I just came across ATYRs 10QSB posted 5/26/98 (filed LATE). Here's
what I thought was interesting, but I highly recommend looking at
the entire 10QSB posting for an excellent look at the status of ATYR:
sec.gov
- Salaries (including Consulting, G&A) seems rather high considering
the current financial situation and the limited number of employees.
- They only value the worth of the patents stated at $46k! (but
compared to the last years valuation, this is almost 2X)
- The "Goodwill and Technology" asset is valued at $1.4M. This is a
pretty hefty number to make the balance sheet balance.
- A/P is pretty high ($370k), and they're drawing on a line of credit
which is generating more debt. Plus, a note payable of over $1M
- Here are excerpts from the "NOTES" portion...
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NOTE 2- RELATED PARTY TRANSACTION
On August 19, 1997 the Company entered into Agreements of Settlement and
Mutual Release with two former officers and another employee of the Company.
The Company agreed to pay a total of $317,525 and 1,270,000 shares of the
Company's outstanding common stock were returned for cancellation. An
aggregate of $117,525 was paid to the parties on the date the agreements were
executed and the remaining $200,000 is being paid in twenty consecutive
monthly payments. At March 31, 1998 the remaining balance is $120,000.
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NOTE 5- SHORT-TERM DEBT FINANCING
The Company has received additional funds for use in its operations upon
issuing promissory notes with a maturity date of six months. Interest is
prepaid by issuing 5,000 shares of the Company's restricted common stock for
each $50,000 amount borrowed. The principal amount of the Note is payable on
the maturity date, subject to prepayment as set forth in the note. At the
election of the Company, it may satisfy the entire obligation for the payment
of the principal by issuance and delivery of one or more shares of Common
Stock of the Company at the rate of one share of Common Stock for every $1.00
of outstanding principal amount of the Note. The following data summarizes
amounts received.
Face Number of Value of
Date Amount Shares Issued Prepaid Maturity
Issued Of Notes For Interest Interest Date
- ------ -------- ------------- -------- --------
October 27, 1997 $ 150,000 15,000 $61,875 April 27, 1998
November 4, 1997 50,000 5,000 21,250 May 4, 1998
November 24, 1997 50,000 5,000 20,625 May 24, 1998
November 25, 1997 100,000 10,000 38,750 May 25, 1998
December 1, 1997 50,000 5,000 19,375 June 1, 1998
January 2, 1998 125,000 12,500 $39,063 July 2, 1998
January 5, 1998 100,000 10,000 30,000 July 5, 1998
January 6, 1998 50,000 5,000 13,438 July 6, 1998
January 7, 1998 50,000 5,000 13,750 July 7, 1998
January 8, 1998 25,000 2,500 7,031 July 8, 1998
January 12, 1998 75,000 7,500 20,625 July 12, 1998
January 21, 1998 75,000 7,500 20,156 July 21, 1998
February 4, 1998 25,000 2,500 6,391 August 4, 1998
March 4, 1998 25,000 2,500 9,687 Sept. 4, 1998
---------- ------- --------
Totals $1,000,000 100,000 $335,765
========== ======= ========
The $335,765 cost of this additional financing will be amortized over the
terms above.
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The Company has received additional funds for use in its operations upon
issuing promissory notes with a six month maturity date. Interest is prepaid
by issuing 5,000 shares of the Company's restricted common stock for each
$50,000 amount borrowed. The principal amount of the Note is payable on the
maturity date, subject to prepayment as set forth in the Note. At the
election of the Company, it may satisfy the entire obligation for the payment
of the principal by issuance and delivery of one or more shares of restricted
common stock of the Company at a rate of one share of common stock for every
$1.00 of outstanding principal amount of the Note. The following summarizes
the amounts received subsequent to March 31, 1998.
Face Number of Value of
Date Amount Shares Issued Prepaid Maturity
Issued Of Notes For Interest Interest Date
- ------ -------- ------------- -------- --------
May 8, 1998 $ 50,000 5,000 $ 12,188 Nov. 8, 1998
May 19, 1998 50,000 5,000 11,250 Nov. 19, 1998
---------- ------- --------
Totals $1,000,000 100,000 $ 23,438
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During the three months ended March 31, 1998, the Company had a net loss
from operations of $(664,440) or approximately $(0.20) per share. The Company
is currently operating at a loss of approximately $(125,000) per month and
expects operating expenses to continue at such rate until such time as the
Company's marketing efforts develop increased revenues from the sale of its
products. At March 31, 1998, the Company had current assets of $848,067, and
current liabilities of $1,491,1044, resulting in working capital deficit of
$643,037. The Company has limited working capital and limited internal
financial resources and the report of the Company's auditor for the Company's
fiscal year end at June 30, 1997, contained a going concern modification as to
the ability of the Company to continue.
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limited working capital and shipping delays have caused expected
production dates for shell elastomer bicycles tires to be moved into June
1998. The Company is producing a low density foam tire for the front deck of
riding lawn mowers and has developed for testing a shell elastomer rear tire
which the Company expects to be producing in commercial quantities during the
Summer 1998, in lieu of Spring 1998.
Until the Company begins to receive substantial proceeds from the sale of
its products to meet operational needs, the Company will be relying on the
proceeds from the issuance of the Notes or other debt or equity financing that
may be available to meet operating requirements for the balance of the fiscal
year ending June 30, 1998. However, there can be no assurance that additional
Notes will be sold or that any additional debt or equity financing will be
obtained by the Company or that if such financing is obtained, that it will be
sufficient to sustain the Company's operational requirements.
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THE END |
