JAGEMANN SPORTING GROUP’S WISCONSIN CASING DIVISION
FINANCIAL STATEMENTS
DECEMBER 31, 2018 AND 2017
JAGEMANN SPORTING GROUP’S WISCONSIN CASING DIVISION
CONTENTS
To the Board of Directors and Stockholders
of Jagemann Stamping Co.
Manitowoc, Wisconsin
Report on the Financial Statements
We have audited the accompanying financial statements of Jagemann Sporting Group’s Wisconsin Casing Division which comprise the balance sheets as of December 31, 2018 and 2017, and the related statements of operations, Wisconsin Casing Division’s equity, and cash flows for the years ended December 31, 2018 and 2017, and the related notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Jagemann Sporting Group’s Wisconsin Casing Division as of December 31, 2018 and 2017, and the results of its operations and its cash flows for the years ended December 31, 2018 and 2017 in accordance with accounting principles generally accepted in the United States of America.
/S/ KWCO, PC | |
KWCO, PC | |
Odessa, Texas 79762 | |
JUNE 17, 2019 |
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JAGEMANN SPORTING GROUP’S WISCONSIN CASING DIVISION
Balance Sheets
December 31, 2018 and 2017
2018 | 2017 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Accounts receivable, less allowance for doubtful receivables of $2,054,505 and $1,718,604 | $ | 2,139,465 | $ | 2,182,653 | ||||
Inventories | 4,845,355 | 4,181,438 | ||||||
Other receivables | 97,009 | 50,083 | ||||||
Total current assets | 7,081,829 | 6,414,174 | ||||||
Machinery and equipment | ||||||||
Machinery and equipment | 17,903,511 | 16,741,859 | ||||||
Construction in progress | 1,290,305 | 537,321 | ||||||
19,193,816 | 17,279,180 | |||||||
Less accumulated depreciation | 8,127,013 | 6,736,896 | ||||||
Net machinery and equipment | 11,066,803 | 10,542,284 | ||||||
$ | 18,148,632 | $ | 16,956,458 | |||||
LIABILITIES AND WISCONSIN CASING DIVISION’S EQUITY | ||||||||
Current liabilities | ||||||||
Current maturities of: | ||||||||
Long-term debt | $ | 573,000 | $ | 557,000 | ||||
Capital lease obligations | 888,000 | 831,000 | ||||||
Accounts payable | 2,661,690 | 1,449,192 | ||||||
Accrued liabilities | 74,150 | 81,331 | ||||||
Total current liabilities | 4,196,840 | 2,918,523 | ||||||
Long-term debt, less current maturities and unamortized debt issuance costs | 1,633,807 | 2,212,020 | ||||||
Capital lease obligations, less current maturities | 2,150,426 | 1,445,466 | ||||||
Total liabilities | 7,981,073 | 6,576,009 | ||||||
Wisconsin Casing Division’s equity | ||||||||
Net parent investment | 14,090,606 | 11,625,400 | ||||||
Accumulated deficit | (3,923,047 | ) | (1,244,951 | ) | ||||
Wisconsin Casing Division’s equity | 10,167,559 | 10,380,449 | ||||||
$ | 18,148,632 | $ | 16,956,458 |
The accompanying notes are an integral part of these financial statements
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JAGEMANN SPORTING GROUP’S WISCONSIN CASING DIVISION
Statements of Operations
Years ended December 31, 2018 and 2017
2018 | 2017 | |||||||
Net sales | $ | 15,417,735 | $ | 12,603,762 | ||||
Cost of sales | 17,242,451 | 13,352,887 | ||||||
Gross loss | (1,824,716 | ) | (749,125 | ) | ||||
Selling and administrative expenses | 454,110 | 228,323 | ||||||
Loss from operations | (2,278,826 | ) | (977,448 | ) | ||||
Other expense | ||||||||
Interest expense | (399,270 | ) | (215,458 | ) | ||||
Net loss | $ | (2,678,096 | ) | $ | (1,192,906 | ) |
The accompanying notes are an integral part of these financial statements
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JAGEMANN SPORTING GROUP’S WISCONSIN CASING DIVISION
Statements of Equity
Years ended December 31, 2018 and 2017
Accumulated Deficit | Net Parent Investment | Total Equity | ||||||||||
Balance, December 31, 2016 | $ | (52,045 | ) | $ | 10,156,479 | $ | 10,104,434 | |||||
Net loss | (1,192,906 | ) | - | (1,192,906 | ) | |||||||
Net transfers from parent | - | 1,468,921 | 1,468,921 | |||||||||
Balance, December 31, 2017 | (1,244,951 | ) | 11,625,400 | 10,380,449 | ||||||||
Net loss | (2,678,096 | ) | - | (2,678,096 | ) | |||||||
Net transfers from parent | - | 2,465,206 | 2,465,206 | |||||||||
Balance, December 31, 2018 | $ | (3,923,047 | ) | $ | 14,090,606 | $ | 10,167,559 |
The accompanying notes are an integral part of these financial statements
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JAGEMANN SPORTING GROUP’S WISCONSIN CASING DIVISION
Statements of Cash Flows
Years ended December 31, 2018 and 2017
2018 | 2017 | |||||||
Operating activities | ||||||||
Net loss | $ | (2,678,096 | ) | $ | (1,192,906 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation | 1,390,117 | 1,235,416 | ||||||
Allowance for doubtful receivables | 335,901 | 100,000 | ||||||
Inventory reserves | (27,312 | ) | 58,652 | |||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable | (292,713 | ) | 782,583 | |||||
Inventories | (636,605 | ) | 27,776 | |||||
Other receivables | (46,926 | ) | 78,786 | |||||
Accounts payable | 1,212,498 | (306,923 | ) | |||||
Accrued liabilities | (7,181 | ) | (127,923 | ) | ||||
Net cash provided by (used in) operating activities | (750,317 | ) | 655,461 | |||||
Investing activity | ||||||||
Purchase of machinery and equipment | (283,945 | ) | (699,807 | ) | ||||
Financing activities | ||||||||
Net transfers from parent | 2,465,206 | 1,468,921 | ||||||
Principal payments on: | ||||||||
Long-term debt | (562,213 | ) | (555,786 | ) | ||||
Capital lease obligations | (868,731 | ) | (868,789 | ) | ||||
Net cash provided by financing activities | 1,034,262 | 44,346 | ||||||
Cash and cash equivalents | ||||||||
Net increase | - | - | ||||||
Beginning of year | - | - | ||||||
End of year | $ | - | $ | - | ||||
Supplemental cash flow information | ||||||||
Cash paid for interest | $ | 399,284 | $ | 218,638 | ||||
Non-cash investing and financing activities | ||||||||
Machinery and equipment acquired under capital lease | $ | 1,630,691 | $ | - |
The accompanying notes are an integral part of these financial statements
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JAGEMANN SPORTING GROUP’S WISCONSIN CASING DIVISION
Notes to Financial Statements
December 31, 2018 and 2017
Note 1 - Nature of business and principles and significant accounting policies
A. | Nature of business and basis of presentation |
Jagemann Sporting Group’s Wisconsin Casing Division (the “Company”) is principally engaged in the manufacture and sale of ammunition casings for commercial, law enforcement, and military markets. The Company is located in Manitowoc, Wisconsin. | |
The Company has historically operated as part of Jagemann Stamping Company (the “Parent”) and not as a standalone or separate legal entity. Financial statements representing the historical operations of Company’s manufacturing and distribution business have been derived from the Parent’s historical accounting records and are presented on a carve-out basis. All revenues and costs as well as assets and liabilities directly associated with the business activity of the Company are included in the financial statements. The financial statements also include allocations of certain general, administrative, sales and marketing expenses and cost of sales from Parent. However, amounts recognized by the Company are not necessarily representative of the amounts that would have been reflected in the financial statements had the Company operated independently of Parent. | |
As part of Parent, the Company is dependent upon Parent for all of its working capital and financing requirements as Parent uses a centralized approach to cash management and financing of its operations. Financial transactions relating to the Company are accounted for through the net parent investment account. Accordingly, none of Parent’s cash, cash equivalents or debt at the corporate level have been assigned to the Company in the financial statements. Net parent investment represents Parent’s interest in the recorded net assets of the Company. All significant transactions between the Company and Parent have been included in the accompanying financial statements. Transactions with Parent are reflected in the accompanying Statements of Changes in Equity as “Net transfers from parent” and in the accompanying Balance Sheets within “Wisconsin Casing Division’s Equity”. | |
B. | Subsequent events |
The Company has evaluated events and transactions for potential recognition or disclosure in the financial statements through June 17, 2019, the date on which the financial statements were available to be issued. | |
C. | Use of estimates |
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Management believes that the most sensitive estimates affecting the financial statements are the allowance for doubtful accounts, inventory obsolescence, inventory revaluation, standard inventory costs and accrued self-funded health insurance. Accordingly, actual results could differ from those estimates. |
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JAGEMANN SPORTING GROUP’S WISCONSIN CASING DIVISION
Notes to Financial Statements, Continued
December 31, 2018 and 2017
Note 1 - Nature of business and principles and significant accounting policies, continued
D. | Revenue recognition |
Revenue for manufactured ammo casings is recognized when the title to the products and risk of loss are transferred to customers. Sales are generally recognized upon the shipment of products. | |
E. | Accounts receivable |
Accounts receivable are stated at the amount the Company expects to collect from outstanding balances. The Company provides for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on management’s assessment of the current status of individual accounts, giving consideration to historical experience and existing economic conditions. Balances that are still outstanding after the Company has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. | |
F. | Inventories |
Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out method (FIFO). Work in process and finished goods inventory values include costs of material, labor, and overhead. | |
G. | Machineryand equipment and depreciation |
Machineryand equipment are stated at cost. Expenditures for additions and improvements are capitalized while replacements, maintenance and repairs which do not improve or extend the lives of the respective assets are expensed currently as incurred. Properties sold or otherwise disposed of are removed from the property accounts, with gains or losses on disposal credited or charged to the results of operations. Additionally, the Company constructs assets which consist of labor and material. These assets are included in construction in progress until placed into service. | |
Depreciation is provided over the estimated useful lives (3 to 20 years) of the respective assets, using the straight-line method for financial reporting purposes and, in general, accelerated methods for income tax purposes. | |
H. | Debt issuance costs |
Debt issuance costs are included as a reduction of long-term debt and are expensed as interest over the life of the loan. | |
I. | Shipping and handling costs |
Shipping and handling costs are expensed as incurred and are included in cost of sales. |
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JAGEMANN SPORTING GROUP’S WISCONSIN CASING DIVISION
Notes to Financial Statements, Continued
December 31, 2018 and 2017
Note 1 - Nature of business and significant accounting policies, continued
J. | Income taxes |
The Parent has elected to be taxed under the provisions of Subchapter S of the Internal Revenue Code. Accordingly, the financial statements do not include a provision for income taxes because the Company does not incur federal or state income taxes. Instead, its earnings are included in the stockholders’ personal income tax returns and are taxed based on their personal tax strategies. | |
The Company reports certain items for income tax purposes on a basis different from that reflected in the accompanying financial statements. The principal differences are related to the depreciation of certain assets on accelerated methods and reserves and accruals not currently deductible for income tax purposes. The tax liabilities relating to the reversal of temporary differences in future years will be the responsibility of the stockholders unless the S corporation election is terminated, at which time deferred income taxes applicable to the temporary differences would be recorded by the Company through an adjustment to income from continuing operations. | |
It is the Company’s intent to distribute cash to its stockholders to fund, at a minimum, the personal income taxes attributable to the inclusion of the Company’s income on their personal income tax returns. | |
K. | Presentation of sales taxes |
The Company may collect sales tax from certain customers and remit the entire amount to the appropriate governmental entities. The Company’s accounting policy is to exclude the tax collected and remitted from revenues and cost of sales. | |
L. | Cost allocations |
The historical costs and expenses reflected in these financial statements include an allocation for certain corporate and shared service functions historically provided by the Parent. These expenses have been allocated on the basis of direct usage when identifiable, with the remainder allocated on a pro rata basis of sales, headcount, tangible assets or other measures considered to be a reasonable reflection of the historical utilization levels of these services. |
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JAGEMANN SPORTING GROUP’S WISCONSIN CASING DIVISION
Notes to Financial Statements, Continued
December 31, 2018 and 2017
Note 1 - Nature of business and significant accounting policies, continued
L. | Cost allocations, continued |
Management believes the assumptions underlying these financial statements, including the assumptions regarding the allocation of general corporate expenses from the Parent, are reasonable. Nevertheless, these financial statements may not include all of the actual expenses that would have been incurred had the Company operated as a standalone or separate legal entity during the periods presented and may not reflect the Company’s results of operations, financial position and cash flows had the Company operated as a standalone or separate legal entity during the periods presented. Actual costs that would have been incurred if the Company had operated as a standalone or separate legal entity would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. The Company also may incur additional costs associated with being a publicly listed standalone or separate legal entity that were not included in the expense allocations and, therefore, would result in additional costs that are not reflected in the Company’s historical results of operations, financial position and cash flows. | |
M. | Recently issued accounting standards |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2014-09,Revenue from Contracts with Customers(Topic 606), which clarifies the principles for recognizing revenue. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard supersedes all existing U.S. GAAP guidance on revenue recognition and is expected to require the use of more judgment and result in additional disclosures. The FASB has issued several amendments to the original standard, which is effective for the Company’s year ending December 31, 2019, with early adoption permitted. Adoption is to be applied retrospectively. The Company is currently evaluating the impact of ASU 2014-09 on the Company’s financial statements and has not yet determined its method of adoption. | |
In February 2016, the FASB issued ASU 2016-02,Leases (Topic 842),which is expected to increase transparency and comparability among organizations. The core principle of this guidance is that a lessee should recognize the assets and liabilities that arise from leases. The standard requires lessees to reflect most leases on their balance sheet as lease liabilities with a corresponding right-of-use asset, while leaving presentation of lease expense in the statement of income largely unchanged. The standard also eliminates the real-estate specific provisions that exist under current U.S. GAAP and modifies the classification criteria and accounting which lessors must apply to sales-type and direct financing leases. The standard is effective for the Company’s year ending December 31, 2020, with early adoption permitted. The Company is currently evaluating the impact of ASU 2016-02 on the Company’s financial statements. |
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JAGEMANN SPORTING GROUP’S WISCONSIN CASING DIVISION
Notes to Financial Statements, Continued
December 31, 2018 and 2017
Note 1 - Nature of business and significant accounting policies, continued
M. | Recently issued accounting standards, continued |
In June 2016, the FASB issued ASU 2016-13,Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard requires a change in the measurement approach for credit losses on financial assets measured at amortized cost basis from an incurred loss method to an expected loss method, thereby eliminating the requirement that a credit loss be considered probable to impact the valuation of a financial asset measured on an amortized cost basis. The standard requires the measurement of expected credit losses to be based on relevant information about past events, including historical experience, current conditions, and a reasonable and supportable forecast that affects the collectability of the related financial asset. The amendments in this update are to be applied on a modified-retrospective approach, and are effective for the Company’s year ending December 31, 2021, with early adoption allowed as of years beginning after December 31, 2018. The Company is currently evaluating the impact of ASU 2016-13 on the Company’s financial statements. |
Note 2 - Significant customers and concentration of credit risk
Unsecured credit (in the form of accounts receivable) is extended to individual customers. Sales to two customers accounted for approximately 49% and 57% of net sales for the years ended December 31, 2018 and 2017, respectively. Balances due from two and one customers account for approximately 52% and 49% of accounts receivable as of December 31, 2018 and 2017, respectively.
Note 3 - Intercompany transactions
Intercompany transactions between the Company and the Parent have been included in these financial statements and are forgiven at the time the transaction is recorded. The total net effect of the settlement of these intercompany transactions is reflected in the statements of cash flows as a financing activity and in the balance sheets as “Wisconsin Casing Division’s equity”. The components of the net transfers from the Parent for years ended December 31, 2018 and 2017 is related to cash pooling and general financing activities.
Note 4 - Inventories
Inventories at December 31, 2018 and 2017 consist of the following:
Raw materials | $ | 1,875,293 | $ | 1,850,441 | ||||
Work in process | 1,221,424 | 600,115 | ||||||
Finished goods | 1,754,470 | 1,752,444 | ||||||
Parts and supplies | 53,508 | 65,090 | ||||||
Obsolescence reserve | (34,340 | ) | (51,652 | ) | ||||
Net realizable value reserve | (25,000 | ) | (35,000 | ) | ||||
$ | 4,845,355 | $ | 4,181,438 |
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JAGEMANN SPORTING GROUP’S WISCONSIN CASING DIVISION
Notes to Financial Statements, Continued
December 31, 2018 and 2017
Note 5 - Long-term debt
Long-term debt at December 31, 2018 and 2017 consists of the following:
BMO Harris Bank | ||||||||
Note with interest at LIBOR plus 2.75% (5.1% and 4.13% at December 31, 2018 and 2017, respectively), due in monthly installments of $23,655 plus interest, balance due March 2021, secured by substantially all assets of the Company and personal guarantees of stockholders | $ | 568,623 | $ | 852,488 | ||||
Wells Fargo Bank | ||||||||
Note with effective rate of 3.88% including SBA fees, due in monthly installments of principal and interest of $14,988, balance due in January 2025 secured by equipment and personal guarantees of stockholders | 1,030,515 | 1,188,450 | ||||||
City of Manitowoc, WI | ||||||||
Note with fixed rate of 2.11%, due in monthly installments of principal and interest of $11,720, balance due September 2023, secured by equipment | 625,050 | 751,040 | ||||||
Less unamortized debt issuance costs | (17,381 | ) | (22,958 | ) | ||||
Total long-term debt | 2,206,807 | 2,769,020 | ||||||
Less current maturities | 573,000 | 557,000 | ||||||
$ | 1,633,807 | $ | 2,212,020 |
Maturities of long-term debt for each of the five years succeeding December 31, 2018 are as follows:
Year ending | ||||
December 31, | ||||
2019 | $ | 573,000 | ||
2020 | 579,000 | |||
2021 | 302,000 | |||
2022 | 308,000 | |||
2023 | 279,000 |
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JAGEMANN SPORTING GROUP’S WISCONSIN CASING DIVISION
Notes to Financial Statements, Continued
December 31, 2018 and 2017
Note 6 - Capital leases
The Company has entered into several long-term lease agreements which are classified as capital leases. Included in machinery and equipment at December 31, 2018 and 2017 are the following amounts that pertain to these leases:
2018 | 2017 | |||||||
Machinery and equipment | $ | 5,585,466 | $ | 4,995,206 | ||||
Construction in progress | 1,040,431 | - | ||||||
Less accumulated depreciation | (2,261,067 | ) | (1,852,295 | ) | ||||
$ | 4,364,830 | $ | 3,142,911 |
Depreciation expense for equipment under capital leases was $408,772 and $358,230 for the years ended December 31, 2018 and 2017, respectively.
Following is a schedule by years of future minimum lease payments required under the leases together with the present value of the net minimum payments as of December 31, 2018:
Year ending December 31, | ||||
2019 | $ | 1,027,547 | ||
2020 | 788,120 | |||
2021 | 728,892 | |||
2022 | 520,787 | |||
2023 and after | 336,499 | |||
Total minimum lease payments | 3,401,845 | |||
Less amount representing interest | 363,419 | |||
Present value of net minimum lease payments | 3,038,426 | |||
Less current maturities | 888,000 | |||
Capital lease obligation, less current maturities | $ | 2,150,426 |
12 |
JAGEMANN SPORTING GROUP’S WISCONSIN CASING DIVISION
Notes to Financial Statements, Continued
December 31, 2018 and 2017
Note 7 - Operating leases
The Company leases various machinery and equipment under various short-term operating leases to related and unrelated parties. For the years ended December 31, 2018 and 2017, rent expense to unrelated parties was $160,116 and $222,414, respectively. Rent expense to related parties for the years ended December 31, 2018 and 2017 was $57,000.
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(UNAUDITED)
14 |
INDEPENDENT AUDITORS’ REPORT
ON SUPPLEMENTARY INFORMATION
To the Board of Directors and Stockholders
Of Jagemann Stamping Co.
Manitowoc, Wisconsin
We have audited the financial statements of Jagemann Sporting Group’s Wisconsin Casing Division as of and for the years ended December 31, 2018 and 2017, and our report thereon dated June 17, 2019, which expressed an unmodified opinion on those financial statements, appears on page one. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The unaudited supplemental information, which is the responsibility of management, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the financial statements, and, accordingly, we do not express an opinion or provide any assurance on it.
/S/ KWCO, PC | |
KWCO, PC | |
Odessa, TX 79762 | |
June 17, 2019 |
15 |
JAGEMANN SPORTING GROUP’S WISCONSIN CASING DIVISION
Balance Sheet Information - Unaudited
February 28, 2019
ASSETS | ||||
Current assets | ||||
Accounts receivable, less allowance for doubtful receivables of $2,054,505 | $ | 1,936,094 | ||
Inventories | 4,211,793 | |||
Other receivables | 106,196 | |||
Total current assets | 6,254,083 | |||
Machinery and equipment | ||||
Machinery and equipment | 17,923,439 | |||
Construction in progress | 1,318,128 | |||
19,241,567 | ||||
Less accumulated depreciation | 8,351,364 | |||
Machinery and equipment | 10,890,203 | |||
$ | 17,144,286 | |||
LIABILITIES AND WISCONSIN CASING DIVISION’S EQUITY | ||||
Current liabilities | ||||
Current maturities of: | ||||
Long-term debt | $ | 573,000 | ||
Capital lease obligations | 888,000 | |||
Accounts payable | 1,927,043 | |||
Accrued liabilities | 103,577 | |||
Total current liabilities | 3,491,620 | |||
Long-term debt, less current maturities and unamortized debt issuance costs | 1,540,704 | |||
Capital lease obligations, less current maturities | 2,024,977 | |||
Total liabilities | 7,057,301 | |||
Wisconsin Casing Division’s equity | ||||
Net parent investment | 14,230,332 | |||
Accumulated deficit | (4,143,347 | ) | ||
Total Wisconsin Casing Division’s equity | 10,086,985 | |||
$ | 17,144,286 |
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JAGEMANN SPORTING GROUP’S WISCONSIN CASING DIVISION
Statement of Operations Information - Unaudited
Two Months Ended February 28, 2019
Net sales | $ | 2,202,557 | ||
Cost of sales | 2,349,210 | |||
Gross loss | (146,653 | ) | ||
Selling and administrative expenses | 26,622 | |||
Loss from operations | (173,275 | ) | ||
Other expense | ||||
Interest expense | (47,025 | ) | ||
Other expense, net | (47,025 | ) | ||
Net loss | $ | (220,300 | ) |
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