Boss : 2021 Q2 Financials

Boss Holdings, Inc. and Subsidiaries Consolidated Balance Sheets

(Dollars in Thousands, Except Per Share Data)

June 26, 2021	December 26, 2020
Assets	(Unaudited)
Current Assets:
Cash and cash equivalents	34,118	21,818
Accounts receivable, net of allowance for doubtful accounts and returns	6,089	6,304
Inventories	15,953	14,697
Prepaid expenses and other	645	467
Other Investment, cost method	-	10,000
Income tax receivable	670	-
Total current assets	57,476	53,286
Property and Equipment, net	2,638	3,063
Finance lease right of use assets, net	57	79
Operating lease right of use assets, net	1,171	1,576
Marketable equity securities	1,233	1,885
Deferred tax asset	2,514	2,514
Intangibles, net of accumulated amortization	318	402
Goodwill	2,853	2,853
68,261	65,658
Liabilities and Stockholders' Equity
Current Liabilities:
Current portion of operating lease liabilities	704	818
Current portion of finance lease liabilities	20	27
Accounts payable	3,144	2,833
Accrued payroll and related expenses	678	1,454
Accrued promotional expenses	-	405
Income tax payable	326	3,376
Other accrued liabilities	2,107	2,024
Total current liabilities	6,980	10,937
Long-term operating lease liabilities	551	853
Long-term finance lease liabilities	42	54
Other long-term liabilities	7	-
Total noncurrent liabilities	600	907
Stockholders' Equity:
Common stock, $.25 par value; authorized 10,000,000 shares;	497	497
issued and outstanding 1,986,296 shares in 2020 and 2021
Additional paid-in capital	64,840	64,835
Accumulated (deficit)	(4,037)	(10,899)
Accumulated other comprehensive (loss)	(618)	(619)
Total stockholders' equity	60,682	53,814
68,261	65,658

Boss Holdings, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss) Periods Ended June 26, 2021 and June 27, 2020

(Dollars in Thousands, Except Per Share Data)

Net sales

Cost of sales

Gross profit

Operating expenses

Operating income (loss)

Other income (expense):

Interest income

Interest expense

Change in unrealized gain (loss) on marketable

securities

Other (expense) income; realized distribution/gain on

other investment

QuarterQuarterSix Months

Ended 6/26/21

Six Months

Ended 6/27/20

Ended 6/26/21

Ended 6/27/20

$15,423 11,401 4,022

$11,278

8,927 2,351

$29,012 21,923

$23,352 18,043

7,089 5,309

3,702 320

3,453 (1,102)

7,279 7,356

(190)

(2,047)

1

27 6 883 106

1 27

(8) (159)

(11) (1)

(586) 897

204

7,619 106

38

1,022

7,023

1,029

Income (loss) from continuing operations before income tax expense (benefit)

Income tax expense (benefit)

Net income (loss) from continuing operations

Discontinued operations:

Income (loss) from discontinued operations

Income tax expense (benefit)

Net income (loss) from discontinued operations

358

(80)

• 6,833 (1,108)

100 258

(247)

(40) 6,873

(495)

167

(523)

(8)

(1)

(11) (277)

- (8)

-

- (50)

(1)

(11) (227)

Net income (loss)

Other comprehensive income (loss); foreign currency translation adjustments

Comprehensive income (loss)

Basic earnings (loss) per common share

Continuing operations Discontinued operations

Basic earnings (loss) per common share

Diluted earnings (loss) per common share

Continuing operations Discontinued operations

Diluted earnings (loss) per common share

250 (3)

166 16

6,862 (750)

(4) 11

$	247	$	(739)
$	0.10	$	0.05	$	3.44	$	(0.27)
-	0.03	(0.01)	(0.11)
$	0.10	$	0.08	$	3.43	$	(0.38)
$	0.10	$	0.05	$	3.39	$	(0.26)
-	0.03	(0.01)	(0.11)
$	0.10	$	0.08	$	3.38	$	(0.37)

182

6,859

Boss Holdings, Inc. and Subsidiaries Consolidated Statements of Cash Flows

For the Six Months Ended June 26, 2021 and June 27, 2020 (Dollars in Thousands, Except Per Share Data)

Cash flows from operating activities: Continuing operations:

Six Months

Ended June 26, 2021

Six Months

Ended June 27, 2020

Net income (loss) from continuing operations	6,873	(523)
Adjustments to reconcile net income (loss) from continuing operations to net
cash provided by (used in) continuing operations:
Depreciation and amortization	998	1,022
(Gain) loss from investment activity - PIP Holdings	(7,569)	-
Share-based compensation and related tax benefits	5	34
Deferred tax expense (benefit)	-
Change in unrealized (gains) losses on marketable equity securities	574	(896)
Changes in assets and liabilities net of acquisitions:
(Increase) decrease in:
Accounts receivable	(200)	988
Inventories	(1,256)	1,915
Prepaid expenses and other	(178)	(280)
Other assets	-	(14)
Increase (decrease) in:
Operating lease liabilities	(416)	(331)
Accounts payable	391	570
Accrued liabilities	(4,413)	(1,550)
Other	29	-
Net cash provided by (used in) continuing operations	(5,162)	935
Discontinued operations:
Net income (loss) from discontinued operations	(11)	(227)
Adjustments to reconcile net income (loss) from discontinued operations to
net cash provided by (used in) discontinued operations:
Depreciation and amortization	30	7
Changes in assets and liabilities net of acquisitions:
(Increase) decrease in:
Accounts receivable	10	61
Increase (decrease) in:
Accounts payable	(82)	(898)
Accrued liabilities	-	(960)
Other	(22)	-
Net cash provided by (used in) discontinued operations	(75)	(2,017)
Net cash provided by (used in) operating activities	(5,237)	(1,082)

$

$

(Continued)

Boss Holdings, Inc. and Subsidiaries Consolidated Statements of Cash Flows

For the Six Months Ended June 26, 2021 and June 27, 2020

(Dollars in Thousands, Except Per Share Data)	2021
Cash flows from investing activities:
Continuing operations:
Purchases of intangible assets	$	(36)	-
Purchases of property and equipment	(56)	(152)
Proceeds from sale of available-for-sale securities	78	-
Proceeds from investment activity - PIP Holdings	17,569	-
Net cash provided by (used in) continuing operations	17,555	(152)
Discontinued operations:
Gain (loss) on disposal of fixed assets	-	5
Net cash provided by (used in) discontinued operations	-	5
Net cash provided by (used in) investing activities	17,555	(147)
Cash flows from financing activities:
Continuing operations:
Repayment of finance lease liabilities	(19)	(8)
Repayment of long-term obligations	-	-
Net cash provided by (used in) continuing operations	(19)	(8)
Net cash provided by (used in) financing activities	(19)	(8)
Effect of exchange rate changes on cash	1	11
Increase (decrease) in cash and cash equivalents	12,300	(1,226)
Cash and cash equivalents:
Beginning	21,818	26,744
Ending	$ 25,518

2020

$ 34,118