Note 14 - Subsequent Events - Sale of 555 Building

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE 14:          SUBSEQUENT EVENTS – SALE OF 555 BUILDING

On March 29, 2021, the Company entered into an agreement with Steel K, LLC for the sale of its 555 Building, and on July 26, 2021 the Company closed on the sale of the 555 Building. The sale price was $24,360,000, subject to adjustment for apportionments, adjustments and credits. A portion of the sale proceeds was used to satisfy the existing mortgage debt on the 555 Building, including interest and fees, in the amount of $9,352,719, as well as various costs related to the closing of the transaction. The net proceeds to the Company were approximately $14,000,000. As a result, the Company has classified the carrying value of the building of $16.2 million as Assets held for sale (which was utilized by CVD Materials) as part of current assets at June 30, 2021, which were previously recorded at December 31, 2020 and prior as part of property, plant and equipment on the Company’s consolidated balance sheet.

In addition, the Note related to the 555 Building was classified as part of current liabilities at June 30, 2021, Liabilities Held For Sale in the amount of $9.1 million, which were previously recorded at December 31, 2020 and prior as part of both current and long term debt on the Company’s consolidated balance sheet.

Below represents the Proforma Balance Sheet with respect to the July 26, 2021 sale of the 555 Building:

				Proforma				Proforma
	June 30, 2021			Adjustments				June 30, 2021
ASSETS
Current Assets
Cash and cash equivalents	$	5,387,896		$	13,976,766		(1)	$	19,364,662
Accounts receivable, net		1,147,451							1,147,451
Contract assets		1,066,382							1,066,382
Inventories, net		1,297,202							1,297,202
Taxes Receivable		715,599							715,599
Other current assets		460,260			(110,534	)	(2)		349,726
Assets held for sale		16,181,368			(16,181,368	)	(3)		-
Total Current Assets		26,256,158			(2,315,136	)			23,941,022
									-
Property, plant and equipment, net		12,405,495							12,405,495
Intangible assets, net		234,633							234,633
Other assets		23,318							23,318
Total Assets	$	38,919,604		$	(2,315,136	)		$	36,604,468
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	910,731						$	910,731
Accrued expenses		1,766,245			(142,255	)	(4)		1,623,990
Current maturities of long-term debt		1,915,508							1,915,508
Contract Liabilities		1,001,071							1,001,071
Liabilities held for sale		9,123,151			(9,123,151	)	(5)		-
Total Current Liabilities		14,716,706			(9,265,406	)			5,451,300
Long-term debt, net of current portion		-							-
Total Liabilities		14,716,706			(9,265,406	)			5,451,300
Commitments and contingencies (see note 13)
Stockholders’ Equity:
Common stock - $0.01 par value – 20,000,000 shares authorized; issued and outstanding 6,684,281 at June 30, 2021 and 6,678,698 at December 31, 2020		66,842							66,842
Additional paid-in capital		27,074,079							27,074,079
Retained earnings		(2,938,023	)		6,950,270		(6)		4,012,247
Total Stockholders’ Equity		24,202,898			6,950,270				31,153,168
Total Liabilities and Stockholders’ Equity	$	38,919,604		$	(2,315,136	)		$	36,604,468

Footnotes to the above Proforma Balance Sheet.

(1) Net proceeds from sale of building, net of full payment of 555 Building mortgage, and related closing fees.

(2) Receipt of apportionment of prepaid Pilot taxes, and broker fees on rental space at 555 Building.

(3) Building related assets sold.

(4) Payment of 555 Building tenant escrow deposit to buyer of 555 Building.

(5) Mortgage at 555 Building paid off at closing of sale of building.

(6) Approximate net income from sale of building net of related costs