x
|
QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the Quarterly Period Ended December 31, 2005
|
|
o
|
TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the transition period from ___________ to
___________
|
|
Commission
file number: 0-27556
|
Delaware
|
13-4082185
|
|
(State
or other jurisdiction of
incorporation
of organization)
|
(I.R.S.
Employer
Identification
Number)
|
|
244
Madison Avenue, PMB #358, New York, New York
|
10016
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
(212)
883-0083
|
||
(Issuer’s
telephone number, including area
code)
|
PART
I—FINANCIAL INFORMATION
|
||
ITEM
1.
|
FINANCIAL
STATEMENTS
|
|
Condensed
Consolidated Balance Sheets —
December
31, 2005 (Unaudited) and September 30, 2005
|
1
|
|
Condensed
Consolidated Statements of Operations (Unaudited) —
Three
Months Ended December 31, 2005 and 2004
|
3
|
|
Condensed
Consolidated Statement of Stockholders’ Deficiency (Unaudited) —
Three
Months Ended December 31, 2005
|
4
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited) —
Three
Months Ended December 31, 2005 and 2004
|
5
|
|
Notes
to Condensed Consolidated Financial Statements —
Three
Months Ended December 31, 2005 and 2004 (Unaudited)
|
6
|
|
ITEM
2.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
|
19
|
ITEM
3.
|
CONTROLS
AND PROCEDURES
|
26
|
PART
II—OTHER INFORMATION
|
||
ITEM
1.
|
LEGAL
PROCEEDINGS
|
33
|
ITEM
2.
|
UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
33
|
ITEM
3.
|
DEFAULTS UPON SENIOR SECURITIES |
33
|
ITEM
4.
|
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
33
|
ITEM
5.
|
OTHER INFORMATION |
33
|
ITEM
6.
|
EXHIBITS
|
33
|
SIGNATURES
|
34
|
December
31, 2005
|
September
30, 2005
|
||||||
(Unaudited)
|
|||||||
ASSETS
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
544,653
|
$
|
998,835
|
|||
Accounts
receivable, less allowance for doubtful accounts of $804,207
at
December
31, 2005 and $747,399 at September 30, 2005
|
15,455,842
|
14,668,539
|
|||||
Inventories
|
18,258,538
|
17,880,805
|
|||||
Prepaid
expenses and other current assets
|
2,236,484
|
2,167,382
|
|||||
Total
current assets
|
36,495,517
|
35,715,561
|
|||||
Property,
plant and equipment
|
6,630,012
|
6,630,012
|
|||||
Less
accumulated depreciation and amortization
|
(1,244,809
|
)
|
(1,062,267
|
)
|
|||
Property,
plant and equipment, net
|
5,385,203
|
5,567,745
|
|||||
Other
assets:
|
|||||||
Deferred
loan costs, net of amortization of $522,652 at
December
31, 2005 and $438,913 at September 30, 2005
|
339,174
|
422,913
|
|||||
Deposits
|
216,035
|
216,035
|
|||||
Total
other assets
|
555,209
|
638,948
|
|||||
Total
assets
|
$
|
42,435,929
|
$
|
41,922,254
|
December
31, 2005
|
September
30, 2005
|
||||||
(Unaudited)
|
|||||||
LIABILITIES
AND STOCKHOLDERS’ DEFICIENCY
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable
|
$
|
10,115,861
|
$
|
9,008,612
|
|||
Accrued
expenses
|
2,502,059
|
2,048,481
|
|||||
Accrued
interest payable:
|
|||||||
12%
subordinated promissory notes payable to related parties
|
1,297,479
|
1,085,753
|
|||||
Notes
payable to directors
|
---
|
50,000
|
|||||
Secured
line of credit
|
15,878,828
|
19,009,379
|
|||||
12%
subordinated promissory notes payable to related parties
|
7,000,000
|
---
|
|||||
Current
portion of equipment contract payable
|
78,902
|
77,091
|
|||||
Current
portion of capital lease obligation
|
386,391
|
372,256
|
|||||
Liabilities
related to discontinued operations
|
2,984,660
|
2,984,660
|
|||||
Total
current liabilities
|
40,244,180
|
34,636,232
|
|||||
Non-current
liabilities:
|
|||||||
Accrued
interest payable:
|
|||||||
4%
note payable to investor
|
117,419
|
107,419
|
|||||
8%
subordinated promissory notes payable to related parties
|
2,648,736
|
1,852,384
|
|||||
4%
note payable to related party, plus cumulative interest of
$952,775
|
3,952,775
|
3,952,775
|
|||||
4%
note payable to investor, net of unamortized discount
|
965,079
|
964,194
|
|||||
8%
subordinated secured promissory notes payable to related
parties
|
39,493,000
|
39,493,000
|
|||||
12%
subordinated promissory notes payable to related parties
|
---
|
7,000,000
|
|||||
Equipment
contract payable, less current portion
|
152,285
|
172,714
|
|||||
Capital
lease obligation, less current portion
|
1,210,001
|
1,312,064
|
|||||
Deferred
rent
|
135,279
|
144,360
|
|||||
Preferred
stock of subsidiary subject to mandatory redemption; issued and
outstanding at December 31, 2005 - 25,000 shares, and at September
30,
2005 - 24,733 shares of Series A 13% cumulative, non-convertible,
redeemable preferred stock, mandatory redemption and liquidation
value of
$1,000.00 per share, plus cumulative dividends of $2,724,658 at December
31, 2005 and $1,885,129 at September 30, 2005
|
27,724,658
|
26,618,129
|
|||||
Preferred
stock subject to mandatory redemption; issued and outstanding at
December
31, 2005 and September 30, 2005 - 1,000,000 shares of Series A 4%
cumulative, non-convertible, redeemable preferred stock, mandatory
redemption and liquidation value of $4.00 per share, plus cumulative
dividends of $1,269,333
|
5,269,333
|
5,269,333
|
|||||
Minority
interest - related parties
|
---
|
---
|
|||||
Total
liabilities
|
121,912,745
|
121,522,604
|
|||||
Commitments
and contingencies
|
|||||||
Stockholders’
deficiency:
|
|||||||
Preferred
stock, $0.01 par value; authorized - 5,000,000 shares; issued and
outstanding at December 31, 2005 and September 30, 2005 - 1,000,000
shares
of Series A preferred stock (classified in long-term liabilities
as
preferred stock subject to mandatory redemption)
|
---
|
---
|
|||||
Common
stock, $0.01 par value; authorized - 100,000,000 shares; issued -
39,849,751 shares; outstanding -39,242,251 shares at December 31,
2005 and
September 30, 2005
|
398,486
|
398,486
|
|||||
Additional
paid-in capital
|
267,829,138
|
268,096,138
|
|||||
Accumulated
deficit
|
(346,874,864
|
)
|
(347,265,398
|
)
|
|||
Treasury
stock - 607,500 shares, at cost
|
(829,576
|
)
|
(829,576
|
)
|
|||
Total
stockholders’ deficiency
|
(79,476,816
|
)
|
(79,600,350
|
)
|
|||
Total
liabilities and stockholders’ deficiency
|
$
|
42,435,929
|
$
|
41,922,254
|
Three
Months Ended
December
31,
|
|||||||
2005
|
2004
|
||||||
NET
SALES
|
$
|
33,482,842
|
$
|
---
|
|||
COSTS
AND EXPENSES
|
|||||||
Cost
of sales
|
28,875,532
|
---
|
|||||
Selling
|
385,571
|
---
|
|||||
General
and administrative
|
1,341,429
|
194,671
|
|||||
30,602,532
|
194,671
|
||||||
Income
(loss) from operations
|
2,880,310
|
(194,671
|
)
|
||||
OTHER
INCOME (EXPENSE)
|
|||||||
Interest
income
|
99
|
14,365
|
|||||
Interest
expense:
13%
Series A Preferred Stock
|
(839,528
|
)
|
---
|
||||
Notes
payable to related parties
|
(1,008,078
|
)
|
---
|
||||
Other
|
(585,958
|
)
|
(10,572
|
)
|
|||
Other
income (expense), net
|
6,689
|
(17,738
|
)
|
||||
Other
income (expense), net
|
(2,426,776
|
)
|
(13,945
|
)
|
|||
INCOME
(LOSS) BEFORE INCOME TAXES AND MINORITY INTEREST
|
453,534
|
(208,616
|
)
|
||||
Income
taxes
|
63,000
|
---
|
|||||
INCOME
(LOSS) BEFORE MINORITY INTEREST
|
390,534
|
(208,616
|
)
|
||||
MINORITY
INTEREST - related parties
|
---
|
---
|
|||||
NET
INCOME (LOSS)
|
$
|
390,534
|
$
|
(208,616
|
)
|
||
NET
INCOME (LOSS) PER COMMON SHARE -
|
|||||||
Basic
|
$
|
0.01
|
$
|
(0.01
|
)
|
||
Diluted
|
$
|
0.01
|
$
|
(0.01
|
)
|
||
WEIGHTED
AVERAGE NUMBER OF COMMON
|
|||||||
SHARES
OUTSTANDING -
Basic
|
39,242,251
|
39,242,251
|
|||||
Diluted
|
40,110,581
|
39,242,251
|
Common
Stock
|
|||||||||||||||||||
Shares
|
Amount
|
Additional
Paid-in
Capital
|
Accumulated
Deficit
|
Treasury
Stock
|
Total
|
||||||||||||||
Balances
at October 1, 2005
|
39,849,751
|
$
|
398,486
|
$
|
268,096,138
|
$
|
(347,265,398
|
)
|
$
|
(829,576
|
)
|
$
|
(79,600,350
|
)
|
|||||
Deemed
distribution to sellers of KES Acquisition Company, LLC
|
--
|
--
|
(267,000
|
)
|
--
|
--
|
(267,000
|
)
|
|||||||||||
Net
income
|
--
|
--
|
--
|
390,534
|
--
|
390,534
|
|||||||||||||
Balances
at December 31, 2005
|
39,849,751
|
$
|
398,486
|
$
|
267,829,138
|
$
|
(346,874,864
|
)
|
$
|
(829,576
|
)
|
$
|
(79,476,816
|
)
|
Three
Months Ended
December
31,
|
|||||||
2005
|
2004
|
||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
|||||||
Net
income (loss)
|
$
|
$390,534
|
$
|
(208,616
|
)
|
||
Adjustments
to reconcile net income (loss) to net cash provided by (used in)
operating
activities:
|
|||||||
Net
change in liabilities related to discontinued operations
|
---
|
(7,475
|
)
|
||||
Depreciation
and amortization
|
182,542
|
4,980
|
|||||
Amortization
of original issue discount on subordinated notes payable
|
885
|
572
|
|||||
Amortization
of deferred loan costs
|
83,739
|
---
|
|||||
Write-off
of fixed assets
|
---
|
20,429
|
|||||
Changes
in operating assets and liabilities:
|
|||||||
(Increase) decrease in -
|
|||||||
Accounts
receivable, net
|
(787,303
|
)
|
---
|
||||
Inventories
|
(377,733
|
)
|
---
|
||||
Accrued
interest receivable
|
---
|
(11,647
|
)
|
||||
Prepaid
expenses
|
(69,102
|
)
|
(11,181
|
)
|
|||
Increase
(decrease) in -
|
|||||||
Accounts
payable
|
1,107,249
|
39,699
|
|||||
Accrued
interest and dividends payable
|
1,857,607
|
10,000
|
|||||
Accrued
expenses
|
453,578
|
(39,908
|
)
|
||||
Deferred
rent
|
(9,081
|
)
|
---
|
||||
NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
2,832,915
|
(203,147
|
)
|
||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
|||||||
Principal
and interest payments on BTW note receivable
|
---
|
247,227
|
|||||
Deferred
costs related to KES transaction
|
---
|
(160,002
|
)
|
||||
NET
CASH PROVIDED BY INVESTING ACTIVITIES
|
---
|
87,225
|
|||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
|||||||
Net
repayments under secured line of credit
|
(3,130,551
|
)
|
---
|
||||
Repayment
of notes payable to directors
|
(50,000
|
)
|
---
|
||||
Principal
payments on equipment contract payable and capital lease
obligation
|
(106,546
|
)
|
---
|
||||
NET
CASH USED IN FINANCING ACTIVITIES
|
(3,287,097
|
)
|
---
|
||||
CASH
AND CASH EQUIVALENTS
|
|||||||
Net
decrease
|
(454,182
|
)
|
(115,922
|
)
|
|||
Balance
at beginning of period
|
998,835
|
674,880
|
|||||
Balance at end of period |
$
|
544,653
|
$
|
558,958
|
|||
SUPPLEMENTAL
CASH FLOW INFORMATION
|
|||||||
Cash
paid for -
|
|||||||
Interest
|
$
|
575,957
|
$
|
--
|
|||
Income
taxes
|
$
|
--
|
$
|
--
|
|||
NON-CASH
INVESTING AND FINANCING ACTIVITIES
|
|||||||
Deemed
distribution to sellers of KES Acquisition Company, LLC
|
$
|
267,000
|
$
|
--
|
2005
|
2004
|
||||||
Stock
options
|
1,405,404
|
1,205,404
|
|||||
Common
stock purchase warrants
|
1,000,000
|
1,000,000
|
KES
Holdings -
$19,000,000
Note
|
Atacama
-
$21,000,000
Note
|
||||||
Years
Ending September 30,
|
|||||||
2006
|
$
|
---
|
$
|
---
|
|||
2007
|
1,900,000
|
---
|
|||||
2008
|
950,000
|
---
|
|||||
2009
|
950,000
|
---
|
|||||
2010
|
950,000
|
---
|
|||||
2011
|
2,850,000
|
4,200,000
|
|||||
2012
|
2,850,000
|
4,200,000
|
|||||
2013
|
2,850,000
|
4,200,000
|
|||||
2014
|
---
|
1,264,000
|
|||||
2015
|
5,700,000
|
7,136,000
|
|||||
Total
|
$
|
19,000,000
|
$
|
21,000,000
|
Assets
Acquired:
|
||||
Cash
|
$
|
913,194
|
||
Accounts
receivable
|
10,781,836
|
|||
Allowance
for doubtful accounts
|
(328,351
|
)
|
||
Inventories
|
18,762,218
|
|||
Prepaid
expenses and other current assets
|
904,271
|
|||
Property,
plant and equipment
|
6,630,012
|
|||
Accumulated
depreciation and amortization
|
(639,254
|
)
|
||
Due
from YouthStream Acquisition Corp.
|
187,702
|
|||
Other
non-current assets
|
721,393
|
|||
Total
assets acquired
|
37,933,021
|
|||
Liabilities
Assumed:
|
||||
Accounts
payable
|
9,566,327
|
|||
Accrued
expenses
|
1,267,016
|
|||
Accrued
interest payable
|
593,260
|
|||
Deferred
rent
|
165,413
|
|||
Subordinated
promissory notes payable
|
7,000,000
|
|||
Line
of credit
|
15,495,095
|
|||
Equipment
contract payable
|
291,223
|
|||
Capital
lease obligation
|
1,877,179
|
|||
Total
liabilities assumed
|
36,255,513
|
|||
Net
assets acquired
|
1,677,508
|
|||
Adjustment
to recognize minority interest
|
(331,981
|
)
|
||
$ | 1,345,527 | |||
|
||||
Total
purchase consideration, net of intercompany eliminations of 2.67%
interest
held by KES Holdings:
|
||||
8%
Subordinated secured promissory notes payable
|
$ | 39,493,000 | ||
13%
Series A preferred stock
|
24,733,000
|
|||
Net
purchase consideration
|
64,226,000
|
|||
Minority
interests in equity
|
223,950
|
|||
Adjustment
to record deemed distribution to Sellers
|
(63,104,423
|
)
|
||
$ | 1,345,527 |
Net
sales
|
$
|
27,487,729
|
||
Cost
of sales
|
25,760,188
|
|||
Gross
margin
|
1,727,541
|
|||
Operating
income
|
381,860
|
|||
Interest
expense
|
(2,361,442
|
)
|
||
Minority
interest
|
199,109
|
|||
Net
loss from continuing operations
|
$
|
(1,696,846
|
)
|
|
Basic
and diluted net loss per common share
|
$
|
(0.04
|
)
|
|
Weighted
average common shares outstanding
|
39,242,251
|
December
31, 2005
|
Unrestricted
|
Restricted
|
As
Reported
|
|||||||
Current
assets
|
$
|
500,540
|
$
|
35,994,977
|
$
|
36,495,517
|
||||
Property,
plant and equipment, net
|
-
|
5,385,203
|
5,385,203
|
|||||||
Other
assets
|
-
|
555,209
|
555,209
|
|||||||
Total
assets
|
$
|
500,540
|
$
|
41,935,389
|
$
|
42,435,929
|
||||
Current
liabilities
|
$
|
3,908,112
|
$
|
36,336,068
|
$
|
40,244,180
|
||||
Non-current
liabilities
|
80,171,000
|
1,497,565
|
81,668,565
|
|||||||
Equity:
|
||||||||||
Retained
earnings (accumulated deficit)
|
(349,937,425
|
)
|
3,062,561
|
(346,874,864
|
)
|
|||||
Other
|
266,358,853
|
1,039,195
|
267,398,048
|
|||||||
Total
liabilities and equity
|
$
|
500,540
|
$
|
41,935,389
|
$
|
42,435,929
|
September
30, 2005
|
Unrestricted
|
Restricted
|
As
Reported
|
|||||||
Current
assets
|
$
|
261,740
|
$
|
35,453,821
|
$
|
35,715,561
|
||||
Property,
plant and equipment, net
|
-
|
5,567,745
|
5,567,745
|
|||||||
Other
assets
|
-
|
638,948
|
638,948
|
|||||||
Total
assets
|
$
|
261,740
|
$
|
41,660,514
|
$
|
41,922,254
|
||||
Current
liabilities
|
$
|
4,224,995
|
$
|
30,411,237
|
$
|
34,636,232
|
||||
Non-current
liabilities
|
78,257,234
|
8,629,138
|
86,886,372
|
|||||||
Equity:
|
||||||||||
Retained
earnings (accumulated deficit)
|
(348,435,183
|
)
|
1,169,785
|
(347,265,398
|
)
|
|||||
Other
|
266,214,694
|
1,450,354
|
267,665,048
|
|||||||
Total
liabilities and equity
|
$
|
261,740
|
$
|
41,660,514
|
$
|
41,922,254
|
December
31,
2005
|
September
30,
2005
|
||||||
(Unaudited)
|
|||||||
Raw
materials and scrap
|
$
|
2,947,430
|
$
|
2,954,405
|
|||
Semi-finished
goods
|
5,611,786
|
6,556,006
|
|||||
Finished
goods
|
9,699,322
|
8,370,394
|
|||||
Total
|
$
|
18,258,538
|
$
|
17,880,805
|
KES
Holdings -
$19,000,000
Note
|
Atacama
-
$21,000,000
Note
|
||||||
Years
Ending September 30,
|
|||||||
2006
|
$
|
---
|
$
|
---
|
|||
2007
|
1,900,000
|
---
|
|||||
2008
|
950,000
|
---
|
|||||
2009
|
950,000
|
---
|
|||||
2010
|
950,000
|
---
|
|||||
2011
|
2,850,000
|
4,200,000
|
|||||
2012
|
2,850,000
|
4,200,000
|
|||||
2013
|
2,850,000
|
4,200,000
|
|||||
2014
|
---
|
1,264,000
|
|||||
2015
|
5,700,000
|
7,136,000
|
|||||
Total
|
$
|
19,000,000
|
$
|
21,000,000
|
Assets
Acquired:
|
||||
Cash
|
$
|
913,194
|
||
Accounts
receivable
|
10,781,836
|
|||
Allowance
for doubtful accounts
|
(328,351
|
)
|
||
Inventories
|
18,762,218
|
|||
Prepaid
expenses and other current assets
|
904,271
|
|||
Property,
plant and equipment
|
6,630,012
|
|||
Accumulated
depreciation and amortization
|
(639,254
|
)
|
||
Due
from YouthStream Acquisition Corp.
|
187,702
|
|||
Other
non-current assets
|
721,393
|
|||
Total
assets acquired
|
37,933,021
|
Liabilities
Assumed:
|
||||
Accounts
payable
|
9,566,327
|
|||
Accrued
expenses
|
1,267,016
|
|||
Accrued
interest payable
|
593,260
|
|||
Deferred
rent
|
165,413
|
|||
Subordinated
promissory notes payable
|
7,000,000
|
|||
Line
of credit
|
15,495,095
|
|||
Equipment
contract payable
|
291,223
|
|||
Capital
lease obligation
|
1,877,179
|
|||
Total
liabilities assumed
|
36,255,513
|
|||
Net
assets acquired
|
1,677,508
|
|||
Adjustment
to recognize minority interest
|
(331,981
|
)
|
||
$
|
1,345,527
|
|||
Total
purchase consideration, net of intercompany eliminations of 2.67%
interest
held by KES Holdings:
|
||||
8%
Subordinated secured promissory notes payable
|
$
|
39,493,000
|
||
13%
Series A preferred stock
|
24,733,000
|
|||
Net
purchase consideration
|
64,226,000
|
|||
Minority
interests in equity
|
223,950
|
|||
Adjustment
to record deemed distribution to Sellers
|
(63,104,423
|
)
|
||
$
|
1,345,527
|
Net
sales
|
$
|
27,487,729
|
||
Cost
of sales
|
25,760,188
|
|||
Gross
margin
|
1,727,541
|
|||
Operating
income
|
381,860
|
|||
Interest
expense
|
(2,361,442
|
)
|
||
Minority
interest
|
199,109
|
|||
Net
loss from continuing operations
|
$
|
(1,696,846
|
)
|
|
Basic
and diluted net loss per common share
|
$
|
(0.04
|
)
|
|
Weighted
average common shares outstanding
|
39,242,251
|
December
31, 2005
|
Unrestricted
|
Restricted
|
As
Reported
|
|||||||
Current
assets
|
$
|
500,540
|
$
|
35,994,977
|
$
|
36,495,517
|
||||
Property,
plant and equipment, net
|
-
|
5,385,203
|
5,385,203
|
|||||||
Other
assets
|
-
|
555,209
|
555,209
|
|||||||
Total
assets
|
$
|
500,540
|
$
|
41,935,389
|
$
|
42,435,929
|
||||
Current
liabilities
|
$
|
3,908,112
|
$
|
36,336,068
|
$
|
40,244,180
|
||||
Non-current
liabilities
|
80,171,000
|
1,497,565
|
81,668,565
|
|||||||
Equity:
|
||||||||||
Retained
earnings (accumulated deficit)
|
(349,937,425
|
)
|
3,062,561
|
(346,874,864
|
)
|
|||||
Other
|
266,358,853
|
1,039,195
|
267,398,048
|
|||||||
Total
liabilities and equity
|
$
|
500,540
|
$
|
41,935,389
|
$
|
42,435,929
|
September
30, 2005
|
Unrestricted
|
Restricted
|
As
Reported
|
|||||||
Current
assets
|
$
|
261,740
|
$
|
35,453,821
|
$
|
35,715,561
|
||||
Property,
plant and equipment, net
|
-
|
5,567,745
|
5,567,745
|
|||||||
Other
assets
|
-
|
638,948
|
638,948
|
|||||||
Total
assets
|
$
|
261,740
|
$
|
41,660,514
|
$
|
41,922,254
|
||||
Current
liabilities
|
$
|
4,224,995
|
$
|
30,411,237
|
$
|
34,636,232
|
||||
Non-current
liabilities
|
78,257,234
|
8,629,138
|
86,886,372
|
|||||||
Equity:
|
||||||||||
Retained
earnings (accumulated deficit)
|
(348,435,183
|
)
|
1,169,785
|
(347,265,398
|
)
|
|||||
Other
|
266,214,694
|
1,450,354
|
267,665,048
|
|||||||
Total
liabilities and equity
|
$
|
261,740
|
$
|
41,660,514
|
$
|
41,922,254
|
Payments
Due by 12 Month Periods
Ending
December 31,
(in
thousands)
|
||||||||||||||||||||||
Contractual
cash obligations
|
Total
|
2006
|
2007
|
2008
|
2009
|
2010
|
There-after
|
|||||||||||||||
4%
notes payable
|
$
|
4,917
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
4,917
|
$
|
-
|
||||||||
12%
subordinated promissory notes payable
|
7,000
|
7,000
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
8%
subordinated secured promissory notes payable
|
39,493
|
-
|
1,849
|
925
|
925
|
925
|
34,869
|
|||||||||||||||
Secured
line of credit
|
15,879
|
-
|
15,879
|
-
|
-
|
-
|
-
|
|||||||||||||||
Operating
leases
|
1,487
|
424
|
400
|
390
|
273
|
-
|
-
|
|||||||||||||||
Capital
lease obligation
|
1,596
|
386
|
448
|
521
|
241
|
-
|
-
|
|||||||||||||||
Equipment
contact payable
|
231
|
79
|
87
|
65
|
-
|
-
|
-
|
|||||||||||||||
Management
services agreement
|
2,683
|
700
|
700
|
700
|
583
|
-
|
-
|
|||||||||||||||
4%
Series A Preferred Stock subject to mandatory redemption
|
5,269
|
-
|
-
|
-
|
-
|
5,269
|
-
|
|||||||||||||||
13%
Series A Preferred Stock of subsidiary subject to mandatory redemption,
excluding accrued dividends (assumes adequate defined “free cash flow” to
fund payments)
|
26,618
|
-
|
3,958
|
3,958
|
3,958
|
3,958
|
10,786
|
|||||||||||||||
Total
contractual cash obligations
|
$
|
105,173
|
$
|
8,589
|
$
|
23,321
|
$
|
6,559
|
$
|
5,980
|
$
|
15,069
|
$
|
45,655
|
YOUTHSTREAM
MEDIA NETWORKS, INC.
|
|||
(Registrant)
|
|||
DATE:
August 18, 2006
|
By:
/s/ JONATHAN V. DIAMOND
|
||
Jonathan
V. Diamond
|
|||
Chief
Executive Officer
|
|||
DATE:
August 18, 2006
|
By:
/s/ ROBERT N. WEINGARTEN
|
||
Robert
N. Weingarten
|
|||
Chief
Financial Officer
|
31.1
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
|
31.2
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
|
32
|
Certification
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|