At December 31, 1998, the Company had a $2.0 million line of credit with Chase Bank, Texas NA, expiring in April 1999. At December 31, 1998, there were no amounts outstanding on this line of credit. Borrowings under this line of credit bear interest at prime minus 1.5% and were guaranteed by BFGoodrich, the then controlling shareholder. Due to the change in control of the Company that occurred on February 12, 1999, this credit line is no longer available to DTM.
On February 12, 1999, the Company received a commitment from a bank to replace the line of credit with a temporary spot factoring line while it negotiates a permanent line of credit.
At December 31, 1998, the Company's only indebtedness was its advance from BFGoodrich in the amount of $909,000. In connection with the February 12, 1999 change in control, Proactive, the new shareholder, informed the Company that it had acquired the Company's liability to BFGoodrich in the amount of approximately $909,000. This liability is currently non-interest bearing and is due on demand. Proactive has informed the Company that it intends to require formalization of this indebtedness on commercial terms.
The Company believes that it has the financial resources needed to meet business requirements, including capital expenditures, working capital requirements, the debt obligations outstanding and operating lease commitments for facilities and equipment through December 31, 1999. However, there can be no assurance that this will be the case.
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