Spatialight said first-quarter loss widened to $2.1 million from ...
Spatialight said first-quarter loss widened to $2.1 million from $1.4 million as start-up microdisplay company failed to generate any revenue. Company had net capital deficiency of $708,659 as of March 31, raising “substantial doubt” about its ability to continue…
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as “going concern,” according to SEC filing. During 2002, Spatialight will meet working capital and other cash requirements by exercise of warrants by existing investors with ties to 2 members of company’s board. It also has stock subscriptions receivable of $2 million, SEC filing said. Cash expenditures are expected to run $400,000 per month this year, not including any revenue generated from technical trials that are under way. Spatialight has signed licensing agreements for its liquid-crystal-on-silicon (LCoS) technology with 4 Chinese manufacturers including, most recently, Shanghai Audio & Video. Acting CEO Robert Olin, whose Argyle Capital Management Corp., owns 3.5 million shares (13.7% of outstanding common), wasn’t paid salary in 2001, but received options for 1.2 million shares. Top shareholder is Estate of Isidore Becker, which controls 3.8 million shares (14.8%). EMagin said first-quarter loss narrowed to $6.4 million from $9.7 million as revenue tumbled to $158,027 from $2 million as company struggled, temporarily closing microdisplay facility and laying off 57 workers in cost-saving move last fall. It has since hired back 11 after gaining $1 million in equity financing. EMagin also was continuing negotiations with Travelers Insurance Co. at our deadline on $1 million note that matures today (Mon.). EMagin entered agreement with Travelers last Aug. under which latter provided $1 million loan. Company is trying to settle note with different debt or equity security since it doesn’t have enough money to pay note at maturity, it said in SEC filing. Company also reached agreement to sell 1.2 million shares to Rohm, generating $1 million in proceeds. Under agreement, companies also are to enter pact within 180 days of closing of stock sale to jointly develop and market organic light-emitting diode (OLED) technologies.