v3.21.1
Summary of Significant Accounting Policies (Policies)
 3 Months Ended 12 Months Ended
Mar. 31, 2021
Mar. 27, 2021
Dec. 31, 2020
Dec. 26, 2020
Use of Estimates in the Preparation of Financial Statements

Use of Estimates

The preparation of these financial statements 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 financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the accompanying financial statements include the valuation of equity instruments recorded as warrant derivative liabilities.

 

Use of Estimates

The preparation of these financial statements 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 financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates

 
Hman Group holdings Inc and subsidiaries        
Use of Estimates in the Preparation of Financial Statements  

Use of Estimates in the Preparation of Financial Statements:

The preparation of 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 dates of the financial statements and the reported amounts of revenues and expenses for the reporting periods. Actual results may differ from these estimates.

The extent to which COVID-19 impacts the Company’s business and financial results will depend on numerous evolving factors including, but not limited to: the magnitude and duration of COVID-19, the extent to which it will impact worldwide macroeconomic conditions including interest rates, employment rates and health insurance coverage, the speed of the anticipated recovery, and governmental and business reactions to the pandemic. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of March 27, 2021 and through the date of this report. The accounting matters assessed included, but were not limited to the carrying value of the goodwill and other long-lived assets. While there was not a material impact to the Company’s consolidated financial statements as of and for the quarter ended March 27, 2021, the Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s Consolidated Financial Statements in future reporting periods.

 

Use of Estimates in the Preparation of Financial Statements:

The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amount 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 for the reporting period. Actual results may differ from these estimates.

The extent to which COVID-19 impacts the Company's business and financial results will depend on numerous evolving factors including, but not limited to: the magnitude and duration of COVID-19, the extent to which it will impact worldwide macroeconomic conditions including interest rates, employment rates and health insurance coverage, the speed of the anticipated recovery, and governmental and business reactions to the pandemic. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts COVID-19 as of December 26, 2020 and through the date of this report. The accounting matters assessed included, but were not limited to the carrying value of the goodwill and other long-lived assets. While there was not a material impact to the Company's Consolidated Financial Statements as of and for the year ended December 26, 2020, the Company's future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company's Consolidated Financial Statements in future reporting periods.

Revenue Recognition  

Revenue Recognition:

Revenue is recognized when control of goods or services is transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue.

The Company offers a variety of sales incentives to its customers primarily in the form of discounts and rebates. Discounts are recognized in the consolidated financial statements at the date of the related sale. Rebates are based on the revenue to date and the contractual rebate percentage to be paid. A portion of the cost of the rebate is allocated to each underlying sales transaction. Discounts and rebates are included in the determination of net sales.

The Company also establishes reserves for customer returns and allowances. The reserve is established based on historical rates of returns and allowances. The reserve is adjusted quarterly based on actual experience. Returns and allowances are included in the determination of net sales.

The following table displays our disaggregated revenue by product category:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended March 27, 2021

 

    

Hardware and

    

Robotics and

    

 

 

    

 

 

 

 

Protective

 

Digital 

 

 

 

 

Total

 

 

Solutions

 

Solutions

 

Canada

 

Revenue

Fastening and Hardware

 

$

166,602

 

$

—

 

$

34,091

 

$

200,693

Personal Protective

 

 

84,327

 

 

—

 

 

13

 

 

84,340

Keys and Key Accessories

 

 

—

 

 

42,094

 

 

361

 

 

42,455

Engraving

 

 

—

 

 

13,778

 

 

 8

 

 

13,786

Resharp

 

 

—

 

 

 7

 

 

—

 

 

 7

Consolidated

 

$

250,929

 

$

55,879

 

$

34,473

 

$

341,281

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended March 28, 2020

 

    

Hardware and

    

Robotics and

    

 

 

    

Total

 

 

Protective Solutions

 

Digital Solutions

 

Canada

 

Revenue

Fastening and Hardware

 

$

150,387

 

$

—

 

$

25,321

 

$

175,708

Personal Protective

 

 

62,789

 

 

—

 

 

—

 

 

62,789

Keys and Key Accessories

 

 

—

 

 

43,375

 

 

1,029

 

 

44,404

Engraving

 

 

—

 

 

12,923

 

 

 2

 

 

12,925

Resharp

 

 

—

 

 

10

 

 

—

 

 

10

Consolidated

 

$

213,176

 

$

56,308

 

$

26,352

 

$

295,836

 

The following table disaggregates our revenue by geographic location:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended March 27, 2021

 

    

Hardware and

    

Robotics and

    

  

 

    

Total

 

 

Protective Solutions

 

Digital Solutions

 

Canada

 

Revenue

United States

 

$

246,797

 

$

55,300

 

$

 —

 

$

302,097

Canada

 

 

1,229

 

 

579

 

 

34,473

 

 

36,281

Mexico

 

 

2,903

 

 

 —

 

 

 —

 

 

2,903

Consolidated

 

$

250,929

 

$

55,879

 

$

34,473

 

$

341,281

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended March 28, 2020

 

    

Hardware and

    

Robotics and

    

    

 

    

Total

 

 

Protective Solutions

 

Digital Solutions

 

Canada

 

Revenue

United States

 

$

209,677

 

$

55,843

 

$

 —

 

$

265,520

Canada

 

 

1,264

 

 

465

 

 

26,352

 

 

28,081

Mexico

 

 

2,235

 

 

 —

 

 

 —

 

 

2,235

Consolidated

 

$

213,176

 

$

56,308

 

$

26,352

 

$

295,836

 

Our revenue by geography is allocated based on the location of our sales operations. Our Hardware and Protective Solutions segment contains sales of Big Time personal protective equipment into Canada. Our Robotics and Digital Solutions segment contains sales of MinuteKey Canada.

Hardware and Protective Solutions revenues consist primarily of the delivery of fasteners, anchors, specialty fastening products, and personal protective equipment such as gloves and eye-wear as well as in-store merchandising services for the related product category.

Robotics and Digital Solutions revenues consist primarily of sales of keys and identification tags through self service key duplication and engraving kiosks. It also includes our associate-assisted key duplication systems and key accessories.

Canada revenues consist primarily of the delivery to Canadian customers of fasteners and related hardware items, threaded rod, keys, key duplicating systems, accessories, personal protective equipment, and identification items as well as in-store merchandising services for the related product category.

The Company’s performance obligations under its arrangements with customers are providing products, in-store merchandising services, and access to key duplicating and engraving equipment. Generally, the price of the merchandising services and the access to the key duplicating and engraving equipment is included in the price of the related products. Control of products is transferred at the point in time when the customer accepts the goods, which occurs upon delivery of the products. Judgment is required in determining the time at which to recognize revenue for the in-store services and the access to key duplicating and engraving equipment. Revenue is recognized for in-store service and access to key duplicating and engraving equipment as the related products are delivered, which approximates a time-based recognition pattern. Therefore, the entire amount of consideration related to the sale of products, in-store merchandising services, and access to key duplicating and engraving equipment is recognized upon the delivery of the products.

The costs to obtain a contract are insignificant, and generally contract terms do not extend beyond one year. Therefore, these costs are expensed as incurred. Freight and shipping costs and the cost of our in-store merchandising services teams are recognized in selling, general, and administrative expense when control over products is transferred to the customer.

 

Revenue Recognition:

Revenue is recognized when control of goods or services is transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue.

The Company offers a variety of sales incentives to its customers primarily in the form of discounts and rebates. Discounts are recognized in the Consolidated Financial Statements at the date of the related sale. Rebates are based on the revenue to date and the contractual rebate percentage to be paid. A portion of the cost of the rebate is allocated to each underlying sales transaction. Discounts and rebate are included in the determination of net sales.

The Company also establishes reserves for customer returns and allowances. The reserve is established based on historical rates of returns and allowances. The reserve is adjusted quarterly based on actual experience. Discounts and allowances are included in the determination of net sales.

The following table disaggregates our revenue by product category:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware 

 

Robotics 

 

 

 

 

 

 

 

 

and 

 

and 

 

 

 

 

 

 

 

 

Protective 

 

Digital 

 

 

 

 

Total 

 

    

Solutions

    

Solutions

    

Canada

    

Revenue

Year Ended December 26, 2020

 

 

  

 

 

  

 

 

  

 

 

  

Fastening and Hardware

 

$

706,865

 

$

 —

 

$

131,493

 

$

838,358

Personal Protective

 

 

317,527

 

 

 —

 

 

239

 

 

317,766

Keys and Key Accessories

 

 

 —

 

 

157,828

 

 

2,878

 

 

160,706

Engraving

 

 

 —

 

 

51,423

 

 

 6

 

 

51,429

Resharp

 

 

 —

 

 

36

 

 

 —

 

 

36

Consolidated

 

$

1,024,392

 

$

209,287

 

$

134,616

 

$

1,368,295

Year Ended December 28, 2019

 

 

  

 

 

  

 

 

  

 

 

  

Fastening and Hardware

 

$

607,247

 

$

 —

 

$

121,242

 

$

728,489

Personal Protective

 

 

245,769

 

 

 —

 

 

 —

 

 

245,769

Keys and Key Accessories

 

 

 —

 

 

185,451

 

 

4,009

 

 

189,460

Engraving

 

 

 —

 

 

50,613

 

 

 9

 

 

50,622

Resharp

 

 

 —

 

 

22

 

 

 —

 

 

22

Consolidated

 

$

853,016

 

$

236,086

 

$

125,260

 

$

1,214,362

Year Ended December 29, 2018

 

 

  

 

 

  

 

 

  

 

 

  

Fastening and Hardware

 

$

581,269

 

$

 —

 

$

137,186

 

$

718,455

Personal Protective

 

 

55,448

 

 

 —

 

 

 —

 

 

55,448

Keys and Key Accessories

 

 

 —

 

 

143,898

 

 

4,217

 

 

148,115

Engraving

 

 

 —

 

 

52,145

 

 

12

 

 

52,157

Resharp

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Consolidated

 

$

636,717

 

$

196,043

 

$

141,415

 

$

974,175

 

The following table disaggregates our revenue by geographic location:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware 

 

Robotics 

 

 

 

 

 

 

 

 

and 

 

and 

 

 

 

 

 

 

 

 

Protective 

 

Digital 

 

 

 

 

Total 

 

    

Solutions

    

Solutions

    

Canada

    

Revenue

Year Ended December 26, 2020

 

 

  

 

 

  

 

 

  

 

 

  

United States

 

$

1,007,135

 

$

207,283

 

$

 —

 

$

1,214,418

Canada

 

 

7,789

 

 

2,004

 

 

134,616

 

 

144,409

Mexico

 

 

9,468

 

 

 —

 

 

 —

 

 

9,468

Consolidated

 

$

1,024,392

 

$

209,287

 

$

134,616

 

$

1,368,295

Year Ended December 28, 2019

 

 

  

 

 

  

 

 

  

 

 

  

United States

 

$

835,957

 

$

234,216

 

$

 —

 

$

1,070,173

Canada

 

 

5,905

 

 

1,870

 

 

125,260

 

 

133,035

Mexico

 

 

11,154

 

 

 —

 

 

 —

 

 

11,154

Consolidated

 

$

853,016

 

$

236,086

 

$

125,260

 

$

1,214,362

Year Ended December 29, 2018

 

 

  

 

 

  

 

 

  

 

 

  

United States

 

$

626,490

 

$

195,538

 

$

 —

 

$

822,028

Canada

 

 

1,944

 

 

505

 

 

141,415

 

 

143,864

Mexico

 

 

8,283

 

 

 —

 

 

 —

 

 

8,283

Consolidated

 

$

636,717

 

$

196,043

 

$

141,415

 

$

974,175

 

Our revenue by geography is allocated based on the location of our sales operations. Our Hardware and Protective Solutions segment contains sales of Big Time personal protective equipment into Canada. Our Robotics and Digital Solutions segment contains sales of MinuteKey Canada.

Hardware and Protective Solutions revenues consist primarily of the delivery of fasteners, anchors, specialty fastening products, and personal protective equipment such as gloves and eye-wear as well as in-store merchandising services for the related product category.

Robotics and Digital Solutions revenues consist primarily of sales of keys and identification tags through self service key duplication and engraving kiosks. It also includes our associate-assisted key duplication systems and key accessories.

Canada revenues consist primarily of the delivery to Canadian customers of fasteners and related hardware items, threaded rod, keys, key duplicating systems, accessories, personal protective equipment, and identification items as well as in-store merchandising services for the related product category.

The Company’s performance obligations under its arrangements with customers are providing products, in-store merchandising services, and access to key duplicating and engraving equipment. Generally, the price of the merchandising services and the access to the key duplicating and engraving equipment is included in the price of the related products. Control of products is transferred upon delivery of the products. Judgment is required in determining the time at which to recognize revenue for the in-store services and the access to key duplicating and engraving equipment. Revenue is recognized for in-store service and access to key duplicating and engraving equipment as the related products are delivered, which approximates a time-based recognition pattern. Therefore, the entire amount of consideration related to the sale of products, in-store merchandising services, and access to key duplicating and engraving equipment is recognized upon the delivery of the products.

The costs to obtain a contract are insignificant, and generally contract terms do not extend beyond one year. Therefore, these costs are expensed as incurred. Freight and shipping costs and the cost of our in-store merchandising services teams are recognized in selling, general, and administrative expense when control over products is transferred to the customer.

The Company used the practical expedient regarding the existence of a significant financing component as payments are due in less than one year after delivery of the products.