HSKA » Topics » 6. SUBSEQUENT EVENT

This excerpt taken from the HSKA 10-K filed Mar 30, 2007.

12.    SUBSEQUENT EVENT

Under a settlement and release agreement effective on March 23, 2007, United agreed to have approximately $1.6 million paid to Diamond for product Diamond had previously shipped to United and other contractual obligations and all other remaining claims involving this matter were waived.  See Note 9 – Commitments and Contingencies for historical information on this matter.

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This excerpt taken from the HSKA 10-Q filed Aug 15, 2005.

6.        SUBSEQUENT EVENT

          In July 2005, the Company entered into an amended credit and security agreement with Wells Fargo Business Credit, Inc. (“Wells Fargo”). The amended agreement provided the Company with $2.5 million in incremental capital, supported by two equipment notes – a $2.0 million note secured by the Company’s equipment in Des Moines, Iowa and a $500,000 note secured by the Company’s equipment in Loveland, Colorado. In addition, the maturity date of the credit and security agreement was extended from May 31, 2006 to June 30, 2009. The Company's ongoing liquidity is dependent upon the availability of the revolving line of credit. This amended credit and security agreement contains financial and other covenants with which the Company must maintain compliance in order to have access to the revolving line of credit.


This excerpt taken from the HSKA 10-K filed Mar 31, 2005.

14. Subsequent Event

        On February 24, 2005, the Company's Board of Directors considered the significant impact that the use of fair values, rather than intrinsic values, would have on future results of operations, as well as factors including that the management team had requested that their salaries be frozen for 2005, many non-management employees' 2005 raises were to be at below market levels, no management bonus payouts were made for 2004 and the 2005 management incentive plan calls for a performance in excess of the Company's internal budget before any bonus payments are made, and authorized the Company's Stock Option Committee, which currently consists solely of the Company's Chief Executive Officer, to accelerate the vesting of outstanding but unvested options with a strike price equal to or greater than the then current market price through June 30, 2005 at its discretion. On March 30, 2005, the Company's Stock Option Committee exercised its discretion and accelerated the vesting of outstanding but unvested stock options with a strike price greater than or equal to $0.82. This action affected approximately 750,000 options, approximately 55,000 of which were held by the Company's Directors and Executive Officers.

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Item 9.    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

        None.


Item 9A.    Controls and Procedures.

        (a)    Evaluation of Disclosure Controls and Procedures.    Our management, with the participation of our chief executive officer and our chief financial officer, evaluated the effectiveness of our disclosure controls and procedures, as defined by Rule 13a-15 of the Exchange Act, as of the end of the period covered by this Annual Report on Form 10-K. Based on this evaluation, our chief executive officer and our chief financial officer have concluded that our disclosure controls and procedures are satisfactory to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

        (b)    Changes in Internal Control over Financial Reporting.    There was no change in our internal control over financial reporting that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

        If, as of June 30, 2005, we meet the definition of "accelerated filer," as defined by Rule 12b-2 of the Exchange Act, we will be required by the Sarbanes-Oxley Act of 2002 to include an assessment of our internal control over financial reporting and attestation from our independent registered public accounting firm in our Annual Report on Form 10-K for our fiscal year ending December 31, 2005. If, however we are not deemed an "accelerated filer" at that time, we will not have to include such assessment and attestation until our Annual Report on Form 10-K for our fiscal year ended December 31, 2006.


Item 9B.    Other Information.

        On February 24, 2005, our Board of Directors considered the significant impact that the use of fair values, rather than intrinsic values, would have on our future results of operations, as well as factors including that the management team had requested that their salaries be frozen for 2005, many non-management employees' 2005 raises were to be at below market levels, no management bonus payouts were made for 2004 and the 2005 management incentive plan calls for a performance in excess of our internal budget before any bonus payments are made, and authorized our Stock Option Committee, which currently consists solely of our Chief Executive Officer, to accelerate the vesting of outstanding but unvested options with a strike price equal to or greater than the then current market price through June 30, 2005 at its discretion. On March 30, 2005, our Stock Option Committee exercised its discretion and accelerated the vesting of outstanding but unvested stock options with a strike price greater than or equal to $0.82. This action affected approximately 750,000 options, approximately 55,000 of which were held by our Directors and Executive Officers. This action follows a similar action in December 2004.

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PART III

        Certain information required by Part III is incorporated by reference to our definitive Proxy Statement filed with the Securities and Exchange Commission in connection with the solicitation of proxies for our 2004 Annual Meeting of Stockholders.


Item 10.    Directors and Executive Officers of the Registrant.

        The information required by this section with respect to our directors is incorporated by reference to the information in the sections entitled "Election of Directors" and "Section 16(a) Beneficial Ownership Reporting Compliance" in the Proxy Statement.

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