Financing activities during the year ended January 31, 1998 consisted of proceeds from the issuance of securities of $14.4 million, net proceeds from short-term debt of $3.8 million net of long-term and acquisition debt repayments of $4.4 million and repayment of liabilities due on cashless warrant exercises of $1.6 million. During the year ended January 31, 1997 the Company's financing activities included proceeds from the issuance of securities of $37.9 million net of preferred stock redemptions of $6.3 million and net repayments of long-term and short-term debt of $257,000.
During the year ended January 31, 1998 the Company completed several private placements of its common stock and convertible preferred stock receiving net proceeds of $14.4 million and issued 4,819,984 shares of the Company's common stock in these placements and in conversions of the preferred stock.
During the year ended January 31, 1997 the Company completed several private placements of its convertible preferred stock and convertible debentures receiving net proceeds of $37.9 million and has issued 6,732,593 shares of the Company's common stock in conversions of these securities during the two year ended January 31, 1998.
................................................................................January 31,
CURRENT ASSETS..........................................1998...........1997
Cash and equivalents....................................$...1,912.......$..4,055
Restricted cash (Notes B and D).......................2,159...........1,744
CURRENT LIABILITIES
Short-term debt (Note D).............................$ 14,905.........11,151
NET LOSS.....................................................$(16,034).......$(15,609)
BUILDERS WAREHOUSE ASSOCIATION, INC. -- In September 1996, the Company
acquired all of Builder's Warehouse Association, Inc.'s ("BW") subsidiaries and receivables, which constituted substantially all of its assets, and assumed the obligations under convertible securities then outstanding, through the issuance of .94 common shares for each currently outstanding share of BW; this transaction resulted in the issuance of 4,879,806 shares.
DPI had various notes payable to certain of its former shareholders which were due December 1997 with interest only payable monthly. The noteholder received 138,067 shares of the Company's common stock in satisfaction of principal and accrued interest of $369 during October and December 1997.
In September 1996 and January 1997, the Company issued 9,248 shares of
Series E preferred stock with a $.01 par value and a $1 liquidation value receiving net proceeds of $6,732. During the quarter ended April 1997 the Company issued an additional 8,053 shares of Series E preferred stock receiving net proceeds of $6,175 including $1,216 from the sale of an assigned call of previously outstanding Series C preferred stock. In connection with this placement a then director of the company received a finder's fee of $254.
The exercise price of warrants to acquire 782,888 common shares
were reduced to a range of $3.09 to $4.88 per share all of which were exercised during December 1997 and January 1998 receiving net proceeds of $1,707. In addition, the Company issued 437,630 common shares receiving net proceeds of $1,024 during October 1997.
N. OTHER RELATED PARTY TRANSACTIONS
FED, as a founding shareholder, holds 35% of the outstanding shares of Spectra Electronics Systems, Ltd. ("Spectra"), a private Hong Kong company, which sells point of sale equipment such as credit card readers for merchants in the Asian market. During the year ended January 31, 1998 and ten months ended January 31, 1997 FED made sales to Spectra of $935 and $624, respectively. At January 31, 1998 and 1997 the amount due FED from Spectra for sales in the ordinary course of the business was $449 and $416, respectively.
FED ACQUISITION -- In connection with the Company's acquisition of FED on March 31, 1996 BW issued 133,480 shares of its common stock valued at $809 in payment of costs incurred in connection with the transaction to two officers of RTC. (See Note A). |
