Viskase : Annual Report for 2022

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, 2022 and 2021

  • - Consolidated Statements of Operations for the years ended December 31, 2022, 2021 and 2020

  • - Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2022, 2021 and 2020

  • - Consolidated Statements of Stockholders' Equity for the years ended December 31, 2022, 2021 and 2020

  • - Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020

  • - 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 St., Suite 200 Chicago, IL 60601-3370

• 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, 2022 and 2021, 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, 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, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended 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 for 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 28, 2023

VISKASE COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except for Number of Shares)

December 31, 2022

December 31, 2021

ASSETS
Current assets:
Cash and cash equivalents	$8,783	$9,876
Receivables, net	87,584	81,645
Inventories	103,172	93,070
Other current assets	40,152	44,307
Total current assets	239,691	228,898
Property, plant and equipment	416,628	409,499
Less accumulated depreciation	(274,781)	(262,372)
Property, plant and equipment, net	141,847	147,127
Right of use assets	24,520	27,964
Other assets, net	23,258	18,973
Intangible assets	16,808	19,531
Goodwill	3,207	3,373
Deferred income taxes	22,261	25,235
Total Assets	$471,592	$471,101
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt	$39,375	$23,500
Accounts payable	43,377	35,045
Accrued liabilities	31,491	34,067
Short-term portion lease liabilities	4,851	5,196
Total current liabilities	119,094	97,808
Long-term debt, net of current maturities	122,521	131,821
Long-term liabilities	7,383	7,380
Accrued employee benefits	36,211	54,616
Deferred income taxes	3,405	2,081
Long-term lease liabilities	22,693	25,919
Stockholders' equity:
Common stock, $0.01 par value; 103,995,935 shares issued
and 103,190,665 outstanding	1,040	1,040
Paid in capital	182,343	182,343
Retained earnings	45,467	42,938
Less 805,270 treasury shares, at cost	(298)	(298)
Accumulated other comprehensive loss	(67,114)	(73,639)
Total Viskase stockholders' equity	161,438	152,384
Deficit attributable to non-controlling interest	(1,153)	(908)
Total stockholders' equity	160,285	151,476
Total Liabilities and Stockholders' Equity	$471,592	$471,101
See notes to consolidated financial statements