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| | Business Summary: Broadcast International, Inc., through its subsidiaries, engages in the installation, management, and support of private communication networks. | | | Address
7050 Union Park Avenue
Suite 600
Salt Lake City
, UT 84047
Phone: 801-562-2252
Fax: 801-562-1773
Website: http://www.brin.com
| | Auditor |
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HJ & Associates
Salt Lake City | | Transfer Agent |
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Interwest Transfer Co. Inc.
| Employees: 43
ShareHolders: 1300 | Founded: 1983
Domicile: Utah | | | |
| | Broadcast International, Inc., through its subsidiaries, engages in the installation, management, and support of private communication networks. Its networks are used by enterprise clients to deliver training programs, product announcements, entertainment, and other communication to employees and customers. The company also develops CodecSys, a proprietary video compression technology that converts video content into a digital data stream for transmission over satellite, cable, Internet, or wireless networks. In addition, it provides internal and external business applications, satellite-based services, streamed video hosting services, and production and content development services. Broadcast International serves retailers, other businesses, and third-party providers of in-store music and video. The company was founded in 1999 and is based in Salt Lake City, Utah. | | History: INCORPORATED in Utah Jan. 12, 1983, as Laser Corp. Name changed to Broadcast International, Inc. Jan. 13, 2004, in connection with the acquisition of BI Acquisitions, Inc. for 17,210,268 (post split) Common shares. BI Acquisitions was organized in December 1999 and began operations in January 2000. | | | | Subsidiaries: |
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BI Acquisitions, Inc.
Interact Devices, Inc.
| | | | | | Capital Expenditures, thousand. US Dollars |
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| Year | Amount | | 2007 | 455 |
| | | | | | Research and Development Expenditures, thousand. US Dollars |
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| Year | Amount | | 2007 | 1,275 |
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Management
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| Officers | Position |
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| William H. Davidson | Chairman | | Rodney M. Tiede | President & Chief Executive Officer | | Reed L. Benson | Secretary, Chief Financial Officer, General Counsel & Chief Accounting Officer | | Robert W. Ingraham | Chief Technology Officer | | Ron Bell | SR VP | | Randy4 L. Turner | Treasurer |
| | Directors |
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| Richard Benowitz | | Bill Boyd | | Kirby D. Cochran | | William H. Davidson | | James E. Solomon | | Rodney M. Tiede | | | |
| | | | Capitalization as of 03/31/2007: | | | | | Authorized Shares | Outstanding Shares |
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| Common $0.05 par | 180,000,000 | 26,845,274 | | Preferred no par | 10,000,000 | None |
| | | | LONG TERM DEBT: $1,236,226. | | | | Common $0.05 par | | | |
Stockholders:
03/15/2007,
1300.
| | PRINCIPAL STOCKHOLDERS: March 15, 2007, Rodney M. Tiede owned or controlled 12.4% of the Common, Renae Hambly 5.9%, Kenneth Moore 5.6%, Randy Turner 5.6% and Yang Lan Studio Ltd. 5.5%. | | | |
Transfer Agent: Interwest Transfer Co. Inc.
Salt Lake City
, UT | | | | OTC Bulletin Board( Primary): BCST | | | | Exchange | Year | High | Low |
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| OTC Bulletin Board | 2007 | 4.9000 | 0.8100 | | OTC Bulletin Board | 2006 | 3.4000 | 1.1500 | | OTC Bulletin Board | 2005 | 4.4000 | 2.0000 | | OTC Bulletin Board | 2004 | 10.2500 | 2.2000 | | OTC Bulletin Board | 2003 | 1.1000 | 0.0300 | | OTC Bulletin Board | 2002 | 1.2000 | 0.6600 | | OTC Bulletin Board | 2001 | 8.5630 | 0.7500 | | OTC Bulletin Board | 2000 | 11.5000 | 4.8750 | | OTC Bulletin Board | 1999 | 5.3750 | 1.2500 | | OTC Bulletin Board | 1998 | 4.3750 | 1.0000 |
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| | | | RECENT DIVIDENDS: Common $0.05 par: No cash.
Common split 5-for-4, Jan. 30, 1998.
Common reverse split 1-for-10, Jan. 23, 2004. | | | | | |
| | Annual Report |
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| | | Income Statement | |
| 2007 | 2006 | 2005 |
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| Net sales | $4,297,784 | $13,894,383 | $5,380,869 | | Cost of sales | 4,273,490 | 13,153,261 | 5,434,433 | | Gross margin (loss) | 24,294 | 741,122 | (53,564) | | Operating expenses |
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| | Administrative and general | 8,755,709 | 4,583,512 | 2,958,232 | | Selling and marketing | 556,568 | 693,223 | 720,841 | | Production and maintenance | -- | -- | -- | | Research and development in process | 1,274,792 | 2,323,843 | 812,581 | | Impairment of license rights | 1,142,400 | 1,732,600 | -- | | Total operating expenses | 11,729,469 | 9,333,178 | 4,491,654 | | Total operating loss | (11,705,175) | (8,592,056) | (4,545,218) | | Other income (expense) |
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| | Interest income | 50,417 | 34,398 | 29,745 | | Interest expense | (2,120,215) | (1,894,620) | (1,149,209) | | Derivative valuation loss | (12,526,260) | (1,266,300) | (12,000) | | Loss on securities available for sale | -- | (4,152,591) | -- | | Gain on forgiveness of debt | 22,005 | 284,000 | 68,547 | | Other income (expense) | (8,116) | (10,740) | 26,456 | | Total other income (expense) | (14,582,169) | (7,005,853) | (1,036,461) | | Loss before income taxes | (26,287,344) | (15,597,909) | (5,581,679) | | Provision for income taxes |
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| | Current tax expense | -- | -- | -- | | Total provision for income taxes | -- | -- | -- | | Net loss | $(26,287,344) | $(15,597,909) | $(5,581,679) | | Loss per share - basic and diluted | $(0.85) | $(0.56) | $(0.27) | | Weighted average shares basic and diluted | 30,942,000 | 27,962,000 | 20,844,000 | | Operating Income As Calculated |
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| | Depr. and Amort. |
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| | Fixed Charges Coverage: |
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| | Available for Fixed Charges |
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| | Gross Fixed Charges |
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| | Fixed Charges Times Earnings |
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| | Fixed Charges Coverages and Preferred Dividends Times Earnings |
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| | Capital Expenditures |
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| | Research & Development Expenditures |
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| | | | Balance Sheet | |
| 2007 | 2006 |
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| ASSETS |
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| | Current assets |
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| | Cash and cash equivalents | $16,598,300 | $807,741 | | Accounts receivable, net | 220,834 | 851,473 | | Inventory | 57,218 | 46,341 | | Prepaid expenses | 2,449,236 | 1,400,361 | | Total current assets | 19,325,588 | 3,105,916 | | Property and equipment |
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| | Furniture and fixtures | 88,370 | 77,846 | | Leasehold improvements | 247,010 | 237,108 | | Machinery and equipment | 2,210,241 | 1,838,067 | | Accumulated depreciation and amortization | (1,904,307) | (1,765,963) | | Property and equipment, net | 641,314 | 387,058 | | Other assets |
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| | Patents, at cost | 197,346 | 200,306 | | Debt offering costs | 1,367,583 | 346,269 | | Technology licenses (net of $1,632,600 and $0 allowance, respectively) |
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| | * | -- | 1,142,400 | | Deposits and other assets | 8,795 | 8,795 | | Total other assets | 1,573,724 | 1,697,770 | | Total assets | $21,540,626 | $5,190,744 | | LIABILITIES: |
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| | Current liabilities |
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| | Accounts payable | $640,292 | $705,099 | | Payroll and related expenses | 460,236 | 202,335 | | Other accrued expenses | 55,356 | 130,798 | | Unearned revenue | 169,359 | 491,252 | | Current portion of long-term obligations (net of discount of $0 and $6,813, |
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| | respectively) |
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| | * | 47,692 | 666,637 | | Derivative valuation | 14,267,600 | 4,631,500 | | Total current liabilities | 15,640,535 | 6,827,621 | | Convertible debt (net of discount of $2,086,692 and $13,068,755, respectively) |
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| | * | 2,931,245 | 1,413,308 | | Other long-term obligations | -- | 35,093 | | Deferred bonus payable | -- | 600,000 | | Total liabilities | 18,571,780 | 8,876,022 | | Commitments and contingencies |
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| | STOCKHOLDERS EQUITY (DEFICIT): |
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| | Preferred stock, no par value, 20,000,000 shares authorized; none issued | -- | -- | | Common stock, $.05 par value, 180,000,000 shares authorized; 26,953,262 and 37,775,034 |
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| | shares issued and outstanding, respectively | 1,888,752 | 1,347,663 | | Additional paid-in capital | 65,289,354 | 35,715,634 | | Unexercised options and warrants | 3,789,095 | 937,436 | | Subscriptions receivable | (25,000) | -- | | Accumulated deficit | (67,973,355) | (41,686,011) | | Total stockholders equity (deficit) | 2,968,846 | (3,685,278) | | Total liabilities and stockholders equity (deficit) | $21,540,626 | $5,190,744 | | Net Working Capital |
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| | Equity per Share |
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| | Depr. and Amort. Reserve |
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| | Preferred Shares Issued |
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| | Common Shares Issued |
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| | Treasury Shares - Preferred |
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| | Treasury Shares - Common |
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| | Interim Report
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| | | Data Not Available | | | | | | | | | |
| | Pro Forma Report
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| | | Data Not Available | | | | | | | | | |
| | Quarterly Report Information
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| | | Quarterly Revenue, US$ |
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| Year | Quarter | Revenue | | 2008 |
1 | 1,190,000 | | 2007 |
1 | 1,600,000 | | 2007 |
2 | 4,280,000 | | 2007 |
4 | 1,100,000 | | 2007 |
Full Year
| 4,300,000 | | 2006 |
1 | 2,780,000 | | 2006 |
2 | 4,280,000 | | 2006 |
3 | 3,910,000 | | 2006 |
4 | 2,920,000 | | 2006 |
Full Year
| 13,890,000 | | 2005 |
1 | 980,000 | | 2005 |
2 | 1,030,000 | | 2005 |
3 | 1,070,000 | | 2005 |
Full Year
| 5,380,000 | | 2004 |
1 | 1,380,000 | | 2004 |
2 | 1,570,000 | | 2004 |
3 | 1,290,000 | | 2004 |
Full Year
| 5,390,000 | | 2003 |
1 | 210,000 | | 2003 |
2 | 40,000 | | 2003 |
Full Year
| 4,930,000 |
| | | | | | Quarterly Net Income, US$ |
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| Year | Quarter | Revenue | | 2008 |
1 | 2,160,000 | | 2007 |
1 | (4,310,000) | | 2007 |
2 | (480,000) | | 2007 |
4 | (13,770,000) | | 2006 |
1 | (4,350,000) | | 2006 |
2 | (480,000) | | 2006 |
3 | (2,120,000) | | 2006 |
4 | (8,640,000) | | 2006 |
Full Year
| (15,597,900) | | 2005 |
1 | (790,000) | | 2005 |
2 | (1,500,000) | | 2005 |
3 | 310,000 | | 2005 |
Full Year
| (5,581,700) | | 2004 |
1 | (2,390,000) | | 2004 |
2 | (11,290,000) | | 2004 |
3 | (1,850,000) | | 2004 |
Full Year
| (16,488,700) | | 2003 |
1 | (220,000) | | 2003 |
2 | (70,000) | | 2003 |
Full Year
| (3,935,200) |
| | | | | | Quarterly EPS, US$ |
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| Year | Quarter | Revenue | | 2008 |
1 | .05 | | 2007 |
1 | .15 | | 2007 |
2 | (.02) | | 2007 |
4 | (.39) | | 2007 |
Full Year
| (.85) | | 2006 |
1 | (.19) | | 2006 |
2 | (.02) | | 2006 |
3 | (.07) | | 2006 |
4 | (.28) | | 2006 |
Full Year
| (.56) | | 2005 |
1 | (.04) | | 2005 |
2 | (.07) | | 2005 |
3 | .01 | | 2005 |
Full Year
| (.26) | | 2004 |
1 | (1.30) | | 2004 |
2 | (.59) | | 2004 |
3 | (.09) | | 2004 |
Full Year
| (.85) | | 2003 |
1 | (1.30) | | 2003 |
2 | (.40) | | 2003 |
Full Year
| (2.30) |
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