Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.22.1
Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 26, 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
Schedule of Error Corrections and Prior Period Adjustments The table below present the effects of the restatement on the Company's unaudited consolidated balance sheet as of June 26, 2021:
June 26, 2021
As Previously
Reported		 Adjustments As Restated
ASSETS
Current Assets
Cash $ 15,287,621  $ —  $ 15,287,621 
Accounts receivable, less allowance for doubtful accounts; $3,819,000 and $4,485,000, at June 26, 2021 and December 26, 2020, respectively
 79,557,005  —  79,557,005 
Costs and estimated earnings in excess of billing on uncompleted contracts 16,614,552  —  16,614,552 
Inventory, net 36,289,253  —  36,289,253 
Prepaid expenses 8,443,195  —  8,443,195 
Other current assets 2,322,802  —  2,322,802 
Total current assets $ 158,514,428  $ —  $ 158,514,428 
Property and equipment, net 31,682,826  —  31,682,826 
Customer relationships, net 297,563,142  —  297,563,142 
Tradename and trademarks 85,819,442  —  85,819,442 
Other intangibles, net 16,627,892  —  16,627,892 
Goodwill 260,275,193  —  260,275,193 
Deferred tax asset 78,435,843  —  78,435,843 
Other assets 1,759,222  —  1,759,222 
Total assets $ 930,677,988  $ —  $ 930,677,988 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable $ 45,316,067  $ —  $ 45,316,067 
Billing in excess of costs and estimated earnings on uncompleted contracts 21,612,809  —  21,612,809 
Current maturities of long-term debt 6,346,071  —  6,346,071 
Other accrued expenses 48,357,979  (333,416) 48,024,563 
Total current liabilities $ 121,632,926  $ (333,416) $ 121,299,510 
Long-term debt, net 557,574,245  —  557,574,245 
Deferred tax liability 14,577,682  —  14,577,682 
Derivative warrant liability 39,077,500  —  39,077,500 
Other long-term liabilities 2,885,875  —  2,885,875 
Total liabilities $ 735,748,228  $ (333,416) $ 735,414,812 
STOCKHOLDERS’ EQUITY
Common Stock, 825,000,000 shares authorized, $.0001 par value, 138,384,250 and 66,145,633 shares issued and outstanding at June 26, 2021 and December 26, 2020, respectively 13,838  —  13,838 
Additional paid in capital 231,406,515  3,150,770  234,557,285 
Accumulated other comprehensive income (loss) 46,526  —  46,526 
Accumulated deficit (36,537,119) (2,817,354) (39,354,473)
Total stockholders’ equity $ 194,929,760  $ 333,416  $ 195,263,176 
Total liabilities and stockholders’ equity $ 930,677,988  $ —  $ 930,677,988 
The tables below present the effects of the restatement on the unaudited consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 26, 2021:
Three Months Ended June 26, 2021
As Previously
Reported		 Adjustments As Restated
REVENUE
Sales of product $ 140,556,306  $ —  $ 140,556,306 
Sales of services 33,626,083  —  33,626,083 
Total revenue 174,182,389  —  174,182,389 
Cost of Sales 114,987,977  —  114,987,977 
GROSS PROFIT 59,194,412  —  59,194,412 
OPERATING EXPENSE
Selling and marketing 10,382,169  —  10,382,169 
General and administrative 33,784,823  3,150,770  36,935,593 
Contingent consideration and earnout fair value adjustments 686,700  —  686,700 
Operating Expenses 44,853,692  3,150,770  48,004,462 
INCOME (LOSS) FROM OPERATIONS 14,340,720  (3,150,770) 11,189,950 
Interest expense (7,475,727) —  (7,475,727)
Other income (expense) (920,003) —  (920,003)
Change in fair value of derivative warrant liabilities (1,928,500) —  (1,928,500)
Other Expense, Net (10,324,230) —  (10,324,230)
INCOME (LOSS) BEFORE TAXES 4,016,490  (3,150,770) 865,720 
Provision (benefit) for Income Taxes 2,893,283  (333,416) 2,559,867 
NET INCOME (LOSS) $ 1,123,207  $ (2,817,354) $ (1,694,147)
Other Comprehensive Income (Loss) (37,082) —  (37,082)
COMPREHENSIVE INCOME (LOSS) $ 1,086,125  $ (2,817,354) $ (1,731,229)
Net income attributable to common stockholders $ 1,123,207  $ (2,817,354) $ (1,694,147)
Weighted-average shares outstanding, basic and diluted (Note 15)
Basic 81,009,261  —  81,009,261 
Diluted 81,624,496  —  81,624,496 
Net Income (loss) per share, basic and diluted (Note 15)
Basic $ 0.01  $ (0.03) $ (0.02)
Diluted $ 0.01  $ (0.03) $ (0.02)
Six Months Ended June 26, 2021
As Previously
Reported		 Adjustments As Restated
REVENUE
Sales of product $ 262,252,532  $ —  $ 262,252,532 
Sales of services 64,754,124  —  64,754,124 
Total revenue 327,006,657  —  327,006,657 
Cost of Sales 214,518,947  —  214,518,947 
GROSS PROFIT 112,487,710  —  112,487,710 
OPERATING EXPENSE
Selling and marketing 19,840,296  —  19,840,296 
General and administrative 53,371,131  3,150,770  56,521,901 
Contingent consideration and earnout fair value adjustments 686,700  —  686,700 
Operating Expenses 73,898,127  3,150,770  77,048,897 
INCOME (LOSS) FROM OPERATIONS 38,589,583  (3,150,770) 35,438,813 
Interest expense (15,601,797) —  (15,601,797)
Other income (expense) (2,478,869) —  (2,478,869)
Change in fair value of derivative warrant liabilities (1,928,500) —  (1,928,500)
Other Expense, Net (20,009,166) —  (20,009,166)
INCOME (LOSS) BEFORE TAXES 18,580,417  (3,150,770) 15,429,647 
Provision (benefit) for Income Taxes 2,738,389  (333,416) 2,404,973 
NET INCOME (LOSS) $ 15,842,028  $ (2,817,354) $ 13,024,674 
Other Comprehensive Income (Loss) 273,686  —  273,686 
COMPREHENSIVE INCOME (LOSS) $ 16,115,714  $ (2,817,354) $ 13,298,360 
Net income attributable to common stockholders $ 15,842,028  $ (2,817,354) $ 13,024,674 
Weighted-average shares outstanding, basic and diluted (Note 15)
Basic 73,577,447  —  73,577,447 
Diluted 73,879,851  —  73,879,851 
Net Income (loss) per share, basic and diluted (Note 15)
Basic $ 0.22  $ (0.04) $ 0.18 
Diluted $ 0.21  $ (0.03) $ 0.18 

The tables below present the effects of the restatement on the segment income from operations for the three and six months ended June 26, 2021:

Three Months Ended June 26, 2021
As Previously
Reported		 Adjustments As Restated
Income From Operations
Janus North America $ 12,587,297  $ 3,993,943  $ 16,581,240 
Janus International 1,755,572  (7,144,713) (5,389,141)
Eliminations (2,149) —  (2,149)
Total Segment Operating Income (Loss) $ 14,340,720  $ (3,150,770) $ 11,189,950 

Six Months Ended June 26, 2021
As Previously
Reported		 Adjustments As Restated
Income From Operations
Janus North America $ 36,502,605  $ 3,993,943  $ 40,496,548 
Janus International 2,062,243  (7,144,713) (5,082,470)
Eliminations 24,735  —  24,735 
Total Segment Operating Income (Loss) $ 38,589,583  $ (3,150,770) $ 35,438,813 
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 
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 
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 

The table below present the effects of the restatement on the consolidated statements of cash flows for the six months ended June 26, 2021:
Six Months Ended June 26, 2021
As Previously
Reported		 Adjustments As Restated
Cash Flows Provided By Operating Activities
Net income (loss) $ 15,842,028  $ (2,817,354) $ 13,024,674 
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation 2,979,336  —  2,979,336 
Intangible amortization 13,622,957  —  13,622,957 
Deferred finance fee amortization 1,486,634  —  1,486,634 
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 686,700  —  686,700 
Loss on sale of assets 43,091  —  43,091 
Change in fair value of derivative warrant liabilities 1,928,500  —  1,928,500 
Undistributed (earnings) losses of affiliate (105,107) —  (105,107)
Deferred income taxes (767,658) —  (767,658)
Changes in operating assets and liabilities — 
Accounts receivable (4,421,710) —  (4,421,710)
Costs and estimated earnings in excess of billings and billings in excess of costs and estimated earnings on uncompleted contracts (5,215,618) —  (5,215,618)
Prepaid expenses and other current assets (2,945,823) —  (2,945,823)
Inventory (11,007,730) —  (11,007,730)
Accounts payable 15,393,047  —  15,393,047 
Other accrued expenses 14,116,513  (333,416) 13,783,097 
Other assets and long-term liabilities (1,338,231) —  (1,338,231)
Net Cash Provided By Operating Activities 44,822,882  —  44,822,882 
Cash Flows Used In Investing Activities
Proceeds from sale of equipment 79,409  —  79,409 
Purchases of property and equipment (3,992,533) —  (3,992,533)
Cash paid for acquisition, net of cash acquired (1,564,957) —  (1,564,957)
Net Cash Used In Investing Activities (5,478,081) —  (5,478,081)
Cash Flows Used In Financing Activities
Distributions to Janus Midco LLC unitholders (4,173,973) —  (4,173,973)
Principal payments on long-term debt (63,238,000) —  (63,238,000)
Proceeds from merger 334,873,727  —  334,873,727 
Proceeds from PIPE 250,000,000  —  250,000,000 
Payments for transaction costs, net (44,489,256) —  (44,489,256)
Payments to Janus Midco, LLC unitholders at the business combination (541,710,278) —  (541,710,278)
Payments for deferred financing fees (765,090) —  (765,090)
Cash Used In Financing Activities $ (69,502,870) $ —  $ (69,502,870)
Effect of exchange rate changes on cash and cash equivalents 191,035  —  191,035 
Net (Decrease) Increase in Cash and Cash Equivalents $ (29,967,034) $ —  $ (29,967,034)
Cash and Cash Equivalents, Beginning of Fiscal Year $ 45,254,655  $ —  $ 45,254,655 
Cash and Cash Equivalents as of June 26, 2021 $ 15,287,621  $ —  $ 15,287,621 
Supplemental Cash Flows Information
Interest paid $ 16,847,651  $ —  $ 16,847,651 
Income taxes paid $ 773,608  $ —  $ 773,608 
Fair value of earnout $ 686,700  $ —  $ 686,700 
Fair value of warrants $ 1,928,500  $ —  $ 1,928,500