From 10Q filed today.
Total shareholders equity: $912,200, or $0.11/share.
Revenue generated from K-tel
Express through September 30, 1998 has not been material.
........
As of September 30, 1998,
$4,000,000 was outstanding under the term loan and $5,146,000 was
outstanding under the line of credit and the maximum additional available
under the borrowing limitations at that date was $72,742. The Company was
either in compliance with or had obtained waivers for all covenants,
limitations and restrictions. The Company has amended certain financial
covenants with the lender for fiscal 1999 and beyond, and expects to be
out of compliance with the tangible net requirement until the Company
achieves the necessary level of profitable operations, obtains an equity
infusion or further modifies the covenants. As such, the Company has
reclassified its $4 million term loan to current as of September 30, 1998.
Future losses from businesses such as K-tel Express or the inability to
complete an equity placement may result in further renegotiations of such
covenants or the need to seek replacement financing. There can be no
assurances that such financing will be available on terms satisfactory to
the Company.
............
In accordance with the agreement, the
Company is required to make guaranteed monthly payments totaling $900,000
over the initial two year contract term that will be used to offset
royalties to Playboy Enterprises, Inc. |
