This Plasticon [PLNI] 10KSB 1 plni0510k5.htm PLNI 2005 -
sec.gov
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Other assets:
Goodwill 3,089,624
Total assets $6,293,238
The Goodwill valuation is extremely suspect and appears to be based entirely on the acquisition of Pro Mold.
There is no mention of any intangible assets which would usually include patents. See the press release below which states, “Plasticon’s….patents are valued at $20 million.”
Page F-11
3. Pro Mold Acquisition
The December 2005 acquisition of Pro Mold was accounted for as a purchase business combination under the provisions of the FASB’s SFAS No. 141, Business Combinations. The aggregate purchase price of $3,866,852 (including $366,852 of professional fees) was allocated to the assets acquired and liabilities assumed based on the respective fair values. The Company with the help of an independent appraiser has assessed the fair value of the property and equipment. The Pro Mold accounts receivable, inventory, accounts payable and accrued expenses and other assets and long term liabilities were estimates of management. Management is still in the process of finalizing the allocation of the purchase price, including the consideration of other intangible values. The Company will include Pro Mold in its operating results starting January 1, 2006.
The following table summarizes the estimated fair values of assets acquired and liabilities assumed at the date of acquisition.
December 31, 2005
Cash 149
Accounts receivable 405,525
Inventory 574,807
Other current assets 89,023
Property and equipment 1,240,558
Goodwill 3,089,624
Bank overdraft (313,264)
Accounts payable (330,914)
Debt (726,048)
Other liabilities (162,608)
Net assets acquired $3,866,852
It is likely that the auditor did not include the intangible asset value of patents of $20 million in the 10KSB because the patents have not been assigned to Plasticon. It is also obvious that the valuation is wildly inaccurate and unfounded.
According to an independent appraiser and the federal courts, Plasticon's recycled plastic product patents are valued at $20 million.
Plasticon Receives Patent Confirmation for PAC Chair III -- Plasticon's Patents Now Valued at $20 Million
Monday September 12, 8:30 AM EDT
LEXINGTON, Ky., Sept. 12, 2005 (PRIMEZONE) -- Plasticon International Inc. (PLNI), the technology leader of the recycled plastics sector, announced today it has recently received confirmation of the company's patent for the PAC Chair III product, the latest innovation from the company.
The PAC Chair III, in one product, replaces all four conventional metal rebar support products -- wire, galvanized, epoxy coated, and stainless steel. "Our industry first PAC Chair III includes the mesh market and the on-grade market with a single product that is both stackable and self-contained with a sand plate, allowing for 3 heights (2 rebar and one mesh)," said Jim Turek, president and CEO of Plasticon International. "This makes the PAC Chair III the most versatile individual rebar support on the market today."
Sales of the PAC Chair III will be made through Plasticon's exclusive domestic distributor, the largest building materials distribution company in the U.S. with 63 strategically located warehouses nationwide.
"Because the PAC Chair III products are stackable, they are much more convenient for workers in the field," Mr. Turek said. He continued to state that, "Metal rebar supports are not stackable, making it difficult to carry more than 32 at a time in a large box. However, the PAC Chair III is stackable, allowing a worker to carry up to 225 individual supports in that same size box. This product gives the construction industry a tremendous opportunity to increase efficiency and productivity. The PAC Chair III also reduces shipping costs. We are pleased that the demand is so high for our newest product offering, and we believe that the clear advantages this product offers will continue to drive sales."
The PAC Chair III is the most recent patent that the company has received. According to an independent appraiser and the federal courts, Plasticon's recycled plastic product patents are valued at $20 million. Additionally, since the inception of the company, Plasticon has built an inventory of injection molds that the company owns outright, which are presently valued at over $10 million.
finance.myway.com
The most recent patent – which has NOT been assigned to Plasticon.
United States Patent D500,243
Turek December 28, 2004
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Rebar, beam and mesh highchair
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Claims
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The ornamental design for a rebar, beam and mesh highchair, as shown and described.
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