To make sure nobody would miss some of the more important bits of the 10-Q filing, here are some of the bigger points. First of, Capelworth made a pretty good summary on how many debts Interplay has:<blockquote>At the time the suit [from Warner Bros.] was filed, the amount due under the note was $1.4 million including interest. Subsequently, the Company entered into a settlement agreement with Warner. The Company is currently in default of the settlement agreement with Warner and has entered into a payment plan, of which the Company is in default, for the balance of the $0.32 million owed payable in one remaining installment.
(...)
This claim was settled for $100,000, payable in twelve installments, however, the Company was unable to satisfy its payment obligations and consequently, Monte Cristo has filed a stipulated judgment against theCompany in the amount of $100,000. If Monte Cristo executes the judgment, it will negatively affect the Company's cash flow, which could further restrict the Company's operations and cause material harm to our business.
(...)
the time of filing, Bioware alleged that it was owed approximately $156,000 under various agreements for which it secured a writ of attachment over the Company's assets. If Bioware executes the writ, it will negatively affect the Company's cash flow, which could further restrict its operations and cause material harm to our business.
(...)
On or about April 16, 2004, Arden Realty Finance IV LLC filed an unlawful detainer action against the Company in the Superior Court for the State of California, County of Orange, alleging the Company's default under its corporate lease agreement. At the time the suit was filed, the alleged outstanding rent totaled $431,823. The Company was unable to satisfy this obligation and reach an agreement with its landlord, the Company subseqently forfeited its lease, and is in the process of locating another building for its operations. This suit and interruption of our operations could cause substantial harm to our business
(...)
We have received notice from the Internal Revenue Service ("IRS") that we owe approximately $70,000 in payroll tax penalties. We estimate that we owe an additional $30,000, which we have accrued in penalties for nonpayment of approximately $100,000, $102,000 and $99,000 in Federal and State payroll taxes, which were due on April 30, April 15, and March 31, 2004, and is still outstanding. We were unable to meet our May 15, May 31, and June 15, 2004 payroll obligations to our employees. The labor board has fined us approximately $10,000 for failure to meet our payroll obligations. We need to have met our payroll obligations otherwise there will be additional penalties.
Our property, general liability, auto, fiduciary liability, and employment practices liability, have been cancelled. Our workers compensation insurance was cancelled but we have mananaged to reinstate the policy. The labor board fined us approximately $79,000 for not having workmans compensation insurance. Our health insurance was also cancelled but we have had the policy reinstated. There can be no guarantee that we will be able to meet all contractual obligations or liabilities in the future, including payroll obligations.</blockquote>Interplay's situation is pretty bad:<blockquote>As of March 31, 2004, we had a working capital deficit of $15 million, and our cash balance was $28,000. We currently have no cash reserves and are unable to pay current liabilities. The Company cannot continue in its current form without at this time obtaining additional financing.
(...)
We expect that we will need to substantially reduce our working capital needs and/or raise additional financing. If we do not receive sufficient financing we may (i) liquidate assets, (ii) sell the company (iii) seek protection from our creditors including the filing of voluntary bankruptcy or being the subject of involuntary bankruptcy, and/or (iv) continue operations, but incur material harm to our business, operations or financial conditions.</blockquote>But there's hope:<blockquote>Our main source of capital is from the release of new titles. Historically, we have had some delays in the release of new titles and we anticipate that we may continue to incur delays in the release of future titles. These delays can have a negative impact on our short-term liquidity, but should not affect our overall liquidity.</blockquote>Bwahahahaha. However, hidden in the 10-Q is the contractual obligations summary, which totals their contractual obligations at more than 10 million (to fulfill within the coming years). Most of those obligations can't be negotiated or delayed either, and the contractual obligations bit concludes with:<blockquote>We currently have no cash reserves. We will need to substantially reduce our working capital needs, continue to consummate certain sales of assets and/or raise additional financing to meet our contractual obligations.</blockquote> I have to agree with the general conclusion that Interplay won't survive this quarter without some miracle investor popping up.
(...)
This claim was settled for $100,000, payable in twelve installments, however, the Company was unable to satisfy its payment obligations and consequently, Monte Cristo has filed a stipulated judgment against theCompany in the amount of $100,000. If Monte Cristo executes the judgment, it will negatively affect the Company's cash flow, which could further restrict the Company's operations and cause material harm to our business.
(...)
the time of filing, Bioware alleged that it was owed approximately $156,000 under various agreements for which it secured a writ of attachment over the Company's assets. If Bioware executes the writ, it will negatively affect the Company's cash flow, which could further restrict its operations and cause material harm to our business.
(...)
On or about April 16, 2004, Arden Realty Finance IV LLC filed an unlawful detainer action against the Company in the Superior Court for the State of California, County of Orange, alleging the Company's default under its corporate lease agreement. At the time the suit was filed, the alleged outstanding rent totaled $431,823. The Company was unable to satisfy this obligation and reach an agreement with its landlord, the Company subseqently forfeited its lease, and is in the process of locating another building for its operations. This suit and interruption of our operations could cause substantial harm to our business
(...)
We have received notice from the Internal Revenue Service ("IRS") that we owe approximately $70,000 in payroll tax penalties. We estimate that we owe an additional $30,000, which we have accrued in penalties for nonpayment of approximately $100,000, $102,000 and $99,000 in Federal and State payroll taxes, which were due on April 30, April 15, and March 31, 2004, and is still outstanding. We were unable to meet our May 15, May 31, and June 15, 2004 payroll obligations to our employees. The labor board has fined us approximately $10,000 for failure to meet our payroll obligations. We need to have met our payroll obligations otherwise there will be additional penalties.
Our property, general liability, auto, fiduciary liability, and employment practices liability, have been cancelled. Our workers compensation insurance was cancelled but we have mananaged to reinstate the policy. The labor board fined us approximately $79,000 for not having workmans compensation insurance. Our health insurance was also cancelled but we have had the policy reinstated. There can be no guarantee that we will be able to meet all contractual obligations or liabilities in the future, including payroll obligations.</blockquote>Interplay's situation is pretty bad:<blockquote>As of March 31, 2004, we had a working capital deficit of $15 million, and our cash balance was $28,000. We currently have no cash reserves and are unable to pay current liabilities. The Company cannot continue in its current form without at this time obtaining additional financing.
(...)
We expect that we will need to substantially reduce our working capital needs and/or raise additional financing. If we do not receive sufficient financing we may (i) liquidate assets, (ii) sell the company (iii) seek protection from our creditors including the filing of voluntary bankruptcy or being the subject of involuntary bankruptcy, and/or (iv) continue operations, but incur material harm to our business, operations or financial conditions.</blockquote>But there's hope:<blockquote>Our main source of capital is from the release of new titles. Historically, we have had some delays in the release of new titles and we anticipate that we may continue to incur delays in the release of future titles. These delays can have a negative impact on our short-term liquidity, but should not affect our overall liquidity.</blockquote>Bwahahahaha. However, hidden in the 10-Q is the contractual obligations summary, which totals their contractual obligations at more than 10 million (to fulfill within the coming years). Most of those obligations can't be negotiated or delayed either, and the contractual obligations bit concludes with:<blockquote>We currently have no cash reserves. We will need to substantially reduce our working capital needs, continue to consummate certain sales of assets and/or raise additional financing to meet our contractual obligations.</blockquote> I have to agree with the general conclusion that Interplay won't survive this quarter without some miracle investor popping up.
