{"content":[{"text":"To The Shareholders of Paragon Technologies (“Paragon”): \n Paragon’s per share book value increased by 114% in 2017, to $3.58 per share, compared with \n $1.67 per share in 2016. Once again, shares outstanding remained unchanged year over year (at \n the beginning of 2018, 10,000 shares were issued to an executive). Revenues in 2017 equaled \n $64.6 million compared to $8.6 million in 2016. Net income in 2017 was $2.7 million compared \n to a net loss of $1.1 million in 2016, respectively. The substantial gains in sales, profitability, and \n book value in 2017 was due to Paragon’s acquisition of the Latin American distribution business \n of SED International. \n Paragon, through its wholly owned subsidiary Ark Investments, acquired 100% of the outstanding \n stock of SED Colombia (SEDC) for $1.4 million in February of 2017. Subsequent to our \n acquisition, Paragon agreed to transfer 20% of its equity interest in SED Colombia to our partner \n Ronell Rivera who serves as the President of SED Colombia. We couldn’t be happier with this \n arrangement and we believe that the experience and integrity that Ronell will deliver to SED will \n multiply SEDC’s business value by factors over the coming years. We will take 80% of a growing, \n well managed business any day over 100 percent of an alternative. \n Last year was a very transformative year for Paragon. In addition to our acquisition of SED \n Colombia, Paragon acquired residential real estate in Las Vegas, Nevada under our newly created \n subsidiary Ohana Home Services, LLC. As the name indicates, we intend for the business of Ohana \n to expand in the arena of real estate services beyond real estate ownership. We believe our real \n estate investments – two residential condominiums in the heart of Las Vegas in the most luxurious \n non-gaming facility – were made at very favorable prices. Both units are currently under attractive \n rental contracts and delivering, in our view, a satisfactory return on investment. \n Late last year, I assumed the added role of CEO of SI Systems, our material handling business. \n Over the past few years, I have written about the favorable potential for our material handling \n operations as a result of the “automation” of America. I have had a front row seat to the workings \n of SI Systems for nearly ten years and after thoughtful discussion with our Board of Directors, we \n felt it was in the best interest of Paragon for me to take on this role at the current time. I’m relishing \n the task at SI Systems and the potential opportunities ahead.","bbox":{"left":0.117647,"top":0.176015,"width":0.764902,"height":0.5682429999999999}},{"text":"2017 Year in Review \n Paragon reported pre-tax income of $4.2 million in 2017 compared with a pre-tax loss of $1.3 \n million in 2016. Our income in 2017 was primarily a result of $4.2 million “gain on bargain \n purchase” of SED Colombia. Under generally accepted accounting principles (“GAAP”), \n acquisitions are evaluated against the fair value of the assets acquired to determine the impact to \n the balance sheet and income statement. Paragon paid $1.4 million in cash to acquire a business","bbox":{"left":0.117647,"top":0.781909,"width":0.7647059999999999,"height":0.12431800000000004}}],"images_bbox":[{"left":0.0,"top":0.0,"width":0.999293,"height":0.120833}],"images_bbox_not_text_overlap":[{"left":0.0,"top":0.0,"width":0.999293,"height":0.120833}]}