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Accrued Escrow Obligations
12 Months Ended
Jun. 30, 2017
Accrued Escrow Obligations.  
Accrued Escrow Obligations

NOTE 7 – Accrued Escrow Obligations

 

On April 7, 2014, the Company acquired the membership interests of Advance Tooling Concepts, LLC (“ATC”) for approximately $24.3 million, of which: (i) $21.9 million was paid in cash and (ii) $2.4 million, consisting of 233,788 newly issued shares of common stock of the Company, was to be held in escrow for a period of 12 months (“ATC Escrow”) to satisfy certain working capital adjustments and/or indemnification obligations.  In July 2014, the ATC Escrow was reduced by $0.7 million following the completion of a working capital adjustment.  In October 2015, the Company entered into an agreement to settle and terminate the ATC Escrow in cash.  The cash settlement is accrued in current and long-term liabilities.  The ATC Escrow shares were returned to the Company and retired in February 2016.

 

On June 25, 2014, the Company acquired substantially all of the assets of Kecy Corporation (“Kecy”) and 411 Munson Holding, LLC for approximately $26.8 million, of which:  (i) $24.2 million was paid in cash; and (ii) $2.6 million, consisting of 172,450 newly issued shares of common stock of the Company, was to be held in escrow for a period of 18 months (“Kecy Escrow”) to satisfy certain working capital adjustments and/or indemnification obligations.  In August 2015, and in connection with the decline in the Company’s stock price since the date of acquisition, the Company issued 499,176 additional shares for security of the escrow.  In December 2016, the Company entered into an agreement to settle and terminate the Kecy Escrow for $2.2 million.  The cash settlement is accrued in current and long-term liabilities.  The Kecy Escrow shares were returned to the Company and retired in February 2017.