September 20, 2004 March 31, 2004
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15% Unsecured Promissory Note $ 750,000 $ 750,000
12% Convertible Subordinated
Promissory Note 1,000,000
Accrued interest on notes 196,875 140,625
Less amortization of warrants (174,139) --
Less current portion (1,772,736) (123,405)
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Long term $ -- $ 767,220
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15% Unsecured Promissory Note On December 11, 2002, the Company issued a 15% Unsecured Promissory Note ("15% Unsecured Note") for gross cash proceeds of $750,000 to an individual. The 15% Unsecured Note, under the original term, was scheduled to mature on February 11, 2004 and payable $50,000 each month, with a final payment of $35,801 on February 11, 2004. The Company entered into a forbearance agreement with the investor through and including December 31, 2002. On December 30, 2002, the Company issued 133,223 shares of Common Stock in consideration for all accrued and unpaid interest of $196,875. On December 23, 2002, the holder of the 15% Unsecured Note agreed to (i) extend the maturity date of the 15% Unsecured Note from February 11, 2004 to May 31, 2005; (ii) reduce the monthly payments from $50,000 to $7,500 through December 31, 2003, representing the monthly interest on the 15% Unsecured Note and (iii) $50,000 payments each month, beginning January 31, 2004. On January 14, 2004, the holder of the 15% Unsecured Note agreed to postpone principal and interest payments on the note until December 31, 2004.
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I'm green at this but it looks like the holder of the Unsecured 15% note agreed to postpone interest and principal payments till the end of the year..12/31/04.
EDIG hasn't paid him a dime this year?
He also extended the maturity of this note till May 31st, 2005.
So what does that mean? They have to pay the whole thing off by May 2005? or get another extension?...with interest of course.
They better have sold a bunch of digiplayers before that date and collected revenue.
My thoughts are they and the investor are confident enough to extend the deadline for a good reason....sales.
thoughts?
AI
