| Forecross Raises Cash and Converts Debt
April 4, 2000
Contact: Pat Dittmar (Pat@forecross.com)
|
SAN FRANCISCO, CA: Forecross® Corporation
(OTCBB: FRXX), a legacy to web and XML implementation solutions company, announced today
that it has raised $1,632,000.00 in cash and converted more than 80% of all of its debt,
short- and long-term, into equity in a private placement.
"This placement is a significant milestone," said Bernadette Castello, Chief
Financial Officer. "With this additional cash plus the interest expense reduction
from the debt conversion, the Company can begin to add sales and marketing resources to
more aggressively market its Legacy to Web and XML solutions. Units in the placement
consisted of one share plus one-half warrant and were priced at $2.66 per unit."
The following Pro Forma Balance Sheet shows the effect of the transaction and is based on
the Balance Sheet of the Company at December 31, 1999.
|
Three Months Ended December
31, 1999 |
Placement and Conversion |
Pro Forma Balance Sheet |
|
| ASSETS |
| Cash |
13,019 |
1,632,000 |
1,645,019 |
| Accounts receivable - trade |
411,940 |
|
411,940 |
| Other Current Assets |
27,656 |
|
27,656 |
| Total Current Assets |
452,615 |
1,632,000 |
2,084,615
|
| Equipment and furniture, net |
211,535 |
|
211,535 |
| Notes receivable from others |
69,642 |
|
69,642 |
| Other assets |
42,364 |
|
42,364 |
| Total Assets |
776,156 |
1,632,000 |
2,408,156 |
|
LIABILITIES
AND EQUITY |
Accounts payable
|
691,644 |
(61,350) |
630,294 |
Accrued compensation and related benefits
|
834,679
|
(461,667 |
373,012 |
Accrued liabilities
|
164,950 |
114,413 |
279,363 |
Accrued commissions and distributors' fees
|
1,731,571 |
(1,660,750) |
70,821 |
Payable to factor
|
442,943 |
|
442,943 |
Accrued warranty costs
|
198,233 |
|
198,233 |
Capital lease - current portion
|
24,067 |
|
24,067 |
Deferred revenue
|
692,087
|
|
692,087 |
| Total Current Liabilities |
4,780,174 |
(2,069,354) |
2,710,820
|
|
|
|
|
Deferred revenue, less current portion
|
839,166 |
|
839,166 |
Notes payable to officers, net
|
756,561 |
(758,242) |
(1,681) |
Capital lease - less current portion
|
13,718 |
|
13,718 |
| Total Liabilities |
6,389,619 |
(2,827,596) |
3,562,023 |
|
|
|
|
| Common Stock |
5,144,582 |
4,459,596 |
9,604,178 |
| Accumulated deficit |
(10,758,045) |
|
(10,758,045)
|
| Total Shareholders' Deficit |
(5,613,463) |
4,459,596 |
(1,153,867) |
| Total Liabilities and Shareholders' Deficit |
776,156 |
1,632,000 |
2,408,156 |
|
About Forecross
Founded in 1982 as a high-technology software development laboratory, Forecross
Corporation is dedicated to the design and development of innovative software to re-deploy
and sustain legacy applications on the Internet. Clients have included such leading
corporations as Aetna Life Insurance Company, Brown Brothers Harriman & Company,
Charles Schwab & Co., IBM Corporation and Bank of America NTSA for its re-deployment
software and services. Teaming partners of Forecross Corporation include KPMG Consulting,
Hitachi Data Systems, TRW, Inc. (BDM International), CIBER, Inc., SCB Computer Technology,
Inc., and Sapiens Americas (a subsidiary of Sapiens International).
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On Behalf of the Board of Directors,
Mr. Kim O. Jones
President and CEO
Forecross Corporation
|
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Except for historical information contained herein, the matters set
forth in this release are forward-looking statements that are dependent on certain risks
and uncertainties, including such factors, among others, as market acceptance, market
demand, pricing, changing regulatory environment, changing economic conditions, risks in
new product and service development, the effect of the company’s accounting policies
and other risk factors detailed in the Company’s SEC and BCSC filings.
The U.S. Securities and Exchange Commission has not reviewed and does
not accept responsibility for the adequacy or accuracy of this News Release, which has
been prepared by the Company.
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