{"component": "clause", "props": {"groups": [{"snippet": "ETT in a prudent and business-like manner will immediately begin a search both to provide new borrowings to replace First Valley Bank as soon as possible and new equity capital to continue the planned growth program. Prior to the search, a forecast and a budget must be prepared to support this effort.", "snippet_links": [{"key": "to-provide", "type": "clause", "offset": [79, 89]}, {"key": "new-borrowings", "type": "clause", "offset": [90, 104]}, {"key": "as-soon-as-possible", "type": "definition", "offset": [134, 153]}, {"key": "equity-capital", "type": "definition", "offset": [162, 176]}, {"key": "the-planned", "type": "clause", "offset": [189, 200]}, {"key": "prior-to-the", "type": "clause", "offset": [217, 229]}, {"key": "be-prepared", "type": "clause", "offset": [267, 278]}], "samples": [{"hash": "dhwRsqbt88h", "uri": "/contracts/dhwRsqbt88h#subsequent-event", "label": "Merger Agreement (Environmental Testing Technologies Inc)", "score": 16.0, "published": true}, {"hash": "1FxJFeRunjp", "uri": "/contracts/1FxJFeRunjp#subsequent-event", "label": "Merger Agreement (Environmental Testing Technologies Inc)", "score": 16.0, "published": true}], "size": 2, "hash": "3d722a7cdb83ba3cafa979ab85dd6b4c", "id": 4}, {"snippet": "In connection with entering into the $16.0 million promissory in May 2001 (Note 1), the Company granted the lender a warrant to purchase 426,667 shares of the Company's Class A common stock at an exercise price of $4.00 per share. The warrant expires in May 2006. During the term of the promissory note, assuming certain prepayment milestones are not met, the lender will receive warrants to purchase up to an additional 426,667 shares of the Company's Class A common stock at an exercise price equal to 110% of the then current market price. If the Company prepays the note prior to six months following its issuance, up to $1.6 million of the principal amount is convertible, at the lender's option, into the Company's Class A common stock at a conversion price of $4.00 per share. Balance at Charged to Charged Balance at Beginning Costs and to Deductions End of Description of Period Expenses Accounts Describe Period ----------- ---------- ---------- -------- ---------- ---------- Year ended March 31, 1999: Deducted from asset accounts: Allowance for doubtful accounts.............. $ 432,000 $ 332,000 $125,000 $ (50,000) $ 839,000 Reserve for inventory obsolescence.......... 2,881,000 1,590,000 0 (1,300,000) 3,171,000 Year ended March 31, 2000 Deducted from asset accounts: Allowance for doubtful accounts............... $ 839,000 $1,293,000 $ 0 $ (64,000) $2,068,000 Reserve for inventory obsolescence.......... 3,171,000 1,438,000 0 (1,123,000) 3,486,000 Year ended March 31, 2001 Deducted from asset accounts: Allowance for doubtful accounts............... $2.068,000 $ 78,000 $ 0 $ (502,000) $1,644,000 Reserve for inventory obsolescence.......... 3,486,000 4,925,000 0 (4,443,000) 3,968,000 EXHIBIT 10.10\u200c TBCC Amendment to Loan Documents Borrowers: Odetics, Inc., a Delaware corporation Odetics ITS, Inc., a California corporation Gyyr Incorporated, a California corporation Mariner Networks, Inc., a Delaware corporation \u2587\u2587\u2587\u2587\u2587, Mohaddes Associates, Inc., a California corporation Address: \u2587\u2587\u2587\u2587 \u2587. \u2587\u2587\u2587\u2587\u2587\u2587\u2587\u2587\u2587\u2587 \u2587\u2587\u2587\u2587\u2587\u2587\u2587, \u2587\u2587\u2587\u2587\u2587\u2587\u2587\u2587\u2587\u2587 \u2587\u2587\u2587\u2587\u2587 Date: May 29, 2001 THIS AMENDMENT TO LOAN DOCUMENTS is entered into between TRANSAMERICA BUSINESS CREDIT CORPORATION, a Delaware corporation, (\"TBCC\") having its principal office at \u2587\u2587\u2587\u2587 \u2587\u2587\u2587\u2587 \u2587\u2587\u2587\u2587\u2587\u2587\u2587 \u2587\u2587\u2587\u2587, Suite 600, Rosemont, Illinois 60018 and having an office at \u2587\u2587\u2587\u2587\u2587 \u2587\u2587\u2587\u2587\u2587\u2587\u2587 \u2587\u2587\u2587\u2587., \u2587\u2587\u2587\u2587\u2587 \u2587\u2587\u2587\u2587, \u2587\u2587\u2587\u2587\u2587\u2587\u2587 \u2587\u2587\u2587\u2587, California 91403, and the borrowers named above (jointly and severally, the \"Borrower\"). This Amendment is executed and delivered pursuant to a Forbearance Agreement of substantially even date among the parties hereto (the \"Forbearance Agreement\"). The parties hereto agree to amend the Loan and Security Agreement between them, dated December 28, 1998 (as amended, the \"Loan Agreement\"), as follows, effective as of the date hereof. (This Amendment, the Loan Agreement, any prior written amendments to said agreements signed by TBCC and the Borrower, and all other written documents and agreements between TBCC and the Borrower are referred to herein collectively as the \"Loan Documents\". 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establishment of CRRC Financial Leasing Company through the contribution of capital by the Company, CRRC Group, China Energy Reserve and Tianjin Trust is subject to approval from CBRC. Therefore, completion of the Transaction is subject to uncertainties. In addition, since CBRC will review the qualifications of the parties after the formal submission of the relevant materials, the parties to the Transaction (other than the Company and CRRC Group) and their respective shareholding may change. In order to proceed with the establishment of the CRRC Financial Leasing Company, the president of the Company is authorised by the Board to change the parties to the Transaction (other than the Company and CRRC Group) and their respective shareholding in accordance with the requirements of the relevant PRC regulatory authority. 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All share amounts have been retroactively adjusted for all period's presented. FC FINANCIAL SERVICES, INC. (A Development Stage Company) FINANCIAL STATEMENTS Balance Sheets F-1 Statements of Operations F-2 Statements of Cash Flows F-3 Statements of Stockholders\u2019 Equity F-4 F-i F-ii (A Development Stage Company) (Expressed in US dollars) (unaudited) ASSETS Current Assets Cash 1,024,961 49,963 Prepaid expenses 10,000 \u2013 Loan receivable (Note 3) 1,004,110 \u2013 Total Current Assets 2,039,071 49,963 Property and Equipment (Note 4) 5,428 6,241 TOTAL ASSETS 2,044,499 56,204 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Current Liabilities Accounts payable 848 \u2013 Accrued liabilities 3,250 8,805 Total Current Liabilities 4,098 8,805 TOTAL LIABILITIES 4,098 8,805 STOCKHOLDERS' EQUITY Common stock 100,000,000 shares authorized, $0.00001 par value, 32,722,750 shares issued and outstanding (Note 6) 327 307 Additional paid-in capital (Note 6) 2,114,158 114,198 Donated capital (Notes 5(b) and (c)) 41,400 27,600 Deficit accumulated during the development stage (115,484 ) (94,706 ) Total Stockholders' Equity 2,040,401 47,399 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 2,044,499 56,204 (A Development Stage Company) (Expressed in US dollars) (unaudited) REVENUE Interest income 4,124 4,112 8 4,116 8 EXPENSES Consulting (Note 4(b)) 36,000 6,000 6,000 12,000 12,000 General and administrative expenses 80,796 6,130 8,835 12,081 29,378 Amortization 1,625 406 \u2013 813 Interest expense 1,187 \u2013 118 \u2013 413 Total expenses 119,608 12,536 14,953 24,894 41,791 NET LOSS (115,484 ) (8,424 ) (14,945 ) (20,778 ) (41,783 ) NET LOSS PER SHARE \u2013 Basic and Diluted \u2013 \u2013 \u2013 \u2013 $ ( 0.01 ) Weighted Average Number of Common Shares Outstanding 31,049,000 5,871,000 30,887,000 5,440,000 (A Development Stage Company) (Expressed in US dollars) (unaudited) CASH FLOWS TO OPERATING ACTIVITIES Net loss (115,484 ) (20,778 ) (41,783 ) Adjustments to reconcile net loss to net cash used in operating activities Amortization 1,625 813 \u2013 Interest on loan receivable (4,110 ) (4,110 ) Donated services and rent 41,400 13,800 13,800 Changes in operating assets and liabilities Prepaid expenses (10,000 ) (10,000 ) \u2013 Accounts payable and accrued liabilities 4,098 (4,707 ) 3,001 Net Cash Used In Operating Activities (82,471 ) (24,982 ) (24,982 ) CASH FLOWS TO INVESTING ACTIVITIES Loan receivable (1,000,000 ) (1,000,000 ) \u2013 Acquisition of capital assets (7,053 ) \u2013 \u2013 Net Cash Used In Investing Activities (1,007,053 ) (1,000,000 ) \u2013 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of common stock 2,114,485 1,999,980 114,455 Loan from shareholders \u2013 \u2013 (22,573 ) Net Cash Provided By Financing Activities 2,114,485 1,999,980 91,882 INCREASE IN CASH 1,024,961 974,998 66,900 CASH, BEGINNING OF PERIOD \u2013 49,963 32 CASH, END OF PERIOD 1,024,961 1,024,961 66,932 Non-cash Investing and Financing Activities \u2013 \u2013 \u2013 Supplemental Disclosures: Cash paid (received) for interest 403 (6 ) \u2013 Cash paid for taxes \u2013 \u2013 \u2013 Non-cash Investing and Financing Activities \u2013 \u2013 \u2013 (A Development Stage Company) For the Period from November 19, 2003 (Date of Inception) to May 31, 2006 (Expressed in US dollars) (unaudited interim financial statements) Balance \u2013 November 19, 2003 (Date of Inception) \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Issuance of common stock for cash at $0.00001 per share - November 27, 2003 25,000,000 250 (200 ) \u2013 \u2013 50 Net loss for the period \u2013 \u2013 \u2013 \u2013 (22,791 ) (22,791 ) Balance \u2013 November 30, 2004 25,000,000 250 (200 ) \u2013 (22,791 ) (22,741 ) Issuance of common stock for cash \u2013 at $0.02 per share 5,722,750 57 114,398 \u2013 114,455 Donated services and rent \u2013 \u2013 \u2013 27,600 \u2013 27,600 Net loss for the period \u2013 \u2013 \u2013 \u2013 (71,915 ) (71,915 ) Balance \u2013 November 30, 2005 30,722,750 307 114,198 27,600 (94,706 ) 47,399 Issuance of common shares for cash 2,000,000 20 1,999,960 1,999,980 Donated services and rent \u2013 \u2013 \u2013 13,800 \u2013 13,800 Net loss for the period \u2013 \u2013 \u2013 (20,778 ) (20,778 ) Balance \u2013 May 31, 2006 32,722,750 327 2,114,158 41,400 (115,484 ) 2,040,401 See Note 6 for a forward stock split on a five-for-one basis. (A Development Stage Company) (Expressed in US dollars) (unaudited)\n1. NATURE OF OPERATIONS AND CONTINUANCE OF BUSINESS FC Financial Services, Inc. (the \u201cCompany\u201d) was incorporated in the State of Nevada on November 19, 2003, where it maintains a statutory registered agent's office. The Company\u2019s principal executive office is located in Ontario, Canada. The Company intends to initiate operations in Canada, and is not subject to any deadlines to obtain U.S. licenses in order to begin operations. The Company is a Development Stage Company as defined by Statement of Financial Accounting Standard (\u201cSFAS\u201d) No. 7. The Company filed an SB-2 Registration Statement (\u201cSB-2\u201d) with the United States Securities Commission that was declared effective on February 23, 2005. The Company issued 5,722,750 common shares pursuant to the SB-2, at a price of $0.02 per share, for total proceeds of $114,455. On December 8, 2005, the Company authorized a forward stock split and increased the number of issued and outstanding shares on a five-for-one (5:1) basis. All share amounts have been retroactively adjusted for all periods presented. In May 2006, the Directors approved a private placement financing of 5,000,000 units at $1.00 per unit to raise up to $5,000,000, pursuant to Regulation S of the Securities Act of 1933. Each unit will consist of one share and one share purchase warrant entitling the holder to purchase one share of the Company at a price of $1.00 per share during the period ending eighteen months from the date of issue. The Company has received subscriptions under Regulation S for 2,500,000 units. Also in May 2006, the Company signed a term sheet to purchase all of the issued shares of ICP Solar Technologies Inc. (\u201cICP\u201d), which is engaged in the manufacture and distribution of solar power products, in consideration for 20,000,000 shares in the Company. Concurrent with the closing of the acquisition, the holders of 24,222,750 restricted shares of the Company have agreed to surrender those shares for cancellation. On May 16, 2006, the Company advanced a $1,000,000 bridge loan to ICP, which bears interest at 10% per annum. On July 4, 2006, the Company increased the bridge loan to $1,500,000. Closing of the acquisition is subject to the Company completing a financing of $5,000,000 as described above. The Company is listed on the Over-the-Counter Bulletin Board under the symbol \u201cFCFN\u201d. These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. As of May 31, 2006, the Company had not recognized any revenues and had accumulated losses of $117,984 since inception. The Company\u2019s ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and its ability to achieve and maintain profitable operations. There is no assurance that any such activity will generate funds that will be available for operations. Management is considering alternatives to its initial business plan. These financial statements do not include any adjustments to the recoverability and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors raise substantial doubt regarding the Company\u2019s ability to continue as a going concern. (A Development Stage Company) (Expressed in US dollars) (unaudited)\n2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES\n(a) Basis of Accounting These financial statements have been reported in US dollars in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The Company\u2019s policy is to prepare its financial statements on the accrual basis of accounting. The fiscal year end is November 30.\n(b) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.\n(c) Basic and Diluted Net Income (Loss) Per Share The Company computes net income (loss) per share in accordance with SFAS No. 128, \"Earnings per Share\". SFAS No. 128 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive.\n(d) Comprehensive Loss SFAS No. 130, \u201cReporting Comprehensive Income,\u201d establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at May 31, 2006, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.\n(e) Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less at the time of purchase to be cash equivalents.\n(f) Property and Equipment Capital assets are recorded at cost and annual amortization is provided on a straight-line basis over the estimated useful lives of the assets as follows. 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"type": "definition", "offset": [9035, 9047]}, {"key": "common-shareholders", "type": "definition", "offset": [9048, 9067]}, {"key": "number-of-shares-outstanding", "type": "definition", "offset": [9104, 9132]}, {"key": "diluted-eps", "type": "definition", "offset": [9166, 9177]}, {"key": "treasury-stock-method", "type": "definition", "offset": [9271, 9292]}, {"key": "convertible-preferred-stock", "type": "clause", "offset": [9297, 9324]}, {"key": "average-stock-price", "type": "clause", "offset": [9386, 9405]}, {"key": "options-or-warrants", "type": "clause", "offset": [9516, 9535]}, {"key": "potential-shares", "type": "definition", "offset": [9571, 9587]}, {"key": "comprehensive-loss", "type": "definition", "offset": [9626, 9644]}, {"key": "comprehensive-income", "type": "definition", "offset": [9670, 9690]}, {"key": "not-included", "type": "clause", "offset": [9916, 9928]}, {"key": "schedule-of", "type": "clause", "offset": [9931, 9942]}, {"key": "cash-and-cash-equivalents", "type": "definition", "offset": [9995, 10020]}, {"key": "original-maturity", "type": "definition", "offset": [10078, 10095]}, {"key": "time-of-purchase", "type": "definition", "offset": [10127, 10143]}, {"key": "at-cost", "type": "clause", "offset": [10223, 10230]}, {"key": "estimated-useful", "type": "clause", "offset": [10301, 10317]}, {"key": "the-assets", "type": "clause", "offset": [10327, 10337]}, {"key": "annual-rate", "type": "definition", "offset": [10366, 10377]}, {"key": "the-year", "type": "definition", "offset": [10390, 10398]}, {"key": "furniture-and-fixtures", "type": "definition", "offset": [10433, 10455]}], "samples": [{"hash": "fNjMDYHcoAd", "uri": "/contracts/fNjMDYHcoAd#subsequent-event", "label": "Share Purchase Agreement (Peress Sass)", "score": 21.0, "published": true}], "size": 2, "hash": "b68530f0d07d7cea148940253616fefc", "id": 6}, {"snippet": "On August 16, 1995, John\u2587\u2587\u2587\u2587 \u2587\u2587\u2587ntly announced with Jupiter an agreement and plan of merger under which the public shareholders of Jupiter would receive $32.875 per share in cash from John\u2587\u2587\u2587\u2587. \u2587he per share cash price is subject to adjustment based upon the market value of certain securities held by Jupiter on a date close to the date the merger proxy statement is mailed to Jupiter shareholders. If this adjustment had been made as of the close of business on August 15, 1995, the amount to be paid by John\u2587\u2587\u2587\u2587 would have been $31.593 per share or approximately $37,500,000. The merger is subject to approval by Jupiter's shareholders and is expected to close in February 1996. JOHN\u2587\u2587\u2587\u2587 \u2587\u2587\u2587USTRIES, INC. (PARENT COMPANY) SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEETS JUNE 30, 1995 AND 1994 ASSETS 1995 1994 CURRENT ASSETS: Cash and cash equivalents $ 2,979,000 $ 3,681,000 Prepaid expenses and other 469,000 522,000 Deferred income taxes 788,000 ------------ ------------- Total current assets 4,236,000 4,203,000 INVESTMENT IN WHOLLY OWNED CONSOLIDATED SUBSIDIARIES - At equity 95,705,000 92,116,000 INVESTMENTS IN MAJORITY OWNED SUBSIDIARY AND IN UNCONSOLIDATED AFFILIATES - At equity 29,067,000 21,036,000 PROPERTY, PLANT, AND EQUIPMENT - Net 2,739,000 2,331,000 INTANGIBLE ASSET - PENSION 2,675,000 2,874,000 OTHER ASSETS 1,721,000 7,127,000 LONG-TERM DEFERRED INCOME TAXES 4,859,000 5,933,000 ------------ ------------- $141,002,000 $ 135,620,000 ============ ============= LIABILITIES AND STOCKHOLDERS' EQUITY 1995 1994 CURRENT LIABILITIES: Short-term borrowings $ 6,800,000 $ 2,500,000 Current maturities of long-term debt 87,000 5,087,000 Accounts payable 856,000 280,000 Accrued expenses 3,012,000 2,037,000 Income taxes payable 656,000 Deferred income taxes 1,731,000 Intercompany payables 7,541,000 11,030,000 ------------ ------------- Total current liabilities 18,296,000 23,321,000 LONG-TERM DEBT 46,130,000 36,216,000 ------------ ------------- OTHER LIABILITIES 13,149,000 16,275,000 ------------ ------------- COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Common stock, par value $.10 per share; authorized, 20,000,000 shares; issued 12,426,891 and 12,411,891 1,243,000 1,241,000 Additional paid-in capital 17,258,000 17,107,000 Retained earnings 54,808,000 51,065,000 ------------ ------------- Total 73,309,000 69,413,000 Less treasury stock: 1,861,912 and 1,682,112 shares at (8,108,000) (6,407,000) cost Less minimum pension liability adjustment, net of tax (1,774,000) (3,198,000) benefit ------------ ------------- Stockholders' equity 63,427,000 59,808,000 ------------ ------------- $141,002,000 $ 135,620,000 ============ ============= JOHN\u2587\u2587\u2587\u2587 \u2587\u2587\u2587USTRIES, INC. (PARENT COMPANY) SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF INCOME YEARS ENDED JUNE 30, 1995, 1994, AND 1993 1995 1994 1993 NET SALES $ - $ - $ - COSTS AND EXPENSES: Cost of sales, excluding depreciation and amortization (5,000) 483,000 96,000 Selling, general, and administrative (53,000) (310,000) 93,000 Depreciation and amortization 255,000 (240,000) (252,000) ---------------- --------------- --------------- Total costs and expenses 197,000 (67,000) (63,000) ---------------- --------------- --------------- INCOME (LOSS) FROM OPERATIONS (197,000) 67,000 63,000 OTHER EXPENSE: Interest expense - net 3,776,000 2,984,000 2,504,000 Other - net 1,717,000 619,000 1,095,000 ---------------- --------------- --------------- Total other expenses 5,493,000 3,603,000 3,599,000 ---------------- --------------- --------------- EQUITY IN EARNINGS (LOSSES) OF EQUITY INVESTMENTS 2,784,000 (1,141,000) 5,093,000 ---------------- --------------- --------------- INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES AND INCOME FROM SUBSIDIARIES (2,906,000) (4,677,000) 1,557,000 PROVISION (BENEFIT) FOR INCOME TAXES (926,000) (1,606,000) 512,000 ---------------- --------------- --------------- NET INCOME (LOSS) BEFORE INCOME OF SUBSIDIARIES (1,980,000) (3,071,000) 1,045,000 INCOME FROM OPERATIONS OF SUBSIDIARIES 9,855,000 9,566,000 7,369,000 ---------------- --------------- --------------- NET INCOME $ 7,875,000 $ 6,495,000 $ 8,414,000 ================ =============== =============== JOHN\u2587\u2587\u2587\u2587 \u2587\u2587\u2587USTRIES, INC. (PARENT COMPANY) SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 1995, 1994, AND 1993 1995 1994 1993 OPERATING ACTIVITIES: Net income $ 7,875,000 $ 6,495,000 $ 8,414,000 ----------- ----------- ----------- Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 255,000 (240,000) (252,000) Undistributed income from operations of (9,855,000) (9,566,000) (7,369,000) subsidiaries Undistributed income of affiliates (2,784,000) 1,141,000 (5,093,000) Changes in assets and liabilities: Deferred income taxes (359,000) (161,000) 507,000 Prepaid expenses and other assets (299,000) (198,000) 324,000 Accounts payable 715,000 222,000 (36,000) Accrued expenses 975,000 (18,000) (94,000) Income taxes payable (687,000) (9,000) 152,000 Intercompany accounts (9,441,000) (10,752,000) (8,019,000) Other liabilities (568,000) 487,000 1,060,000 Other, net 4,000 124,000 124,000 ----------- ----------- ----------- Total adjustments (22,044,000) (18,970,000) (18,696,000) ----------- ----------- ----------- Net cash used in operating activities (14,169,000) (12,475,000) (10,282,000) ----------- ----------- ----------- INVESTING ACTIVITIES: Additions to property, plant, and equipment (720,000) (1,997,000) (200,000) Increase in investments (5,247,000) (4,578,000) (2,034,000) Repayments of loans by stockholders 5,383,000 341,000 ----------- ----------- ----------- Net cash used in investing activities (5,967,000) (1,192,000) (1,893,000) ----------- ----------- ----------- FINANCING ACTIVITIES: Principal payments of debt (5,086,000) (4,022,000) (2,000,000) Proceeds from issuance of long-term debt 10,000,000 13,325,000 Net borrowings (repayments) under line-of-credit 4,300,000 (7,500,000) 4,000,000 agreements Purchase of treasury stock (1,701,000) (348,000) (2,693,000) Proceeds from employee stock ownership plan 1,454,000 Proceeds from issuance of common stock 101,000 380,000 811,000 Payments from consolidated subsidiaries 15,952,000 15,818,000 16,749,000 Dividends paid (4,132,000) (3,694,000) (3,412,000) ----------- ----------- ----------- Net cash provided by financing activities 19,434,000 13,959,000 14,909,000 ----------- ----------- ----------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (702,000) 292,000 2,734,000 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 3,681,000 3,389,000 655,000 ----------- ----------- ----------- CASH AND CASH EQUIVALENTS, END OF YEAR $ 2,979,000 $ 3,681,000 $ 3,389,000 =========== =========== =========== SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the year for: Interest paid $ 3,673,000 $ 2,962,000 $ 2,861,000 =========== =========== =========== Income taxes paid $ 3,168,000 $ 2,401,000 $ 2,052,000 =========== =========== =========== JOHN\u2587\u2587\u2587\u2587 \u2587\u2587\u2587USTRIES, INC. (PARENT COMPANY) SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT NOTES TO CONDENSED FINANCIAL STATEMENTS John\u2587\u2587\u2587\u2587 \u2587\u2587\u2587ustries, Inc. and subsidiaries (the \"Company\") publish consolidated financial statements that are its primary financial statements. Therefore, these parent company condensed financial statements are not intended to be the primary financial statements of the Company, and should be read in conjunction with the consolidated financial statements and notes thereto of the Company. JOHN\u2587\u2587\u2587\u2587 \u2587\u2587\u2587USTRIES, INC. AND SUBSIDIARIES SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS BALANCE AT ADDITIONS BEGINNING CHARGED TO OTHER BALANCE AT DESCRIPTION OF YEAR OPERATIONS ACCOUNTS DEDUCTIONS END OF YEAR ALLOWANCE FOR DOUBTFUL ACCOUNTS 1995 $ 368,000 $ 305,000 $ 838,000(2) $ (398,000)(1) $ 1,113,000 ========= ========= ========= ========== ============ 1994 $ 314,000 $ 151,000 $ (97,000)(1) $ 368,000 ========= ========= ========= ========== ============ 1993 $ 667,000 $ 383,000 $ (736,000)(1) $ 314,000 ========= ========= ========= ========== ============\n(1) Amounts written off, net of recoveries.\n(2) Additional amount added during the year is from the consolidation of Jupiter in January 1995 representing the balance at the date of consolidation.", "snippet_links": [{"key": "agreement-and-plan-of-merger", "type": "definition", "offset": [63, 91]}, {"key": "public-shareholders", "type": "definition", "offset": [108, 127]}, {"key": "in-cash", "type": "definition", "offset": [171, 178]}, {"key": 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"offset": [7711, 7727]}, {"key": "description-of", "type": "definition", "offset": [7779, 7793]}, {"key": "allowance-for-doubtful-accounts", "type": "clause", "offset": [7842, 7873]}, {"key": "written-off", "type": "definition", "offset": [8212, 8223]}, {"key": "additional-amount", "type": "clause", "offset": [8248, 8265]}, {"key": "the-consolidation", "type": "clause", "offset": [8296, 8313]}, {"key": "january-1995", "type": "clause", "offset": [8328, 8340]}, {"key": "the-balance", "type": "clause", "offset": [8354, 8365]}, {"key": "date-of", "type": "clause", "offset": [8373, 8380]}], "samples": [{"hash": "9FyQoGc3Uqg", "uri": "/contracts/9FyQoGc3Uqg#subsequent-event", "label": "Financial Statements (Johnston Industries Inc)", "score": 18.0, "published": true}], "size": 2, "hash": "10fa48d51ccf7be9e90085ec4fc24433", "id": 9}, {"snippet": "In July 2000, the Company acquired all of the outstanding common and preferred stock of CallTheShots Inc. (\"CTS\"), in exchange for a combination of Akamai common stock and cash. The purchase price is estimated to be approximately $6 million based on the fair value of the consideration paid plus direct acquisition costs. The acquisition will be accounted for as a purchase. CTS develops services that enable Web site visitors to personalize their interaction with such site. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS\u200c This Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. For this purpose, statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words \"believes,\" \"anticipates,\" \"plans,\" \"expects\" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties and are not guarantees of future performance. Actual results may differ materially from those indicated in such forward-looking statements as a result of certain factors including, but not limited to, those set forth under the heading \"Factors Affecting Future Operating Results.\" OVERVIEW We provide global delivery services for Internet content, streaming media and applications, and global Internet traffic management services. Our services improve the speed, quality, availability, reliability and scalability of Web sites. Our services deliver our customers' Internet content, streaming media and applications through a distributed worldwide server network, which locates the content and applications geographically closer to users. As of June 30, 2000, we had approximately 2,100 signed customers, including 895 customers under recurring contract. Since our inception, we have incurred significant losses, and as of June 30, 2000, we had an accumulated deficit of $337.2 million. We have not achieved profitability on a quarterly or an annual basis, and anticipate that we will continue to incur net losses. We expect to incur significant engineering and development and sales, general and administrative expenses and, as a result, we will need to generate significant revenue to achieve and maintain profitability. In the first quarter of 2000, we entered into agreements to acquire all the outstanding common and preferred stock of Network24 Communications Inc. (\"Network24\") and INTERVU Inc. (\"INTERVU\"). We acquired both of these companies to accelerate market leadership in streaming media. The Network24 acquisition was consummated on February 10, 2000 in exchange for 620,872 shares of our common stock and $12.5 million in cash. We also issued options and warrants exercisable for 195,862 shares of our common stock in exchange for all outstanding options and warrants exercisable for Network24 common stock. The INTERVU acquisition was consummated on April 20, 2000 in exchange for 10.0 million shares of our common stock. We also issued options and warrants exercisable for 2.2 million shares of our common stock in exchange for all outstanding options and warrants exercisable for INTERVU common stock. We have included the results of operations of Network24 subsequent to February 10, 2000 and INTERVU subsequent to April 20, 2000 in our statements of operations for the three and six months ended June 30, 2000. Both acquisitions are accounted for using the purchase method of accounting. In connection with the Network24 and INTERVU acquisitions, we expect amortization expense for the next four years as follows (in millions): YEAR ENDING DECEMBER 31, ------------ 2000...................................................... $674 2001...................................................... 953 2002...................................................... 953 2003...................................................... 274 We derive our revenue from the sale of our services under contracts with terms typically ranging from 12 to 24 months. We recognize revenue primarily based on fees for the amount of Internet content delivered through our services. These contracts also provide for minimum monthly fees. Customers are typically billed monthly in advance for minimums and monthly in arrears for usage above the minimums. We also derive revenue for implementation, installation, usage and other fees that are recognized over the period of the related contracts or customer relationships. To date, substantially all of our revenue has been derived from customers based in the United States. We expect that revenue from customers based outside the United States will increase in future periods. To date, substantially all of our revenue has been derived from direct sales; however, we expect that revenue through indirect distribution channels will increase in future periods. Sales to Apple Computer represented 22% and 18% of our revenue for the year ended December 31, 1999 and the six months ended June 30, 2000, respectively. Sales to Yahoo! represented 13% of our revenue for the year ended December 31, 1999. Sales to Apple Computer represented 17% of our revenue for the three months ended June 30, 2000. Cost of services consists of fees paid to network providers for bandwidth, depreciation of network equipment used in providing our services and monthly fees paid to third-party network data centers for housing our servers. We enter into contracts for bandwidth with third-party network providers with terms typically ranging from six months to three years. These contracts may commit us to minimum monthly fees plus additional fees for bandwidth usage above our contracted level or may commit us to share with the third-party network providers a portion of the revenue we recognize from customers that use these third-party networks. Under our accelerated networks program, we provide use of our servers to smaller Internet service providers which, in turn, provide us with rack space for our servers and access to their bandwidth. We do not recognize as revenue any value to the Internet service providers associated with the use of our servers and do not expense the value of the rack space and bandwidth we receive. We believe that, to date, the value provided under this program has been insignificant. We expect our cost of service to increase as we continue to deploy our network. Engineering and development expenses consist primarily of salaries and related personnel costs and costs related to the design, development, testing, deployment and enhancement of our services and our network. We have to date expensed our engineering and development costs as incurred. We believe that research and development is critical to our strategic product development objectives and intend to continue to enhance our technology to meet the changing requirements of the market demand. As a result, we expect our engineering and development expenses to increase in the future. Sales, general and administrative expenses consist primarily of salaries and related costs of sales and marketing, operations and finance personnel and recruiting expenses, professional fees and legal and accounting services. We expect that sales, general and administrative expenses will increase in the future as we hire additional personnel, expand our operations, initiate additional marketing programs, establish sales offices in new locations and incur additional costs related to the growth of our business and our operations as a public company. Amortization of intangible assets consists primarily of the amortization of intangible assets acquired in business combinations, including goodwill. Acquired in-process research and development consists of a nonrecurring charge for the value of developmental projects that had not reached technological feasibility and had no alternative future use. 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Excluded from this transaction was approximately $15 million of communications assets that are reflected in property, plant, and equipment on our balance sheet. The total consideration for all assets sold to El Paso Energy Partners was approximately $735 million, subject to adjustments for actual working capital acquired. To the Owners of EPGT Texas Pipeline, L.P., El Paso Gas Storage Company and El Paso Hub Services Company: In our opinion, the accompanying combined balance sheet and the related combined statements of income, owners' equity and cash flows present fairly, in all material respects, the financial position of EPGT Texas Pipeline, L.P., El Paso Gas Storage Company and El Paso Hub Services Company (collectively, the \"Companies\") at December 31, 2000, and the results of their operations and their cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Companies' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. As described in Note 4 to the combined financial statements, the Companies have significant transactions and relationships with affiliated entities. Because of these relationships, it is possible that the terms of these transactions are not the same as those that would result from transactions among wholly unrelated parties. Furthermore, as discussed in Note 2, the combined financial statements include various cost allocations and management estimates based on assumptions that management believes are reasonable under the circumstances. However, these allocations and estimates are not necessarily indicative of the costs and expenses that would have resulted had the Companies been operated as a separate entity. /s/ PRICEWATERHOUSECOOPERS LLP Houston, Texas April 18, 2002\n(b) Pro forma financial statements We are providing the accompanying unaudited pro forma condensed consolidated and combined financial statements to (i) reflect the acquisition of midstream assets from El Paso Corporation, (ii) the sale of our Prince TLP and our approximate 9 percent overriding royalty in the Prince Field, and (iii) the assumption of debt and borrowings to fund the acquisition as if we completed these transactions as of January 1, 2001. The unaudited pro forma condensed consolidated and combined financial statements are not necessarily indicative of our consolidated financial position or results of operations that might have occurred had the transactions been completed at the beginning of the earliest period presented, nor do they necessarily indicate our consolidated operating results and financial position for any future period. The accompanying Notes to the Unaudited Pro Forma Condensed Consolidated and Combined Financial Statements explain the assumptions used in preparing the financial information. Accounting policy differences were not material and, accordingly, adjustments have not been included in these statements. The unaudited pro forma financial information gives effect to the following transactions as if they had occurred as of January 1, 2001:\n(1) The repayment in April 2002 of the limited recourse debt of approximately $95 million related to our Prince TLP.\n(2) The acquisition in April 2002 of EPGT Texas and the El Paso Field Services gathering and processing businesses, including 1,300 miles of gathering systems in the Permian Basin and a 42.3 percent non-operating interest in the Indian Basin natural gas processing and treating facility. Total consideration for this transaction was approximately $735 million consisting of a cash payment of approximately $420 million, the exchange of our Prince TLP and our approximate 9 percent overriding royalty interest in the Prince Field with a fair value of approximately $190 million, issuance of approximately $6 million of common units and the assumption of approximately $119 million of indebtedness.\n(3) The acquisition in October 2001 of the remaining 50% equity interest that we did not already own in Deepwater Holdings. The High Island Offshore System and the East Breaks natural gas gathering system became indirect wholly-owned assets through this transaction. The total purchase price was approximately $81 million, consisting of $26 million cash and $55 million of assumed indebtedness. Our historical consolidated financial statements include the accounts and results of operations of these assets from the purchase date.\n(4) The acquisition in October 2001 of interests in the titleholder of, and other interests in, the Chaco cryogenic natural gas processing plant for approximately $198.5 million. The total purchase price was composed of: - A payment of $77.0 million to acquire the Chaco plant from the bank group that provided the financing for the facility; and - A payment of $121.5 million to El Paso Field Services, L.P., an El Paso Corporation affiliate, in connection with the execution of a 20-year agreement relating to the processing capacity of the Chaco plant and dedication of natural gas gathered by El Paso Field Services. Our historical consolidated financial statements include the accounts and results of operations of these assets from the purchase date.\n(5) The $133 million acquisition in February 2001 of the South Texas natural gas liquids transportation and fractionation assets from a subsidiary of El Paso Corporation. Our historical consolidated financial statements include the accounts and results of operations of these assets from the purchase date.\n(6) The exclusion of the (i) results of operations and losses on the disposition of Deepwater Holdings' interests in the Stingray and UTOS systems, and the West Cameron Dehydration facility; (ii) results of operations and losses on disposition of our interests in Nautilus, Manta Ray Offshore, Nemo, Green Canyon and Tarpon as well as interests in two offshore platforms; and (iii) income of $25.4 million we recognized from the related payments from El Paso Corporation. EL PASO ENERGY PARTNERS, L.P. UNAUDITED PRO FORMA CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEET AS OF DECEMBER 31, 2001 (IN THOUSANDS) EL PASO ENERGY PARTNERS, L.P. HISTORICAL EPN HOLDING ASSET ACQUISITION(A) ADJUSTMENT PROFORMA -------------- -------------- ---------- ---------- ASSETS Current assets Cash and cash equivalents............... $ 13,084 $ 95,000 (B) $ 13,084 (95,000)(B) 416,000 (C) 4,000 (C) (420,000)(D) 119,000 (E) (119,000)(E) Accounts receivable, net Trade................................ 33,162 $ 39,593 (39,593)(D) 33,162 Affiliates........................... 22,863 11,424 (11,424)(D) 22,863 Other current assets.................... 557 25,039 (14,730)(D) 10,866 ---------- -------- --------- ---------- Total current assets............ 69,666 76,056 (65,747) 79,975 Property, plant and equipment, net..................................... 1,103,427 776,153 (188,183)(D) 1,679,877 (30,000)(D) 18,480 (D) Investment in processing agreement........ 119,981 119,981 Investment in unconsolidated affiliates... 34,442 34,442 Other noncurrent assets................... 29,754 1,108 (1,108)(D) 29,754 ---------- -------- --------- ---------- Total assets.................... $1,357,270 $853,317 $(266,558) $1,944,029 ========== ======== ========= ========== 34 EL PASO ENERGY PARTNERS, L.P. UNAUDITED PRO FORMA CO NDENSED CONSO LID ATED AND COMBINED BALANCE SHEET -- (CONTINUED) EL PASO ENERGY EPN HOLDING PARTNERS, L.P. ASSET HISTORICAL ACQUISITION(A) ADJUSTMENT PROFORMA -------------- ---------- ---------- LIABILITIES AND PARTNERS' CAPITAL Current liabilities Accounts payable Trade................................ $ 14,987 $ 10,543 $ (10,543)(D) $ 14,987 Affiliates........................... 9,918 4,016 (4,016)(D) 9,918 Accrued interest........................ 6,401 6,401 Note payable to affiliate............... 119,000 (D) (119,000)(E) Current maturities of limited recourse term loan............................ 19,000 (19,000)(B) -- Other current liabilities............... 4,159 18,057 (2,107)(D) 20,109 ---------- -------- --------- ---------- Total current liabilities....... 54,465 32,616 (35,666) 51,415 Revolving credit facility................. 300,000 95,000 (B) 399,000 4,000 (C) EPN Holding limited recourse facility..... 416,000 (C) 535,000 119,000 (E) Long-term debt............................ 425,000 425,000 Limited recourse term loan, less current maturities.............................. 76,000 (76,000)(B) -- Other noncurrent liabilities.............. 1,079 76,091 (52,298)(D) 24,872 ---------- -------- --------- ---------- Total liabilities............... 856,544 108,707 470,036 1,435,287 Commitments and contingencies Minority interest......................... 199 199 Partners' capital......................... 500,726 6,000 (D) 508,543 1,817 (D) Owners' net investment.................... 744,411 (744,411)(D) ---------- -------- --------- ---------- Total liabilities and partners' capital....................... $1,357,270 $853,317 $(266,558) $1,944,029 ========== ======== ========= ========== EL PASO ENERGY 35 PARTNERS, L.P. UNAUDITED PRO FORMA CONDENSED CONSOLIDATED AND COMBINED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2001 (IN THOUSANDS) PROFORMA PRO FORMA DEEPWATER DEEPWATER TRANSPORTATION EL PASO DEEPWATER HOLDINGS, HOLDINGS, PROFORMA AND ENERGY HOLDINGS, L.L.C. L.L.C. CHACO FRACTIONATION PARTNERS, L.P. L.L.C. DIVESTITURES ACQUISITION PLANT ASSET HISTORICAL HISTORICAL(F) ADJUSTMENTS ADJUSTMENTS ADJUSTMENTS ADJUSTMENTS ------------- ------------ ----------- ----------- -------------- Operating revenues................ $202,231 $ 40,933 $(2,726)(G) $ -- $20,299 (L) $5,042 (N) Operating expenses Cost of natural gas............. 51,542 Operation and maintenance, net........................... 35,548 16,740 (658)(G) 5,215 (L) 1,368 (N) Depreciation, depletion and amortization.................. 38,649 8,899 (323)(G) 422 (H) 6,512 (L) 750 (N) Asset impairment charge......... 3,921 -------- -------- ------- ------- ------- ------ 129,660 25,639 (981) 422 11,727 2,118 -------- -------- ------- ------- ------- ------ Operating income (loss)........... 72,571 15,294 (1,745) (422) 8,572 2,924 -------- -------- ------- ------- ------- ------ Other income (loss) Earnings from unconsolidated affiliates.................... 8,449 9,925 (I) Net (loss) gain on sale of assets........................ (11,367) (21,453) 21,453 (G) Other income (loss)............. 28,726 68 -------- -------- ------- ------- ------- ------ 25,808 (21,385) 21,453 9,925 -- -- -------- -------- ------- ------- ------- ------ Income (loss) before interest, income taxes and other charges......................... 98,379 (6,091) 19,708 9,503 8,572 2,924 Interest and debt expense....... 43,130 5,936 (5,936)(J) 7,072 (M) 1,702 (O) 4,988 (K) Minority interest............... 100 Income tax benefit.............. -------- -------- ------- ------- ------- ------ 43,230 5,936 -- (948) 7,072 1,702 -------- ------- ------- ------- ------ Net income allocated to general partner....................... 24,661 Net income allocated to Series B unitholders................... 17,228 -------- Net income (loss) allocated to Basic and diluted net income Weighted average basic and diluted OTHER GULF OF MEXICO EPN HOLDING DIVESTITURE PRINCE ASSET ADJUSTMENTS EXCHANGE(Q) ACQUISITION(A) ADJUSTMENT PROFORMA ----------- -------------- ---------- -------- Operating revenues................ $ -- $(8,825) $350,412 $ -- $607,366 Operating expenses Cost of natural gas............. -- 194,305 245,847 Operation and maintenance, net........................... (2,269) 66,615 122,559 Depreciation, depletion and amortization.................. (2,988) 32,305 (2,236)(R) 82,452 462 (S) Asset impairment charge......... 3,921 ------- -------- -------- -------- ------- -------- -------- -------- Operating income (loss)........... -- (3,568) 57,187 1,774 152,587 Other income (loss) Earnings from unconsolidated -------- ------- -------- -------- -------- affiliates.................... 18,374 Net (loss) gain on sale of assets........................ 11,367 (P) Other income (loss)............. (25,504)(P) (5,026) (1,736) ------- -------- -------- -------- (14,137) -- (5,026) -- 16,638 Income (loss) before interest, income taxes and other -------- ------- -------- -------- -------- charges......................... (14,137) (3,568) 52,161 1,774 169,225 Interest and debt expense....... (1,588) -- 23,701 (T) 82,470] 3,465 (U) Minority interest............... 100 Income tax benefit.............. (24) (24) ------- -------- -------- -------- Net income (loss)............... $(14,137) $(1,980) $ 52,185 $(25,392) 86,679 ======== ======= ======== ======== Net income allocated to general partner....................... 24,976 Net income allocated to Series B Net income (loss) allocated to Basic and diluted net income Weighted average basic and diluted NOTES TO THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS EPN HOLDING ASSET ACQUISITION AND PRINCE EXCHANGE BALANCE SHEET ADJUSTMENTS A This column represents the audited historical combined balance sheet and statement of operations for the EPN Holding asset acquisition, which includes EPGT Texas, L.P., El Paso Gas Storage Company, El Paso Hub Services Company, and the El Paso Field Services gathering and processing businesses. B To record borrowings of $95 million under our revolving credit facility for use in repaying our limited recourse term loan associated with our Prince TLP. C To record borrowings of $416 million under the EPN Holding limited recourse credit facility and $4 million under our revolving credit facility related to the EPN Holding asset acquisition. D To record the EPN Holding asset acquisition. Our purchase price was $735 million consisting of: 1) a cash payment of $420 million, 2) an exchange of our Prince TLP and 9 percent overriding royalty interest with a fair value of $190 million, 3) issuance of $6 million in common units 4) the assumption of $119 million of short-term indebtedness payable to El Paso Corporation. We acquired all of the historical property, plant and equipment with the exception of approximately $30 million of communications equipment, the natural gas imbalance receivables and payables and the environmental liabilities on the combined balance sheet. We recorded an excess purchase price of $18 million related to the acquisition of these assets. In addition, we recognized a gain of $1.8 million on the Prince exchange. E To record borrowings of $119 million under EPN Holding's limited recourse credit facility related to the repayment of our assumed short-term debt with El Paso Corporation described in footnote D above. DEEPWATER HOLDINGS TRANSACTION F This column represents the historical Deepwater Holdings, L.L.C. consolidated statement of operations. G To eliminate the results of operations of Stingray, UTOS and the West Cameron Dehydration facility, our associated equity earnings from these assets, and the effect of the non-recurring loss related to the sales of these assets. These assets were sold pursuant to a Federal Trade Commission order related to El Paso Corporation. H To record depreciation expense associated with the allocation of the excess purchase price assigned to Deepwater Holdings' property, plant and equipment relating to our acquisition of the additional interest in Deepwater Holdings. 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["significant-accounting-policies", "SIGNIFICANT ACCOUNTING POLICIES"]], "title": "SUBSEQUENT EVENT", "size": 80, "id": "subsequent-event", "related": [["subsequent-events", "Subsequent Events", "<strong>Subsequent Events</strong>"], ["adjustment-event", "Adjustment Event", "Adjustment Event"], ["announcement-event", "Announcement Event", "Announcement Event"], ["adjustment-events", "Adjustment Events", "Adjustment Events"], ["notice-of-adjustment-event", "Notice of Adjustment Event", "Notice of Adjustment Event"]], "related_snippets": [], "updated": "2025-07-10T05:58:13+00:00", "also_ask": ["What key triggers should be defined to ensure clarity on what constitutes a 'subsequent event'?", "How can parties allocate risk for unforeseen subsequent events to protect their interests?", "What are the most common pitfalls or ambiguities in drafting subsequent event clauses?", "How do courts typically interpret and enforce subsequent event provisions in contract disputes?", "How does the treatment of subsequent events differ across relevant jurisdictions or under different governing laws?"], "drafting_tip": "Define what constitutes a subsequent event to avoid ambiguity; specify notification requirements to ensure timely disclosure; outline consequences to clarify parties\u2019 obligations.", "explanation": "A Subsequent Event clause defines how events occurring after the execution of a contract but before its completion or closing are to be handled. This clause typically requires parties to disclose any significant changes or developments that could affect the contract, such as financial shifts, legal actions, or material losses. Its core function is to ensure transparency and allow parties to address or renegotiate terms if unforeseen events arise, thereby protecting both sides from unexpected risks that could impact the agreement."}, "json": true, "cursor": ""}}