BOOM (Dynamic Materials), NASDAQ small cap mit Potential (und Risiko) - 500 Beiträge pro Seite

[oww]

Wollte mal einen Thread zu Dynamic Materials (Nasdaq: BOOM) aufmachen. Ich werde zu gegebener Zeit nähere Informationen liefern, jetzt nur einen kurzen Überblick.

BOOM ist im Bereich Aerospace tätig und stellt im wesentlich Zulieferteile, die durch Explosionsfügen gefertigt werden, her. Insofern ein Old Economy Wert. Nach einem hoch von über USD 15,- in 1997 ist BOOM z.Zt. zu 7/8 (=0.875) USD zu haben. Vor kurzem gab es berechtigt Sorge eines Konkurses wegen Illiquidität. BOOM hatte einen unterschriebenen Vertrag zum Verkauf eines Unternehmensteils an eine andere Firma (Ametech), welchen diese nicht honorierte.

Inzwischen ist das Konkursrisiko erheblich zurückgegangen, da eine französische Firma, SNPE, über 2 Millionen Aktien aus einer Kapitalerhöhung zu 2 3/4 Dollar kauft und dann Mehrheitsaktionär wird. SNPE hat sich im Rahmen der due diligence ausführlich mit BOOM beschäftigt und ist dann offensichtlich zu dem Ergebnis gekommen, daß diese Firma mehr als 2 3/4 Dollar pro Aktie wert ist. Diese Transaktion muß auf der HV im Juni noch genehmigt werden.

Q1 Zahlen sind gerade gekommen und liegen im Rahmen der Erwartungen (-0,20 USD pro Aktie). Break even wird m.E. in Q3 oder Q4 2000 zu erwarten sein, und wenn BOOM es schafft alte Margen mit Hilfe von SNPE (bieten im gleichen Sektor an) wiederherzustellen, dann sind earnings in der Größenordnung des heutigen Aktienkurses in 2001 nicht ausgeschlossen. Voraussetzung ist, daß das relativ schwache Management aufgefrischt wird, wovon ich nach SNPE deal ausgehe. Dann sind Kurse um die USD 5-10 nicht utopisch.

Demnächst mehr Kennzahlen etc., würde mich interessieren, ob noch jemand diese Aktie im Depot hat.

Gruß oww

P.S.: Der Markt ist extrem eng, market cap nur 3 Mio US$, tägliche Umsätze um die 10.000 Stück, also ggf. streng limitieren.

[oww]

Letzter Kurs BOOM bei US$ 1, d.h. jetzt bei +14%. Das sind aber noch Zufallsschwankungen. Ein paar mehr Fakten:

Buchwert US$ 3.53, Price to Book 0.27
Umsatz pro Aktie ttm US$ 9.09, Price to Sales 0.11
Verluste ttm: US$ 1.21 pro Aktie (Tendenz geht nach oben)

Wenn der deal mit SNPE erwartungsgemäß gut läuft, können wir break even in 3Q00 oder 4Q00 sehen. Wenn BOOM es schafft die mittleren Margen der letzten 5 Jahre wiederherzustellen, dann sehen wir in 2001 Gewinne pro Aktie in der range 0,25 bis 0,50 USD, in 2002 halte ich Gewinne in Höhe des heutigen Aktienkurses für machbar (im günstigsten Fall).

BOOM ist völlig unentdeckt, steht bei keinem nennenswerten Investmenthaus auf der watchlist und wird nirgenwo gecovered (ist für Institutionelle uninteressant bei market cap US$ 3 Mio.). Privatanleger werden erst langsam aufmerksam (sehr wenig Diskussionen auf den boards yahoo, ragingbull etc.). Gestern extrem hohes Volumen (>100.000 Stk, 10 mal avg.), vielleicht tut sich etwas.

So long

oww (do your own research)

[oww]

Aus der 10K:

Quote:

Assuming that the proposed transaction with SNPE closes as expected, the Company expects to utilize the $7.0 million cash infusion to repay bank debt, finance working capital requirements and make selective capital investments. Company management believes that this cash infusion would enable the Company to restructure its current credit facility and financial covenants relating to its bank credit agreement and the bonds to ensure compliance with underlying covenants or obtain replacement financing. Additionally, the Company believes that proceeds from this contemplated equity sale, cash flow from its operations and funds expected to be available under a restructured or new credit facility will be sufficient to fund working capital and capital expenditure requirements of its current business operations for the foreseeable future. However, if this contemplated equity sale transaction does not close and the Company is unsuccessful in restructuring its currently outstanding debt or obtaining replacement financing, the Company may be required to liquidate certain assets outside of the normal course of business which could result in a loss on the disposition of those assets. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.

Unquote

Beschreibt ganz akkurat das kurzfristige Chancen-/Risikoprofil.

Gruß oww

[oww]

Es gibt News:

LAFAYETTE, Colo., May 15, 2000 /PRNewswire via COMTEX/ -- Dynamic Materials
Corporation, (Nasdaq: BOOM), `DMC`, today announced that it has scheduled a
Special Meeting of stockholders on Wednesday, June 14, 2000. Stockholders of DMC
are to decide whether or not to approve a Stock Purchase Agreement (the
Agreement) with SNPE, Inc. (SNPE), currently a 14.30% shareholder of the
Company. The agreement provides for a $5.8 million cash payment to the Company
in exchange for 2,109,091 shares of the Company`s common stock at a price of
$2.75 per share and an additional $1.2 million in cash borrowed under a
five-year, 5% Convertible Subordinated Note (the Note) convertible in whole or
in part into common stock by SNPE for $6 per share. DMC plans to use the $7
million primarily to repay debt, finance working capital requirements and make
selective capital investments.

"Recapitalizing the balance sheet has obviously become a priority for the
Company," said Joseph Allwein, DMC`s president and chief executive officer. "The
equity infusion and favorable debt instrument accomplishes not only this
important objective, but we also expect to benefit from certain synergies with
the explosion bonded clad metal products business of SNPE S.A., the parent
company of SNPE. Other benefits may include the opportunity to expand DMC`s
aerospace presence in the European market."

Upon the closing of the Transaction, expected to occur late in the second
quarter, SNPE would own a controlling interest in the Company. SNPE would own
approximately 50.8% of the Company`s outstanding Common Stock before conversion
of the Note, or approximately 52.7% of the Common Stock if the Note is
converted. Changes to DMC would include expanding the Board of Directors from
five to seven members, comprised of four new SNPE members and three current DMC
members.

This news release contains forward-looking statements that involve risks and
uncertainties, including, but not limited to, whether the Company and SNPE, Inc.
complete the transaction and other risks detailed from time to time in the
Company`s SEC reports, including the Company`s report on Form 10-K for the year
ended December 31, 1998, and reports on Form 10-Q for the quarters ending March
31, June 30 and September 30, 1999.

SNPE, Inc. is a wholly owned subsidiary of SNPE S.A., a French government-owned
fine chemicals, aerospace and defense company with interests in the explosion
bonding of clad metal plates.

Based in Lafayette, Colorado, Dynamic Materials Corporation is a leader in the
metal working industry, and its products include bonded clad metal plates and
other metal fabrications for the petrochemical, chemical processing,
satellite/launch vehicle, commercial aircraft, defense and a variety of other
industries.

For more information on Dynamic Materials Corporation visit the Company`s web
site at http://www.dynamicmaterials.com .

SOURCE Dynamic Materials Corporation


(C) 2000 PR Newswire. All rights reserved.

[oww]

Bisher +32%. Einstiegskurse noch bis USD 1,50.

Gruß oww

[oww]

Heute auch schon wieder +13%, seit meiner ersten Empfehlung vor 10 Tagen +50%, das alles bei vergleichbar hohen Umsätzen. So langsam kommt die Bedeutung des SNPE deals in das Bewußtsein der Anleger. Noch sind Einstiegskurse.

Gruß oww

[oww]

Kurs stramm auf den 38 Tage MA, wenn der geknackt ist und am 16. Juni der SNPE deal abgesegnet wird sind wir bei $2 (hoffentlich).

Toll immer mit sich selbst zu diskutieren.

Gruß oww

[oww]

So, das ist jetzt mein letztes posting in diesem Thread. Inzwischen sind wir bei US$ 1,50 und der SNPE deal ist jetzt kurzfristig eskomptiert. Ich erwarte eine trading range zwichen 1,50 und 2 bis Juni, eventuell über $2 nach der außerordentlichen HV im Juni. Sehe weiterhin Potenzial bis $5 auf Sicht 24 Monate.

So long and good trading oww

[oww]

Hab ich doch gesagt, verdoppelt in 3 Wochen! Freu freu freu.

Gruß oww

[oww]

Und das bei der Nasdaq!!!!

[southbound]

@oww
Keine Angst, Gratulation, sehr gute Nase!!!

August 14, 2001

DYNAMIC MATERIALS CORP (BOOM)
Quarterly Report (SEC form 10-Q)
ITEM 2. Management`s Discussion and Analysis of Financial Condition and Results of Operations
General

Dynamic Materials Corporation ("DMC" or the "Company") is a worldwide leader in explosive metalworking and, through its Aerospace Group, is involved in a variety of metal forming, machining, welding, and assembly activities. The explosive metalworking business includes the use of explosives to perform metallurgical bonding, or "metal cladding" and shock synthesis of synthetic diamonds. We perform metal cladding using our proprietary technologies. Our revenues from our explosive metalworking businesses, as a proportion of our total revenues, have declined in the past two years as a result of a significant slowdown in global market demand for explosion bonded clad metal products and the 1998 acquisitions of AMK Welding ("AMK"), Spin Forge and Precision Machined Products ("PMP"). Our Aerospace Group was formed from these three acquisitions and accounted for 22%, 42% and 39% of the Company`s 1998, 1999 and 2000 revenues, respectively.

Explosive Metalworking. Clad metal products are used in manufacturing processes or environments that involve highly corrosive chemicals, high temperatures and/or high pressure conditions. For example, we fabricate clad metal tube sheets for heat exchangers. Heat exchangers are used in a variety of high temperature, high pressure, highly corrosive chemical processes, such as processing crude oil in the petrochemical industry and processing chemicals used




in the manufacture of synthetic fibers. In addition, we have produced titanium clad plates used in the fabrication of metal autoclaves to replace autoclaves made of brick and lead for two customers in the mining industry. We believe that our clad metal products are an economical, high-performance alternative to the use of solid corrosion-resistant alloys. In addition to clad metal products, the explosive metalworking business includes shock synthesis of synthetic diamonds.

On July 3, 2001, we completed our acquisition of more than 99.9% of the stock of Nobelclad Europe S.A. ("Nobelclad") from Nobel Explosifs France ("NEF"). Nobelclad and its wholly-owned subsidiary, Nitro Metall operate cladding businesses located in Rivesaltes, France and Likenas, Sweden, respectively, which generated combined unaudited revenues of approximately $10.7 million in calendar year 2000. NEF is wholly owned by Groupe SNPE and is a sister company to SNPE, Inc., which owns 55% of our common stock. The purchase price of $4 million was financed by a note agreement between the Company and SNPE, Inc. We also assumed third party bank debt held by Nobelclad in the amount of 9.5 million French Francs (approximately $1.2 million as of July 3, 2001) in the transaction.

Aerospace Manufacturing. Products manufactured by the Aerospace Group are typically made from sheet metal and forgings that are subsequently machined or formed into precise, three-dimensional shapes that are held to tight tolerances. Metal machining and forming is accomplished through traditional technologies, including spinning, machining, rolling and hydraulic expansion. We also perform welding services utilizing a variety of manual and automatic welding techniques that include electron beam and gas tungsten arc welding processes. Our forming and welding operations are often performed to support the manufacture of completed assemblies and sub-assemblies required by its customers. Fabrication and assembly services are performed utilizing our close-tolerance machining, forming, welding, inspection and other special service capabilities. Our forming, machining, welding and assembly operations serve a variety of product applications in the commercial aircraft, aerospace, defense and power generation industries. Product applications include tactical missile motor cases, titanium pressure tanks for launch vehicles, and complex, high precision component parts for satellites.

In 2000, we experienced significant operating losses as a result of a significant decline in sales revenue and gross margin levels within our Aerospace Group. Our Explosive Metalworking Group generated a small operating income in 2000 after incurring significant operating losses in 1999. We also experienced, and we expect to continue to experience, quarterly fluctuations in operating results caused by various factors, including the timing and size of orders from major customers, customer inventory levels, shifts in product mix, the occurrence of acquisition and divestiture-related costs, and general economic conditions. We typically do not obtain long-term volume purchase contracts from our customers. Quarterly sales and operating results therefore depend on the volume and timing of backlog as well as bookings received during the quarter. A significant portion of our operating expenses is fixed, and planned expenditures are based primarily on sales forecasts and product development programs. If sales do not meet our expectations in any given period, the adverse impact on operating results may be magnified by our inability to adjust operating expenses sufficiently or quickly enough to compensate for such a shortfall. In addition, we use numerous suppliers of alloys, steels and other materials for our operations. We typically bear a short-term risk of alloy, steel and other component price increases, which could adversely affect our gross profit margins. Although we will work with customers and suppliers to




minimize the impact of any component shortages, component shortages have had, and are expected from time to time to have, short-term adverse effects on our business. Results of operations in any period should not be considered indicative of the results to be expected for any future period. Fluctuations in operating results may also result in fluctuations in the price of our common stock.

Three Months and Six Months Ended June 30, 2001 Compared to Three Months and Six Months Ended June 30, 2000

The following table sets forth for the periods indicated the percentage relationship to net sales of certain income statement data:




Percentage of Net Sales
Three Months Ended June 30, Six Months Ended June 30,
2001 2000 2001 2000
---- ---- ---- ----


Net sales 100.0% 100.0% 100.0% 100.0%
Cost of products sold 73.5% 87.2% 76.4% 87.1%
----- ----- ----- -----
Gross margin 26.5% 12.8% 23.6% 12.9%
General & administrative 11.0% 10.9% 11.0% 12.1%
Selling expenses 5.4% 5.1% 5.3% 5.4%
Income (loss) from operations 10.0% (3.2%) 7.3% (4.5%)
Interest expense 2.0% 5.1% 2.2% 5.3%
Income tax provision - - - -
Net income (loss) 8.1% (8.3%) 5.2% (8.6%)


Net Sales. Net sales for the quarter ended June 30, 2001 increased by 1.6% to $8,454,286 from $8,320,483 in the second quarter of 2000. Our Aerospace Group contributed $3,209,844 (38.0% of total sales) to second quarter 2001 sales versus sales of $2,943,210 (35.4% of total sales) in the second quarter of 2000. Sales by the Explosive Metalworking Group, which includes explosion bonding of clad metal and shock synthesis of synthetic diamonds, decreased by 2.5% from $5,377,273 in the second quarter of 2000 to $5,244,442 in the second quarter of 2001. For the six months ended June 30, 2001, net sales increased by 4.7% to $15,392,455 from $14,707,107 for the comparable period of 2000. Aerospace Group sales for the six months ended June 30, 2001 totaled $5,979,176 (38.8% of total sales), a decrease of 0.8% from sales of $6,024,488 (41.0% of total sales) reported for the comparable period of 2000. Sales by the Explosive Metalworking Group for the comparable six-month period increased by 8.4% from $8,682,619 in 2000 to $9,413,279 in 2001.

Gross Profit. Our gross profit for the quarter ended June 30, 2001 increased by 110.4% to $2,239,073 from $1,064,165 in the second quarter of 2000. For the six months ended June 30, 2001, gross profit increased 91.3% to $3,632,783 from $1,898,999 in the comparable period in 2000. The gross profit margin for the six months ended June 30, 2001 was 23.6%, representing a 83.0% increase from the gross profit margin of 12.9% for the first six months of 2000. The gross profit margin for the Explosive Metalworking Group increased from 12.0% in the second quarter of 2000 to 33.6% in the second quarter of 2001. For the comparable




six-month periods, Explosive Metalworking gross margins increased from 10.4% in 2000 to 28.9% in 2001. The increase in gross profit margins for the Explosive Metalworking Group is attributable to improved market conditions, favorable changes in product mix and continual improvements in operating efficiencies at our new production facility in Mount Braddock, Pennsylvania. The gross profit margin for the Aerospace Group was 14.8% for the quarter ended June 30, 2001 as compared to 14.2% in the second quarter of 2000. For the comparable six-month periods, Aerospace Group gross margins decreased from 16.6% in 2000 to 15.2% in 2001. This decrease relates principally to product mix differences between the comparable periods and increases in manufacturing expenses at our PMP division.

General and Administrative. General and administrative expenses for the quarter ended June 30, 2001 increased by 2.5% to $931,838 from $909,210 in the second quarter of 2000. For the six months ended June 30, 2001, general and administrative expenses decreased by 4.8% to $1,692,040 from $1,776,741 in the comparable period of 2000. As a percentage of net sales, general and administrative expenses increased from 10.9% in the second quarter of 2000 to 11.0% for the quarter ended June 30, 2001 and decreased from 12.1% to 11.0% for the comparable six-month periods.

Selling Expense. Selling expenses increased by 8.3% to $457,462 for the quarter ended June 30, 2001 from $422,401 in the second quarter of 2000. For the six months ended June 30, 2001, selling expenses increased by 3.5% to $816,689 from $789,430 in the comparable period of 2000. Selling expenses for the three and six months ended June 30, 2001 include approximately $86,500 of accrued bonus expense associated with the Explosive Metalworking Group`s strong second quarter financial performance. Selling expenses for the three and six months ended June 30, 2000 included $80,284 of non-recurring expenses associated with severance pay and other employee separation costs. Selling expenses as a percentage of net sales increased from 5.1% in the second quarter of 2000 to 5.4% for the quarter ended June 30, 2001 and increased from 5.3% for the six months ended June 30, 2000 to 5.4% for the comparable period of 2001.

Income (Loss ) from Operations. For the second quarter ended June 30, 2001, we reported $849,773 in income from operations compared to a $267,446 loss from operations for the second quarter of 2000. This improvement is a result of the 110.4% increase in gross profit discussed above. For the six months ended June 30, 2001, we reported operating income of $1,124,054 compared to an operating loss of $667,172 in the comparable period of 2000. This improvement is the result of the $1,733,784 increase in gross profit for the six months ended June 30, 2001 versus the comparable period of 2000.

For the quarter and six months ended June 30, 2001, our Explosive Metalworking Group reported income from operations of $878,091 and $1,183,393, respectively, as compared to operating losses of $67,063 and $455,501 for the respective comparable periods of 2000. For the quarter and six months ended June 30, 2001, our Aerospace Group reported a loss from operations of $28,318 and $59,339, respectively, as compared to a loss from operations of $200,383 and $211,671 for the comparable periods of 2000.

Interest Expense. Interest expense decreased to $172,542 for the quarter ended June 30, 2001 from $342,436 in the second quarter of 2000. For the six months ended June 30, 2001, interest expense decreased to $340,421 from $705,132 in the comparable period of 2000. These decreases resulted from the reduction in




revolving credit debt that was made possible by the equity invested in us by SNPE, Inc. on June 14, 2000.

Income Tax Benefit (Expense). No income tax provision has been recorded for the six months ended June 30, 2001, as available net operating loss carry-forwards exceed pretax earnings projected for the year ended December 31, 2001. If such carry-forwards are utilized, the associated valuation allowance would be reversed when the Company believes it is probable of realizing such tax loss carry-forwards. In addition, any projected alternative minimum tax ("AMT") payable would be offset by the recognition of deferred tax assets. The Company did not record tax benefits for either the six months ended June 30, 2000 or the year ended December 31, 2000, since it had utilized all of its tax loss carry-backs in 1999 and the Company`s financial position and near-term operations outlook made the future realization of tax benefits associated with net operating loss carry-forwards uncertain.

Liquidity and Capital Resources

Historically, we have obtained most of our operational financing from a combination of operating activities and an asset-backed revolving credit facility. Due primarily to the operating losses we incurred during 1999 and the first quarter of 2000, we violated certain financial covenants under both the revolving credit facility that was then in effect and the reimbursement agreement related to the letter of credit supporting payment of principal and interest under our industrial revenue development bonds (the "Bonds") used to finance the construction of our manufacturing facilities in Pennsylvania. On June 14, 2000 our stockholders approved a Stock Purchase Agreement (the "Agreement") between the Company and SNPE, Inc ("SNPE"). The closing of the transaction, which was held immediately following stockholder approval, resulted in a payment from SNPE of $5,800,000 to the Company in exchange for 2,109,091 shares of our common stock at a price of $2.75 per share thereby causing SNPE to become a 50.8% stockholder of the Company on the closing date. An additional $1,200,000 cash payment was made by SNPE to us to purchase a five-year, 5% Convertible Subordinated Note that is convertible in whole or in part into common stock by SNPE at a conversion price of $6 per share. We also borrowed $3,500,000 on June 14, 2000 under a new credit facility with SNPE that bears interest at the Federal Funds Rate plus 1.5% and may be increased to maximum borrowings of $5,500,000 until August 31, 2001, and $4,500,000 thereafter, subject to certain approvals by SNPE (as of June 30, 2001, $5,000,000 was drawn and outstanding under this facility but the Company intends to repay $500,000 in order to meet the reduced capacity requirement as of August 31, 2001). Proceeds from the SNPE equity investment, convertible subordinated note issuance and credit facility borrowings aggregated $10,500,000 and enabled us to repay all outstanding borrowings under our bank revolving credit facility on which we had been in default since September 30, 1999. The bank revolving credit facility was terminated on June 14, 2000. As a result of the SNPE debt and equity infusion, we were also able to restructure financial covenants under the reimbursement agreement with our bank relating to the industrial development revenue bonds and we are currently in full compliance with all provisions of our debt agreements. The three-year bank letter of credit that supports our industrial development revenue bonds expires in September 2001. We have obtained a verbal commitment for a replacement letter of credit arrangement on terms we believe to be more favorable than those of the existing letter of credit and underlying reimbursement agreement, and we are in the process of formalizing agreements with the bank.



We believe that our cash flow from operations and funds available under our credit facility with SNPE, or a replacement credit facility with a third party financial institution, will be sufficient to fund working capital, debt service obligations and capital expenditure requirements of our current business operations for the foreseeable future. SNPE has agreed to extend its credit facility, which was originally callable upon 90 days` notice and had an original maturity date of June 30, 2001, to March 31, 2002. Management of the Company intends to replace the SNPE credit facility with a new third party credit facility during the last half of 2001 and believes that our strengthened balance sheet and improving operating results will enable us to secure such third party financing on reasonable terms. Until we are able to secure such third party financing on reasonable terms, we will continue to rely on the financial support of SNPE. A significant portion of our sales is derived from a relatively small number of customers; therefore, the failure to perform existing contracts on a timely basis, and to receive payment for such services in a timely manner, or to enter into future contracts at projected volumes and profitability levels could adversely affect our ability to meet our cash requirements exclusively through operating activities. Consequently, any restriction on the availability of borrowing under the SNPE credit facility or a replacement facility could negatively affect our ability to meet our future cash requirements.

Highlights from the Statement of Cash Flows for the Six Months Ended June 30,

Net cash used in operations for the six months ended June 30, 2001 was $532,460. Significant sources included net income of $793,818 and depreciation and amortization of $827,526. These sources were more than offset by negative changes in working capital totaling $2,145,647.

Cash used in investing activities totaled $726,866 and was comprised primarily of acquisitions of property, plant and equipment aggregating $733,187.

Net cash flows from financing activities totaled $1,072,796. The primary sources of cash were borrowings on the SNPE line of credit of $1,250,000 and a bank overdraft of $158,141. Uses of cash for financing activities included payments on the industrial development revenue bonds totaling $355,000.

Highlights from the Statement of Cash Flows for the Six Months Ended June 30,

Net cash used in operating activities for the six months ended June 30, 2000 was $466,168. Significant uses included a net loss of $1,263,309, a gain on the sale of property, plant and equipment of $185,570 and a negative change in working capital totaling $1,129,270. These uses were partly offset by the receipt of a $1,360,000 income tax refund and depreciation and amortization totaling $790,193.

Net cash flows from investing activities totaled $1,323,822 for the six months ended June 30, 2000. Sources of cash included $940,036 in proceeds from the sale of property, plant and equipment, $354,588 in proceeds from the receipt of payment on a loan to a related party, $214,929 related to an increase in other non-current assets and $255,008 from the release of restricted cash and investments. Significant uses, partly offsetting the sources, included $297,073




paid in connection with the construction of our Pennsylvania facility and $143,666 of property, plant and equipment acquisitions.

Net cash flows used in financing activities totaled $801,271. The primary uses were $10,255,000 for the repayment of the bank line of credit, $335,000 in repayments on the industrial development revenue bonds, $116,384 in payment of deferred financing costs and a $193,471 repayment of bank overdraft. The primary sources of cash include the proceeds from the issuance of common stock to SNPE (net of issuance costs) totaling $5,233,682, and borrowings on the SNPE line of credit and convertible subordinated note of $3,500,000 and $1,200,000, respectively.

Forward-Looking Statements