From the 10KSB dated 12/15/98 Should have automatically been given commom equivilant from the P conversion.
301,821 shares of Series A Preferred Stock convertible into
approximately 12,782,120 shares of common stock. The Series A Preferred Stock is
considered to be a common stock equivalent for purposes of this calculation.
There were, therefore, 16,272,077 common share equivalents outstanding, of which
affiliates held 143,990, leaving 16,128,087 common share equivalents held by non
affiliates. There were no bid or asked quotations for the common stock on that
Series A Preferred Stock: The Series A Preferred Stock was to have been
automatically converted into shares of common (Common Stock) on October 1, 1998;
however, there were an insufficient number of shares authorized to provide for
conversion. The Company has allowed preferred shareholders who request
conversion in writing to obtain shares of Common Stock, but there is no
assurance it will continue to be able to do so given the authorized
capitalization of the Company. The Company anticipates calling and holding an
annual meeting of shareholders during April, 1999, and, in addition to the
election of directors, will place on the ballot a proposal to increase its
authorized capitalization to an amount sufficient to provide for conversion.
Until conversion is effected, each share of Series A Preferred Stock is entitled
to 35 votes on each matter submitted to a vote to the Common Stock as if the two
classes, common and preferred, constituted one class. Each share of Preferred
Stock is currently convertible into approximately 42.35 shares of Common Stock |
