Contract
Schedule 99.1
On May 20, 2005, the Company completed the sale of its wholly owned subsidiary, Xxxx Korea Corp. (“Xxxx Korea”), to JEC Korea Co., Ltd. (“JEC”) for $3.8 million. The transaction results in a book loss of approximately $2,400,000. The agreement includes the receipt of $1.5 million in cash and $2.3 million in a secured note. The sale includes all assets and liabilities of Xxxx Korea Corporation and the use of the “Xxxx Korea” name in Korea for a period of three years. Xxxx Korea includes the property in Seoul, South Korea and approximately 110 employees.
The Company has restated the 2005 and 2004 financial statements to present the operating results and net assets of Xxxx Korea as discontinued operations. Discontinued operations assets and liabilities and revenues include the following:
|
|
May 30, |
|
|
|
|
2004 |
|
|
Current Assets Related to Discontinued Operations |
|
|
|
|
Cash |
|
$ |
221,339 |
|
Accounts Receivable |
|
2,496,526 |
|
|
Inventory |
|
3,245,461 |
|
|
Prepaid and Other Expenses |
|
437,684 |
|
|
Total Current Assets Related to Discontinued Operations |
|
$ |
6,401,010 |
|
|
|
|
|
|
Non-current Assets Related to Discontinued Operations |
|
|
|
|
Property, Plant and Equipment, net |
|
$ |
4,546,432 |
|
Other Assets |
|
31,852 |
|
|
Total Non-current Assets Related to Discontinued Operations |
|
$ |
4,578,284 |
|
|
|
|
|
|
Current Liabilities Related to Discontinued Operations |
|
|
|
|
Notes Payable to Bank |
|
$ |
2,685,003 |
|
Accounts Payable |
|
2,350,260 |
|
|
Accrued Compensation |
|
388,184 |
|
|
Total Current Liabilities Related to Discontinued Operations |
|
$ |
5,423,447 |
|
|
|
|
|
|
Non-current Liabilities Related to Discontinued Operations |
|
|
|
|
Other Long-Term Liabilities |
|
$ |
203,465 |
|
|
|
Twelve Months |
|
Twelve Months |
|
|
|
Ending |
|
Ending |
|
|
|
May 29, |
|
May 30, |
|
|
|
2005 |
|
2004 |
|
Net Sales |
|
12,973,692 |
|
9,748,493 |
|
|
|
|
|
|
|
Profit (Loss) from Discontinued Operations |
|
(153,074 |
) |
150,607 |
|