SEC Filing Summary: Command Center, Inc. (Form 8-K)
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Command Center, Inc. (not Hirequest, Inc.) on June 7, 2016, covering events occurring on June 3, 2016. The company is incorporated in Washington and operates from Lakewood, Colorado. The filing primarily reports the completion of an asset acquisition.
Key Financial Metrics and Transaction Details
The filing details a specific acquisition transaction rather than providing a full period financial statement. Key metrics related to the transaction include:
- Total Purchase Price: $2,200,000
- Cash Paid at Closing: $1,980,000 (paid from cash on hand)
- Deferred Payment: $220,000 (due in one year)
- Liabilities Assumed: Limited to future lease payments for two offices, amounts owed on acquired motor vehicles, and the closing balance on the sellers' receivables factoring line.
The filing text does not provide clear values for the company's overall revenue, profit, cash flow, margins, or total debt outside of this specific transaction.
Material Changes
On June 3, 2016, Command Center, Inc. acquired substantially all assets of Hanwood Arkansas, LLC and Hanwood Oklahoma, LLC (operating as Hancock Staffing). This expands the company's footprint into the Little Rock, Arkansas, and Oklahoma City, Oklahoma metropolitan areas. The acquired assets include fixtures, equipment, leasehold improvements, vehicles, contact rights, intellectual property, accounts receivable, and goodwill.
Outlook, Risks, and Management Commentary
Management issued a press release on June 6, 2016, regarding this transaction (filed as Exhibit 99.1). The filing notes that the deferred payment of $220,000 is subject to conditions set forth in the Asset Purchase Agreement. No specific forward-looking guidance, risk factors, or contingencies beyond the standard terms of the acquisition agreement are detailed in this text.
Key Facts for Investor Verification
- Verify the strategic rationale for acquiring Hancock Staffing assets in Arkansas and Oklahoma.
- Confirm the specific conditions attached to the $220,000 deferred payment due in one year.
- Review the full Asset Purchase Agreement (Exhibit 10.1) for details on assumed liabilities and earn-out provisions.
- Assess the impact of the $1.98 million cash outflow on the company's remaining liquidity.
- Clarify the discrepancy between the requested company name (Hirequest, Inc.) and the filing registrant (Command Center, Inc.).