914 | |||||||||
Thereafter | - | 15,378,974 | 15,378,974 | |||||||||
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61,870,116 | 21,021,851 | 82,891,967 | ||||||||||
Less: Interest | - | (8,452,382 | ) | (8,452,382 | ) | |||||||
Less: Unamortized debt issuance costs, net | (905,416 | ) | - | (905,416 | ) | |||||||
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$ | 60,964,700 | $ | 12,569,469 | $ | 73,534,169 | |||||||
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13
Precision Acquision MidCo, Inc. and Subsidiaries
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
December 31, 2020 and 2019
NOTE F - INCOME TAXES
A reconciliation of the provision for income taxes using the statutory federal income tax rate to the effective income tax rate at December 31, is as follows:
2020 | 2019 | |||||||||||||||
Federal statutory rate | $ | 704,342 | 21.0 | % | $ | (252,973 | ) | (21.0 | )% | |||||||
Other* | 229,904 | 6.9 | 226,132 | 19.0 | ||||||||||||
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$ | 934,246 | 27.9 | % | $ | (26,841 | ) | (2.0 | )% | ||||||||
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* Other provision for income taxes is primarily made up of foreign tax rate differences, state income taxes, and a valuation allowance for Section 163(j).
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities result primarily from inventory, stock-based compensation, goodwill, intangible assets, property, plant and equipment and accrued liabilities. These items along with the tax effects of net operating loss (NOL) and tax credit carryforwards comprise the following components of deferred income taxes at December 31, (approximate):
2020 | 2019 | |||||||
Deferred tax asset | $ | 2,733,000 | $ | 1,905,000 | ||||
Deferred tax liability | (31,056,000 | ) | (31,589,000 | ) | ||||
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Net deferred tax liability | $ | (28,323,000 | ) | $ | (29,684,000 | ) | ||
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NOTE G - RISKS AND UNCERTAINTIES
In March 2020, an outbreak of COVID-19 occurred globally causing significant fluctuations in financial markets and disruptions in global business operations. The extent of the impact on the Company’s assets and future operations will depend on the duration and continued spread of the outbreak, including any other further developments.
NOTE H - ADDITIONAL FINANCIAL INFORMATION
Other current liabilities consist of the following at December 31:
2020 | 2019 | |||||||
Accrued commissions and rebates | $ | 640,103 | $ | 65,712 | ||||
Accrued warranty | 118,700 | 138,700 | ||||||
Accrued income taxes | 1,409,927 | - | ||||||
Accrued agent termination costs | 496,440 | - | ||||||
Other | 643,596 | 467,454 | ||||||
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$ | 3,308,766 | $ | 671,866 | |||||
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14
Precision Acquision MidCo, Inc. and Subsidiaries
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
December 31, 2020 and 2019
NOTE I - SUBSEQUENT EVENTS
The Company evaluated subsequent events through April 20, 2021, the date which the condensed consolidated interim financial statements were available to be issued. There were no material subsequent events that required recognition or additional disclosure in these condensed consolidated interim financial statements, other than those noted below.
On March 1, 2021, the Company entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”) with Columbus McKinnon Corporation (“Columbus”). The Company is now a wholly owned subsidiary of Columbus. The Merger was effective April 7, 2021.
On March 31, 2021, the Company paid off their line of credit in Germany. The total amount paid off was €707,400 and there is no remaining balance on the line of credit.
15