Exhibit (c)(3)
Scope
Clear Thinking Group LLC was retained by Hirsch International Corporation on February 5th, 2009 to quickly complete a liquidation analysis of Hirsch International Corporation and to provide a report on its findings for a scheduled board meeting on February 11th, 2009.
Methodology
Clear Thinking Group LLC met with Paul Gallagher, CEO & Beverly Eichel, CFO on February 9th and 10th, 2009 to discuss the current Hirsch International situation and to obtain the data necessary to complete a basic liquidation analysis of the company.
CTG reviewed various financial documents such as the current top-line sales data and financial projections (on a calendar year basis), 12/31/08 balance sheet, accounts payable aging, inventory aging, accounts receivable aging, real estate lease summary information, historical income statements & balance sheets, etc.
Paul & Beverly were very cooperative during our on-site review. We appreciated their honest and straight forward communication, and their help in completing our analysis.
CTG Team
Lee Diercks – Partner & Managing Director
Mr. Diercks is a veteran of the Consumer Product Industry, with over 30 years of managerial experience with Company’s such as JCPenney, Coast to Coast Hardware, Total Sports, Herman’s Sporting Goods, Woolworth Corporation, Champ’s Sports, and Jumbo Sports. He has held positions such as Buyer, District Manger, Regional Merchandise Manager, Regional Operations Manager, Director of Store Operations, Director of Store Development, General Merchandise Manager, Chief Operating Officer, etc. He has worked at executive level positions for over 30 years. Mr. Diercks has worked as a consultant for the past 11 years, working primarily with retailers, internet companies, wholesalers, distributors, service organizations, and consumer product manufacturers. He has extensive bankruptcy and business turnaround experience, and has worked as interim executive manager in troubled businesses and with many companies in bankruptcy. Mr. Diercks holds a B.A. degree in Management and Marketing, and an MBA degree.
2/12/2009 |
| 1 |
| 11:37:17 AM |
Clear Thinking Group LLC
Personal & Confidential
Joseph Marchese – Manager
Mr. Marchese has over 15 years of consulting experience in the accounting and financial services arena. He has specialized in business planning, cash management, and financial reporting for many small to mid-market companies. His consulting projects have included the preparation and analysis of business plans, financial statements, budgets, forecasts and cash flow reporting. He has extensive experience in capital and operating expenditures, prepaid and accrual accounting, and with numerous financial systems. His extensive operation experience also assists in evaluating accounting practices and the implementation of proper accounting policies and procedures for our clients.
Executive Overview
CTG believes that Hirsch International Corporation thru an orderly wind down of its operations can deliver a return to Shareholders in the range of approximately $1.2 million in a worse case scenario to approximately $3.5 million in a best case scenario. However, due to the current economic environment, expected returns on asset sales could vary widely in the near and long term future and could greatly impact any expected returns.
We believe that Hirsch could wind down its business in five months depending on its ability to sell thru approximately $12 million at cost of inventory. The $12 million at cost inventory includes product on order of approximately $1.9 million, $2.2 million in parts, $5.7 million of new product, $2.0 million of demo product and $150k of used equipment. However, due to the significant negative monthly cash flow of the current business, we believe a quick sale process would be the most efficient way for the company and maximize returns to the Shareholders.
The key to such a wind down process is the recovery on the sale of the inventory and the speed in which it is conducted. In conversations with Company Management, there is a belief that inventory sales could be increased with reductions in selling prices, increased marketing exposure and with greater commissions to the sales force. However, with the current economic situation, the speed of the sell thru of the inventory may be impacted as customers continue to hold off on making large capital commitments. As such, additional discounts may have to be given to motivate customers to buy now; which could affect the overall recovery on the sale of the inventory.
We believe that a two-phased sale process approach be used to maximize the inventory recovery, collect the accounts receivables, and to minimize the cash expenses. Assuming that the company would start such a process on 3/1/09, we believe a 60 day “Phase I” and a 60 day “Phase II”, with an additional 30 day wind down period would be necessary to complete all the necessary wind down activities. As such we have modeled the expenses to actually increase in the first 60 day period and then rapidly decline over the next 90 days.
2/12/2009 |
| 2 |
| 11:37:17 AM |
Key Criteria and Assumptions
· Wind Down Process – CTG believes that a carefully orchestrated and executed wind down process will maximize recovery for the Hirsch Shareholders. As such, we believe the wind down process would need to be implemented in such a way to ramp up sales in the short term before announcing the plan to wind down the company; or in other words a two phase approach to selling thru the inventory and winding down the company. The company in parallel actions would implement significant accounts receivable collections efforts, and expense reduction efforts to maximize recovery.
As such it is our perspective that in “Phase I”, that the company would need to aggressively price the existing inventory to get it to sell, increase sales commissions to motivate the existing staff, and increase the marketing effort for approximately 60 days. We believe these actions would sell thru most of the less expensive inventory that requires more intensive customer service, training and sales support. At the end of the 60 days, a significant reduction in sales staff and sales support could be implemented, thus reducing a significant monthly cash outlay.
Phase II would focus on selling the remaining inventory to more established customers that need less sales support and training over the course of 60 days. We would assume that most of the sales offices could be closed with only the best sales staff remaining to sell thru the remaining inventory.
Assuming that the company started a wind down process 3/1/09, it is our opinion that the Company could effectively close the business by the end of July 2009. In addition to the 120 days needed to sell inventory and collect accounts receivable, we also assume an additional 30 days will be needed to complete the necessary financial and legal requirements to close down the business.
· Cash Position – As of 2/9, per Company records, Hirsch had approximately $4.5 million of cash in the bank and $200k in outstanding checks, giving them net available cash of $4.3 million. Approximately $1.0 million of the cash balance was an unused Letter of Credit. We assume the LC will be drawn down to pay for new goods or monetized in the wind down process. Outstanding checks included in the
· Accounts Receivable – Hirsch’s accounts receivable is relatively old, with 60% of the receivable balances more than 60 days past due. According to the Company’s inventory aging, there are approximately 2,000 accounts that have a balance owed to the Company. Due to the significant number of accounts and the age of the balances owed, we believe that the company will need assistance of a collection agency and in some instances legal assistance to collect the amounts owed.
2/12/2009 |
| 3 |
| 11:37:17 AM |
Recovery rates could be affected by potential offsets, due to customer service or warranty issues during the wind down process.
· Inventory – Hirsch currently has approximately $10.0 million in inventory at cost on hand, and another $1.9 million at cost on order. Company management believes it will be difficult if not impossible to cancel the current on order. As such we have assumed that the company will have approximately $12.0 million in inventory to dispose of.
$2.2 million of the inventory consists of parts, which according to management has little value. We believe the recovery rate on the parts will be very minimal, as it is specific to equipment sold in the past.
To sell thru this level of inventory in a short time, we believe that the average recovery on new product to be slightly below cost. As such, all attempts should be made to cancel as much of the on order as possible as there is a large likely hood that the company would have to sell it below cost to monetize those assets. However, we have assumed for this model that the inventory on order will be received complete, and thus it is our opinion that it will need to be liquidated at or below cost.
· Furniture, Fixtures, & Equipment
According the Company’s 12/31/08 balance sheet, Hirsch had a book value of approximately $1.6 million after depreciation on its fixed assets. This asset class consists of furniture & fixtures, computer equipment, leasehold improvements, website development costs, and computer software upgrades. Unfortunately there are not many assets in this asset class to be monetized, as software development; and website development costs can not be recovered. Also, due to the significant excess of office furniture & computer equipment in the marketplace currently, there will be little cash recovered on this asset class. We assume in this situation that the company will require the assistance of a fixture/equipment liquidator to maximize the recovery rates and have built in the potential liquidation costs into the model.
· Real Estate Lease Liability
Based on the lease summary information provided by the company, CTG has calculated the remaining real estate lease liabilities, assuming all property leases are vacated and turned back to the landlords by 6/30/09. The remaining liability would be approximately $730k. However, we believe that there may be a potential to offset some of those costs if some of these leases can be sublet or reassigned to other possible tenants.
· Other Contracts & Non- Real Estate Leases
Hirsch has very few other contracts, leases, or contractual commitments according to Company management. There is one auto lease and a few other leases with
2/12/2009 |
| 4 |
| 11:37:17 AM |
approximately $14k in additional obligations assuming this equipment is returned as of 6/30/09.
· Wind Down Expenses
To get to the wind down start date of 3/1/09, we estimated that the remaining 3 weeks of February 2009 will result in a net cash burn of $150/week. Hirsch’s current financial plan indicates that the company will spend approximately $1.1 million on average each month for SG&A expenses. As such we believe that in a phased approach to selling the remaining inventory and winding down the business, that the actual expenses in the first two months of the wind down would actually increase to approximately $1.2 million each month. This increase in expenses is primarily due to increased marketing and sales commission costs. Once the wind down enters the third month, expenses would be expected to decline rapidly, and be eliminated as certain activities stop, etc. We have also planned for a 30 day wrap-up for final corporate activities, including completion of tax returns, legal activities for dissolving the corporate/legal entities, etc.
· Accounts Payable & Accrued Expenses
As of 2/9/09 the company records indicate that there was approximately $4.6 million of accounts payable that would need to be paid. Also, the company has accrued unpaid expenses of $450k which includes sales taxes, professional fees, etc. We have also included one full year of potential accrued warranty expenses during this wind down period.
· Employee Severance
Based on the current severance policy and the existing employment contracts, CTG believes that there is approximately $1.1 million of severance costs that would need to be paid in a wind down of the business.
2/12/2009 |
| 5 |
| 11:37:17 AM |
Hirsch International Corporation
Liquidation Analysis | PERSONAL & CONFIDENTIAL |
| ||
Prepared by Clear Thinking Group LLC |
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| ||
| 2/11/2009 |
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| Estimated |
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| Liquidation Analysis Scenarios |
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| Value as of |
| $ Amount |
| LOW |
| MID |
| HIGH |
| ||||
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| Recoverable Assets as of 2/9/09 |
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a |
| Cash in Bank - Estimate |
| 9-Feb-09 |
| $ | 4,461,065 |
| $ | 4,461,065 |
| $ | 4,461,065 |
| $ | 4,461,065 |
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b |
| Accounts Receivable |
| 9-Feb-09 |
| $ | 3,906,446 |
| $ | 3,068,460 |
| $ | 3,273,920 |
| $ | 3,495,088 |
|
|
|
|
|
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| Recovery Rate |
| 78.5 | % | 83.8 | % | 89.5 | % | ||||
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| ||||
c |
| Inventory Equipment & Parts(Recovery on Cost) |
| 9-Feb-09 |
| $ | 11,912,256 |
| $ | 8,739,035 |
| $ | 9,716,269 |
| $ | 10,595,347 |
|
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|
|
| Recovery Rate |
| 73.4 | % | 81.6 | % | 88.9 | % | ||||
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d, e |
| Pre-Paid Expenses (Supplies, etc.) |
| 31-Dec-08 |
| $ | 164,000 |
| $ | 16,400 |
| $ | 24,600 |
| $ | 32,800 |
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|
|
|
| Recovery Rate |
| 10.0 | % | 15.0 | % | 20.0 | % | ||||
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f |
| Furniture, Fixtures & Equipment |
| 31-Dec-08 |
| $ | 1,555,698 |
| $ | 97,605 |
| $ | 123,312 |
| $ | 149,018 |
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|
| Recovery Rate |
| 6.3 | % | 7.9 | % | 9.6 | % | ||||
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g |
| Interllectual Property (Patents, Trademarks, URL’s, etc.) |
| 31-Dec-08 |
| 0 |
| $ | — |
| $ | — |
| $ | — |
| |
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|
|
|
| Recovery Rate |
| 10 | % | 15 | % | 20 | % | ||||
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h |
| FF&E Recovery Fee |
| -20 | % |
|
| $ | (19,521 | ) | $ | (24,662 | ) | $ | (29,804 | ) | |
i |
| Accounts Receivable Collection Fees |
| -15 | % |
|
| $ | (230,135 | ) | $ | (245,544 | ) | $ | (262,132 | ) | |
j |
| IP Recovery Fee |
| -30 | % |
|
| $ | — |
| $ | — |
| $ | — |
| |
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| Net Recovery before Wind DownExpenses, Professional Fees, and Return to Shareholders |
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| $ | 16,132,909 |
| $ | 17,328,960 |
| $ | 18,441,383 |
| |
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| Operating and Administrative Expenses, Professional Fees and Other Expenses: |
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k |
| Company Operating Costs During Orderly Wind Down |
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| 5,146,177 |
| 5,146,177 |
| 5,146,177 |
| ||||
l |
| Professional Fees & Expenses |
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|
| 750,000 |
| 750,000 |
| 750,000 |
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|
| Gross $ Available to Creditors |
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| $ | 10,236,732 |
| $ | 11,432,783 |
| $ | 12,545,206 |
| |
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m |
| Property Lease Liabilities |
| 31-Dec-08 |
| $ | 730,742 |
| $ | 730,742 |
| $ | 730,742 |
| $ | 730,742 |
|
n |
| Other Leases and Contracts Liabilities |
| 31-Dec-08 |
| $ | 13,872 |
| $ | 13,872 |
| $ | 13,872 |
| $ | 13,872 |
|
o |
| Accounts Payable & Accrued expenses payable |
| 9-Feb-09 |
| $ | 5,135,329 |
| $ | 5,135,329 |
| $ | 5,135,329 |
| $ | 5,135,329 |
|
p |
| Inventory On Order Commitment payable |
| 9-Feb-09 |
| $ | 1,963,143 |
| $ | 1,963,143 |
| $ | 1,963,143 |
| $ | 1,963,143 |
|
q |
| Accounts Receivable Credits |
| 9-Feb-09 |
| $ | 584,694 |
| $ | 584,694 |
| $ | 584,694 |
| $ | 584,694 |
|
r |
| February Cash Burn |
| 9-Feb-09 |
| $ | 450,000 |
| $ | 450,000 |
| $ | 450,000 |
| $ | 450,000 |
|
s |
| Check Float |
| 9-Feb-09 |
| $ | 200,000 |
| $ | 200,000 |
| $ | 200,000 |
| $ | 200,000 |
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| Net Available for Shareholders |
|
|
|
|
| $ | 1,158,952 |
| 2,355,002.67 |
| $ | 3,467,426 |
| ||
Clear Thinking Group LLC has relied on information provided by Hirsch International Corporation and its officers.
Clear Thinking Group LLC has not audited any of the information provided to us.
Prepared by CTG | Personal Confidential | 2/12/200911:23 AM |
| Assumptions: |
|
|
a | Cash on hand as of 2/9/09 per company cash flow Summary Report; less LC commitments |
b | Accounts receivables (includes credit card flow) as of 2/9/09 per company a/r aging records gross amounts before credits. Assumes 50% collected as normal and 50% collected with the use of a collection agency |
c | Inventory on hand at cost as of 2/9/09 per company inventory aging. Includes parts inventory & on order inventory |
d | Assumes most pre-paid expenses are unrecoverable with the exception of supplies, at the rates noted above, net of cost to recover |
e | Assumes real estate lease deposits of $35,703 are unrecoverable |
f | Off of 12/31/08 balance sheet and includes FF&E, leasehold improvements, computer upgrades, & website development costs |
g | Assumes company Intellectual Property has no value in the marketplace. |
h | Assumes a liquidator recovery fee of 20% of gross sales, net of sales tax. |
i | Assumes company uses a collection agency to collect the last 50% of accounts receivable. Collection fee of -15% of recovered receivables. |
j | Assumes the use of an IP broker at 30% of net sales. |
k | Assumes a normal expense run rate plus additional commisions and advertising for two months, and two months with reduced expenses and includes severance of $1.2 mil |
l | Assumes approx. $750k for legal and other professional fees for winding down the business for SEC filings, shareholder communication, possible litigation, etc |
m | Estimated real estate liability based on info as of 12/31/08. Assumes all offices and locations closed by 6/30/09 |
n | Estimated other contracts and leases liabilities as of 12/31/09. |
o | Accounts payable and accrued expenses as of 2/9/09. |
p | Assumes payables associated with the current inventory on order. |
q | Assumes current A/R credits returned to customers |
r | Assumes the remaining 3 weeks of February 09 will result in a net cash burn of $150k/week |
s | Current outstanding checks estimated at $200k |
|
|
| Misc. |
| Assumes no recovery or additional liability in regards to Hirsch International Corp. investment in Graphic Arts Acquisition. |
Prepared by CTG | Personal Confidential | 2/12/200911:23 AM |
Hirsch International Corporation
Cash in Bank Position
|
| Citibank |
| Citibank |
| WAMU |
| WAMU |
| Wachovia |
| Wachovia |
| Wachovia |
| Wachovia |
|
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|
| Checking |
| FSA |
| Checking |
| MMKT |
| F/X |
| Standby LC |
| MMKT |
| Checking |
| Total |
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12/31/2008 |
| 2,003,675 |
| 11,631 |
| 19,696 |
| 101,599 |
| 374,519 |
| 1,413,287 |
| 1,107,609 |
| 2,029 |
| 5,034,045 |
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2/9/2008 |
| 1,330,187 |
| 2,669 |
| 19,858 |
| 101,574 |
| 393 |
| 986,920 |
| 2,017,146 |
| 2,318 |
| 4,461,065 |
|
Clear Thinking Group LLC has relied on information provided by Hirsch International Corporation and its officers.
Clear Thinking Group LLC has not audited any of the information provided to us.
Prepared by CTG | Personal Confidential | 2/12/200911:23 AM |
Hirsch International Corporation
Accounts Receivable Summary
Customer |
| Current |
| 0-30 Days |
| 31 - 60 Days |
| 61 - 90 Days |
| 91 - 120 Days |
| Over 120 Days |
| Balance |
| |||||||
Laishley Marine Incorporated |
| $ | 3,714 |
| $ | 42,443 |
| $ | 4,452 |
| $ | 0 |
| $ | 0 |
| $ | 0 |
| $ | 50,609 |
|
Southside Sports |
| $ | 0 |
| $ | 0 |
| $ | 0 |
| $ | 50,743 |
| $ | 0 |
| $ | 0 |
| $ | 50,743 |
|
Mmpr Inc |
| $ | 53,430 |
| $ | 0 |
| $ | 525 |
| $ | 0 |
| $ | 0 |
| $ | 0 |
| $ | 53,955 |
|
Trophies Plus |
| $ | (1,508 | ) | $ | 0 |
| $ | 56,400 |
| $ | 0 |
| $ | 0 |
| $ | 0 |
| $ | 54,893 |
|
Imprinted Sportswear Shop |
| $ | 0 |
| $ | 0 |
| $ | 76 |
| $ | 0 |
| $ | 114 |
| $ | 59,500 |
| $ | 59,690 |
|
Skyline Gear Aka Authority Custom V |
| $ | 179 |
| $ | 0 |
| $ | 384 |
| $ | 59,700 |
| $ | 0 |
| $ | 0 |
| $ | 60,263 |
|
Goldline Embroidery |
| $ | 0 |
| $ | 0 |
| $ | 62,301 |
| $ | 0 |
| $ | 0 |
| $ | 0 |
| $ | 62,301 |
|
Fairfax Screenprinting |
| $ | 0 |
| $ | 36 |
| $ | 0 |
| $ | 66,100 |
| $ | 0 |
| $ | 6 |
| $ | 66,142 |
|
The T - Stop |
| $ | 5,286 |
| $ | 67,041 |
| $ | 0 |
| $ | 0 |
| $ | 0 |
| $ | 0 |
| $ | 72,327 |
|
Info Ink |
| $ | 76,708 |
| $ | 0 |
| $ | 0 |
| $ | 0 |
| $ | 0 |
| $ | 0 |
| $ | 76,708 |
|
The Tiffin Company Inc. |
| $ | (5,000 | ) | $ | 1,041 |
| $ | 0 |
| $ | 93,118 |
| $ | 0 |
| $ | 270 |
| $ | 89,429 |
|
Hat World, Inc. |
| $ | 262 |
| $ | 1,320 |
| $ | 142,780 |
| $ | 1,074 |
| $ | 1,037 |
| $ | 1,567 |
| $ | 148,041 |
|
Fusebox Designs |
| $ | 5,500 |
| $ | 5,250 |
| $ | 44,862 |
| $ | 44,130 |
| $ | 45,296 |
| $ | 17,549 |
| $ | 162,587 |
|
Picture It Dba Wear Haus Designs |
| $ | (1,500 | ) | $ | 177,808 |
| $ | 0 |
| $ | 819 |
| $ | 0 |
| $ | 270 |
| $ | 177,397 |
|
Print Plus |
| $ | (1,272 | ) | $ | 136,664 |
| $ | 0 |
| $ | 7,054 |
| $ | 0 |
| $ | 71,111 |
| $ | 213,557 |
|
All other under $50k |
| $ | (720,495 | ) | $ | 671,936 |
| $ | 524,351 |
| $ | 462,636 |
| $ | 182,055 |
| $ | 802,626 |
| $ | 1,923,111 |
|
Totals |
| $ | (584,694 | ) | $ | 1,103,540 |
| $ | 836,132 |
| $ | 785,374 |
| $ | 228,502 |
| $ | 952,898 |
| $ | 3,321,752 |
|
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|
| Total not including credits |
| $ | 3,906,446.12 |
| ||||||||
|
| Current |
| 0-30 Days |
| 31 - 60 Days |
| 61 - 90 Days |
| 91 - 120 Days |
| Over 120 Days |
| Balance |
| ||||||
Recovery Scenarios on Aged A/R |
| Low Case |
| 92 | % | 90 | % | 84 | % | 72 | % | 50 | % |
|
| ||||||
|
|
|
| $ | 1,015,256.52 |
| $ | 752,518.54 |
| $ | 659,714.16 |
| $ | 164,521.67 |
| $ | 476,449.20 |
| $ | 3,068,460.09 |
|
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|
|
|
| 78.5 | % | ||||||
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| Mid Case |
| 95 | % | 93 | % | 88 | % | 81 | % | 60 | % |
|
| ||||||
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|
|
| $ | 1,048,362.72 |
| $ | 777,602.49 |
| $ | 691,129.12 |
| $ | 185,086.88 |
| $ | 571,739.03 |
| $ | 3,273,920.24 |
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|
| 83.8 | % | ||||||
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| ||||||
|
| High Case |
| 98 | % | 96 | % | 94 | % | 90 | % | 70 | % |
|
| ||||||
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|
|
| $ | 1,081,468.91 |
| $ | 802,686.44 |
| $ | 738,251.56 |
| $ | 205,652.09 |
| $ | 667,028.87 |
| $ | 3,495,087.87 |
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|
|
| 89.5 | % | ||||||
Assumes Recoveries on A/R over 90 days requires Collection Agency Assistance.
Assumes Credits returned to customers.
Clear Thinking Group LLC has relied on information provided by Hirsch International Corporation and its officers.
Clear Thinking Group LLC has not audited any of the information provided to us.
Prepared by CTG |
| Personal Confidential |
| 2/12/200911:23 AM |
Hirsch International Corporation
Inventory Summary
By Vendor |
| Count |
| By Type |
| Count |
| By Vendor/Type |
| Count |
| ||||||
Machines | |||||||||||||||||
KORNIT |
| 847,647 |
| 19 |
| New |
| 5,669,298 |
| 257 |
| GEMFIX Demo |
| 36,669 |
| 2 |
|
MHM |
| 1,167,654 |
| 31 |
| Demo |
| 2,054,038 |
| 132 |
| GEMFIX New |
| 36,669 |
| 2 |
|
MIMAKI |
| 235,158 |
| 14 |
| Used |
| 158,247 |
| 9 |
| KORNIT Demo |
| 427,654 |
| 15 |
|
SEIT |
| 157,137 |
| 2 |
|
|
|
|
|
|
| KORNIT New |
| 419,993 |
| 4 |
|
TAJIMA |
| 5,400,649 |
| 328 |
| Total |
| 7,881,584 |
| 398 |
| MHM Demo |
| 181,185 |
| 7 |
|
GEMFIX |
| 73,339 |
| 4 |
|
|
|
|
|
|
| MHM New |
| 986,469 |
| 24 |
|
|
|
|
|
|
|
|
|
|
|
|
| MIMAKI Demo |
| 235,158 |
| 14 |
|
Total |
| 7,881,584 |
| 398 |
|
|
|
|
|
|
| SEIT Demo |
| 84,008 |
| 1 |
|
|
|
|
|
|
|
|
|
|
|
|
| SEIT New |
| 73,130 |
| 1 |
|
|
|
|
|
|
|
|
|
|
|
|
| TAJIMA Demo |
| 1,089,364 |
| 93 |
|
|
|
|
|
|
|
|
|
|
|
|
| TAJIMA New |
| 4,153,038 |
| 226 |
|
|
|
|
|
|
|
|
|
|
|
|
| TAJIMA Used |
| 158,247 |
| 9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
| 7,881,584 |
| 398 |
|
Parts/Supplies/Accessories
KORNIT |
| 82,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MHM |
| 166,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MIMAKI |
| 14,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEIT |
| 81,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAJIMA |
| 1,933,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GEMFIX |
| 0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total P/S/A |
| 2,278,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Inventory |
| 10,160,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aging
Machines
|
| New |
| Demo |
| Used |
| Total |
| % of Total |
|
|
|
|
|
|
|
0 - 3 months |
| 3,128,749 |
| 835,367 |
| 76,218 |
| 4,040,334 |
| 51.26 | % |
|
|
|
|
|
|
>3 - 6 months |
| 356,444 |
| 205,979 |
| 0 |
| 562,423 |
| 7.14 | % |
|
|
|
|
|
|
>6 - 9 months |
| 577,378 |
| 296,688 |
| 0 |
| 874,067 |
| 11.09 | % |
|
|
|
|
|
|
>9 - 12 months |
| 1,204,629 |
| 300,539 |
| 0 |
| 1,505,168 |
| 19.10 | % |
|
|
|
|
|
|
>1 - 2 years |
| 326,337 |
| 312,327 |
| 0 |
| 638,664 |
| 8.10 | % |
|
|
|
|
|
|
>2 - 3 years |
| 75,762 |
| 94,477 |
| 69,337 |
| 239,576 |
| 3.04 | % |
|
|
|
|
|
|
> 3 years |
| 0 |
| 8,659 |
| 12,692 |
| 21,352 |
| 0.27 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Machines |
| 5,669,298 |
| 2,054,038 |
| 158,247 |
| 7,881,584 |
|
|
|
|
|
|
|
|
|
Parts/Supplies/Accessories |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| All |
| % of Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
0 - 3 months |
| 625,695 |
| 30.26 | % |
|
|
|
|
|
|
|
|
|
|
|
|
>3 - 6 months |
|
|
| 10.23 | % |
|
|
|
|
|
|
|
|
|
|
|
|
>6 - 9 months |
| 169,143 |
| 8.18 | % |
|
|
|
|
|
|
|
|
|
|
|
|
>9 - 12 months |
| 108,838 |
| 5.26 | % |
|
|
|
|
|
|
|
|
|
|
|
|
>1 year |
| 1,163,853 |
| 56.29 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Parts |
| 2,067,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 211,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Inventory |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 - 3 months |
| 4,666,029 |
| 45.92 | % |
|
|
|
|
|
|
|
|
|
|
|
|
>3 - 6 months |
| 773,888 |
| 7.62 | % |
|
|
|
|
|
|
|
|
|
|
|
|
>6 - 9 months |
| 1,043,210 |
| 10.27 | % |
|
|
|
|
|
|
|
|
|
|
|
|
>9 - 12 months |
| 1,614,006 |
| 15.88 | % |
|
|
|
|
|
|
|
|
|
|
|
|
>1 year |
| 2,063,444 |
| 20.31 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Inventory |
| 10,160,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepared by CTG |
| Personal Confidential |
| 2/12/200911:23 AM |
Hirsch International Corporation
Inventory Summary
Low to High Case Inventory Recovery (on cost)
|
|
|
|
|
|
|
|
|
| On Order |
| Total |
|
|
| New Product |
| Demo Product |
| Used Product |
| Parts Inventory |
| Inventory |
| Inventory @ Cost |
|
Assumed Gross |
| 5,669,298 |
| 2,054,038 |
| 158,247 |
| 2,067,529 |
| 1,963,143 |
| 11,912,256 |
|
Low Recovery Rates % |
| 90 | % | 85 | % | 75 | % | 5 | % | 85 | % | 73.4 | % |
Low Recovery Dollars |
| 5,102,369 |
| 1,745,932 |
| 118,685 |
| 103,376 |
| 1,668,672 |
| 8,739,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Recovery Rates % |
| 100 | % | 90 | % | 80 | % | 10 | % | 95 | % | 81.6 | % |
Mid Recovery Dollars |
| 5,669,298 |
| 1,848,634 |
| 126,598 |
| 206,753 |
| 1,864,986 |
| 9,716,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High Recovery Rates % |
| 110 | % | 95 | % | 85 | % | 15 | % | 100 | % | 88.9 | % |
High Recovery Dollars |
| 6,236,228 |
| 1,951,336 |
| 134,510 |
| 310,129 |
| 1,963,143 |
| 10,595,347 |
|
Clear Thinking Group LLC has relied on information provided by Hirsch International Corporation and its officers.
Clear Thinking Group LLC has not audited any of the information provided to us.
Prepared by CTG |
| Personal Confidential |
| 2/12/200911:23 AM |
Hirsch International Corporation
On Order Summary
Vendor |
| Amount |
|
Tajima America Corp |
| 132,049.92 |
|
Madeira Usa Ltd. |
| 6,206.95 |
|
Allied International |
| 5,587.80 |
|
Superior Sewing Mach And Suppl |
| 796.50 |
|
Dell Marketing L.P. Taxable |
| 25,015.00 |
|
Allen Machine Products, Inc |
| 72,609.95 |
|
Pulse Microsystems |
| 8,425.00 |
|
Ems/Hoop-Tec |
| 3,677.98 |
|
G S Machine And Tool Inc. |
| 7,700.00 |
|
Machine Solutions, Inc |
| 2,600.00 |
|
Mhm Siebdruckmaschinen Gmbh |
| 5,444.80 |
|
Action Engineering |
| 6,223.30 |
|
Stonehurst Industries Inc. |
| 16,775.40 |
|
Mhm North America |
| — |
|
Global Caster Corp. |
| 2,987.50 |
|
Seit Elettronica S.R.L. |
| 245,629.05 |
|
Adelco |
| 16.54 |
|
Kornit Digital Ltd. |
| 3,006.86 |
|
Stahls Hotronix |
| 1,053.75 |
|
Anderson Thermal Devices, Inc. |
| 350.00 |
|
Mimaki Usa, Inc. |
| 1,414,256.00 |
|
Mimaki USA |
| 106.00 |
|
Research In Motion Corporation |
| 2,625.00 |
|
|
|
|
|
|
| 1,963,143.30 |
|
Clear Thinking Group LLC has relied on information provided by Hirsch International Corporation and its officers.
Clear Thinking Group LLC has not audited any of the information provided to us.
Prepared by CTG |
| Personal Confidential |
| 2/12/200911:23 AM |
Hirsch International Corporation
FF&E Summary
|
| Original |
|
|
| Current |
|
|
| Recovery Values % of Book |
| Recovery $ |
| ||||||||
|
| Value |
| Acc Deprec. |
| Book Value |
| Comment |
| Low |
| Mid |
| High |
| Low |
| Mid |
| High |
|
Machinery & Equipment |
| 1,161,388 |
| (921,728 | ) | 239,660 |
| Primarily Dell Computers |
| 40 | % | 50 | % | 60 | % | 95,864 |
| 119,830 |
| 143,796 |
|
Furniture & Fixtures |
| 354,214 |
| (319,398 | ) | 34,816 |
|
|
| 5 | % | 10 | % | 15 | % | 1,741 |
| 3,482 |
| 5,222 |
|
Leasehold Improvements |
| 191,832 |
| (95,512 | ) | 96,320 |
|
|
| 0 |
| 0 |
| 0 |
| — |
| — |
| — |
|
Computer Upgrade |
| 1,635,879 |
| (647,225 | ) | 988,654 |
| Primarily Computer Software/Software Licenses |
| 0 |
| 0 |
| 0 |
| — |
| — |
| — |
|
Website Development |
| 294,394 |
| (98,146 | ) | 196,248 |
|
|
| 0 |
| 0 |
| 0 |
| — |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fixed Assets |
| 3,637,707 |
| (2,082,009 | ) | 1,555,698 |
| Ties to Dec 31, 2008 Balance Sheet |
|
|
|
|
|
|
| 97,605 |
| 123,312 |
| 149,018 |
|
|
|
|
|
|
|
|
|
|
| Blended Recovery Rate |
|
|
| 6.3 | % | 7.9 | % | 9.6 | % | ||
Clear Thinking Group LLC has relied on information provided by Hirsch International Corporation and its officers.
Clear Thinking Group LLC has not audited any of the information provided to us.
Prepared by CTG |
| Personal Confidential |
| 2/12/200911:23 AM |
Hirsch International Corporation
Real Estate Lease Liability
|
|
|
|
|
|
|
| Remaining |
|
|
|
|
|
Location |
|
|
| Date of Lease |
| Monthly |
| Months of |
| Lease |
|
|
|
City |
| State |
| Expiraton |
| Cost |
| Lease Term |
| Liability |
| Comments |
|
Birmingham |
| Al |
| 3/31/2010 |
| 605 |
| 9 |
| 5,445 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AZ |
| 11/30/2009 |
| 1,700 |
| 5 |
| 8,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AR |
| 6/30/2008 |
| 675 |
| 0 |
| 0 |
| Assumes month to month basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rancho Cordova |
| CA |
| 8/31/2009 |
| 650 |
| 2 |
| 1,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Santa Ana |
| CA |
| 2/7/2011 |
| 2,739 |
| 8 |
| 21,912 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2,839 |
| 12 |
| 34,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denver |
| CO |
| 11/30/2009 |
| 750 |
| 5 |
| 3,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fort Lauderdale |
| FL |
| 3/31/2009 |
| 1,751 |
| 0 |
| 0 |
| Assumes month to month basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tyrone |
| GA |
| 12/31/2010 |
| 3,347 |
| 18 |
| 60,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Niles |
| IL |
| 3/30/2011 |
| 2,106 |
| 9 |
| 18,954 |
|
|
|
|
|
|
|
|
| 2,170 |
| 12 |
| 26,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Braintree |
| MA |
| 11/30/2008 |
| 640 |
| 0 |
| 0 |
| Assumes month to month basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| MN |
| 1/1/2008 |
| 700 |
| 0 |
| 0 |
| Assumes month to month basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
St. Charles |
| MO |
| 8/31/2008 |
| 785 |
| 0 |
| 0 |
| Assumes month to month basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hauppauge |
| NY |
| 8/31/2011 |
| 14,697 |
| 2 |
| 29,394 |
|
|
|
|
|
|
|
|
| 15,211 |
| 12 |
| 182,532 |
|
|
|
|
|
|
|
|
| 15,744 |
| 12 |
| 188,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NC |
| 5/14/2010 |
| 4,813 |
| 11 |
| 52,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cincinnati |
| OH |
| 1/31/2009 |
| 680 |
| 0 |
| 0 |
| Assumes month to month basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Solon |
| OH |
| 2/28/2011 |
| 3,500 |
| 20 |
| 70,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bridgeville |
| PA |
| 1/21/2007 |
| 690 |
| 0 |
| 0 |
| Assumes month to month basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harleysville |
| PA |
| 9/30/2009 |
| 2,250 |
| 3 |
| 6,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fort Worth |
| TX |
| 12/31/2009 |
| 1,700 |
| 6 |
| 10,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Houston |
| TX |
| 5/31/2009 |
| 850 |
| 0 |
| 0 |
| Assumes month to month basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ashland |
| VA |
| 7/31/2010 |
| 732 |
| 1 |
| 732 |
|
|
|
|
|
|
|
|
| 754 |
| 12 |
| 9,048 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tukwila |
| WA |
| 8/31/2008 |
| 1,313 |
| 0 |
| 0 |
| Assumes month to month basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
| 730,742 |
|
|
|
Clear Thinking Group LLC has relied on information provided by Hirsch International Corporation and its officers.
Clear Thinking Group LLC has not audited any of the information provided to us.
Prepared by CTG |
| Personal Confidential |
| 2/12/200911:23 AM |
Hirsch International Corporation
Misc. Leases and Contracts
Lease Liability
|
| Type |
| Lease |
| Monthly |
| # of months |
| Estimated |
|
Leasing Company |
| of Contract |
| Term. Date |
| Payment |
| remaining |
| Liability |
|
|
|
|
|
|
|
|
|
|
|
|
|
Porsche Payment Center |
| Auto lease |
| 2/8/2010 |
| 1,690 |
| 8 |
| 13,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pitney Bowes |
| Copier lease |
| 6/1/2008 |
| 2,174 |
| 0 |
| 0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pitney Bowes |
| Copier Lease |
| 5/20/2007 |
| 2,124 |
| 0 |
| 0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CIT Leasing |
| Equipment Lease |
| 10/2/2009 |
| 88 |
| 4 |
| 352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulse Microsystems |
| Pulse Sales Agreement |
| 10/31/2008 |
| 100,000 |
| 0 |
| 0 |
|
|
|
|
|
|
|
|
| Total |
| 13,872 |
|
*Assumes 6/30/09 termination date
Clear Thinking Group LLC has relied on information provided by Hirsch International Corporation and its officers.
Clear Thinking Group LLC has not audited any of the information provided to us.
Prepared by CTG |
| Personal Confidential |
| 2/12/200911:23 AM |
Hirsch International Corporation
Wind Down Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
Net Sales |
|
|
| Run Rate |
| March |
| April |
| May |
| June |
| July |
| Mar-Jul |
| Assumptions |
Total Net Sales |
|
|
|
|
| 3,000,000 |
| 3,500,000 |
| 2,200,000 |
| 1,000,000 |
| 0 |
| 9,700,000 |
| Mid- case recovery on inventory Assumes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| sales taxes on new sales are collected and paid out as normal; but sales taxes are not listed as part of cash collected or listed as a wind down expense. (in and out) |
Salaries |
|
|
|
|
| 422,395 |
| 422,395 |
| 220,198 |
| 168,958 |
| 100,000 |
| 1,333,946 |
| Salaries run-off as inventory is sold off per schedule below |
Commissions |
| 5.00 | % |
|
| 150,000 |
| 175,000 |
| 110,000 |
| 50,000 |
|
|
| 485,000 |
| Commissions @ 5% |
Severance |
|
|
|
|
| 0 |
| 0 |
| 294,953 |
| 196,636 |
| 635,397 |
| 1,126,986 |
| Per the company policy of 1 week per year of service with exception of the 3 employment contracts |
Payroll Taxes |
| 0.126 |
|
|
| 71,836 |
| 74,973 |
| 78,457 |
| 52,157 |
| 92,292 |
| 369,715 |
| As per company current records. |
Hospitalization |
|
|
|
|
| 49,000 |
| 49,000 |
| 29,400 |
| 19,600 |
| 9,800 |
| 156,800 |
| Used same % as salary run-off |
Contract Labor |
|
|
|
|
| 2,000 |
| 2,000 |
|
|
|
|
|
|
| 4,000 |
|
|
Software Support |
|
|
|
|
| 15,000 |
| 15,000 |
| 15,000 |
| 15,000 |
|
|
| 60,000 |
| per current run rate |
Employment Costs |
|
|
|
|
| 2,000 |
| 2,000 |
| 1,200 |
| 800 |
|
|
| 6,000 |
|
|
Insurance |
|
|
|
|
| 40,500 |
| 40,500 |
| 24,300 |
| 16,200 |
| 4,050 |
| 125,550 |
| per current run rate |
Utilities |
|
|
| 8,000 |
| 10,000 |
| 8,000 |
| 4,800 |
| 3,200 |
| 800 |
| 26,800 |
| per current run rate, run off as offices close |
Rent |
|
|
| 53,797 |
| 53,797 |
| 53,797 |
| 53,797 |
| 53,797 |
| 53,797 |
| 268,983 |
| per current run rate, run off as offices close |
Telephone |
|
|
|
|
| 34,000 |
| 34,000 |
| 20,400 |
| 13,600 |
| 3,300 |
| 105,300 |
| per current run rate, run off as offices close |
Repairs & Maintenance |
|
|
|
|
| 4,000 |
| 4,000 |
| 2,400 |
| 1,600 |
| 400 |
| 12,400 |
|
|
Protection & Security |
|
|
|
|
| 300 |
| 300 |
| 180 |
| 120 |
| 30 |
| 930 |
|
|
Postage, & Office Supplies |
|
|
|
|
| 17,000 |
| 17,000 |
| 10,200 |
| 6,800 |
| 500 |
| 51,500 |
| per current run rate, run off as offices close |
Computer |
|
|
|
|
| 10,000 |
| 10,000 |
| 6,000 |
| 4,000 |
|
|
| 30,000 |
| per current run rate, run off as offices close |
Professional Fees |
|
|
|
|
| 48,000 |
| 48,000 |
| 48,000 |
| 48,000 |
| 48,000 |
| 240,000 |
| Assume normal course professional fees |
Advertising |
| 3.5 |
| 22,000 |
| 77,000 |
| 77,000 |
| 22,000 |
| 0 |
| 0 |
| 176,000 |
| Increased advertising for March & April by $66k |
T&E |
|
|
|
|
| 79,500 |
| 79,500 |
| 47,700 |
| 15,900 |
|
|
| 222,600 |
| per current run rate, run off as offices close |
Auto Expense |
|
|
|
|
| 59,833 |
| 59,833 |
| 35,900 |
| 11,967 |
|
|
| 167,532 |
| per current run rate, run off as offices close |
Trade Shows |
|
|
|
|
| 59,635 |
| 0 |
| 0 |
| 0 |
| 0 |
| 59,635 |
| Included March trade show, but nothing after 4/1 |
Seminars |
|
|
|
|
| 1,000 |
| 1,000 |
| 0 |
| 0 |
| 0 |
| 2,000 |
| per current run rate, run off as offices close |
Education & Training |
|
|
|
|
| 5,500 |
| 4,000 |
| 0 |
| 0 |
| 0 |
| 9,500 |
| per current run rate, run off as offices close |
Dues & Subs |
|
|
|
|
| 2,500 |
| 2,500 |
| 0 |
| 0 |
| 0 |
| 5,000 |
| per current run rate, run off as offices close |
Manufacturing/Service |
|
|
|
|
| 4,000 |
| 4,000 |
| 2,400 |
| 1,600 |
| 0 |
| 12,000 |
| per current run rate, run off as offices close |
Freight Out |
|
|
|
|
| 5,000 |
| 5,000 |
| 3,000 |
| 2,000 |
| 0 |
| 15,000 |
| per current run rate, run off as offices close |
License Fees |
|
|
|
|
| 5,000 |
| 5,000 |
| 3,000 |
| 2,000 |
| 0 |
| 15,000 |
| per current run rate, run off as offices close |
Real Estate Taxes |
|
|
|
|
| 3,000 |
| 3,000 |
| 1,800 |
| 1,200 |
| 0 |
| 9,000 |
| per current run rate, run off as offices close |
Depreciation & Amortization |
|
|
|
|
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
|
|
Bad Debt |
|
|
|
|
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
|
|
Bank Charges |
|
|
|
|
| 19,000 |
| 19,000 |
| 19,000 |
| 19,000 |
| 0 |
| 76,000 |
|
|
Miscellaneous |
|
|
|
|
| (5,000 | ) | (5,000 | ) | (5,000 | ) | (5,000 | ) | 0 |
| (20,000 | ) |
|
Total S, G & A |
|
|
|
|
| 1,245,795 |
| 1,210,798 |
| 1,049,084 |
| 699,134 |
| 948,366 |
| 5,153,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (Income) Expense |
|
|
|
|
| (3,000 | ) | (3,000 | ) | (3,000 | ) | (3,000 | ) |
|
| (12,000 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Taxes |
|
|
|
|
| 1,000 |
| 1,000 |
| 1,000 |
| 1,000 |
| 1,000 |
| 5,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Expenses |
|
|
|
|
| 1,243,795 |
| 1,208,798 |
| 1,047,084 |
| 697,134 |
| 949,366 |
| 5,146,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salary rolloff |
|
|
|
|
| 1 |
| 1 |
| 0.6 |
| 0.4 |
| 0.2 |
|
|
|
|
T&E/Auto Exp |
|
|
|
|
| 1 |
| 1 |
| 0.6 |
| 0.2 |
|
|
|
|
|
|
General runnoff |
|
|
|
|
| 1 |
| 1 |
| 0.6 |
| 0.4 |
| 0.1 |
|
|
|
|
Clear Thinking Group LLC has relied on information provided by Hirsch International Corporation and its officers.
Clear Thinking Group LLC has not audited any of the information provided to us.
Prepared by CTG |
| Personal Confidential |
| 2/12/200911:23 AM |
Hirsch International Corporation
Accounts Payable and Accrued Expenses Payable
|
| Total Due |
| Accrued Purch |
| Current |
| 31-60 |
| 61-90 |
| 91-120 |
| Over 120 |
|
Accounts Payable Aging |
| 4,554,378 |
| 4,080,349 |
| (2,577,099 | ) | 252,550 |
| 193,088 |
| 347,955 |
| 2,257,535 |
|
Accrued Professional Fees (12/31/08) |
| 232,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued Warranty Costs (12/31/08) ** |
| 138,662 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued - Other (12/31/08) |
| 138,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Taxes Payable |
| 71,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total AP/AEP |
| 5,135,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
** - - Uses 1 year of the 5 year accrual
Clear Thinking Group LLC has relied on information provided by Hirsch International Corporation and its officers.
Clear Thinking Group LLC has not audited any of the information provided to us.
Prepared by CTG |
| Personal Confidential |
| 2/12/200911:23 AM |
Hirsch International Corporation
Severance Summary
Annual Salary |
| Acctg |
| 388,502 |
|
|
| Admin |
| 902,116 |
|
|
| Warehouse |
| 207,600 |
|
|
| IT |
| 88,643 |
|
|
| Cust Service |
| 168,150 |
|
|
| Training |
| 194,969 |
|
|
| Service |
| 1,563,188 |
|
|
| Sales |
| 1,555,571 |
|
|
|
|
|
|
|
Total Annual Salary |
|
|
| 5,068,739 |
|
|
|
|
|
|
|
Total Severance ** |
|
|
| 1,126,986 |
|
** - Severance based on 1 week per year or any severance letter in place
Prepared by CTG |
| Personal Confidential |
| 2/12/200911:23 AM |
Hirsch International Corporation
Preliminary Balance Sheet
31-Dec-08
Assets |
|
|
| |
|
|
|
| |
Current Assets |
|
|
| |
Cash & Cash Equivalents |
| $ | 4,736,937 |
|
Accounts Receivable -Net |
| $ | 3,953,532 |
|
Inventories, Net |
| $ | 8,219,807 |
|
Other Current Assets |
| $ | 221,857 |
|
Total Current Assets |
| $ | 17,132,133 |
|
|
|
|
| |
Property Plant & Equipment |
| $ | 1,555,700 |
|
Other Assets, Net |
| $ | 2,380,748 |
|
Total Assets |
| $ | 21,068,581 |
|
|
|
|
| |
Liabilities & Stockholders’ Equity |
|
|
| |
|
|
|
| |
Current Liabilities |
|
|
| |
Accounts Payable & Accrued Expenses |
| $ | 5,403,081 |
|
Income Taxes Payable |
| $ | 23,488 |
|
Total Current Liabilities |
| $ | 5,426,569 |
|
|
|
|
| |
Total Liabilities |
| $ | 5,426,569 |
|
|
|
|
| |
Stockholder’s Equity |
|
|
| |
Class A Common Stock |
| $ | 102,160 |
|
Class B Common Stock |
| $ | 4,249 |
|
Additional Paid In Capital |
| $ | 43,392,492 |
|
|
|
|
| |
Retained Earnings Beginning of the Year |
| $ | (21,534,312 | ) |
Current Year Profit/(Loss) |
| $ | (4,325,973 | ) |
Dividends |
|
|
| |
Retained Earnings Beginning of the Year |
| $ | (25,860,285 | ) |
|
|
|
| |
Treasury Stock |
| $ | (1,996,604 | ) |
|
|
|
| |
Total Stockholder’s Equity |
| $ | 15,642,012 |
|
|
|
|
| |
Total Liabilities & Stockholder’s Equity |
| $ | 21,068,581 |
|
Clear Thinking Group LLC has relied on information provided by Hirsch International Corporation and its officers. Clear Thinking Group LLC has not audited any of the information provided to us.
Prepared by CTG |
| Personal Confidential |
| 2/12/200911:23 AM |
Hirsch International Corporation
Forecast 2009
CONSOLIDATED 2009 Forecast
|
|
|
|
|
|
|
| Total |
|
|
|
|
|
|
| Total |
|
|
|
|
|
|
| Total |
|
|
|
|
|
|
| Total |
| Total |
|
Net Sales |
| January |
| February |
| March |
| 1st Qtr |
| April |
| May |
| June |
| 2nd Qtr |
| July |
| August |
| September |
| 3rd Qtr |
| October |
| November |
| December |
| 4th Qtr |
| Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tajima New Machines |
| 1,300,000 |
| 1,600,000 |
| 1,600,000 |
| 4,500,000 |
| 1,600,000 |
| 1,600,000 |
| 1,600,000 |
| 4,800,000 |
| 1,700,000 |
| 1,700,000 |
| 1,700,000 |
| 5,100,000 |
| 1,700,000 |
| 1,700,000 |
| 1,600,000 |
| 5,000,000 |
| 19,400,000 |
|
SEIT Laser Machines |
| 190,000 |
| 190,000 |
| 190,000 |
| 570,000 |
| 0 |
| 190,000 |
| 190,000 |
| 380,000 |
| 190,000 |
| 190,000 |
| 190,000 |
| 570,000 |
| 190,000 |
| 200,000 |
| 190,000 |
| 580,000 |
| 2,100,000 |
|
Tajima Used Machines |
| 0 |
| 50,000 |
| 50,000 |
| 100,000 |
| 50,000 |
| 50,000 |
| 50,000 |
| 150,000 |
| 75,000 |
| 50,000 |
| 50,000 |
| 175,000 |
| 50,000 |
| 50,000 |
| 50,000 |
| 150,000 |
| 575,000 |
|
Software |
| 150,000 |
| 150,000 |
| 150,000 |
| 450,000 |
| 150,000 |
| 150,000 |
| 150,000 |
| 450,000 |
| 150,000 |
| 175,000 |
| 175,000 |
| 500,000 |
| 200,000 |
| 200,000 |
| 200,000 |
| 600,000 |
| 2,000,000 |
|
Part/Supplies/Acces/ Sales |
| 100,000 |
| 200,000 |
| 250,000 |
| 550,000 |
| 250,000 |
| 250,000 |
| 250,000 |
| 750,000 |
| 250,000 |
| 250,000 |
| 300,000 |
| 800,000 |
| 300,000 |
| 250,000 |
| 250,000 |
| 800,000 |
| 2,900,000 |
|
Service Revenue |
| 60,000 |
| 60,000 |
| 60,000 |
| 180,000 |
| 60,000 |
| 60,000 |
| 60,000 |
| 180,000 |
| 70,000 |
| 70,000 |
| 70,000 |
| 210,000 |
| 70,000 |
| 70,000 |
| 70,000 |
| 210,000 |
| 780,000 |
|
Freight Revenue |
| 50,000 |
| 50,000 |
| 50,000 |
| 150,000 |
| 50,000 |
| 75,000 |
| 75,000 |
| 200,000 |
| 50,000 |
| 50,000 |
| 65,000 |
| 165,000 |
| 80,000 |
| 75,000 |
| 75,000 |
| 230,000 |
| 745,000 |
|
Digital |
| 75,167 |
| 225,167 |
| 155,167 |
| 455,500 |
| 381,167 |
| 231,167 |
| 461,167 |
| 1,073,500 |
| 231,167 |
| 381,167 |
| 311,167 |
| 923,500 |
| 461,167 |
| 381,167 |
| 311,167 |
| 1,153,500 |
| 3,606,000 |
|
MHM Revenue |
| 100,000 |
| 100,000 |
| 100,000 |
| 300,000 |
| 200,000 |
| 200,000 |
| 300,000 |
| 700,000 |
| 400,000 |
| 400,000 |
| 400,000 |
| 1,200,000 |
| 400,000 |
| 400,000 |
| 400,000 |
| 1,200,000 |
| 3,400,000 |
|
Total |
| 2,025,167 |
| 2,625,167 |
| 2,605,167 |
| 7,255,500 |
| 2,741,167 |
| 2,806,167 |
| 3,136,167 |
| 8,683,500 |
| 3,116,167 |
| 3,266,167 |
| 3,261,167 |
| 9,643,500 |
| 3,451,167 |
| 3,326,167 |
| 3,146,167 |
| 9,923,500 |
| 35,506,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tajima New Machines |
| 27.00 | % | 27.00 | % | 27.00 | % | 27.00 | % | 27.00 | % | 27.00 | % | 27.00 | % | 27.00 | % | 27.00 | % | 27.00 | % | 27.00 | % | 27.00 | % | 27.00 | % | 27.00 | % | 27.00 | % | 27.00 | % | 27.00 | % |
SEIT Laser Machines |
| 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % | #DIV/0! |
| 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % |
Tajima Used Machines |
| #DIV/0! |
| 10.00 | % | 10.00 | % | 10.00 | % | 10.00 | % | 10.00 | % | 10.00 | % | 10.00 | % | 10.00 | % | 10.00 | % | 10.00 | % | 10.00 | % | 10.00 | % | 10.00 | % | 10.00 | % | 10.00 | % | 10.00 | % |
software |
| 50.00 | % | 50.00 | % | 50.00 | % | 50.00 | % | 50.00 | % | 50.00 | % | 50.00 | % | 50.00 | % | 50.00 | % | 50.00 | % | 50.00 | % | 50.00 | % | 50.00 | % | 50.00 | % | 50.00 | % | 50.00 | % | 50.00 | % |
Part/Supplies/Acces/ Sales |
| 26.00 | % | 26.00 | % | 26.00 | % | 26.00 | % | 26.00 | % | 26.00 | % | 26.00 | % | 26.00 | % | 26.00 | % | 26.00 | % | 26.00 | % | 26.00 | % | 26.00 | % | 26.00 | % | 26.00 | % | 26.00 | % | 26.00 | % |
Service |
| 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % |
Freight |
| 12.00 | % | 12.00 | % | 12.00 | % | 12.00 | % | 12.00 | % | 12.00 | % | 12.00 | % | 12.00 | % | 12.00 | % | 12.00 | % | 12.00 | % | 12.00 | % | 12.00 | % | 12.00 | % | 12.00 | % | 12.00 | % | 12.00 | % |
Digital |
| 24.00 | % | 18.00 | % | 19.36 | % | 19.46 | % | 20.46 | % | 24.00 | % | 19.51 | % | 20.81 | % | 24.00 | % | 20.46 | % | 21.69 | % | 21.76 | % | 19.51 | % | 20.46 | % | 21.69 | % | 20.41 | % | 20.76 | % |
MHM |
| 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % | 30.00 | % | 33.03 | % | 28.75 | % | 30.00 | % | 30.59 | % | 30.21 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tajima New Machines |
| 351,000 |
| 432,000 |
| 432,000 |
| 1,215,000 |
| 432,000 |
| 432,000 |
| 432,000 |
| 1,296,000 |
| 459,000 |
| 459,000 |
| 459,000 |
| 1,377,000 |
| 459,000 |
| 459,000 |
| 432,000 |
| 1,350,000 |
| 5,238,000 |
|
SEIT Laser Machines |
| 57,000 |
| 57,000 |
| 57,000 |
| 171,000 |
| 0 |
| 57,000 |
| 57,000 |
| 114,000 |
| 57,000 |
| 57,000 |
| 57,000 |
| 171,000 |
| 57,000 |
| 60,000 |
| 57,000 |
| 174,000 |
| 630,000 |
|
Tajima Used Machines |
| 0 |
| 5,000 |
| 5,000 |
| 10,000 |
| 5,000 |
| 5,000 |
| 5,000 |
| 15,000 |
| 7,500 |
| 5,000 |
| 5,000 |
| 17,500 |
| 5,000 |
| 5,000 |
| 5,000 |
| 15,000 |
| 57,500 |
|
Software |
| 75,000 |
| 75,000 |
| 75,000 |
| 225,000 |
| 75,000 |
| 75,000 |
| 75,000 |
| 225,000 |
| 75,000 |
| 87,500 |
| 87,500 |
| 250,000 |
| 100,000 |
| 100,000 |
| 100,000 |
| 300,000 |
| 1,000,000 |
|
Part/Supplies/Acces/ Sales |
| 26,000 |
| 52,000 |
| 65,000 |
| 143,000 |
| 65,000 |
| 65,000 |
| 65,000 |
| 195,000 |
| 65,000 |
| 65,000 |
| 78,000 |
| 208,000 |
| 78,000 |
| 65,000 |
| 65,000 |
| 208,000 |
| 754,000 |
|
Service |
| 60,000 |
| 60,000 |
| 60,000 |
| 180,000 |
| 60,000 |
| 60,000 |
| 60,000 |
| 180,000 |
| 70,000 |
| 70,000 |
| 70,000 |
| 210,000 |
| 70,000 |
| 70,000 |
| 70,000 |
| 210,000 |
| 780,000 |
|
Freight |
| 6,000 |
| 6,000 |
| 6,000 |
| 18,000 |
| 6,000 |
| 9,000 |
| 9,000 |
| 24,000 |
| 6,000 |
| 6,000 |
| 7,800 |
| 19,800 |
| 9,600 |
| 9,000 |
| 9,000 |
| 27,600 |
| 89,400 |
|
Digital |
| 18,040 |
| 40,540 |
| 30,040 |
| 88,620 |
| 77,980 |
| 55,480 |
| 89,980 |
| 223,440 |
| 55,480 |
| 77,980 |
| 67,480 |
| 200,940 |
| 89,980 |
| 77,980 |
| 67,480 |
| 235,440 |
| 748,440 |
|
MHM |
| 30,000 |
| 30,000 |
| 30,000 |
| 90,000 |
| 60,000 |
| 60,000 |
| 90,000 |
| 210,000 |
| 120,000 |
| 120,000 |
| 120,000 |
| 360,000 |
| 132,104 |
| 114,981 |
| 120,000 |
| 367,085 |
| 1,027,085 |
|
Total |
| 623,040 |
| 757,540 |
| 760,040 |
| 2,140,620 |
| 780,980 |
| 818,480 |
| 882,980 |
| 2,482,440 |
| 914,980 |
| 947,480 |
| 951,780 |
| 2,814,240 |
| 1,000,684 |
| 960,961 |
| 925,480 |
| 2,887,125 |
| 10,324,425 |
|
|
| 30.8 | % | 28.9 | % | 29.2 | % | 29.5 | % | 28.5 | % | 29.2 | % | 28.2 | % | 28.6 | % | 29.4 | % | 29.0 | % | 29.2 | % | 29.2 | % | 29.0 | % | 28.9 | % | 29.4 | % | 29.1 | % | 29.1 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
| 400,627 |
| 400,627 |
| 400,627 |
| 1,201,881 |
| 400,627 |
| 400,627 |
| 400,627 |
| 1,201,881 |
| 400,627 |
| 400,627 |
| 400,627 |
| 1,201,881 |
| 400,627 |
| 400,627 |
| 400,627 |
| 1,201,881 |
| 4,807,523 |
|
Commissions |
| 59,879 |
| 77,129 |
| 76,879 |
| 213,888 |
| 79,329 |
| 82,029 |
| 90,279 |
| 251,638 |
| 90,329 |
| 94,079 |
| 94,279 |
| 278,688 |
| 99,229 |
| 95,879 |
| 90,829 |
| 285,938 |
| 1,030,150 |
|
Payroll Taxes |
| 58,778 |
| 58,965 |
| 55,696 |
| 173,440 |
| 38,542 |
| 38,720 |
| 39,463 |
| 116,725 |
| 33,257 |
| 33,594 |
| 33,568 |
| 100,419 |
| 33,986 |
| 33,715 |
| 33,336 |
| 101,037 |
| 491,621 |
|
Hospitalization |
| 49,000 |
| 49,000 |
| 49,000 |
| 147,000 |
| 49,000 |
| 49,000 |
| 49,000 |
| 147,000 |
| 49,000 |
| 49,000 |
| 49,750 |
| 147,750 |
| 49,300 |
| 48,868 |
| 49,000 |
| 147,168 |
| 588,918 |
|
Contract Labor |
| 2,000 |
| 2,000 |
| 2,000 |
| 6,000 |
| 2,000 |
| 3,000 |
| 3,000 |
| 8,000 |
| 3,000 |
| 3,000 |
| 3,000 |
| 9,000 |
| 3,000 |
| 3,000 |
| 3,000 |
| 9,000 |
| 32,000 |
|
Software Support |
| 15,000 |
| 15,000 |
| 15,000 |
| 45,000 |
| 15,000 |
| 15,000 |
| 15,000 |
| 45,000 |
| 12,000 |
| 12,000 |
| 12,000 |
| 36,000 |
| 12,000 |
| 12,000 |
| 12,000 |
| 36,000 |
| 162,000 |
|
Employment Costs |
| 1,000 |
| 1,000 |
| 2,000 |
| 4,000 |
| 2,000 |
| 2,000 |
| 2,000 |
| 6,000 |
| 2,000 |
| 2,000 |
| 2,000 |
| 6,000 |
| 2,000 |
| 2,000 |
| 2,000 |
| 6,000 |
| 22,000 |
|
Insurance |
| 40,500 |
| 40,500 |
| 40,500 |
| 121,500 |
| 40,500 |
| 40,500 |
| 40,500 |
| 121,500 |
| 40,500 |
| 40,500 |
| 40,500 |
| 121,500 |
| 40,500 |
| 40,500 |
| 40,500 |
| 121,500 |
| 486,000 |
|
Utilities |
| 10,000 |
| 10,000 |
| 10,000 |
| 30,000 |
| 8,000 |
| 8,000 |
| 8,000 |
| 24,000 |
| 8,000 |
| 8,000 |
| 8,000 |
| 24,000 |
| 10,000 |
| 10,000 |
| 10,000 |
| 30,000 |
| 108,000 |
|
Rent |
| 53,797 |
| 53,797 |
| 53,797 |
| 161,390 |
| 53,797 |
| 53,797 |
| 53,797 |
| 161,390 |
| 53,797 |
| 53,797 |
| 53,797 |
| 161,390 |
| 53,797 |
| 53,797 |
| 53,797 |
| 161,390 |
| 645,558 |
|
Telephone |
| 34,000 |
| 34,000 |
| 34,000 |
| 102,000 |
| 34,000 |
| 34,000 |
| 34,000 |
| 102,000 |
| 33,000 |
| 33,000 |
| 33,000 |
| 99,000 |
| 33,000 |
| 33,000 |
| 33,000 |
| 99,000 |
| 402,000 |
|
Repairs & Maintenance |
| 4,000 |
| 4,000 |
| 4,000 |
| 12,000 |
| 4,000 |
| 4,000 |
| 4,000 |
| 12,000 |
| 4,000 |
| 4,000 |
| 4,000 |
| 12,000 |
| 4,000 |
| 4,000 |
| 4,000 |
| 12,000 |
| 48,000 |
|
Protection & Security |
| 300 |
| 300 |
| 300 |
| 900 |
| 300 |
| 300 |
| 300 |
| 900 |
| 300 |
| 300 |
| 300 |
| 900 |
| 300 |
| 300 |
| 300 |
| 900 |
| 3,600 |
|
Postage, & Office Supplies |
| 17,000 |
| 17,000 |
| 17,000 |
| 51,000 |
| 17,000 |
| 17,000 |
| 17,000 |
| 51,000 |
| 17,000 |
| 17,000 |
| 17,064 |
| 51,064 |
| 17,120 |
| 17,000 |
| 17,123 |
| 51,243 |
| 204,307 |
|
Computer |
| 10,000 |
| 10,000 |
| 10,000 |
| 30,000 |
| 10,000 |
| 10,000 |
| 10,000 |
| 30,000 |
| 10,000 |
| 10,000 |
| 10,000 |
| 30,000 |
| 10,000 |
| 10,000 |
| 15,000 |
| 35,000 |
| 125,000 |
|
Professional Fees |
| 48,000 |
| 48,000 |
| 48,000 |
| 144,000 |
| 48,000 |
| 48,000 |
| 48,000 |
| 144,000 |
| 48,000 |
| 48,000 |
| 48,000 |
| 144,000 |
| 48,000 |
| 48,000 |
| 48,000 |
| 144,000 |
| 576,000 |
|
Advertising |
| 22,000 |
| 22,000 |
| 22,000 |
| 66,000 |
| 22,000 |
| 22,000 |
| 22,000 |
| 66,000 |
| 22,000 |
| 22,000 |
| 22,000 |
| 66,000 |
| 22,000 |
| 22,000 |
| 22,000 |
| 66,000 |
| 264,000 |
|
T&E |
| 79,500 |
| 79,500 |
| 79,500 |
| 238,500 |
| 79,500 |
| 79,500 |
| 79,500 |
| 238,500 |
| 79,500 |
| 79,500 |
| 79,500 |
| 238,500 |
| 79,500 |
| 79,500 |
| 79,500 |
| 238,500 |
| 954,000 |
|
Hirsch International Corporation
Forecast 2009
Prepared by CTG |
| Personal Confidential |
| 2/12/200911:23 AM |
CONSOLIDATED 2009 Forecast
Auto Expense |
| 59,833 |
| 59,833 |
| 59,833 |
| 179,500 |
| 59,833 |
| 59,833 |
| 59,833 |
| 179,500 |
| 59,833 |
| 59,833 |
| 59,833 |
| 179,500 |
| 59,833 |
| 59,833 |
| 59,833 |
| 179,500 |
| 718,000 |
|
Trade Shows |
| 59,910 |
| 38,080 |
| 59,635 |
| 157,625 |
| 17,720 |
| 16,135 |
| 14,000 |
| 47,855 |
| 28,335 |
| 29,555 |
| 34,695 |
| 92,585 |
| 70,890 |
| 9,350 |
| 910 |
| 81,150 |
| 379,215 |
|
Seminars |
| 1,000 |
| 1,000 |
| 1,000 |
| 3,000 |
| 1,000 |
| 1,000 |
| 1,000 |
| 3,000 |
| 1,000 |
| 1,000 |
| 1,000 |
| 3,000 |
| 1,000 |
| 1,000 |
| 1,000 |
| 3,000 |
| 12,000 |
|
Education & Training |
| 4,000 |
| 5,000 |
| 5,500 |
| 14,500 |
| 4,000 |
| 5,000 |
| 5,500 |
| 14,500 |
| 4,000 |
| 5,000 |
| 5,500 |
| 14,500 |
| 4,000 |
| 5,000 |
| 5,500 |
| 14,500 |
| 58,000 |
|
Dues & Subs |
| 2,500 |
| 2,500 |
| 2,500 |
| 7,500 |
| 2,500 |
| 2,500 |
| 2,500 |
| 7,500 |
| 2,500 |
| 2,500 |
| 2,500 |
| 7,500 |
| 2,500 |
| 2,500 |
| 2,500 |
| 7,500 |
| 30,000 |
|
Manufacturing/Service |
| 4,000 |
| 4,000 |
| 4,000 |
| 12,000 |
| 4,000 |
| 4,000 |
| 4,000 |
| 12,000 |
| 4,000 |
| 4,000 |
| 4,000 |
| 12,000 |
| 4,000 |
| 4,000 |
| 4,000 |
| 12,000 |
| 48,000 |
|
Freight Out |
| 5,000 |
| 5,000 |
| 5,000 |
| 15,000 |
| 5,000 |
| 5,000 |
| 5,000 |
| 15,000 |
| 5,000 |
| 5,000 |
| 5,000 |
| 15,000 |
| 5,000 |
| 5,000 |
| 5,000 |
| 15,000 |
| 60,000 |
|
License Fees |
| 5,000 |
| 5,000 |
| 5,000 |
| 15,000 |
| 5,000 |
| 5,000 |
| 5,000 |
| 15,000 |
| 5,000 |
| 5,000 |
| 5,000 |
| 15,000 |
| 5,000 |
| 5,000 |
| 5,000 |
| 15,000 |
| 60,000 |
|
Real Estate Taxes |
| 3,000 |
| 3,000 |
| 3,000 |
| 9,000 |
| 3,000 |
| 3,000 |
| 3,000 |
| 9,000 |
| 3,000 |
| 3,000 |
| 3,000 |
| 9,000 |
| 3,000 |
| 3,000 |
| 3,000 |
| 9,000 |
| 36,000 |
|
Depreciation & Amortization |
| 38,000 |
| 38,000 |
| 38,000 |
| 114,000 |
| 38,000 |
| 38,000 |
| 38,000 |
| 114,000 |
| 38,000 |
| 38,000 |
| 38,000 |
| 114,000 |
| 38,000 |
| 38,000 |
| 38,000 |
| 114,000 |
| 456,000 |
|
Bad Debt |
| 5,000 |
| 5,000 |
| 5,000 |
| 15,000 |
| 5,000 |
| 5,000 |
| 5,000 |
| 15,000 |
| 5,000 |
| 5,000 |
| 5,000 |
| 15,000 |
| 5,000 |
| 5,000 |
| 5,000 |
| 15,000 |
| 60,000 |
|
Bank Charges |
| 19,000 |
| 19,000 |
| 19,000 |
| 57,000 |
| 19,000 |
| 19,000 |
| 19,000 |
| 57,000 |
| 19,000 |
| 19,000 |
| 19,000 |
| 57,000 |
| 19,000 |
| 19,000 |
| 19,000 |
| 57,000 |
| 228,000 |
|
Miscellaneous |
| (5,000 | ) | (5,000 | ) | (5,000 | ) | (15,000 | ) | (5,000 | ) | (5,000 | ) | (5,000 | ) | (15,000 | ) | (5,000 | ) | (5,000 | ) | (5,000 | ) | (15,000 | ) | (5,027 | ) | (5,082 | ) | (5,000 | ) | (15,109 | ) | (60,109 | ) |
Total S, G & A |
| 1,106,624 |
| 1,103,231 |
| 1,122,767 |
| 3,332,623 |
| 1,062,648 |
| 1,065,941 |
| 1,073,299 |
| 3,201,888 |
| 1,075,978 |
| 1,082,285 |
| 1,088,913 |
| 3,247,176 |
| 1,130,554 |
| 1,065,787 |
| 1,057,755 |
| 3,254,097 |
| 13,035,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (loss) |
| (483,584 | ) | (345,691 | ) | (362,727 | ) | (1,192,003 | ) | (281,668 | ) | (247,461 | ) | (190,319 | ) | (719,448 | ) | (160,998 | ) | (134,805 | ) | (137,133 | ) | (432,936 | ) | (129,870 | ) | (104,826 | ) | (132,275 | ) | (366,972 | ) | (2,711,358 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (Income) Expense |
| (3,000 | ) | (3,000 | ) | (3,000 | ) | (9,000 | ) | (3,000 | ) | (3,000 | ) | (3,000 | ) | (9,000 | ) | (3,000 | ) | (3,000 | ) | (3,000 | ) | (9,000 | ) | (3,000 | ) | (3,000 | ) | (3,000 | ) | (9,000 | ) | (36,000 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) b/f taxes |
| (480,584 | ) | (342,691 | ) | (359,727 | ) | (1,183,003 | ) | (278,668 | ) | (244,461 | ) | (187,319 | ) | (710,448 | ) | (157,998 | ) | (131,805 | ) | (134,133 | ) | (423,936 | ) | (126,870 | ) | (101,826 | ) | (129,275 | ) | (357,972 | ) | (2,675,358 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Taxes |
| 1,000 |
| 1,000 |
| 1,000 |
| 3,000 |
| 1,000 |
| 1,000 |
| 1,000 |
| 3,000 |
| 1,000 |
| 1,000 |
| 1,000 |
| 3,000 |
| 1,000 |
| 1,000 |
| 1,000 |
| 3,000 |
| 12,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss) |
| (481,584 | ) | (343,691 | ) | (360,727 | ) | (1,186,003 | ) | (279,668 | ) | (245,461 | ) | (188,319 | ) | (713,448 | ) | (158,998 | ) | (132,805 | ) | (135,133 | ) | (426,936 | ) | (127,870 | ) | (102,826 | ) | (130,275 | ) | (360,972 | ) | (2,687,358 | ) |
Clear Thinking Group LLC has relied on information provided by Hirsch International Corporation and its officers. Clear Thinking Group LLC has not audited any of the information provided to us.
Prepared by CTG |
| Personal Confidential |
| 2/12/200911:23 AM |