NEW YORK, NY / ACCESSWIRE / February 1, 2022 / New America Energy Corp. (OTC PINK:NECA), name to be changed to "Third Bench", an industry leader in Kitchen & Bathroom cabinetry and countertops.
Dear Valued Shareholders,
It's my pleasure to provide further clarification on our financial statements. The Third Bench management team is providing the following commentary on the recent 10K and 10Q financial statements, which review select highlights. The Company believes the financial processing and filings are more streamlined today and we plan to continue to hire additional accounting staff. The company does not anticipate any further late filings.
10K Comments:
- Our year-end financials through the Fiscal Year ending August 31, 2021 only include financial performance for the full year for one of our four operations (OGB Architectural Millwork). Three of the companies were acquired during the fiscal year, and as a result only represent financial performance from the time of acquisition.
Below is a representation of the full year of revenue for each of the operations:
10Q Comments:
- Davis Kitchens was acquired in October 2021 and therefore it was not included in our September financial performance which accounts for about $354,899 in revenue. Full operational revenue from our current operations will be reflected in Q2.
- Finance charges are associated with Black Oak ($8,333 monthly) and other bank related charges.
- We are in the process of moving all account to Chase Bank which will reduce all bank related charge to a flat $300 a month. We also anticipate refinancing our debt to a single low-cost lender within the next several months.
- One-time operating expenses
- $100K in professional services in September.
- $38K in a one-time payout of PTO. (Third Bench has adjusted PTO for all employees as of February 2022).
- $4.4M Interest Expense
- $4.2M of interest is associated with convertible notes. It is important to note that these figures do not represent actual cash interest payment requirements. When convertible notes are issued below market price the difference between the conversion price and the current market price is taken as interest expense with an increase in Additional paid in capital as seen below. We do not anticipate issuing any additional Convertible Notes.
- The remaining $177,453 is associated with other Third Bench debt facilities.
Anticipated Expense Reduction:
The 10Q and 10K do not reflect our recent expense reductions.
We anticipate realizing the full impact of our healthcare premium coverage, PTO and salary reductions will be realized by Q4 22/Q1 23.
We anticipate the changes to have the following reduction in annual expenses:
- PTO/Holiday Adjustment $250K
- Salaries Reduction $500K
- Reduction in Healthcare Premium $250K - $500K
- Total Expense Reduction $1.0M - $1.25M
Third Bench will continue to identify additional expense reduction opportunities. In addition, we plan to initiate another price increase across all operations to combat increasing labor and material cost as well as increase our operating profit.
About Third Bench Holdings, LLC
THIRD BENCH Holdings is a holding company for five subsidiary companies operating as an architectural millwork and dealers in the cabinetry, kitchen and bath areas. THIRD BENCH, through its subsidiary companies, offers products in several categories: Residential Cabinets and countertops and commercial millwork throughout the Western U.S. for customers from California to Texas. THIRD BENCH also provides installation services as a part of its vertical offering. The company provides its products and services through its architectural millwork and retail facilities, currently located in Albuquerque and Las Cruces, New Mexico and Tucson, Arizona. Third Bench employs over 160 people and had revenue in excess of $18.8 million in 2020. Third Bench is on a run rate of about $24.0 million for 2021 and is cash flow positive. These projections have been provided by management and do not include the additional acquisitions that are currently under review.
Third Bench Holdings
175 S. Main Street #1410
Salt Lake City, UT 84111
https://thirdbench.com/
About New America Energy Corp.
New America Energy Corp. (NECA) is a holding company focused on strategic acquisitions that are opportunistic, cash-flow positive with hard assets.
NECA Contact:
Investor Relations
770-235-6053
info@thirdbench.com
https:/twitter.com/necaholdings
NOTICE REGARDING FORWARD-LOOKING STATEMENT
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements of the company to differ materially from those expressed or implied by such forward-looking statements.
SOURCE: New America Energy Corp.
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