Cash Pay Advance

The increase was due to increased revenues resulting from the successful launch in the UK of the Company’s enhanced, fully-integrated version of the SportXction(R) System with Sportingbet and Ladbrokes, two of the world’s leading bookmakers, as well as revenue generated by a Purchase Order for software development to add additional features to the SportXction(R) System to satisfy the requirements of the Ontario Lottery and Gaming Corporation (OLG). On April 21, 2008, pursuant to a note purchase agreement, the Company sold $50,000 principal amount of 14% Non-Negotiable Promissory Notes due July 31, 2008 (the “Notes”) in a private placement exclusively to accredited investors who are existing stockholders. The purpose of the financing was to (i) temporarily address the Company’s liquidity crisis by providing working capital to enable the Company to continue its operations beyond April 2008 and (ii) pay past due and current accounts payable of the Company. The note purchase agreement provides that until the earlier of (a) payment of all principal and accrued interest on the Notes, or (b) August 1, 2008, the Company may not (i) declare or pay any cash dividends or make any cash distributions on its common stock or preferred stock or purchase or otherwise acquire for value, directly or indirectly, any of its outstanding common stock or preferred stock; or (ii) increase the salary of any Company officer above the salary which such officer is being paid as of the date of the Notes. During the three months ended March 31, 2008, the Company continued software development to add additional features to the SportXction(R) System in order to satisfy the requirements of OLG. Find Out More

No Tags