DinoRia-
I assume your question is based on the following comment:
Ik vraag mij af of ge al eens naar de balans gekeken hebt??
PARS is bijna falliet... Weet ge hoeveel korte termijn schulden pars heeft? Die moeten ze op een jaar of iets meer terugbetalen...
In response to your question, the appropriate place to look is the most recent 10Q, a form filed on a quarterly basis with the Securities and Exchange Commission. The most recent filing can be found at sec.gov.
If we look at the balance sheet, we see the following for liabilities:
Short term liabilities..................3.4 Million
Long Term ..............................3.2 Million
Total Liabilities.......................6.6 Million
The single largest liability is 4.5 Million for "Advances against future sales." Of the 4.5 Million total, 1.4 Million is included in Current Liabilities (due within 12 months).
What gave rise to this liability is explained in one of the footnotes-Footnote 4 on page 7. There it is indicated that Bausch & Lomb (BOL) advanced PARS 5 Million, of which 4.5 Million is still outstanding. These amounts are to be repaid by PARS from future product sales. Pars is entitled to 28% of product sales, of which 8% is a royalty to be paid by PARS, hence PARS nets 20%. From this 28% of sales,
there will be repayment of the advances made by BOL. Footnote 4 further explains that the 1.4 Million in advances that is included in Current Liabilities is management's estimate of the repayment in the next 12 months, which in turn is based on its estimates of sales. To the extent that sales differ from the assumptions, the amount to be repaid to BOL will also vary. I believe that this responds to the issue of short term debt.
Totally seperate from the issue you brought up, PARS recently entered into an agreement under which it can draw funds in exchange for shares. This agreement results in the issuance of more shares and hence does not generate any debt.
DinoRia- I hope that the above responds to your question. Please let me know if I should elaborate further.
Tony
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