This excerpt taken from the SATC 10-Q filed May 12, 2009.
This excerpt taken from the SATC 10-Q filed Nov 6, 2008.
This excerpt taken from the SATC 10-Q filed Aug 12, 2008.
This excerpt taken from the SATC 10-Q filed May 13, 2008.
This excerpt taken from the SATC 10-Q filed Aug 9, 2007.
Item 1A. Risk Factors.
Other than as set forth below, there have been no material changes from the risk factors previously disclosed in Part I, Item 1A, Risk Factors, of our Annual Report on Form 10-K for the fiscal year ending December 31, 2006.
For each of the past ten fiscal years, we have experienced losses from operating our businesses. As of June 30, 2007, we had an accumulated deficit of approximately $166.1 million. During the six months ended June 30, 2007 we had a loss from operations of approximately $6.5 million. In July 2007, holders of our Warrant Bs, originally issued in our July 2006 financing, exercised such warrants, resulting in gross proceeds to us of approximately $4.76 million. However, because as of August 1, 2007 we have only 570,874 shares of common stock remaining for issuance upon conversion of, or as principal and interest payments on, our senior secured convertible notes (due to Nasdaq limitations), of which approximately $8.0 million is outstanding as of August 1, 2007, then absent shareholder approval to allow us to issue additional shares of common stock under the notes, we expect that we will use up our remaining available shares in the fourth quarter of fiscal 2007. In that event, we would be required to pay principal and interest installments in cash, which would require us to dedicate a substantial portion of our cash flows from operations and other capital resources to these payments. While we plan on seeking shareholder approval to allow us to issue additional shares of common stock under the notes, including as principal and interest payments, there can be no assurance that such shareholder approval will be obtained. Accordingly, we will need to raise additional capital in the near future in order to sustain our operations. There can be no assurance that we will be able to raise such funds if they are required. In addition, there can be no assurance that we will be able to operate on a cash flow breakeven basis in the future.
We are responsible for having the resale of shares of common stock underlying the Warrant Cs issued in July 2007 registered with the SEC within defined time periods and will incur liquidated damages if the shares are not registered with the SEC within those defined time periods.
Pursuant to our agreement with the investors in the July 2006 private placement, as a result of the issuance of the Warrant Cs upon the exercise of the Warrant Bs in July 2007, we are obligated to (i) file a registration statement covering the resale of the common stock underlying the Warrant Cs within 30 days following the issuance of the Warrant Cs, (ii) use our best efforts to cause the registration statement to be declared effective within 60 days following the issuance of the Warrant Cs (or 90 days in the event of a review of such registration statement by the SEC) and (iii) use our best efforts to keep the registration statement effective until the earlier of (x) the fifth anniversary of the effective date of the registration statement, (y) the date all of the securities covered by the registration statement have been publicly sold and (z) the date all of the securities covered by the registration statement may be sold without restriction under SEC Rule 144(k).
If we fail to comply with these or certain other provisions, then we will be required to pay liquidated damages of 1% of the aggregate purchase price paid by the investors in the private placement for the initial occurrence of such failure and 1.5% of such amount for each subsequent 30 day period the failure continues. The total liquidated damages under this provision are capped at 24% of the aggregate purchase price paid by the investors in the private placement. Any such payments could materially affect our ability to fund operations.
This excerpt taken from the SATC 10-Q filed May 14, 2007.
EXCERPTS ON THIS PAGE: