Operations — Detailed Overview¶
Facility: 264 DP Road, Los Alamos, NM Hours: Monday – Friday, 7:00 a.m. – 5:00 p.m. Work Arrangement: Flexible and staggered hours for employees
Production and Service Distribution¶
Work Location: - All primary work is completed at the Los Alamos facility - Approximately 15% of work requires subcontracted services: - Grinding - Anodizing - Heat treating - Welding (specialized)
Delivery: - Final products are delivered or shipped upon completion - Proximity to LANL enables fast turnaround on urgent prototypes
Management Structure: - President (David Hand): Works part-time — 25 hours/week, 25% day-to-day operations, 75% strategic oversight - Operations Manager: Conducts daily operations (hired 2024-2025 as owner transitioned to part-time)
(Source: CIM, FAQ)
Billing and Collections¶
| Aspect | Detail |
|---|---|
| Payment terms | Generally Net 30 |
| Actual collection | ~15 days or less, particularly under blanket contract structure |
| LANL payment | Pays promptly once invoiced |
| Collection issues | None — no uncollectable debt |
| Invoicing | QuickBooks and LANL's Ariba system |
(Source: FAQ)
Pricing Structure¶
| Pricing Element | Approach |
|---|---|
| Shop rate | Includes administrative and QA costs (full burden) |
| Nuclear/weapons work | Higher pricing for nuclear facility and weapons-related work |
| Cost tracking | QuickBooks Online for profitability analysis |
Job Size Range: - Smallest: $500 - Largest: $500,000 - Timeline: 6–8 weeks to 6–8 months
Cash Flow Strategy: Maintaining a mix of small and large jobs helps stabilize cash flow. Example: Ten $10,000 jobs can help offset the timeline of a single $200,000 job. (Source: FAQ)
Machine Utilization¶
| Metric | Value |
|---|---|
| Current utilization (single shift) | 50–60% |
| Potential with 2nd shift | +20–30% |
| Potential with 3rd shift | Further capacity increase |
Note: Some unused capacity is related to support equipment rather than production machines. Significant revenue growth possible without CapEx if labor is available. (Source: FAQ)
Company-Developed Documentation¶
JMS has developed extensive internal procedures and documentation:
| Document Type | Description |
|---|---|
| Standardized Procedures | Process standardization across operations |
| Work Instructions | Step-by-step operational guidance |
| Safety Manual | Workplace safety protocols |
| Employee Manual | HR policies and procedures |
| Quality Assurance Manual | NQA-1/ISO 9001 compliance procedures |
| PCI Credit Card Security Instruction | Payment security compliance |
Material Control & Security: - Physical control and storage of materials for UCNI and ITAR jobs - Controlled access by personnel - Material control, marking, and material age control - Integrated schedule development and management: - Look-ahead schedules - Coordination with contract requirements - Coordinate with customer hold-points
(Source: CIM)
Working Capital Requirements¶
| Requirement | Amount | Purpose |
|---|---|---|
| Typical working capital | $200,000 – $300,000 | Materials, labor, taxes |
| Cash on hand (2025) | $524,000 | ⚠️ Seller retains |
| A/R (2025) | $305,000 | ⚠️ Likely retained/adjusted |
Important: Buyer will need to budget $200K–$300K in working capital to operate from day one, as seller retains cash and receivables. (Source: FAQ, financials/balance-sheet)
Financial Structure¶
| Aspect | Status |
|---|---|
| Debt | Low — only $62K long-term debt |
| Cash position | Strong — $524K (retained by seller) |
| Tax strategy | 100% equipment depreciation write-offs used to reduce taxable profit |
| Owner compensation | Transitioned from full salary → part-time hourly (2025) |
(Source: FAQ, financials/balance-sheet)
Operational Risks & Considerations¶
| Risk | Status | Mitigation |
|---|---|---|
| Owner dependency | High | 12-18 month transition consulting |
| Key employee retention | Medium | Stay bonuses, early employee meetings |
| Certification transfer | Medium | Entity sale (not asset) to preserve legal entity |
| Working capital | Medium | Budget $200-300K for day-one operations |