Mace Security International : June 30, 2022 Unaudited Financial Statements and Notes

Consolidated Financial Statements

Mace Security International, Inc.

June 30, 2022 and 2021

Contents

	Page
Consolidated Balance Sheets	2-3
Consolidated Statements of Operations	4-5
Consolidated Statements of Shareholders' Equity	6
Consolidated Statements of Cash Flows	7
Notes to Consolidated Financial Statements	8-17

Mace Security International, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share and per share information)

ASSETS				December 31,
June 30, 2022			2021
Current assets:	(Unaudited)
Cash and cash equivalents	$	32	$	239
Accounts receivable, less allowance for doubtful
accounts of $606 and $586 at June 30, 2022 and December 31,
2021, respectively		1,381			1,570
Inventories		4,982			4,711
Other current assets		330			492
Total current assets		6,725			7,012
Property and equipment:
Buildings and leasehold improvements		260			260
Machinery and equipment		2,347			2,234
Furniture and fixtures		111			111
Total property and equipment		2,718			2,605
Accumulated depreciation and amortization		(2,184)			(2,096)
Total property and equipment, net		534			509
Operating lease - right-of-use asset, net of amortization		225			334
Finance lease - right-of-use asset, net of amortization		56			66
Goodwill		1,031			1,031
Intangible assets, net		1,963			2,093
Other non-current assets		14			14
Total other assets		3,289			3,538
Total assets	$	10,548	$	11,059

The accompanying notes are an integral part of these consolidated financial statements.

2

Mace Security International, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share and per share information)

				December
LIABILITIES AND SHAREHOLDERS' EQUITY	June 30, 2022			31, 2021
Current liabilities:	(Unaudited)
$	865	$	-
Line of credit
Current operating lease obligation		233			227
Current finance lease obligation		16			16
Accounts payable		688			855
Income taxes payable		54			59
Accrued expenses and other current liabilities		368			524
Total current liabilities		2,224			1,681
Non-current operating lease obligations		-			118
Non-current finance lease obligations		40			50
Total liabilities		2,264			1,849
Shareholders' equity:
Preferred stock, $.01 par value; authorized 10,000,000 shares, no shares		-			-
issued and outstanding at June 30, 2022 and December 31, 2021
Common stock, $.01 par value; authorized 100,000,000 shares,
issued shares of 64,869,879 and 64,703,965, at June 30, 2022 and		649			647
December 31, 2021, respectively
Additional paid-in capital		103,930			103,822
Accumulated deficit		(96,273)			(95,237)
Less treasury stock at cost, 90,548 shares at June 30, 2022		8,306			9,232
	(22)			(22)
and December 31, 2021
Total shareholders' equity		8,284			9,210
Total liabilities and shareholders' equity	$	10,548	$	11,059

The accompanying notes are an integral part of these consolidated financial statements.

3

Mace Security International, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Amounts in thousands)

	Six Months Ended June
		2022			2021
Net sales	$	4,137	$	6,700
Cost of goods sold		2,451			4,099
Gross profit		1,686			2,601
Selling, general, and administrative expenses		2,591			2,262
Amortization of intangible assets		130			162
Operating income (loss)		(1,035)			177
Interest expense		(13)			(11)
Gain on forgiveness of PPP Loan and accrued interest		-			625
Gain on extinguishment of debt		-			8
Other income, net		12			19
Income (loss) before income tax provision		(1,036)			818
Income tax provision		-			7
Net income (loss)	$	(1,036)	$	811
Net income (loss) per share	$	(0.02)
Basic	$	0.01
Diluted	$	(0.02)	$	0.01
Weighted average number of common shares (basic)	64,796,387	64,379,488
Weighted average number of common shares (diluted)	64,796,387	65,032,404

The accompanying notes are an integral part of these consolidated financial statements.

4