SUBSEQUENT EVENT

9 Months Ended

Sep. 28, 2019

SUBSEQUENT EVENT

SUBSEQUENT EVENT

20.  Subsequent to the end of the third quarter of 2019, on October 15, 2019, the Company completed the acquisition from Valco of certain real property located in Pueblo, Colorado for $9 million in connection with the full and final settlement of the previously disclosed litigation between the Company and Valco. A portion of the settlement was for the property purchase and a portion was attributed to the settlement of the litigation. As the litigation claim was a known event prior to the current quarter balance sheet date, the Company has recognized the portion of the agreement related to the legal settlement in the financial statements for the period ended September 28, 2019. Since the asset purchase agreement was not a known event prior to the balance sheet date it was not recorded in the financial statements for the period ended September 28, 2019. The Company has engaged a third party to perform a valuation of the land. As the valuation has not been completed, the Company used its best estimate to allocate the final settlement to the property and settlement expense. Considering a current offer to purchase a portion of the land and research on similar properties in the same area the Company estimates the land value to be approximately $2,600,000 leaving a value of $6,400,000 as legal settlement expense which has been recognized in the Statement of Operations for the period ended September 28, 2019 and was included in accrued expenses on the Condensed Consolidated Balance for the same period end. The property purchase will be reported by the Company in the fourth quarter. These amounts are management’s best estimate and are subject to change as additional information is received. See Note 8 for additional discussion.