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Page 1 of 5 of 85 replies
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June 26, 2007 at
03:56:36 PM
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This message was edited on
June 26, 2007 at
04:11:52 PM by Cobra
The clock is ticking.... June 30th is rapidly approaching ...lets brace ourselves 
http://finance.yahoo.com/q?s=DMSP.OB
http://www.sec.gov/Archives/edgar/data/793041/000095013407011595/d46695e10qsb.htm
NOTE 9 – NOTES PAYABLE From May 2005 through April 2006 we issued $12.4 million in promissory notes payable to existing shareholders. These notes were classified as current, due and payable on the first to occur of: (i) October 27, 2006 (ii) the completion of an equity or equity linked financing with gross proceeds of $9,000,000 or (iii) the acceleration of the obligations under the promissory notes. These promissory notes bear interest at 8% for the first 6 months from the date of issuance and 12% for the next 6 months and was payable on a quarterly basis. The Company issued warrants to purchase 1,948,510 shares of our common stock at an exercise price of $4.50 in connection with these notes. The warrants were valued based on the Black-Scholes fair value method and the value was recorded as a non-cash debt discount and was being amortized over the life of the notes. In connection with the Series D Preferred Stock financing in May 2006, we repaid $867,506 of these notes plus accrued interest and we exchanged the remaining $11.6 million in notes plus accrued interest into 4,401 shares of our Series D Preferred stock and issued Series D warrants to purchase 1,320,178 shares of our common stock at an exercise price of $4.50. At the time of conversion, the company recognized the remaining unamortized debt discount as interest expense in 2006. Additionally, the Company recognized interest expense for the conversion of the notes at 110% into Series D preferred stock (Note 10). During the first quarter of 2007, the Company entered into a line of credit agreement with one of its principal shareholders to provide the Company with working capital advances. Amounts outstanding bear interest at 8%, no amounts are outstanding under the line of credit as of March 31, 2007. In March 2007, the Company issued to several of its principal shareholders $0.6 million in secured promissory notes payable. The notes are due June 30, 2007, bear interest at 8% per year and are secured by the assets of the Company. The proceeds from these notes were -13-
used to fund the working capital needs of the Company. In April 2007, the Company issued to several of its principal shareholders $0.4 million in secured promissory notes payable. The notes are due June 30, 2007, bear interest at 8% per year and are secured by the assets of the Company. The proceeds from these notes were used to fund the working capital needs of the Company. The Company expects to complete an additional financing in the second quarter of 2007 at which time the holders of these notes issued in 2007 will receive warrants in amounts and exercise prices equivalent to those issued in the subsequent financing. The fair value of the warrants issued will be recorded as an increase in additional paid in capital and will be recorded as a discount to these notes payable and will be recognized as interest expense in the second quarter of 2007. Notes payable at March 31, 2007 consisted of the following: $92,000 note payable issued in connection with the purchase of Lernerville Speedway, which is due in one installment of $110,000, including accrued interest, on May 30, 2007. This note is secured by a mortgage on the Lernerville Speedway Facility. $2,340,000 notes payable issued in connection with the purchase of Lernerville Speedway, bearing interest at 7% payable annually each November. The balance is due upon maturity on March 15, 2009. This note is secured by a mortgage on the Lernerville Speedway Facility. $2,000,000 note payable issued in connection with the purchase of Volusia Speedway, bearing interest at one percent over prime and payable in fifty-nine equal monthly installments commencing at $24,000 per month and adjusted quarterly for changes in interest rates with the balance of the outstanding principal and accrued interest due on June 30, 2010. The outstanding principle balance on this note was $1,716,877 as of March 31, 2007. This note is secured by a mortgage on the real property, and security agreement covering the other assets acquired from Volusia Speedway. $423,000 note payable to an individual bearing interest at 8% and payable on or before June 15, 2007. $307,633 in various vehicle notes payable, bearing interest at 6.25% and due in monthly installments of principal and interest through February 2011. $600,000 in secured promissory notes payable issued in March 2007 bearing interest at 8% per year and due June 30, 2007. These promissory notes are secured by the assets of the Company. Liquidity and Capital Resources The Company generated $2.5 million in revenues during the period ended March 31, 2007; however, we have not yet achieved a profitable level of operations. Our primary source of funding for our operating deficits during the quarter ended March 31, 2007 has been from the issuance of notes payable. During the period ended March 31, 2007, the Company used $0.6 million in operating activities primarily the result of a net loss of $2.3 million, depreciation and amortization of $0.2 million, non-cash stock compensation of $0.5 million and other working capital changes, primarily accounts payable and accrued liabilities. During the three months ended March 31, 2007, the Company used $0.2 million in investing activities primarily for track improvements and for leasehold improvements and equipment purchases for our new corporate offices in Concord, North Carolina. During the three months ended March 31, 2007, financing activities provided $0.5 million primarily through the issuance of $0.6 million in notes payable offset by repayment of $0.1 million in notes payable. The Company incurred a net loss of $2.3 million for the period ended March 31, 2007. The Company has an accumulated deficit of $63.0 million as of March 31, 2007, which raises substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. During the second quarter ending June 30, 2007, approximately $1.5 million in notes payable and other obligations become due and payable in addition to our normal course trade payables. To satisfy these obligations, and continue as a going concern, the Company must obtain additional capital. Management is currently in negotiations to secure debt financing from certain current shareholders, and to restructure certain current liabilities and preferred stock. No assurances can be given that the Company will be successful in obtaining such debt or other financing, or in connection with its restructuring initiatives. As the future success of the Company is dependent on our ability to fund operations, the Company’s ability to continue as a going concern is at a high degree of risk. Our independent accountants’ opinion on our 2006 consolidated financial statements includes an explanatory paragraph indicating substantial doubt about our ability to continue as a going concern. Revenues from operations are still significantly below levels necessary to achieve positive cash flow. From inception to March 31, 2007, our aggregate net loss is approximately $63.0 million. Our cash position is $0.3 million at March 31, 2007, and we expect the net losses and negative cash flow to continue throughout 2007. During the second quarter ending June 30, 2007, approximately $1.5 million in notes payable and other obligations become due and payable in addition to our normal course trade payables. To satisfy these obligations, and continue as a going concern, the Company must obtain additional capital. Management is currently in negotiations to secure debt financing from certain current shareholders. In the event we are unable to obtain debt or other financing, we will be unable to continue as a going concern. Our short-term liquidity could disrupt our event schedule, which would adversely affect our results of operations.
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June 26, 2007 at
06:13:02 PM
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That looks very serious...
Another chapter in an interesting story is about to unfold...
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June 26, 2007 at
06:19:38 PM
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Reply to:
Posted By: Mr. Mac on June 26 2007 at 06:13:02 PM
That looks very serious...
Another chapter in an interesting story is about to unfold...
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Our short-term liquidity could disrupt our event schedule, which would adversely affect our results of operations.
Does this mean I should hold off on buying future event tickets? (ie. the Finals @lowes)
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June 26, 2007 at
08:15:49 PM
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18,000 shares dumped over the past two days...
To the people who enjoyed bashing me a year or so ago..... I hate to say I told you so, but................
Member of this message board since 1997
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June 26, 2007 at
09:07:08 PM
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sorry about your luck shareholders and true believers...the phrase "month of money" is about to take on new meaning!
Lincoln 1845 ft/.35 mile T1=118MPH
Eldora 2287 ft/.43mile T3=135MPH
Port 2716 ft/.51 mile T3=TBD
Grove 2792 ft/.53 mile T3=135MPH
Selinsgrove 2847 ft/.54 mile T1=136MPH
"I didn't move to PA from El Paso in search of better
weather." Van May
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June 26, 2007 at
09:28:32 PM
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Obviuosly it's been this way for a some time now and somehow the WoO seem to keep this sinking ship afloat. It's not going anywhere. There's someone out there who will come in at penny's on the dollar and keep it going. Someone explain why they are purchasing tracks.
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June 26, 2007 at
10:21:16 PM
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Reply to:
Posted By: WFO81 on June 26 2007 at 09:28:32 PM
Obviuosly it's been this way for a some time now and somehow the WoO seem to keep this sinking ship afloat. It's not going anywhere. There's someone out there who will come in at penny's on the dollar and keep it going. Someone explain why they are purchasing tracks.
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Actually, the way they set up the business, there is no way someone can come in and do a "hostile takeover" by purchasing the stock for pennies on the dollar. They set it up to where the "powers that be" own 51% (or more) of the Series D stock, a stock that the public can not buy. Therefore, when they default on their loans against their debt, they will only lose their tangible assets (vehicles, radios, office equipment, tracks and whatever cash they may have on hand). They will still own the WoO name.
Member of this message board since 1997
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June 26, 2007 at
10:35:00 PM
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Hawker
Would you like to bet a steak dinner at Udders or another place of your choice that the World of Outlaws will be in operation the rest of this season and in 2008? Frankly, nothing else really matteres now, does it?
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June 26, 2007 at
10:49:25 PM
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Reply to:
Posted By: Hawker on June 26 2007 at 10:21:16 PM
Actually, the way they set up the business, there is no way someone can come in and do a "hostile takeover" by purchasing the stock for pennies on the dollar. They set it up to where the "powers that be" own 51% (or more) of the Series D stock, a stock that the public can not buy. Therefore, when they default on their loans against their debt, they will only lose their tangible assets (vehicles, radios, office equipment, tracks and whatever cash they may have on hand). They will still own the WoO name.
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If it all blows up and all they have is the name WoO. It's still worth some other invester coming in with an influx of cash at presumably a much cheaper cost. If your Series D stock is worth nothing it doesn't sound like they'll have many options. Everybody has a price right and I would think "the powers that be" would be included. Who knows maybe it's harder than we think to get 10+ top notch sprint car teams to travel all over the country. This is probably one of the most competitve years ever.
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June 26, 2007 at
10:54:04 PM
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Hey Pat, what the heck are you doing being a truck driver when you could be a wall street banker?
BTW, have you heard of any promoters paying for shows 20 years in advance to them as a "loan" or of anyone getting a bad check from them.
The NST is dead, gone, kaput, and you are still on your attack on a company that has done everything you have indicated it could not do.
jeesch!
Save your butt, get a colon screening TODAY
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Laser Engraving
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June 27, 2007 at
02:05:00 AM
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Hawker,
I for one stayed out of the WoO/NST debate and haven't really taken a side. However, let me ask you this. Would you rather be "Right" and have the WoO go under? Or would you rather the WoO succeed? I honestly think you are so egotistical that you would rather the WoO go under just to be right. It's pretty pathetic seeing you get excited over the top sprint car series in the world having financial trouble.
We are living in the best period ever in the history of the World of Outlaws in terms of value for our entertainment dollar and people like you are way to busy worrying about that crap instead of enjoying and cherishing what we have now.
There's so much to like about the World of Outlaws right now, enjoy it.
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June 27, 2007 at
02:46:06 AM
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Does Daryl work for the WoO or is he a politician ?
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June 27, 2007 at
02:53:44 AM
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Shockingly, neither. I'm just a fan who is happy to know that the WoO will be racing in my province for the first time with a full field of 410 sprint cars. Something you couldn't say before the current ownership group existed. Also before the current ownership group the WoO had no value. All you were buying with the Outlaws with the name. The current ownership group gave value to the name by signing drivers to contracts and giving them far greater tow money than they had ever seen before. To deny these accomplishments is an act of ignorance. Even in the times of corporate sponsorship during the late 90's the tour only had 12 or 13 guys who hit every single show. The current ownership group has nearly doubled that and I for one am happy to know that when I go to an Outlaw show now I'm going to get a full field of the best.
Sure, they may go bankrupt, but whoever ends up with them will end up with them in the best shape the WoO has ever been in during their entire existence.
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June 27, 2007 at
06:58:35 AM
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Reply to:
Posted By: John Katich on June 26 2007 at 10:35:00 PM
Hawker
Would you like to bet a steak dinner at Udders or another place of your choice that the World of Outlaws will be in operation the rest of this season and in 2008? Frankly, nothing else really matteres now, does it?
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Define "in operation"...
Member of this message board since 1997
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June 27, 2007 at
07:02:42 AM
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This message was edited on
June 27, 2007 at
07:06:15 AM by Hawker
Reply to:
Posted By: nodust on June 26 2007 at 10:54:04 PM
Hey Pat, what the heck are you doing being a truck driver when you could be a wall street banker?
BTW, have you heard of any promoters paying for shows 20 years in advance to them as a "loan" or of anyone getting a bad check from them.
The NST is dead, gone, kaput, and you are still on your attack on a company that has done everything you have indicated it could not do.
jeesch!
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Truck driver??? Try again!!!
Airmen Database Search Result
Name : GRANT, PATRICK LEE
Airman's Address : 4508 W KNOX DR
COLUMBIA, MO, 65203-7214
FAA Region : Central
Airman Certificates : Mechanic
Airframe and Powerplant
BTW, I was making this prediction long before the NST came along.
Member of this message board since 1997
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June 27, 2007 at
07:07:12 AM
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"in operation" I would translate to having races. Bet or no bet? Inquiring minds (albiet small) want to know.
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June 27, 2007 at
07:16:33 AM
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Reply to:
Posted By: Daryl29 on June 27 2007 at 02:05:00 AM
Hawker,
I for one stayed out of the WoO/NST debate and haven't really taken a side. However, let me ask you this. Would you rather be "Right" and have the WoO go under? Or would you rather the WoO succeed? I honestly think you are so egotistical that you would rather the WoO go under just to be right. It's pretty pathetic seeing you get excited over the top sprint car series in the world having financial trouble.
We are living in the best period ever in the history of the World of Outlaws in terms of value for our entertainment dollar and people like you are way to busy worrying about that crap instead of enjoying and cherishing what we have now.
There's so much to like about the World of Outlaws right now, enjoy it.
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Wow, don't blame me because I'm right. I guess I need to appologize because I stayed awake in school...
Just as I am sure that the financial "greats" at DIRT could care less if I couldn't control my spending and had to file for bankruptcy, yeah, I could care less what happens to DIRT. I didn't twist their arm and make them buy all of the tracks and other sanctions, thus driving them to over $60,000,000 in debt. It was their choice to be the "only game in town". Face it, they made their bed and now they have to lie in it.
Member of this message board since 1997
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June 27, 2007 at
07:19:52 AM
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Reply to:
Posted By: Offie on June 27 2007 at 07:07:12 AM
"in operation" I would translate to having races. Bet or no bet? Inquiring minds (albiet small) want to know.
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I'm sure that they will find another sucker to borrow money from. Or, make another loan against their debt at a higher interest rate. So, no... I will pass on the bet. But while we are throwing bets on the table. Here's one back at ya. I'll bet $500 that DIRT won't turn a profit in the next 6 quarters.
Member of this message board since 1997
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June 27, 2007 at
07:29:21 AM
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Hawker
If the series is in operation, paying its bills, sanctioning events and there are tracks making money with those events and scheduling them on an ongoing basis, why are you so concerned about whether they turn a profit in the next six quarters?
This has all been discussed on my show and elsewhere over the past couple of years. The sport will continue to move ahead in the future and the World of Outlaws will continue to be an important part of the process. That is what is truly important.
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June 27, 2007 at
08:02:07 AM
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paying its bills?
closing in on $60 million in debt...paying its bills...thats a good one!
Lincoln 1845 ft/.35 mile T1=118MPH
Eldora 2287 ft/.43mile T3=135MPH
Port 2716 ft/.51 mile T3=TBD
Grove 2792 ft/.53 mile T3=135MPH
Selinsgrove 2847 ft/.54 mile T1=136MPH
"I didn't move to PA from El Paso in search of better
weather." Van May
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