Why are you touting Booktech? Do you have a position you need to sell?
The company is in default with very many of its lenders....a mountain of sorrow...
(Note that in our country wilfully deferring the declaration of bankruptcy is a criminal offense).
biz.yahoo.com
Since November 1, 2000, all senior officers have deferred their salaries in anticipation of our securing additional financing. As the new financing has not been secured, the deferred officers' salaries have been accrued as a liability in the accompanying condensed consolidated financial statements as of March 31, 2001 and December 31, 2000. On May 6, 2001, the Company resumed payment of the officers' salaries.
Our cash balance is not sufficient to fund the Company's operations. Accordingly, we are currently seeking additional sources of equity or debt financing to fund our operations. Until new financing can be secured on a more permanent basis, we will require interim financing. Through the date of this report, a stockholder advanced us $1,000,000.
On March 22, 2001, we entered into an equity line of credit with a private investor. Under the terms of this agreement, upon the effective registration of the Company's common stock, the investor will purchase up to an aggregate of $10 million of such common stock over the course of 36 months from the date of the agreement at a purchase price equal to 91% of the market price as defined therein. The amount of shares to be put to the investor by us is subject to certain average daily trading volumes for the Company's common stock in the U.S. financial markets. In connection with this agreement, we issued 250,000 shares of common stock for no consideration to an affiliate of the investor with a fair market value of $.85 per share on March 22, 2001. The Company recorded $212,500 in stock based compensation in the quarter ended March 31, 2001 related to this issuance.
On March 17, 2001, we factored with recourse the majority of our accounts receivable and have received $374,584 in cash to date. Fees for these services are expected to average 6% of amounts factored.
On March 15, 2001, the Company offered to issue 500,000 shares of its common stock to Dutchess Advisors, Ltd. ("Dutchess") as consideration for their advisory services in connection with the Company's current efforts to secure additional financing through a private placement. The shares would be issued pursuant to Regulation D under the Securities Act, as amended. Of the total shares that could be issued, 100,000 shares contain piggyback registration rights. At the date of this report the Company has rescinded the offer and no shares have been offered to Dutchess. An additional finder's fee may be paid in cash to Dutchess upon completion of a private placement transaction.
On February 13, 2001, we borrowed $100,000 from a shareholder and officer of the Company. The borrowing is unsecured and are due and payable on June 30, 2001 with interest at 8% per annum.
On February 8, 2001, we sold 40,000 shares of our common stock to an accredited investor for $20,000. The issuance was made pursuant to Section 4(2) of the Securities Act.
On January 19, 2001, we borrowed $40,000 from two of the Company's officers. These promissory notes are unsecured, carry interest at a rate of 5% per annum and are currently in default.
On January 10, 2001, we refinanced $454,627 of accounts payable due to Xerox under the services agreement with a promissory note as described in the notes to the accompanying condensed consolidated financial statements. The note is payable in monthly installments of $41,339, including interest at a rate of 16% per annum, beginning on February 15, 2001. The final payment will be due on January 10, 2002, unless the Company defaults under the terms of the note, in which case, the promissory note becomes fully due and payable. The Company has not made the required payments under the promissory note in 2001 and, accordingly, the Company is in default under the terms of the note.
On January 5, 2001, we borrowed $55,000 from two of the Company's officers. These promissory notes are unsecured and bear interest at a rate of 5% per annum and are currently in default. |
