At June 30, 1999, we had a working capital deficit of approximately
$339,000 and only $8,047 in cash. Since June 30, 1999, the Company's principal
stockholders lent us $380,000. The loans are evidenced by promissory notes due
on demand which bear 9% per annum interest. We are substantially dependent upon
loans from our principal stockholders for short-term working capital.
Wow, $8,000 in cash. Yeah, they are ready for a Nasdaq listing!
On January 1, 1999, Mr. Edward J. Stackpole entered into a three-year
employment agreement with the Company at an annual salary of $300,000 per year
and a quarterly bonus
equal to 5% of the Company's net pre-tax quarterly income. Mr. Stackpole was
also granted 600,000 non-qualified stock options exercisable at $4.00 per share
over a 10-year period which vest in increments of 50,000 options quarterly,
provided that Mr. Stackpole is still employed on the last day of each quarter.
Mr. Stackpole receives an automobile allowance of $2,000 per month and car
insurance of approximately $2,000 per year.
On January 1, 1999 Mrs. Itir Stackpole entered into a three-year
employment agreement with the Company at an annual salary of $250,000 per year
and a quarterly bonus equal to 5% of the Company's net pre-tax quarterly income.
Mrs. Stackpole was also granted 600,000 non qualified options at $4.00 per share
over a 10-year period which vest in increments of 50,000 options quarterly,
provided that Mrs. Stackpole is still employed on the last day of each quarter.
We pay Mrs. Stackpole's automobile insurance of approximately $2,000 per year.
Effective June 1, 1999, Mr. Alan T. Goldstein entered into a three-year
employment agreement with the Company at an annual salary of $100,000 per year.
Mr. Goldstein also receives a quarterly bonus equal to 3.3% of the Company's net
pre-tax quarterly income. He received a signing bonus of 10,000 shares of the
Company's Class A Common Stock, of which 5,000 vested immediately and 5,000
shall vest on December 1, 1999 provided Mr. Goldstein is employed by the Company
on that date. He was granted 300,000 non-qualified options exercisable at $5.00
per share over a 10-year period which vest in increments of 25,000 options
quarterly, provided that Mr. Goldstein is still employed on the last day of each
quarter.
Effective on June 1, 1999, Mr. Bert Perez entered into a three-year
employment agreement with the Company at an annual salary of $100,000 per year.
Mr. Perez also receives a
quarterly bonus equal to 3.3% of the Company's net pre-tax quarterly income. He
received a signing bonus of 10,000 shares of the Company's Class A Common Stock,
of which 5,000 vested immediately and 5,000 shares shall vest on December 1,
1999 provided Mr. Perez is employed by the Company on that date. Mr. Perez was
granted 300,000 non qualified options exercisable at $5.00 per share over a
10-year period which vest in increments of 25,000 options quarterly, provided
that Mr. Perez is still employed on the last day of each quarter.
They aren't content to siphon off 16.6% of the pretax earnings,
they get big salaries too. Don't want to chance any money getting
into the hands of non-Stackpoles, you see.
27 Financial Data Schedule*
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* To be filed by Amendment
That's right, the Form 10 does not contain any financial
tables. |
