F - 3
PROJECTAVISION, INC
STATEMENTS OF STOCKHOLDERS' EQUITY
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SERIES A SERIES B SERIES C
PREFERRED STOCK PREFERRED STOCK PREFERRED STOCK
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
BALANCE, DECEMBER 31, 1994 100 $ 0 410,144 $4,101 0 $ 0
ISSUANCE OF COMMON STOCK
FOR PREFERRED STOCK DIVIDENDS
ISSUANCE OF COMMON STOCK
FOR PREFERRED STOCK (24,162) (242)
ISSUANCE OF COMMON STOCK
FOR PROFESSIONAL SERVICES.
NET LOSS
------- -- ------- ------ ----- --
BALANCE, DECEMBER 31, 1995 100 0 385,982 3,859 0 0
ISSUANCE OF COMMON STOCK
FOR PREFERRED STOCK DIVIDENDS
CONVERSION OF 8% DEBENTURES INTO
COMMON STOCK
ISSUANCE OF SERIES C PREFERRED STOCK 7,500 8
SERIES C PREFERRED STOCK PLACEMENT FEE
CASH DIVIDEND ON SERIES C PREFERRED STOCK
EXERCISE OF STOCK OPTIONS
AMORTIZATION OF DISCOUNT ON 8% DEBENTURES
AMORTIZATION OF DISCOUNT (DIVIDEND) ON SERIES C PREFERRED STOCK
ISSUANCE OF WARRANTS AND OPTIONS FOR SERVICES
NET LOSS
------- -- ------- ------ ----- --
BALANCE, DECEMBER 31, 1996 100 0 385,982 3,859 7,500 $8
CONVERSION OF SERIES B PREFERRED
STOCK INTO COMMON STOCK (34,724) (347)
SERIES C PREFERRED STOCK CONVERSION (7,500) (8)
ISSUANCE OF SERIES D PREFERRED STOCK
ISSUANCE OF SERIES E PREFERRED STOCK
AMORTIZATION OF DISCOUNT (DIVIDEND) ON SERIES C PREFERRED STOCK
AMORTIZATION OF DISCOUNT (DIVIDEND) ON SERIES D PREFERRED STOCK
AMORTIZATION OF DISCOUNT (DIVIDEND) ON SERIES E PREFERRED STOCK
ISSUANCE OF WARRANTS TO SERIES D PREFERRED STOCKHOLDERS
FINANCING COST FOR SERIES D PREFERRED STOCK
ISSUANCE OF WARRANTS TO SERIES E PREFERRED STOCKHOLDERS
ISSUANCE OF COMMON STOCK
FOR SERIES B PREFERRED STOCK DIVIDENDS
ISSUANCE OF COMMON STOCK FOR SERVICES
CONVERSION OF 8% DEBENTURES INTO
COMMON STOCK
NET LOSS
------- -- ------- ------ ----- --
BALANCE, DECEMBER 31, 1997 100 $0 351,258 $3,512 0 $0
======= == ======= ====== ===== ==
SERIES D SERIES E
PREFERRED STOCK PREFERRED STOCK COMMON STOCK
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
BALANCE, DECEMBER 31, 1994 0 $0 0 $0 12,228,803 $1,223
ISSUANCE OF COMMON STOCK
FOR PREFERRED STOCK DIVIDENDS 52,795 6
ISSUANCE OF COMMON STOCK
FOR PREFERRED STOCK 24,162 2
ISSUANCE OF COMMON STOCK
FOR PROFESSIONAL SERVICES. 83,030 8
NET LOSS
------ ---------- ----- ---------- ---------- ------
BALANCE, DECEMBER 31, 1995 0 0 0 0 12,388,790 1,239
ISSUANCE OF COMMON STOCK
FOR PREFERRED STOCK DIVIDENDS 37,666 4
CONVERSION OF 8% DEBENTURES INTO
COMMON STOCK 1,772,945 177
ISSUANCE OF SERIES C PREFERRED STOCK
SERIES C PREFERRED STOCK PLACEMENT FEE
CASH DIVIDEND ON SERIES C PREFERRED STOCK
EXERCISE OF STOCK OPTIONS 30,000 3
AMORTIZATION OF DISCOUNT ON 8% DEBENTURES
AMORTIZATION OF DISCOUNT (DIVIDEND) ON SERIES C PREFERRED STOCK
ISSUANCE OF WARRANTS AND OPTIONS FOR SERVICES
NET LOSS
------ ---------- ----- ---------- ---------- ------
BALANCE, DECEMBER 31, 1996 0 0 0 0 14,229,401 1,423
CONVERSION OF SERIES B PREFERRED
STOCK INTO COMMON STOCK 34,724 3
SERIES C PREFERRED STOCK CONVERSION 4,881,656 489
ISSUANCE OF SERIES D PREFERRED STOCK 51,000 5,100,000
ISSUANCE OF SERIES E PREFERRED STOCK 1,650 1,650,000
AMORTIZATION OF DISCOUNT (DIVIDEND) ON SERIES C PREFERRED STOCK
AMORTIZATION OF DISCOUNT (DIVIDEND) ON SERIES D PREFERRED STOCK
AMORTIZATION OF DISCOUNT (DIVIDEND) ON SERIES E PREFERRED STOCK
ISSUANCE OF WARRANTS TO SERIES D PREFERRED STOCKHOLDERS
FINANCING COST FOR SERIES D PREFERRED STOCK
ISSUANCE OF WARRANTS TO SERIES E PREFERRED STOCKHOLDERS
ISSUANCE OF COMMON STOCK
FOR SERIES B PREFERRED STOCK DIVIDENDS 66,740 6
ISSUANCE OF COMMON STOCK FOR SERVICES 50,000 5
CONVERSION OF 8% DEBENTURES INTO
COMMON STOCK 726,476 73
NET LOSS
------ ---------- ----- ---------- ---------- ------
BALANCE, DECEMBER 31, 1997 51,000 $5,100,000 1,650 $1,650,000 19,988,997 $1,999
====== ========== ===== ========== ========== ======
ADDITIONAL
PAID IN ACCUMULATED
CAPITAL DEFICIT TOTAL
BALANCE, DECEMBER 31, 1994 $23,623,739 $(14,015,013) $ 9,614,050
ISSUANCE OF COMMON STOCK
FOR PREFERRED STOCK DIVIDENDS 154,388 (154,393) 0
ISSUANCE OF COMMON STOCK
FOR PREFERRED STOCK 240 0
ISSUANCE OF COMMON STOCK
FOR PROFESSIONAL SERVICES. 540,284 540,292
NET LOSS (6,471,638) (6,471,638)
----------- ----------- ----------
BALANCE, DECEMBER 31, 1995 24,318,651 (20,641,044) 3,682,705
ISSUANCE OF COMMON STOCK
FOR PREFERRED STOCK DIVIDENDS 154,389 (154,393) 0
CONVERSION OF 8% DEBENTURES INTO
COMMON STOCK 3,020,298 3,020,475
ISSUANCE OF SERIES C PREFERRED STOCK 7,499,992 7,500,000
SERIES C PREFERRED STOCK PLACEMENT FEE (500,000) (500,000)
CASH DIVIDEND ON SERIES C PREFERRED STOCK (123,750) (123,750)
EXERCISE OF STOCK OPTIONS 24,372 24,375
AMORTIZATION OF DISCOUNT ON 8% DEBENTURES 3,333,333 3,333,333
AMORTIZATION OF DISCOUNT (DIVIDEND) ON SERIES C PREFERRED STOCK 2,357,188 (2,357,188) 0
ISSUANCE OF WARRANTS AND OPTIONS FOR SERVICES 385,800 385,800
NET LOSS (10,880,893) (10,880,893)
----------- ----------- ----------
BALANCE, DECEMBER 31, 1996 40,594,023 (34,157,268) 6,442,045
CONVERSION OF SERIES B PREFERRED
STOCK INTO COMMON STOCK 344 0
SERIES C PREFERRED STOCK CONVERSION (481) 0
ISSUANCE OF SERIES D PREFERRED STOCK 5,100,000
ISSUANCE OF SERIES E PREFERRED STOCK 1,650,000
AMORTIZATION OF DISCOUNT (DIVIDEND) ON SERIES C PREFERRED STOCK 478,248 (478,248) 0
AMORTIZATION OF DISCOUNT (DIVIDEND) ON SERIES D PREFERRED STOCK 1,700,000 (1,700,000) 0
AMORTIZATION OF DISCOUNT (DIVIDEND) ON SERIES E PREFERRED STOCK 550,000 (550,000) 0
ISSUANCE OF WARRANTS TO SERIES D PREFERRED STOCKHOLDERS 232,620 (232,620) 0
FINANCING COST FOR SERIES D PREFERRED STOCK (75,000) (75,000)
ISSUANCE OF WARRANTS TO SERIES E PREFERRED STOCKHOLDERS 48,900 (48,900) 0
ISSUANCE OF COMMON STOCK
FOR SERIES B PREFERRED STOCK DIVIDENDS 147,492 (147,498) 0
ISSUANCE OF COMMON STOCK FOR SERVICES 96,870 96,875
CONVERSION OF 8% DEBENTURES INTO
COMMON STOCK 762,890 762,963
NET LOSS (8,289,920) (8,289,920)
----------- ----------- ----------
BALANCE, DECEMBER 31, 1997 $44,535,906 (45,604,454) $5,686,963
=========== =========== ==========
See Notes to Financial Statements
F-4
PROJECTAVISION, INC
STATEMENTS OF CASH FLOWS
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Years Ended December 31,
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1995 1996 1997
OPERATING ACTIVITIES
Net loss $ (6,471,638) $(10,880,893) $ (8,289,920)
Adjustments to reconcile net loss to net cash used
in operating activities:
Depreciation and amortization 73,739 3,959,300 647,661
Issuance of common stock for services 540,292 -- 96,875
Allowance taken on investment in unconsolidated affiliate 2,129,252 -- --
Other noncash operating expenses -- -- 115,690
Provision for allowances on advances 125,017 (109,166) --
Equity in loss of unconsolidated affiliate 511,094 72,065 --
Asset and liability management
Changes in other operating assets (179,370) (597,659) 15,255
Changes in accounts receivable (377,608)
Changes in inventories (1,857,604)
Accounts payable and other liabilities 249,237 1,441,770 1,897,914
------------ ------------ ------------
Net cash used in operating activities (3,022,377) (6,114,583) (7,751,737)
------------ ------------ ------------
INVESTING ACTIVITIES
Capital expenditures (30,397) (4,322,105) (1,839,007)
Investment in and advances to unconsolidated affiliate (94,240) -- (150,000)
Interest accrued on loan to unconsolidated affiliate (67,314) -- --
Purchases and redemption of government securities 2,993,320 (3,437,386) 3,437,386
------------ ------------ ------------
Net cash (used in)/provided by investing activities 2,801,369 (7,759,491) 1,448,379
------------ ------------ ------------
FINANCING ACTIVITIES
Proceeds from notes payable -- 10,000,000 --
Private placement costs -- (500,000) --
Repayment of convertible debt -- (4,958,250) (100,000)
Issuance of preferred stock -- 7,500,000 6,750,000
Issuance Fees -- (500,000) (75,000)
Series C Preferred Stock Dividend -- (123,750) --
Proceeds from stock options excercised -- 24,375 --
------------ ------------ ------------
Net cash provided by financing activities 0 11,442,375 6,575,000
------------ ------------ ------------
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (221,008) (2,431,699) 271,642
CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR 3,712,990 3,491,982 1,060,283
------------ ------------ ------------
CASH AND CASH EQUIVALENTS-END OF YEAR $ 3,491,982 $ 1,060,283 $ 1,331,925
============ ============ ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest $ -- $ 352,049 $ 1,834
============ ============ ============
See notes to financial statements |
