Company: UFPT
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050425
Chunk: 55

Company: UFP TECHNOLOGIES INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 55
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 public business entities, the ASU is effective for annual periods beginning after December 15, 2024. The Company will adopt ASU 2023-09 retrospectively beginning with its annual reporting period ending December 31, 2025, and does not expect the adoption to have a material impact on its financial statements.

(2)     Acquisitions

Techno Plastics IndustriesOn July 7, 2025, the Company purchased 100% of the outstanding membership interests of Techno Plastics Industries, Inc. (“TPI”) pursuant to a Securities Purchase Agreement, for an aggregate purchase price of $4.5 million in cash. The purchase price was subject to adjustment based upon TPI’s estimated working capital at closing. Subsequent purchase accounting opening balance sheet adjustments resulted in a decrease to the purchase price of approximately $200 thousand. A portion of the purchase price is being held by the Company to indemnify the Company against certain claims, losses, and liabilities. The Securities Purchase Agreement contains representations, warranties, and covenants customary for transactions of this type. As part of the Securities Purchase Agreement, the Sellers as well as certain restricted parties have agreed not to compete with the Company for a period of five years.TPI, based in Anasco, Puerto Rico, is a specialty manufacturer of precision thermoplastic injection-molded components.

7

The following table summarizes the allocation of the total purchase price of approximately $4.3 million, net of cash acquired, to the acquisition date fair value of the assets acquired and liabilities assumed based on management’s preliminary estimates of fair value (in thousands):Purchase Price AllocationCash$2,281 Accounts Receivable1,448 Inventories1,306 Prepaid expenses135 PP&E2,422 Goodwill1,145 Intangible assets575 Other assets18 Total assets acquired9,330 Accounts payable(429)Accrued expenses(1,203)Deferred revenue(661)Deferred income taxes(461)Total liabilities assumed(2,753)Total assets acquired, net of liabilities assumed6,577 Less: cash acquired(2,281)Purchase price, net of cash acquired$4,295 Acquisition costs associated with the transaction of approximately $3 thousand and $189 thousand were charged to expense in the three and nine months ended September 30, 2025, respectively. These costs were primarily for legal services, which are included within “Acquisition costs” on the face of the Condensed Consolid