Unaudited Condensed Combined Pro Forma Balance Sheet as of April 30, 2008

EX-10.27 6 v180264_ex10-27.htm
Exhibit 10.27
 
PROFORMA UNAUDITED CONDENSED COMBINED BALANCE SHEETS
                
   
Historical
                          
Pro forma
  
 ($000 USD)
        
Qualytextil
                                
APRIL 30, 2008
  
AS REPORTED
    
US GAAP /USD
    
Adjustment
    
Adjustment
    
Adjustment
    
Adjustment
        
   
4/30/08
    
4/30/08
      (1)    (2)    (3)    (4)  
4/30/08
  
                                                   
Current assets:
                                                  
Cash and cash equivalents
   $ 3,001     $ 34     $ (13,344 )   $ 13,344     $ -     $ -     $ 3,035  
Accounts receivable, net
     17,374       1,199       -       -       -       -       18,573  
Inventories
     40,658       3,309       -       -       -       -       43,967  
Deferred income taxes
     1,970               -       -       -       -       1,970  
Other current assets
     2,401       210       -       -       -       -       2,611  
     Total current assets
     65,404       4,752       (13,344 )     13,344       -       -       70,156  
                                                         
Investment in subsidiaries
     -       -       13,694       -       -       (13,694 )     -  
Property and equipment, net
     13,255       1,246       -       -       -       110       14,611  
Good will
     871       -       -       -       -       9,595       10,466  
Other assets
     119       791       -       -       -       -       910  
    $ 79,649     $ 6,789     $ 350     $ 13,344     $ 0     $ (3,989 )   $ 96,143  
                                                         
       LIABILITIES AND STOCKHOLDER’S EQUITY:
                                                        
                                                         
Current liabilities:
                                                        
Current maturities-long term debt
   $ 94     $ 3,093     $ -     $ -     $ (3,093 )   $ -     $ 94  
Accounts payable
     3,754       1,960       350                       -       6,064  
Accrued expenses and other current liabilities
     1,732       1,517       -       -       (759 )     -       2,490  
     Total current liabilities
     5,580       6,570       350       -       (3,852 )     -       8,648  
                                                         
Construction loan payable
     1,810       -       -       -       -       -       1,810  
Other Liabilities
     -       82                                       82  
Bank Debt & debentures
     3,467       -       -       13,344       -               16,811  
     Total liabilities
     10,857       6,652       350       13,344       (3,852 )             27,351  
STOCKHOLDERS EQUITY:
             -       -       -       -       -       -  
Common Stock
     55       -       -       -       -       -       55  
Less treasury stock at cost
     (1,084 )     -       -       -       -       -       (1,084 )
Other comprehensive income
     12       -       -       -       -       -       12  
Additional paid-in capital
     49,274       1,269       -       -       3,852       (5,121 )     49,274  
Retained earnings
     20,535       (1,132 )     -       -       -       1,132       20,535  
     Total stockholders’ equity
     68,792       137       -       -       3,852       (3,989 )     68,792  
    $ 79,649     $ 6,789     $ 350     $ 13,344     $ 0     $ (3,989 )   $ 96,143  
 
 
 
Exhibit 10.27
NOTES TO: PROFORMA UNAUDITED CONDENSED COMBINED BALANCE SHEETS
APRIL 30, 2008

         
Transaction Amount
  
               
(1) Record intitial purchase price paid by Lakeland
         $ 13,344  
               
 (1a) Estimated transaction costs:
              
    Brazil tax on incoming capital
     50       -  
                 
    Estimated legal & accounting fees
     300       350  
                 
 (2) Record bank borrowing by Lakeland to cover cash out
             -  
                 
 (3) Record repayments of Qualytextil debt from purchase price proceeds
             (3,852 )
                 
(4) Consolidation entries serve to eliminate the investment in subsidiaries against the underlying net assets acquired of $137,000. Such acquired assets are adjusted for estimated fair value of real estate at closing resulting in a revaluation of $110,000. The difference is reflected as goodwill. The Company is in the process of identifying intangible assets arising from this transaction. The identified intangible assets if any will be assigned values and amortized over their useful lives for assets with finite lives. Intangible assets identified with infinite lives will be tested for impairment annually. The goodwill of $9,595,000 will be adjusted accordingly for the intangible assets recognized during this process.
             (137
(110		 )
)
                 
            $ 9,595