On June 3 and June 10, 2008, the Company received aggregate funding of $1,950,000 under the $3,500,000 Loan (see Note 14), bringing the total amount borrowed under this loan to the full $3,500,000. There is no additional borrowing capacity under this loan.
On September 12, 2008, the Company entered into a definitive securities purchase agreement with The Quercus Trust (“Quercus”). The securities purchase agreement ("SPA") provides for the sale to Quercus of warrants to acquire 235,000,000 shares of the Company’s common stock at a purchase price of $0.02 per warrant for total cash proceeds of $4.2 million, the satisfaction of $300,000 of accrued and outstanding interest on the Series B Convertible Notes held by Quercus and a $200,000 restructuring fee for the amendment of certain terms of the $3.5 million secured loan previously extended to the Company by Quercus. The warrants have a three year term with an initial exercise price of $0.067 per share (see Note 19).
On September 12, 2008, the Company entered into a forbearance and repayment agreement with the Company’s largest supplier. The forbearance agreement provided for a payment plan for approximately $3 million of payables due as of the agreement date from the Company with interest at 12% per annum. Pursuant to the forbearance agreement, the Company paid $1 million on September 19, 2008, and further agreed to pay $500,000 on or prior to January 15, 2009, and six payments of $297,558 on a monthly basis beginning on March 15, 2009, until the entire amount is paid in full (see Note 13).
The Company believes that its current cash will only provide sufficient working capital to fund its operations through March 2009. Its current cash requirements are significant due to existing payment obligations and the need to bring in additional personnel to support sales efforts; research and development expenses; and other operational expenses. The Company expects to continue to incur significant negative cash flow from operations during fiscal 2009. Thus, additional equity or debt financing will need to be raised in the near future to implement the Company’s business strategy.
http://sec.gov/cgi-bin/browse-edgar?company=&CIK=0001176193&action=getcompany
On September 12, 2008, the Company entered into a definitive securities purchase agreement with The Quercus Trust (“Quercus”). The securities purchase agreement ("SPA") provides for the sale to Quercus of warrants to acquire 235,000,000 shares of the Company’s common stock at a purchase price of $0.02 per warrant for total cash proceeds of $4.2 million, the satisfaction of $300,000 of accrued and outstanding interest on the Series B Convertible Notes held by Quercus and a $200,000 restructuring fee for the amendment of certain terms of the $3.5 million secured loan previously extended to the Company by Quercus. The warrants have a three year term with an initial exercise price of $0.067 per share (see Note 19).
On September 12, 2008, the Company entered into a forbearance and repayment agreement with the Company’s largest supplier. The forbearance agreement provided for a payment plan for approximately $3 million of payables due as of the agreement date from the Company with interest at 12% per annum. Pursuant to the forbearance agreement, the Company paid $1 million on September 19, 2008, and further agreed to pay $500,000 on or prior to January 15, 2009, and six payments of $297,558 on a monthly basis beginning on March 15, 2009, until the entire amount is paid in full (see Note 13).
The Company believes that its current cash will only provide sufficient working capital to fund its operations through March 2009. Its current cash requirements are significant due to existing payment obligations and the need to bring in additional personnel to support sales efforts; research and development expenses; and other operational expenses. The Company expects to continue to incur significant negative cash flow from operations during fiscal 2009. Thus, additional equity or debt financing will need to be raised in the near future to implement the Company’s business strategy.
http://sec.gov/cgi-bin/browse-edgar?company=&CIK=0001176193&action=getcompany
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