This annual report summarizes Sensorship's 2021 performance and future plans. In 2021, Sensorship saw profits grow 69% to $47.37 million on $397.52 million in sales. The company aims to continue paying dividends and retiring debt. Sensorship focuses on high-end, performance, and small sensors and will look to expand in low-end and traditional markets. The board of directors oversees the CEO, COO, and CFO who each have educational and career experience relevant to their roles.

1. “Sailing the way to innovation”
2021
Board of Directors
Sensorship
12/31/2021
Sensorship Annual Report

2. Table of Contents
Our Mission..................................................................................................................................... 3
Our Vision....................................................................................................................................... 3
Core Values..................................................................................................................................... 3
Letter to Shareholders ..................................................................................................................... 4
Business .......................................................................................................................................... 5
Risks................................................................................................................................................ 5
Financial Statements ....................................................................................................................... 5
Product Development...................................................................................................................... 7
Products........................................................................................................................................... 8
Company Accomplishments ........................................................................................................... 9
Looking Forward........................................................................................................................... 10
Board of Directors......................................................................................................................... 11

3. Our Mission
Our mission is to be the leading manufacturer of sensors of the Industry by selling the highest
quality sensors. Our success is measured through customer satisfaction and amount of market
share.
Our Vision
Our company will provide leading, quality products and service through dedicated employees
and innovative efforts. We aim to create strong mutual relationships with our customers by
providing excellence in both product and service in the sensor industry. Providing competitive
edge to our customers by selling them highest quality sensors.
Core Values
Excellence: We value and encourage creativity, thoughtfulness and ambition. We strive to be
the best and most innovative company and this is only accomplished through a commitment to
excellence.
Quality: We value doing things right and performing our tasks the right way the first time,
every time.
Leadership: We value and encourage leadership and accountability. It not only harvests strong
employees but a strong company culture overall.
Teamwork: We value teamwork amongst all members of the organization, we are only as
strong as our weakest link and our success is tied to every single member of this company as we
are only successful due to the collective hard work of our employees.

4. Letter to Shareholders
To Our Shareholders,
Fiscal year 2021 was of great success, and we hope to strive for improved results for the future.
In the past three years we’ve seen our profits grow an astounding 69% from about $28 million in
2019 to $47.37 million this past year. With nearly $400 million in sales, we aim to increase our
shareholder wealth through improvements to increase contribution margin, advancing our
forecasting technology, and lowering product cost. Due to our economic success we will
continue to pay dividends into the foreseeable future as well as retiring some of our old debts.
After the breakup of the monopolistic industry, we were able to bring our company to a stable,
profitable state, all while continuing to provide quality and innovative customer products and
service. It is a testament to our company’s strength that we were able to do this. We will
continue to be profitable and we will continue to grow.
With our current retained earnings of $149.4 million, we have a strong standpoint to be able to
expand our operations with low risk and have the potential to grow beyond our current position.
It will allow us to pay off some of our debts and at the same time it will allow us to reinvest in
the company and become even more innovative than we were in the past. Our position is
allowing for a better Sensorship which means better products and bigger profits.
Our primary objective is to maximize returns to shareholders. Based on our company’s current
position, it is possible to achieve these growths and continue to do so in the future. We will
achieve this growth through our commitment to excellence and through our commitment to
building an even stronger and smarter Sensorship team.
We spend an inordinate amount of time developing leadership and our talented employees. Due
to our belief in teamwork and commitment our commitment to innovation that is something that
will never stop. It’s what allows us to grow, adapt and succeed in the competitive market. You
can expect more dedication more growth and more innovation as this team takes Sensorship into
the future.
Sincerely,
Eric Walton
Chairman and CEO

5. Business
Sensorship operates within the Sensors Industry, NAICS code 334413. We manufacturer
sensors and sell them to other manufacturers who in turn sell their products to consumers.
Risks
A majority of our products are within the Size, Performance, and High end. Size,
Performance, and High end markets are the fastest growing and costly to develop.
Financial Statements
Income Statement
For the Year Ended December 31,
2021 2020 2019
(In millions)
Sales
$
397,520
$
355,590
$
262,455
Cost of Goods Sold $(237,361) $(199,346) $(143,397)
Gross Revenue
$
160,159
$
156,244
$
119,058
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
2014 2015 2016 2017 2018 2019 2020
S
t
o
c
k
P
r
i
c
e
Year
Sensorship
Avarage

6. Operating Expenses
Inventory Carry
$
(4,456)
$
(3,758)
$
(3,567)
Depreciation $(22,960) $(22,267) $(15,400)
Research and
Development
$
(3,822)
$
(2,152)
$
(4,553)
Marketing $(12,500) $(13,400) $(10,800)
Selling $(16,500) $(16,500) $(14,400)
Administration
$
(6,220)
$
(4,653)
$
(3,853)
Net Operating Expenses
$
(66,458)
$
(62,730)
$
(52,573)
Other Expense
$
(3,520)
$
(5,250)
$
(9,040)
EBIT
$
90,181
$
88,264
$
57,445
Interest Expense
$
(15,812)
$
(18,192)
$
(13,474)
Taxes
$
(26,029)
$
(24,525)
$
(15,390)
Profit Sharing
$
(967)
$
(911)
$
(572)
Net Profit
$
47,373
$
44,636
$
28,009
For the Year Ended December 31,
2021 2020 2019
Assets (In thousands)
Current Assets
Cash
$
47,937
$
69,421
$
59,868
Accounts Receivable
$
32,673
$
29,227
$
21,572
Inventory
$
37,132
$
31,315
$
29,724
Total Current Assets
$
117,742
$
129,963
$
111,164
Fixed Assets
Plant & Equipment
$
344,400
$
334,000
$
251,800

7. Accumulated
Depreciation $(152,133) $(129,173) $(106,907)
Total Fixed Assets
$
192,267
$
204,827
$
144,893
Total Assets
$
310,009
$
334,790
$
256,057
Liabilities & Equity
Current Liabilities
Accounts Payable
$
19,987
$
16,515
$
13,370
Current Debt
$
10,400
$
30,000
$
39,050
Total Current Liabilities
$
30,387
$
46,515
$
52,420
Long Term Liabilities
Bonds Payable
$
113,750
$
113,750
$
73,750
Total Long Term
Liabilities
$
144,137
$
160,265
$
126,170
Stockholder's Equity
Common Stock
$
16,466
$
18,360
$
18,360
Retained Earnings
$
149,405
$
156,163
$
111,527
Total Stockholder's
Equity
$
165,871
$
174,523
$
129,887
Total liabilities and
Stockholder's Equity
$
310,008
$
334,788
$
256,057
Product Development
We believe in giving our customers the best products possible catering to their every need. It is
because of this belief that research and development has become one of the key factors in our
company’s success. We work intensely together on researching what the customer wants and
how to provide it to them. Not only do we consult amongst ourselves but we consult experts
who can an accurate review of our decisions. Once these reviews are completed we then do all
we can to develop the products quickly and efficiently because we pride ourselves on our
innovation and our ability to introduce it to the customers.

8. Products
We focus our products in three core segments. These segments include the High End,
Performance, and Size segments. However we desire to cater to all customers and because of
this we also cater to other markets such as the Low End and Traditional segments for those who
are a little more sensitive to price. Our High End products Apple and Avatar are the top of the
line in the industry providing the customer with everything it could possibly want. These
products operate on a superior level all while being extremely reliable and not being too bulky in
size. Our Performance products Adam and Aft are built to last they are the toughest and most
reliable products on the market. Agape and Area leaves our consumers with a highly efficient
product with all they could possibly desire in the most compact way possible.

9. Company Accomplishments
Through TQM initiatives, we reduced our R&D cycle time by 40%, labor costs by 14%, material
costs by 11.8%, and administrative costs by 60% all while increasing demand by 14.4%.
With quality Human Resources, we were able to achieve a turnover rate of 6.4%, and increase
our worker’s productivity index to 131.5%.
Through successful usage of our R&D department and close monitoring of customers wants and
desires we were able to achieve the highest customer survey scores in every market segment with
the exception of low end.
In the past 8 years, we have managed to achieve the highest cumulative total profit of $178
million, in the sensor industry.
We have successfully become the industry leader which is evidenced by our market share of
25.47%.
We achieved the highest ROA in the industry at 15.3% which shows that we are the most
efficient company when it comes to utilizing our asset base.
As well as having the highest ROA we have also achieved the highest ROE at 28.6%. This
indicates that we are the best at turning our shareholders investments into profits.
Our stock prices have reached a closing value of $226.63, almost twice the value of the other
leading companies.

10. Looking Forward
We will focus on increasing market share in low and traditional markets. Increase
capacity on Able and Adam products.

11. Board of Directors
Eric Walton; Chief Executive Officer
Graduated from York College of Pennsylvania with a Bachelor’s degree in accounting. After
graduating he decided to take a position as a staff accountant at a then up and coming
Sensorship. After several years of dedicated employment and hard work Eric was incrementally
moved up in the company to become its eventual and current CEO.
Michael Gable; Chief Operations Officer
Graduated from York College of Pennsylvania with a Bachelor’s degree in
Marketing. Upon graduation, he was offered a position as a marketing
representative for Sensorship. Through several promotions and marketing
positions held in the past fifteen years, Michael was offered his current position
of Chief Operations Officer in 2012.
Sarah Bradley; Chief Financial Officer
Graduated from Harrisburg Area Community College(HACC) with a
Business Administration Associate in 2008 and transferred to York
College of Pennsylvania(YCP), obtaining a Bachelors of Accounting in
2013. Was offered sales forecast analyst position within our company
upon graduating YCP and accepted. After five years and several
promotions, Sarah received her current position as Chief Financial
Officer.