Pacel Corp (PCOR)

[timhyma]

With this burn rate, and $77K banked, how long to you think?
Net increase (decrease) in cash and cash equivalents (605,146)

Lease Commitments. In April 2003, in connection with its acquisition of Asmara, the Company became party to a real estate lease for office space located in Charlotte, North Carolina. The lessor for this property is W. Revel Bellamy, the former President and CEO of the Company. The lease expires on December 31, 2004 and requires monthly lease payments of $5,000. The Company made payments totaling $10,000 during the quarter ended March 31, 2004.

The Company recorded a liability to David Calkins in the amount of $199,141 and $251,583 at March 31, 2004 and December 31, 2003 respectively, for accrued payroll and loans

Officer Loans. In conjunction with its acquisition of Asmara, the Company issued a non-interest bearing note payable to the shareholder of Asmara, Inc. in the amount of $431,530, payable over a two year period and executed employment contracts with W. Revel Bellamy, the principal officer and sole shareholder of Asmara and former President and CEO of the Company. The balance of the note at March 31, 2004 was $113,840. In addition, the Company provided a letter agreement to Mr. Bellamy to provide payment for certain personal liabilities retained by Mr. Bellamy in conjunction with the acquisition. In 2003, the Company recorded $813,351 as a note payable to Mr. Bellamy. The balance of the notes at March 31, 2004 was $927,191.