Exhibit 99.3 COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2018




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TABLE OF CONTENTS  INDEPENDENT AUDITORS REPORT


1CONSOLIDATED FINANCIAL STATEMENTSConsolidated Balance Sheet


2Consolidated Statement of Comprehensive Income


3Consolidated Statement of Changes in Members Equity (Deficit)


4Consolidated Statement of Cash Flows


5Notes to Consolidated Financial Statements


6




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INDEPENDENT AUDITORS REPORT To the Board of Directors and Member of Copperweld Bimetallics
LLC Fayetteville, Tennessee We have audited the
accompanying consolidated financial statements of Copperweld Bimetallics LLC (the Company), a subsidiary of THL Credit Copperweld Holdings LLC, and its subsidiary, which comprise the consolidated balance sheet as of December 31, 2018, and the
related consolidated statements of comprehensive income, changes in members equity (deficit), and cash flows for the year then ended, and the related notes to the consolidated financial statements. Managements Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles
generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures
selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal
control relevant to the entitys preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entitys internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Copperweld
Bimetallics LLC and its subsidiary as of December 31, 2018, and the results of their operations and their cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Sincerely, /s/ Anglin Reichmann Armstrong, P.C. CERTIFIED PUBLIC ACCOUNTANTS March 5, 2019




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COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31,
2018    AssetsCurrent AssetsCash and cash equivalents

$
974,801Trade accounts receivable, less allowances for doubtful accounts of $23,421


8,953,602Other receivables


243,565Inventories


10,213,630Deferred tax assets - current


11,955Other current assets


980,714Total Current Assets


21,378,267Noncurrent AssetsProperty, plant, and equipment, net


10,832,943Contract right intangible, net


14,838,000Deferred tax assets - noncurrent


1,245,013Other noncurrent assets


330,986Total Noncurrent Assets


27,246,942Total Assets

$
48,625,209Liabilities and Members EquityCurrent LiabilitiesRevolver note payable

$
2,279,125Trade accounts payable


4,941,179Accrued liabilities


1,617,746Accrued wages and salaries


1,149,351Customer deposits


344,434Accrued taxes


30,557Other accruals


593,622Total Current Liabilities


10,956,014Noncurrent LiabilitiesLong-term debt, net


7,770,663Total Noncurrent Liabilities


7,770,663Total Liabilities


18,726,677Members EquityMembers contribution


52,982,604Accumulated other comprehensive loss


(952,069
)Accumulated deficit


(22,132,003
)Total Members Equity


29,898,532Total Liabilities and Members Equity

$
48,625,209  The accompanying notes are an integral
part of these consolidated financial statements.  2




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COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE
YEAR ENDED DECEMBER 31, 2018    Gross sales

$
95,867,013Deductions


(3,626,779
)Net sales


92,240,234Cost of sales


78,164,465Gross margin


14,075,769Sales and marketing


4,537,386General and administrative


5,811,965Income (loss) from operations


3,726,418Other income (expenses)Other nonoperating income (expense)


(244,979
)Interest expense


(1,385,365
)Total other income (expenses)


(1,630,344
)Income (loss) before taxes


2,096,074Income tax (benefit) expense


(1,256,968
)Net income (loss)


3,353,042Other comprehensive income (loss), net of taxForeign currency translation adjustments


(99,821
)Total Comprehensive Income (Loss)

$
3,253,221  The accompanying notes are an integral
part of these consolidated financial statements.  3




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COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS EQUITY (DEFICIT) FOR THE YEAR ENDED DECEMBER 31, 2018    MembersContribution


AccumulatedOtherComprehensiveIncome (Loss)


AccumulatedDeficit


TotalAs of December 31, 2017

$
54,024,923


$
(852,248
)

$
(24,788,363
)

$
28,384,312Net income










3,353,042



3,353,042Member distribution


(1,200,000
)










(1,200,000
)Dividends paid










(539,001
)


(539,001
)Dividend PIK


157,681







(157,681
)


Change of cumulative currency translation






(99,821
)






(99,821
)As of December 31, 2018

$
52,982,604


$
(952,069
)

$
(22,132,003
)

$
29,898,532  The accompanying notes are an integral
part of these consolidated financial statements.  4




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COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR
ENDED DECEMBER 31, 2018    Cash Flows from Operating ActivitiesNet income

$
3,353,042Adjustments to reconcile net income to net cash provided by operating activities:Depreciation


1,931,907Amortization of contract right intangible asset


3,000,000Amortization of debt issuance discount


198,292Deferred tax benefit


(1,256,968
)Loss on disposal of property and equipment


69,394Changes in asset and liability accounts:Accounts receivable, net


(1,707,316
)Inventories


(708,614
)Other receivables and prepayments


(157,662
)Accounts payable


1,243,775Other payables and accrued liabilities


533,883Taxes payable


865Net Cash Provided by Operating Activities


6,500,598Cash Flows from Investing ActivitiesPurchases of property and equipment


(1,927,635
)Proceeds from sale of property and equipment


47,500Net Cash Used in Investing Activities


(1,880,135
)Cash Flows from Financing ActivitiesDividends to member


(356,720
)Capital distribution


(800,000
)Borrowings (payments) on revolver note payable, net


(2,812,802
)Payment on loan finance cost


(14,175
)Net Cash Used in Financing Activities


(3,983,697
)Effect of exchange rate on cash


(19,286
)Net Increase in Cash and Cash Equivalents


617,480Cash and Cash Equivalents, Beginning of Year


357,321Cash and Cash Equivalents, End of Year

$
974,801Supplemental InformationCash paid for interest

$
1,436,556Noncash financing activity - dividends to member


157,681  5




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COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE
YEAR ENDED DECEMBER 31, 2018    Note 1 - Organization Copperweld Bimetallics LLC (Copperweld Bimetallics, Copperweld, or the Company) is a Delaware limited liability company located in Fayetteville, Tennessee.
Copperweld is a wholly owned subsidiary of THL Credit Copperweld Holdings LLC (Parent or Holdings). Copperweld is engaged in the manufacturing and distribution of bimetallic wire and strand products for use in cable television, telecommunications,
electrical utility, electronics, and other industrial and transit application. Copperweld Bimetallics U.K. Limited (Copperweld U.K.) is a United Kingdom
private company located in Telford, England. Copperweld U.K. is a wholly owned subsidiary of Copperweld Bimetallics. Copperweld Bimetallics and Copperweld U.K. are engaged in the manufacturing and distribution of bimetallic wire and strand products
for use in cable television, telecommunications, electrical utility, electronics, and other industrial and transit applications. Copperweld Bimetallics and Copperweld U.K. (collectively referred to as the Company) have customers throughout the
United States and the world. Copperweld has a sales office that is registered in Ghent, Belgium (Copperweld Bimetallics LLC Europe). Note 2 - Significant Accounting Policies (a)
Principles of Consolidation The accompanying consolidated financial statements include the accounts of Copperweld Bimetallics, its branch office in
Belgium and its wholly owned subsidiary, Copperweld U.K. All significant intercompany balances and transactions have been eliminated in consolidation. The Company has no investments in variable interest entities. (b) Basis of Accounting The Companys financial
statements are prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (GAAP) where income is recognized when earned and expenses are recorded when incurred. (c) Use of Estimates The preparation of consolidated
financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and
assumptions include the useful lives of property, plant and equipment, useful lives of contract right intangible, allowances for doubtful accounts and sales returns, and valuation of deferred tax assets, property, plant and equipment, contract right
intangible, inventory, and income tax uncertainties, other contingencies, and the gain recognized in conjunction with the Companys restructuring in 2016. (d) Segment Reporting The Company has one operating
segment which is bimetallic wire and strand products. Management has chosen to organize the Company based on the type of products sold. Substantially all of the Companys assets are located in the United States.  6




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COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2018    Note 2 - Significant Accounting Policies - Continued  (e) Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. (f) Trade Accounts Receivable Trade accounts receivable
are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains an allowance
for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and the Companys
customers financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. The Company reviews its allowance for doubtful accounts monthly.
Past-due balances over 90 days and over a specified amount are reviewed individually for collectability. Allowance for doubtful accounts was $23,421 for the year ended December 31, 2018. Account balances
are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company did not write off any bad debts during the year ended December 31, 2018. The Company does
not have any off-balance-sheet credit exposure related to its customers. (g) Inventories Inventories are measured at the lower of cost and market. The cost of inventories is based on the first-in, first-out principle, and includes expenditures incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to their existing location and condition. In the case
of finished goods and work in progress, costs include an appropriate share of production overheads based on normal operating capacity. (h) Revenue
Recognition Revenue from sales of Copper-Clad Aluminum (CCA) and Copper-Cold Steel (CCS) is recognized when all of the following conditions are met:
persuasive evidence of an arrangement exists, delivery of the products has occurred, the fee is fixed or determinable and collectability is reasonably assured. The Companys products are considered delivered at the point when the title
transfers and the customer assumes the risk of loss. Delivery is evidenced by signed bills of lading for sales. The Companys sales agreements do
not provide customers the right of return, price protection or any other concessions. However, the Company allows for an exchange of products or return if the products are defective. For the years presented, defective product returns were
immaterial. Although most of the Companys products are covered by its warranty programs, the terms and conditions of which vary depending on the
customer and the product sold. Because the Company has not experienced any significant warranty claims in the past, the Company has not established any reserve for warranty claims or defective products. For sales made to customers in certain countries, the Companys sales are net of value added tax, or VAT, collected on behalf of tax authorities in
respect of product sales. VAT collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheet until it is paid to the tax authorities.  7




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COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2018    Note 2 - Significant Accounting Policies - Continued  (i) Shipping and Handling Costs Freight billed to customers is considered sales revenue and the related freight costs as a sales and marking expense. For the year ending December 31,
2018, shipping and handling costs of $1,716,602 were recorded in sales and marketing on the consolidated statement of comprehensive income. (j)
Property, Plant, and Equipment Property, plant, and equipment are stated at cost. Depreciation is recognized in profit or loss on a straight-line
basis over the estimated useful lives of each part of an item of property, plant, and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. The estimated useful lives for the current and comparative periods are as follows:  YearsBuildings

40Building improvements

3-20Machinery and equipment

3-25Furniture and fixtures

3-7Computer equipment

3-5Vehicles

3 Depreciable methods, useful lives, and residual values are reviewed at each financial
year-end and adjusted if appropriate. Amortization expense and accumulated amortization are included in depreciation expense and accumulated depreciation, respectively. (k) Intangible Assets Intangible assets, consisting of
contract rights, are amortized on a straight-line basis, which approximates the economic benefit, over its useful life of 10 years based on the contract terms. (l) Long-lived Assets Long-lived assets, such as
property, plant, and equipment, and purchased intangible assets subject to amortization and depreciation, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of
the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques
including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary.  8




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COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2018    Note 2 - Significant Accounting Policies - Continued  (l) Long-lived Assets - continued  Long-lived assets, such as property, plant, and equipment, and purchased intangible
assets subject to amortization and depreciation, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group
be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on
an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values,
and third-party independent appraisals, as considered necessary. The company reviews each quarter to assess whether events or changes in circumstances
(triggering events) indicate that the carrying value of the contract right intangible may not be recoverable. If there is a triggering event, the Company then compares the undiscounted cash flow projections to the carrying value (recoverability
test). If the undiscounted cash flows are less than the carrying value then the Company compares the carrying value to its fair value to assess and measure any potential impairment. The trigging events include but are not limited to: (i) a
significant decrease of volume; (ii) a significant increase of cost to produce goods; (iii) a significant decrease in current period earnings before interest, taxes, depreciation and amortization (EBITDA) attributable to the contract right
intangible that demonstrates continuing insufficient EBITDA associated with the use of contract right intangible; and (iv) a current expectation that is more likely than not (more than 50%), the contract right will be terminated or otherwise
disposed of significantly before the end of its previously estimated useful life. The result of the evaluation of triggering events may require a further impairment analysis under Accounting Standards Codification (ASC) 360-10-35. (m) Foreign Currency Translation Copperweld U.K.s accounting records are measured using local currency (British pounds) as the functional currency. All of the assets and liabilities of
the subsidiary are converted to U.S. dollars at the exchange rate in effect at the balance sheet date, income and expense accounts are translated at average rates for the period, and members equity accounts are translated at historical rates.
The net effect of foreign currency translation adjustments is included in members equity as a component of accumulated other comprehensive income in the accompanying consolidated balance sheets. Foreign currency transaction gains or losses are
credited or charged to income as incurred.  9




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COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2018    Note 2 - Significant Accounting Policies - Continued  (n) Income Taxes Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss. Current tax is the expected tax payable
or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the
amounts used for taxation purposes. It is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax
assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but
they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred
tax asset is recognized for unused tax losses, tax credits, and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at
each reporting date and a valuation allowance is provided to reduce the carrying amount of deferred income tax assets if it is considered more likely than not that some portion or all of the deferred income tax assets will not be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions
are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company has elected to classify interest and
penalties related to unrecognized tax benefits, if and when required, as part of income tax expense in the consolidated statements of comprehensive income. (o) Leases Payments made under operating leases are
recognized in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognized as an integral part of the total lease expense, over the term of the lease. (p) Fair Value Measurement and Financial Instruments The
respective carrying value of certain financial instruments of the Company approximates their fair value. These instruments include cash, trade accounts receivable, long-term debt, and accounts payable. Fair values of cash, trade accounts receivables
and accounts payable are assumed to approximate carrying values for these financial instruments since they are short term in nature and their carrying amounts approximate fair values, they are receivable or payable on demand, or the interest rates
earned and/or paid approximate current market rates. The Company has no assets and liabilities measured at fair value on a recurring basis.  10




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COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2018    Note 2 - Significant Accounting Policies - Continued  (q) Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a
liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. From time to time, the Company is subject to claims arising in the ordinary course of business. In the opinion of management, the ultimate resolution of any
such claims as of December 31, 2018 will not have a material effect on the liquidity, cash flows or financial position of the Company or on its operations. Accruals for estimated losses from environmental remediation obligations generally are recognized no later than completion of the remedial feasibility study.
Such accruals are adjusted as further information develops or circumstances change. Costs of expected future expenditures for environment remediation obligations are not discounted to their present value. The Company has no accrued losses for
environmental remediation obligations, and is not aware of any claims, as of December 31, 2018, except as disclosed in footnote 11(b). The Company
has a License Agreement with Nexans Deutschland GmbH (Nexans). Pursuant to the agreement, the Company must pay royalties for CCA that is produced by all of its present and future affiliated companies worldwide using equipment designed by
Nexans (KM line). The agreement terminates on December 31, 2026. Total royalty fees under the agreement were $239,452 for the year ended December 31, 2018. (r) Concentrations of Credit Risk The Company maintains
cash in high quality financial institutions. Financial institutions in the U.S are insured up to $250,000 per bank by the Federal Deposit Insurance Corporation. Financial institutions in the U.K. are insured up to £85,000 (approximately
$95,000 at December 31, 2018) per bank by the Financial Services Compensation Scheme. Financial institutions in Belgium are insured up to 100,000 (approximately $111,000 at December 31, 2018) by the Protection Fund for Deposits and
Financial Instruments. At times, the balances in these accounts may be in excess of insured limits. At December 31, 2018, the Company had $141,019 in excess of insured limits. (s) Subsequent Events The Company has evaluated events
from the balance sheet date through March 5, 2019, the date at which the consolidated financial statements were available to be issued. The Company has determined that there are no other items to disclose.  11




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COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2018    Note 3 - Asset Purchase On December 11, 2013, Copperweld Bimetallics entered into an Asset Purchase Agreement (APA) and other ancillary agreements with CommScope, Inc. of North
Carolina (CS) whereby Copperweld Bimetallics purchased the bimetallic manufacturing assets of CS for $38 million and entered into a 10-year supply agreement to provide CS with their bimetallic wire
requirements. The assets, both tangible and intangible, are recorded at their estimated fair values as of the acquisition date. The assets purchased in
the CS acquisition are presented below at their estimated fair values as of the acquisition date of December 11, 2013:  Assets:Equipment

$
8,000,000
(a)Contract right intangible


30,000,000
(b)Net assets acquired at fair value

$
38,000,000 (a) Equipment Under the
APA, Copperweld Bimetallics purchased all of CSs bimetallic rod and wire manufacturing equipment worldwide including all aluminum and steel copper cladding lines, drawing lines, fine wire drawing lines, furnaces, and a respooling line. Also
included was all the ancillary equipment, consumables, and spare parts, such as rod welders, drawing lubrication systems, drawing dies, mill rolls, etc. This equipment was developed and is specifically utilized for the manufacture of copper-clad
aluminum (CCA) and copper-clad steel (CCS) rod and wire products. (b) Contract Right Intangible As part of the APA, the Company entered into a 10-year exclusive supply agreement with CS, pursuant to which the
Company agreed to supply CS and its subsidiaries with 100% of their requirements for specified CCA and CCS products in the United States and 100% of their requirements for specified CCA products in the Peoples Republic of China, or PRC, and
Scotland (which products are collectively referred to as covered products). On September 29, 2016, the Company and CS entered into the Amendment to Supply Agreement, under which CS shall be required to purchase at least 80%, rather than all, of
the Covered Product from the Company. Notwithstanding the obligation to buy 80% of the Covered Product from the Company, CommScope represents to the Company that CommScope intends to purchase 100% of the Covered Product from the Company. The Company
also has a right of first offer under the supply agreement to be CSs exclusive supplier if CS desires to purchase, in addition to the covered products, other CCA or CCS bimetallic wire or wire feedstock for use in the United States or other
CCA bimetallic wire or wire feedstock in the PRC or Scotland. Aggregate amortization expense was $3,000,000 for the year ended December 31, 2018. Accumulated amortization was $15,162,000 at December 31, 2018. Estimated amortization expense
for each of the next four years is $3,000,000 and $2,838,000 for the fifth and final year.  12




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COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2018    Note 4 - Market Concentrations The Company has two production facilities. One is located in Fayetteville, Tennessee, in the United States (U.S.), and the other is located in Telford,
England, in the U.K. The Company sells to manufacturing companies worldwide that operate primarily in the telecommunications, electrical utility, and transportation industries. The percentages of the Companys gross sales from its products for the year ended December 31, 2018 are as follows:  Amount


Percentageof TotalCCA

$
40,714,610



42
%CCS


53,117,291



56
%Others


2,035,112



2
%Total

$
95,867,013



100
% The United States is the only country that exceeds 10% of gross sales. The percentages of the Companys gross sales from
customers located in the United States and other countries for the year ended December 31, 2018 are as follows:  Amount


Percentageof TotalUnited States

$
70,412,088



73
%European countries


13,254,474



14
%Other countries


12,200,451



13
%Total

$
95,867,013



100
% Customers revenue individually exceeding 10% of the Companys total revenue for the year ended December 31,
2018 are as follows:  Amount


Percentageof TotalCustomer A

$
26,828,880



28
% Accounts receivable from individual customers that exceeded 10% of the Companys accounts receivable, net, as of
December 31, 2018 are as follows:  Amount


Percentageof TotalCustomer A

$
1,424,359



16
%  13




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COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2018    Note 5 - Inventories Inventories consist of the following at December 31, 2018:  Raw materials

$
3,379,607Work in process


1,766,142Finished goods


5,067,881Total inventories

$
10,213,630 The Company purchases raw materials from a limited number of suppliers. Eight major suppliers provided approximately 97% of
the Companys raw materials for the year ended December 31, 2018. Note 6 - Property, Plant, and Equipment Property, plant, and equipment consist of the following as of December 31, 2018:  Building

$
2,524,805Building and improvements


855,699Furniture and fixtures


4,599Vehicles


70,276Computer hardware and software


499,391Machinery and equipment


26,643,21730,597,987Less accumulated depreciation


(20,536,149
)10,061,838Land


100,726Construction in progress


670,379Total property, plant, and equipment, net

$
10,832,943 Depreciation expense was $1,931,907 for the year ended December 31, 2018. Construction in progress as of December 31, 2018 primarily consists of upgrades to existing equipment.  14




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COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2018    Note 7 - Revolver Loan Payable & Long-term Debt Revolver Loan Payable at December 31, 2018 consists of:  U.S. revolving credit facilities:Fifth Third revolving credit facility

$
2,002,536UK invoice discounting credit facility


276,589Revolver Loan Payable

$
2,279,125 Long-term debt at December 31, 2018 consists of the following:  Senior loan

$
8,000,000Total long-term debt


8,000,000Less current portion


Long-term debt, excluding current portion


8,000,000Less unamortized discount and debt issuance cost


229,337Long-term debt, excluding current portion, net

$
7,770,663 Future contractual maturities of long-term debt as of December 31, 2018 are as follows:  AmountYear ending December 31,2019

$
2020


2021


8,000,0002022


2023


Thereafter


Principal amount

$
8,000,000Less unamortized debt issuance costs


(229,337
)Long term debt, net

$
7,770,663 The $8,000,000 that matures in 2021 is held by an affiliate of the Company Parent. The Senior loan bears a contractual
interest rate of 12%. The Company had a balance outstanding on the revolving credit facilities of $2,002,536 as of December 31, 2018. The interest
rate for the Fifth Third revolving credit facility is based on the 30-day London Interbank Offered Rate (the LIBOR Rate) plus the applicable margin of 2.5% per annum. The Company paid an initial commitment fee
of $65,000, and is also required to pay a monthly fee of 0.50% on available but unused amounts under the revolving credit facility.  15




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COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2018    Note 7 - Revolver Loan Payable & Long-term Debt - Continued  At December 31, 2018, the Company was obligated under a term loan (Senior loan)
with a principal amount of $8,000,000. The term loan bears interest at 12% and matures on October 5, 2021. The Companys debt agreements
contain certain quarterly and annual financial covenants, customary events of default and covenants, including covenants that restrict the ability of the Company to incur certain additional indebtedness, create or permit liens on assets, engage in
mergers or consolidations, and certain restrictive financial covenants. If any event of default shall have occurred and be continuing, the lenders may have elected to declare the loan immediately due and payable. Copperweld U.K. Copperweld U.K. maintains an invoice
discounting credit facility with a limit of £750,000. The facility provides cash advances of up to 85% of approved sales ledgers which are secured by trade accounts receivable of Copperweld U.K. The facility bears interest at a variable rate
based on the Bank of England base rate. The facility automatically renews every year based on an annual review conducted by the financing institute. Copperweld U.K. is required to maintain a projected turnover each
12-month period and a minimum net worth of £750,000 at all times if the credit facility has an outstanding balance. The facility had a balance outstanding of $276,730 as of December 31, 2018.
Copperweld UK was in compliance with all covenants related to its credit facility as of December 31, 2018. Note 8 - Operating Leases The Company leases certain property and equipment under the terms of operating lease agreements expiring October 2019 through December 2023. Rent expense under
these leases was approximately $252,746 for the year ended December 31, 2018. Future minimum rentals for years subsequent to December 31, 2018 are as follows:  AmountYear ending December 31,2019

$
253,8352020


220,0632021


213,9052022


192,8412023


119,682Thereafter


$
1,000,326  16




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COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2018    Note 9 - Income Taxes Income tax expense (benefit) for the year ended December 31, 2018 consists of the following:  OtherComprehensiveIncome


Current


Deferred


TotalYear ended December 31, 2018:US federal

$



$



$
(649,606
)

$
(649,606
)State and local










(607,362
)


(607,362
)$



$



$
(1,256,968
)

$
(1,256,968
) A reconciliation of federal income tax expense (benefit) at the statutory rate to the Companys actual income tax expense
for the year ended December 31, 2018 is shown below:  Computed at statutory rate (21%)

$
440,176Nondeductible expenses and other permanent differences


25,209State income taxes


89,922Gain from foreign subsidiary


(88,149
)Foreign rate differential and valuation allowance


(1,724,126
)Income tax expense (benefit)

$
(1,256,968
) Components of the net deferred tax assets and liabilities at December 31, 2018 are as follows:  Deferred tax assets:Accrued wages and compensated absences

$
11,955Losses from foreign subsidiary


262,922Net operating loss carryforward


552,643Property and equipment, principally due to depreciation


692,3701,519,890Deferred tax liabilities:Depreciation from foreign subsidiary


(139,224
)(139,224
)Valuation allowance


(123,698
)Net deferred tax asset

$
1,256,968  17




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COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2018    Note 9 - Income Taxes - Continued  The Companys subsidiary, Copperweld U.K., located in the United Kingdom, files tax
returns in the United Kingdom. The accumulated losses recorded related to this subsidiary are not recognized for tax purposes in the United States until the investment is disposed as the Company treats income of the subsidiary as permanently
reinvested. The Company has not provided U.S. income taxes for $1,383,796 of accumulated undistributed losses of its Copperweld U.K. subsidiary as of December 31, 2018. Additionally, the Companys cash balances at Copperweld U.K. were $97,837
as of December 31, 2018. The Company does not intend to repatriate future earnings of Copperweld U.K. and would need to consider the tax implications if these funds were repatriated. There was no valuation allowance for domestic deferred tax assets as of December 31, 2018. There was a valuation allowance for foreign deferred tax asset
of $123,698 as of December 31, 2018. Total valuation allowance was $123,698 as of December 31, 2018. The net change in the valuation allowance was $(1,776,016) for the year ended December 31, 2018. No valuation allowance for the
domestic deferred tax assets was accrued at December 31, 2018 as the assets were considered fully realizable in the future. The valuation allowance
reduces the deferred tax assets to the amounts that are more likely than not to be realized, which include substantially all deferred tax assets. In assessing the realizability of deferred tax assets, management considers whether it is more likely
than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences
become deductible and NOLs can be applied. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income, and tax planning
strategies in making this assessment. The tax returns of the U.S. Entities are subject to U.S. income tax examination by tax authorities. Both federal
and state income tax return are subject to audit for the years from 2014 to 2018. The Companys consolidated tax returns, under its previous structure prior to restructuring in 2016, for fiscal years 2015 and 2016 are the remaining years
subject to audit. The Companys tax return, under its current structure, for fiscal years 2016, 2017, and 2018 are the remaining years subject to audit. The Company recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon
examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. The company has analyzed potential liability for uncertain tax
positions, and has not accrued for uncertain tax positions or unrecognized tax positions as of December 31, 2018. As of December 31, 2018, the Company did not have any unrecognized tax benefits and thus no interest or penalties related to
unrecognized tax benefits were recorded. In addition, the Company does not expect that the amount of unrecognized tax benefits will change significantly within the next 12 months. Note 10 - 401(k) and Profit Sharing Plan Copperweld
Bimetallics U.S. employees are provided a 401(k) plan. U.S. employees are eligible for the defined contribution plan after three months of full-time employment. Employee deferrals and company matching are 100% vested immediately upon eligibility.
Copperweld Bimetallics matches up to 4% for participating employees. The cost recognized by the Company for matching contributions was $167,761 for the year ended December 31, 2018.  18




---

COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2018    Note 10 - 401(k) and Profit Sharing Plan - Continued  Copperweld U.K. operates a defined contribution pension scheme for employees. All U.K.
employees are eligible to join the pension on satisfactory completion of their trial period, which is typically three months. U.K. employees can contribute as much as they like subject to current U.K. laws, but the Company will match only the first
2.5% of gross pay in the current year. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to expense. The cost recognized by the Company was approximately $16,642 for the year ended
December 31, 2018. Note 11 - Commitments and Contingencies (a) Product Warranties The Companys product
warranties against technical defects of its copper-clad products wires vary, depending on sales orders with each customer. The warranties require the Company to replace defective components and pay for the losses customers incur from defective
products or a certain percentage of the selling price as liquidated damages for the Companys failure to meet the specified product specifications and packaging requirements in the sales orders. The Company has not established any reserves for
potential warranty claims as historically they have experienced few warranty claims for their products for amounts that were not material. (b)
Environmental Remediation Obligations The Companys operations are subject to extensive regulations governing the creation, use, transportation
and disposal of wastes and hazardous substances, air and water emissions, remediation, workplace exposure and other environmental matters. The costs of complying with such laws and regulations, including participation in assessments and clean-ups of sites, as well as internal voluntary programs, can be significant and will continue to be so for the foreseeable future. Future environmental regulations could impose stricter compliance requirements on
the Company and the end markets that they serve. Additional pollution control equipment, process changes, or other environmental control measures may be needed at some of the Companys facilities to meet future requirements. Additionally,
evolving regulatory standards and expectations could result in increased litigation and/or increased costs of compliance with environmental laws, all of which could have a material and adverse effect on our business, financial condition, results of
operations and cash flows. Environmental matters for which the Company may be liable may arise in the future at the Companys present sites, at
previously owned sites, sites previously operated by the Company, or sites owned by the Companys predecessors. The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), established responsibility for clean-up without regard to fault for persons who have released or arranged for disposal of hazardous substances at sites that have become contaminated and for persons who own or operate contaminated facilities.  19




---

COPPERWELD BIMETALLICS LLC AND SUBSIDIARY (A SUBSIDIARY OF THL CREDIT COPPERWELD HOLDINGS LLC) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED DECEMBER 31, 2018    Note 11 - Commitments and Contingencies - Continued  In many cases, courts have imposed joint and several liability on parties at CERCLA clean-up sites. The Companys Fayetteville location is located an industrial use area, which may have been contaminated by pollutants which may have migrated from neighboring facilities or have been released by
prior occupants. Some of the Companys properties have been affected by releases of cutting oils and similar materials, and the Company is investigating and remediating such known contamination pursuant to applicable environmental laws.
Although the costs of these clean-ups are not reasonably estimable at this time, the Company does not expect for the ultimate resolution to have a material effect on the Companys consolidated financial
statements. The Company is currently participating in funding an environmental investigation for a Superfund Site for Chemetco, a secondary copper
smelting facility in Southern Illinois, which operated from 1970 to 2001 and to which the Company, along with hundreds of other companies, indirectly shipped scrap metal for recycling. A reasonable estimate of the possible loss or range of loss
cannot be made until the site investigation and cleanup plan, as well as the Environmental Protection Agencys review of all shipping records, are complete.  20