EXHIBIT 99.3    GALAXY TOOL HOLDING CORPORATION AND SUBSIDIARY CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2018 AND 2017




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GALAXY TOOL HOLDING CORPORATION AND SUBSIDIARY CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2018 and 2017 TABLE OF CONTENTS  PageConsolidated Financial Statements:Consolidated Balance Sheets


1Consolidated Statements of Income


2Consolidated Statements of Stockholders Equity


3Consolidated Statements of Cash Flows


4Notes to Consolidated Financial Statements


5 -13




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GALAXY TOOL HOLDING CORPORATION AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS December 31, 2018 and 2017 ASSETS  2018


2017CURRENT ASSETSCash

$
1,273,558


$
421,009Accounts receivable less allowance for doubtful accounts of $28,800 and $10,000


4,496,276



5,336,126Inventories


1,706,483



2,076,448Income taxes receivable


84,027



Prepaid expenses


160,536



127,056Total current assets


7,720,880



7,960,639PROPERTY, PLANT AND EQUIPMENTLand


9,000



9,000Buildings and improvements


7,461,251



7,325,795Machinery and equipment


15,703,441



14,976,628Computer hardware and software


1,347,794



1,215,065Office furniture and fixtures


167,164



160,99024,688,650



23,687,478Less accumulated depreciation


12,333,891



11,016,335Net property and equipment


12,354,759



12,671,143OTHER ASSETSGoodwill


3,302,091



3,302,091$
23,377,730


$
23,933,873




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LIABILITIES AND STOCKHOLDERS EQUITY  2018


2017CURRENT LIABILITIESCurrent maturities of long-term debt

$
7,375,180


$
1,930,719Current maturities of capital lease obligation


204,671


$
38,778Revolving
lines-of-credit


6,075,000



5,000,000Accounts payable


1,592,278



2,119,502Accrued expenses


2,709,805



2,405,958Deferred revenue


148,715



188,905Income taxes payable






117,167Total current liabilities


18,105,649



11,801,029LONG-TERM LIABILITIESLong-term debt, less current maturities


1,436,192



8,138,661Long-term capital lease, less current maturities


592,000



150,222Deferred income taxes


686,000



1,600,000Total liabilities


20,819,841



21,689,912STOCKHOLDERS EQUITYPreferred stock, Series A, par value $.01 per share; 5,000,000 shares authorized and 4,111,907
shares issued and outstanding, total liquidation preference of outstanding shares of $17,543,041; net of offering costs of $83,200


4,028,707



4,028,707Preferred stock, Series B, par value $.01 per share; 5,000,000 shares authorized and 4,438,093
shares issued and outstanding, total liquidation preference of outstanding shares of $8,121,620; net of offering costs of $300,000


4,138,093



4,138,093Preferred stock, Series C, par value $.01 per share; 1,000,000 shares authorized and 927,480
shares issued and outstanding, total liquidation preference of outstanding shares of $11,565,399


3,246,178



3,246,178Preferred stock, Series D, par value $.01 per share; 1,000,000 shares authorized and 333,799
shares issued and outstanding, total liquidation preference of outstanding shares of $8,692,944


4,105,731



4,105,731Preferred stock, Series E, par value $.01 per share; 200,000 shares authorized and 144,259 share
issued and 55,741 outstanding total liquidation preference of outstanding shares of $26,129,188


10,520,000



10,520,000Common stock, Class A, par value $.01 per share; 200,000 shares authorized and 92,657 share
issued and outstanding


927



927Common stock, Class B, par value $.01 per share; 50,000 shares authorized and 48,093 shares
issued and outstanding


481



481Common stock, Class C, par value $.01 per share; 1,000 shares authorized and 1,000 shares
issued and outstanding; issued for no consideration






Additional paid-in capital


99,000



99,000Accumulated deficit


(16,529,750
)


(16,843,678
)Excess of consideration paid over consideration contributed by continuing stockholder
interests


(7,051,478
)


(7,051,478
)Total stockholders equity


2,557,889



2,243,961$
23,377,730


$
23,933,873 The accompanying notes are an integral part of these consolidated financial statements.  1




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GALAXY TOOL HOLDING CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME Years Ended December 31, 2018 and 2017  2018


2017Net sales

$
26,748,477


$
26,503,313Cost of goods sold


22,455,528



22,658,234Gross profit


4,292,949



3,845,079General and administrative expenses


1,931,492



2,164,927Operating profit


2,361,457



1,680,152Interest expense and exit fee


3,129,663



1,096,542(Loss) profit before income taxes


(768,206
)


583,610Income tax benefit


1,082,134



775,833Net income

$
313,928


$
1,359,443 The accompanying notes are an integral part of these consolidated financial statements.  2




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GALAXY TOOL HOLDING CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY Years Ended December 31, 2018 and 2017  Preferred Stock


Common Stock


AdditionalPaid-inCapital


RetainedEarnings(Deficit)


Excess ofConsiderationPaid overConsiderationContributed byContinuingStockholderInterests


TotalSeries A


Series B


Series C


Series D


Series E


Class A


Class BBalance, December 31, 2016

$
4,028,707


$
4,138,093


$
3,246,178


$
4,105,731


$
10,520,000


$
927


$
481


$
99,000


$
(18,203,121
)

$
(7,051,478
)

$
884,518Net income


































1,359,443







1,359,443Balance, December 31, 2017


4,028,707



4,138,093



3,246,178



4,105,731



10,520,000



927



481



99,000



(16,843,678
)


(7,051,478
)


2,243,961Net income


































313,928







313,928Balance, December 31, 2018

$
4,028,707


$
4,138,093


$
3,246,178


$
4,105,731


$
10,520,000


$
927


$
481


$
99,000


$
(16,529,750
)

$
(7,051,478
)

$
2,557,889 The accompanying notes are an integral part of these consolidated financial statements.  3




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GALAXY TOOL HOLDING CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended December 31, 2018 and 2017  2018


2017Cash flows from operating activities:Net income

$
313,928


$
1,359,443Adjustments to reconcile net income to net cash from operating activities:Depreciation


1,988,054



1,986,003Deferred income tax benefit


(914,000
)


(893,000
)(Gain) loss on sale of equipment


(223,147
)


103Change in operating assets and liabilities:Accounts receivable


839,850



(2,050,898
)Inventories


369,965



(377,846
)Prepaid expenses


(33,480
)


9,150Income taxes


(201,194
)


117,167Accounts payable and accrued expenses


(223,377
)


695,768Deferred revenue


(40,190
)


85,070Net cash from operating activities


1,876,409



930,960Cash flows from investing activities:Purchase of property, plant and equipment


(1,679,523
)


(944,252
)Proceeds from sale of property, plant and equipment


231,000



Net cash from investing activities


(1,448,523
)


(944,252
)Cash flows from financing activities:Net borrowings on revolving
lines-of-credit


1,075,000



500,000Borrowings on capital lease obligations


723,313



189,000Principal payments on capital lease obligations


(115,642
)


Borrowings on long-term debt






174,869Principal payments on long-term debt


(1,258,008
)


(946,458
)Net cash from financing activities


424,663



(82,589
)Change in cash


852,549



(95,881
)Cash at beginning of year


421,009



516,890Cash at end of year

$
1,273,558


$
421,009Supplemental disclosure of cash flow information:Interest paid

$
3,214,935


$
1,095,684 The accompanying notes are an integral part of these consolidated financial statements.  4




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GALAXY TOOL HOLDING CORPORATION AND SUBSIDIARY NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS  1.
BUSINESS OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Operations  Galaxy Tool Holding Corporation and Subsidiary (d/b/a Galaxy Technologies) (Company) is in the business of
manufacturing and designing precision tools and parts, fabricating steel and aluminum assemblies and producing secondary equipment for the customers in the aerospace industry. Additionally, the Company serves customers in the plastic products
industry with manufacturing and repairing injection and blow molds and designing component parts and secondary equipment. The Companys customers are located throughout the United States and internationally. The Company is headquartered in
Winfield, Kansas, where it has a manufacturing facility. Principles of Consolidation  The accompanying consolidated financial
statements include the accounts of Galaxy Tool Holding Corporation and its wholly-owned subsidiary, Galaxy Technologies, Inc. All material intercompany related party balances and transactions have been eliminated in the consolidation. Use of Estimates  The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect: (1) the reported amounts of assets and liabilities, (2) disclosures such as contingencies, and (3) the reported amounts of revenues and
expenses included in such financial statements. Actual results could differ from those estimates. Cash  Cash includes
currency on hand and demand deposits with banks. The Company maintains its cash in bank deposit accounts that, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. Accounts Receivable  Receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a
review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customers financial condition, credit history and current
economic conditions. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. A trade receivable is considered to be past due if any portion of the receivable balance is outstanding for more than 30 to 60 days, depending
on the customer. Interest is not charged on past due accounts. Inventories  Inventories are stated at the lower of cost or
net realizable value, with cost determined by the first-in, first-out (FIFO) method.
Work-in-process includes material, labor and allocable factory overhead costs. Property, Plant and Equipment  Property, plant and equipment are carried at cost. Depreciation is computed using the straight-line
method, using estimated useful lives. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in income.  5




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GALAXY TOOL HOLDING CORPORATION AND SUBSIDIARY NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS  1.
BUSINESS OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)  The cost of maintenance and repairs is charged to income as incurred; significant renewals
and betterments are capitalized. Deduction is made for retirements resulting from renewals or betterments. Estimated useful lives and recovery periods are as follows:  Useful LivesBuildings and improvements


40 yearsMachinery and equipment


3 to 10 yearsComputer hardware and software


3 to 10 yearsOffice furniture and fixtures


3 to 10 years Goodwill  Goodwill is subject to an impairment test annually as well as when an event triggering
impairment may have occurred. To determine if any impairment exists, the carrying value of the Company is compared to its estimated fair value. The Company has elected to perform its annual analysis during the fourth quarter. There were no
impairment losses recognized for the years ending December 31, 2018 or 2017. Impairment of Long-Lived Assets 
Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison
of the carrying amount of an asset to estimated future net cash flows (undiscounted and without interest charges) expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the
amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. There were no impairment losses recognized for the
years ending December 31, 2018 or 2017. Deferred Revenue  Deferred revenue represents deposits and progress
billings on jobs in progress. Income Taxes  Deferred tax assets and liabilities are recognized for temporary differences and
loss carryforwards. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. When applicable, deferred tax assets are reduced by a valuation allowance when, in the opinion of management,
it is more likely than not that some portion of all the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company recognizes the financial statement effects of a tax position only when it believes it can more likely than not sustain the position
upon an examination by the relevant tax authority. Revenue Recognition  Revenue is recognized upon shipment of goods.
Shipping and handling charges are included in revenue. Shipping and handling costs are included in cost of goods sold.  6




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GALAXY TOOL HOLDING CORPORATION AND SUBSIDIARY NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS  1.
BUSINESS OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)  Advertising Costs  The Company expenses costs of advertising as they are
incurred. Advertising expense for the years ended December 31, 2018 and 2017 was $35,457 and $43,920, respectively. Accounting
Policies not yet Adopted Accounting Standards Update,Leases, eliminates the concept of operating leases and includes
substantial changes for accounting by lessees; existing operating leases and all new leases, unless immaterial, will require balance sheet recognition (right to use asset and lease liability). The standard is expected to be effective for the Company
with its 2020 year. The Company is evaluating the potential effects on the consolidated financial statements. Accounting Standards Update,
Simplifying the Test for Goodwill Impairment,simplifies the measurement of goodwill impairment by eliminating the requirement that an entity compute the implied fair value of goodwill based on the fair values of its assets and liabilities to
measure impairment. Instead, goodwill impairment will be measured as the difference between the fair value and carrying value of the reporting unit. The standard is expected to be effective for the Company with its 2020 year. The Company is
evaluating the potential effects on the consolidated financial statements. Subsequent Events  Subsequent events have been
evaluated through April 4, 2019, which is the date the financial statements were available to be issued.  2.
BUSINESS ACQUISITION On August 22, 2008, the Company acquired 100% of the stock of Galaxy Tool Corporation and its subsidiary, Encompass Tool &
Machine, Inc., under the terms of a stock purchase agreement. The stock purchase transaction was accounted for in accordance with EITF Issue No. 88-16, Basis in Leveraged Buyout Transactions, and
EITF Issue No. 90-12, Allocating Basis in Individual Assets and Liabilities for Transactions Within the Scope of EITF
IssueNo.88-16. The aggregate purchase price was allocated to the assets and liabilities of the Company based upon an allocation of their respective carryover and
fair market values. The carryover interest on the transaction was 38.6%. The portion of the acquisition recognized at fair value was
61.4%. The caption consideration paid over consideration contributed by continuing stockholder interests within the equity section of the accompanying balance sheets represents the difference between the fair value and the carrying value
of the 38.6% carryover interest.  7




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GALAXY TOOL HOLDING CORPORATION AND SUBSIDIARY NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS  3.
INVENTORIES Inventories consist of the following at December 31:  2018


2017Raw materials

$
139,760


$
68,486Work-in-process


1,566,723



2,007,962$1,706,483


$2,076,448 Due to higher than expected costs related to several projects, management conducted a thorough review of all work-in-process jobs. As a result, a provision for inventory losses of $33,203 and $290,000 is included in
work-in-process as of December 31, 2018 and 2017, respectively. These adjustments are based on the Companys best estimates of product sales prices and
expected remaining costs to complete a job.  4.
CAPITAL LEASE OBLIGATIONS Capital lease obligations have maturities occurring through 2022. Interest rates on the capital lease obligations are 5.15% and 8.50%. The
leases are used for the purchase of machinery and equipment. At December 31, 2018, monthly lease payments were $21,638. At
December 31, machinery and equipment include the following amounts for the capitalized lease:  2018


2017Machinery and equipment

$
1,205,907


$
210,000Less accumulated depreciation


122,490



17,500$1,083,417


$192,500 As of December 31, 2018 future minimum lease payments for the capital lease obligation are as follows:  2019

$
259,6592020


259,6592021


259,6592022


129,849Total minimum lease payments


908,826Less amount representing interest


112,155Present value of net minimum lease payments


796,671Less current maturities


204,671Capital lease obligation, less current maturities

$
592,000  8




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GALAXY TOOL HOLDING CORPORATION AND SUBSIDIARY NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS  5.
REVOLVING LINES-OF-CREDIT
AND LONG-TERM DEBT The Company has a $2,000,000 revolving line-of-credit agreement with a financial institution, subject to collateral based limitations, maturing May 1, 2019. Borrowing under the agreement totaled $1,075,000 at December 31, 2018. The
unpaid principal balance carries a variable interest rate at the Prime rate plus 1% that adjusts daily, 6.5% as of December 31, 2018. At December 31, 2018, the
line-of-credit had $925,000 of availability. The Company
has a revolving line-of-credit agreement with a stockholder of the Company that expires August 22, 2019. Under the agreement, the Company may borrow up to
$5,000,000. The unpaid principal balance carries an interest rate of LIBOR plus 4.5% calculated at the first of each month with a minimum of 6.5%. The interest rate as of December 31, 2018 was 6.879%. This revolving line-of-credit is also subject to an unused revolving commitment fee of 1% each month prior to the maturity date, as well as the terms and conditions that are outlined in the
security agreement applicable to the subordinated notes payable shown below. At December 31, 2018, the line-of-credit was fully drawn. Long-term debt at December 31 consists of the following:  2018


2017Note payable to a bank, due in monthly payments of $33,680 including interest at 4.50% through maturity in February of
2020. The loan is collateralized by equipment.

$
1,189,890


$
1,530,959Note payable to a bank, due in monthly payments of $26,005 including interest at 4.50% through maturity in October of
2019. The loan is collateralized by a building.


1,595,967



1,829,011Note payable to a bank; due in monthly payments of $14,577, which was changed to $16,407 beginning October 2018 (with
remaining balance due on maturity) including interest at 5.95% through maturity in September 2021. The loan is collateralized by equipment, accounts receivable and inventory.


497,885



650,571Note payable to a bank; due in monthly payments of $10,516 (with remaining balance due on maturity) including interest
at prime plus 1.25% (6.75% at December 31, 2018) through maturity in April of 2021. The loan is collateralized by equipment, accounts receivable and inventory.


279,766



385,169Note payable to a bank; due in monthly payments of $7,583, which was changed to $12,498 beginning October of 2018 (with
the remaining balance due on maturity) including interest at 5.95% through maturity in September of 2020. The loan is collateralized by equipment, accounts receivable and inventory.


247,864



338,230Note payable to a bank; due in monthly payments of $4,518 (with the remaining balance due on maturity) including
interest at 4.50% through maturity in September of 2018. The loan is collateralized by equipment, accounts receivable and inventory.






201,611  9




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GALAXY TOOL HOLDING CORPORATION AND SUBSIDIARY NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS  5.
REVOLVING LINES-OF-CREDIT
AND LONG-TERM DEBT (CONTINUED)  2018


2017Note payable to a bank; due in monthly payments of $5,252 (with the remaining balance due on maturity) including
interest at 4.95% through maturity in March of 2020. The loan is collateralized by equipment, accounts receivable and inventory. This note was paid in full during the year ended December 31, 2018.

$



$
133,829Subordinated notes payable to a stockholder of the Company; interest at the greater of 10% or a floating rate equal to
the LIBOR plus 6.0% (the rate was 10% at December 31, 2018); due in full in August 22, 2019. The loan is collateralized by substantially all assets of the Company. The note is subordinated to the bank debt. Under the terms of the
subordinated note payable agreement, the Company is subject to certain restrictions, which include, but are not limited to, making equity distributions; limitations on indebtedness, capital expenditures, management fees and leases; and restrictions
on investments. The note also contains a clause that, as permitted under the subordination agreement, requires the Company to prepay the outstanding amount based on excess cash flow, as defined in the agreement. The note also provides for an exit
fee that is the greater of $4,250,000 or 8.6% per annum of the outstanding principal balance ($1,160,350 at December 31, 2018), payable upon any change of control that occurs prior to the payoff of the amounts due under the note. For the years
ending December 31, 2018 and 2017, the Company prepaid $2,000,000 and $0, respectively, of the exit fee and is included in interest expense and exit fee on the consolidated statements of income.


5,000,000



5,000,0008,811,372



10,069,380Less current maturities


7,375,180



1,930,719$
1,436,192


$
8,138,661 Annual maturities of long-term debt at December 31, 2018, are as follows:  Year ending
December 31,2019

$
7,375,1802020


1,241,5692021


194,623$
8,811,372 The notes payable above contain certain restrictive covenants common to these arrangements.  10




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GALAXY TOOL HOLDING CORPORATION AND SUBSIDIARY NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS  6.
INCOME TAX Deferred taxes consist of the following at December 31:  2018


2017Accounts receivable

$
7,000


$
3,000Accrued expenses


71,000



29,000State credit carryforwards expire beginning in 2026


685,000



676,000Interest expense limitation


451,000



Federal credits


544,000



Prepaid expenses


(28,000
)


Property, plant and equipment


(1,764,000
)


(1,632,000
)(34,000
)


(924,000
)Less valuation allowance


(652,000
)


(676,000
)Deferred tax liabilities

$
(686,000)


$
(1,600,000) At December 31, 2018 and 2017, the Company has state tax credits totaling $685,000 and $676,000,
respectively. Management determined that some of these carryforwards may expire before they are utilized, and has established a valuation allowance to offset a portion of these tax assets, to the extent they will not be used to reduce future
deferred tax liabilities. The valuation allowance decreased by $24,000 in the current year due to changes in the estimates and utilization of some of these credits. Income tax expense (benefit) for the years ended December 31 is comprised of the following:  2018


2017Current

$
(168,134
)

$
117,167Deferred


(914,000
)


(893,000
)Total

$
(1,082,134
)

$
(775,833
) The income tax provision differs from the amount of income tax determined by applying the U.S. federal income
tax rate to pretax income from operations because of state taxes, federal and state tax credits and nondeductible expenses. For 2017, income tax expense was decreased by approximately $860,000, which was a change in estimate attributed to the Tax
Cuts and Jobs Act of 2017.  7.
EMPLOYEE BENEFIT PLAN The Company has a defined contribution plan covering all employees meeting the eligibility requirements of the plan. The Company contributes a
discretionary percentage of employee contributions as determined annually by the Board of Directors. Retirement plan matching expense for the years ended December 31, 2018 and 2017 was $81,226 and $55,581, respectively.  11




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GALAXY TOOL HOLDING CORPORATION AND SUBSIDIARY NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS  8.
OPERATING LEASES The Company leases equipment under operating leases expiring in years through 2021. Total rent expense under all operating leases amounted to
$206,682 and $284,888 for the years ended December 31, 2018 and 2017, respectively. The following is a schedule of future minimum
rental payments required under the noncancelable operating leases as of December 31, 2018:  Year Ending December 31,2019

$
114,6732020


86,0042021


43,002$
243,679  9.
COMMON AND PREFERRED STOCK Common stock consists of Class A, B and C shares. Class A and B shares are voting. Class C shares are non-voting. Upon a triggering event, such as a letter of intent to sell the Company, failure to meet certain EBITDA levels or a default under the loan agreements, the Class B shares may become Class A
shares at the option of the holder. Upon corporate liquidation or dissolution, after preferred shareholders receive their liquidation value, the remaining proceeds are divided between Class A and B shares, except that the proceeds allocated to
Class B shares are allocated in part to Class C shares based on certain internal rates of return earned by one of the principal stockholders on his preferred and common stock investment in the Company. Preferred stock consists of series A, B, C, D and E shares carried at the original issue price of $1 per share for Series A and B, $3.50
for Series C, $12.30 for Series D and $100 for Series E. All shares are designated as nonvoting. However, a majority of Series A, C, D and E shareholders must approve certain corporate matters of significance, including amendments to the
Articles of Incorporation, share issuances or redemptions, asset or stock sales or mergers, hiring of a Chief Executive Officer and change in number of board members. Dividends on the shares are payable when and if declared by the board. Dividends
compound annually and are cumulative. Dividend rates are 15% on Series A shares, 6% on Series B, 15% on Series C and 6% on Series D (prior to February 28, 2013 the dividend rate was 17.5% on Series D) and 17.75% of Series E. Series E
shares have first priority in liquidation or dissolution, receiving their original issuance price plus unpaid dividends. Series D shares have second priority in liquidation or dissolution, receiving their original issuance price plus unpaid
dividends. Series C shares have third priority receiving 1.5 times their original issuance price plus unpaid dividends; followed by Series A shares and lastly Series B shares, both of which receive their original issue price plus unpaid dividends.  12




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GALAXY TOOL HOLDING CORPORATION AND SUBSIDIARY NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS  9.
COMMON AND PREFERRED STOCK (CONTINUED)  All shares may be redeemed at the holders option after six years from the date of
issuance. The redemption dates are August 2014 for Series A and B shares, August 2016 for Series C or D shares and December 2021 for Series E, or after satisfaction of all amounts due under loans extended to the Company by the holders (see Note
6). Redemption is mandatory in the case of a qualified public offering of the Companys common stock. The agreement between the
stockholders also provides for various rights of electing the members of the Companys Board of Directors and requires consents as to the sale of the Company. In connection with the acquisition discussed in Note 2, the Company issued warrants to an outside entity for investment banker services to
allow the entity to purchase 5,389 Class A common shares for $1 per share. No value was ascribed to the warrants. The warrants expire in August 2020.  10.
MAJOR CUSTOMERS Sales to major customers and accounts receivable balances for the years ended December 31 are as follows:  2018


2017Percent ofSales


Percent ofAccountsReceivable atDecember 31


Percent ofSales


Percent ofAccountsReceivable atDecember 31Customer A


17
%


14
%


21
%


28
%Customer B


2
%


1
%


12
%


9
%Customer C


19
%


6
%


11
%


4
%  11.
RELATED PARTIES The Company pays a management service fee to certain stockholders. In August 2010, the Company and stockholder entered into an agreement
deferring payment until the Board decides payments may resume; however, the fee continues to accrue. Total expense for each of the years ended December 31, 2018 and 2017 was $225,000. Included in accrued expenses at December 31, 2018 and
2017 are fees of $1,912,500 and $1,687,500, respectively, that remain payable. As discussed in Note 5, the Company has a line-of-credit and a subordinated note payable with the same stockholder. Interest expense for the years ended December 31, 2018 and 2017 was $841,797 and $827,780,
respectively, on these agreements.  12.
SELF-FUNDED INSURANCE PLAN The Company maintains a partially self-funded insurance plan for employee medical coverage. The plan has stop-loss insurance that limits the
Companys losses during the policy period to $50,000 per person or an aggregate stop-loss of 125% of the expected incurred claims expense up to approximately $1,175,000.  13