Stereotaxis
    Print Page  Close Window
S-1/A
STEREOTAXIS, INC. filed this Form S-1/A on 06/17/2004
Entire Document
 << Previous Page | Next Page >>
Table of Contents

STEREOTAXIS, INC.

NOTES TO FINANCIAL STATEMENTS — (Continued)

(Information as of March 31, 2004 and for the three months ended
March 31, 2003 and 2004 is unaudited)
 
6. Accrued Liabilities

       Accrued liabilities consist of the following:

                         
December 31

March 31
2002 2003 2004



(Unaudited)
Accrued salaries, bonus, and benefits
  $ 1,202,013     $ 1,570,063     $ 1,251,911  
Accrued research and development
    568,564       727,143       906,769  
Accrued legal
    266,513       696,772       975,878  
Accrued other professional fees
    279,572       271,760       235,834  
Other
    239,670       1,670,495       1,254,170  
     
     
     
 
    $ 2,556,332     $ 4,936,233     $ 4,624,562  
     
     
     
 
 
7. Long-Term Debt

       Long-term debt consists of the following:

                         
December 31

March 31
2002 2003 2004



(Unaudited)
Revolving credit agreement, due April 2004
  $ 998,240     $ 1,250,000     $ 1,250,000  
Term note, due December 2004
    1,328,316       711,469       543,004  
Term note, due September 2005
    859,076       571,613       493,646  
Pay-in-kind note, due August 2006
          2,000,000       2,000,000  
     
     
     
 
      3,185,632       4,533,082       4,286,650  
Less current maturities
    904,311       2,289,314       2,131,801  
     
     
     
 
    $ 2,281,321     $ 2,243,768     $ 2,154,849  
     
     
     
 

       In January 2002, the Company entered into a term note with its primary lender for $2,000,000 (January 2002 term note). In conjunction with the January 2002 term note, the Company issued its primary lender warrants to purchase 50,692 shares of Company’s Series D-1 preferred stock at a price equal to the price per share of $2.17. The total proceeds under the January 2002 term note of $2,000,000 were allocated between the term note and the warrants based on an estimate of each security’s fair value at the date of issuance. Under the January 2002 term note, the Company is required to make equal payments of principal and interest, at 10%, through December 2004.

       The warrants expire after five years and can be exercised at any time. The fair value assigned to the warrants of $92,793 was reflected in additional paid-in capital on the balance sheet and is included in debt issuance costs, which are being amortized to interest expense over the life of the January 2002 term note. Fair value was determined utilizing the Black-Scholes valuation method, assuming a volatility of 120%, a risk-free interest rate of 3% and an expected life of five years.

       In March 2002, the Company entered into a revolving line of credit agreement (Revolving Credit Agreement) with a maximum borrowing capacity of $2,000,000, limited to the value of qualifying receivable and inventory balances, with its primary lender. In conjunction with the Revolving Credit Agreement, the Company issued its primary lender warrants to purchase 36,868 shares of the

F-16


 << Previous Page | Next Page >>