SEC Form 10Q for period ending 30 Sep 1997. Liquidity and Capital Rersources.
"...The Company has financed its activities to date with a combination of cash flow from operations, borrowed funds, and proceeds from the sale of equity securities...The Company has a line of credit pursuant to which it may borrow up to the lesser of $1.0 million or 75% of eligible receivables. Borrowings are payable on demand and bear interest at a fluctuating rate equal to the prime rate (8.5% at November 1, 1997) or a rate based on LIBOR. The Company's bank has increased the line of credit to $5.0 million through January 31, 1998 to meet the Company's seasonal working capital needs during the fourth quarter.
The line of credit is scheduled for review in July 1998 and is secured by substantially all the Company's assets. The line of credit requires the Company to maintain certain working capital and debt-to-equity ratios. At September 30, 1997 there were no borrowings outstanding under the facility
and the Company was in compliance with all loan covenants. The Company expects to borrow approximately $4.0 million under the line of credit by the end of 1997...At September 30, 1997, the Company had cash and cash equivalents of $5,376,000 and working capital of $15,642,000...The Company does not intend to pay cash dividends to the holders of Common Stock and intends to retain future earnings to finance the expansion
and development of its business...The Company believes that available funds and expected cash flow to be generated from operations, together with any borrowings under its credit
facility will be adequate to meet the Company's anticipated cash needs for its present operations through 1998..."
As of 12-31-97 Cash on hand was $449,000 and working capital was $17.2 million v. Cash on Hand of $6.4 million and working capital of $14.8 million at 12-31-96. TMSRs $5 million bank line of credit was good through today, January 31, 1998 (per TMSRs Q3 SEC Form 10-Q. Accordingly, the shareholders should expect a Company press release imminently pursuant to this materially significant situation ref/ SEC Rule 10b-5.
source: freeedgar.com |
