Hexagon Composites — Fund Information / Factsheet 2016

Jun 14, 2016

Hexagon Carve-out

Combined Balance Sheet - Unaudited

December 31, 2015

Current Assets:
Cash & Cash Equivalents	\$ 3,900,000
Accounts Receivable, net of allowance of \$50,000	11,393,412
Inventory, net of reserve	18,295,873
Other Current Assets	1,496,798
Total Current Assets	35,086,083
Long-term Assets:
Property, Plant & Equipment, net	22,281,393
Goodwill	2,218,626
Investment in Joint Venture	995,490
Other Assets	55,739
Total Assets	\$ 60,637,331
Current Liabilities:
Accounts Payable	\$ 7,893,599
Deferred Revenue	113,400
Affiliate Payables	500,261
Accrued Liabilities	1,920,253
Total Current Liabilities	10,427,513
Long-term Liabilities:
Other Liabilities	106,829
Total Long-term Liabilities	106,829
Total Liabilities	10,534,342
Net Investment in Hexagon Carve-out	50,102,989
Total Liabilities and Net Investment	\$ 60,637,331

Hexagon Carve-out

Combined Statement of Income and Comprehensive Income - Unaudited

For the year ended December 31, 2015

Revenues	\$ 86,845,661
Cost of Revenues	\$ 66,069,079
Gross Profit	20,776,582
Selling, General, and Administrative Expenses	\$ 7,810,315
Impairment of Fixed Assets	\$ 901,720
Other Operating Expenses	\$ 789,521
Operating Income	11,275,026
Loss on Investment in Joint Venture	\$ 54,510
Income before Provision for Taxes	11,220,516
Provision for Income Taxes	\$ 1,604,046
Net Income	\$ 9,616,470
Other Comprehensive Loss:
Foreign Currency Translation Adjustments	\$ (32,044)
Comprehensive Income	\$ 9,584,426

Hexagon Carve-out

Combined Statement of Cash Flows - Unaudited

For the year ended December 31, 2015

Cash Flows from Operating
Net Income \$	9,616,470
Adjustments to Reconcile Net Income to Net Cash Flows from Operating
Depreciation	2,055,821
Asset Impairment	901,720
Provision for Inventory Obsolescence	831,351
Provision for Bad Debt	64,037
Provision for Warranty	151,919
Loss on Asset Disposal	459,933
Loss on Equity Method Investment in Joint Venture	54,510
Other	(77,456)
Change in Operating Assets/Liabilities:
Accounts Receivable	547,355
Inventories	4,175,331
Other Current Assets	(951,231)
Other Assets	31,303
Accounts Payable	(546,977)
Deferred Revenue	(10,256)
Accrued Liabilities	(755,098)
Affiliate Payable	500,261
Net Cash Operating	17,048,993
Cash Flows from Investing
Capital Expenditures	(6,308,246)
Investment in Joint Venture	(1,000,000)
Net Cash Investing	(7,308,246)
Cash Flows from Financing
Transactions with Parent	(5,841,344)
Net Cash Financing	(5,841,344)
Net Increase in Cash	3,900,000
Cash at Beginning of Year	-
Cash at End of Year \$	3,900,000