Sskillz....just checked CGNW's 10k for an issue that you raised earlier:
"Apparently, the reason why the pro-forma # were so much lower, because there looks to be a one-time charge in the #'s of 494,149, due to loans (termination of agreement), not being repaid. "
Unfortunately, it looks like that loan was written off in 2004. Here's the full passage from the K:
"On April 1, 2003, we and certain principals of Intandem Communications Corp. (Intandem) entered into an agreement (Funding Agreement) pursuant to which we agreed to provide up to $448,093 in a series of loans to Intandem. Effective February 1, 2004, by mutual agreement of the principals of Intandem and us, the Funding Agreement was terminated and a separate agreement, the Termination of Funding Agreement and Settlement Agreement (Termination Agreement), was entered into.
The Termination Agreement provided that we would convert the notes receivable of $387,399 into 100% of the outstanding stock of Intandem in exchange for payments of $10,000 per month for eight months, assumption of up to approximately $45,000 in liabilities, cancellation of all employment contracts of the Intandem principals and cancellation of options to purchase our common stock. As of the date of the Termination Agreement, $414,149 had been funded under the Funding Agreement. Due to questions of recoverability of this amount and the remaining commitments under the Termination Agreement, a provision of $494,149 has been taken in the statement of operations for the period ended June 30, 2004. This provision represents the $414,149 funding through the date of the Termination Agreement plus an estimate of remaining commitments under the Termination Agreement which approximated $80,000 at the time. Approximately $60,000 remained in accrued liabilities as of June 30, 2004, related to estimated future expenses relating to the Termination Agreement. During the year ended June 30, 2005, this accrual was paid.
AI
