INTERNET--(esecurities.W)--May 18, 1999 - TMSR Files 10-Q ending March 31.
LIQUIDITY AND CAPITAL RESOURCES
"...The Company has financed its activities to date with a combination of cash flow from operations, borrowed funds, and proceeds from the sale of equity securities.
In late 1998, the Company entered into a demand discretionary $16,000,000 line of credit. The Company has not utilized the line as expected, and there have been operational issues between the lender and the Company. The Company and the lender have agreed that the Company will replace the lender by July 31, 1999. Simultaneously, the Company and the lender have agreed to reduce the facility to $2,500,000 and reset advance rates to 45% of eligible receivables and 30% of eligible inventory (subject to an inventory sub-limit of $1,500,000). Borrowings are payable on demand and bear interest at a fluctuating rate equal to the prime rate plus 4%. The line of credit is collateralized by substantially all of the Company's assets. The line of credit is a "demand discretionary" credit facility and does not require the Company to maintain working capital and debt-to-equity ratios. At March 31, 1999, $3,089,000 was outstanding under the facility and the Company was in compliance with all loan covenants..."
SOURCE:
freeedgar.com
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