FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1994
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-3879
DynCorp
(Exact name of registrant as specified in its charter)
Delaware 36-2408747
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2000 Edmund Halley Drive, Reston, VA 22091-3436
(Address of principal executive offices) (Zip Code)
(703) 264-0330
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed
since last report)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date. 7,378,392 shares of common stock having a par value of
$0.10 per share were outstanding at June 30, 1994.
DYNCORP
INDEX
PART I. FINANCIAL INFORMATION
Consolidated Condensed Balance Sheets -
June 30, 1994 and December 31, 1993
Consolidated Condensed Statements of Operations -
Three and Six Months Ended June 30, 1994 and July 1, 1993
Consolidated Condensed Statements of Cash Flows -
Six Months Ended June 30, 1994 and July 1, 1993
Notes to Consolidated Condensed Financial Statements
Management's Discussion and Analysis of Financial Condition
and Results of Operations
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 6. Exhibits and Reports on Form 8-K
Signatures
Exhibit 11 - Computations of Earnings Per Common Share
PART I. FINANCIAL INFORMATION
DYNCORP AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
JUNE 30, 1994 AND DECEMBER 31, 1993
(Dollars in Thousands)
UNAUDITED
ASSETS
June 30, December 31,
1994 1993
Current Assets:
Cash and short-term investments (including
restricted cash of $18,718 in 1994 and
$17,632 in 1993) $ 24,405 $ 22,806
Notes and current portion of long-term receivables 747 235
Accounts receivable and contracts in process (net of
allowance for doubtful accounts of $2,253 in 1994
and $1,469 in 1993) (Note 3) 169,482 177,470
Inventories of purchased products and supplies,
at lower of cost (first-in, first-out) or market 7,511 6,467
Prepaid income taxes 127 127
Other current assets 8,115 6,724
Total current assets 210,387 213,829
Long-Term Receivables 370 274
Property and Equipment (net of accumulated depreciation
and amortization of $41,788 in 1994 and $42,996 in
1993) 60,636 60,948
Intangible Assets (net of accumulated amortization
of $43,846 in 1994 and $43,336 in 1993) (Note 4) 96,794 93,890
Other Assets 12,898 13,515
$381,085 $382,456
See accompanying notes to consolidated condensed financial statements.
DYNCORP AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
JUNE 30, 1994 AND DECEMBER 31, 1993
(Dollars in Thousands)
UNAUDITED
LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS' EQUITY
June 30, December 31,
1994 1993
Current Liabilities:
Notes payable and current portion of
long-term debt $ 22,379 $ 3,837
Accounts payable 14,030 25,376
Advances on contracts in process 1,979 2,178
Accrued liabilities 107,668 108,652
Total current liabilities 146,056 140,043
Long-Term Debt 205,743 216,425
Other Liabilities and Deferred Credits 16,194 17,622
Total liabilities 367,993 374,090
Commitments, Contingencies and Litigation (Note 9) - -
Redeemable Common Stock, $17.50 per share redemption
value, 125,714 shares issued and outstanding 2,200 2,200
Stockholders' Equity:
Capital stock, $0.10 par value:
Preferred stock, Class C (Note 2) 3,000 3,000
Common stock 774 502
Common stock warrants (Note 5) 11,829 15,119
Unissued common stock under restricted stock plan 9,882 10,395
Paid-in surplus (Notes 5 and 6) 117,621 95,983
Deficit (107,944) (105,425)
Common stock held in treasury (7,145) (5,840)
Unearned ESOP shares (Note 6) (8,900) -
Cummings Point Industries, Inc. note receivable (8,225) (7,568)
Total stockholders' equity 10,892 6,166
Total Liabilities, Redeemable Common Stock
and Stockholders' Equity $381,085 $382,456
See accompanying notes to consolidated condensed financial statements.
DYNCORP AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Dollars in Thousands Except Per Share Amounts)
UNAUDITED
Three Months Ended Six Months Ended
June 30, July 1, June 30, July 1,
1994 1993 1994 1993
Revenues $248,551 $235,567 $508,089 $467,127
Costs and expenses:
Cost of services (Note 8) 236,794 226,059 485,515 450,893
Selling and corporate administrative 4,348 4,604 8,545 9,499
Interest income (574) (843) (1,113) (1,314)
Interest expense 6,722 6,296 13,458 12,772
Other 1,520 1,998 3,099 3,840
248,810 238,114 509,504 475,690
Loss before income taxes and
minority interest (259) (2,547) (1,415) (8,563)
Provision for income taxes (Note 7) 360 46 544 98
Loss before minority interest (619) (2,593) (1,959) (8,661)
Minority Interest (a) 311 386 560 504
Net loss $ (930) $(2,979) $ (2,519) $(9,165)
Weighted average number of common shares
outstanding and dilutive common stock
equivalents:
Primary and fully diluted 6,251,341 5,128,901 5,862,005 5,140,454
Loss per common share - primary
and fully diluted:
Net loss for common stockholders $ (0.21) $ (0.65) $ (0.56) $ (1.91)
(a) 1993 restated to conform to 1994 presentation.
See accompanying notes to consolidated condensed financial statements.
DYNCORP AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
UNAUDITED
Six Months Ended
June 30, July 1,
1994 1993
Cash Flows from Operating Activities:
Net loss $ (2,519) $ (9,165)
Adjustments to reconcile net loss from operations
to net cash provided (used) by operating activities:
Depreciation and amortization 9,244 9,574
Pay-in-kind interest on Junior Subordinated Debentures 7,370 6,318
Restricted Stock Plan 1,010 1,711
Noncash interest income (657) (556)
Other (1,129) (1,699)
Changes in current assets and liabilities,
net of acquisitions:
Decrease in current assets except cash,
short-term investments and notes receivable 6,611 9,527
Decrease in current liabilities except notes
payable and current portion of long-term debt (11,918) (3,080)
Cash provided by operating activities 8,012 12,630
Cash Flows from Investing Activities:
Sale of property and equipment 142 255
Proceeds received from notes receivable 38 42
Purchase of property and equipment,
net of capitalized leases (2,094) (3,139)
Assets and liabilities of acquired businesses
excluding cash acquired (Note 4) (7,812) (1,851)
Other (891) (961)
Cash used by investing activities (10,617) (5,654)
Cash Flows from Financing Activities:
Treasury stock purchased (1,541) (564)
Payment on indebtedness (2,658) (1,473)
Reduction in loan to Employee Stock Ownership Plan - 8,059
Sale of stock to Employee Stock Ownership Plan 8,200 -
Other note payable - 300
Treasury stock sold 159 46
Other 44 -
Cash provided from financing activities 4,204 6,368
Net Increase in Cash and Short-term Investments 1,599 13,344
Cash and Short-term Investments at Beginning of the Period 22,806 19,980
Cash and Short-term Investments at End of the Period $ 24,405 $33,324
Supplemental Cash Flow Information:
Cash paid for income taxes $ 356 $ 165
Cash paid for interest $ 5,604 $ 6,637
See accompanying notes to consolidated condensed financial statements.
DYNCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
UNAUDITED
1. The unaudited consolidated condensed financial statements
included herein have been prepared by the Company pursuant to
the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures
normally included in financial statements prepared in
accordance with generally accepted accounting principles have
been condensed or omitted pursuant to such rules and
regulations, although the Company believes that the disclosures
are adequate to make the information presented not misleading.
It is suggested that these condensed financial statements be
read in conjunction with the financial statements and the notes
thereto included in the Company's latest annual report on Form
10-K. In the opinion of the Company, the unaudited
consolidated condensed financial statements included herein
reflect all adjustments of a normal recurring nature necessary
to present fairly the financial position, the results of
operations and the cash flows for such interim periods. The
results of operations for such interim periods are not
necessarily indicative of the results for the full year.
2. At June 30, 1994, $6,110,000 of Class C Preferred Stock
cumulative dividends have not been accrued or paid.
3. At June 30, 1994, $18,718,000 of cash and short-term
investments and $107,621,000 of accounts receivable are
restricted as collateral for the Contract Receivable
Collateralized Notes, Series 1992-1.
4. On December 10, 1993, the Company acquired certain assets of
NMI Systems, Inc. ("NMI") and at December 31, 1993 the
allocation period for recording this acquisition remained open,
pending resolution of certain contract issues. Interim
adjustments to the purchase price were recorded in the first
six months of 1994.
During the second quarter, the Company paid an aggregate $5.3
million for a 25% interest in each of Composite Technology,
Inc. (CTI) and Gateway Passenger Services, L.P. and further
increased its holdings in Business Mail Express, Inc. (BME)
from 40% to 50.1%. The investment in BME is being accounted
for using the equity method due to uncertainties regarding the
Company's ability to maintain control. Goodwill of $5,689,000
was recorded and will be amortized over periods up to 40 years.
5. The Company issued warrants to the Class C Preferred
stockholders and to certain common stockholders to purchase a
maximum of 5,891,587 shares of common stock. Each warrant is
exercisable to obtain one share of common stock. The
stockholder may exercise the warrant and pay an exercise price
of $.25 or may sell shares back to the Company in lieu of the
cash payment. During the first half of 1994, warrants
representing 1,330,602 shares of common stock valued at $11.86
per share were exercised. Rights under the warrants lapse no
later than September 9, 1998.
6. The Company extended the ESOP in the first half of 1994 by
contributing $8,200,000 in cash which was used by the ESOP to
purchase 648,279 common shares; 316,189 shares at $11.86 and
332,090 shares at $13.40 per share. ESOP expense was $3,874,000
and $8,200,000 for the second quarter and first half
respectively. Additionally, the ESOP has issued a promissory
note to the Company in the amount of $8,900,000 and the Company
has issued 664,180 shares of common stock, representing the
third and fourth quarters' contribution at $13.40 per share.
As payments are made on the note, the shares will be allocated
to the participating employees' accounts. The Company adopted
SOP 93-6, "Accounting for Employee Stock Ownership Plans," and
does not anticipate it will have a material effect on the
financial statements.
7. The Company did not recognize any federal income tax benefits
on the losses incurred in the three and six months ended June
30, 1994 and July 1, 1993 because of the uncertainty regarding
the level of future taxable income. The federal tax provision
reflected in 1994 is that of a majority owned subsidiary which
is required to file a separate federal return. The 1993 tax
provision relates to foreign taxes on foreign source income.
8. During 1994 the Company revised its estimate of the useful
lives of certain of the Commercial Services' machinery and
equipment to conform to its actual experience with fixed asset
lives. It was determined the useful lives of these assets
ranges from three to ten years as compared to the two to seven
year lives previously utilized. The effect of this change in
the first half of 1994 was to reduce depreciation expense and
net loss by approximately $781,000 or $.13 per share.
9. The Company is involved in various claims and lawsuits,
including contract disputes and claims based on allegations of
negligence and other tortious conduct. The Company is also
potentially liable for certain environmental, personal injury,
tax and contract dispute issues related to the prior operations
of divested businesses. In most cases, the Company has denied,
or believes it has a basis to deny, liability, and in some
cases has offsetting claims against the plaintiffs or third
parties. Damages currently claimed by the various plaintiffs
for these items which may not be covered by insurance aggregate
approximately $36,000,000 (including compensatory and possible
punitive damages and penalties).
A former subsidiary, which discontinued its business activities
in 1986, has been named as one of many defendants in civil
lawsuits which have been filed in various state courts against
manufacturers, distributors and installers of asbestos
products. (The subsidiary had discontinued the use of asbestos
products prior to being acquired by the Company.) The Company
has also been named as a defendant in several of these actions.
At the beginning of 1992, 395 claims had been filed and during
the year 1,761 additional claims were filed with 73 claims
being settled. In 1993, 657 additional claims were filed and
1,205 were settled. In the first six months of 1994, 601 new
claims were filed with seven claims being settled. Defense has
been tendered to and accepted by the Company's insurance
carriers. The former subsidiary was a nonmanufacturer that
installed or distributed industrial insulation products.
Accordingly, the Company strongly believes that the subsidiary
has substantial defenses against alleged secondary and indirect
liability. The Company has provided a reserve for the
estimated uninsured legal costs to defend the suits and the
estimated cost of reaching reasonable no-fault liability
settlements of $18,000,000 less estimated insurance coverages
of $11,000,000. The amount of the reserve has been estimated
based on the number of claims filed and settled to date, number
of claims outstanding, current estimates of future filings,
trends in costs and settlements, and the advice of the
insurance carriers and counsel.
A wholly-owned subsidiary acquired in 1991 is the subject of an
investigation by federal investigators who are reviewing the
appropriateness of pricing proposals submitted by the
subsidiary to a government agency prime contractor for software
development services. The Company and subsidiary are
cooperating with the investigators.
The Company is a party to other civil lawsuits which have
arisen in the normal course of business for which potential
liability, including costs of defense, are covered by insurance
policies.
The Company has also been notified of certain proposed tax
adjustments by the IRS relative to the deduction taken by the
Company for expenses incurred in the 1988 merger and a
tentative settlement is under review by Internal Revenue
Service.
The Company has recorded its best estimate of the liability
that will result from these matters. While it is not possible
to predict with certainty the outcome of the litigation and
other matters discussed above, it is the opinion of the
Company's management, based in part upon opinions of counsel,
insurance in force and the facts presently known, that
liabilities in excess of those recorded, if any, arising from
such matters would not have a material adverse effect on the
results of operations or consolidated financial position of the
Company.
A majority of the Company's business involves contracting with
departments and agencies of, and prime contractors to, the U.S.
government and as such are subject to possible termination for
the convenience of the government and to audit and possible
adjustment to give effect to unallowable costs under cost-type
contracts or to other regulatory requirements affecting both
cost-type and fixed-price contracts. In management's opinion,
there are no outstanding issues of this nature at June 30, 1994
that will have a material adverse effect on the Company's
consolidated financial position or results of operations.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion of financial condition and results of
operations should be read in conjunction with the 1993 Form 10-K.
Working capital at June 30, 1994 was $64.3 million compared to
$73.8 million at December 31, 1993, a decrease of $9.5 million.
The decrease was primarily attributable to a $8.0 million decrease
in accounts receivable and the reclassification from long-term to
current of the $18.6 million mortgage on the corporate
headquarters which was partially offset by a $12.5 million
reduction in current liabilities. (The mortgage matures in March
1995; however, it is the Company's intent to either refinance the
obligation or consummate a sale/leaseback arrangement.) At June
30, 1994, $126.3 million of cash, short-term investments and
accounts receivable is restricted as collateral for the Contract
Receivable Collateralized Notes. The Company had $5 million
available under a line of credit at June 30, 1994. The Company is
pursuing an extension to this line of credit which expires August
1, 1994.
Operating activities produced a positive cash flow of $8.0 million
for the first half of 1994 compared to $12.6 million for the
comparable period in 1993. Excluding the effect of the changes in
current assets and liabilities, operating activities produced a
positive cash flow of $13.3 million in 1994 compared to $6.2
million in 1993. This increase in operating cash flow results
primarily from a decrease in the net loss for the first half of
1994 compared to the first half of 1993. The 1994 net change in
current assets and liabilities resulted in a use of cash of $5.3
million compared to $6.4 million of cash provided in 1993.
Funds of $10.6 million were used for investing activities during
the first half of 1994. The principal use was the payment of
additional consideration related to a December 1993 acquisition
and investments in various companies or partnerships (see Note 4
to Notes to Consolidated Condensed Financial Statements).
Additionally, $2.1 million was expended for property and equipment
and $.6 million of contract phase-in costs were deferred and will
be amortized over the duration of the newly awarded contracts.
Financing activities provided funds of $4.2 million, principally
from the sale of stock to the Employee Stock Ownership Plan,
partially offset by payments on indebtedness and the purchase of
treasury stock.
At June 30, 1994, backlog (including option years on government
contracts) was $2.312 billion compared to $2.772 billion at
December 31, 1993.
Continuing its Value Improvement Program initiated in 1992, the
Company announced its intent to restructure its government
services operations in order to better serve the customer, enhance
operational efficiencies and address the declining business base
of certain of the existing operating units. Development of a
detailed plan and implementation of the new organization will be
carried out over the latter part of 1994; the restructuring is
expected to be fully in place by year end. Additionally, the
relocation to the new Miami wide body aircraft maintenance
facility provided increased workload over 1993, but has proven
inadequate to support the facility on a profitable basis and
management is currently evaluating its option to extend the lease
on this facility which expires December 31, 1994. At this time,
the Company is unable to determine if the balance of the reserve
established in 1992 will be sufficient to cover the costs of
closing the Miami facility (if Management so decides) and costs
incurred to implement the restructuring plan.
The Company is continuing its efforts with its investment bankers
to replace its high interest rate Junior Subordinated debentures
through the issuance of new senior notes or an initial public
offering of stock, or both.
<TABLE>
Results of Operations (Dollars in thousands)
<CAPTION>
Three Months Ended Six Months Ended
June 30, July 1, June 30, July 1,
1994 1993 Change 1994 1993 Change
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Government Services (GS) $198,572 $195,519 1.6% $391,161 $383,554 2.0%
Commercial Services (CS) 49,979 40,048 24.8% 116,928 83,573 39.9%
Gross Margin 11,757 9,508 23.7% 22,574 16,234 39.1%
As a percent of revenues 4.7% 4.0% 4.4% 3.5%
Selling and Corporate
Administrative Expenses 4,348 4,604 (5.6)% 8,545 9,499 (10.0)%
As a percent of revenues 1.7% 2.0% 1.7% 2.0%
Interest Expense (net) 6,148 5,453 12.7% 12,345 11,458 7.7%
Other Expenses 1,520 1,998(23.9)% 3,099 3,840 (19.3)%
Tax Provision 360 46 782.6% 544 98 555.1%
</TABLE>
Revenues for the second quarter and first half of 1994 were $248.6
million and $508.1 million; $13.0 million and $41.0 million
greater than comparable periods in 1993. The increase in
Government Services' revenues attributable to businesses acquired
in the fourth quarter of 1993 ($10.8 and $21.7 for the second
quarter and first half respectively) and new contract awards
(approximately $11.1 and $23.4 for the second quarter and first
half respectively) was substantially offset by declines from
contracts lost in recompetition and reduced level of effort on
continuing contracts. Commercial Services revenues were
significantly improved, primarily due to increased workload at the
Phoenix and Miami maintenance facilities as compared to the same
periods in 1993. Revenues for the second quarter and first half
for the maintenance operations were $19.4 million and $53.0
million as compared to 1993 revenues of $11.4 million and $26.1
million. The ground support services operations reported revenues
of $30.6 million and $63.9 million for the second quarter and
first half, up $1.9 million and $6.5 million over comparable
periods in 1993.
Government Services' gross margin for the second quarter was
virtually unchanged from that of 1993. Increased margins
attributable to acquisitions consummated late in 1993 and new
contract awards were offset by increased costs incurred to phase
in newly awarded contracts, lost contracts, reduced level of
effort on existing contracts and increased costs incurred in
support of proposal efforts. For the first half, Government
Services' gross margin was up 12.6% over 1993, with increases from
acquisitions and improved margins on contracts awarded and or
phased in during 1993 outpacing decreases from contract losses and
reduced level of effort. Commercial Services' gross margin was
significantly improved due to increased workload at the Phoenix
and Miami facilities and to a lesser degree by improved ground
services and fueling operations. Both groups were positively
impacted by a management decision to change the depreciable lives
of certain categories of fixed assets, the effect of which was
recorded in the second half, retroactive to January 1, 1994. (See
Note 8 to the Consolidated Condensed Financial Statements.) The
aircraft maintenance operations yielded a negative gross margin of
2.3% for the second quarter and .16% for the first half compared
to negative margins of 21.7% and 11.3% for comparable periods in
1993. Despite the improved performance over 1993, the Company is
continuing to pursue the possible sale or spinoff of all or a
portion of the aircraft maintenance unit.
Selling and corporate and administrative expense as a percent of
revenue was 1.7% for both the 1994 second quarter and first half
compared to 2.0% for the same periods in 1993. The elimination of
the Commercial Services Administrative group yielded reductions of
$.3 million and $.7 million for the second quarter and first half
respectively.
Interest income for both periods of 1994 was greater than
comparable periods of 1993 principally due to the compounding of
interest at 17% on the Cummings Point Industries, Inc. note
receivable.
Interest expense was $6.7 million and $13.4 million for the 1994
second quarter and first half respectively, up slightly from $6.3
million and $12.8 million from comparable periods in 1993.
Increases resulted from the compounding of interest on the 16%
pay-in-kind debentures as well as interest payments on real estate
mortgages assumed in conjunction with an acquisition in the fourth
quarter of 1993.
Other expense consists of the following major items (in
thousands):
Three Months Ended Six Months Ended
June 30, July 1, June 30, July 1,
1994 1993 1994 1993
Amortization of costs in
excess of net assets acquired $ 841 $ 774 $1,655 $1,548
Provision for nonrecovery of
receivables 265 67 588 334
ESOP repurchase premium 302 420 620 745
Costs, contract losses and
write-offs associated with
acquired businesses - 1,485 - 1,485
Other 112 (748) 236 (272)
$1,520 $1,998 $3,099 $3,840
The decrease in the 1994 second quarter and first half Other
expense is primarily due to write-offs recorded in 1993 related to
events which occurred prior to the acquisition of two businesses.
This decrease is offset by increases in both the second quarter
and first half of the provision for nonrecovery of receivables and
also by a smaller gain in the second quarter and a loss year-to-
date on the sale or retirement of fixed assets.
In summary, despite somewhat improved operating results, the
Company continues to be highly leveraged, and its ability to meet
future debt service and working capital requirements is dependent
on sustained increases in earnings, increased cash flow from
operations, and reduction of its debt, either through refinancing,
an initial public offering, or a combination of the two.
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings
This item is incorporated herein by reference to Note 9 to the
Consolidated Condensed Financial Statements included elsewhere in
this quarterly Report on Form 10-Q.
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 11 - Computations of Earnings Per Common Share
(b) Reports on Form 8-K
None filed during the quarter.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
DYNCORP
Date: August 11, 1994 T. E. Blanchard
T. E. Blanchard
Senior Vice President
and Chief Financial Officer
Date: August 11, 1994 G. A. Dunn
G. A. Dunn
Vice President and Controller
DYNCORP AND SUBSIDIARIES
COMPUTATIONS OF EARNINGS PER COMMON SHARE
(Dollars in Thousands Except Per Share Amounts)
Three Months Ended Six Months Ended
June 30, July 1, June 30, July 1,
1994 1993 1994 1993
PRIMARY AND FULLY DILUTED
Earnings:
Net loss $ (930) $(2,979) $(2,519) $(9,165)
Preferred stock Class C dividends not
accrued or paid 392 329 768 644
Net loss for common stockholder $(1,322) $(3,308) $(3,287) $(9,809)
Shares:
Weighted average common shares
outstanding 6,251,341 5,128,901 5,862,005 5,140,454
Net loss for common stockholders $ (0.21) $ (0.65) $ (0.56) $ (1.91)
