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Gillette a $150 million offer plus a royalty of 2 percent of sales
for lifetime. Mr. Taylor informed Mr. DeJoria that he could not
match Gillette's offer.) Sales discussions with Minnetonka thus
ended.
L. Financial Information Available at Date of Death
JPMS adopted a fiscal year ending July 31. Beginning with the
fiscal year ended July 31, 1984, the shareholders elected
subchapter S status for Federal income tax purposes. JPMS remained
a subchapter C corporation for State of California income tax
purposes until the 1988 fiscal year, when the shareholders elected
subchapter S status for California.
KPMG Peat Marwick (KPMG) (or one of its predecessors)
certified JPMS' audited financial statements. JPMS' net sales and
net income after taxes for fiscal years ended July 31, 1982 through
1988, inclusive, were as follows:
Fiscal Year Ended 7/31 Net Sales Net Income After Taxes
1982 $1,369,316 $142,375
1983 3,590,641 159,947
1984 5,349,152 4,004
1985 111,266,610 207,777
1986 24,131,739 2,265,875
1987 41,371,318 281,777
1988 60,693,857 2,569,297
1 The audited financial statements for the years ended July
31, 1986 and 1985, state this amount as $10,918,252.
At Mr. Mitchell's death, the most recent available certified
financial statements were for JPMS' fiscal year ended July 31,
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