123 Open Door Way

(444) 444-4444

pspooner@smkarch.
com
www.smk.com

January 8th, 2021

Board of Directors
SMK Architectural Openings Inc.
123 Open Door Way
Poway, Ca. 92064

Dear Members of the Board,

Enclosed you will find our Annual Report for the fiscal year December
31, 2020. This report will provide you and our investors with a summary
of what the executive management group feels was an incredible success
story of a year, as well as a brief company history, our strategic mission
statement and a snap shot of our revenues through year end.
Upon your review and approval, this report will be posted to the company
website for public viewing, e-mailed copies sent to all employees and hard
copies of the reports will be mailed to SMK investors and creditors.
After review of our 2020 annual report, we hope you will join us in
celebrating the unanimous feeling among our executive management
group, that our company was able to achieve outstanding results in 2020
amid a crushing pandemic. We believe SMK Architectural has firmly
established itself as one of the few leaders worldwide in the Architectural
Door and Hardware Industry.
If you have any questions about the enclosed report, please feel free to
contact me at pspooner@smkarch.com or at (444) 444- 4444.

Sincerely,

Patrick Spooner
Patrick Spooner

CEO, SMK Architectural Openings

SMK ARCHITECTURAL OPENINGS

2020
Annual Report
Incredible Challenge. Tremendous Resolve

SMK Architectural Openings

Innovate.Build.Secure.

(444) 444-4444   |     www.smk.com     |     123 Open Door Way, Poway, Ca.

 CONTENTS

202
Executive Summary 2-3

Our Strategic Mission 3-4

Our Performance 4-5

Final Thoughts 5

EXECUTIVE SUMMARY

This report is intended to clearly define SMK Architectural's

challenges, success's and lessons learned in 2020 as well as
provide a clear vision for where the firm intends to go in
2021 and beyond.

With the unprecedented, life-altering circumstances that

businesses Globally faced in wake of the Covid-19
Pandemic, expectations, goals and strategies were reset and
realigned on the fly, in order to mitigate losses and sustain
operations into this new and foreign environment. As we
warily progressed into the Pandemic Stricken environment,
we immediately felt the impact and unfortunately, had to
make extremely difficult decisions to reduce our work force
to keep the ship afloat as we continued to sail through
unchartered waters. Though we were able to keep our
personnel losses to a minimum, in comparison to the losses
2
that our competitor's suffered, we were forced to institute salary
reductions company-wide in order to keep the vast majority of our
staff fully employed, and all business units operational.

With that being said, I've never seen an entire organization pull
together like SMK Architectural pulled together to confront such

INNOVATE.
massive and unforeseen challenges. We adapted, we transformed
and we turned the tide. We grew into our new, fully-remote
environment, embraced technology and pioneered new means of
communicating with clients, collaborating with colleagues and
setting a new standard for Architectural Door and Hardware
Companies world wide.

I truly believe SMK Architectural is better positioned now to firmly

establish ourselves as the industry leader we always knew we could
be, then we were in the pre-pandemic era. I attribute that to our
employees high level of technical competence and adaptability as
well as our incredibly important investments in technology over the
years, most notably our significant investment this year in
Enterprise Resource Planning Software. The transition has been
extremely successful thus far and we know that we will only
continue to become more efficient and profitable as we learn to
utilize it to it's fullest capabilities.

Our Executive management team is bullish as we head into 2021,

knowing that we were not only able to survive 2020, but thrive in
2020. Faced with Incredible Challenge, we met it head on with
tremendous resolve.

OUR STRATEGIC MISSION

SMK Architectural was founded in 2014 by CEO Pat Spooner, CFO Gio
Marsano and COO Ryan King with the intent to bring youthful energy
and over 50 years of combined industry experience together to create a
highly innovative, high-octane and knowledgeable Door and Hardware
Distribution company to Southern California. The founders saw an aging
industry that desperately needed fresh ideas and and technical saavy to
3
to spark a progressive movement towards the utilization of technology
to improve processes and mitigate human error. Through this movement,
SMK's core values were born. Innovate.Build.Secure. We are leaders in
innovation, design and technological advancement. We utilize our
cutting edge technology, industry expertise and knowledge to provide
consistent, quality service on each every and build we are a part of. We
provide secure, energy efficient and functional door openings, delivering
the peace of mind our clients deserve knowing that their facilities are

BUILD.
safe, environmentally friendly and adaptable. Our ability to utilize our
various software technologies to integrate with our clients technologies,
sets us apart from the competition in that we are able to create a
seamless and transparent construction environment that hasn't been
seen in the door and hardware industry ever before.

OUR PERFORMANCE

Our financial position in 2020 was one of ups and downs due to the
Pandemic, however, key strategic changes and unbelievable
adaptability by our staff, to continue to drive sales in the remote
environment allowed for us to finish the year on a high note. Our
strong Q1 provided us the ability to make a significant investment in
our ERP software at the very start of Q2, just before the pandemic hit.
As you can see Q2 took a large hit in revenues as the initial shock and
shut down from the Pandemic took hold on the economy. We noticed a
steady increase in revenues in Q3 which rolled right into a very strong
rebound in Q4 , which allowed us to finish the year just shy of our
record setting 2019 year end revenues.

$5,000,000
INVESTMENT IN ERP SOFTWARE

4
$75M

SECURE.
$50M

$25M

$0M
1st Qt. 2nd Qt. 3rd Qt. 4th Qt.

FINAL THOUGHTS

Though 2020 on paper may look like a down year, the Executive group feels
very good about the results that we were able to achieve amongst such
uncertainty, not only in our industry but uncertainty throughout the Global
Economy. We were able to overcome challenge after challenge, and based
on our strong recovery in Q4 we believe we will continue to build off that
progress as we are now well settled into the remote environment and the
vaccine is expected to be available a few months into the new year for
public use. This, coupled with our continued internal growth fine tuning
our new software platform, should really begin to pay dividends as we
move further into 2021. Overall, we feel SMK Architectural is strongly
positioned to achieve well beyond our record 2019 numbers and we plan to
continue to expand our client base and sales department as yet another
means of generating increased revenues in the new year.