The next dialogue and evaluation of our consolidated monetary place and outcomes of operations for the years ended December 31, 2022 and 2021 must be learn together with the consolidated monetary statements and notes associated thereto included elsewhere on this report and with the unaudited professional forma abstract mixed monetary data included in Merchandise 8.
Basic Overview
US Lighting Group, Inc. is a mum or dad firm consisting of 4 subsidiaries – Cortes Campers, LLC, a model of high-end molded fiberglass campers, Futuro Homes, LLC, centered on the design and sale of molded fiberglass houses, Fusion X Marine, LLC, a high-performance boat designer, and MIGMarine Company, a composite manufacturing firm that produces proprietary molded fiberglass merchandise for our different traces of enterprise.
On 11 January 2021 we shaped Cortes Campers to function our new model of modern journey trailers. Throughout the second a part of 2021, we invested closely in analysis and improvement in addition to manufacturing planning for the 17-foot camper and commenced promoting campers in early 2022. Per As of December 31, 2022, our income was pushed by shipments of fiberglass RVs marketed underneath the Cortes Campers model and 2022 monetary outcomes mirror income of $1,083,114 generated by Cortes Campers.
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On January 12, 2022, we shaped Futuro Homes, LLC to design, market and distribute molded fiberglass houses. Throughout 2022, Futuro Homes engaged within the development and improvement of our first “UFO” themed residence mannequin impressed by the unique Futuro home designed by Finnish architect Matti Suuronen. Per On 31 December 2022, the division had not generated income.
We plan to increase our manufacturing footprint, enhance manufacturing methods and develop extra merchandise in RV, marine and composite housing. Present R&D efforts are aimed toward future towable motorhome fashions underneath the Cortes Campers model in addition to prefabricated housing segments.
On August 5, 2022, we acquired Mig Marine from Paul Spivak, our former president and a big shareholder. The Mig Marine acquisition has been decided to be a mix of entities underneath frequent management that resulted in a change in reporting entity. Accordingly, our monetary outcomes have been restated to incorporate the monetary outcomes of Mig Marine for the present and prior intervals as if Mig Marine had at all times been consolidated with USLG. Mig Marine’s belongings and liabilities have been recorded in our consolidated assertion of economic place on the vendor’s historic e book worth.
On Could 14, 2021, we offered chosen belongings of Intellitronix Company to Ohio INTX Cooperative, an Ohio cooperative affiliation. In accordance with the provisions of ASC 205-20, Presentation of Monetary Statements, we’ve got individually reported the belongings and liabilities, revenue and bills associated to Intellitronnix as discontinued operations.
Outcomes of Operations
12 months ended 31 December 2022 in comparison with 12 months ended 31 December 2021
Gross sales
Complete gross sales from persevering with operations for the 12 months ended December 31, 2022 have been $1,083,114 in comparison with $67,000 for the 12 months ended December 31, 2021, a rise of $1,016,000 or greater than 1,500%. The rise in gross sales is attributed to new gross sales by means of our Cortes Campers subsidiary. Within the present interval, all gross sales income was from Cortes Camper’s subsidiary.
Value of Items Bought
Value of products offered from persevering with operations for the 12 months ended December 31, 2022 was $1,217,196 in comparison with $0 for the 12 months ended December 31, 2021. The December 2022 items offered relate to RV gross sales from the Firm’s Cortes Campers subsidiary .
Working Bills
Promoting, normal and administrative (“SG&A”) bills from persevering with operations have been $1,603,565 for the 12 months ended December 31, 2022, in comparison with $1,109,000 for the 12 months ended December 31, 2021, a rise of $494,566. The rise in comparison with the earlier 12 months is primarily attributable to further administrative workers, auditing {and professional} charges in reference to our expanded actions.
Product improvement prices for the 12 months ended December 31, 2022 have been $0 in comparison with $40,000 for the 12 months ended December 31, 2021. The lower is because of the firm’s shift in focus to full manufacturing of RV, marine, composite housing, merchandise relatively than on improvement of those product traces, which was the main focus in earlier years. Prices associated to product improvement for the 12 months 2022 have been capitalized in inventories and completed items.
Different Revenue / Expense
Throughout the 12 months ended December 31, 2022, we had complete different bills of $374,673, together with: unrealized lack of $306,281, curiosity revenue of $4,232 and $23,422 acquire on disposal of mounted belongings. Throughout the 12 months ended December 31, 2021, we had mixture different revenue of $396,000. We had different revenue of $70,000, debt settlement of $52,000, an unrealized acquire of $52,000, realized acquire on investments of $121,000, curiosity revenue of $15,000, curiosity expense of $9,000, and associated social gathering curiosity expense of $104,000.
Internet Revenue (Loss)
We had a internet loss from persevering with operations of $2,112,320 for the 12 months ended December 31, 2022, in comparison with $686,000 for the 12 months ended December 31, 2021. Our internet loss from persevering with operations decreased within the present 12 months primarily on account of our different revenue objects reminiscent of mentioned above.
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Liquidity and capital sources
Modifications in Money Flows
Internet money offered by working actions for the 12 months ended December 31, 2022 was $(1,537,657) in comparison with $2,983,000, which included internet money from discontinued operations of $4,002,000, for the 12 months ended December 31, 2021. The detrimental internet money offered by working actions for the 12 months ended 31 December 2022 was primarily on account of payables to associated events for the acquisition of Mig Marine.
Internet money utilized in funding actions was approx. $816,089 for the 12 months ended December 31, 2022, in comparison with $1,034,000 for the 12 months ended December 31, 2021. Throughout the 12 months ended December 31, 2022, the Firm bought property and gear for $644,630. We additionally obtained $120,000 from the sale of mounted belongings and $1,340,719 of proceeds from the sale of buying and selling securities. Internet liquidity utilized in funding actions was approx. $1,034,000 for the 12 months ended December 31, 2021 and relates primarily to investing actions.
Internet money offered by financing actions for the 12 months ended December 31, 2022 was $557,097 and included proceeds of $140,209 obtained within the non-public placement of frequent inventory, $1,150 from frequent inventory compensation, $629,857 from the issuance of notes payable to associated social gathering, $192,918 reimbursement of loans payable, offset by $407,037 in reimbursement of associated social gathering loans. Internet money utilized in financing actions for the 12 months ended December 31, 2021 was $1,771,000 and included $301,000 of proceeds from the non-public placement of frequent inventory and $143,000 of proceeds from loans payable. These proceeds have been offset by the reimbursement of $103,000 of loans payable and the reimbursement of $2,112,000 of notes payable to a associated social gathering.
We’ve got the next excellent loans as of 31 December 2022:
On August 5, 2022, the Firm acquired MigMarine Company (“Mig Marine”) from the Firm’s former President and majority shareholder. The corporate agreed to pay $6,833,333 in change for the entire shares in Mig Marine. A ten % (10%) deposit of $638,333 is due on or earlier than August 5, 2023. The steadiness is represented by a $6,195,000 promissory notice, 60-month notice due August 5, 2027, requiring month-to-month funds of $120,488, bearing an rate of interest of 6.25% and secured by Mig Marine’s belongings. The mortgage steadiness at December 31, 2022, together with accrued curiosity, was $7,004,629. Throughout the 12 months ended December 31, 2022, the Firm accrued curiosity of $126,296 and made no principal and curiosity funds, leaving a steadiness of accrued curiosity of solely $126,296 per 31 December 2022.
December 31, December 31,
2022 2021
Gear mortgage (a) $ 259,450 $ 260,000
Automobile loans (b) 59,671 63,000
Working capital (c) 122,135 25,000
Convertible notice 0 58,000
Complete loans payable 441,256 426,000
Loans payable, present portion (140,905 ) (344,000 )
Loans Payable Much less Present Portion $280,000 $82,000
one. On 26 August 2020, the Firm entered right into a mortgage settlement with Apex
Business Capital Corp. within the principal quantity of $265,339 with curiosity at 9.49% every year and due on September 10, 2030. The mortgage requires 100 nineteen (119) month-to-month funds of $2,322, with a ultimate balloon cost on the 100 twentieth (120) month, or September 10, 2030, of $224,835. The mortgage is assured by the Firm, the Firm's former Chief Government Officer, and secured by the Firm's actual property. The mortgage steadiness on December 31, 2022, was $259,450. Throughout the 12 months ended December 31, 2022, the Firm made principal funds of $3,084 leaving a complete of $259,450 owed at December 31, 2022.
b. The corporate purchases autos for workers in addition to analysis and improvement
actions. Typically, autos are offered or traded in on the finish of the automobile mortgage interval. The mixture automobile mortgage steadiness on two autos was $59,671 at December 31, 2022, with an unique mortgage interval of 72 to 144 months, and rates of interest of zero % to 10.99%.
c. On November 7, 2022, the corporate entered right into a $150,000 mortgage with Recent
Funding associated to the working capital for the manufacturing of campers. The mortgage
requires month-to-month funds over the time period of 12 months, has an rate of interest of
38% every year, and is secured by the bulk shareholder. The mortgage steadiness on
December 31, 2022, was $122,135. Throughout the 12 months ended December 31, 2022, the
Firm made principal funds of $23,369, and curiosity funds of $61,497.
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Essential accounting insurance policies and estimates
Administration’s dialogue and evaluation of our monetary place and outcomes of operations relies on our monetary statements, that are ready in accordance with typically accepted accounting rules in america. The preparation of those monetary statements requires administration to make estimates and judgments that have an effect on the reported quantities of belongings, liabilities, revenue and bills and associated disclosure of contingent belongings and liabilities. Administration repeatedly evaluates its estimates, together with these associated to the impairment of long-lived belongings, together with intangible belongings with finite lives, accrued liabilities, honest worth of warrant derivatives and sure prices. We base our estimates on historic expertise and on varied different assumptions that we imagine are affordable within the circumstances, the outcomes of which give a foundation for making judgments concerning the carrying quantity of belongings and liabilities that aren’t readily obvious from different sources. Precise outcomes could differ materially from these estimates underneath varied assumptions or situations.
Our important accounting practices are described in additional element in notice 2 to our monetary statements. The preparation of economic statements in accordance with typically accepted accounting rules in america requires administration to make estimates and assumptions that have an effect on the reported quantities of belongings, liabilities, revenue and bills and the associated details about contingent belongings and liabilities. Precise outcomes could differ from these estimates underneath varied assumptions or situations. In our opinion, the next important accounting insurance policies are topic to estimates and judgments used within the preparation of our consolidated monetary statements:
Newest monetary statements
See notice 2 within the annual accounts for a overview of the most recent monetary bulletins.
Off-balance sheet preparations
We’ve got no off-balance sheet preparations which have or might moderately be anticipated to have a present or future impact on our monetary situation, adjustments in monetary situation, revenues or bills, outcomes of operations, liquidity, capital expenditures or capital sources which are materials to buyers.
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