Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.22.1
Summary of Significant Accounting Policies (Tables)
9 Months Ended
Sep. 25, 2021
Accounting Policies [Abstract]  
Summary of estimated useful lives of property Plant And equipment
The estimated useful lives for each major depreciable classification of property and equipment are as follows
Manufacturing machinery and equipment
3-7 years
Office furniture and equipment
3-7 years
Vehicles
3-10 years
Leasehold improvements
3-20 years
Fair Value Measurement Inputs and Valuation Techniques The following assumptions were used for the valuation of the private warrants:
Warrant term (yrs.) 4.7 
Volatility
30.4  %
Risk-free rate
0.91  %
Dividend yield
—  %
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The change in the fair value of warrant liabilities is as follows:

Balance at June 26, 2021 $ 39,077,500 
Change in fair value of warrants
(3,552,500)
Balance at September 25, 2021
$ 35,525,000 
Schedule of Error Corrections and Prior Period Adjustments
Impact of the Restatement
The table below present the effects of the restatement on the Company's unaudited consolidated balance sheet as of September 25, 2021:

September 25, 2021
As Previously
Reported
Adjustments As Restated
ASSETS
Current Assets
Cash $ 9,221,607  $ —  $ 9,221,607 
Accounts receivable, less allowance for doubtful accounts; $4,366,000 and $4,485,000, at September 25, 2021 and December 26, 2020, respectively
101,680,287  —  101,680,287 
Costs and estimated earnings in excess of billing on uncompleted contracts 23,602,670  —  23,602,670 
Inventory, net 52,830,737  —  52,830,737 
Prepaid expenses 8,851,831  —  8,851,831 
Other current assets 3,505,602  —  3,505,602 
Total current assets $ 199,692,734  $   $ 199,692,734 
Property and equipment, net 49,786,563  —  49,786,563 
Customer relationships, net 319,339,643  —  319,339,643 
Tradename and trademarks 107,958,402  —  107,958,402 
Other intangibles, net 18,380,776  —  18,380,776 
Goodwill 369,607,198  —  369,607,198 
Deferred tax asset, net 63,616,900  —  63,616,900 
Other assets 1,992,783  —  1,992,783 
Total assets $ 1,130,374,999  $   $ 1,130,374,999 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable $ 56,817,373  $ —  $ 56,817,373 
Billing in excess of costs and estimated earnings on uncompleted contracts 25,759,923  —  25,759,923 
Current maturities of long-term debt 8,111,212  —  8,111,212 
Other accrued expenses 62,209,935  (478,922) 61,731,013 
Total current liabilities $ 152,898,443  $ (478,922) $ 152,419,521 
Line of credit 19,350,803  —  19,350,803 
Long-term debt, net 706,927,275  —  706,927,275 
Deferred tax liability —  —  — 
Derivative warrant liability 35,525,000  (7,831,250) 27,693,750 
Other long-term liabilities 4,234,276  —  4,234,276 
Total liabilities $ 918,935,797  $ (8,310,172) $ 910,625,625 
STOCKHOLDERS’ EQUITY
Common Stock, 825,000,000 shares authorized, $.0001 par value, 138,384,360 and 66,145,633 shares issued and outstanding at September 25, 2021 and December 26, 2020, respectively 13,838  —  13,838 
Additional paid in capital 231,407,780  13,263,645  244,671,425 
Accumulated other comprehensive loss (1,123,039) —  (1,123,039)
Accumulated deficit (18,859,377) (4,953,473) (23,812,850)
Total stockholders’ equity $ 211,439,202  $ 8,310,172  $ 219,749,374 
Total liabilities and stockholders’ equity $ 1,130,374,999  $   $ 1,130,374,999 
The tables below present the effects of the restatement on the unaudited consolidated statements of operations and comprehensive income for the three and nine months ended September 25, 2021:

Three Months Ended September 25, 2021
As Previously
Reported
Adjustments As Restated
REVENUE
Sales of product $ 155,669,772  $ —  $ 155,669,772 
Sales of services 32,120,153  —  32,120,153 
Total revenue 187,789,925  —  187,789,925 
Cost of Sales 125,551,395  —  125,551,395 
GROSS PROFIT 62,238,530  —  62,238,530 
OPERATING EXPENSE
Selling and marketing 12,065,859  —  12,065,859 
General and administrative 24,947,491  —  24,947,491 
Contingent consideration and earnout fair value adjustments —  —  — 
Operating Expenses 37,013,350  —  37,013,350 
INCOME FROM OPERATIONS 25,225,180  —  25,225,180 
Interest expense (7,663,536) —  (7,663,536)
Other income (expense) 90,873  —  90,873 
Change in fair value of derivative warrant liabilities 3,552,500  (2,281,625) 1,270,875 
Other Expense, Net (4,020,163) (2,281,625) (6,301,788)
INCOME (LOSS) BEFORE TAXES 21,205,017  (2,281,625) 18,923,392 
Provision (benefit) for Income Taxes 3,527,275  (145,506) 3,381,769 
NET INCOME (LOSS) $ 17,677,742  $ (2,136,119) $ 15,541,623 
Other Comprehensive Income (Loss) (1,169,565) —  (1,169,565)
COMPREHENSIVE INCOME (LOSS) $ 16,508,177  $ (2,136,119) $ 14,372,058 
Net income (loss) attributable to common stockholders $ 17,677,742  $ (2,136,119) $ 15,541,623 
Weighted-average shares outstanding, basic and diluted (Note 15)
Basic 138,384,284  —  138,384,284 
Diluted 142,840,792  —  142,840,792 
Net income (loss) per share, basic and diluted (Note 15)
Basic $ 0.13  $ (0.02) $ 0.11 
Diluted $ 0.10  $ —  $ 0.10 
Nine Months Ended September 25, 2021
As Previously
Reported
Adjustments As Restated
REVENUE
Sales of product $ 417,922,304  $ —  $ 417,922,304 
Sales of services 96,874,278  —  96,874,278 
Total revenue 514,796,582  —  514,796,582 
Cost of Sales 340,070,342  —  340,070,342 
GROSS PROFIT 174,726,240  —  174,726,240 
OPERATING EXPENSE
Selling and marketing 31,906,155  —  31,906,155 
General and administrative 78,318,621  3,150,770  81,469,391 
Contingent consideration and earnout fair value adjustments 686,700  —  686,700 
Operating Expenses 110,911,476  3,150,770  114,062,246 
INCOME (LOSS) FROM OPERATIONS 63,814,764  (3,150,770) 60,663,994 
Interest expense (23,265,333) —  (23,265,333)
Other income (expense) (2,387,997) —  (2,387,997)
Change in fair value of derivative warrant liabilities 1,624,000  (2,281,625) (657,625)
Other Expense, Net (24,029,330) (2,281,625) (26,310,955)
INCOME (LOSS) BEFORE TAXES 39,785,434  (5,432,395) 34,353,039 
Provision (benefit) for Income Taxes 6,265,664  (478,922) 5,786,742 
NET INCOME (LOSS) $ 33,519,770  $ (4,953,473) $ 28,566,297 
Other Comprehensive Income (Loss) (895,879) —  (895,879)
COMPREHENSIVE INCOME (LOSS) $ 32,623,891  $ (4,953,473) $ 27,670,418 
Net income (loss) attributable to common stockholders $ 33,519,770  $ (4,953,473) $ 28,566,297 
Weighted-average shares outstanding, basic and diluted (Note 15)
Basic 95,179,726  —  95,179,726 
Diluted 97,828,380  —  97,828,380 
Net income (loss) per share, basic and diluted (Note 15)
Basic $ 0.35  $ (0.05) $ 0.30 
Diluted $ 0.33  $ (0.03) $ 0.30 

The table below present the effects of the restatement on the segment income from operations for the nine months ended September 25, 2021:

Nine Months Ended September 25, 2021
As Previously
Reported
Adjustments As Restated
Income From Operations
Janus North America $ 60,884,392  $ 3,993,943  $ 64,878,335 
Janus International 2,881,576  (7,144,713) (4,263,137)
Eliminations 48,796  —  48,796 
Total Segment Operating Income (Loss) $ 63,814,764  $ (3,150,770) $ 60,663,994 

The tables below present the effects of the restatement on the consolidated statements of changes in stockholders’ equity:
As Reported
Class B
Common Units
Class A
Preferred Units
Common Stock Additional paid-in capital Accumulated Other Comprehensive Income (Loss) Accumulated
Deficit
Total
Unit Amount Unit Amount Shares Amount
Balance as of December 26, 2020 4,478  $ 261,425  189,044  $ 189,043,734    $   $   $ (227,160) $ (48,205,174) $ 140,872,825 
Balance as of Retroactive application of the recapitalization (4,478) (261,425) (189,044) (189,043,734) 66,145,633  6,615  189,298,544  —  —  — 
Balance as of December 26, 2020, as adjusted   $     $   66,145,633  $ 6,615  $ 189,298,544  $ (227,160) $ (48,205,174) $ 140,872,825 
Vesting of Midco LLC class B units —  —  —  —  111,895  11  51,865  —  —  51,876 
Distributions to Class A preferred units —    —  —  —  —  —  —  (95,883) (95,883)
Cumulative translation adjustment —    —  —  —  —  —  310,768  —  310,768 
Net income —  —  —  —  —  —  —  —  14,718,821  14,718,821 
Balance as of March 27, 2021, as adjusted   $     $   66,257,528  $ 6,626  $ 189,350,409  $ 83,608  $ (33,582,236) $ 155,858,407 
Vesting of Midco LLC class B units         4,012,872  401  2,058,822      2,059,223 
Issuance of PIPE Shares —    —  —  25,000,000  2,500  249,997,500  —  —  250,000,000 
Issuance of common stock upon merger, net of transaction costs, earn out, and merger warrant liability —    —  —  41,113,850  4,111  226,939,423  —  —  226,943,534 
Issuance of earn out shares to common stockholders —    —  —  2,000,000  200  26,479,800  —  —  26,480,000 
Distributions to Janus Midco, LLC unitholders             (541,710,278)     (541,710,278)
Distributions to Class A preferred units                 (4,078,090) (4,078,090)
Deferred Tax Asset             78,290,839      78,290,839 
Cumulative translation adjustment               (37,082)   (37,082)
Net income                 1,123,207  1,123,207 
Balance as of June 26, 2021   $     $   138,384,250  $ 13,838  $ 231,406,515  $ 46,526  $ (36,537,119) $ 194,929,760 
Warrant Redemption —  —  —  —  110  —  1,265  —  —  1,265 
Cumulative translation adjustment —  —  —  —  —  —  —  (1,169,565) —  (1,169,565)
Net income —  —  —  —  —  —  —  —  17,677,742  17,677,742 
Balance as of September 25, 2021   $     $   138,384,360  $ 13,838  $ 231,407,780  $ (1,123,039) $ (18,859,377) $ 211,439,202 
Adjustments
Class B
Common Units
Class A
Preferred Units
Common Stock Additional paid-in capital Accumulated Other Comprehensive Income (Loss) Accumulated
Deficit
Total
Unit Amount Unit Amount Shares Amount
Balance as of December 26, 2020 —  $ —  —  $ —  —  $ —  $ —  $ —  $ —  $ — 
Balance as of Retroactive application of the recapitalization —  —  —  —  —  —  —  —  —  — 
Balance as of December 26, 2020, as adjusted   $     $     $   $   $   $   $  
Vesting of Midco LLC class B units —  —  —  —  —  —  —  —  —  — 
Distributions to Class A preferred units —    —  —  —  —  —  —  —  — 
Cumulative translation adjustment —    —  —  —  —  —  —  —  — 
Net income —  —  —  —  —  —  —  —  —  — 
Balance as of March 27, 2021, as adjusted   $     $     $   $   $   $   $  
Vesting of Midco LLC class B units         —  —  3,150,770      3,150,770 
Issuance of PIPE Shares —    —  —  —  —  —  —  —  — 
Issuance of common stock upon merger, net of transaction costs, earn out, and merger warrant liability —    —  —  —  —  —  —  —  — 
Issuance of earn out shares to common stockholders —    —  —  —  —  —  —  —  — 
Distributions to Janus Midco, LLC unitholders             —      — 
Distributions to Class A preferred units                 —  — 
Deferred Tax Asset             —      — 
Cumulative translation adjustment               —    — 
Net income                 (2,817,354) (2,817,354)
Balance as of June 26, 2021   $     $     $   $ 3,150,770  $   $ (2,817,354) $ 333,416 
Warrant Redemption —  —  —  —  —  —  —  —  —  — 
Cumulative translation adjustment —  —  —  —  —  —  —  —  —  — 
Warrant movements from private to public —  —  —  —  —  —  10,112,875  —  —  10,112,875 
Net income —  —  —  —  —  —  —  —  (2,136,119) (2,136,119)
Balance as of September 25, 2021   $     $     $   $ 13,263,645  $   $ (4,953,473) $ 8,310,172 
As Restated
Class B
Common Units
Class A
Preferred Units
Common Stock Additional paid-in capital (Restated) Accumulated Other Comprehensive Income (Loss) Accumulated
Deficit (Restated)
Total (Restated)
Unit Amount Unit Amount Shares Amount
Balance as of December 26, 2020 4,478  $ 261,425  189,044  $ 189,043,734  —  $ —  $ —  $ (227,160) $ (48,205,174) $ 140,872,825 
Balance as of Retroactive application of the recapitalization (4,478) (261,425) (189,044) (189,043,734) 66,145,633  6,615  189,298,544  —  —  — 
Balance as of December 26, 2020, as adjusted   $     $   66,145,633  $ 6,615  $ 189,298,544  $ (227,160) $ (48,205,174) $ 140,872,825 
Vesting of Midco LLC class B units —  —  —  —  111,895  11  51,865  —  —  51,876 
Distributions to Class A preferred units —    —  —  —  —  —  —  (95,883) (95,883)
Cumulative translation adjustment —    —  —  —  —  —  310,768  —  310,768 
Net income —  —  —  —  —  —  —  —  14,718,821  14,718,821 
Balance as of March 27, 2021, as adjusted   $     $   66,257,528  $ 6,626  $ 189,350,409  $ 83,608  $ (33,582,236) $ 155,858,407 
Vesting of Midco LLC class B units         4,012,872  401  5,209,592      5,209,993 
Issuance of PIPE Shares —    —  —  25,000,000  2,500  249,997,500  —  —  250,000,000 
Issuance of common stock upon merger, net of transaction costs, earn out, and merger warrant liability —    —  —  41,113,850  4,111  226,939,423  —  —  226,943,534 
Issuance of earn out shares to common stockholders —    —  —  2,000,000  200  26,479,800  —  —  26,480,000 
Distributions to Janus Midco, LLC unitholders             (541,710,278)     (541,710,278)
Distributions to Class A preferred units                 (4,078,090) (4,078,090)
Deferred Tax Asset             78,290,839      78,290,839 
Cumulative translation adjustment               (37,082)   (37,082)
Net income                 (1,694,147) (1,694,147)
Balance as of June 26, 2021   $     $   138,384,250  $ 13,838  $ 234,557,285  $ 46,526  $ (39,354,473) $ 195,263,176 
Warrant Redemption —  —  —  —  110  —  1,265  —  —  1,265 
Cumulative translation adjustment —  —  —  —  —  —  —  (1,169,565) —  (1,169,565)
Warrant movements from private to public —  —  —  —  —  —  10,112,875  —  —  10,112,875 
Net income —  —  —  —  —  —  —  —  15,541,623  15,541,623 
Balance as of September 25, 2021   $     $   138,384,360  $ 13,838  $ 244,671,425  $ (1,123,039) $ (23,812,850) $ 219,749,374 

The table below present the effects of the restatement on the consolidated statements of cash flows for the nine months ended September 25, 2021:
Nine Months Ended September 25, 2021
As Previously
Reported
Adjustments As Restated
Cash Flows Provided By Operating Activities
Net income (loss) $ 33,519,770  $ (4,953,473) $ 28,566,297 
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation 4,677,954  —  4,677,954 
Intangible amortization 21,851,717  —  21,851,717 
Deferred finance fee amortization 2,286,480  —  2,286,480 
Share based compensation 2,111,099  3,150,770  5,261,869 
Loss on extinguishment of debt 2,414,854  —  2,414,854 
Change in fair value of contingent consideration and earnout 686,700  —  686,700 
Loss on sale of assets 43,091  —  43,091 
Change in fair value of derivative warrant liabilities (1,624,000) 2,281,625  657,625 
Undistributed (earnings) losses of affiliate 75,565  —  75,565 
Deferred income taxes (767,658) —  (767,658)
Changes in operating assets and liabilities
Accounts receivable (16,942,650) —  (16,942,650)
Costs and estimated earnings in excess of billings and billings in excess of costs and estimated earnings on uncompleted contracts (12,101,214) —  (12,101,214)
Prepaid expenses and other current assets (4,488,285) —  (4,488,285)
Inventory (18,474,167) —  (18,474,167)
Accounts payable 18,409,091  —  18,409,091 
Other accrued expenses 29,127,435  (478,922) 28,648,513 
Other assets and long-term liabilities (1,122,518) —  (1,122,518)
Net Cash Provided By Operating Activities 59,683,264  —  59,683,264 
Cash Flows Used In Investing Activities
Proceeds from sale of equipment 79,409  —  79,409 
Purchases of property and equipment (15,930,575) —  (15,930,575)
Cash paid for acquisitions, net of cash acquired (179,713,814) —  (179,713,814)
Net Cash Used In Investing Activities (195,564,980) —  (195,564,980)
Cash Flows Provided by (Used In) Financing Activities
Net borrowings on line of credit 19,350,803  —  19,350,803 
Distributions to Janus Midco LLC unitholders (4,173,973) —  (4,173,973)
Principal payments on long-term debt (64,824,518) —  (64,824,518)
Proceeds from issuance of long term debt 155,000,000  —  155,000,000 
Proceeds from merger 334,873,727  —  334,873,727 
Proceeds from PIPE 250,000,000  —  250,000,000 
Payments for transaction costs (44,489,256) —  (44,489,256)
Payments to Janus Midco, LLC unitholders at the business combination (541,710,278) —  (541,710,278)
Proceeds from warrant redemption 1,265  —  1,265 
Payment of contingent consideration —  —  — 
Payments for deferred financing fees (4,320,821) —  (4,320,821)
Cash Provided By (Used In) Financing Activities $ 99,706,948  $ —  $ 99,706,948 
Effect of exchange rate changes on cash and cash equivalents 141,720  —  141,720 
Net (Decrease) Increase in Cash and Cash Equivalents $ (36,033,048) $   $ (36,033,048)
Cash and Cash Equivalents, Beginning of Fiscal Year $ 45,254,655  $   $ 45,254,655 
Cash and Cash Equivalents as of September 25, 2021 $ 9,221,607  $   $ 9,221,607 
Supplemental Cash Flows Information
Interest paid $ 19,226,554  $ —  $ 19,226,554 
Income taxes paid $ 1,509,592  $ —  $ 1,509,592