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Technology Stocks : Enterprise Informatics -- Ignore unavailable to you. Want to Upgrade?

To: jackhach who wrote (2487)	5/21/1998 11:58:00 AM
From: Steven V	Respond to of 13797

Q: Wonder if we'll be delisted? A: >> On March 11, 1998, as a result of the Company's announcement of the likely restatement of its results of operations for 1996 and the nine months ended September 30, 1997, The Nasdaq Stock Market suspended trading in the Company's common stock. In addition, Nasdaq has commenced proceedings for the delisting of the Company's common stock. If the Company's common stock is delisted by Nasdaq, the Company would likely seek to commence trading on another over-the-counter market. However, further trading in the Company's common stock and the degree of liquidity provided to current shareholders through such trading cannot be assured.<< Q: Wonder if we'll remain afloat? Or if current customers have bailed as expected? A: >>In addition, the Company's public announcement in March 1998 of the pending restatement of its financial statements, delays in reporting operating results for the year ended December 31, 1997 while the restatement was being compiled, threatened de-listing of the Company's Common Stock from the Nasdaq National Market as a result of the Company's failure to satisfy its public reporting obligations, corporate actions to restructure operations and reduce operating expenses, and customer uncertainty regarding the Company's financial condition are likely to have a material adverse effect on the Company's ability to sell its products in the future against competition.<< Q: Wonder if we'll be diluted? A: >> the Company intends to investigate raising additional cash through a debt or equity offering.<<...>>Failure to obtain additional financing, if and when needed, could have a material adverse affect on the Company's business, results of operations, and financial condition.<< Q: Poor Jay resigned. Wonder if he has enough to get by or if he's visiting the unemployment lines? A: >> In April 1998, the Company and the then Chief Executive Officer (the "Former CEO") entered into a separation agreement whereby the Former CEO resigned. Under the agreement, the Former CEO will be paid $215,000, plus benefits, over a one year period, in exchange for consulting services.<< Q: Well, I wonder about the other officers. After all, after ruining my investment, I hope their investments weren't ruined to. I mean, really, maybe we could all kick in a little more loss out of our shares and give these guys a little extra in their pockets for a job well done. A: >>In October 1996, the Company loaned (i) Roger H. Erickson, then Vice President, Operations, $92,812 and (ii) John W. Low, Chief Financial Officer and Secretary, $61,875. Each loan is at a simple interest rate of 9.25% with a maturity date of March 31, 1997. The loans were made to Messrs. Erickson and Low in connection with their exercise of stock options that were due to expire. On May 15, 1998, the Company agreed, as additional compensation to Messrs. Erickson and Low, to forgive the promissory notes of such officers. The outstanding principal and interest payable by Messrs. Erickson and Low under such notes were $106,196 and $70,797, respectively, as of May 15, 1998.<<