x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE
ACT
OF 1934
|
FOR
THE PERIOD ENDED DECEMBER 31, 2005
OR
|
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE
ACT
OF 1934
|
FOR
THE TRANSITION PERIOD FROM ____________ TO ____________
|
|
COMMISSION
FILE NUMBER 0 - 1325
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Quarter
Ended
|
High
Bid
|
Low
Bid
|
|||||
March
31, 2005
|
$
|
1.75
|
$
|
1.33
|
|||
June
30, 2005
|
1.50
|
1.07
|
|||||
September
30, 2005
|
1.55
|
1.07
|
|||||
December
31, 2005
|
1.52
|
1.18
|
|||||
March
31, 2004
|
1.68
|
1.04
|
|||||
June
30, 2004
|
2.70
|
1.30
|
|||||
September
30, 2004
|
1.45
|
.96
|
|||||
December
31, 2004
|
1.78
|
1.01
|
Statement
of Operations Data
|
2005
|
2004
|
2003
|
2002
|
2001
|
Revenues
|
$16,515,426
|
$11,067,834
|
$1,441,118
|
$577,221
|
$265,996
|
Cost
of products and services (exclusive of depreciation and amortization
listed separately below)
|
$7,849,597
|
$5,943,395
|
$884,536
|
$418,093
|
$226,432
|
Selling,
general and administrative expenses
|
$9,723,132
|
$5,986,267
|
$2,647,870
|
$1,971,584
|
$2,555,144
|
%
of revenues
|
58.9%
|
54.1%
|
183.7%
|
341.6%
|
960.6%
|
Depreciation
and amortization
|
$4,780,436
|
$3,432,779
|
$1,065,650
|
$1,193,306
|
$1,165,610
|
Loss
from Operations
|
$(5,837,739)
|
$(4,294,607)
|
$(3,156,938)
|
$(3,005,762)
|
$(3,681,190)
|
Other
expense net
|
$(1,655,088)
|
$(1,032,035)
|
$(548,476)
|
$(1,439,069)
|
$(1,070,802)
|
Minority
interest in subsidiary
|
$0
|
$0
|
$33,366
|
$0
|
$0
|
Loss
before income tax
|
$(7,492,827)
|
$(5,326,642)
|
$(3,672,048)
|
$(4,444,831)
|
$(4,751,992)
|
Income
tax provision
|
$0
|
$0
|
$0
|
$0
|
$0
|
Loss
from continuing operations
|
$(7,492,827)
|
$(5,326,642)
|
$(3,672,048)
|
$(4,444,831)
|
$(4,751,992)
|
Discontinued
operations
|
$17,827
|
$(4,457,320)
|
$(692,956)
|
$6,772
|
$(573,560)
|
Net
loss
|
$(7,475,000)
|
$(9,783,962)
|
$(4,365,004)
|
$(4,438,059)
|
$(5,325,552)
|
Loss
attributable to common stockholders
|
$(10,827,229)
|
$(10,374,417)
|
$(4,613,693)
|
$(4,591,637)
|
$(5,758,221)
|
Loss
from continuing operations
|
$(.26)
|
$(.23)
|
$(.23)
|
$(.38)
|
$(.54)
|
Loss
from discontinued operations
|
$ -
|
$(.19)
|
$(.04)
|
$ -
|
$(.07)
|
Loss
attributable to commons stockholders
|
$(.37)
|
$(.45)
|
$(.29)
|
$(.39)
|
$(.66)
|
Weighted
average shares outstanding
|
29,097,923
|
23,307,594
|
16,112,231
|
11,735,095
|
8,762,814
|
Balance
Sheet Data
|
2005
|
2004
|
2003
|
2002
|
2001
|
Working
Capital (deficiency)
|
($971,418)
|
($8,931,414)
|
$1,118,792
|
($252,870)
|
$426,549
|
Total
Assets
|
$26,271,405
|
$26,633,712
|
$13,902,885
|
$10,347,316
|
$12,209,681
|
Long-Term
Debt, net
|
$3,816,536
|
$3,498,657
|
$2,262,891
|
$3,273,350
|
$3,311,870
|
Stockholders’
Equity
|
$14,968,295
|
$8,549,431
|
$5,807,711
|
$2,642,285
|
$4,184,001
|
Revenues
|
2005
|
2004
|
|||||
Multiband
|
0.00
|
%
|
0.00
|
%
|
|||
MCS
|
48.10
|
%
|
47.23
|
%
|
|||
MDU
|
51.90
|
%
|
52.77
|
%
|
|||
Total
Revenues
|
100.00
|
%
|
100.00
|
%
|
|||
Cost
of Products and Services (exclusive of depreciation and
amortization)
|
|||||||
Multiband
|
0.00
|
%
|
0.00
|
%
|
|||
MCS
|
26.23
|
%
|
24.68
|
%
|
|||
MDU
|
21.30
|
%
|
29.02
|
%
|
|||
Total
Cost of Products and Services (exclusive of depreciation and
amortization)
|
47.53
|
%
|
53.70
|
%
|
|||
Selling,
General and Administrative Expenses
|
58.87
|
%
|
54.09
|
%
|
|||
Loss
from Continuing Operations
|
(45.37
|
%)
|
(48.12
|
%)
|
|||
Income
(Loss) from Discontinued Operations
|
.11
|
%
|
(40.27
|
%)
|
|||
Net
Loss
|
(45.26
|
%)
|
(88.40
|
%)
|
Revenues
|
2004
|
2003
|
|||||
Multiband
|
0.00
|
%
|
0.00
|
%
|
|||
MCS
|
47.23
|
%
|
100.00
|
%
|
|||
MDU
|
52.77
|
%
|
-
|
%
|
|||
Total
Revenues
|
100.00
|
%
|
100.00
|
%
|
|||
Cost
of Products and Services (exclusive of depreciation and
amortization)
|
|||||||
Multiband
|
0.00
|
%
|
0.00
|
%
|
|||
MCS
|
24.68
|
%
|
61.38
|
%
|
|||
MDU
|
29.02
|
%
|
-
|
%
|
|||
Total
Cost of Products and Services (exclusive of depreciation and
amortization)
|
53.70
|
%
|
61.38
|
%
|
|||
Selling,
General and Administrative Expenses
|
54.09
|
%
|
183.73
|
%
|
|||
Loss
from Continuing Operations
|
(48.12
|
%)
|
(254.81
|
%)
|
|||
Loss
from Discontinued Operations
|
(40.27
|
%)
|
(48.08
|
%)
|
|||
Net
Loss
|
(88.40
|
%)
|
(302.89
|
%)
|
Dec.
31,
|
Sept.
30,
|
Jun.
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
Jun.
30,
|
Mar.
31,
|
|
2005
|
2005
|
2005
|
2005
|
2004
|
2004
|
2004
|
2004
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Multiband
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
MCS
|
1,817,584
|
2,166,218
|
2,081,147
|
1,878,317
|
1,631,643
|
1,795,967
|
1,037,431
|
762,655
|
MDU
|
2,549,700
|
2,091,442
|
2,102,459
|
1,828,559
|
1,843,933
|
2,122,375
|
1,873,830
|
—
|
Total
Revenues
|
4,367,284
|
4,257,660
|
4,183,606
|
3,706,876
|
3,475,576
|
3,918,342
|
2,911,261
|
762,655
|
Costs
of products & services (exclusive of depreciation and amortization
shown separately below)
|
1,963,215
|
2,303,357
|
1,703,517
|
1,879,508
|
1,889,980
|
1,952,631
|
1,712,280
|
410,962
|
SG&A
expense
|
2,745,235
|
2,453,410
|
2,377,575
|
2,146,912
|
2,148,570
|
1,845,547
|
1,137,780
|
828,153
|
Depreciation
& amortization
|
1,157,514
|
1,255,188
|
1,218,867
|
1,148,867
|
881,826
|
1,048,031
|
1,150,677
|
352,245
|
Operating
loss
|
(1,498,680)
|
(1,754,295)
|
(1,116,353)
|
(1,468,411)
|
(1,444,800)
|
(927,867)
|
(1,089,476)
|
(828,705)
|
Interest
expense
|
(288,196)
|
(536,000)
|
(373,013)
|
(685,701)
|
(382,854)
|
(254,314)
|
(188,986)
|
(229,334)
|
Other
income (expenses)
|
67,793
|
77,737
|
70,120
|
12,172
|
13,403
|
(15,423)
|
6,851
|
14,863
|
Minority
expense
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Net
loss before tax
|
(1,719,083)
|
(2,212,558)
|
(1,419,246)
|
(2,141,940)
|
(1,814,251)
|
(1,197,604)
|
(1,271,611)
|
(1,043,176)
|
Income
tax (benefit) provision
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Loss
from continuing operations
|
(1,719,083)
|
(2,212,558)
|
(1,419,246)
|
(2,141,940)
|
(1,814,251)
|
(1,197,604)
|
(1,271,611)
|
(1,043,176)
|
Discontinued
operations
|
87,954
|
248,249
|
122,892
|
(441,268)
|
(3,149,780)
|
(653,989)
|
(179,863)
|
(473,688)
|
Net
loss
|
(1,631,129)
|
(1,964,309)
|
(1,296,354)
|
(2,583,208)
|
(4,964,031)
|
(1,851,593)
|
(1,451,474)
|
(1,516,864)
|
Loss
attributable to commons stockholders
|
(2,018,460)
|
(3,328,489)
|
(1,965,988)
|
(3,514,292)
|
(5,012,847)
|
(1,935,306)
|
(1,846,747)
|
(1,579,517)
|
Loss
from continuing operations
|
$(.05)
|
$(.08)
|
$(.05)
|
$(.08)
|
$(.07)
|
$(.05)
|
$(.06)
|
$(.05)
|
Loss
from discontinued operations
|
$(.00)
|
$.01
|
$(.00)
|
$(.01)
|
$(.12)
|
$(.02)
|
$(.00)
|
$(.03)
|
Net
loss
|
$(.05)
|
$(.07)
|
(.05)
|
$(.09)
|
$(.19)
|
$(.07)
|
$(.06)
|
$(.08)
|
Loss
attributable to commons stockholders
|
$(.06)
|
$(.11)
|
(.07)
|
$(.13)
|
$(.20)
|
$(.08)
|
$(08)
|
$(.08)
|
Weighted
average shares outstanding
|
31,142,424
|
29,352,257
|
29,634,502
|
27,216,574
|
25,683,336
|
25,480,077
|
22,689,301
|
19,280,632
|
Total
|
1
Year or Less
|
2-3
Years
|
Over
3 Years
|
|
Operating
Lease
|
$6,805,000
|
$614,000
|
$1,446,000
|
$4,745,000
|
Capital
Leases
|
705,139
|
220,487
|
462,386
|
22,266
|
Long-Term
Debt
|
6,542,228
|
1,484,459
|
2,071,280
|
2,986,489
|
Note
Payable Stockholder
|
32,837
|
32,837
|
—
|
—
|
Totals
|
$14,085,204
|
$2,351,783
|
$3,979,666
|
$7,753,755
|
1
|
|
Financial
Statements
|
|
2
- 3
|
|
4
|
|
5
- 13
|
|
14
|
|
15
- 42
|
|
Supplemental
Information
|
|
43
|
|
44
|
|
2005
|
2004
|
|||||
CURRENT
ASSETS
|
|
|
|||||
Cash
and cash equivalents
|
|
$
|
3,100,427
|
|
$
|
726,553
|
|
Certificate
of deposit
|
|
|
—
|
|
|
650,000
|
|
Accounts
receivable, net
|
|
|
2,367,864
|
|
|
2,783,774
|
|
Inventories
|
|
|
241,015
|
|
|
231,993
|
|
Current
assets of discontinued operations
|
|
|
—
|
|
|
634,307
|
|
Prepaid
expenses and other
|
|
|
216,885
|
|
|
146,334
|
|
Current
portion of notes receivable
|
|
|
11,316
|
|
|
—
|
|
Total
Current Assets
|
|
|
5,937,507
|
|
|
5,172,961
|
|
PROPERTY
AND EQUIPMENT, NET
|
|
|
5,247,240
|
|
|
4,372,474
|
|
OTHER
ASSETS
|
|
|
|
|
|
|
|
Goodwill
|
|
|
954,871
|
|
|
812,366
|
|
Intangible
assets, net
|
|
|
13,923,542
|
|
|
16,081,635
|
|
Other
assets of discontinued operations
|
|
|
—
|
|
|
47,975
|
|
Notes
receivable - long-term, net
|
|
|
61,341
|
|
|
—
|
|
Other
assets
|
|
|
146,904
|
|
|
146,301
|
|
Total
Other Assets
|
|
|
15,086,658
|
|
|
17,088,277
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
|
26,271,405
|
|
$
|
26,633,712
|
|
2005
|
2004
|
|||||
CURRENT
LIABILITIES
|
|
|
|
|
|
||
Checks
issued in excess of cash in bank
|
|
$
|
93,005
|
|
$
|
234,348
|
|
Mandatory
redeemable preferred stock, 33,334 and 50,000 Class F preferred
shares
|
|
|
333,334
|
|
|
500,000
|
|
Short-term
debt
|
|
|
—
|
|
|
3,981,099
|
|
Wholesale
line of credit
|
|
|
—
|
|
|
926,201
|
|
Current
portion of long-term debt
|
|
|
616,260
|
|
|
1,524,527
|
|
Current
portion of note payable - stockholder
|
|
|
32,837
|
|
|
84,801
|
|
Current
portion of capital lease obligations
|
|
|
179,932
|
|
|
201,530
|
|
Accounts
payable
|
|
|
1,761,249
|
|
|
2,561,611
|
|
Accrued
liabilities
|
|
|
2,741,054
|
|
|
3,030,024
|
|
Contingent
liability
|
|
|
—
|
|
|
222,700
|
|
Customer
deposits
|
|
|
64,161
|
|
|
59,875
|
|
Current
liabilities of discontinued operations
|
|
|
500,000
|
|
|
370,921
|
|
Deferred
service obligations and revenue
|
|
|
587,093
|
|
|
406,738
|
|
Total
Current Liabilities
|
|
|
6,908,925
|
|
|
14,104,375
|
|
LONG-TERM
LIABILITIES
|
|
|
|
|
|
|
|
Long-term
debt, net
|
|
|
3,816,536
|
|
|
3,498,657
|
|
Capital
lease obligations, net of current portion
|
|
|
452,649
|
|
|
481,249
|
|
Long-term
liabilities of discontinued operations
|
|
|
125,000
|
|
|
—
|
|
Total
Liabilities
|
|
|
11,303,110
|
|
|
18,084,281
|
|
COMMITMENTS
AND CONTINGENCIES
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
Cumulative
convertible preferred stock, no par value:
|
|
|
|
|
|
|
|
8%
Class A ( 27,931 and 27,931 shares issued and outstanding, $293,276
and
$293,276 liquidation preference)
|
|
|
419,752
|
|
|
419,752
|
|
10%
Class B (8,390 and 8,700 shares issued and outstanding, $88,095 and
$91,350 liquidation preference)
|
|
|
58,900
|
|
|
62,000
|
|
10%
Class C (125,050 and 125,400 shares issued and outstanding, $1,250,500
and
$1,254,000 liquidation preference)
|
|
|
1,607,605
|
|
|
1,611,105
|
|
10%
Class F (150,000 and 150,000 shares issued and outstanding, $1,500,000
and
$1,500,000 liquidation preference)
|
|
|
1,500,000
|
|
|
1,500,000
|
|
8%
Class G (45,245 and 45,245 shares issued and outstanding, $452,450
and
$452,450 liquidation preference)
|
|
|
179,897
|
|
|
179,897
|
|
6%
Class H (2.0 and 11.5 shares issued and outstanding, $200,000 and
$1,150,000 liquidation preference)
|
|
|
—
|
|
|
—
|
|
Variable
rate % Class I (90,000 and 0 shares issued and outstanding, $9,000,000
and
$0 liquidation preference)
|
|
|
—
|
|
|
—
|
|
Common
stock, no par value (32,134,558 and 25,784,490 shares issued; 32,134,558
and 25,781,818 shares outstanding)
|
|
|
22,801,405
|
|
|
16,888,291
|
|
Stock
subscriptions receivable
|
|
|
(297,105
|
)
|
|
(391,264
|
)
|
Options
and warrants
|
|
|
44,259,540
|
|
|
32,985,983
|
|
Unamortized
compensation
|
|
|
(29,861
|
)
|
|
(1,724
|
)
|
Accumulated
deficit
|
|
|
(55,531,838
|
)
|
|
(44,704,609
|
)
|
Total
Stockholders' Equity
|
|
|
14,968,295
|
|
|
8,549,431
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
26,271,405
|
|
$
|
26,633,712
|
|
|
|
2005
|
|
2004
|
|
2003
|
|
|||
|
|
|
|
|
|
|
|
|||
REVENUES
|
|
$
|
16,515,426
|
|
$
|
11,067,834
|
|
$
|
1,441,118
|
|
COSTS
AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Cost
of products and services
(exclusive of depreciation and amortization shown separately
below)
|
|
|
7,849,597
|
|
|
5,943,395
|
|
|
884,536
|
|
Selling,
general and administrative
|
|
|
9,723,132
|
|
|
5,986,267
|
|
|
2,647,870
|
|
Depreciation
and amortization
|
|
|
4,780,436
|
|
|
3,432,779
|
|
|
1,065,650
|
|
Total
costs and expenses
|
|
|
22,353,165
|
|
|
15,362,441
|
|
|
4,598,056
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS
FROM OPERATIONS
|
|
|
(5,837,739
|
)
|
|
(4,294,607
|
)
|
|
(3,156,938
|
)
|
OTHER
INCOME (EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(1,882,910
|
)
|
|
(1,055,488
|
)
|
|
(488,156
|
)
|
Interest
income
|
|
|
126,158
|
|
|
8,805
|
|
|
10,406
|
|
Other
income
|
|
|
101,664
|
|
|
14,648
|
|
|
(70,726
|
)
|
Total
Other Expense
|
|
|
(1,655,088
|
)
|
|
(1,032,035
|
)
|
|
(548,476
|
)
|
LOSS
BEFORE MINORITY INTEREST IN SUBSIDIARY
|
|
|
(7,492,827
|
)
|
|
(5,326,642
|
)
|
|
(3,705,414
|
)
|
Minority
interest in subsidiary
|
|
|
—
|
|
|
—
|
|
|
33,366
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS
FROM CONTINUING OPERATIONS
|
|
|
(7,492,827
|
)
|
|
(5,326,642
|
)
|
|
(3,672,048
|
)
|
GAIN
(LOSS)
FROM DISCONTINUED OPERATIONS
|
|
|
17,827
|
|
|
(4,457,320
|
)
|
|
(692,956
|
)
|
|
|
|
|
|
|
|
|
|
|
|
NET
LOSS
|
|
|
(7,475,000
|
)
|
|
(9,783,962
|
)
|
|
(4,365,004
|
)
|
Preferred
stock dividends
|
|
|
3,352,229
|
|
|
590,455
|
|
|
248,689
|
|
LOSS
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
|
$
|
(10,827,229
|
)
|
$
|
(10,374,417
|
)
|
$
|
(4,613,693
|
)
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
AND DILUTED LOSS PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
|
LOSS
FROM CONTINUING OPERATIONS
|
|
$
|
(.26
|
)
|
$
|
(.23
|
)
|
$
|
(.23
|
)
|
GAIN
(LOSS) LOSS FROM DISCONTINUED OPERATIONS
|
|
$
|
—
|
|
$
|
(.19
|
)
|
$
|
(.04
|
)
|
NET
LOSS
|
|
$
|
(.26
|
)
|
$
|
(.42
|
)
|
$
|
(.27
|
)
|
LOSS
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
|
$
|
(.37
|
)
|
$
|
(.45
|
)
|
$
|
(.29
|
)
|
WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING - BASIC AND
DILUTED
|
|
|
29,097,923
|
|
|
23,307,594
|
|
|
16,112,231
|
|
8%
Class A
|
10%
Class B
|
10%
Class C
|
15%
Class E
|
||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||||||||||||
BALANCES,
December 31, 2002
|
27,831
|
$
|
418,252
|
6,200
|
$
|
62,000
|
131,510
|
$
|
1,699,407
|
70,000
|
$
|
395,778
|
|||||||||||||
Stock
issued:
|
|||||||||||||||||||||||||
Cash
|
100
|
1,000
|
2,500
|
25,000
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Exercise
of warrants
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Cashless
exercise of warrants
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Exercise
of stock options
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Reduction
of stock subscriptions receivable for fees related to equity
transactions
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition
of assets
|
—
|
—
|
—
|
—
|
—
|
—
|
7,650
|
76,500
|
|||||||||||||||||
Conversion
of accounts payable
|
—
|
—
|
—
|
—
|
7,200
|
72,000
|
—
|
—
|
|||||||||||||||||
Conversion
of notes payable
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of accrued interest
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of preferred stock
|
—
|
—
|
—
|
—
|
(4,000
|
)
|
(40,000
|
)
|
—
|
—
|
|||||||||||||||
Conversion
of dividends payable
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
-
|
|||||||||||||||||
Redemption
of preferred stock
|
—
|
—
|
—
|
—
|
(9,310
|
)
|
(93,100
|
)
|
—
|
—
|
|||||||||||||||
Intrinsic
value of convertible feature
|
—
|
500
|
—
|
—
|
—
|
(27,202
|
)
|
—
|
—
|
||||||||||||||||
Discount
on preferred stock related to warrants issued
|
—
|
—
|
—
|
(25,000
|
)
|
—
|
—
|
—
|
(33,314
|
)
|
|||||||||||||||
Stock
subscriptions receivable:
|
|||||||||||||||||||||||||
Cash
payments
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Increase
reserve
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Interest
collected
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Warrants
issued:
|
|||||||||||||||||||||||||
Preferred
stock
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Common
stock
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Debt
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Services
rendered
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Deferred
compensation expense related to stock options issued below fair market
value
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Deferred
compensation expense
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Restricted
stock:
|
|||||||||||||||||||||||||
Forfeited
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Amortization
expense
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Embedded
value with Laurus warrants
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Preferred
stock dividends
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Net
loss
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
BALANCES,
December 31, 2003
|
27,931
|
$
|
419,752
|
8,700
|
$
|
62,000
|
125,400
|
$
|
1,611,105
|
77,650
|
$
|
438,964
|
8%
Class A
|
10%
Class B
|
10%
Class C
|
15%
Class E
|
||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||||||||||||
Stock
issued:
|
|||||||||||||||||||||||||
Cash
|
—
|
$
|
—
|
—
|
$
|
—
|
—
|
$
|
—
|
—
|
$
|
—
|
|||||||||||||
Exercise
of warrants
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Cashless
exercise of warrants
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Reduction
of stock subscriptions receivable for fees related to equity
transactions
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition
of assets - remaining 50% ownership of MBUSA
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition
of assets - URON, Inc.
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition
of assets - Satellite Broadcasting Corporation and
affiliates
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition
of assets - Minnesota Digital Universe, Inc.
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition
of assets - Rainbow Satellite Group, LLC.
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition
of assets - 21st Century Satellite
Communications
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Property
and equipment
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of notes payable
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of accrued interest
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of preferred stock
|
—
|
—
|
—
|
—
|
—
|
—
|
(77,650
|
)
|
(438,964
|
)
|
|||||||||||||||
Conversion
of dividends payable
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
In
lieu of cash for services
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
In
lieu of cash for other current assets
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Stock
repurchase
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of preferred stock into mandatory redeemable preferred
stock
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Intrinsic
value of convertible feature
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Discount
on preferred stock related to warrants issued
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Stock
subscriptions receivable:
|
|||||||||||||||||||||||||
Cash
payments
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Interest
collected
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Warrants
issued for debt modification
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Deferred
compensation expense related to stock options issued below fair market
value
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Deferred
compensation expense
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Restricted
stock:
|
|||||||||||||||||||||||||
Forfeited
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Amortization
expense
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Preferred
stock dividends
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Net
loss
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
BALANCES,
December 31, 2004
|
27,931
|
$
|
419,752
|
8,700
|
$
|
62,000
|
125,400
|
$
|
1,611,105
|
—
|
$
|
—
|
8%
Class A
|
|
10%
Class B
|
|
10%
Class C
|
|
15%
Class E
|
|
||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|||||||||
Stock
issued:
|
|||||||||||||||||||||||||
Cash
|
—
|
$
|
—
|
—
|
$
|
—
|
—
|
$
|
—
|
—
|
$
|
—
|
|||||||||||||
Exercise
of warrants
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Cashless
exercise of warrants
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Exercise
of options
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Reduction
of stock subscriptions receivable for fees related to equity
transactions
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition
of assets - Dinamo Entertainment, LLC.
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition
of assets - Satellite Broadcasting Corporation and
affiliates
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of notes payable
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of accrued interest
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of preferred stock
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of dividends payable
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
In
lieu of cash for services
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
In
lieu of cash for other current assets
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
In
lieu of cash for deferred financing costs
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Redemption
of preferred stock
|
—
|
—
|
(310
|
)
|
(3,100
|
)
|
(350
|
)
|
(3,500
|
)
|
—
|
—
|
|||||||||||||
Discount
on preferred stock related to warrants issued
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Stock
subscriptions receivable:
|
|||||||||||||||||||||||||
Cash
payments
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Interest
collected
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Increase
in reserve
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Warrants
issued for services
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Warrants
issued in connection with deferred compensation
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Restricted
stock forfeited
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Preferred
stock dividends
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Net
loss
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
BALANCES,
December 31, 2005
|
27,931
|
$
|
419,752
|
8,390
|
$
|
58,900
|
125,050
|
$
|
1,607,605
|
—
|
$
|
—
|
10%
Class F
|
8%
Class G
|
6%
Class H
|
%
Class I
|
||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||||||||||||
BALANCES,
December 31, 2002
|
—
|
$
|
—
|
—
|
$
|
—
|
—
|
$
|
—
|
—
|
$
|
—
|
|||||||||||||
Stock
issued:
|
|
|
|||||||||||||||||||||||
Cash
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Exercise
of warrants
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Cashless
exercise of warrants
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Exercise
of stock options
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Reduction
of stock subscriptions receivable for fees related to equity
transactions
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition
of assets
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of accounts payable
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of notes payable
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of accrued interest
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of preferred stock
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of dividends payable
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
Redemption
of preferred stock
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Intrinsic
value of convertible feature
|
—
|
—
|
—
|
—
|
—
|
—
|
——
|
—
|
|||||||||||||||||
Discount
on preferred stock related to warrants issued
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Stock
subscriptions receivable:
|
|
|
|
|
|
|
|
||||||||||||||||||
Cash
payments
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Increase
reserve
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Interest
collected
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Warrants
issued:
|
|||||||||||||||||||||||||
Preferred
stock
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Common
stock
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Debt
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Services
rendered
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Deferred
compensation expense related to stock options issued below fair market
value
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Deferred
compensation expense
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Restricted
stock:
|
|||||||||||||||||||||||||
Forfeited
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Amortization
expense
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Embedded
value with Laurus warrants
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Preferred
stock dividends
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Net
loss
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
BALANCES,
December 31, 2003
|
—
|
$
|
—
|
—
|
$
|
—
|
—
|
$
|
—
|
—
|
$
|
—
|
10%
Class F
|
8%
Class G
|
6%
Class H
|
%
Class I
|
||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||||||||||||
Stock
issued:
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Cash
|
—
|
$
|
—
|
40,245
|
$
|
353,382
|
11.5
|
$
|
984,173
|
—
|
$
|
—
|
|||||||||||||
Exercise
of warrants
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Cashless
exercise of warrants
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Reduction
of stock subscriptions receivable for fees related to equity
transactions
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition
of assets - remaining 50% ownership of MBUSA
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition
of assets - URON, Inc.
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition
of assets - Satellite Broadcasting Corporation and
affiliates
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition
of assets - Minnesota Digital Universe, Inc.
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition
of assets - Rainbow Satellite Group, LLC.
|
200,000
|
2,000,000
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition
of assets - 21st
Century Satellite Communications
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Property
and equipment
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of notes payable
|
—
|
—
|
5,000
|
50,000
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of accrued interest
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of preferred stock
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of dividends payable
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
In
lieu of cash for services
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
In
lieu of cash for other current assets
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Stock
repurchase
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of preferred stock into mandatory
redeemable preferred stock
|
(50,000
|
)
|
(500,000
|
)
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Intrinsic
value of convertible feature
|
—
|
—
|
—
|
(54,182
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||
Discount
on preferred stock related to warrants issued
|
—
|
—
|
—
|
(169,303
|
)
|
—
|
(984,173
|
)
|
—
|
—
|
|||||||||||||||
Stock
subscriptions receivable:
|
|
|
|||||||||||||||||||||||
Cash
payments
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Interest
collected
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Warrants
issued for debt modification
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Deferred
compensation expense related to stock options issued below fair market
value
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Deferred
compensation expense
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Restricted
stock:
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Forfeited
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Amortization
expense
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Preferred
stock dividends
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Net
loss
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
BALANCES,
December 31, 2004
|
150,000
|
$
|
1,500,000
|
45,245
|
$
|
179,897
|
11.5
|
$
|
—
|
—
|
$
|
—
|
10%
Class F
|
8%
Class G
|
6%
Class H
|
%
Class I
|
||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||||||||||||
Stock
issued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cash
|
—
|
$
|
—
|
—
|
$
|
—
|
—
|
$
|
—
|
100,000
|
$
|
9,480,000
|
|||||||||||||
Exercise
of warrants
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Cashless
exercise of warrants
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Exercise
of options
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Reduction
of stock subscriptions
receivable for fees related to equity transactions
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition
of assets - Dinamo Entertainment, LLC.
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition
of assets - Satellite Broadcasting Corporation and
affiliates
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of notes payable
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Conversion
of accrued interest
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
Conversion
of preferred stock
|
—
|
—
|
—
|
—
|
(9.5
|
)
|
—
|
(10,000
|
)
|
—
|
|||||||||||||||
Conversion
of dividends payable
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
In
lieu of cash for services
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
In
lieu of cash for other current assets
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
In
lieu of cash for deferred financing costs
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Redemption
of preferred stock
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Discount
on preferred stock related to warrants issued
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(9,480,000
|
)
|
||||||||||||||||
Stock
subscriptions receivable:
|
|
|
|
|
|
|
|
||||||||||||||||||
Cash
payments
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Interest
collected
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Increase
in reserve
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Warrants
issued for services
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Warrants
issued in connection with deferred compensation
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Restricted
stock forfeited
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Preferred
stock dividends
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Net
loss
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
BALANCES,
December 31, 2005
|
150,000
|
$
|
1,500,000
|
45,245
|
$
|
179,897
|
2
|
$
|
—
|
90,000
|
$
|
—
|
Common
Stock
|
Stock
Subscriptions
|
Options
and
|
Unamortized
|
Accumulated
|
||||||||||||||||||
Shares
|
Amount
|
Receivable
|
Warrants
|
Compensation
|
Deficit
|
Total
|
||||||||||||||||
BALANCES,
December 31, 2002
|
13,110,477
|
$
|
4,465,832
|
$
|
(633,195
|
)
|
$
|
26,632,299
|
$
|
(682,089
|
)
|
$
|
(29,715,999
|
)
|
$
|
2,642,285
|
||||||
Stock
issued:
|
||||||||||||||||||||||
Cash
|
4,477,279
|
1,947,197
|
—
|
—
|
—
|
—
|
1,973,197
|
|||||||||||||||
Exercise
of warrants
|
258,790
|
262,030
|
—
|
—
|
—
|
—
|
262,030
|
|||||||||||||||
Cashless
exercise of warrants
|
141,529
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Exercise
of stock options
|
3,000
|
3,750
|
—
|
—
|
—
|
—
|
3,750
|
|||||||||||||||
Reduction
of stock subscriptions receivable for fees related to equity
transactions
|
—
|
(36,977
|
)
|
36,977
|
—
|
—
|
—
|
—
|
||||||||||||||
Acquisition
of assets
|
—
|
—
|
—
|
—
|
—
|
—
|
76,500
|
|||||||||||||||
Conversion
of accounts payable
|
85,000
|
120,690
|
—
|
—
|
—
|
—
|
192,690
|
|||||||||||||||
Conversion
of notes payable
|
654,202
|
762,000
|
—
|
—
|
—
|
—
|
762,000
|
|||||||||||||||
Conversion
of accrued interest
|
63,539
|
66,172
|
—
|
—
|
—
|
—
|
66,172
|
|||||||||||||||
Conversion
of preferred stock
|
66,666
|
40,000
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Conversion
of dividends payable
|
187,164
|
113,209
|
—
|
—
|
—
|
—
|
113,209
|
|||||||||||||||
Redemption
of preferred stock
|
—
|
—
|
—
|
—
|
—
|
—
|
(93,100
|
)
|
||||||||||||||
Intrinsic
value of convertible feature
|
—
|
—
|
—
|
—
|
—
|
(500
|
)
|
(27,202
|
)
|
|||||||||||||
Discount
on preferred stock related to warrants issued
|
—
|
—
|
—
|
—
|
—
|
—
|
(58,314
|
)
|
||||||||||||||
Stock
subscriptions receivable:
|
||||||||||||||||||||||
Cash
payments
|
—
|
—
|
105,806
|
—
|
—
|
—
|
105,806
|
|||||||||||||||
Increase
reserve
|
—
|
—
|
71,000
|
—
|
—
|
—
|
71,000
|
|||||||||||||||
Interest
collected
|
—
|
—
|
1,327
|
—
|
—
|
—
|
1,327
|
|||||||||||||||
Warrants
issued:
|
||||||||||||||||||||||
Preferred
stock
|
—
|
—
|
—
|
58,314
|
—
|
—
|
58,314
|
|||||||||||||||
Common
stock
|
—
|
—
|
—
|
2,050,507
|
—
|
—
|
2,050,507
|
|||||||||||||||
Debt
|
—
|
—
|
—
|
883,711
|
—
|
—
|
883,711
|
|||||||||||||||
Services
rendered
|
—
|
—
|
—
|
321,920
|
—
|
—
|
321,920
|
|||||||||||||||
Deferred
compensation expense related to stock options issued below fair market
value
|
—
|
—
|
—
|
—
|
367
|
—
|
367
|
|||||||||||||||
Deferred
compensation expense
|
—
|
—
|
—
|
—
|
47,114
|
—
|
47,114
|
|||||||||||||||
Restricted
stock:
|
||||||||||||||||||||||
Forfeited
|
(10,841
|
)
|
(17,398
|
)
|
—
|
—
|
17,398
|
—
|
—
|
|||||||||||||
Amortization
expense
|
—
|
—
|
—
|
—
|
400,000
|
—
|
400,000
|
|||||||||||||||
Embedded
value with Laurus warrants
|
—
|
—
|
—
|
568,121
|
—
|
—
|
568,121
|
|||||||||||||||
Preferred
stock dividends
|
—
|
—
|
—
|
—
|
—
|
(248,689
|
)
|
(248,689
|
)
|
|||||||||||||
Net
loss
|
—
|
—
|
—
|
—
|
—
|
(4,365,004
|
)
|
(4,365,004
|
)
|
|||||||||||||
BALANCES,
December 31, 2003
|
19,036,805
|
$
|
7,726,505
|
$
|
(418,085
|
)
|
$
|
30,514,872
|
$
|
(217,210
|
)
|
$
|
(34,330,192
|
)
|
$
|
5,807,711
|
Common
Stock
|
||||||||||||||||||||||
Stock
issued:
|
Shares
|
Amount
|
Stock
Subscriptions
Receivable
|
Options
and
Warrants
|
Unamortized
Compensation
|
Accumulated
Deficit
|
Total
|
|||||||||||||||
Cash
|
2,001,832
|
$
|
2,059,093
|
$
|
—
|
$
|
791,483
|
$
|
—
|
$
|
—
|
$
|
4,188,131
|
|||||||||
Exercise
of warrants
|
273,403
|
390,279
|
—
|
—
|
—
|
—
|
390,279
|
|||||||||||||||
Cashless
exercise of warrants
|
133,742
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Reduction
of stock subscriptions receivable for fees related to equity
transactions
|
—
|
(17,320
|
)
|
17,320
|
—
|
—
|
—
|
—
|
||||||||||||||
Acquisition
of assets - remaining 50% ownership of MBUSA
|
30,000
|
39,000
|
—
|
—
|
—
|
—
|
39,000
|
|||||||||||||||
Acquisition
of assets - URON, Inc.
|
180,000
|
235,800
|
—
|
—
|
—
|
—
|
235,800
|
|||||||||||||||
Acquisition
of assets - Satellite Broadcasting Corporation and
affiliates
|
135,076
|
270,152
|
—
|
—
|
—
|
—
|
270,152
|
|||||||||||||||
Acquisition
of assets - Minnesota Digital Universe, Inc.
|
2,300,000
|
3,960,000
|
—
|
—
|
—
|
—
|
3,960,000
|
|||||||||||||||
Acquisition
of assets - Rainbow Satellite Group, LLC.
|
—
|
—
|
—
|
—
|
—
|
—
|
2,000,000
|
|||||||||||||||
Acquisition
of assets - 21st
Century Satellite Communications
|
230,333
|
364,584
|
—
|
—
|
—
|
—
|
364,584
|
|||||||||||||||
Property
and equipment
|
11,800
|
15,530
|
—
|
—
|
—
|
—
|
15,530
|
|||||||||||||||
Conversion
of notes payable
|
407,051
|
580,909
|
—
|
—
|
—
|
—
|
630,909
|
|||||||||||||||
Conversion
of accrued interest
|
47,393
|
56,687
|
—
|
—
|
—
|
—
|
56,687
|
|||||||||||||||
Conversion
of preferred stock
|
621,200
|
776,500
|
—
|
—
|
—
|
(337,536
|
)
|
—
|
||||||||||||||
Conversion
of dividends payable
|
156,110
|
124,618
|
—
|
—
|
—
|
—
|
124,618
|
|||||||||||||||
In
lieu of cash for services
|
213,464
|
329,581
|
—
|
—
|
—
|
—
|
329,581
|
|||||||||||||||
In
lieu of cash for other current assets
|
36,000
|
42,120
|
—
|
—
|
—
|
—
|
42,120
|
|||||||||||||||
Stock
repurchase
|
(27,500
|
)
|
(62,975
|
)
|
—
|
—
|
—
|
—
|
(62,975
|
)
|
||||||||||||
Conversion
of preferred stock into mandatory
redeemable preferred stock
|
—
|
—
|
—
|
—
|
—
|
—
|
(500,000
|
)
|
||||||||||||||
Intrinsic
value of convertible feature
|
—
|
—
|
—
|
457,500
|
—
|
54,182
|
457,500
|
|||||||||||||||
Discount
on preferred stock related to warrants issued
|
—
|
—
|
—
|
1,153,476
|
—
|
—
|
—
|
|||||||||||||||
Stock
subscriptions receivable:
|
|
|||||||||||||||||||||
Cash
payments
|
—
|
—
|
6,731
|
—
|
—
|
—
|
6,731
|
|||||||||||||||
Interest
collected
|
—
|
—
|
2,770
|
—
|
—
|
—
|
2,770
|
|||||||||||||||
Warrants
issued for debt modification
|
—
|
—
|
—
|
68,652
|
—
|
—
|
68,652
|
|||||||||||||||
Deferred
compensation expense related to stock options issued below fair market
value
|
—
|
—
|
—
|
—
|
115
|
—
|
115
|
|||||||||||||||
Deferred
compensation expense
|
—
|
—
|
—
|
—
|
12,599
|
—
|
12,599
|
|||||||||||||||
Restricted
stock:
|
|
|
|
|
|
|||||||||||||||||
Forfeited
|
(2,219
|
)
|
(2,772
|
)
|
—
|
—
|
2,772
|
—
|
—
|
|||||||||||||
Amortization
expense
|
—
|
—
|
—
|
—
|
200,000
|
—
|
200,000
|
|||||||||||||||
Preferred
stock dividends
|
—
|
—
|
—
|
—
|
—
|
(307,101
|
)
|
(307,101
|
)
|
|||||||||||||
Net
loss
|
—
|
—
|
—
|
—
|
—
|
(9,783,962
|
)
|
(9,783,962
|
)
|
|||||||||||||
BALANCES,
December 31, 2004
|
|
25,784,490
|
$
|
16,888,291
|
$
|
(391,264
|
)
|
$
|
32,985,983
|
$
|
(1,724
|
)
|
$
|
(44,704,609
|
)
|
$
|
8,549,431
|
Common
Stock
|
||||||||||||||||||||||
Shares
|
Amount
|
Stock
Subscriptions
Receivable
|
Options
and
Warrants
|
Unamortized
Compensation
|
Accumulated
Deficit
|
Total
|
||||||||||||||||
Stock
issued:
|
||||||||||||||||||||||
Cash
|
1,281,614
|
$
|
—
|
$
|
—
|
$
|
1,606,848
|
$
|
—
|
$
|
—
|
$
|
11,086,848
|
|||||||||
Exercise
of warrants
|
23,000
|
23,000
|
—
|
—
|
—
|
—
|
23,000
|
|||||||||||||||
Cashless
exercise of warrants
|
101,383
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Exercise
of options
|
2,000
|
1,960
|
—
|
—
|
—
|
—
|
1,960
|
|||||||||||||||
Reduction
of stock subscriptions receivable for fees related to equity
transactions
|
—
|
(15,400
|
)
|
15,400
|
—
|
—
|
—
|
—
|
||||||||||||||
Acquisition
of assets - Dinamo Entertainment, LLC
|
475,000
|
702,500
|
—
|
—
|
—
|
—
|
702,500
|
|||||||||||||||
Acquisition
of assets - Satellite Broadcasting Corporation and
affiliates
|
70,000
|
105,000
|
—
|
—
|
—
|
—
|
105,000
|
|||||||||||||||
Conversion
of notes payable
|
1,513,996
|
1,541,996
|
—
|
—
|
—
|
—
|
1,541,996
|
|||||||||||||||
Conversion
of accrued interest
|
96,754
|
104,194
|
—
|
—
|
—
|
—
|
104,194
|
|||||||||||||||
Conversion
of preferred stock
|
1,616,668
|
1,898,001
|
—
|
—
|
—
|
(1,898,001
|
)
|
—
|
||||||||||||||
Conversion
of dividends payable
|
924,989
|
1,278,625
|
—
|
—
|
—
|
—
|
1,278,625
|
|||||||||||||||
In
lieu of cash for services
|
13,000
|
20,580
|
—
|
—
|
—
|
—
|
20,580
|
|||||||||||||||
In
lieu of cash for other current assets
|
200,000
|
218,000
|
—
|
—
|
—
|
—
|
218,000
|
|||||||||||||||
In
lieu of cash for deferred financing costs
|
33,334
|
36,000
|
—
|
—
|
—
|
—
|
36,000
|
|||||||||||||||
Redemption
of preferred stock
|
—
|
—
|
—
|
—
|
—
|
—
|
(6,600
|
)
|
||||||||||||||
Discount
on preferred stock related to warrants issued
|
—
|
—
|
—
|
9,480,000
|
—
|
—
|
—
|
|||||||||||||||
Stock
subscriptions receivable:
|
|
|||||||||||||||||||||
Cash
payments
|
—
|
—
|
21,750
|
—
|
—
|
—
|
21,750
|
|||||||||||||||
Interest
collected
|
—
|
—
|
30,000
|
—
|
—
|
—
|
30,000
|
|||||||||||||||
Increase
in reserve
|
—
|
—
|
27,009
|
—
|
—
|
—
|
27,009
|
|||||||||||||||
Warrants
issued for services
|
—
|
—
|
—
|
9,829
|
—
|
—
|
9,829
|
|||||||||||||||
Warrants
issued in connection with deferred compensation
|
—
|
—
|
—
|
176,880
|
(29,479
|
)
|
—
|
147,401
|
||||||||||||||
Restricted
stock
forfeited
|
(1,670
|
)
|
(1,342
|
)
|
—
|
—
|
1,342
|
—
|
—
|
|||||||||||||
Preferred
stock dividends
|
—
|
—
|
—
|
—
|
—
|
(1,454,228
|
)
|
(1,454,228
|
)
|
|||||||||||||
Net
loss
|
—
|
—
|
—
|
—
|
—
|
(7,475,000
|
)
|
(7,475,000
|
)
|
|||||||||||||
BALANCES,
December 31, 2005
|
32,134,558
|
$
|
22,801,405
|
$
|
(297,105
|
)
|
$
|
44,259,540
|
$
|
(29,861
|
)
|
$
|
(55,531,838
|
)
|
$
|
14,968,295
|
2005
|
2004
|
2003
|
||||||||
OPERATING
ACTIVITIES
|
||||||||||
Net
loss
|
$
|
(7,475,000
|
)
|
$
|
(9,783,962
|
)
|
$
|
(4,365,004
|
)
|
|
Adjustments
to reconcile net loss to cash flows from operating
activities:
|
||||||||||
Depreciation
and Amortization
|
5,095,561
|
3,610,057
|
996,379
|
|||||||
Amortization
of deferred compensation
|
147,401
|
212,714
|
447,481
|
|||||||
Amortization
of original issue discount
|
1,042,374
|
718,166
|
405,248
|
|||||||
Gain
on sale of segment
|
(253,356
|
)
|
—
|
—
|
||||||
Common
stock issued for services
|
20,580
|
329,581
|
—
|
|||||||
Warrants
issued for services
|
9,829
|
—
|
321,920
|
|||||||
Impairment
of goodwill
|
—
|
2,748,879
|
—
|
|||||||
Loss
(gain) on sale of property and equipment
|
(94,277
|
)
|
26,217
|
79,394
|
||||||
Write
off of notes receivable and investment
|
—
|
—
|
19,069
|
|||||||
Change
in allowance for doubtful accounts on accounts receivable
|
161,000
|
2,000
|
(13,000
|
)
|
||||||
Reserve
for stock subscriptions and interest receivable
|
27,009
|
—
|
71,000
|
|||||||
Interest
receivable on stock subscription receivable
|
—
|
—
|
1,327
|
|||||||
Minority
interest in earnings of subsidiary
|
—
|
—
|
(33,366
|
)
|
||||||
Changes
in operating assets and liabilities:
|
||||||||||
Accounts
receivable
|
239,910
|
(1,160,198
|
)
|
302,890
|
||||||
Inventories
|
(240,472
|
)
|
1,105,372
|
(509,762
|
)
|
|||||
Prepaid
expenses and other
|
222,236
|
(7,664
|
)
|
70,264
|
||||||
Other
assets
|
(14,439
|
)
|
(13,675
|
)
|
(143,101
|
)
|
||||
Wholesale
line of credit
|
(1,000,987
|
)
|
(50,113
|
)
|
(314,069
|
)
|
||||
Accounts
payable and accrued liabilities
|
(1,482,170
|
)
|
(229,855
|
)
|
122,403
|
|||||
Customer
deposits
|
4,286
|
4,475
|
—
|
|||||||
Liabilities
of discontinued operations
|
(375,000
|
)
|
—
|
—
|
||||||
Deferred
service obligations and revenue
|
148,457
|
198,361
|
(39,321
|
)
|
||||||
Net
cash flows from operating activities
|
(3,817,058
|
)
|
(2,289,645
|
)
|
(2,580,248
|
)
|
||||
INVESTING
ACTIVITIES
|
||||||||||
Purchases
of property and equipment
|
(976,477
|
)
|
(748,704
|
)
|
(526,936
|
)
|
||||
Purchases
of intangible assets
|
(244,894
|
)
|
—
|
—
|
||||||
Purchase
of Dinamo Entertainment, LLC
|
(726,525
|
)
|
—
|
—
|
||||||
Purchase
of Ultravision
|
(287,050
|
)
|
—
|
—
|
||||||
Purchase
of Satellite Broadcasting Corporation
|
(200,000
|
)
|
(221,624
|
)
|
—
|
|||||
Purchase
of Minnesota Digital Universe, Inc.
|
—
|
(1,009,730
|
)
|
—
|
||||||
Purchase
of Rainbow Satellite Group, LLC
|
—
|
(1,000,000
|
)
|
—
|
||||||
Purchase
of 21st
Century Satellite Communication, Inc.
|
—
|
(250,000
|
)
|
—
|
||||||
Proceeds
from sale of business segment
|
1,682,184
|
—
|
—
|
|||||||
Proceeds
from short-term note receivable
|
400,000
|
—
|
—
|
|||||||
Proceeds
from sale of intangible assets
|
91,500
|
—
|
—
|
|||||||
Proceeds
from certificate of deposit
|
650,000
|
—
|
—
|
|||||||
Payments
received on notes receivable
|
2,843
|
—
|
—
|
|||||||
Proceeds
from sale of property and equipment
|
—
|
2,712
|
15,492
|
|||||||
Payments
for investment in joint venture
|
—
|
—
|
(64,878
|
)
|
||||||
Purchase
of certificate of deposit
|
—
|
(400,000
|
)
|
(250,000
|
)
|
|||||
Net
cash flows from investing activities
|
391,581
|
(3,627,346
|
)
|
(826,322
|
)
|
|||||
FINANCING
ACTIVITIES
|
||||||||||
Checks
issued in excess of cash in bank
|
(141,343
|
)
|
83,558
|
147,398
|
||||||
Payments
on short-term debt
|
(3,981,099
|
)
|
(2,688,900
|
)
|
—
|
|||||
Payments
on long-term debt
|
(2,690,766
|
)
|
(345,578
|
)
|
(200,768
|
)
|
||||
Payments
on capital lease obligations
|
(216,583
|
)
|
(74,902
|
)
|
(75,301
|
)
|
||||
Payments
on note payable to stockholder
|
(51,964
|
)
|
(29,590
|
)
|
(9,609
|
)
|
||||
Payments
for debt issuance costs
|
(25,000
|
)
|
(198,337
|
)
|
—
|
|||||
Payment
on mandatory redeemable preferred stock
|
(166,666
|
)
|
—
|
—
|
||||||
Proceeds
from long-term debt and warrants issued with long-term
debt
|
2,000,000
|
2,471,688
|
1,659,726
|
|||||||
Proceeds
from issuance of stock and warrants
|
11,086,848
|
4,188,131
|
4,023,704
|
|||||||
Payments
received on stock subscriptions receivable
|
51,750
|
9,501
|
105,806
|
|||||||
Proceeds
from note payable - stockholder
|
—
|
—
|
124,000
|
|||||||
Redemption
of common stock
|
(6,600
|
)
|
(62,975
|
)
|
—
|
|||||
Redemption
of preferred stock
|
—
|
—
|
(93,100
|
)
|
||||||
Exercise
of warrants
|
23,000
|
390,279
|
262,030
|
|||||||
Preferred
stock dividends
|
(84,186
|
)
|
(45,291
|
)
|
(135,481
|
)
|
||||
Exercise
of stock options
|
1,960
|
—
|
3,750
|
|||||||
Net
cash flows from financing activities
|
5,799,351
|
3,697,584
|
5,812,155
|
|||||||
INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
2,373,874
|
(2,219,407
|
)
|
2,405,585
|
||||||
CASH
AND CASH EQUIVALENTS - Beginning of Year
|
726,553
|
2,945,960
|
540,375
|
|||||||
CASH
AND CASH EQUIVALENTS - END OF YEAR
|
$
|
3,100,427
|
$
|
726,553
|
$
|
2,945,960
|
1. |
Continued
reduction of operating expenses by controlling payroll, professional
fees
and other general and administrative
expenses.
|
2. |
Solicit
additional equity investment in the Company by either issuing preferred
or
common stock.
|
3. |
Continue
to market Multiband services and acquire additional multi-dwelling
unit
customers.
|
4. |
Control
capital expenditures by contracting Multiband services and equipment
through a landlord-owned equipment
program.
|
5. |
Establish
market for wireless internet
services.
|
December
31, 2005
|
December
31, 2004
|
||||||||||||
|
Gross
Carrying
|
Accumulated
|
Gross
Carrying
|
Accumulated
|
|||||||||
Amount
|
Amortization
|
Amount
|
Amortization
|
||||||||||
Intangible
assets subject to amortization
|
|||||||||||||
Domain
name
|
$
|
83,750
|
$
|
72,583
|
$
|
83,750
|
$
|
55,833
|
|||||
Access
contracts
|
$
|
60,000
|
$
|
53,333
|
$
|
60,000
|
$
|
33,333
|
|||||
Debt
issuance costs
|
$
|
499,837
|
$
|
306,152
|
$
|
313,837
|
$
|
47,214
|
|||||
Right
of entry
|
$
|
17,376,699
|
$
|
4,806,401
|
$
|
17,226,759
|
$
|
1,933,294
|
|||||
Customer
cable lists
|
$
|
1,844,138
|
$
|
702,413
|
$
|
753,930
|
$
|
286,967
|
|||||
Total
|
$
|
19,864,424
|
$
|
5,940,882
|
$
|
18,438,276
|
$
|
2,356,641
|
|||||
Intangible
assets not subject to amortization
|
|||||||||||||
Goodwill
|
$
|
954,871
|
$
|
—
|
$
|
812,366
|
$
|
—
|
|
|
2005
|
|
2004
|
|
2003
|
|
|||
Loss
attributable to common stockholders
|
|
$
|
(10,827,229
|
)
|
$
|
(10,374,417
|
)
|
$
|
(4,613,693
|
)
|
Pro
forma loss attributable to common shares
|
|
$
|
(11,277,908
|
)
|
$
|
(10,984,354
|
)
|
$
|
(5,363,381
|
)
|
Basic
and diluted loss attributable to common shareholders:
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
|
$
|
(.37
|
)
|
$
|
(.45
|
)
|
$
|
(.29
|
)
|
Pro
forma loss attributable to common shares
|
|
$
|
(.39
|
)
|
$
|
(.47
|
)
|
$
|
(.33
|
)
|
Stock-based
compensation:
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
|
$
|
—
|
|
$
|
212,714
|
|
$
|
447,481
|
|
Pro
forma
|
|
$
|
450,679
|
|
$
|
609,937
|
|
$
|
749,688
|
2005
|
2004
|
2003
|
||||||||
Risk-free
interest rate
|
|
|
3.91
|
%
|
|
3.31
|
%
|
|
3.00
|
%
|
Expected
life of options granted
|
|
|
10
years
|
|
|
10
years
|
|
|
10
years
|
|
Expected
volatility range
|
|
|
209
|
%
|
|
184
|
%
|
|
170
|
%
|
Expected
dividend yield
|
0
|
%
|
0
|
%
|
0
|
%
|
Property
and equipment
|
$
|
504,224
|
||
Access
contracts
|
$
|
60,000
|
||
Capital
lease obligations
|
$ |
(54,224
|
)
|
|
Net
purchase price
|
$
|
510,000
|
||
MDU
|
Rainbow
|
21st
Century
|
Dinamo
|
||||||||||
Allocation of Purchase Price: | |||||||||||||
Total
Cash/Stock Consideration
|
$
|
7,000,000
|
$
|
7,219,999
|
$
|
987,000
|
$
|
1,727,500
|
|||||
Add:
Transaction Costs
|
726,550
|
361,850
|
93,754
|
176,525
|
|||||||||
Add:
Liabilities assumed
|
2,030,373
|
319,921
|
—
|
170,200
|
|||||||||
Total
Consideration
|
9,756,923
|
7,901,770
|
1,080,754
|
2,074,225
|
|||||||||
Less:
Cash and accounts receivable
|
59,044
|
—
|
—
|
—
|
|||||||||
Less:
Tangible assets
|
—
|
773,000
|
372,420
|
1,450,000
|
|||||||||
Less:
Goodwill
|
—
|
800,000
|
—
|
150,000
|
|||||||||
Intangible
assets, net
|
$
|
9,697,879
|
$
|
6,328,770
|
$
|
708,334
|
$
|
474,225
|
2005
|
2004
|
||||||||||||
Consolidated
as
reported
per
Consolidated Statements of
Operations
|
|
Pro
Forma
Disclosed
|
|
Consolidated
as
reported
per
Consolidated Statements of
Operations
|
|
Pro
Forma
Disclosed
|
|||||||
Revenues
|
$
|
16,515,426
|
$
|
16,515,426
|
$
|
11,067,834
|
$
|
14,562,983
|
|||||
Loss
from continuing operations
|
(7,492,827
|
)
|
(7,492,827
|
)
|
(5,326,642
|
)
|
(5,292,789
|
)
|
|||||
Gain
(Loss) from discontinued operations
|
17,827
|
17,827
|
(4,457,320
|
)
|
(4,457,320
|
)
|
|||||||
Net
loss
|
$
|
(7,475,000
|
)
|
$
|
(7,475,000
|
)
|
$
|
(9,783,962
|
)
|
$
|
(9,750,109
|
)
|
|
Basic
and diluted loss per share:
|
|||||||||||||
Loss
from continuing operations
|
$
|
(.26
|
)
|
$
|
(.26
|
)
|
$
|
(.23
|
)
|
$
|
(.23
|
)
|
|
Loss
from discontinued operations
|
$
|
—
|
$
|
—
|
$
|
(.19
|
)
|
$
|
(.19
|
)
|
|||
Net
loss
|
$
|
(.26
|
)
|
$
|
(.26
|
)
|
$
|
(.42
|
)
|
$
|
(.42
|
)
|
|
Weighted
average shares outstanding - basic and diluted
|
29,097,923
|
29,097,923
|
23,307,594
|
23,307,594
|
2005
|
2004
|
||||||
Leasehold
improvements
|
$
|
780,924
|
$
|
767,146
|
|||
Property
and equipment-owned
|
9,794,264
|
6,476,066
|
|||||
Property
and equipment under capital lease obligations
|
932,963
|
988,594
|
|||||
Totals
|
11,508,151
|
8,231,806
|
|||||
Less
accumulated depreciation & amortization
|
(5,904,006
|
)
|
(3,509,685
|
)
|
|||
Less
accumulated depreciation & amortization capital leases
|
(356,905
|
)
|
(349,647
|
)
|
|||
$
|
5,247,240
|
$
|
4,372,474
|
2005
|
2004
|
||||||
Notes
receivable - SBC-OK/TX, variable monthly principal payments based
on
revenue generated plus interest of 7%, due October 2008. Note is
collateralized by certain assets.
|
|
$
|
47,801
|
|
$
|
—
|
|
Notes
receivable - SBC-Ohio, variable monthly principal payments based
on
revenue generated plus interest of 7%, due October 2008. Note is
collateralized by certain assets.
|
|
|
24,856
|
|
|
—
|
|
Total
notes receivable
|
|
|
72,657
|
|
|
—
|
|
Less:
current portion
|
|
|
(11,316
|
)
|
|
—
|
|
Long-term
portion of notes receivable
|
$
|
61,341
|
$
|
—
|
2005
|
2004
|
||||||
Payroll
and related taxes
|
$
|
391,707
|
$
|
389,394
|
|||
Accrued
preferred stock dividends
|
506,535
|
415,120
|
|||||
Accrued
liability - vendor chargeback
|
1,347,673
|
1,901,972
|
|||||
Other
|
495,139
|
323,538
|
|||||
$
|
2,741,054
|
$
|
3,030,024
|
2005
|
2004
|
||||||
Debenture
payable - Convergent Partners I, L.P., see terms in note
below.
|
$
|
2,500,000
|
2,130,286
|
||||
Demand
debenture payable - Convergent Capital Partners I, L.P., monthly
interest
only payments at 14% through May 2007, due on demand or May 2007,
collateralized by substantially all of the assets of the Company.
Paid in
full during 2005.
|
—
|
100,000
|
|||||
Note
payable - Lexus Tower Limited Partnership, monthly installments of
$5,987
including interest at 8.1%, due November 2010, collateralized by
certain
assets of the Company.
|
290,059
|
336,486
|
|||||
Note
payable - Laurus Master Fund LTD, net of unamortized original issue
discount and beneficial conversion of note payable into common stock
of
$379,929 and $794,391 at December 31, 2005 and 2004, monthly installments
of $45,455 beginning in March 2004, including interest at prime rate
(the
prime rate used shall not be less than 4.00%) plus 3% (10.25% and
8.25% at
December 31, 2005 and 2004) (effective interest rate of 174.6%),
due
through November 2006, collateralized by certain assets of the
Company.
|
165,520
|
226,518
|
|||||
Notes
payable, group of accredited institutional investors, net of original
issue discount and beneficial conversion of note payable into common
stock
of $86,590 and $444,792 at December 31, 2005 and 2004. Interest is
6%
payable semi-annually in cash or common stock at the Company’s election,
due in November 2007, collateralized by certain assets of the Company
and
subordinated.
|
636,080
|
1,721,875
|
|||||
Note
payable - Dell Marketing C.P., monthly installments of $10,000 beginning
in September 2004 through August 2006, with a final payment of $65,021.
This note does not bear interest and is unsecured.
|
145,021
|
265,021
|
|||||
Notes
payable - Dinamo Entertainment, monthly installments of $14,091 beginning
in November 2005, including interest at 6% due November 2007 with
a final
payment of $319,523. Collateralized by certain
assets.
|
577,778
|
—
|
|||||
Note
payable - Vern Swedin, Note payable in 18 monthly installments, beginning
January 30, 2005 with an interest rate of 6%, unsecured and due in
July
2006.
|
77,779
|
200,000
|
2005
|
2004
|
||||||
Notes
payable, interest at 5.25% to 20% due through May 2007, collateralized
by
certain assets of the Company.
|
40,559
|
42,998
|
|||||
Total
long-term debt
|
4,432,796
|
5,023,184
|
|||||
Less:
current portion
|
(616,260
|
)
|
(1,524,527
|
)
|
|||
Long-term
debt, net
|
$ |
3,816,536
|
$
|
3,498,657
|
2006
|
$
|
996,188
|
||
2007
|
1,217,890
|
|||
2008
|
59,072
|
|||
2009
|
2,564,011
|
|||
Thereafter
|
62,153
|
|||
Total
future minimum payments
|
4,899,314
|
|||
Less:
original issue discounts and beneficial conversion feature
|
(466,518
|
)
|
||
Total
long-term debt
|
4,432,796
|
|||
Less:
current portion
|
(616,260
|
)
|
||
Long-term
debt, net
|
$
|
3,816,536
|
2006
|
$
|
220,487
|
||
2007
|
379,191
|
|||
2008
|
83,195
|
|||
2009
|
22,266
|
|||
Total
|
705,139
|
|||
Less:
amounts representing interest
|
(72,558
|
)
|
||
Present
value of future minimum lease payments
|
632,581
|
|||
Less:
current portion
|
(179,932
|
)
|
||
Capital
lease obligations, net of current portion
|
$
|
452,649
|
|
|
2005
|
|
2004
|
|
2003
|
|
|||
Outstanding,
January 1
|
|
|
2,672
|
|
|
17,019
|
|
|
45,066
|
|
Issued
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Vested
|
|
|
(1,002
|
)
|
|
(12,128
|
)
|
|
(17,204
|
)
|
Forfeited
|
|
|
(1,670
|
)
|
|
(2,219
|
)
|
|
(10,843
|
)
|
Outstanding,
December 31
|
|
|
—
|
|
|
2,672
|
|
|
17,019
|
|
|
Options
|
Weighted-Average
Exercise Price
|
||||||||||||||||
2005
|
2004
|
2003
|
2005
|
2004
|
2003
|
||||||||||||||
Outstanding,
January 1
|
2,188,432
|
1,657,432
|
1,093,157
|
$
|
1.71
|
$
|
1.81
|
$
|
2.45
|
||||||||||
Granted
|
1,513,775
|
621,500
|
747,775
|
1.43
|
1.48
|
1.35
|
|||||||||||||
Exercised
|
(2,000
|
)
|
—
|
(3,000
|
)
|
.98
|
—
|
1.25
|
|||||||||||
Forfeited
|
(640,275
|
)
|
(90,500
|
)
|
(180,500
|
)
|
1.87
|
2.21
|
4.49
|
||||||||||
Outstanding,
December 31
|
3,059,932
|
2,188,432
|
1,657,432
|
$
|
1.54
|
$
|
1.71
|
$
|
1.81
|
Outstanding
|
Exercisable
|
|||||||||||||||||||||
Weighted
- Average
|
||||||||||||||||||||||
Range
of
Exercise
Prices
|
Options
|
Exercise
Price
|
Remaining
Contractual Life-Years
|
Options
|
Weighted-
Average
Exercise
Price
|
|||||||||||||||||
$.60
|
180,000
|
$
|
0.60
|
3.36
|
180,000
|
$
|
0.60
|
|||||||||||||||
$.93
|
to
|
$
|
1.38
|
717,000
|
1.25
|
8.38
|
333,000
|
2.70
|
||||||||||||||
$1.40
|
to
|
$
|
1.89
|
1,850,266
|
1.48
|
8.17
|
800,324
|
3.42
|
||||||||||||||
$2.00
|
to
|
$
|
2.88
|
199,000
|
2.03
|
3.92
|
197,000
|
2.05
|
||||||||||||||
$3.98
|
to
|
$
|
4.75
|
86,666
|
4.45
|
4.65
|
86,666
|
4.45
|
||||||||||||||
$6.00
|
to
|
$
|
6.75
|
27,000
|
6.44
|
3.67
|
27,000
|
6.44
|
||||||||||||||
$.60
|
to
|
$
|
6.75
|
3,059,932
|
$
|
1.54
|
7.52
|
1,623,990
|
$
|
2.90
|
Outstanding
|
Weighted
- Average Exercise Price
|
||||||||||||||||||
|
2005
|
2004
|
2003
|
2005
|
2004
|
2003
|
|||||||||||||
Outstanding,
January 1
|
11,795,641
|
7,421,874
|
4,327,396
|
$
|
1.64
|
$
|
1.83
|
$
|
2.05
|
||||||||||
Granted
|
9,040,523
|
4,902,658
|
3,687,447
|
1.71
|
1.35
|
1.53
|
|||||||||||||
Exercised
|
(498,966
|
)
|
(528,891
|
)
|
(556,881
|
)
|
.99
|
1.46
|
1.53
|
||||||||||
Forfeited
|
(1,621,219
|
)
|
—
|
(36,088
|
)
|
1.80
|
—
|
3.59
|
|||||||||||
Outstanding,
December 31
|
18,715,979
|
11,795,641
|
7,421,874
|
$
|
1.68
|
$
|
1.64
|
$
|
1.83
|
Weighted
- Average
|
||||||||||||||||
Range
of Exercise Prices
|
Warrants
|
Remaining
contractual life
|
Exercise
prices
|
|||||||||||||
$.85
|
to
|
$
|
1.25
|
5,663,152
|
3.85
|
$
|
1.19
|
|||||||||
$1.35
|
to
|
$
|
2.20
|
10,691,583
|
4.07
|
1.71
|
||||||||||
$2.21
|
to
|
$
|
3.00
|
1,802,824
|
1.55
|
2.26
|
||||||||||
$3.56
|
to
|
$
|
5.20
|
558,420
|
0.51
|
4.11
|
||||||||||
$.85
|
to
|
$
|
5.20
|
18,715,979
|
3.65
|
$
|
1.68
|
2005
|
2004
|
2003
|
||||||||
Common
stock
|
|
|
1,281,614
|
|
|
579,799
|
|
|
1,812,259
|
|
Services
rendered
|
|
|
616,051
|
|
|
828,278
|
|
|
941,288
|
|
Preferred
stock
|
|
|
7,142,858
|
|
|
3,419,581
|
|
|
145,900
|
|
Debt
issuance and guarantees
|
|
|
—
|
|
|
75,000
|
|
|
788,000
|
|
|
|
|
9,040,523
|
|
|
4,902,658
|
|
|
3,687,447
|
|
2005
|
2004
|
2003
|
|||||||
Risk-free
interest rate
|
3.52
|
%
|
2.96
|
%
|
2.37
|
%
|
||||
Expected
life
|
4.28
years
|
3.35
years
|
3.4
years
|
|||||||
Expected
volatility
|
205
|
%
|
184
|
%
|
170
|
%
|
||||
Expected
dividend rate
|
0
|
%
|
0
|
%
|
0
|
%
|
2005
|
2004
|
||||||
Deferred
income tax assets:
|
|
|
|||||
Net
operating loss carryforwards
|
$
|
13,872,000
|
$
|
11,143,000
|
|||
Goodwill,
including impairment
|
347,000
|
1,145,000
|
|||||
Amortization
of intangibles
|
737,000
|
559,000
|
|||||
Asset
valuation reserves
|
223,000
|
577,000
|
|||||
Accrued
liabilities
|
370,000
|
69,000
|
|||||
|
15,549,000
|
13,493,000
|
|||||
Less
valuation allowance
|
(12,672,000
|
)
|
(13,203,000
|
)
|
|||
|
2,877,000
|
290,000
|
|||||
Deferred
income tax liabilities:
|
|
|
|||||
Value
of intangible related to stock purchase of MDU
|
(2,746,000
|
)
|
—
|
||||
Depreciation
|
(131,000
|
)
|
(290,000
|
)
|
|||
Net
deferred income tax assets
|
$
|
—
|
$
|
—
|
2005
|
2004
|
2003
|
||||||||
Federal
statutory tax rate benefits
|
(34.0
|
)%
|
(34.0
|
)%
|
(34.0
|
)%
|
||||
State
tax, net of federal benefit
|
(6.0
|
)
|
(6.0
|
)
|
(6.0
|
)
|
||||
Change
in valuation allowance
|
37.7
|
36.1
|
39.6
|
|||||||
Other
|
2.3
|
3.9
|
0.4
|
|||||||
Effective
tax rate
|
0.0
|
%
|
0.0
|
%
|
0.0
|
%
|
Year
of
Expiration
|
Federal
Net
Operating
Loss
|
State
Net
Operating
Loss
|
|||||
2007
|
$
|
501,000
|
$
|
501,000
|
|||
2008
|
59,000
|
57,000
|
|||||
2009
|
22,000
|
22,000
|
|||||
2011
|
595,000
|
575,000
|
|||||
2012
|
25,000
|
-
|
|||||
2018
|
1,122,000
|
1,096,000
|
|||||
2019
|
1,585,000
|
992,000
|
|||||
2020
|
4,839,000
|
1,587,000
|
|||||
2021
|
4,726,000
|
1,435,000
|
|||||
2022
|
4,353,000
|
1,230,000
|
|||||
2023
|
4,275,000
|
1,239,000
|
|||||
2024
|
4,933,000
|
1,737,000
|
|||||
2025
|
7,646,000
|
2,676,000
|
|||||
$
|
34,681,000
|
$
|
13,147,000
|
|
2005
|
2004
|
2003
|
|||||||
Cash
paid for interest
|
$
|
579,449
|
$
|
1,409,095
|
$
|
436,061
|
||||
Non-cash
investing and financing transactions:
|
|
|
|
|||||||
Note
receivable recorded for sale of discontinued operations
|
400,000
|
—
|
—
|
|||||||
Note
receivable recorded on sale of intangibles to Satellite Broadcasting
Corporation
|
75,500
|
—
|
—
|
|||||||
Issuance
of common stock for purchase of Satellite Broadcasting Corporation
intangibles
|
105,000
|
—
|
—
|
|||||||
Common
stock issued in relation to acquisition of Dinamo Entertainment,
LLC
|
702,500
|
—
|
—
|
|||||||
Common
stock issued in lieu of cash for deferred financing costs
|
36,000
|
—
|
—
|
|||||||
Common
stock issued in lieu of cash for other current assets
|
218,000
|
—
|
—
|
|||||||
Warrants
issued for deferred compensation
|
213,120
|
—
|
—
|
|||||||
Issuance
of accrued liabilities for debt issuance costs
|
125,000
|
—
|
—
|
|||||||
Property
and equipment in lieu of cash for accounts receivable
|
—
|
61,312
|
—
|
|||||||
Issuance
of preferred and common stock for acquisition of assets
|
—
|
57,650
|
76,500
|
|||||||
Current
liabilities converted to stock
|
—
|
—
|
192,690
|
|||||||
Purchase
of customer lists and equipment through payable to Florida
Cable
|
—
|
—
|
465,000
|
|||||||
Notes
payable and accrued interest converted to common and preferred
stock
|
1,646,190
|
637,596
|
828,172
|
|||||||
Conversion
of preferred stock to common stock
|
1,898,001
|
776,500
|
40,000
|
|||||||
Conversion
of note payable into preferred stock
|
—
|
50,000
|
—
|
|||||||
Conversion
of preferred stock into mandatory redeemable preferred
stock
|
—
|
500,000
|
—
|
|||||||
Reduction
of stock subscription receivable related to commission earned on
equity
transactions
|
15,400
|
17,320
|
36,977
|
|||||||
Warrants
issued related to modifications of long-term debt
|
—
|
—
|
208,447
|
|||||||
Warrants
issued for modification of short-term debt
|
—
|
68,652
|
—
|
|||||||
Conversion
of preferred stock dividends into common stock
|
1,278,625
|
124,618
|
113,209
|
|||||||
Issuance
of common stock for acquisition of assets - SBC
|
—
|
270,152
|
—
|
|||||||
Capital
lease assumed in acquisition of equipment from SBC
|
105,000
|
187,424
|
—
|
|||||||
Issuance
of common stock, short-term debt, and long-term debt for acquisition
of
MDU
|
—
|
6,660,000
|
—
|
|||||||
Issuance
of preferred stock, short-term debt and accrued expenses for acquisition
of Rainbow
|
—
|
6,541,849
|
—
|
|||||||
Issuance
of common stock and accrued expenses for acquisition of assets -
21st
Century
|
—
|
364,584
|
—
|
2005
|
2004
|
2003
|
||||||||
Capital
lease assumed in acquisition of equipment from 21st
Century
|
—
|
372,420
|
—
|
|||||||
Issuance
of common stock and contingent liability for acquisition of assets
- URON,
Inc.
|
—
|
458,500
|
—
|
|||||||
Issuance
of common stock for remaining 50% ownership of MBUSA
|
—
|
39,000
|
—
|
|||||||
Note
payable issued in relation to acquisition of Dinamo Entertainment,
LLC
|
600,000
|
—
|
—
|
|||||||
Capital
lease assumed in acquisition of equipment from Dinamo Entertainment,
LLC
|
45,200
|
—
|
—
|
|||||||
Property
and equipment acquired through capital lease obligation
|
16,185
|
—
|
—
|
Year
|
Amount
|
|||
2006
|
$
|
614,000
|
||
2007
|
712,000
|
|||
2008
|
734,000
|
|||
2009
|
729,000
|
|||
2010
|
364,000
|
|||
Thereafter
|
3,652,000
|
|||
$ |
6,805,000
|
Year
Ended December 31, 2005
|
Multiband
Corp
|
MDU
|
MCS
|
Discontinued
Operations
|
Total
|
|||||||||||
Revenues
|
$
|
—
|
$
|
8,572,160
|
$
|
7,943,266
|
—
|
$
|
16,515,426
|
|||||||
Income
(loss) from operations
|
(3,071,040
|
)
|
2,691,921
|
(5,458,620
|
)
|
—
|
(5,837,739
|
)
|
||||||||
Identifiable
assets
|
4,273,913
|
7,984,082
|
14,013,410
|
—
|
26,271,405
|
|||||||||||
Depreciation
and amortization
|
221,885
|
1,604,316
|
2,954,235
|
—
|
4,780,436
|
|||||||||||
Capital
expenditures
|
29,021
|
—
|
904,616
|
42,840
|
976,477
|
|||||||||||
Year
Ended December 31, 2004
|
Multiband
Corp
|
MDU
|
MCS
|
Discontinued
Operations
|
Total
|
|||||||||||
Revenues
|
$
|
—
|
$
|
5,840,138
|
$
|
5,227,696
|
—
|
$
|
11,067,834
|
|||||||
Income
(loss) from operations
|
(1,842,957
|
)
|
863,149
|
(3,314,799
|
)
|
—
|
(4,294,607
|
)
|
||||||||
Identifiable
assets
|
775,708
|
9,708,448
|
15,467,274
|
682,282
|
26,633,712
|
|||||||||||
Depreciation
and amortization
|
244,967
|
1,203,236
|
1,984,576
|
—
|
3,432,779
|
|||||||||||
Capital
expenditures
|
9,772
|
—
|
481,252
|
257,680
|
748,704
|
|||||||||||
Year
Ended December 31, 2003
|
Multiband
Corp
|
MDU
|
MCS
|
Discontinued
Operations
|
Total
|
|||||||||||
Revenues
|
$
|
—
|
$
|
—
|
$
|
1,441,118
|
—
|
$
|
1,441,118
|
|||||||
Loss
from operations
|
(1,941,271
|
)
|
—
|
(1,215,667
|
)
|
—
|
(3,156,938
|
)
|
||||||||
Identifiable
assets
|
3,112,904
|
—
|
6,383,013
|
4,406,968
|
13,902,885
|
|||||||||||
Depreciation
and amortization
|
547,423
|
—
|
518,227
|
—
|
1,065,650
|
|||||||||||
Capital
expenditures
|
13,342
|
—
|
89,547
|
424,047
|
526,936
|
Sale
Price
|
||||
Cash
proceeds
|
$
|
1,682,184
|
||
Note
receivable
|
400,000
|
|||
Assumed
liabilities
|
438,868
|
|||
Total
sale price
|
2,521,052
|
Assets
sold
|
||||
Inventory,
net of reserve
|
1,045,110
|
|||
Property
and equipment
|
52,351
|
|||
Net
assets sold
|
1,097,461
|
Less
costs and expenses
|
||||
Broker’s
fee
|
122,500
|
|||
Other
selling expense
|
10,135
|
|||
Sublease
for one year at no charge
|
500,000
|
|||
Additional
free rent related to inventory adjustment
|
500,000
|
|||
Legal
and accounting costs
|
37,600
|
|||
Total
costs
|
1,170,235
|
|||
Net
gain on sale
|
$
|
253,356
|
Statement
of Operations
|
2005
|
2004
|
2003
|
|||||||
Revenues
|
$
|
3,845,069
|
$
|
18,604,855
|
$
|
21,199,303
|
||||
Cost
of sales
|
2,846,750
|
14,564,286
|
15,067,483
|
|||||||
Selling,
general and administrative
|
1,122,220
|
5,092,867
|
6,038,823
|
|||||||
Depreciation
and amortization
|
56,188
|
345,985
|
432,366
|
|||||||
Loss
from operations
|
(180,089
|
)
|
(1,398,283
|
)
|
(399,369
|
)
|
||||
Impairment
of goodwill
|
—
|
(2,748,879
|
)
|
—
|
||||||
Other
income (expense)
|
(55,440
|
)
|
(310,158
|
)
|
(353,587
|
)
|
||||
Net
Loss
|
$
|
(235,529
|
)
|
$
|
(4,457,320
|
)
|
$
|
(692,956
|
)
|
|
Column
A
|
Column
B
|
Column
C
|
Column
D
|
Column
E
|
|||||||||||
Description
|
Balance
at Beginning of Year
|
Additions
Charged to Costs and Expenses
|
Deductions
|
|
Balance
at
End
of Year
|
||||||||||
ALLOWANCE
DEDUCTED FROM ASSET TO WHICH IT APPLIES
|
|
|
|
|
|
||||||||||
Allowance
for doubtful accounts receivable:
|
|
|
|
|
|
||||||||||
2005
|
$
|
225,000
|
$
|
161,000
|
$
|
—
|
|
$
|
386,000
|
||||||
2004
|
223,000
|
2,000
|
—
|
|
225,000
|
||||||||||
2003
|
236,000
|
|
13,000
|
(A)
|
|
223,000
|
|||||||||
Notes
receivable:
|
|
|
|
|
|
||||||||||
2005
|
—
|
—
|
—
|
|
—
|
||||||||||
2004
|
—
|
—
|
—
|
|
—
|
||||||||||
2003
|
30,000
|
|
30,000
|
(A)
|
|
—
|
|||||||||
Stock
subscriptions and interest receivable
|
|
|
|
|
|
||||||||||
2005
|
71,000
|
27,009
|
9
|
|
98,000
|
||||||||||
2004
|
71,000
|
—
|
—
|
|
71,000
|
||||||||||
2003
|
—
|
71,000
|
—
|
|
71,000
|
||||||||||
(A) |
Write-off
uncollectible
receivables
|
2005
|
2004
|
|||||||||
Audit
Fees
|
$
|
154,180
|
$
|
128,479
|
|
|||||
Audit-Related
Fees
|
36,985
|
38,950
|
(1)
|
|
||||||
Tax
Fees
|
13,990
|
15,540
|
|
|||||||
Total
|
$
|
205,155
|
$
|
182,969
|
||||||
(1) |
Fees
related to review of Form S-1 filings, audits of acquisition and
pro-forma
required by Form 8-K rules, and responding to SEC comment
letter.
|
MULTIBAND CORPORATION | ||
|
|
|
Date: March 31, 2006 | By: | /s/ James L. Mandel |
|
||
Name:
James L. Mandel
Title:
Chief Executive Officer
|
Date: March 31, 2006 | By: | /s/ Steven M. Bell |
|
||
Name:
Steven M. Bell
Title:
Chief Financial Officer
(Principal Financial and Accounting
Officer)
|
Exhibit
No.
|
Description
|
|
2.1
|
Asset
Purchase Agreement and related documents with Enstar Networking
Corporation dated December 31, 1998(1)
|
|
2.2
|
Agreement
and Plan of Merger with Ekman, Inc. dated December 29,
1999(1)
|
|
2.3
|
Asset
Purchase Agreement with Vicom Systems (14)
|
|
3.1
|
Amended
and Restated Articles of Incorporation of Vicom,
Inc.(1)
|
|
3.2
|
Restated
Bylaws of Vicom, Incorporated(1)
|
|
3.3
|
Articles
of Incorporation of Corporate Technologies, USA,
Inc.(1)
|
|
3.5
|
Audit
Committee Charter (9)
|
|
4.1
|
Certificate
of Designation of the Relative Rights, Restrictions and Preferences
of 8%
Class A Cumulative Convertible Preferred Stock and 10% Class B
Cumulative Convertible Preferred Stock dated December 9,
1998(1)
|
|
4.2
|
Form
of Warrant Agreement(1)
|
|
4.3
|
Warrant
Agreement with James Mandel dated December 29, 1999(1)
|
|
4.4
|
Warrant
Agreement with Marvin Frieman dated December 29,
1999(1)
|
|
4.5
|
Warrant
Agreement with Pierce McNally dated December 29,
1999(1)
|
|
4.6
|
Warrant
Agreement with Enstar, Inc. dated December 29, 1999(1)
|
|
4.7
|
Warrant
Agreement with David Ekman dated December 29, 1999(1)
|
|
4.8
|
Certificate
of Designation of the Relative Rights, Restrictions and Preferences
of 10%
Class C Cumulative Convertible Stock(2)
|
|
4.9
|
Certificate
of Designation of the Relative Rights, Restrictions and Preferences
of 14%
Class D Cumulative Convertible Stock(2)
|
|
4.10
|
Certificate
of Designation of the Relative Rights, Restrictions and Preferences
of 15%
Class E Cumulative Convertible Stock(2)
|
|
4.11
|
Securities
Purchase Agreement Dated September 18, 2003 (6)
|
|
4.12
|
Secured
Convertible Note Agreement (7)
|
|
4.13
|
Wholesale
Services Agreement Dated March 4, 2004 (8)
|
|
4.14
|
Note
Purchase Agreement (11)
|
|
4.15
|
Series
H Preferred Documents (12)
|
|
4.16
|
Series
I Preferred Documents (13)
|
|
5.1
|
Opinion
of Steven M. Bell, Esq.(6)
|
|
10.1
|
Vicom
Lease with Marbell Realty dated June 20, 1996(1)
|
|
10.2
|
Employment
Agreement with Marvin Frieman dated October 1, 1996(1)
|
|
10.3
|
Employment
Agreement with Steven Bell dated October 1, 1996(1)
|
|
10.4
|
Employment
Agreement with James Mandel dated August 14, 1998(1)
|
|
10.5
|
Vicom
Associate Agreement with NEC America, Inc. dated June
1999(1)
|
|
10.6
|
Loan
Agreement with Wells Fargo dated June 17, 1999(1)
|
|
10.7
|
Employment
Agreement with David Ekman dated December 29, 1999(1)
|
|
10.8
|
Debenture
Loan Agreement with Convergent Capital dated March 9,
2000(1)
|
|
10.9
|
Corporate
Technologies, USA, Inc. lease with David Ekman dated January 19,
2000(1)
|
|
10.10
|
Amendment
dated July 11, 2000 to debenture loan agreement with Convergent Capital
dated March 9, 2000.(2)
|
|
10.11
|
Corporate
Technologies agreement with Siemens dated December 14,
2001(4)
|
|
10.12
|
Note
with Pyramid Trading, L.P. (4)
|
|
10.14
|
Employment
Agreement of Steven M. Bell dated January, 1, 2002(5)
|
|
10.15
|
Employment
Agreement of James Mandel dated January 1, 2002(5)
|
|
10.16
|
Acquisition
Agreement of Minnesota Digital Universe (9)
|
|
10.17
|
Acquisition
of Rainbow Satellite Group, LLC (10)
|
|
14
|
Multiband
Code of Ethics for Senior Officers (9)
|
|
19.1
|
2000
Non-Employee Director Stock Compensation Plan (3)
|
|
19.2
|
2000
Employee Stock Purchase Plan (3)
|
|
21.1
|
List
of subsidiaries of the registrant(1)
|
|
23.1
|
Consent
of Virchow, Krause & Company, LLP (15)
|
|
24.1
|
Power
of Attorney (included on signature page of original registration
statement)
|
|
Rule
13a-14 (s) Certification of Chief Executive Officer - James Mandel
(15)
|
||
Rule
13a-14 (s) Certification of Chief Financial Officer - Steven Bell
(15)
|
||
Section
1350 of Sarbanes-Oxley Act of 2002 - James Mandel (15)
|
||
Section
1350of Sarbanes-Oxley Act of 2002 - Steven Bell (15)
|
||
(1) |
Previously
filed as the same exhibit to the Registrant's Registration Statement
on
Form 10, as amended.
|
(2) |
Previously
filed as the same exhibit to the original Registration Statement
on
Form S-1 filed on August 11, 2000 and declared effective on
August 18, 2000.
|
(3) |
Previously
filed as the same exhibit to Registrant’s Proxy Statement on Form 14A,
filed on July 31, 2000.
|
(4) |
Previously
filed as the same exhibit to the original Registration Statement
on Form
S-1 filed on August 15, 2001 and declared effective on August 20,
2001.
|
(5) |
Previously
filed as the same exhibit to Registrant’s Form 10-Q filed May 15,
2002
|
(6) |
Previously
filed as the same exhibit to Registrant’s Form 8-K filed September 24,
2003.
|
(7) |
Previously
filed as the same exhibit to Registrant’s Form 8-K filed December 16,
2003.
|
(8) |
Previously
filed as the same exhibit to Registrant’s Form 8-K filed March 17,
2004.
|
(9) |
Previously
filed as the same exhibit to registrants Form 8-K filed June 9,
2004.
|
(10) |
Previously
filed as the same exhibit to registrants form 8-K filed July 9,
2004.
|
(11) |
Previously
filed as the same exhibit to registrants form 8-K filed November
19,
2004.
|
(12) |
Previously
filed as the same exhibit to registrants form 8-K filed November
24,
2004.
|
(13) |
Previously
filed as the same exhibit to registrants form 8-K filed February
3,
2005.
|
(14) |
Previously
filed as the same exhibit to registrants form 8K filed April 6,
2005
|
(15) |
Filed
herewith
|