Viskase : Annual Report for 2021

CONSOLIDATED FINANCIAL STATEMENTS

OF VISKASE COMPANIES, INC. AND SUBSIDIARIES

• 1. Financial Statements:

  • - Report of Independent Certified Public Accountants

  • - Consolidated Balance Sheets as of December 31, 2021 and 2020

  • - Consolidated Statements of Operations for the years ended December 31, 2021, 2020 and 2019

  • - Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2021, 2020 and 2019

  • - Consolidated Statements of Stockholders' Equity for the years ended December 31, 2021, 2020 and 2019

  • - Consolidated Statements of Cash Flows for the years ended December 31, 2021, 2020 and 2019

  • - Notes to Consolidated Financial Statements

• 2. Management's Discussion and Analysis of Financial Condition and Results of

  Operations (unaudited)

GRANT THORNTON LLP

Grant Thornton Tower

171 N. Clark Street, Suite 200 Chicago, IL 60601

• D [phone]

• F [phone]

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

Board of Directors Viskase Companies, Inc.

Opinion

We have audited the consolidated financial statements of Viskase Companies, Inc. (a Delaware corporation) and subsidiaries (the "Company"), which comprise the consolidated balance sheets as of December 31, 2021 and 2020, and the related consolidated statements of operations, comprehensive income (loss), changes in stockholders' equity, and cash flows for each of the three years in the period ended December 31, 2021 and the related notes to the financial statements.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021 in accordance with accounting principles generally accepted in the United States of America.

Basis for opinion

We conducted our audits of the consolidated financial statements in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of management for the financial statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern one year after the date the financial statements are issued.

GT.COM

Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd (GTIL). GTIL and each of its member firms are separate legal entities and are not a worldwide partnership.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with US GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

In performing an audit in accordance with US GAAS, we:

•  Exercise professional judgment and maintain professional skepticism throughout the audit.

•  Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

•  Obtain an understanding of internal control relevant to the audit 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 Company's internal control. Accordingly, no such opinion is expressed.

•  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.

•  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Chicago, Illinois March 30, 2022

VISKASE COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except for Number of Shares)

December 31, 2021

December 31, 2020

ASSETS
Current assets:
Cash and cash equiv alents	$9,876	$15,848
Receiv ables, net	81,645	87,946
Inv entories	93,070	89,254
Other current assets	44,307	46,649
Total current assets	228,898	239,697
Property, plant and equipment	409,499	405,199
Less accumulated depreciation	(262,372)	(245,162)
Property, plant and equipment, net	147,127	160,037
Right of use assets	27,964	31,700
Other assets, net	18,973	15,899
Intangible assets	19,531	22,787
Goodwill	3,373	3,620
Deferred income taxes	25,235	29,383
Total Assets	$471,101	$503,123
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt	$23,500	$12,134
Accounts payable	35,045	35,067
Accrued liabilities	34,067	42,176
Short-term portion lease liabilities	5,196	5,559
Total current liabilities	97,808	94,936
Long-term debt, net of current maturities	131,821	139,237
Long-term liabilities	7,380	6,906
Accrued employee benefits	54,616	78,643
Deferred income taxes	2,081	3,876
Long-term lease liabilities	25,919	29,705
Stockholders' equity:
Common stock, $0.01 par v alue; 103,995,935 shares issued and
103,190,665 outstanding at December 31, 2021 and at December
31, 2020	1,040	1,040
Paid in capital	182,343	182,343
Retained earnings	42,938	46,157
Less 805,270 treasury shares, at cost	(298)	(298)
Accumulated other comprehensiv e loss	(73,639)	(78,651)
Total Viskase stockholders' equity	152,384	150,591
Deficit attributable to non-controlling interest	(908)	(771)
Total stockholders' equity	151,476	149,820
Total Liabilities and Stockholders' Equity	$471,101	$503,123
See notes to consolidated financial statements