Syntec Optics Holdings, Inc 10-K for FY2023

Syntec Optics Holdings, Inc. (OPTX)

10-K 2024-05-23 For: 2023-12-31

Added on April 12, 2026

About this 10-K

Syntec Optics Holdings, Inc filed this 10-K on May 23, 2024, covering the fiscal year ended December 31, 2023 (FY2023).

Headline figures

Fiscal year ended December 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $29.44M; up 5.8% from $27.84M a year earlier
Net income: $1.98M; compared with a net loss of $434.57K a year earlier
Diluted EPS: $0.06; compared with -$0.01 a year earlier

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Delaware		87-0816957
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

515 Lee Rd.
Rochester, New York		14606
(Address of Principal Executive Offices)		(Zip Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.0001 per share	OPTX	The Nasdaq Capital Market
Redeemable Warrants, exercisable for common stock at an exercise price of $11.50 per share, subject to adjustment	OPTXW	The Nasdaq Capital Market

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

	Page
Part I	1

Item 1. Business	1

Item 1A. Risk Factors	15

Item 1B. Unresolved Staff Comments	29

Item 1C. Cybersecurity	29

Item 2. Properties	29

Item 3. Legal Proceedings	30

Item 4. Mine Safety Disclosures	30

Part II	30

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	30

Item 6. [Reserved]	30

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations	30

Item 7A. Quantitative and Qualitative Disclosures about Market Risk	40

Item 8. Financial Statements and Supplementary Data	40

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	40

Item 9A. Controls and Procedures	40

Item 9B. Other Information	40

Item 9C. Disclosure Regarding Foreign Jurisdiction that Prevent Inspections	40

Part III	41

Item 10. Directors, Executive Officers and Corporate Governance	41

Item 11. Executive Compensation	41

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	41

Item 13. Certain Relationships and Related Transactions, and Director Independence	41

Item 14. Principal Accountant Fees and Services	41

Part IV	41

Item 15. Exhibit and Financial Statement Schedules	41

Item 16. Form 10-K Summary	42

SIGNATURES	43

	●	our ability to recognize the anticipated benefits of our recent Business Combination (as defined herein), which may be affected by, among other things, the factors listed below;
	●	our ability to successfully increase market penetration into target markets;
	●	the failure of the addressable markets that we intend to target to grow as expected;
	●	the loss of any members of our senior management team or other key personnel;
	●	the loss of any relationships with key suppliers, including suppliers in China;
	●	the loss of any relationships with key customers;
	●	our ability to protect our patents and other intellectual property;
	●	the failure to successfully optimize solid-state cells or to produce commercially viable solid-state cells in a timely manner or at all, or to scale to mass production;
	●	changes in applicable laws or regulations;
	●	our ability to maintain the listing of our common stock on the Nasdaq Capital Market and Public Warrants (as defined herein) on the Nasdaq Capital Market;
	●	the possibility that we may be adversely affected by other economic, business and/or competitive factors (including an economic slowdown or inflationary pressures);
	●	the impact of the COVID-19 pandemic, including any mutations or variants thereof, and its effect on business and financial conditions;
	●	our ability to raise additional capital to fund our inorganic growth;
	●	our ability to generate revenue from future product sales and our ability to maintain profitability;
	●	the accuracy of our projections and estimates regarding our expenses, capital requirements, cash utilization, and need for additional financing;
	●	developments relating to our competitors and our industry;
	●	our ability to engage target customers and successfully retain these customers for future orders; and
	●	our current dependence on a single manufacturing facility.

	●	*Advanced manufacturing (+8%),* gains in this segment were led by lasers for materials processing while robotics and vision technologies maintained their momentum as did implementation of 3D printing/additive manufacturing. Photonics-based production tools including lasers, optical metrology, and machine vision combined with adoption of rapid prototyping and Industry 4.0 are driving big manufacturing changes in industries like aerospace and automobiles.

	●	*Semiconductor processing (+8%),* driven by demand for optical processing and metrology equipment. Opto-electronics and mobility, integrated photonics circuits are beginning to address applications that were typically addressed by integrated electronic circuits. POC Biosensing, terabit internet, lidar based radar, and telecom are areas that are being disrupted due to reduced cost, size, weight, and power consumption while still improving performance and reliability. Design, develop, and manufacturing processes are similar to micro-electronics. Integrated photonics is envisioned to play the role in industry 4.0 what electronic integrated circuits did in industry 3.0.

	●	*BioMedical (+13%),* growth in diagnostic imaging, digital pathology, in vitro diagnostics, and point-of-care diagnostics led broad-based gains across this segment. Food safety testing also saw a significant uptick. Looking ahead, cost-effective photonics-based diagnostic and therapeutic biomedical devices are achieving higher market penetration.

	●	*Defense, safety, and security (+10%),* driven by gains in more than 30 sub-segments combined with substantial upswings in video surveillance, perimeter security and sensing, and investment in equipment for directed energy systems. Infrared systems, hyperspectral imaging, and laser-based countermeasures are all deployed, while laser weapons are emerging as a real near-term possibility. We believe there may be increased demand for aiming, scoping, and targeting using optics and photonics.

○	*Diversity, Equity & Inclusion –* Our culture has benefitted from the diversity of our workforce from the very beginning. Inclusion and equity are “baked into the bricks” of our values, which our employees demonstrate every day. Our human resource department and all our corporate officers and directors have an open-door policy and are able to constructively communicate with employees to resolve issues when they arise.

○	*Collaboration –* As we grow, opportunities for cross-functional collaboration may not be as organic as they used to be. We have responded to that challenge by staying mindful and acting intentionally to gather cross-functional input on new initiatives and continuous improvement efforts.

○	*Continuous Improvement –* We apply continuous improvement measure to processes as well as people. We encourage professional development of our employees, through ongoing learning, credentialing, and collaboration with their industry peers.

	●	cease using, making, having made, selling, having sold, developing, having developed or importing products that incorporate the infringed proprietary techniques and intellectual property rights;

	●	pay substantial damages;

	●	obtain a license from the holder of the infringed proprietary techniques and intellectual property rights, which license may not be available on reasonable terms or at all; or

	●	redesign our processes or products, which may result in inferior products or processes.

	●	increased sales to customers with whom the Company has existing relationships;

	●	increased sales with our existing end markets;

	●	sales to additional adjacent end markets;

	●	the successful introduction of new products;

	●	our ability to implement planned automation and expansion efforts;

	●	continued supply from our carefully selected vendors;

	●	our ability to offset vendor price increases and any emerging inflationary price pressures through inventory management, volume-based supplier discounts and potential price increases to customers; and

	●	other factors, including our ability to obtain sufficient capital to sustain and grow our business, our ability to manage our growth and our ability to retain existing key management, integrate recent hires and attract, retain, and motivate qualified personnel.

	●	making it difficult for us to pay other obligations;

	●	increasing our cost of borrowing from other sources;

	●	making it difficult to obtain favorable terms for any necessary future financing for working capital, capital expenditures, investments, acquisitions, debt service requirements, or other purposes;

	●	restricting us from making acquisitions or causing us to make divestitures or similar transactions;

	●	requiring us to dedicate a substantial portion of our cash flow from operations to service and repay our indebtedness, reducing the amount of cash flow available for other purposes;

	●	placing us at a competitive disadvantage compared to our less leveraged competitors; and

	●	limiting our flexibility in planning for and reacting to changes in our business.

	●	incur additional indebtedness; and

	●	create or incur encumbrances or liens.

	●	your proportionate ownership interest in Syntec will decrease;

	●	the relative voting strength of each previously outstanding share of common stock may be diminished; or

	●	the market price of our shares of Syntec common stock may decline.

	●	changes in the valuation of our deferred tax assets and liabilities;

	●	expected timing and amount of the release of any tax valuation allowances;

	●	tax effects of stock-based compensation;

	●	costs related to intercompany restructurings;

	●	changes in tax laws, regulations or interpretations thereof; or

	●	lower than anticipated future earnings in jurisdictions where we have lower statutory tax rates and higher than anticipated future earnings in jurisdictions where we have higher statutory tax rates.

	●	Syntec Optics’ ability to engage target customers and successfully convert these customers into meaningful orders in the future;

	●	the size and growth of the potential markets for Syntec Optics’ products and its ability to serve those markets;

	●	the level of demand for any products, which may vary significantly;

	●	future accounting pronouncements or changes in its accounting policies; and

	●	macroeconomic conditions, both nationally and locally; and

	●	any other change in the competitive landscape of its industry, including consolidation among Syntec Optics’ competitors or partners.

	●	the Syntec Optics board of directors will be divided into three classes, with each class serving staggered three-year terms, which may delay the ability of stockholders to change the membership of a majority of our board of directors;

	●	the Syntec Optics board of directors has the exclusive right to expand the size of its board of directors and to elect directors to fill a vacancy created by the expansion of the board of directors or the resignation, death or removal of a director, which prevents stockholders from being able to fill vacancies on our board of directors;

	●	Syntec Optics stockholders may not act by written consent, which forces stockholder action to be taken at an annual or special meeting of stockholders;

	●	a special meeting of stockholders may be called only by a majority of the Syntec Optics board of directors, which may delay the ability of Syntec Optics stockholders to force consideration of a proposal or to take action, including the removal of directors;

	●	the second amended and restated certificate of incorporation prohibits cumulative voting in the election of directors, which limits the ability of minority stockholders to elect director candidates;

	●	the Syntec Optics board of directors may alter certain provisions of the Syntec Optics amended and restated bylaws without obtaining stockholder approval;

	●	the approval of the holders of at least sixty-six and two-thirds percent (66 2⁄3%) of the Syntec Optics common shares entitled to vote at an election of the Syntec Optics board of directors is required to adopt, amend, alter or repeal our amended and restated bylaws or amend, alter, change or repeal or adopt any provision of the second amended and restated certificate of incorporation inconsistent with the provisions of the Syntec Optics second amended and restated certificate of incorporation regarding the election and removal of directors;

	●	stockholders must provide advance notice and additional disclosures to nominate individuals for election to the Syntec Optics board of directors or to propose matters that can be acted upon at a stockholders’ meeting, which may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain voting control of the Syntec Optics common stock; and

	●	the Syntec Optics board of directors is authorized to issue shares of preferred stock and to determine the terms of those shares, including preferences and voting rights, without stockholder approval, which could be used to significantly dilute the ownership of a hostile acquirer.

	●	not being required to have an independent registered public accounting firm audit Syntec Optics’ internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act;

	●	reduced disclosure obligations regarding executive compensation in Syntec Optics’ periodic reports and annual report on Form 10-K; and

	●	exemptions from the requirements of holding non-binding advisory votes on executive compensation and stockholder approval of any golden parachute payments not previously approved.

	●	the last day of the fiscal year in which Syntec Optics has at least $1.07 billion in annual revenue;

	●	the date Syntec Optics qualifies as a “large accelerated filer,” with at least $700.0 million of equity securities held by non-affiliates;

	●	the date on which Syntec Optics has issued, in any three-year period, more than $1.0 billion in non- convertible debt securities; or

	●	the last day of the fiscal year ending after the fifth anniversary of the OmniLit IPO.

	Years ended December 31,
	2023			% Net Sales			2022			% Net Sales
	(in thousands)
Net Sales	$	29,441,180			100	%		27,839,312			100	%
Cost of Goods Sold		21,520,189			73	%		21,713,220			78	%
Gross profit		7,920,991			27	%		6,126,092			22	%
General and administrative		6,379,879			22	%		6,654,326			24	%
Income (Loss) From Operations		1,541,112			5	%		(528,234	)		(2	)%
Other Income (Expense)
Other Income		370,914			1	%		274,810			1	%
Interest Income (Expense)		(654,765	)		(2	)%		(335,974	)		(1	)%
Total Other Income (Expense)		(283,851	)		(1	)%		(61,164	)		(0	)%
Income (Loss) Before Taxes		1,257,261			4	%		(589,398	)		(2	)%
Income Tax Expense (Benefit from)		(719,172	)		(2	)%		(154,829	)		(1	)%
Net Income (Loss)	$	1,976,433			6	%	$	(434,569	)		(2	)%

	2023			2022
Net (Loss) Income	$	1,976,433		$	(434,569	)
Depreciation & Amortization		2,781,735			3,151,448
Interest Expenses		642,314			325,127
Taxes		(719,172	)		(154,829	)
Non-Recurring Items
Business Interruption Adjustment		-			600,292
Other Income- Sale of Equipment & Accessories		(10,068	)		-
Transaction Filing Fees		344,752			102,732
Non-Recurring Contributions, Management Fees & Expenses		318,334			910,088
Adjusted EBITDA	$	5,334,328		$	4,500,289

	Years Ended
	December 31,
	2023			2022
Net Cash Provided by Operating Activities	$	2,792,222		$	1,928,715
Net Cash Used in Investing Activities		(1,921,182	)		(685,428	)
Net Cash Provided by (Used in) Financing Activities		761,023			(3,020,546	)

		Years
Machinery and Equipment		7
Building and Leasehold Improvements		14 - 15 and/or Lesser of Useful Life or Lease Term
Office Furniture and Equipment		3 - 5
Tooling		3 - 10
Vehicles		5

	1.	We lack documentation of formal internal control process and controls including lack of review of journal entries.
	2.	We lack necessary corporate accounting resources to maintain adequate segregation of duties.
	3.	We lack timely reconciliation controls in the areas of accounts payable, accrued legal expenses, and inventory.
	4.	We lack controls related to proper cut-off of costs of goods sold and other income from business interruption claim.
	5.	We lack control related to identification and disclosure of related party transactions.
	6.	We lack control related to proper fair value methodology utilized for valuation of complex financial instrument in connection with contingent earnout arrangement.
	7.	We lack the necessary information technology (“IT”) general controls infrastructure in the areas of user access and program change-management due to insufficient documentation and training, and inadequate IT risk assessment process. Additionally, we lack controls around the review of SOC-1 reports and lack of cyber security related controls.

(a)	The following documents are filed as part of this report:

1.	Financial Statements

Exhibit No.		Description

2.1#		Agreement and Plan of Merger, dated as of May 9, by and among OmniLit Acquisition Corp., OmniLit Merger Sub, Inc. and Syntec Optics Group, Inc. (included as Annex A to the proxy statement/prospectus).
3.5		Form of Second Amended and Restated Certificate of Incorporation (to be effective upon consummation of the Merger) (included as Annex B to the proxy statement/prospectus).
3.6		Form of Amended and Restated Bylaws (to be effective upon consummation of the Merger) (included as Annex C to the proxy statement/prospectus).
4.4		Warrant Agreement, dated as of November 8, 2021, between OmniLit Acquisition Corp. and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 4.4 of OmniLit Acquisition Corp.’s Amendment No. 1 to Form S-1 filed with the SEC on November 1, 2021).
4.6		Form of Amended and Restated Registration Rights Agreement (to be effective upon consummation of the Merger) (included as Annex D to the proxy statement/prospectus).
10.4		Sponsor Support Agreement, dated as of May 9, 2023, by and among OmniLit Sponsor, LLC, Syntec Optics and OmniLit Sponsor, LLC (included as Annex E to the proxy statement/prospectus).
10.5		OmniLit Combination 2023 Equity Incentive Plan (included as Annex F to the proxy statement/prospectus).
10.6		New Syntec Optics’ Employee Stock Purchase Plan (included as Annex G to the proxy statement/prospectus).
10.7		Form of Indemnity Agreement. (incorporated by reference to Exhibit 10.7 of OmniLit Acquisition Corp.’s Amendment No. 1 to Form S-1 filed with the SEC on November 1, 2021).
10.8		Form of Earnout RSU Award Agreement
10.12		Credit Agreement
21.1		List of Subsidiaries.
24*		Power of Attorney (included on signature page to the Annual Report on Form 10-K).
31.1*		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32*		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
97.1		Policy for Recovery of Erroneously Awarded Compensation
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*		Cover Page Interactive Data File (embedded within the Inline XBRL document).

*	Filed herewith.
#	Portions of schedules and exhibits to the agreement have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule and/or exhibit will be furnished to the Securities and Exchange Commission upon request.

	SYNTEC OPTICS HOLDINGS, INC.

	By:	/s/ Al Kapoor
		Chairman and Chief Executive Officer
		(Principal Executive Officer)

	By:	/s/ Robert O. Nelson II
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

Signature	Title	Date

/s/ Al Kapoor	Chairman and Chief Executive Officer	May 23, 2024
Al Kapoor	(Principal Executive Officer)

/s/ Robert O. Nelson II	Chief Financial Officer	May 23, 2024
Robert O. Nelson II	(Principal Financial and Accounting Officer)

/s/ Walter A. Bishop	Director	May 23, 2024
Walter A. Bishop

/s/ Albert A. Manzone	Director	May 23, 2024
Albert A. Manzone

/s/ Brent D. Rosenthal	Director	May 23, 2024
Brent D. Rosenthal

Report of Independent Registered Public Accounting Firm (PCAOB ID# 688)	F-2
Report of Independent Registered Public Accounting Firm (PCAOB ID# 243)	F-3
Consolidated Balance Sheets as of December 31, 2023 and 2022	F-4
Consolidated Statements of Operations for the years ended December 31, 2023 and 2022	F-5
Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2023 and 2022	F-6
Consolidated Statements of Cash Flows for the years ended December 31, 2023 and 2022	F-7
Notes to Consolidated Financial Statements	F-8


	2023		2022
ASSETS
Current Assets
Cash	$	2,158,245		526,182
Accounts Receivable, Net		6,800,064		5,925,724
Inventory		5,834,109		3,626,360
Prepaid Expenses and Other Assets		359,443		689,385

Total Current Assets		15,151,861		10,767,651

Property and Equipment, Net		11,101,052		11,624,819

Operating Lease Right of Use Assets, Net		-		63,227

Intangible Assets, Net		295,000		-

Total Assets	$	26,547,913	$	22,455,697

LIABILITIES AND STOCKHOLDER’S EQUITY

Current Liabilities
Accounts Payable	$	3,042,315	$	412,058
Accrued Expenses		1,071,257		539,966
Federal Income Tax Payable		370,206		108,738
Deferred Revenue		-		348,095
Line of Credit		6,537,592		6,400,000
Current Maturities of Debt Obligations		362,972		1,624,851
Current Maturities of Operating Lease Liabilities		-		13,374

Total Current Liabilities		11,384,342		9,447,082

Long-Term Liabilities
Long-Term Debt Obligations		2,024,939		1,913,538
Long-Term Operating Lease Liabilities		-		49,853
Due to Related Parties		-		11,767
Deferred Grant Revenue		-		300,000
Deferred Income Taxes		74,890		1,274,104

Total Long-Term Liabilities		2,099,829		3,549,262

Total Liabilities		13,484,171		12,996,344

Commitments and Contingencies (Note 22)		-		-

Stockholder’s Equity
CL A Common Stock, Par value $.0001 per share; 121,000,000 authorized; 36,688,266 issued and outstanding as of December 31, 2023 31,600,000 issued and outstanding as of December 31, 2022		3,669		3,160
Additional Paid-In Capital		1,927,204		237,692
Retained Earnings		11,132,869		9,218,501

Total Stockholder’s Equity		13,063,742		9,459,353

Total Liabilities and Stockholder’s Equity	$	26,547,913	$	22,455,697

	Shares		Amount		Capital			Earnings			Stockholder			Receivable			Total
					Additional									Stock
	Common Stock				Paid-In			Retained			Loan to			Subscription
	Shares		Amount		Capital			Earnings			Stockholder			Receivable			Total

Balances, January 1, 2022		3,499	$	4	$	240,848		$	15,615,868		$	(5,505,957	)	$	(176,071	)	$	10,174,692

Retroactive application of recapitalization		31,596,501	$	3,156	$	(3,156	)		-			-			-			-

Distributions		-		-		-			(5,962,798	)		5,505,957			176,071			(280,770	)

Net Loss		-		-		-			(434,569	)		-			-			(434,569	)

Balances, December 31, 2022		31,600,000	$	3,160	$	237,692		$	9,218,501		$	-		$	-		$	9,459,353
Balances		31,600,000	$	3,160	$	237,692		$	9,218,501		$	-		$	-		$	9,459,353

Distributions		-	$	-	$	-		$	(62,065	)	$	-		$	-		$	(62,065	)

Reverse capitalization, net of transaction costs (See Note 3)		5,088,266	$	509	$	1,689,512			-			-			-		$	1,690,021

Net Income		-		-		-			1,976,433			-			-			1,976,433
Net Income (loss)		-		-		-			1,976,433			-			-			1,976,433

Balances, December 31, 2023		36,688,266	$	3,669	$	1,927,204		$	11,132,869		$	-		$	-		$	13,063,742
Balances		36,688,266	$	3,669	$	1,927,204		$	11,132,869		$	-		$	-		$	13,063,742

	2023			2022
Cash Flows From Operating Activities
Net Income (Loss)	$	1,976,433		$	(434,569	)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:
Depreciation and Amortization		2,769,284			3,140,601
Amortization of Debt Issuance Costs		12,451			10,847
Grant Revenue Income		(300,000	)		-
Change in Allowance for Expected Credit Losses		(25,820	)		-
Change in Reserve for Obsolescence		124,911			(331,881	)
Deferred Income Taxes		(1,199,214	)		(507,913	)
(Increase) Decrease in:
Accounts Receivable		(848,520	)		(756,520	)
Inventory		(2,332,660	)		1,267,263
Federal Income Tax Receivable		-			100,000
Prepaid Expenses and Other Assets		340,298			(104,407	)
Increase (Decrease) in:
Accounts Payables and Accrued Expenses		2,493,826			(597,709	)
Federal Income Tax Payable		129,328			108,738
Deferred Revenue		(348,095	)		34,265

Net Cash Provided By Operating Activities		2,792,222			1,928,715

Cash Flows From Investing Activities
Borrowings (Repayments) from Related Parties, Net		-			40,837
Purchases of Property and Equipment		(1,921,182	)		(1,241,637	)
Proceeds from Disposal of Property and Equipment		-			515,372

Net Cash Used in Investing Activities		(1,921,182	)		(685,428	)

Cash Flows From Financing Activities
Borrowings (Repayments) on Line of Credit, Net		137,592			(1,600,000	)
Borrowing on Debt Obligations		1,745,573			-
Repayments on Debt Obligations		(2,908,502	)		(917,400	)
Repayments on Finance Lease Obligations		-			(222,376	)
Cash proceeds from OLIT		45,946			-
Net proceeds from OLIT Trust		1,802,479			-
Distributions		(62,065	)		(280,770	)

Net Cash Provided By (Used in) Financing Activities		761,023			(3,020,546	)

Net Increase (Decrease) in Cash		1,632,063			(1,777,259	)

Cash - Beginning		526,182			2,303,441

Cash - Ending	$	2,158,245		$	526,182

Supplemental Cash Flow Disclosures:

Cash Paid for Interest	$	652,778		$	319,056

Cash Paid for Taxes	$	283,561		$	159,968

Supplemental Disclosures of Non-Cash Investing Activities:
Asset Acquired and Included in Accounts Payable and Accrued Expenses	$	642,547		$	23,213
Loan to Stockholder Settled	$	-		$	5,505,957
Stock Subscription Receivable Settled		-			176,071
Non-Cash Distributions	$	-		$	5,682,028

	●	Identify the contract with a customer
	●	Identify the performance obligations in the contract
	●	Determine the transaction price
	●	Allocate the transaction price to the performance obligations in the contract
	●	Recognize revenue when or as performance obligations are satisfied

	2023		2022
Products	$	25,736,915	$	26,075,627
Custom Tooling		1,382,620		1,390,210
Non-Recurring Engineering		2,321,645		373,475

Total	$	29,441,180	$	27,839,312

	2023		2022
Consumer	$	7,026,621	$	8,973,171
Communication		5,321,371		-
Defense		7,457,372		7,410,224
Medical		9,635,816		11,455,917

Total	$	29,441,180	$	27,839,312