EX-99.2 2 poww-ex99_2.htm EX-99.2 EX-99.2

EXHIBIT 99.2

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION

On April 18, 2025, Outdoor Holding Company (the “Company”) announced that it completed the sale to Olin Winchester, LLC, a Delaware limited liability company (“Buyer”), of all assets of AMMO Technologies, Inc., an Arizona corporation (“AMMO Tech”), Enlight Group II, LLC d/b/a Jagemann Munition Components d/b/a Buythebullets, a Delaware limited liability company (“Enlight”), and Firelight Group I, LLC, a Delaware limited liability company (“Firelight”, and together with AMMO Tech and Enlight, collectively, the “Sellers” and each a “Seller”, and the Sellers together with the Company, the “Seller Group”) related to the Sellers’ business of designing, manufacturing, marketing, distributing and selling ammunition and ammunition components (collectively, the “Ammunition Manufacturing Business”), along with certain assets of the Company related to the Ammunition Manufacturing Business, and that the Buyer assumed certain liabilities of the Seller Group related to the Ammunition Manufacturing Business, for a gross purchase price of $75,000,000, subject to certain adjustments, including for estimated net working capital and real property costs and prorations and additional adjustments contemplated by the First Amendment (the “First Amendment”) to that certain Asset Purchase Agreement by and among the Seller Group and Buyer, dated January 20, 2025 (the “Purchase Agreement” and the sale of the Ammunition Manufacturing Business, the “Transaction”), in accordance with the terms of the Purchase Agreement, as amended by the First Amendment. The assets acquired, and the liabilities assumed, by Buyer were those primarily related to the Ammunition Manufacturing Business, including the Ammunition Manufacturing Business’ dedicated manufacturing facility in Manitowoc, Wisconsin. In addition, the Company entered into certain related transaction agreements at the closing, including a transition services agreement and other customary agreements.

The following unaudited pro forma condensed consolidated financial statements were derived from the historical consolidated financial statements of the Company, which were prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP"). The unaudited pro forma condensed consolidated financial information has been prepared in accordance with Article 11 of Regulation S-X. The unaudited pro forma condensed consolidated financial statements were prepared for illustrative and informational purposes only and are not intended to represent what the Company’s results of operations or financial position would have been had the Transaction occurred on the dates indicated. The unaudited pro forma condensed consolidated financial statements also should not be considered indicative of the Company's future results of operations or financial position. The actual financial position and results of operations may differ significantly from the pro forma amounts reflected herein due to a variety of factors.

The Accounting and financial reporting in these unaudited pro forma condensed consolidated financial information is based on its preliminary assessment of the appropriate application of accounting principles generally accepted in the U.S. (“U.S. GAAP”). The final application of U.S. GAAP to the Transaction may differ from what is presented in these unaudited pro forma condensed consolidated financial information.

The unaudited pro forma condensed consolidated financial statements as of and for the nine months ended December 31, 2024, have been derived from the historical unaudited consolidated financial statements of the Company, included in the Quarterly Report on Form 10-Q for the quarter ended December 31, 2024, filed with the Securities and Exchange Commission (the “SEC”) on May 20, 2025. The unaudited pro forma condensed consolidated financial statements for the years ended March 31, 2024, 2023 and 2022 have been derived from the historical audited consolidated financial statements of the Company, included in the Annual Report on Form 10-K/A filed with the SEC on May 20, 2025. The unaudited pro forma condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company's historical consolidated financial statements and accompanying notes.

The unaudited pro forma condensed consolidated statement of operations for the nine months ended December 31, 2024, and for the years ended March 31, 2024, 2023 and 2022 reflect pro forma results as if the Transaction occurred on April 1, 2021. The unaudited pro forma condensed consolidated balance sheet as of December 31, 2024 gives effect to the Transaction as if it had occurred on that date. In addition, the unaudited pro forma condensed consolidated statements of operations for the three months ended December 31, 2024, and the year ended March 31, 2024, reflect certain adjustments that are incremental to those related to the Transaction discussed above, described herein, as if they occurred on April 1, 2023. In our future public filings, the historical financial results of the Ammunition Manufacturing Business will be reflected in the Company’s consolidated financial statements as discontinued operations under U.S. generally accepted accounting principles (“GAAP”) for all periods.

 

 

Beginning in the fourth quarter of 2025, the criteria under ASC 205-20, Presentation of Financial Statements ("ASC 205-20"), for discontinued operations were met, and the Company will present the Transaction as a discontinued operation in future Quarterly Reports on Form 10-Q and in future Annual Reports on Form 10-K. The Company believes the adjustments included within the "Discontinued Operations of the Ammunition Manufacturing Business" column of the unaudited pro forma condensed consolidated financial statements are consistent with the guidance for discontinued operations under GAAP.

The following unaudited pro forma condensed consolidated statements of operations and unaudited pro forma condensed consolidated balance sheet reflect the following transactions in conjunction with the Transaction:

•
Discontinued Operations of the Ammunition Manufacturing Business:
▪
The historical financial results directly attributable to the Ammunition Manufacturing Business in accordance with ASC 205
•
Other Separation Adjustments:
▪
Estimated accrued one-time transaction costs;
▪
A transition services agreement ("TSA Agreement") for a time period of three months.

The unaudited pro forma condensed consolidated financial statements do not contain any autonomous entity adjustments or potential synergies or dis-synergies that may occur in connection with the Transaction.

The unaudited pro forma condensed consolidated financial statements should be read in conjunction with the notes thereto.

 

OUTDOOR HOLDING COMPANY

CONDENSED CONSOLIDATED PRO FORMA BALANCE SHEETS

AS OF DECEMBER 31, 2024

(UNAUDITED)

 

 

 

 

 

Pro Forma Transaction Accounting Adjustments

 

 

 

 

 

As Reported

 

 

Discontinued Operations of the Ammunition Manufacturing Business (a)

 

 

Notes

 

Other Separation Adjustments

 

 

Notes

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

31,921,690

 

 

$

-

 

 

 

 

$

42,946,905

 

 

 (b)

 

$

74,868,595

 

Accounts receivable, net

 

 

16,961,800

 

 

 

(7,166,316

)

 

 

 

 

-

 

 

 

 

 

9,795,484

 

Inventories

 

 

47,207,283

 

 

 

(47,207,283

)

 

 

 

 

-

 

 

 

 

 

-

 

Prepaid expenses

 

 

2,734,319

 

 

 

(522,469

)

 

 

 

 

-

 

 

 

 

 

2,211,850

 

Total Current Assets

 

 

98,825,092

 

 

 

(54,896,068

)

 

 

 

 

42,946,905

 

 

 

 

 

86,875,929

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment, net

 

 

57,432,142

 

 

 

(51,343,501

)

 

 

 

 

-

 

 

 

 

 

6,088,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

399,910

 

 

 

(372,667

)

 

 

 

 

-

 

 

 

 

 

27,243

 

Patents, net

 

 

4,350,444

 

 

 

(4,350,444

)

 

 

 

 

-

 

 

 

 

 

-

 

Other intangible assets, net

 

 

101,922,126

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

101,922,126

 

Goodwill

 

 

90,870,094

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

90,870,094

 

Right of use assets - operating leases

 

 

1,588,871

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

1,588,871

 

TOTAL ASSETS

 

$

355,388,679

 

 

$

(110,962,680

)

 

 

 

$

42,946,905

 

 

 

 

$

287,372,904

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

21,521,364

 

 

$

(3,049,885

)

 

 

 

$

-

 

 

 

 

$

18,471,479

 

Accrued liabilities

 

 

19,796,290

 

 

 

228,088

 

 

 

 

 

4,477,254

 

 

 (d)

 

 

24,501,632

 

Current portion of operating lease liability

 

 

522,884

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

522,884

 

Current portion of construction note payable

 

 

281,947

 

 

 

(281,947

)

 

 

 

 

-

 

 

 

 

 

-

 

Insurance premium note payable

 

 

233,001

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

233,001

 

Total Current Liabilities

 

 

42,355,486

 

 

 

(3,103,744

)

 

 

 

 

4,477,254

 

 

 

 

 

43,728,996

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration payable

 

 

40,032

 

 

 

(40,032

)

 

 

 

 

-

 

 

 

 

 

-

 

Construction note payable, net of unamortized issuance costs

 

 

10,605,998

 

 

 

(10,605,998

)

 

 

 

 

-

 

 

 

 

 

-

 

Operating lease liability, net of current portion

 

 

1,158,033

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

1,158,033

 

Income Tax Payable

 

 

1,609,520

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

1,609,520

 

Total Liabilities

 

 

55,769,069

 

 

 

(13,749,774

)

 

 

 

 

4,477,254

 

 

 

 

 

46,496,549

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series A cumulative perpetual preferred Stock 8.75%

 

 

1,400

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

1,400

 

Common stock

 

 

116,508

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

116,508

 

Additional paid-in capital

 

 

433,646,783

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

433,646,783

 

Accumulated deficit

 

 

(125,579,680

)

 

 

(97,212,906

)

 

 

 

 

38,469,651

 

 

 

 

 

(184,322,935

)

Treasury Stock

 

 

(8,565,401

)

 

 

-

 

 

 

 

 

-

 

 

 

 

 

(8,565,401

)

Total Shareholders' Equity

 

 

299,619,610

 

 

 

(97,212,906

)

 

 

 

 

38,469,651

 

 

 

 

 

240,876,355

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

 

$

355,388,679

 

 

$

(110,962,680

)

 

 

 

$

42,946,905

 

 

 

 

$

287,372,904

 

 

 

 

OUTDOOR HOLDING COMPANY

CONDENSED CONSOLIDATED PRO FORMA STATEMENT OF OPERATIONS

FOR THE NINE MONTHS ENDED DECEMBER 31, 2024

(UNAUDITED)

 

 

 

 

 

Pro Forma Transaction Accounting Adjustments

 

 

 

 

 

As Reported

 

 

Discontinued Operations of the Ammunition Manufacturing Business (a)

 

 

Notes

 

Other Separation Adjustments

 

 

Notes

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ammunition sales

 

$

41,647,834

 

 

$

(41,647,834

)

 

 

 

$

-

 

 

 

 

$

-

 

Marketplace revenue

 

 

36,786,879

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

36,786,879

 

Casing sales

 

 

13,125,924

 

 

 

(13,125,924

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

91,560,637

 

 

 

(54,773,758

)

 

 

 

 

-

 

 

 

 

 

36,786,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

66,766,584

 

 

 

(61,845,249

)

 

 

 

 

-

 

 

 

 

 

4,921,335

 

Gross profit

 

 

24,794,053

 

 

 

7,071,491

 

 

 

 

 

-

 

 

 

 

 

31,865,544

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

922,466

 

 

 

(682,097

)

 

 

 

 

-

 

 

 

 

 

240,369

 

Corporate general and administrative

 

 

47,783,353

 

 

 

(10,359,635

)

 

 

 

 

-

 

 

 

 

 

37,423,718

 

Employee salaries and related expenses

 

 

14,911,713

 

 

 

(1,915,593

)

 

 

 

 

-

 

 

 

 

 

12,996,120

 

Depreciation and amortization expense

 

 

10,167,903

 

 

 

(35,866

)

 

 

 

 

-

 

 

 

 

 

10,132,037

 

  Total operating expenses

 

 

73,785,435

 

 

 

(12,993,191

)

 

 

 

 

-

 

 

 

 

 

60,792,244

 

Loss from operations

 

 

(48,991,382

)

 

 

20,064,682

 

 

 

 

 

-

 

 

 

 

 

(28,926,700

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

616,790

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

616,790

 

Interest expense

 

 

(534,787

)

 

 

398,385

 

 

 

 

 

-

 

 

 

 

 

(136,402

)

  Total other income (expense)

 

 

82,003

 

 

 

398,385

 

 

 

 

 

-

 

 

 

 

 

480,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(48,909,379

)

 

 

20,463,067

 

 

 

 

 

-

 

 

 

 

 

(28,446,312

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

4,407,491

 

 

 

1,560,923

 

 

 

 

 

-

 

 

 

 

 

5,968,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(53,316,870

)

 

 

18,902,144

 

 

 

 

 

-

 

 

 

 

 

(34,414,726

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividend

 

 

(2,339,411

)

 

 

-

 

 

 

 

 

-

 

 

 

 

 

(2,339,411

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to common stock shareholders

 

$

(55,656,281

)

 

$

(18,902,144

)

 

 

 

$

-

 

 

 

 

$

(36,754,137

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted loss per share of common stock

 

$

(0.47

)

 

 

 

 

 

 

 

 

 

 

 

$

(0.31

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding - basic and diluted

 

 

118,012,373

 

 

 

 

 

 

 

 

 

 

 

 

 

118,012,373

 

 

 

 

OUTDOOR HOLDING COMPANY

CONDENSED CONSOLIDATED PRO FORMA STATEMENT OF OPERATIONS

FOR THE YEAR ENDED MARCH 31, 2024

(UNAUDITED)

 

 

 

 

 

Pro Forma Transaction Accounting Adjustments

 

 

 

 

 

As Reported

 

 

Discontinued Operations of the Ammunition Manufacturing Business (a)

 

 

Notes

 

Other Separation Adjustments

 

 

Notes

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ammunition sales

 

$

69,390,801

 

 

$

(69,390,801

)

 

 

 

$

-

 

 

 

 

$

-

 

Marketplace revenue

 

 

53,942,076

 

 

 

-

 

 

 

 

 

-

 

 

 

 

 

53,942,076

 

Casing sales

 

 

21,721,695

 

 

 

(21,721,695

)

 

 

 

 

-

 

 

 

 

 

-

 

 

 

145,054,572

 

 

 

(91,112,496

)

 

 

 

 

-

 

 

 

 

 

53,942,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

102,479,087

 

 

 

(94,818,546

)

 

 

 

 

-

 

 

 

 

 

7,660,541

 

Gross profit

 

 

42,575,485

 

 

 

3,706,050

 

 

 

 

 

-

 

 

 

 

 

46,281,535

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

1,370,079

 

 

 

(1,179,659

)

 

 

 

 

-

 

 

 

 

 

190,420

 

Corporate general and administrative

 

 

29,583,274

 

 

 

(6,338,210

)

 

 

 

 

(191,244

)

 

 (c)

 

 

23,053,820

 

Employee salaries and related expenses

 

 

17,700,002

 

 

 

2,840,758

 

 

 

 

 

4,477,254

 

 

 (d)

 

 

25,018,014

 

Depreciation and amortization expense

 

 

13,542,791

 

 

 

(508,485

)

 

 

 

 

-

 

 

 

 

 

13,034,306

 

  Total operating expenses

 

 

62,196,146

 

 

 

(5,185,596

)

 

 

 

 

4,286,010

 

 

 

 

 

61,296,560

 

Loss from operations

 

 

(19,620,661

)

 

 

8,891,646

 

 

 

 

 

(4,286,010

)

 

 

 

 

(15,015,025

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

(332,593

)

 

 

158,146

 

 

 

 

 

-

 

 

 

 

 

(174,447

)

Interest expense

 

 

(446,473

)

 

 

765,457

 

 

 

 

 

-

 

 

 

 

 

318,984

 

  Total other expense

 

 

(779,066

)

 

 

923,603

 

 

 

 

 

-

 

 

 

 

 

144,537

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(20,399,727

)

 

 

9,815,249

 

 

 

 

 

(4,286,010

)

 

 

 

 

(14,870,488

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

(3,806,118

)

 

 

2,857,286

 

 

 

 

 

-

 

 

 

 

 

(948,832

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

(16,593,609

)

 

 

6,957,963

 

 

 

 

 

(4,286,010

)

 

 

 

 

(13,921,656

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred atock dividend

 

 

(3,122,049

)

 

 

-

 

 

 

 

 

-

 

 

 

 

 

(3,122,049

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss attributable to common stock shareholders

 

$

(19,715,658

)

 

$

6,957,963

 

 

 

 

$

(4,286,010

)

 

 

 

$

(17,043,705

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted loss per share of common stock

 

$

(0.17

)

 

 

 

 

 

 

 

 

 

 

 

$

(0.14

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding - basic and diluted

 

 

118,249,486

 

 

 

 

 

 

 

 

 

 

 

 

 

118,249,486

 

 

 

 

OUTDOOR HOLDING COMPANY

CONDENSED CONSOLIDATED PRO FORMA STATEMENT OF OPERATIONS

FOR THE YEAR ENDED MARCH 31, 2023

(UNAUDITED)

 

 

 

 

 

Pro Forma Transaction Accounting Adjustments

 

 

 

 

 

As Reported

 

 

Discontinued Operations of the Ammunition Manufacturing Business (a)

 

 

Notes

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

 

 

 

 

 

 

 

 

 

 

Ammunition sales

 

$

114,116,044

 

 

$

114,116,044

 

 

 

 

$

-

 

Marketplace revenue

 

 

63,149,673

 

 

 

-

 

 

 

 

 

63,149,673

 

Casing sales

 

 

14,174,084

 

 

 

14,174,084

 

 

 

 

 

-

 

 

 

191,439,801

 

 

 

128,290,128

 

 

 

 

 

63,149,673

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

136,078,488

 

 

 

126,961,549

 

 

 

 

 

9,116,939

 

Gross profit

 

 

55,361,313

 

 

 

1,328,579

 

 

 

 

 

54,032,734

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

4,729,540

 

 

 

2,542,074

 

 

 

 

 

2,187,466

 

Corporate general and administrative

 

 

24,979,661

 

 

 

6,014,380

 

 

 

 

 

18,965,281

 

Employee salaries and related expenses

 

 

19,820,917

 

 

 

2,008,625

 

 

 

 

 

17,812,292

 

Depreciation and amortization expense

 

 

13,278,762

 

 

 

578,326

 

 

 

 

 

12,700,436

 

  Total operating expenses

 

 

62,808,880

 

 

 

11,143,405

 

 

 

 

 

51,665,475

 

Income/(loss) from operations

 

 

(7,447,567

)

 

 

(9,814,826

)

 

 

 

 

2,367,259

 

 

 

 

 

 

 

 

 

 

 

 

Other Expenses

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

25,181

 

 

 

39,049

 

 

 

 

 

(13,868

)

Interest expense

 

 

(632,062

)

 

 

(554,256

)

 

 

 

 

(77,806

)

  Total other expense

 

 

(606,881

)

 

 

(515,207

)

 

 

 

 

(91,674

)

 

 

 

 

 

 

 

 

 

 

 

Income/(loss) before income taxes

 

 

(8,054,448

)

 

 

(10,330,033

)

 

 

 

 

2,275,585

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

712,239

 

 

 

2,059,294

 

 

 

 

 

(1,347,055

)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

(8,766,687

)

 

 

-

 

 

 

 

 

3,622,640

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividend

 

 

(3,105,034

)

 

 

-

 

 

 

 

 

(3,105,034

)

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss) attributable to common stock shareholders

 

$

(11,871,721

)

 

$

(12,389,327

)

 

 

 

$

517,606

 

 

 

 

 

 

 

 

 

 

 

 

Basic income/(loss) per share of common stock

 

$

(0.10

)

 

 

 

 

 

 

$

0.00

 

Diluted income/(loss) per share of common stock

 

$

(0.10

)

 

 

 

 

 

 

$

0.00

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding - basic

 

 

117,177,885

 

 

 

 

 

 

 

 

117,177,885

 

 

 

 

OUTDOOR HOLDING COMPANY

CONDENSED CONSOLIDATED PRO FORMA STATEMENT OF OPERATIONS

FOR THE YEAR ENDED MARCH 31, 2022

(UNAUDITED)

 

 

 

 

 

Pro Forma Transaction Accounting Adjustments

 

 

 

 

 

As Reported

 

 

Discontinued Operations of the Ammunition Manufacturing Business (a)

 

 

Notes

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

 

 

 

 

 

 

 

 

 

 

Ammunition sales

 

$

161,459,025

 

 

$

(161,459,025

)

 

 

 

$

-

 

Marketplace revenue

 

 

64,608,516

 

 

 

-

 

 

 

 

 

64,608,516

 

Casing sales

 

 

14,201,625

 

 

 

(14,201,625

)

 

 

 

 

-

 

 

 

240,269,166

 

 

 

(175,660,650

)

 

 

 

 

64,608,516

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

151,552,941

 

 

 

(142,820,591

)

 

 

 

 

8,732,350

 

Gross profit

 

 

88,716,225

 

 

 

(32,840,059

)

 

 

 

 

55,876,166

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

7,310,216

 

 

 

(6,768,376

)

 

 

 

 

541,840

 

Corporate general and administrative

 

 

24,120,483

 

 

 

(4,849,635

)

 

 

 

 

19,270,848

 

Employee salaries and related expenses

 

 

15,034,409

 

 

 

(4,808,605

)

 

 

 

 

10,225,804

 

Depreciation and amortization expense

 

 

13,725,065

 

 

 

(1,602,695

)

 

 

 

 

12,122,370

 

  Total operating expenses

 

 

60,190,173

 

 

 

(18,029,311

)

 

 

 

 

42,160,862

 

Income/(loss) from operations

 

 

28,526,052

 

 

 

(14,810,748

)

 

 

 

 

13,715,304

 

 

 

 

 

 

 

 

 

 

 

 

Other Expenses

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

21,840

 

 

 

-

 

 

 

 

 

21,840

 

Interest expense

 

 

(637,797

)

 

 

639,184

 

 

 

 

 

1,387

 

  Total other expense

 

 

(615,957

)

 

 

639,184

 

 

 

 

 

23,227

 

 

 

 

 

 

 

 

 

 

 

 

Income/(loss) before income taxes

 

 

27,910,095

 

 

 

(14,171,564

)

 

 

 

 

13,738,531

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

2,042,918

 

 

 

(5,753,241

)

 

 

 

 

(3,710,323

)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

25,867,177

 

 

 

-

 

 

 

 

 

17,448,854

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividend

 

 

(2,668,649

)

 

 

-

 

 

 

 

 

(2,668,649

)

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss) attributable to common stock shareholders

 

$

23,198,528

 

 

$

(8,418,323

)

 

 

 

$

14,780,205

 

 

 

 

 

 

 

 

 

 

 

 

Basic income per share of common stock:

 

$

0.21

 

 

 

 

 

 

 

$

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted income per share of common stock:

 

$

0.20

 

 

 

 

 

 

 

$

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding - basic

 

 

112,328,680

 

 

 

 

 

 

 

 

112,328,680

 

Weighted average number of shares outstanding - diluted

 

 

114,825,835

 

 

 

 

 

 

 

 

114,825,835

 

 

 

 

OUTDOOR HOLDING COMPANY

NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION

1. Basis of Presentation

The unaudited pro forma condensed consolidated financial information is prepared based on the Company’s historical consolidated financial statements and pursuant to Article 11 of Regulation S-X, adjusted for certain transaction accounting adjustments listed in the Note 2 below. Actual adjustments, however, may differ materially from the information presented.

In addition, the Company does not expect a material income tax impact resulting from the Transaction as it maintains a full valuation allowance on all of its deferred tax assets due to its history of losses.

2. Pro Forma Adjustments

The unaudited pro forma condensed consolidated financial information reflects the following adjustments:

a)
The "Discontinued Operations of the Ammunition Manufacturing Business" column in the unaudited pro forma condensed consolidated financial statements represents the historical financial results directly attributable to the Ammunition Manufacturing Business in accordance with ASC 205.
b)
The increase to cash and cash equivalents of $42.3 million represents the proceeds received from the sale, consisting of $75.0 million of contractual consideration less $19.0 million in working capital adjustments, These proceeds were partially offset by transactions costs paid at the closing of $2.3 million and $11.4 million to repay the construction note payable on the Manitowoc, WI facility that was sold as part of the Transaction and the taxes associated with that sale.
c)
In conjunction with the Transaction, the Company entered into a transition services agreement with the Buyer (the "TSA Agreement"). Under the terms of the TSA Agreement, the Company provided certain back office post-closing services on a transitional basis for three months. The adjustment reflects the fees received under the TSA Agreement for performing the back office pot-closing services as if the three months of services provided began on April 1, 2023.
d)
Other separation adjustments of $3.3 million and transaction bonuses of $1.2 million which were incurred and expensed by the Company in conjunction with the Transaction.