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.