From RB
Explanation of Q from Tom.
Most of the loss was noncash/nonrecurring. Nexus, as anticipated, had a slow quarter as business slows down in winter with less security installs. We have a lot of good news coming. The derivative acct treatment is new and not very relevant. We are seeking to eliminate such treatment going forward….When Nexus starts reporting its profits and we get rid of the derivative, results will look much better tom
Nonrecurring/Noncash Notes
Derivatives $622,000 A new acct rule requires that we book our conv debt as a derivative. We could show a gain next quarter. Cornell has indicated that they would work with us to restructure convertibles to avoid this accounting treatment going forward
Comp (options) $140,000
Deal costs (Nexus) $160,000 Nexus- chose to expense now
Excess PP over assets $125,000 Nexus transaction- one time
Subtotal $1,047,000
Operations
Nexus $388,000 First quarter was slow/seasonality…Still on track to do $9m + for 2006
HSCC $310,000 Corporate- legal approx $120,000
Subtotal $698,000
TOTAL $1,745,000
Please call if you have any questions. We will seek to restructure the derivative treatment and achieve profitability for Nexus in Q2 tom
News 
Market Data 
Discover 
