This excerpt taken from the KIDS 10-K filed Apr 2, 2007.
Certain Relationships and Related Transactions
On September 22, 2006, the Company closed on $2 million in new equity financing. The equity financing was provided by affiliates of Wyndcrest Holdings, LLC, a company controlled by our Chairman and Chief Executive Officer John C. Textor. In connection with the financing, the Company received aggregate proceeds of approximately $2 million, based on the issuance of 263,852 shares of our common stock priced at $7.58 per share, a 7.5% premium to the closing price on September 22, 2006.
On December 29, 2006, the Company entered into a Loan Agreement (the Lydian Loan Agreement) with Lydian Private Bank, pursuant to which Lydian Private Bank provided a term loan of $2,000,000 to the Company (the Lydian Loan), evidenced by a Promissory Note in that principal amount dated December 29, 2006 (the Lydian Note). The Lydian Loan bears interest at a floating rate of interest equal to the base rate on corporate loans posted by at least 75% of the nations largest banks, known as the Wall Street Journal Prime, which interest is payable monthly beginning on February 1, 2007. The maturity date of the Lydian Loan is July 1, 2008, at which time all outstanding principal and accrued but unpaid interest thereunder must be repaid to Lydian Private Bank.
As security for the Lydian Loan, Wyndcrest Baby Universe Holdings II, LLC, a Florida limited liability company, and Wyndcrest BabyUniverse Holdings III, LLC, a Florida limited liability company, each of which is controlled by Mr. Textor, pledged to Lydian Private Bank shares of our Common Stock held by them, which shares also serve as collateral under a loan previously extended to such pledgors by Lydian Private Bank. In addition, each such pledgor and Mr. Textor have executed a guaranty of the Lydian Loan in favor of Lydian Private Bank. The Lydian Loan Agreement and the Lydian Note contain customary events of default for facilities of this type; upon the occurrence of any such event of default, Lydian Private Bank shall be entitled to all rights and remedies available to it against the Company under law and the Lydian Loan Agreement and the Lydian Note, including, without limitation, the right to accelerate and demand immediate repayment of all sums due thereunder.
This excerpt taken from the KIDS DEF 14A filed May 1, 2006.
During the year ended December 31, 2005 we did not have any relationships or transactions with any of our executive officers or directors that were required to be reported pursuant to Item 404 of Regulation S-K.