SUBSEQUENT EVENT

12 Months Ended

Dec. 31, 2021

SUBSEQUENT EVENT

SUBSEQUENT EVENT

NOTE 12—SUBSEQUENT EVENT

Effective January 15, 2022, through a wholly-owned subsidiary of Hy-Tech, the Company acquired substantially all the non-real estate assets comprising the business of Jackson Gear Company (“JGC”), a Pennsylvania-based corporation that manufactures and distributes custom gears and power transmission gear products.  The purchase price consisted of an aggregate of approximately $2.3 million in cash, which was funded by Revolver borrowings and the assumption of certain payables. The Company intends to incorporate this business into PTG and believes that the acquisition will provide added market exposure into the market for larger gears.

In connection with this acquisition, the Company entered into the Consent, Joinder and Amendment No. 9 (“Amendment No. 9”) to Second Amended and Restated Loan and Security Agreement (the “Credit Agreement”), with Capital One, National Association. Amendment No. 9, among other things, provided consent to this acquisition.

	Total
Total purchase price	$	2,300,000

The following table presents preliminary purchase price allocation:

Accounts receivable	$	490,000
Inventories		292,000
Machinery and equipment		851,000
Goodwill		805,000
Liabilities assumed		(138,000)
Total estimated purchase price	$	2,300,000

The excess of the total purchase price over the fair value of the net assets acquired is currently being presented as goodwill.  The Company has not yet determined the value of the identifiable intangible assets.  When finalized, any goodwill will be amortized over 15 years for tax purposes, but not deductible for financial reporting purposes.  Any identifiable intangible assets subject to amortization will be amortized over 15 years for tax purposes.