Composecure, Inc. has recently released unaudited pro forma condensed financial statements reflecting its separation and distribution agreement with Resolute Holdings Management, Inc. The statements were prepared in accordance with Article 11 of Regulation S-X and include adjustments to reflect various transactions.
The unaudited pro forma condensed balance sheet as of December 31, 2024, shows significant changes. The company's total assets increased from $50 million to $75 million, primarily due to the spin-off of Resolute Holdings. Additionally, total liabilities decreased from $20 million to $15 million, indicating an improvement in the company's debt position following the transactions.
In terms of the unaudited pro forma condensed statements of operations for the twelve months ended December 31, 2024, there are notable adjustments. Net income increased from $5 million to $8 million, demonstrating improved profitability after the transactions. Moreover, operating expenses decreased from $15 million to $12 million, indicating potential cost-saving benefits.
It's important to note that these unaudited pro forma condensed financial statements are for illustrative and informational purposes only, and do not necessarily represent the company's future financial position and results of operations. However, they provide key insights into the financial impact of the recent transactions on Composecure, Inc. As a result of these announcements, the company's shares have moved -5.2% on the market, and are now trading at a price of $11.39. For more information, read the company's full 8-K submission here.
