5-BPM004656 Solicitation Attachment 8 - Experience and Capacity Questionnaire.docx

Experience and Capacity Questionnaire

Solicitation No. BPM004656

Document Management Services Arizona Department of Administration State Procurement Office 100 N 15th Avenue Phoenix, AZ 85007

STATE MAY DETERMINE YOUR PROPOSAL IS NON-RESPONSIVE IF YOU DO NOT ANSWER ALL QUESTIONS FULLY.

The Offeror shall provide a narrative response to each question that demonstrates their understanding of the Scope of Work requirements and describes your company’s overall method of approach for providing the service stated in this solicitation. If there is a question that is not applicable to the services required by the Scope of Work, you may mark it N/A.

Experience and Capacity Questions:

Question 1: Company Profile The Offeror must include a narrative description of its organization. The narrative must include the following:

Offeror Response:

ICM is a second-generation family owned and operated, certified women-owned small business C-Corp incorporated in Arizona and headquartered at 4100 E Broadway Ste 180, Phoenix, AZ 85040, with national and global experience. ICM’s products and services allow companies to securely store, manage, retrieve, and share their critical documents while providing fully digital business processes and complete disaster recovery. We work with companies in a wide variety of industries including aerospace, education, manufacturing, and local, state, federal, and tribal governments and across multiple departments such as HR, AP, operations, and risk management. We pride ourselves in being a one-stop-shop for your digital transformation!

ICM was founded in 1988 (originally known as Image Conversions & Management) as a scanning firm converting business records, technical manuals, engineering drawings, and other client business critical information into a digital environment. In-line with the long-term vision of our founder, Phil Harrington, ICM continues to reinvest in our people, scanning production infrastructure, and IT department to become a provider of all things document management for our customer’s digital transformation needs. Today, ICM is a complete document management services vendor, including:

· Exceptional capture services for all record types (standard paper, large format, film media, electronic conversion from CDs, DVDs, USBs, etc).

· Best practices offered by our Solutions Consultants, with the support of long-tenured Subject Matter Experts (SMEs) across ICM’s leadership, through deep collaboration and analysis.

· Publishing, implementing, and providing ongoing support of our web based ViewCenter Document Management Suite. Optional add-on modules such as eForms and public facing portals, as well as custom software development services allow ViewCenter to grow with your business to further automate your processes and embrace organizational interoperability.

The “ICM Approach” allows us to build long-term relationships with clients of all sizes. Whether your document management needs are department-specific or ultimately expand across the entire organization, ICM will tailor a solution to meet your specific needs and budget for all your short and long-term information governance goals.

Why ICM / Capabilities ICM is uniquely qualified for this engagement for the following reasons:

1. State of Arizona Contract Holder since 1998. ICM has been a State of Arizona Contract Vendor since 1998 for document management services and solutions (current contract ADSPO18-185890). We have supported digitization goals for over 65 state agencies, departments, counties, cities, towns, boards, and school districts such as Maricopa County, Mohave County, Pinal County, Arizona Department of Public Safety, Arizona Department of Administration, Arizona Department of Corrections, Arizona Board of Juvenile Corrections, City of Phoenix, City of Mesa, and Maricopa Community Colleges…to name a few. Through this experience, ICM is familiar with requirements for digitizing State records and the necessary procurement steps that need to be followed. Please see ICM References section for a list of counties, cities, agencies, and departments we have worked with.

2. Location. ICM is headquartered at 4100 E Broadway Ste 180, Phoenix, AZ 85040 and can provide transportation services with ICM owned vehicles or our logistics partners. We have an additional warehouse to store records waiting to be purged or held for additional time per the customer’s request. Partnering with ICM keeps the funding within the Arizona economy and supports local jobs!

· Currently, ICM is the only AZ state contract vendor for Document Management Services that is headquartered in Arizona.

3. Production Capacity. ICM has a significant amount of hardware equipment, software systems, and production management systems to meet any document scanning project. This equipment, combined with a staff of 100+ over 3 work-shifts, ICM has the capacity available to support complex, large volume projects within agreed upon timeframes. To accommodate the increase in volume ICM has experienced over the past few years, ICM has recently restructured the production floor to maximize output and has purchased additional equipment and facility space. The State is welcome to tour our facility at any point in the process upon request.

4. Industry Leader. ICM has been recognized as a leader in document scanning and imaging by clients, professional reports, and independent third-party entities over the last 33 years. ICM is also the most utilized vendor of contract ADSPO18-185890.

5. Existing Tools. ICM has developed tools for streamlined indexing, reconciliation, and quality purposes. Other tools and systems are in place addressing file transfer processes, procedures, quality methodologies, and indexing scripts.

6. Document Tracking System. ICM has developed a Document Tracking Database system, to track boxes and documents therein from initial packing through the conversion process and finally upload of images and return of original paper files, maintaining a complete chain of custody for all steps of the process.

7. Quality Management - ICM is one of the very few ISO9001:2008 compliant scanning companies in the country.

8. Cost Effective. ICM approaches each project with “best value” in mind. We always look for cost saving opportunities to reduce the cost of the project without jeopardizing the quality.

9. Licenses and Certifications. ICM currently has all necessary licenses, certifications, insurance, and qualifications to support The State.

10. Information Security Compliances. ICM uses the standards set forth by ISO 27001 and NIST in guiding security policy and practices, and is compliant with HIPAA and many other state, federal, and industrial security regulations regarding information security best practices.

11. Proven History. ICM has a proven history and track record of creating long term relationships with our customers because we put Customer Success at the forefront of everything we do.

12. Diversity. ICM promotes diversity within our organization; more than 50% of our current staff are minorities, while 75% of our leadership team are women. Since 2018, ICM is a certified Woman-Owned Small Business:

-WOSB Certification Number: WOSB191038 -WBENC Certification Number: WBE1909486

13. Ethical Operations. Business ethics, security, and quality are factored into every part of our organization. ICM guarantees the same level of security and quality in every project, of any size; this is enforced by stipulating any errors/quality issues identified within project scope will be rectified appropriately at no additional cost.

14. Low Risk. All the above items make ICM the low-risk solution for this complex conversion effort.

Regarding Item 1.6, full disclosure, in Q1’2020, ICM assigned a new sales solutions consultant to a long-time existing account with an Arizona state agency. This account was not a growth account and the solutions consultant served mainly an account management role. In Q1’2021, the solutions consultant and one of the main contacts at the agency disclosed to The State and ICM that a relationship had developed and is still in place to this day. To avoid any potential perception of conflict of interest, ICM decided to immediately remove the solutions consultant from this account and reassign it to the Director of Customer Success whose team oversees the solution. Any new opportunities that may arise with this account will be handled with the Director of Customer Success or the Chief Revenue Officer. The solutions consultant is currently the Director of Sales and oversees most of our other accounts within The State.

ICM previously held a GSA contract that was cancelled for all vendors due to non-use. ICM still holds a Government Printing Office (GPO) contract.

Items 1.7, 1.8, 1.9, 1.10, 1.12 do not apply to ICM.

ICM is incorporated and licensed to work in the State of Arizona, and also has a TPT license (07422635) to report and pay an applicable sales tax.

Question 2: Company Experience A. What market(s) are your current clients primarily in?

B. What experience do you have serving clients in Business Markets within the State of Arizona?

C. What is the range in size of your current clients?

D. Utilizing Attachment 9 (BPM004546 Solicitation Attachment 9 – References) provide at least three (3) examples that exhibit your experience providing Document Management Services for clients? Preferably one example should be a Public Sector client.

list the full list here, and then mentioned the specific are listed out E. How long have you provided goods/services to your longest tenured client?

F. Why did your last three former clients cancel their contracts?

G. With what relevant trade and/or professional associations are you involved? How does this participation give you an advantage over your competition?

Offeror Response:

ICM works with companies in a wide variety of industries including state, federal, and tribal governments, education, manufacturing, aerospace, and healthcare and across multiple departments such as HR, AP, operations, and risk management. ICM’s customer based is naturally heavily concentrated in Arizona due to being founded and headquartered here but ICM’s experience includes national and global locations. ICM works with companies of all sizes from mom-and-pop shops to Fortune 500 companies such as Honeywell and Exelon.

Exhibit 9 has been provided with an extensive list of references. As previously mentioned, ICM has held a contract with the State of Arizona since 1998. One of ICM’s current major accounts (Honeywell) has existed since before that! ICM prides itself on our history of long-term relationships with our customers. We believe it is one of the key indicators to customer success!

Our most recent account cancellations have been due to either business process or key contact changes within the account. The most recent cancellation was for AZDES. AZDES was using a legacy system created by ICM as a backend repository for their System7 app. The vendor for the System7 app sunsetted the app and this initiated AZDES’s move to OnBase, which was being used by other departments. As such, they no longer needed ICM’s custom legacy solution to house the records. AZDES was unsure how long the transition would take so ICM offered a month-to-month, instead of the previously year contracts, to minimize the financial commitments for the transition and to allow AZDES the required time without pressure. Another recent cancellation was with Arizona Department of Veteran’s Services. The implementation was not fully adopted by the team and when the new Chief HR officer came on board, she decided she’d rather operate in a paper basis. A 3rd recent cancellation was with AZ-TEC high school. Shortly after implementing their ViewCenter, the school was closed and a different entity took over ownership of their records and decided not to have them housed in ViewCenter.

ICM is an active member of the Arizona chapter of ARMA (American Records Management Association), SHRM (Society of Human Resource Management), AASBO (Arizona Association of School Business Officials), and ARSA (Arizona Rural Schools Association) and regularly attends the NIGP reverse tradeshows. Being a part of these organizations and events allows ICM the opportunity to stay-in-touch with the ever-changing needs and challenges within key accounts and industries as it pertains to records management. This provides ICM with the information and knowledge to better provide a true consultative approach to solutions.

Question 3: Proposed Key Personnel Please identify Key Personnel to be utilized to perform services should your Offer be accepted. In addition, also state the Members related experience with large local, state or federal government agencies.

Offeror Response:

ICM Team – Points of Contact Ryan Wells – Chief Revenue Officer RyanW@icmdocs.com 480-269-9299 Ryan Wells began his career at ICM in the marketing department while completing his degree in Criminology & Criminal Justice; ultimately, ICM became his calling, with a strong passion to continue the legacy and evolve the company founded by his grandfather, Phil Harrington. To fully understand the company, Ryan has worked in a variety of departments including production, sales, accounting, and management. In his current role as Chief Revenue Officer, Ryan oversees the Sales, Production, and Customer Success departments. Ryan’s role in this project will be as a point of contact for the State contract administration.

Erica Gentile – Director of Sales GentileE@icmdocs.com 480-269-9318 Erica has worked for ICM in the sales department for roughly 7 years, collectively. She is currently the Director of Sales, leading the sales team to provide valuable solutions to our customers. Erica’s role in this contract will be to scope and estimate projects and work with The State to define project specifications and job plans. Erica is also a point of contact for customers when they are unsure who to reach out to. If Erica doesn’t know the answer to a question, she’ll find out who does! Customer service is a top priority for Erica and she believes in at least acknowledging a customer’s communication within 24 hours with the goal of having an answer/resolution within 3-5 business days.

Deisy Enriquez – Director of Customer Success EnriquezD@icmconv.com 480-269-9310 Deisy is a respected Veteran and previous public service professional. As the Director of Customer Success, Deisy aims for 100% customer satisfaction. Her team supports the production team by ensuring the tools being used are functioning properly and implements checks-and-balances for quality assurance. Deisy’s role in the project will be to assist Ryan in the execution of the projects and be a secondary point of contact for The State active projects. For records sent to The State via SFTP, Deisy and her team will provide the training and support of the The State employees who need access. If any departments within The State choose to utilize ICM’s document management system (ViewCenter) for long term storage and management, Deisy’s team will handle the implementation of VIewCenter and provide training and ongoing support.

Dusty Vokacek – Director of Project Operations DustyV@icmconv.com 480-269-9325 Having worked in ICM’s production department for over 20 years, Dusty offers a vast amount of expertise in digitization best practices. Dusty is actively involved in the management of all customer digitization projects ensuring that deliverables meet or exceed customer expectations.

Question 4: Financial/Accounting Information Offeror must provide evidence of financial stability and capability to fund all costs associated with providing the services throughout the term of the Contract. The latest two (2) years audited annual financial statements including Total Revenue, Net Income, and Total Assets must be submitted with the Offeror’s proposal. If audited financial data is unavailable, explain in full the reason, and provide the latest non-audited financial information to include Balance Sheet, Income Statement, as well as Statements of Cash flows and Change in Financial Position. Include information to attest to the accuracy of the information provided.

Offeror shall provide information regarding any irregularities that were discovered in any accounts maintained by the Offeror on behalf of others. Describe the circumstances and disposition of the irregularities.

Offeror Response:

ICM has provided all financial documentation possible to rather over-share then undershare, including our tax returns for 2019 and 2020, a 2019 accountant provided revenue report, and a 2020 final trial balance report; our 2021 Tax Return is still in process.

In early 2020, ICM migrated to a new accounting system from our legacy QuickBooks that we had used for 10+ years, and moved to Microsoft Dynamics Business Central, which ended up being a failed migration. Finally in late mid-2021 ICM success moved back to QuickBooks, but the modern Online Advanced deployment, which is almost to a point where we can more easily provided standardized reporting.

Question 5: Subcontractors Utilize Attachment 8 (BPM004541 Solicitation Attachment 7 - Proposed Subcontractors) to identify Proposed Subcontractors commonly utilized or anticipated to be utilized to perform services within the Scope of Work of this Solicitation.

Offeror Response:

ICM is proposing NO subcontractors for fulfilment of the contract services.

Question 6: Submit copies of all applicable certificates and licenses that support Offeror’s ability to provide the related goods/services being proposed.

Offeror Response:

ICM has provided a comprehensive certified of insurance coverage the State requirements for the performance of all services. We also have a Women-Owned Business Certification, the renewal paperwork of which is still in process, so has not been provided within this response.

Question 7: Arizona Risk and Authorization Management Program (AZRamp) Requirements Offeror must read completely the AZRamp requirements found at this link:

https://docs.google.com/document/d/1a55nFzKwbcBrb9YoabYDog4ndnI1hxtG9PfyYEs3A14/edit Utilize Attachment 5 (BPM004541 Solicitation Attachment 5- Arizona Baseline Security Controls Assessment) to submit a completed Arizona Baseline Infrastructure Security Controls assessment spreadsheet.

If you have any questions regarding the form, please contact the State’s Homeland Security – Cyber Command team at AsetAssurance@azdoa.gov.

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ICM 2020 Final Trial Balance.pdf

10/19/2021

4:20 PM

Client: ICMCI - ICM Conversions, Inc.

Engagement: 2020 REV - ICM Conversions, Inc.

Period Ending: 12/31/2020 Trial Balance: 3000.01 - ICM Conversions Inc

Account Description UNADJ JE Ref # AJE ADJ

12/31/2020 12/31/2020

10002 BOK Financial Money Market 636,576.00 (99,770.00) 536,806.00

AJE - 1007 (99,770.00)

10005 BOK Financial Checking (836,189.00) 1,008,555.00 172,366.00

AJE - 1007 769,101.00

AJE - 1016 239,454.00

10010 BOK Financial PPP 669,101.00 (669,101.00) 0.00

AJE - 1007 (669,101.00)

11000 Accounts Receivable 2,153,223.00 (267,131.00) 1,886,092.00

AJE - 1012 (27,677.00)

AJE - 1016 (239,454.00)

11100 ICM Employee Loans 44,450.00 (400.00) 44,050.00

AJE - 1013 (400.00)

11200 Allowance for Doubtful Accounts (30,000.00) (30,000.00) 11500 Prepaid Expenses (6,580.00) 25,310.00 18,730.00

AJE - 1015 25,310.00

11510 Prepaid Insurance 30,178.00 30,178.00 11515 Software & Equip Maintenance 7,062.00 7,062.00 11900 Federal Prepaid Taxes 0.00 171,445.00 171,445.00

AJE - 1019 171,445.00

11910 State Prepaid Taxes 50.00 (50.00) 0.00

AJE - 1017 750.00

AJE - 1018 (800.00)

11950 Deferred Income Tax 350,317.00 155,766.00 506,083.00

AJE - 1018 155,766.00

13001 Computers Original Cost 508,739.00 (16,432.00) 492,307.00

AJE - 1002 (16,432.00)

13099 Accumulated Depreciation (389,562.00) (17,312.00) (406,874.00)

AJE - 1009 (17,312.00)

14001 Equipment Original Cost 353,632.00 (787.00) 352,845.00

AJE - 1002 (787.00)

14099 Accumulated Depreciation (363,231.00) 11,006.00 (352,225.00)

AJE - 1009 11,006.00

15001 Furniture & Fixtures Original Cost 73,133.00 73,133.00 15099 Accumulated Depreciation (71,716.00) 1,161.00 (70,555.00)

AJE - 1009 1,161.00

16001 Software Original Cost 55,982.00 16,432.00 72,414.00

AJE - 1002 16,432.00

16099 Accumulated Depreciation (60,131.00) 2,431.00 (57,700.00)

AJE - 1009 2,431.00

17001 Vehicles Original Cost 27,297.00 27,297.00 17099 Accumulated Depreciation (21,679.00) 177.00 (21,502.00)

AJE - 1009 177.00

18001 ViewCenter Original Cost 642,340.00 642,340.00 18099 ViewCenter Accum Amortization (642,340.00) (642,340.00) 20000 Accounts Payable (91,609.00) 53,725.00 (37,884.00)

AJE - 1011 11,174.00

AJE - 1014 42,551.00

20001 American Express 42,551.00 (77,715.00) (35,164.00)

AJE - 1011 (35,164.00)

AJE - 1014 (42,551.00)

20002 Pension Liability (1,023.00) (1,023.00) 20003 Payroll Liability 3,945.00 (134,199.00) (130,254.00)

AJE - 1008 (134,199.00)

20004 Other Insurance Liability 71.00 71.00 20005 Pet Insurance 190.00 190.00 20006 Medical Dental Vision (143.00) (143.00) 20008 Deferred Revenue (655,190.00) (655,190.00) 20010 Rent Accrual 10,050.00 (17,664.00) (7,614.00)

AJE - 1006 (17,664.00)

21001.1 Current Portion of LT Debt 0.00 (20,948.00) (20,948.00)

AJE - 1004 (20,948.00)

21002.1 Less Current Portion 0.00 20,948.00 20,948.00

AJE - 1004 20,948.00

21003 Balboa Capital (42,601.00) (3,344.00) (45,945.00)

AJE - 1003 (3,344.00)

21004 Western Financial (42,038.00) (3,948.00) (45,986.00)

AJE - 1003 (3,948.00)

22000 Paycheck Protection Program (723,600.00) 723,600.00 0.00

AJE - 1005 723,600.00

25500 Sales Tax Payable (24,628.00) (24,628.00) 30002 Common Stock (108,000.00) (108,000.00) 30003 Dividend Paid 25,000.00 (25,000.00) 0.00

AJE - 1001 (25,000.00)

32000 Retained Earnings (2,117,893.00) 25,000.00 (2,092,893.00)

AJE - 1001 25,000.00

41120 CDMS (1,223,966.00) (1,223,966.00)

41140 IT (145,959.00) (145,959.00)

41160 Scanning (2,476,472.00) (2,476,472.00) 41220 ViewCenter (810,024.00) (810,024.00) 41240 Custom App 9,744.00 9,744.00 50002 Maintenance 860.00 860.00 50003 Product License & Fees 4,000.00 3,879.00 7,879.00

AJE - 1010 3,879.00

50004 Purchases / Hardware 476.00 20,129.00 20,605.00

AJE - 1011 20,129.00

50005 Contract Services 153,237.00 153,237.00 50006 Hosting Services COGS 10,142.00 4,435.00 14,577.00

AJE - 1011 4,435.00

51001 Benefits 165,625.00 165,625.00 51003 Wages 2,338,397.00 121,116.00 2,459,513.00

AJE - 1008 121,116.00

51004 Wage Reconciliation (122,428.00) (122,428.00) 51005 Payroll Tax 260,318.00 13,083.00 273,401.00

AJE - 1008 13,083.00

52002 Staffing Services 210,976.00 881.00 211,857.00

AJE - 1011 881.00

52004 Shipping & Delivery 22,562.00 31,272.00 53,834.00

AJE - 1010 9,887.00

AJE - 1011 21,385.00

60001 Advertising & Marketing:Events 0.00 19,802.00 19,802.00

AJE - 1010 19,802.00

60001-1 Client Retention & Acquisition 3,194.00 1,725.00 4,919.00

AJE - 1010 330.00

AJE - 1011 1,395.00

60001-2 Communication 230.00 230.00 60001-3 Events 3,141.00 299.00 3,440.00

AJE - 1010 299.00

60001-4 Online Advertising 120.00 19,166.00 19,286.00

AJE - 1011 19,166.00

60003 AR Discounts 4,454.00 4,454.00 60004 Automobile 9,742.00 3,340.00 13,082.00

AJE - 1010 705.00

AJE - 1011 2,635.00

60005 Bank & Merchant Charges 2,620.00 2,620.00 60006 Charity 451.00 451.00 60007 Computer Repair & Maintenance 13,329.00 1,086.00 14,415.00

AJE - 1011 1,086.00

60008 Contract Labor / Consulting 48,832.00 217.00 49,049.00

AJE - 1010 217.00

60009 Depreciation 46,308.00 2,537.00 48,845.00

AJE - 1009 2,537.00

60010 Dues & Publications 3,761.00 1,072.00 4,833.00

AJE - 1010 1,072.00

60011 Employee Appreciation 8,770.00 4,932.00 13,702.00

AJE - 1010 1,232.00

AJE - 1011 3,300.00

AJE - 1013 400.00

60012 Equipment Rental & Lease 14,393.00 14,393.00 60013 Software Expense 40,900.00 6,171.00 47,071.00

AJE - 1010 1,829.00

AJE - 1011 4,342.00

60014 Insurance 62,563.00 4,004.00 66,567.00

AJE - 1011 4,004.00

60016 Internet 18,035.00 18,035.00 60017 Misc Equipment & Hardware (542.00) 23,102.00 22,560.00

AJE - 1002 787.00

AJE - 1011 22,315.00

60018 Legal & Professional 69,747.00 69,747.00 60019 Licenses & Fees 2,074.00 750.00 2,824.00

AJE - 1011 750.00

60020-2 Meals 257.00 2,285.00 2,542.00

AJE - 1010 1,499.00

AJE - 1011 786.00

60021 Merchant Deposit Fees 5,280.00 5,280.00 60022-1 Office Furniture 254.00 254.00 60022-2 Office Services 24,960.00 1,696.00 26,656.00

AJE - 1011 1,696.00

60022-3 Office Supplies 16,586.00 7,679.00 24,265.00

AJE - 1010 4,631.00

AJE - 1010 1,620.00

AJE - 1011 1,428.00

60023 Pension Match 51,698.00 51,698.00 60024 Recruiting 3,571.00 3,571.00 60025 Rent 302,286.00 (7,646.00) 294,640.00

AJE - 1006 17,664.00

AJE - 1015 (25,310.00)

60026-1 Benefits 51,498.00 51,498.00 60026-3 Commissions 49,755.00 49,755.00 60026-4 Internal IT Support 54,596.00 54,596.00 60026-6 Payroll Tax 84,014.00 84,014.00 60026-7 Salary 961,032.00 961,032.00 60030 Shipping & Postage 11,408.00 53.00 11,461.00

AJE - 1011 53.00

60031 Taxes 2,129.00 (690.00) 1,439.00

AJE - 1011 60.00

AJE - 1017 (750.00)

60032 Telephone 29,173.00 3,279.00 32,452.00

AJE - 1010 146.00

AJE - 1011 3,133.00

60033 Travel & Lodging 7,462.00 3,265.00 10,727.00

AJE - 1010 3,097.00

AJE - 1011 168.00

60034 Payroll Fees 40,705.00 40,705.00 60035 Utilities 29,975.00 29,975.00 60036 Professional Development 27.00 27.00 60037 Hosting Services 4,792.00 2,262.00 7,054.00

AJE - 1011 2,262.00

69800 Uncategorized Expenses 141,664.00 (141,664.00) 0.00

AJE - 1010 (50,245.00)

AJE - 1011 (91,419.00)

70010 Bad Debt (27,677.00) 27,677.00 0.00

AJE - 1012 27,677.00

70020 Interest Earned (1,204.00) (230.00) (1,434.00)

AJE - 1007 (230.00)

70030 Interest Expense 415.00 7,292.00 7,707.00

AJE - 1003 7,292.00

7020 Other Income 0.00 (723,600.00) (723,600.00)

AJE - 1005 (723,600.00)

80001 Federal Income Tax 0.00 (320,111.00) (320,111.00)

AJE - 1018 (148,666.00)

AJE - 1019 (171,445.00)

80002 State Income Taxes 0.00 (6,300.00) (6,300.00)

AJE - 1018 (6,300.00)

Total 0.00 0.00 0.00

Net (Income) Loss 594,266.00 (861,755.00) (267,489.00) image4.emf

2019 Tax Return.pdf

926340 04-01-19

WALLACE, PLESE + DREHER, LLP

500 N. JUNIPER DRIVE, SUITE 275

CHANDLER, AZ 85226

ICM CONVERSIONS, INC.

4320 E COTTON CENTER BLVD SUITE 106

PHOENIX, AZ 85040

!850403!

CLIENT'S COPY

Caution: Forms printed from within Adobe Acrobat products may not meet IRS or state taxing agency specifications. When using Acrobat, select the "Actual Size" in the Adobe "Print" dialog.

Wallace, Plese + Dreher, LLP Certified Public Accountants and Consultants

500 N. Juniper Drive, Suite 275 Chandler, AZ 85226

(480)-345-0500

Carol Harrington ICM Conversions, Inc.

4320 E Cotton Center Blvd., Suite 106 Phoenix, AZ 85040

Dear Carol:

Enclosed are your 2019 corporate tax returns, as follows...

2019 U.S. Corporation Income Tax Return

2019 Arizona Corporation Income Tax Return

2019 California Corporation Income Tax Return

2019 Florida Corporation Income Tax Return

2019 Minnesota Corporation Income Tax Return

2020 Texas Franchise Tax Report

We prepared the returns from information you furnished us without verification. Upon examination of the returns by taxing authorities, requests may be made for underlying data. We therefore recommend that you preserve all records which you may be called upon to produce in connection with such an examination.

Your copy should be retained for your files.

We sincerely appreciate the opportunity to serve you. Please contact us if you have any questions concerning the tax returns.

Sincerely, Mirza Baig, CPA

2019 TAX RETURN FILING INSTRUCTIONS

U.S. CORPORATION INCOME TAX RETURN

FOR THE YEAR ENDING

December 31, 2019

Prepared For:

Carol Harrington

4320 E Cotton Center Blvd., Suite 106

Prepared By:

Wallace, Plese + Dreher, LLP Certified Public Accountants and Consultants 500 N. Juniper Drive, Suite 275 Chandler, AZ 85226

To be Signed and Dated By:

The appropriate corporate officer(s).

Amount of Tax:

Total tax $ 0 Less: payments and credits $ 0 Plus: interest and penalties $ 0 No payment required $

Overpayment:

Not applicable

Make Check Payable To:

Not Applicable

Mail Tax Return and Check (if applicable) To:

This return has qualified for electronic filing. After you have reviewed the return for accuracy, please sign, date and return Form 8879-C to our office. We will transmit your return electronically to the IRS, and no further action is required.

Return Must be Mailed on or Before:

Not Applicable

Special Instructions:

912841

Increase (Decrease)Description Prior Year Current Year

Name Employer Identification Number

Two-Year Comparison 2019

ICM CONVERSIONS, INC. 86-0604068

INCOME:

GROSS RECEIPTS OR SALES LESS

RETURNS AND ALLOWANCES 6,085,414. 5,264,482. -820,932.

COST OF GOODS SOLD 2,783,430. 2,990,123. 206,693.

GROSS PROFITS 3,301,984. 2,274,359. -1,027,625.

INTEREST 4,246. 5,823. 1,577.

NET GAIN (LOSS) FROM FORM 4797 5,253. 0. -5,253.

TOTAL INCOME 3,311,483. 2,280,182. -1,031,301.

DEDUCTIONS:

COMPENSATION OF OFFICERS 367,585. 524,469. 156,884.

SALARIES AND WAGES LESS

EMPLOYMENT CREDITS 1,953,562. 1,075,059. -878,503.

REPAIRS AND MAINTENANCE 77,531. 18,247. -59,284.

BAD DEBTS 11,474. 30,000. 18,526.

RENTS 269,385. 289,393. 20,008.

TAXES AND LICENSES 9,071. 87,730. 78,659.

INTEREST 6,370. 2,314. -4,056.

CHARITABLE CONTRIBUTIONS 9,156. 0. -9,156.

DEPRECIATION 10,677. 15,110. 4,433.

ADVERTISING 59,737. 118,287. 58,550.

PENSION, PROFIT-SHARING, ETC.,

PLANS 65,254. 65,564. 310.

EMPLOYEE BENEFIT PROGRAMS 98,613. 91,007. -7,606.

OTHER DEDUCTIONS 402,154. 482,820. 80,666.

TOTAL DEDUCTIONS 3,340,569. 2,800,000. -540,569.

TAXABLE INCOME:

TAXABLE INCOME BEFORE NOL DEDUCTION

AND SPECIAL DEDUCTIONS -29,086. -519,818. -490,732.

TAXABLE INCOME -29,086. -519,818. -490,732.

TAX COMPUTATION:

TAX BEFORE CREDITS 0. 0. 0.

TAX AFTER CREDITS 0. 0. 0.

TOTAL TAX 0. 0. 0.

PAYMENTS AND CREDITS:

PRIOR YEAR OVERPAYMENT CREDITED

CORPORATION

912841

Increase (Decrease)Description Prior Year Current Year

Name Employer Identification Number

Two-Year Comparison 2019

TO CURRENT YEAR 11,584. 0. -11,584.

TOTAL PAYMENTS AND CREDITS 11,584. 0. -11,584.

BALANCE DUE OR REFUND:

OVERPAYMENT 11,584. 0. -11,584.

AMOUNT REFUNDED 11,584. 0. -11,584.

SCHEDULE M-1:

NET INCOME (LOSS) PER BOOKS -345,209. -426,820. -81,611.

TAXABLE INCOME NOT ON BOOKS 543,249. 448,286. -94,963.

BOOK EXPENSES NOT ON RETURN 312,951. 136,958. -175,993.

INCOME ON BOOKS NOT ON RETURN 516,375. 663,132. 146,757.

RETURN DEDUCTIONS NOT ON BOOKS 23,702. 15,110. -8,592.

INCOME PER RETURN -29,086. -519,818. -490,732.

SCHEDULE M-2:

BALANCE AT BEGINNING OF YEAR -

UNAPPROPRIATED RETAINED EARNINGS 2,910,921. 2,544,712. -366,209.

NET INCOME (LOSS) PER BOOKS -345,209. -426,820. -81,611.

CASH DISTRIBUTIONS 21,000. 25,000. 4,000.

BALANCE AT END OF YEAR -

UNAPPROPRIATED RETAINED EARNINGS 2,544,712. 2,092,892. -451,820.

CORPORATION

OMB No. 1545-0123

Form

For calendar year 2019, or tax year beginning , 2019, ending , 20

Department of the Treasury Internal Revenue Service

910211 10-31-19

Employer identification number

ERO firm name do not enter all zeros do not enter all zeros

| Do not send to the IRS. Keep for your records.

| Go to www.irs.gov/Form8879C for the latest information.

(a) (b) (c)

1-888-353-4537

Officer's PIN: check one box only

ERO's EFIN/PIN.

Pub. 3112, Pub. 4163, For Paperwork Reduction Act Notice, see instructions.

e-file e-file

Name of corporation

Officer's signature | Date | Title |

ERO's signature | Date |

(Whole dollars only)

Total income (Form 1120, line 11)

Taxable income (Form 1120, line 30)

Total tax (Form 1120, line 31)

Amount owed (Form 1120, line 35) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Overpayment (Form 1120, line 36) ��������������������������������������

Under penalties of perjury, I declare that I am an officer of the above corporation and that I have examined a copy of the corporation's 2019 electronic income tax return and accompanying schedules and statements and to the best of my knowledge and belief, it is true, correct, and complete. I further declare that the amounts in Part I above are the amounts shown on the copy of the corporation's electronic income tax return. I consent to allow my electronic return originator (ERO), transmitter, or intermediate service provider to send the corporation's return to the IRS and to receive from the IRS an acknowledgement of receipt or reason for rejection of the transmission, the reason for any delay in processing the return or refund, and the date of any refund. If applicable, I authorize the U.S. Treasury and its designated Financial Agent to initiate an electronic funds withdrawal (direct debit) entry to the financial institution account indicated in the tax preparation software for payment of the corporation's federal taxes owed on this return, and the financial institution to debit the entry to this account. To revoke a payment, I must contact the U.S. Treasury Financial Agent at no later than 2 business days prior to the payment (settlement) date. I also authorize the financial institutions involved in the processing of the electronic payment of taxes to receive confidential information necessary to answer inquiries and resolve issues related to the payment. I have selected a personal identification number (PIN) as my signature for the corporation's electronic income tax return and, if applicable, the corporation's consent to electronic funds withdrawal.

I authorize to enter my PIN as my signature on the corporation's 2019 electronically filed income tax return.

As an officer of the corporation, I will enter my PIN as my signature on the corporation's 2019 electronically filed income tax return.

Enter your six-digit EFIN followed by your five-digit self-selected PIN.

I certify that the above numeric entry is my PIN, which is my signature on the 2019 electronically filed income tax return for the corporation indicated above. I confirm that I am submitting this return in accordance with the requirements of IRS Application and Participation, and Modernized e-File (MeF) Information for Authorized IRS Providers for Business Returns.

Form (2019)

LHA

Part I Tax Return Information

Part II Declaration and Signature Authorization of Officer. Be sure to get a copy of the corporation's return.

Part III Certification and Authentication

ERO Must Retain This Form - See Instructions Do Not Submit This Form to the IRS Unless Requested To Do So

8879-C

IRS e-file Signature Authorization for Form 11208879-C

2,280,182.

-519,818.

X WALLACE, PLESE + DREHER, LLP 85040

PRESIDENT

86503320330

08/03/20WALLACE, PLESE + DREHER, LLP

OMB No. 1545-0233

919741 04-01-19

Identifying numberName

Number, street, and room or suite no. (If P.O. box, see instructions.)

City, town, state, and ZIP code (If a foreign address, enter city, province or state, and country (follow the country's practice for entering postal code).)

| File a separate application for each return.

| Go to www.irs.gov/Form7004 for instructions and the latest information.

Application Is For:

Code

Application Is For:

a b Short tax year.

Total

Balance due.

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. 7004

, or tax year beginning , and ending

(Rev. December 2018)

File request for extension by the due date of the return. See instructions before completing this form.

Enter the form code for the return listed below that this application is for �������������������������������

Form 706-GS(D)

Form 706-GS(T)

Form 1041 (bankruptcy estate only)

Form 1041 (estate other than a bankruptcy estate)

Form 1041 (trust)

Form 1120-ND (section 4951 taxes)

Form 1120-PC

Form 1120-POL

Form 1120-REIT

Form 1120-RIC

Form 1041-N

Form 1041-QFT

Form 1120S

Form 1120-SF

Form 3520-A

Form 8612

Form 1042

Form 1065

Form 1066

Form 1120

Form 8613

Form 8725

Form 8804

Form 8831

Form 1120-C

Form 1120-F

Form 1120-FSC

Form 1120-H

Form 8876

Form 8924

Form 8928Form 1120-L

Form 1120-ND

If the organization is a foreign corporation that does not have an office or place of business in the United States, check here ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ |

If the organization is a corporation and is the common parent of a group that intends to file a consolidated return, check here

If checked, attach a statement listing the name, address, and employer identification number (EIN) for each member covered by this application.

If the organization is a corporation or partnership that qualifies under Regulations section 1.6081-5, check here ~~~~~~~~~~~~ |

The application is for calendar year

If this tax year is less than 12 months, check the reason: Initial return Final return

Change in accounting period Consolidated return to be filed Other (See instructions - attach explanation.)

Tentative total tax ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ payments and credits. See instructions ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Subtract line 7 from line 6. See instructions ���������������������������

LHA Form (Rev. 12-2018)

Note:

Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns

Print or Type

Part I Automatic Extension for Certain Business Income Tax, Information, and Other Returns.

Part II All Filers Must Complete This Part

See instructions.

PHOENIX, AZ 85040

0.

For calendar year 2019 or tax year beginning , ending

Employer identification number

Date incorporated

1a b

Consolidated return (attach Form 851) Life/nonlife consoli-dated return Personal holding co.

(attach Sch. PH)

Personal service corp.

(see instructions)

Total assets (see instructions)

Schedule M-3 attached

Compensation of officers (attach Form 1125-E)

Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. May the IRS discuss this return with the preparer shown below?

Signature of officer Date Title

Check if self-employed

DatePrint/Type preparer's name Preparer's signature PTIN

Firm's name

Firm's address

Firm's EIN

Phone no.

911601 12-30-19

| Go to www.irs.gov/Form1120 for instructions and the latest information.

B

C

D

A

TYPE

OR

PRINT

E (1) (2) (3) (4) c

1b

1c

29c

Total income.

Total deductions.

29a

29b

Taxable income. 30

Amount owed.

Overpayment.

Credited to 2020 estimated tax |

Ta x, R ef un da bl e re di ts nd P ay m en ts

Refunded

Yes No

Paid

Preparer

Use Only

For Paperwork Reduction Act Notice, see separate instructions. 1120

In o d u ti n s

S i tr f r lim it

Check if: Name

Number, street, and room or suite no. If a P.O. box, see instructions.

City or town, state or province, country, and ZIP or foreign postal code

Check if: Initial return Final return Name change Address change

Gross receipts or sales

Returns and allowances

Balance. Subtract line 1b from line 1a

Cost of goods sold (attach Form 1125-A)

Gross profit. Subtract line 2 from line 1c

Dividends and inclusions (Schedule C, line 23)

Interest

Gross rents

Gross royalties

Capital gain net income (attach Schedule D (Form 1120))

Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)

Other income (attach statement)

Add lines 3 through 10

Salaries and wages (less employment credits)

Repairs and maintenance

Bad debts

Rents

Taxes and licenses

Interest (see instructions)

Charitable contributions

Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562)

Depletion

Advertising

Pension, profit-sharing, etc., plans

Employee benefit programs

Reserved for future use

Other deductions (attach statement)

Add lines 12 through 26 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Net operating loss deduction (see instructions)

Special deductions (Schedule C, line 24)

Add lines 29a and 29b

Subtract line 29c from line 28. See instructions ~~~~~~~~~~~~~~~~~~~~~~~~

Total tax (Schedule J, Part I, line 11)

2019 net 965 tax liability paid (Schedule J, Part II, line 12)

Total payments, credits, and section 965 net tax liability (Schedule J, Part III, line 23) ~~~~~~~~~~~~~~~

Estimated tax penalty. See instructions. Check if Form 2220 is attached ~~~~~~~~~~~~~~~~~ |

If line 33 is smaller than the total of lines 31, 32, and 34, enter amount owed

If line 33 is larger than the total of lines 31, 32, and 34, enter amount overpaid

Enter amount from line 36 you want:

Sign Here

U.S. Corporation Income Tax Return1120

SEE STATEMENT 1

SEE STATEMENT 2

SEE STATEMENT 3 SEE STATEMENT 4

SEE STATEMENT 5

STATEMENT 6

05/01/1988

5,229.

5,264,482.

2,990,123.

2,274,359.

5,823.

PHOENIX, AZ 85040 3,048,740.

2,280,182.

524,469.

1,075,059.

18,247.

30,000.

289,393.

87,730.

2,314.

15,110.

118,287.

65,564.

91,007.

482,820.

2,800,000.

WALLACE, PLESE + DREHER, LLP

500 N. JUNIPER DRIVE, SUITE 275

CHANDLER, AZ 85226

86-0841383

(480) 345-0500

EXTENSION GRANTED TO 10/15/20

AND

PRESIDENT

08/03/20 P01695501

X

MIRZA BAIG, CPAMIRZA BAIG, CPA

5,269,711.

Form 1120 (2019) see instructions

911611

(a) (c)

(b)

23.3

26.7

Subtotal.

Total dividends and inclusions.

Total special deductions.

Page

(see instructions) Dividends and inclusions

Special deductions x

Dividends from less-than-20%-owned domestic corporations (other than debt-financed stock)

Dividends from 20%-or-more-owned domestic corporations (other than debt-financed stock)

Dividends on certain debt-financed stock of domestic and foreign corporations

Dividends on certain preferred stock of less-than-20%-owned public utilities

Dividends on certain preferred stock of 20%-or-more-owned public utilities

Dividends from less-than-20%-owned foreign corporations and certain FSCs ~~~~~~

Dividends from 20%-or-more-owned foreign corporations and certain FSCs ~~~~~~

Dividends from wholly owned foreign subsidiaries ~~~~~~~~~~~~~~~~~

Add lines 1 through 8 ~~~~~~~~~~~~~~~~~~~~~~~~~

Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 ~~~~~~~~~

Dividends from affiliated group members ~~~~~~~~~~~~~~~~~~~~~

Dividends from certain FSCs

Foreign-source portion of dividends received from a specified 10%-owned foreign corporation (excluding hybrid dividends) (see instructions)

Dividends from foreign corporations not included on line 3, 6, 7, 8, 11, 12, or 13

(including any hybrid dividends)

Section 965(a) inclusion ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Subpart F inclusions derived from the sale by a controlled foreign corporation (CFC) of the stock of a lower-tier foreign corporation treated as a dividend (attach Form(s) 5471)

Subpart F inclusions derived from hybrid dividends of tiered corporations (attach Form(s)

5471) (see instructions)

Other inclusions from CFCs under subpart F not included on line 15, 16a, 16b, or 17

(attach Form(s) 5471) (see instructions)

Global intangible Low-Taxed income (GILTI) (attach Form(s) 5471 and Form 8992)

Gross-up for foreign taxes deemed paid lC -DISC and former DISC dividends not included on line 1, 2, or 3 ~~~~~~~~~~

Other dividends ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Deduction for dividends paid on certain preferred stock of public utilities

Section 250 deduction (attach Form 8993)

Add column (a), lines 9 through 20. Enter here and on page 1, line 4

Add column (c), lines 9 through 22. Enter here and on page 1, line 29b

Schedule C Dividends, Inclusions, and Special Deductions

911621

2 2

5a

5b

5c

5d

5e

Total credits.

9a

9b

9c

9d

9e

9f

Total.

Total tax.

Total payments.

20a

20b

20c

20d

Total credits.

Total payments, credits, and section 965 net tax liability.

Part I - Tax Computation

Part II - Section 965 Payments

Part III - Payments, Refundable Credits, and Section 965 Net Tax Liability

Form 1120 (2019) Page

Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)) ~~~~~~~~~~ |

Income tax. See instructions

Base erosion minimum tax amount (attach Form 8991)

Add lines 2 and 3

Foreign tax credit (attach Form 1118)

Credit from Form 8834 (see instructions)

General business credit (attach Form 3800)

Credit for prior year minimum tax (attach Form 8827)

Bond credits from Form 8912

Add lines 5a through 5e

Subtract line 6 from line 4

Personal holding company tax (attach Schedule PH (Form 1120))

Recapture of investment credit (attach Form 4255)

Recapture of low-income housing credit (attach Form 8611)

Interest due under the look-back method-completed long-term contracts

(attach Form 8697)

Interest due under the look-back method-income forecast method (attach Form 8866)

Alternative tax on qualifying shipping activities (attach Form 8902)

Other (see instructions - attach statement)

Add lines 9a through 9f

Add lines 7, 8, and 10. Enter here and on page 1, line 31

2019 net 965 tax liability paid from Form 965-B, Part II, column (k), line 3. Enter here and on page 1, line 32 �������

2018 overpayment credited to 2019

2019 estimated tax payments

2019 refund applied for on Form 4466

Combine lines 13, 14, and 15

Tax deposited with Form 7004

Withholding (see instructions)

Add lines 16, 17, and 18

Refundable credits from:

Form 2439

Form 4136

Form 8827, line 5c

Other (attach statement - see instructions)

Add lines 20a through 20d

2019 net 965 tax liability from Form 965-B, Part I, column (d), line 3. See instructions

Add lines 19, 21, and 22. Enter here and on page 1, line 33

Schedule J Tax Computation and Payment

(iv) Maximum Percentage Owned in Profit, Loss, or Capital

(i) Name of Corporation

(ii) Employer

Identification Number (if any)

(iii) Country of Incorporation

(iv) Percentage Owned in Voting

Stock

(i) Name of Entity

(ii) Employer

Identification Number (if any)

(iii) Country of

Organization

911632 a b c Yes No

Form 851, Form 5452,

(c) Form 5472, Form 8281, Check accounting method: Cash Accrual Other (specify) |

See the instructions and enter the:

Business activity code no. |

Business activity |

Product or service |

Is the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group? ~~~~~~~~~~~~~~~~~~~~~~~~~

If "Yes," enter name and EIN of the parent corporation |

At the end of the tax year:

Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part I of Schedule G (Form 1120) (attach Schedule G) ~~~~~~~~~~~~~~~~~~

Did any individual or estate own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part II of Schedule G (Form 1120) (attach Schedule G) ~~~~~~~~~~~

At the end of the tax year, did the corporation:

Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation not included on Affiliations Schedule? For rules of constructive ownership, see instructions

If "Yes," complete (i) through (iv) below.

Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in any foreign or domestic partnership

(including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions ~~~~~~

If "Yes," complete (i) through (iv) below.

During this tax year, did the corporation pay dividends (other than stock dividends and distributions in exchange for stock) in excess of the corporation's current and accumulated earnings and profits? See sections 301 and 316 ~~~~~~~~~~~~~~~~~~~~~

If "Yes," file Corporate Report of Nondividend Distributions. See the instructions for Form 5452.

If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary.

At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of the total voting power of all classes of the corporation's stock entitled to vote or at least 25% of the total value of all classes of the corporation's stock? ~~~~~~~~~~~~

For rules of attribution, see section 318. If "Yes," enter:

Percentage owned | and Owner's country |

The corporation may have to file Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign

Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached |

Check this box if the corporation issued publicly offered debt instruments with original issue discount ~~~~~~~~~~~~~~~~~ |

If checked, the corporation may have to file Information Return for…