Mace Security International : Ty International Consolidated Financial Statements March 31, 2023

Consolidated Financial Statements

Mace Security International, Inc.

March 31, 2023 and 2022

Contents

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

Mace Security International, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

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

ASSETS	March 31,	December 31,
	2023		2022
Current assets:	(Unaudited)
Cash and cash equivalents	$	431	$	62
Accounts receivable, less allowance for doubtful
accounts of $227 and $257 at March 31, 2023 and December 31,
2022, respectively		1,119		1,105
Inventories		4,244		4,138
Other current assets		435		502
Total current assets		6,229		5,807
Property and equipment:
Buildings and leasehold improvements		260		260
Machinery and equipment		2,406		2,387
Furniture and fixtures		111		111
Total property and equipment		2,777		2,758
Accumulated depreciation and amortization		(2,354)		(2,297)
Total property and equipment, net		423		461
Operating lease - right-of-use asset, net of amortization		1,283		1,335
Finance lease - right-of-use asset, net of amortization		45		50
Goodwill		1,031		1,031
Intangible assets, net		1,768		1,833
Other non-current assets		14		14
Total other assets		4,141		4,263
Total assets	$	10,793	$	10,531

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)

	March 31,	December
LIABILITIES AND SHAREHOLDERS' EQUITY		2023		31, 2022
Current liabilities:	(Unaudited)
$	1,500
Line of credit	$	515
Current operating lease obligation		206		198
Current finance lease obligation		15		16
Accounts payable		644		520
Income taxes payable		55		55
Accrued expenses and other current liabilities		279		379
Total current liabilities		2,699		1,683
Non-current operating lease obligations		1,088		1,143
Non-current finance lease obligations		30		34
Total liabilities		3,817		2,860
Shareholders' equity:
Preferred stock, $.01 par value; authorized 10,000,000 shares, no shares		-
issued and outstanding at March 31, 2023 and December 31, 2022			-
Common stock, $.01 par value; authorized 100,000,000 shares,
issued shares of 65,179,030 and 65,039,030, at		652
March 31, 2023 and December 31, 2022, respectively			650
Additional paid-in capital		104,068		104,018
Accumulated deficit		(97,722)		(96,975)
Less treasury stock at cost, 90,548 shares at March 31, 2023		6,998		7,693
	(22)
and December 31, 2022			(22)
Total shareholders' equity		6,976		7,671
Total liabilities and shareholders' equity	$	10,793	$	10,531

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)

		Three Months Ended
		2023		2022
Net sales	$	1,662	$	2,156
Cost of goods sold		1,252		1,257
Gross profit		410		899
Selling, general, and administrative expenses		1,068		1,413
Amortization of intangible assets		65		65
Operating loss		(723)		(579)
Interest expense		(24)		(5)
Loss before income tax provision		(747)		(584)
Income tax provision		-		-
Net loss	$	(747)	$	(584)
Net loss per share	$	(0.01)
Basic	$	(0.01)
Diluted	$	(0.01)	$	(0.01)
Weighted average number of common shares (basic)	65,144,030	64,741,268
Weighted average number of common shares (diluted)	65,144,030	64,741,268

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

4