Some highlites from 10k
Internet Sales
In March 1999, Breaking Waves launched an online wholesale children's
swimwear website at www.BreakingWaves.com. The website is designed to complement
the company's wholesale distribution efforts by providing retailers instant
access to more than 200 styles of Breaking Waves swimwear. The entire line of
Breaking Waves swimwear, including products marketed under the "Breaking Waves,"
"All Waves," "Daffy Waterwear," and "Jet Ski" brands, is available for online
purchase by retailers. The Breaking Waves website is being hosted by Mindspring
and incorporates e-commerce features from Cybercash and Mercantec, Inc.
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On February 1, 1999, the Company loaned $100,000 to Play Co. (a toy
retailer and publicly traded company whose board chairman is the President of
both the Company and Breaking Waves) and received in exchange therefor an
unsecured promissory note bearing interest at 9% per annum. The note is payable
by Play Co. in four monthly installments commencing March 15, 1999 and ending
June 15, 1999.
On November 24, 1998, pursuant to its Sales Agreement entered into in
September 1998 by and between Breaking Waves and Play Co., Breaking Waves
purchased 1.4 million unregistered shares of Play Co.'s common stock in a
private transaction. As a result of this stock purchase, Breaking Waves acquired
approximately 25.4% of the total issued and outstanding shares of Play Co.
common stock. As consideration for the stock, Breaking Waves remitted $504,000,
which represented an approximate price of $0.36 per share: $300,000 of the
consideration was remitted in cash, and the remaining $204,000 was provided in
the form of merchandise, primarily girls' swimsuits.
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