JWTC's position breaks into two distinct buckets. First, a receivable of $670,935 that HD Worxs owes — $602,841 of operating advances on Sarasota plus $68,093 of accrued interest — on which HD Worxs has repaid nothing to date. Second, a $539,450 marine equipment fleet that JWTC owns outright (carried at book; estimated net realizable value ~$455,946); this is a JWTC asset that JWTC can resell, redeploy, or transfer at its own discretion — it is not money HD Worxs owes. Combined, JWTC has $1,210,385 of capital at stake across the relationship, of which the cash JWTC actually paid out is $1,142,291 ($602,841 advances + $539,450 equipment) and the remaining $68,093 is accrued return on that capital. The teaming relationship is productive on the work side — field margins on Sarasota ran 64.8% and JWTC earned $224,815 (20.6%) on Flint & Peace Creek with HD Worxs as a subcontractor — but no cash has flowed back to JWTC on the Sarasota receivable. JWTC believes, but has not independently verified, that HD Worxs is using the $440,580 of Sarasota AshBritt receipts as working capital on downstream work such as Flint & Peace Creek; a §1.B accounting has been requested to confirm.
| Engagement | JWTC Role | Nature of Claim | JWTC Capital at Stake |
|---|---|---|---|
| Sarasota — FDEM Waterway (Helene) | Financier — operating advances | Receivable owed by HD Worxs | $670,935 |
| Marine Equipment Fleet | Owner — JWTC-titled asset | JWTC-owned asset (not a debt) | $539,450 |
| Total JWTC Capital at Stake | $1,210,385 | ||
| Of which: cash repaid by HD Worxs on the receivable | $0 | ||
1 Receivable interest accrues at the contractual 8.00% APR (§1.G), draw-weighted on actual advance balances through May 31, 2026; the simple-rate approximation does not foot to this figure. 2 Equipment is shown at $539,450 net book value. The standalone equipment statement (following) presents an imputed true-cost-to-date of $635,480 that adds $96,030 of estimated carrying cost; that imputed carrying figure is deliberately excluded here to avoid conflating imputed interest with cash exposure. Estimated net realizable resale value is ~$455,946. 3 The two buckets are different in kind: $670,935 is a debt owed by HD Worxs; $539,450 is a JWTC-owned asset JWTC controls. Cash actually paid out by JWTC is $1,142,291 ($602,841 advances + $539,450 equipment); the $68,093 balance is accrued interest. Components are rounded; the total ties at $1,210,384.85.
| Section | Provision | Term / Value |
|---|---|---|
| § 1.B | HD Worxs to convey transparent accounting records | Ongoing duty |
| § 1.C | Profit/loss split for Work under the HD Worxs AshBritt subcontract in Sarasota County, FL4 | 50 / 50 |
| § 1.D | Equipment remains JWTC property; HD Worxs holds an option to buy 50% co-ownership at half original cost | $269,725 |
| § 1.G | JWTC loan / LOC interest rate | 8.00% APR |
| Signatories | HD Worxs (Patrick Haygood + David Frederick) · JWTC (J.W. Turner) | All signed |
4 The §1.C 50/50 split is limited to Work under the AshBritt/FDEM subcontract in Sarasota County, Florida. It does not automatically extend to other jobs. The Baltimore DPW project is outside this provision on three independent grounds — different geography (Maryland, not the Sarasota “geographic area”), different subject matter (municipal snow & ice, not FDEM waterway debris), and a different prime (Baltimore DPW, not AshBritt/FDEM). No separate co-contracting agreement was executed for Baltimore; had the parties intended 50/50 there, one would have been signed as it was for Sarasota. See the standalone Agreement Analysis for the full argument.
| Path | Basis | Notes |
|---|---|---|
| Direct demand on the receivable | §1.G — $602,841 advances + 8.00% interest | Well-documented; cleanest claim against HD Worxs |
| Equipment set-off | §1.D — JWTC-owned $539,450 fleet | Withhold conveyance, or resell (~$455,946) and credit against the balance |
| §1.B accounting demand | HD Worxs duty to convey transparent records | Forces visibility on the $440,580; non-compliance is leverage |
| Patrick leverage | HD Worxs Member & personal guarantor; JWTC manager | Significant personal exposure; handle via counsel given the conflict |
These are options for JWTC ownership to weigh, not a recommendation. Any approach involving Patrick should run through counsel given the related-party conflict noted above. A defined floor and walk-away point should be set before engaging HD Worxs.
HD Worxs collected $440,580 from AshBritt against $447,958 of operating costs that JWTC funded through Note Receivable advances. The project is functionally break-even on cash basis. JWTC's $602,841 in operating advances plus $68,093 of accrued interest at the contractual 8.00% APR remain outstanding from HD Worxs and will be settled via inter-entity offset against HD Worxs's share of the Baltimore project margins (separate reconciliation). Field-level economics were healthy: 64.8% weighted gross margin on the 45 of 49 ticket-matched samples reviewed; zero negative-margin tickets across all 218 sub-pay records.
| Section | Date | Provision | Value / Term |
|---|---|---|---|
| Master Agreement | Nov 27, 2024 | HD Worxs / JWTC Co-Contracting Agreement (DocuSign) | — |
| § 1.C | — | Profit/loss split for Work under HD Worxs AshBritt subcontract (Florida) | 50 / 50 |
| § 1.D | — | Equipment purchased by JWTC remains JWTC property; HD Worxs buyout option at half original cost | $269,725 |
| § 1.G | — | JWTC loan/LOC interest rate | 8.00% APR |
| § 3.C | ~Mar 2025 | Termination upon Work completion (triggered) | — |
| Signatories — HD Worxs (Patrick Haygood + David Frederick) and JWTC (J.W. Turner) | All signed | ||
| Snapshot | Through Date | Yards | Water $ | Haul $ | Amount | Status |
|---|---|---|---|---|---|---|
| AR Snapshot 1 | 12/07/2024 | 1,291.60 | $94,286.80 | $9,150.40 | $103,437.20 | Paid |
| AR Snapshot 2 | 01/04/2025 | 2,128.50 | 155,380.50 | 23,562.24 | 178,942.74 | Paid |
| AR Snapshot 3 | 02/01/2025 | 1,514.50 | 63,531.90 | 10,267.34 | 73,799.24 | Paid |
| Post-2/1 Final² | Mar 2025 | ~1,170 | — | — | 84,400.33 | Paid |
| Total Revenue Collected from AshBritt | $440,579.51 | All Paid | ||||
| Cost Category | Detail | Amount | % of Costs |
|---|---|---|---|
| Subcontractor Vendor Payments | Mass, Tree Daddy, Posey, Engelsma, Clawguy, Fearless, Midland, Z&H | $235,419.58 | 52.6% |
| Total Subcontractor Costs | $235,419.58 | 52.6% | |
| Equipment Share Rentals | Excavators & lifts (Jan–Apr 2025) | 71,337.48 | 15.9% |
| One-Time "Debris Removal Consulting" | 5 individuals on 1/16/25³ | 56,234.40 | 12.6% |
| Airbnb Lodging | Nov 2024 – Feb 2025 | 30,723.22 | 6.9% |
| Field Management Personnel | Travis Aubert, Diana Hilyard (ABB Inc.), Jerome Lavely | 28,474.00 | 6.4% |
| Monthly Personnel ("Month of January") | Midnight Complex, J. Simon, T. Key, M. Esposito³ | 25,769.00 | 5.8% |
| Total Other Operating Costs | $212,538.10 | 47.4% | |
| Total Direct Project Costs (JWTC-Funded) | $447,957.68 | 100.0% | |
| Revenue Collected (AshBritt → HD Worxs) | $440,579.51 |
| Less: Subcontractor Vendor Payments | (235,419.58) |
| Less: Equipment Share Rentals | (71,337.48) |
| Less: One-Time Consulting (1/16/25) | (56,234.40) |
| Less: Airbnb Lodging | (30,723.22) |
| Less: Field Management Personnel | (28,474.00) |
| Less: Monthly Personnel ("Month of January") | (25,769.00) |
| Total Direct Costs (JWTC-Funded) | (447,957.68) |
| Net Cash Result, Pre-Overhead | ($7,378.17) |
| Net result as % of revenue | (1.7%) |
| Note: This statement is presented pre-overhead. The receivable owed by HD Worxs (NR principal $602,841 + interest $68,093 = $670,935) is not deducted here because it is to be cleared via inter-entity netting against the Baltimore project, not against this project's revenue. See Statement of JWTC Receivable Position below. | |
| Operating advances to HD Worxs — LOC sub-account | $230,208.22 |
| Operating advances to HD Worxs — Project Costs sub-account | 372,633.21 |
| Note Receivable Principal Owed | $602,841.43 |
| Plus: Interest Receivable accrued at 8.00% APR (Dec 2024 – May 2026) | 68,093.42 |
| Total Sarasota Receivable Owed by HD Worxs | $670,934.85 |
| Recovery mechanism: Inter-entity netting against HD Worxs's share of Baltimore project margins. HD Worxs is holding the $440,580 AshBritt cash as working capital for ongoing operations (Flint & Peace Creek, etc.); JWTC is not pursuing a cash paydown. Interest rate was previously booked at 8.40% APR; restated to 8.00% per Agreement Section 1.G, reversing approximately $724 of cumulative over-accrual. | |
| Metric | Value | Basis |
|---|---|---|
| Sub-pay tickets analyzed | 218 | All Sub Pay Master entries through 2/22/25 |
| FDEM revenue tickets joined to sub-pay | 45 of 49 | 92% match rate; remainder fall outside FDEM extract period |
| Tickets with negative margin | 0 | Every ticket profitable at field level |
| Median ticket-level margin (matched) | 36.0% | Unweighted |
| Weighted gross margin (matched) | 64.8% | Revenue-weighted across 45 matched tickets |
| Total field yardage | 8,014.75 cy | Sub Pay Master printed total, Nov 2024 – Feb 2025 |
| Field economics are healthy. The thin operating margin is overhead burden, not field-level pricing. | ||
1. Cost ownership. The $447,958 of direct project costs presented above reflects only the operating costs JWTC funded through Note Receivable advances to HD Worxs. Costs that HD Worxs paid out of its own working capital (using AshBritt collections or other funds) are not visible on JWTC's books and are not included in this statement. Total all-in project cost from HD Worxs's perspective is therefore equal to or greater than the figure shown.
2. Post-2/1/25 AR snapshot. JWTC has three documented AR snapshots totaling $356,179.18. Brian Benoit confirmed on 6/11/26 that AshBritt has paid HD Worxs $440,579.51 in full, implying an additional $84,400.33 of post-2/1/25 billing for which the AR snapshot has not yet been provided by Patrick Haygood. The Sub Pay Master shows approximately 2,833 yards of post-2/1 field work consistent with that residual billing amount. Awaiting final snapshot for documentation completeness.
3. Related-party personnel payments. The 1/16/25 "Debris Removal Consulting" batch and 2/14/25 "Month of January" personnel batch include overlap for three individuals (Joe Simon, Tanner Key, Michael Esposito). Total January payouts to these three: J. Simon $18,025; T. Key $20,481; M. Esposito $12,300. Scope distinction between the two payment streams is being documented for audit support.
4. Excluded costs. This statement does not include allocated corporate G&A, project management labor (Patrick Haygood), insurance, bonding, or banking fees. Equipment carrying costs (depreciation, property tax, insurance) on the $539,450 of marine equipment owned by JWTC are also excluded — that equipment is treated as a separate matter and will reconcile with the Baltimore project. Standard JWTC overhead allocation for a project of this size is estimated at $40,000 – $70,000.
5. Patrick Haygood related-party note. Patrick Haygood, JWTC's Roving Ops Manager, signed the Co-Contracting Agreement as a Member of HD Worxs, LLC. Conflict-of-interest governance protocols for related-party transactions are being reviewed separately and are not part of this project P&L.
6. Going-forward policy. Per Brian Benoit's directive (6/11/26), beginning with the next project, JWTC will hold prime contracts directly. HD Worxs and other field partners will operate as standard subcontractors to JWTC under documented payment terms. The financier-of-sub-entity structure used on Sarasota will not be repeated.
7. Source documents. HD Worx — JWTC Co-Contracting Agreement signed 11/27/24 (DocuSign envelope B681296D-6C10-4833-931C-1338A8AA0C81); Sarasota_QB_files_as_of_061026 (NR, NP, Interest, FA registers); HD_Worx_LLC_Payment_Detail (Payment Recon, AR Summary, Equipment Detail, Reimbursement Detail); Sub_Pay_Master_3.3.25 (218 sub-tier ticket records); HD_Worx_FDEM_Water_Sub_Data_as_of_02.01.25 (49 raw FDEM/DDMS/TOLS ticket records).
The project earned $1,089,688 in revenue against $864,873 in direct costs per the QuickBooks job-cost report, producing a gross profit of $224,815 (20.6% margin) before any allocation of corporate overhead, project management time, or insurance/bonding. Flint Creek closed at 100% of contracted scope. Peace Creek substantially completed against amended scope with the final demobilization invoices submitted in April 2026.
| Document | Date | Description | Amount |
|---|---|---|---|
| Master Agreement | Jun 13, 2025 | Original Schedule of Values | $1,803,850.49 |
| Amendment 1 | Jul 24, 2025 | Administrative — no financial change | — |
| Change Order No. 1 | Oct 31, 2025 | Piling removal at Hwy 301 (drawn from Flint contingency) | 20,000.00 |
| Amendment 2 | Dec 18, 2025 | Removed Peace Creek Panels 14–16 (50,216 LF); extended deadlines | (298,785.20) |
| Amended Contract Ceiling | $1,505,065.29 | ||
| Invoice | Date | Description | Amount | Payment Ref | Status |
|---|---|---|---|---|---|
| Flint Creek — $203,357.61 | |||||
| FlintCreek1 | 10/07/25 | Flint Mobilization 50% + P2 (772 LF) | $29,593.40 | 906696018268353 | Paid |
| FlintCreek2 | 10/07/25 | Flint P1 + P2 (5,603.6 LF) | 33,341.42 | 906696018268353 | Paid |
| FlintCre3.1 | 11/07/25 | Mobilization additional 25% | 12,500.00 | 26EF0000620 | Paid |
| FlintCre3.2 | 11/07/25 | P1 + P2 remainder + P3 full (8,359.8 LF) | 49,740.81 | 26EF0000609 | Paid |
| FlintCreek4 | 12/29/25 | P2 final + Erosion Control | 16,982.56 | 26EF0001562 | Paid |
| FlintCreek5 | 12/29/25 | Mobilization final 25% | 12,500.00 | 26EF0001562 | Paid |
| FlintCrkCO1 | 12/29/25 | CO #1 — Piling Removal at Hwy 301 | 20,000.00 | 26EF0001562 | Paid |
| FlintCrHaul | 04/06/26 | Hauling / Tipping (62.49 tons) | 3,699.42 | 26EF0001983 | Paid |
| Demobilization | 04/09/26 | 100% Demobilization | 25,000.00 | 26EF0001983 | Paid |
| Peace Creek — $886,330.86 | |||||
| PeaceCreek1 | 10/07/25 | Mobilization 25% + P2 debris (10,771.2 LF) | $70,338.64 | 906696018268353 | Paid |
| PeaceCreek2 | 12/17/25 | Mobilization 25% + multi-panel debris | 327,905.81 | 26EF0001563 | Paid |
| PceCrk2Rev | 02/26/26 | Invoice 2 supplemental (SWFWMD revision) | 67,877.60 | 26EF0001563 | Paid |
| PeaceCreek3 | 03/23/26 | Panels 4, 9-Upper, 10, 12 debris | 257,664.75 | 26EF0001721 | Paid |
| PeaceCrFinal | 04/06/26 | Panels 7, 13 + Mob residual + Erosion Control | 158,977.15 | 26EF0001722 | Paid |
| PeaceCrHaul | 04/06/26 | Hauling / Tipping (67.64 tons) | 3,566.91 | 26EF0001984 | Paid |
| Total Revenue Earned & Collected | $1,089,688.47 | All Paid | |||
| Cost Category | Class | Amount | % of Costs |
|---|---|---|---|
| Subcontractor (Insured) — HD Worxs | Unclassified¹ | $554,155.65 | 64.2% |
| Subcontractor (Insured) — FL | Unclassified¹ | 182,996.13 | 21.2% |
| Total Subcontractor Costs | $737,151.78 | 85.4% | |
| Equipment Rental — Marsh Master + Misc | Unclassified¹ | 68,875.00 | 8.0% |
| Equipment Rental — CAT 309 Amphibious | Peace Creek | 37,300.00 | 4.3% |
| Equipment Rental — Mini Excavators (Apr 2026) | Flint Creek | 11,127.42 | 1.3% |
| Total Equipment Rental | $117,302.42 | 13.6% | |
| Miscellaneous Construction Costs | Unclassified¹ | 8,422.79 | 1.0% |
| Reimbursable Expenses (12/16/25 NC STEP allocation) | Flint & Peace Creek | 1,996.19 | 0.2% |
| Total Direct Project Costs (Job-Costed) | $864,873.18 | 100.0% | |
| Contract Revenue Earned | $1,089,688.47 |
| Less: Subcontractor Costs (HD Worxs + FL) | (737,151.78) |
| Less: Equipment Rental | (117,302.42) |
| Less: Miscellaneous Construction | (8,422.79) |
| Less: Reimbursable Expenses (12/16/25) | (1,996.19) |
| Total Direct Costs (Job-Costed) | (864,873.18) |
| Gross Profit, Pre-Overhead | $224,815.29 |
| Gross margin percentage | 20.6% |
| Note: This statement is presented pre-overhead. A standard JWTC corporate allocation (G&A, PM labor, insurance, bonding) is estimated to reduce profit by an additional $75,000 – $135,000. | |
| Project | Contract LF (Am. 2) | LF Completed | % Complete | Status |
|---|---|---|---|---|
| Flint Creek | 15,909 | 15,909 | 100.0% | Closed out |
| Peace Creek (per panels billed) | 173,018 | ~129,500 | ~74.9% | Substantial completion |
| Combined | 188,927 | ~145,400 | ~77.0% | 72.4% by contract value |
1. "Unclassified" cost class. The majority of project costs ($814,450 of $862,877) are booked to the "Flint & Peace Creek 2025 — Other" account because the original posting did not assign a Flint or Peace Creek class code. Glen Miller is in the process of reclassifying these entries by sub-project; the total project cost is not expected to change materially, but the Flint-vs-Peace split will be adjusted.
2. Revenue recognition. Revenue is recognized when invoiced to SWFWMD. All fifteen invoices have been collected per the QuickBooks payment register (final payments cleared June 9, 2026). PceCrk2Rev represents a supplemental invoice issued in response to SWFWMD's January 2026 revision request — the original PeaceCreek2 invoice was paid as billed and the revision added $67,877.60 of additional revenue rather than reducing the original.
2a. Update — June 11, 2026. All three open items previously pending Glen Miller's confirmation have been resolved. HD Worxs advances ($448K) are confirmed to be already embedded in the cost total (no change). The 12/05/2024 $200K advance is confirmed Sarasota (no change). The 12/16/2025 Brian Benoit reimbursement (NC STEP check) is allocable to F&P at $1,996.19 and has been added; gross profit revised from $226,811.48 to $224,815.29 (margin 20.8% → 20.6%).
3. Subcontractor reconciliation. HD Worxs (Indy A-Team Services, LLC) was the primary subcontractor. Total subcontractor costs of $737,152 reflect both HD Worxs's direct invoiced amounts and pass-through costs that JWTC paid on behalf of HD Worxs (lodging on BOA card, equipment share rentals, Marsh Master rentals, boat storage). A final accounting and lien waiver from HD Worxs is being requested for project close-out.
4. Excluded costs. This statement does not include allocated corporate G&A, project management labor (Patrick Haygood), insurance, bonding, or banking fees. A standard JWTC overhead allocation is estimated at $75,000 – $135,000. Also excluded are the time investments of Charlene Zak-Knepper, J.W. Turner, and Brian Benoit during the multi-month subcontractor reconciliation process — these may be allocated separately as part of a portfolio-level cost analysis covering Sarasota, Flint & Peace Creek, and Baltimore.
5. Source documents. SWFWMD Agreement 25CN0004732 and amendments; all 15 invoice PDFs; the QuickBooks register dated June 10, 2026 (Flint_Peace_Qbooks, SWFWD_QB_files_as_of_061026); HD Worxs Nov 30 itemization and W10/W11 detailed cost reports; Cheri Vallery's cash register through November 2025; Patrick Haygood's Dec–Feb crew reimbursement (REVISED); individual crew payment receipts; BOA lodging schedules; EquipmentShare and Marsh Master rental records; Sarasota / FDEM portfolio reconciliation files dated 02.01.25 and 06.10.26.
JWTC paid $667,250 gross for the fleet, recovered $127,800 through a crane invoice void/reissue and a shipping refund, leaving a hard net acquisition cost of $539,450 on the books. Because the equipment has sat idle in Lake Charles for 565 days since purchase with no revenue, depreciation, or disposition, the analytically correct true cost adds imputed carrying — opportunity cost of capital at the contractual 8.00% rate plus estimated property tax and insurance — bringing true cost to date to approximately $635,480. Separately, estimated economic depreciation of $83,504 reduces net realizable resale value to roughly $455,946 (see Note 3).
| Category / Asset | Detail | Qty | Net Cost |
|---|---|---|---|
| Motorized Crew Boats | |||
| Silver Aluminum Crew Boat | 300 HP Evinrude, w/ 2014 Magic trailer | 1 | $39,000 |
| Hanko Crew Boat | 225 HP Mercury, w/ 2020 trailer | 1 | 40,000 |
| Hanko Style Crew Boat | 300 HP Suzuki, w/ trailer | 1 | 34,000 |
| Custom Flat Bottom Crew Boat (Twin) | 2× Yamaha, no trailer | 1 | 33,000 |
| Custom Aluminum Crew Boat (Twin) | 2× 150 HP Honda, w/ 2011 trailer | 1 | 31,500 |
| Lobell Crew Boat (Twin) | 150 HP Yamaha, w/ Magic trailer | 1 | 24,500 |
| Subtotal — Crew Boats | 6 | $202,000 | |
| Additional Motorized Vessels | |||
| 30×12×3 Barge (Twin) | Used, twin Mercury Verado 250, push knees, w/ trailer | 1 | $65,000 |
| 18' Hanko Single | 115 HP aluminum boat, w/ trailer | 1 | 35,000 |
| Subtotal — Additional Motorized | 2 | $100,000 | |
| Non-Motorized Barges | |||
| 50×12×4 Barge | Used fresh-water-only hopper barge | 1 | $49,000 |
| 40×12×3 Barge | Used hopper barge (~2 yrs old at purchase) | 1 | 39,000 |
| Subtotal — Non-Motorized Barges | 2 | $88,000 | |
| Telescopic Loader Cranes | |||
| Farma Loader 7.0 (23') | 14HP Vanguard, 54" log grapple | 1 | $25,000 |
| Farma Loader 6.7 (22') | 14HP Vanguard, 50" log grapple | 1 | 22,500 |
| Farma Loader 6.7 (22') | 14HP Vanguard, 50" log grapple | 1 | 22,000 |
| Farma Loader 6.7 (22') | 14HP Vanguard, 50" log grapple | 1 | 21,000 |
| Farma Loader 6.3 (21') | 14HP Vanguard, 42" log grapple | 1 | 18,500 |
| Farma Loader 6.3 (21') | 14HP Vanguard, 42" log grapple | 1 | 18,000 |
| Subtotal — Cranes1 | 6 | $127,000 | |
| Logistics, Shipping & Registration | |||
| Shipping — Long Trucking LLC | Net of $800 shipping refund (1/17/25) | — | $10,700 |
| Repairs, Logistics & Shipping | Initial mobilization (Whipple invoice) | — | 8,000 |
| Registrations / Titling | City Car Autoplex LLC | — | 3,750 |
| Subtotal — Logistics & Registration | — | $22,450 | |
| Net Acquisition Cost — Total Fleet | 16 | $539,450 | |
| Gross equipment outlay (total FA debits) | $667,250 |
| Less: Crane invoice voided & reissued (no net cost)1 | (127,000) |
| Less: Long Trucking shipping refund (1/17/25) | (800) |
| Net Acquisition Cost on JWTC Books | $539,450 |
| Cost Component | Basis | Rate / Yr | Amount |
|---|---|---|---|
| Opportunity Cost of Capital | Contractual loan rate, §1.G, on $539,450 | 8.00% | $66,803 |
| Insurance (inland / marine) | Estimated annual premium2 | 2.00% | $16,701 |
| Property Tax (LA personal property) | Estimated commercial rate2 | 1.50% | $12,526 |
| Total Imputed Carrying Cost (565 days) | 11.50% | $96,030 | |
| Net Acquisition Cost (FA book value) | $539,450 |
| Plus: Opportunity cost of capital @ 8.00% | $66,803 |
| Plus: Insurance (est.) | $16,701 |
| Plus: Property tax (est.) | $12,526 |
| Total Imputed Carrying Cost | $96,030 |
| True Cost to Date | $635,480 |
| Memo — resale position: estimated economic depreciation of $83,504 (@10%/yr) reduces net realizable value to approximately $455,946. The gap between $635,480 true cost to date and ~$455,946 recoverable value — roughly $179,534 — is the economic cost of holding this fleet idle rather than deploying, selling, or transferring it. See Note 3. | |
| Option | Mechanics | JWTC Value | Status |
|---|---|---|---|
| HD Worxs exercises §1.D buyout | Acquires 50% co-ownership at half net original cost | $269,725 | Open Option |
| JWTC retains 100% — redeploy | Hold for next marine/disaster deployment (LA, FL) | ~$455,9463 | Under Review |
| JWTC retains 100% — resell | Liquidate fleet at estimated net realizable value | ~$455,9463 | Under Review |
| Transfer to JWTC-LA | Roll into JWTC Louisiana equipment pool at book | $539,450 | Under Review |
| Decision tied to Baltimore reconciliation & inter-entity netting | — | Pending JW | |
1. Crane void/reissue. The six Farma loader cranes were first invoiced 11/27/24 ($127,000), the invoice was voided 12/06/24 ($127,000 credit), and reissued/paid 12/10/24 ($127,000). The net cost of the cranes is $127,000; the gross FA debits of $667,250 double-count the original crane invoice, which is reversed by the $127,000 void. This is a clean wash with no net cost impact — it inflates only the gross outlay figure.
2. Imputed carrying costs are estimates. Opportunity cost is computed at the 8.00% contractual rate from Section 1.G of the Co-Contracting Agreement, applied to the $539,450 net book value over 565 days. Property tax (1.5%) and insurance (2.0%) are industry-estimate annual rates for commercial marine/inland equipment in Louisiana — they have not been traced to confirmed cash disbursements on the books. If JWTC has not actually paid tax/insurance on idle equipment, the cash-out true cost is lower and the figures represent accrued/imputed economic cost rather than realized expense. The only hard number in this statement is the $539,450 net acquisition cost.
3. Resale / net realizable value. Economic depreciation of $83,504 (estimated at 10%/yr on used marine equipment) is illustrative, not booked. Estimated net realizable value of ~$455,946 assumes an orderly private sale and is highly sensitive to fleet condition, which has not been independently verified. A forced-liquidation sale would likely realize materially less.
4. Relationship to Sarasota P&L. This equipment is deliberately excluded from the Sarasota project P&L (which is presented pre-overhead and break-even on a cash basis). Per Brian Benoit's direction, the $539,450 equipment is a separate matter that reconciles with the Baltimore project, not Sarasota. It does not net against the $670,935 Sarasota receivable.
5. Governing document. HD Worxs / JWTC Co-Contracting Agreement, signed November 27, 2024. Section 1.D provides that equipment purchased by JWTC remains JWTC property, with HD Worxs holding an option to acquire 50% co-ownership at half the original purchase price ($269,725). Maintenance, repair, and personal-property tax are defined as direct project costs under the Agreement.
6. Source documents. Sarasota_QB_files_as_of_061026 (FA register, verified to printed totals); HD_Worx_LLC_Payment_Detail (Equipment Detail and Payment Recon tabs); forensic reconciliation dated 6/11/26. All 16 line items and the gross/net reconciliation tie to the QB Fixed Asset register without extraction error.