Delaware
|
58-1972600
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
|
Identification
Number)
|
|
||||
PART
I
|
FINANCIAL
INFORMATION
|
Page
|
||
Item
1.
|
Financial
Statements
|
|||
Condensed
Consolidated Balance Sheets - June 30, 2010 (unaudited) and 2009
(Predecessor) and December 31, 2009
|
3
|
|||
Condensed
Consolidated Statements of Operations (unaudited) - Three months ended
June 30, 2010 and 2009, two months ended May 28, 2010 (Predecessor) and
three months ended June 30, 2009 (Predecessor)
|
4
|
|||
Condensed
Consolidated Statements of Operations (unaudited) - Six months ended June
30, 2010 and 2009, five months ended May 28, 2010 (Predecessor) and six
months ended June 30, 2009 (Predecessor)
|
5
|
|||
Condensed
Consolidated Statements of Cash Flows (unaudited) -Six months ended June
30, 2010 and 2009, five months ended May 28, 2010 (Predecessor) and six
months ended June 30, 2009 (Predecessor)
|
6
|
|||
Notes
to Unaudited Condensed Consolidated Financial Statements - June 30,
2010
|
7
|
|||
Item
2.
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
|
29
|
||
Item
3.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
38
|
||
Item
4.
|
Procedures
and Controls
|
39
|
||
PART
II
|
OTHER
INFORMATION
|
|||
Item
1.
|
Legal
Proceedings
|
40
|
||
Item
1A.
|
Risk
Factors
|
40
|
||
Item
5.
|
Other
Information
|
51
|
||
Item
6.
|
Exhibits
|
53
|
||
SIGNATURE
PAGE
|
55
|
|||
EXHIBIT
INDEX
|
56
|
Predecessor
|
||||||||||||
Company
(Note 1)
|
||||||||||||
June 30, 2010
|
December 31, 2009
|
June 30, 2009
|
||||||||||
(Unaudited)
|
||||||||||||
Assets
|
||||||||||||
Current
Assets
|
||||||||||||
Cash
and cash equivalents
|
$ | 3,292 | $ | 58,363 | $ | 1,271 | ||||||
Marketable
securities
|
- | 24,059 | - | |||||||||
Accounts
receivable, less allowance for doubtful accounts of $499, $0, and $474,
respectively
|
13,874 | - | 9,727 | |||||||||
Inventories
|
31,327 | - | 25,580 | |||||||||
Prepaid
and other current assets
|
3,965 | 673 | 646 | |||||||||
Deferred
income taxes
|
- | - | 1,810 | |||||||||
Total
Current Assets
|
52,458 | 83,095 | 39,034 | |||||||||
Non-Current
Assets
|
||||||||||||
Property
and equipment, net
|
14,250 | 696 | 9,781 | |||||||||
Definite
lived intangible assets, net
|
18,105 | - | 32 | |||||||||
Indefinite
lived intangible assets
|
32,650 | - | 897 | |||||||||
Goodwill
|
35,900 | - | 1,160 | |||||||||
Deferred
income taxes
|
51,829 | - | - | |||||||||
Other
long-term assets
|
325 | - | - | |||||||||
Total
Non-Current Assets
|
153,059 | 696 | 11,870 | |||||||||
TOTAL
ASSETS
|
$ | 205,517 | $ | 83,791 | $ | 50,904 | ||||||
Liabilities
and Stockholders' Equity
|
||||||||||||
Current
Liabilities
|
||||||||||||
Accounts
payable and accrued liabilities
|
$ | 13,254 | $ | 1,713 | $ | 9,884 | ||||||
Income
tax payable
|
957 | - | - | |||||||||
Deferred
income taxes
|
1,174 | - | - | |||||||||
Current
portion of debt
|
196 | - | 2,992 | |||||||||
Total
Current Liabilities
|
15,581 | 1,713 | 12,876 | |||||||||
Non-Current
Liabilities
|
||||||||||||
Long-term
debt
|
23,371 | - | 13,398 | |||||||||
Other
long-term liabilities
|
1,022 | - | 797 | |||||||||
Deferred
income taxes
|
1,795 | - | 601 | |||||||||
Deferred
rent
|
- | 446 | - | |||||||||
TOTAL
LIABILITIES
|
41,769 | 2,159 | 27,672 | |||||||||
Stockholders'
Equity
|
||||||||||||
Preferred
stock, $.0001 par value; 5,000,000 shares authorized; none
issued
|
||||||||||||
Common
stock, $.0001 par value; 100,000,000 shares authorized; 21,732,234 shares
issued and 21,657,234 outstanding in 2010
|
2 | 2 | - | |||||||||
Common
stock, $0.01 par value; 200,000 shares issued at June 30, 2009 (including
11,128 shares held in treasury at June 30, 2009)
|
- | - | 1 | |||||||||
Additional
paid in capital
|
397,660 | 370,994 | 2,722 | |||||||||
(Accumulated
deficit) retained earnings
|
(234,430 | ) | (289,368 | ) | 22,499 | |||||||
Treasury
stock, at cost
|
(2 | ) | (2 | ) | (2,678 | ) | ||||||
Accumulated
other comprehensive income
|
518 | 6 | 688 | |||||||||
TOTAL
STOCKHOLDERS' EQUITY
|
163,748 | 81,632 | 23,232 | |||||||||
TOTAL
LIABILITIES AND EQUITY
|
$ | 205,517 | $ | 83,791 | $ | 50,904 |
THREE
MONTHS ENDED
|
PREDECESSOR
COMPANY (NOTE 1)
|
|||||||||||||||
TWO
MONTHS
|
THREE
MONTHS
|
|||||||||||||||
ENDED
|
ENDED
|
|||||||||||||||
June 30, 2010
|
June 30, 2009
|
May 28, 2010
|
June 30, 2009
|
|||||||||||||
Revenue
|
||||||||||||||||
Domestic
sales
|
$ | 4,036 | $ | - | $ | 5,932 | $ | 7,815 | ||||||||
International
sales
|
3,708 | - | 5,354 | 7,404 | ||||||||||||
Total
revenue
|
7,744 | - | 11,286 | 15,219 | ||||||||||||
Cost
of goods sold
|
5,936 | - | 6,628 | 9,996 | ||||||||||||
Gross
profit
|
1,808 | - | 4,658 | 5,223 | ||||||||||||
Operating
expenses
|
||||||||||||||||
Selling,
general and administrative
|
7,331 | 1,118 | 4,823 | 5,825 | ||||||||||||
Restructuring
charge
|
1,377 | - | - | - | ||||||||||||
Merger
and integration
|
780 | - | - | - | ||||||||||||
Transaction
costs
|
3,253 | - | - | - | ||||||||||||
Total
operating expenses
|
12,741 | 1,118 | 4,823 | 5,825 | ||||||||||||
Operating
loss
|
(10,933 | ) | (1,118 | ) | (165 | ) | (602 | ) | ||||||||
Other
income (expense)
|
||||||||||||||||
Interest
expense
|
(336 | ) | - | (59 | ) | (164 | ) | |||||||||
Interest
income
|
17 | 197 | 10 | - | ||||||||||||
Other,
net
|
112 | - | 1,511 | 136 | ||||||||||||
Total
other income (expense), net
|
(207 | ) | 197 | 1,462 | (28 | ) | ||||||||||
Income
(loss) before income tax
|
(11,140 | ) | (921 | ) | 1,297 | (630 | ) | |||||||||
Income
tax (benefit) provision
|
(68,433 | ) | - | 382 | (171 | ) | ||||||||||
Net
income (loss)
|
$ | 57,293 | $ | (921 | ) | $ | 915 | $ | (459 | ) | ||||||
Earnings
(loss) per share attributable to stockholders:
|
||||||||||||||||
Basic
earnings (loss) per share
|
$ | 3.08 | $ | (0.05 | ) | |||||||||||
Diluted
earnings (loss) per share
|
$ | 3.03 | $ | (0.05 | ) | |||||||||||
Weighted
average common shares outstanding for earnings per share:
|
||||||||||||||||
Basic
|
18,625 | 16,867 | ||||||||||||||
Diluted
|
18,927 | 16,867 |
SIX
MONTHS ENDED
|
PREDECESSOR
COMPANY (NOTE 1)
|
|||||||||||||||
FIVE
MONTHS
|
SIX
MONTHS
|
|||||||||||||||
ENDED
|
ENDED
|
|||||||||||||||
June 30, 2010
|
June 30, 2009
|
May 28, 2010
|
June 30, 2009
|
|||||||||||||
Revenue
|
||||||||||||||||
Domestic
sales
|
$ | 4,036 | $ | - | $ | 15,751 | $ | 16,338 | ||||||||
International
sales
|
3,708 | - | 19,192 | 19,669 | ||||||||||||
Total
revenue
|
7,744 | - | 34,943 | 36,007 | ||||||||||||
Cost
of goods sold
|
5,936 | - | 21,165 | 23,131 | ||||||||||||
Gross
profit
|
1,808 | - | 13,778 | 12,876 | ||||||||||||
Operating
expenses
|
||||||||||||||||
Selling,
general and administrative
|
8,199 | 2,130 | 12,138 | 12,450 | ||||||||||||
Restructuring
charge
|
1,377 | - | - | - | ||||||||||||
Merger
and integration
|
780 | - | - | - | ||||||||||||
Transaction
costs
|
4,762 | - | - | - | ||||||||||||
Total
operating expenses
|
15,118 | 2,130 | 12,138 | 12,450 | ||||||||||||
Operating
(loss) income
|
(13,310 | ) | (2,130 | ) | 1,640 | 426 | ||||||||||
Other
income (expense)
|
||||||||||||||||
Interest
expense
|
(336 | ) | - | (165 | ) | (626 | ) | |||||||||
Interest
income
|
39 | 608 | 3 | - | ||||||||||||
Other,
net
|
112 | - | 1,803 | 225 | ||||||||||||
Total
other income (expense), net
|
(185 | ) | 608 | 1,641 | (401 | ) | ||||||||||
Income
(loss) before income tax
|
(13,495 | ) | (1,522 | ) | 3,281 | 25 | ||||||||||
Income
tax (benefit) provision
|
(68,433 | ) | - | 966 | 9 | |||||||||||
Net
income (loss)
|
$ | 54,938 | $ | (1,522 | ) | $ | 2,315 | $ | 16 | |||||||
Earnings
(loss) per share attributable to stockholders:
|
||||||||||||||||
Basic
earnings (loss) per share
|
$ | 3.09 | $ | (0.09 | ) | |||||||||||
Diluted
earnings (loss) per share
|
$ | 3.05 | $ | (0.09 | ) | |||||||||||
Weighted
average common shares outstanding for earnings per share:
|
||||||||||||||||
Basic
|
17,751 | 16,867 | ||||||||||||||
Diluted
|
18,025 | 16,867 |
SIX
MONTHS ENDED
|
PREDECESSOR
COMPANY (NOTE 1)
|
|||||||||||||||
FIVE
MONTHS
|
SIX
MONTHS
|
|||||||||||||||
ENDED
|
ENDED
|
|||||||||||||||
June
30, 2010
|
June
30, 2009
|
May
28, 2010
|
June
30, 2009
|
|||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||
Net
income (loss)
|
$ | 54,938 | $ | (1,522 | ) | $ | 2,315 | $ | 16 | |||||||
Adjustments
to reconcile net income (loss) to net cash (used in) provided by operating
activities:
|
||||||||||||||||
Depreciation
on property and equipment
|
353 | 177 | 865 | 938 | ||||||||||||
Amortization
of intangible assets
|
111 | - | 2 | 2 | ||||||||||||
Accretion
of notes payable
|
138 | - | 17 | - | ||||||||||||
Loss
on disposition of assets
|
596 | - | 1 | 3 | ||||||||||||
Amortization
of equity and stock based compensation plans
|
3,700 | 343 | 375 | 24 | ||||||||||||
Amortization
of discount on securities, net
|
- | (436 | ) | - | - | |||||||||||
Tax
benefit related to stock issued as deferred compensation
|
- | - | - | 53 | ||||||||||||
Treasury
stock issued as director compensation
|
- | - | - | 13 | ||||||||||||
Deferred
income taxes
|
(68,417 | ) | - | (166 | ) | 454 | ||||||||||
Changes
in operating assets and liablities, net of acquisitions:
|
||||||||||||||||
Decrease
in accounts receivable
|
1,161 | - | 4,063 | 4,864 | ||||||||||||
Increase
in inventory
|
(1,261 | ) | - | (343 | ) | (2,000 | ) | |||||||||
(Increase)/decrease
in interest receivable, prepaid and other current
assets
|
(242 | ) | (69 | ) | (1,387 | ) | 1,977 | |||||||||
Increase/(decrease)
in accounts payable and accrued liabilities
|
(34 | ) | (258 | ) | 1,670 | (1,019 | ) | |||||||||
(Decrease)/increase
in deferred rent
|
(446 | ) | 11 | - | - | |||||||||||
Other
|
(5 | ) | 1 | - | (519 | ) | ||||||||||
NET
CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES
|
(9,408 | ) | (1,753 | ) | 7,412 | 4,806 | ||||||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||
Purchase
of marketable securities
|
(22,065 | ) | (18,605 | ) | - | - | ||||||||||
Proceeds
from maturity and sales of marketable securities
|
46,124 | 66,698 | - | - | ||||||||||||
Purchase
of businesses, net of cash received
|
(82,794 | ) | - | - | - | |||||||||||
Purchase
of intangible assets
|
- | - | (10 | ) | - | |||||||||||
Proceeds
from disposition of property and equipment
|
- | - | 10 | 11 | ||||||||||||
Purchase
of property and equipment
|
(94 | ) | (6 | ) | (788 | ) | (2,238 | ) | ||||||||
NET
CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES
|
(58,829 | ) | 48,087 | (788 | ) | (2,227 | ) | |||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||
Repayment
of long-term debt, revolving lines of credit and capital
leases
|
(4,216 | ) | - | (6,261 | ) | (3,333 | ) | |||||||||
Proceeds
from long-term debt, revolving lines of credit and capital
leases
|
14,094 | - | - | 363 | ||||||||||||
Purchase
of treasury stock
|
- | - | - | (685 | ) | |||||||||||
Proceeds
from sales of treasury stock and exercise of stock options
|
352 | - | - | 577 | ||||||||||||
Proceeds
from the sale of stock
|
2,903 | - | - | - | ||||||||||||
Dividends
paid
|
- | - | - | (225 | ) | |||||||||||
NET
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
13,133 | - | (6,261 | ) | (3,303 | ) | ||||||||||
Effect
of foreign exchange rates on cash
|
33 | - | (60 | ) | (131 | ) | ||||||||||
CHANGE
IN CASH AND CASH EQUIVALENTS
|
(55,071 | ) | 46,334 | 303 | (855 | ) | ||||||||||
CASH
AND CASH EQUIVALENTS, beginning of period
|
58,363 | 19,342 | 1,317 | 2,126 | ||||||||||||
CASH
AND CASH EQUIVALENTS, end of period
|
$ | 3,292 | $ | 65,676 | $ | 1,620 | $ | 1,271 | ||||||||
SUPPLEMENTAL
DISCLOSURE:
|
||||||||||||||||
Cash
paid for income taxes
|
$ | 436 | $ | - | $ | 596 | $ | 859 | ||||||||
Cash
paid for interest
|
$ | - | $ | - | $ | 183 | $ | 614 | ||||||||
Note
payable to acquire intangible asset
|
$ | - | $ | - | $ | - | $ | 897 | ||||||||
Stock
issued for acquisition
|
$ | 19,465 | $ | - | $ | - | $ | - | ||||||||
Notes
and deferred compensation issued in acquisition
|
$ | 13,436 | $ | - | $ | - | $ | - |
|
·
|
Create
a unique platform to build a large, global and diversified outdoor
equipment and lifestyle company is strengthened from both organic and
acquisition growth;
|
|
·
|
Access
to ample liquidity to fuel brand penetration and
expansion;
|
|
·
|
Utilization
of a significant portion of its deferred tax
asset;
|
|
·
|
Preservation
of an organization and culture with a strong foundation with greater
resources and opportunities;
|
|
·
|
Ability
to better utilize existing supply chain and distribution
channels;
|
|
·
|
Greater
combined global revenue balance;
and
|
|
·
|
Improved
efficiencies by combining certain operational
functions.
|
BDE
|
GMP
|
|||||||||||||||
Estimated
Fair
Value
|
Number
of
Shares
|
Estimated
Fair
Value
|
Estimated
Fair
Value
|
|||||||||||||
Cash
paid to BDE and GMP
|
$ | 85,675 | $ | 185 | $ | 85,860 | ||||||||||
Issuance
to GMP of shares of Clarus
|
- | 3,676 | 19,373 | 19,373 | ||||||||||||
Issuance
to GMP of 5% subordinated notes
|
- | - | 13,120 | 13,120 | ||||||||||||
Issuance
of additional shares of Clarus
|
- | 31 | 92 | 92 | ||||||||||||
Payment
of deferred compensation (5% notes)
|
- | - | 316 | 316 | ||||||||||||
Total
estimated purchase consideration
|
$ | 85,675 | 3,707 | $ | 33,086 | $ | 118,761 | |||||||||
Assets
Acquired and Liabilities Assumed
|
||||||||||||||||
Assets
|
||||||||||||||||
Cash
and cash equivalents
|
$ | 1,620 | $ | 1,446 | $ | 3,066 | ||||||||||
Accounts
receivable, net
|
11,558 | 3,053 | 14,611 | |||||||||||||
Inventories
|
25,340 | 4,390 | 29,730 | |||||||||||||
Prepaid
and other current assets
|
3,011 | 148 | 3,159 | |||||||||||||
Property
and equipment
|
13,687 | 693 | 14,380 | |||||||||||||
Amortizable
definite lived intangible assets
|
12,733 | 5,483 | 18,216 | |||||||||||||
Identifiable
indefinite lived intangible assets
|
19,600 | 13,050 | 32,650 | |||||||||||||
Goodwill
|
23,297 | 12,603 | 35,900 | |||||||||||||
Deferred
income taxes
|
513 | - | 513 | |||||||||||||
Other
long-term assets
|
- | 133 | 133 | |||||||||||||
Total
Assets
|
111,359 | 40,999 | 152,358 | |||||||||||||
Liabilities
|
||||||||||||||||
Accounts
payable and accrued liabilities
|
9,202 | 3,045 | 12,247 | |||||||||||||
Current
portion of debt
|
350 | - | 350 | |||||||||||||
Long-term
debt
|
245 | - | 245 | |||||||||||||
Other
long-term liabilities
|
685 | - | 685 | |||||||||||||
Deferred
income taxes
|
15,202 | 4,868 | 20,070 | |||||||||||||
Total
Liabilities
|
25,684 | 7,913 | 33,597 | |||||||||||||
Net
book value acquired
|
$ | 85,675 | $ | 33,086 | $ | 118,761 |
PRO FORMA
|
||||||||||||||||
THREE MONTHS ENDED
|
SIX MONTHS ENDED
|
|||||||||||||||
June 30, 2010
|
June 30, 2009
|
June 30, 2010
|
June 30, 2009
|
|||||||||||||
Revenues
|
$ | 23,735 | $ | 22,827 | $ | 56,848 | $ | 52,443 | ||||||||
Net
(loss)/income
|
$ | 57,851 | $ | (975 | ) | $ | 57,826 | $ | 195 | |||||||
Net
(loss)/income per share - basic
|
$ | 3.11 | $ | (0.06 | ) | $ | 3.26 | $ | 0.01 | |||||||
Net
(loss)/income per share - diluted
|
$ | 3.06 | $ | (0.06 | ) | $ | 3.21 | $ | 0.01 |
Predecessor
|
||||||||||||
Company
|
||||||||||||
June 30, 2010
|
December 31, 2009
|
June 30, 2009
|
||||||||||
Finished
goods
|
$ | 25,950 | $ | - | $ | 20,404 | ||||||
Work-in-process
|
567 | - | 465 | |||||||||
Raw
materials and supplies
|
4,810 | - | 4,711 | |||||||||
Total
Inventory
|
$ | 31,327 | $ | - | $ | 25,580 |
Predecessor
|
||||||||||||
Company
|
||||||||||||
June 30, 2010
|
December 31, 2009
|
June 30, 2009
|
||||||||||
Construction
in progress
|
$ | 1,382 | $ | - | $ | 725 | ||||||
Land
|
2,850 | - | 336 | |||||||||
Building
and improvements
|
2,685 | 1,894 | 4,279 | |||||||||
Furniture
and fixtures
|
1,415 | 453 | 2,177 | |||||||||
Computer
hardware and software
|
1,738 | 120 | 3,620 | |||||||||
Machinery
and equipment
|
4,463 | 144 | 8,662 | |||||||||
Total
Property & Equipment
|
$ | 14,533 | $ | 2,611 | $ | 19,799 | ||||||
Less
accumulated depreciation
|
(283 | ) | (1,915 | ) | (10,018 | ) | ||||||
Property
and equipment, net
|
$ | 14,250 | $ | 696 | $ | 9,781 |
June 30, 2010
|
|||||||||||||||
Accumulated
|
Weighted
Average
|
||||||||||||||
Gross
|
Amortization
|
Net
|
Useful Life
|
||||||||||||
Intangibles
subject to amortization
|
|||||||||||||||
Customer
relationships
|
$ | 16,376 | $ | (91 | ) | $ | 16,285 |
15.1
years
|
|||||||
Core
technologies
|
1,505 | (14 | ) | 1,491 |
9.3
years
|
||||||||||
Product
technologies
|
335 | (6 | ) | 329 |
4.6
years
|
||||||||||
Intangibles
not subject to amortization
|
|||||||||||||||
Tradenames
and trademarks
|
32,650 | - | 32,650 |
N/A
|
|||||||||||
Intangibles,
net
|
$ | 50,866 | $ | (111 | ) | $ | 50,755 | $ |
14.4 years
|
Predecessor
Company
|
|||||||||||||||
June 30, 2009
|
|||||||||||||||
Accumulated
|
Weighted
Average
|
||||||||||||||
Gross
|
Amortization
|
Net
|
Useful Life
|
||||||||||||
Intangibles
subject to amortization
|
|||||||||||||||
Product
technologies
|
$ | 68 | $ | (36 | ) | $ | 32 |
14.1
years
|
|||||||
Intangibles
not subject to amortization
|
|
||||||||||||||
Tradenames
and trademarks
|
897 | - | 897 |
N/A
|
|||||||||||
Intangibles,
net
|
$ | 965 | $ | (36 | ) | $ | 929 | $ |
14.1 years
|
Predecessor
|
||||||||||||
Company
|
||||||||||||
June 30, 2010
|
December 31, 2009
|
June 30, 2009
|
||||||||||
Revolving
credit facility (a)
|
$ | 9,894 | $ | - | $ | 12,669 | ||||||
5%
Senior Subordinated Notes due 2017 (b)
|
13,244 | - | - | |||||||||
Revolving
line of credit (c )
|
- | - | 2,763 | |||||||||
Note
payable to government agency (d)
|
- | - | 345 | |||||||||
Capital
leases (e)
|
429 | - | 613 | |||||||||
Total
|
23,567 | - | 16,390 | |||||||||
Less
current portion
|
(196 | ) | (2,992 | ) | ||||||||
Total
long term debt obligations
|
$ | 23,371 | $ | - | $ | 13,398 |
(a)
|
In
connection with the closing of the acquisition of BDE, the Company entered
into a loan agreement effective May 28, 2010 among Zions First National
Bank, a national banking association (“Lender”) and the Company and its
direct and indirect subsidiaries, BDE, Black Diamond Retail, Inc.
(“BD-Retail”), and Purchaser, as co-borrowers (the “Borrowers”) (the “Loan
Agreement”). Concurrently with the closing of the acquisition of BDE,
Gregory Mountain Products, LLC, as the surviving company of the Gregory
Merger, entered into an assumption agreement and became an additional
Borrower under the Loan Agreement.
|
(b)
|
In
connection with the Gregory Merger, $22,056 in subordinated notes were
issued. The notes have a seven year term, 5% stated interest rate payable
quarterly, and are prepayable at any time. Given the below market interest
rate for comparably secured notes and the relative illiquidity of the
notes, we have discounted it to $13,127 at date of
acquisition.
|
(c)
|
Unsecured
revolving line of credit with a bank with a maximum availability of
$3,685, interest at 2.0%. This revolving line of credit was paid off on
May 28, 2010.
|
(d)
|
Note
payable to a government agency which bears interest at 6.345%, requires
monthly installments of $5,409, and secured by real property and certain
equipment. This note was guaranteed by an executive officer and was paid
in full in December 2009.
|
(e)
|
Various
capital leases payable to banks: interest rates ranging from 4.63% to
7.75%; monthly installments ranging from $1 to $5; ending between October
2010 and April 2014; secured by certain
equipment.
|
2011
|
$ | - | ||
2012
|
- | |||
2013
|
9,894 | |||
2014
|
- | |||
2015
|
- | |||
Thereafter
|
13,244 | |||
$ | 23,138 |
2011
|
$ | 218 | ||
2012
|
151 | |||
2013
|
58 | |||
2014
|
39 | |||
2015
|
- | |||
Thereafter
|
- | |||
Total
Future minimum lease payments
|
466 | |||
Less
amount representing interest
|
(37 | ) | ||
Present
value of net minimum lease payments
|
429 | |||
Less
current portion
|
(196 | ) | ||
Long-term
capial lease obligations
|
$ | 233 |
2010
|
$ | 150 | ||
2011
|
150 | |||
2012
|
600 | |||