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| Rim Semiconductor Company develops and markets transmission technology products that enable data to be transmitted across copper telephone wire. Its technology products allow telephone companies, office building managers, and enterprise network operators to provide video, data, and voice services over the existing copper telecommunications infrastructure. The company offers a chipset in a planned family of transport processors, the Cupria Cu5001 digital signal processor in field programmable gate array form. Rim Semiconductor, formerly known as New Visual Corporation, was founded in 1985. The company is headquartered in Portland, Oregon. | | History: INCORPORATED in Utah Dec. 5, 1985 as Bellwether Investment Corp. Name changed to General Wellness Corp. Feb. 12, 1990; back to Bellwether Investment Corp. Feb. 4, 1993; to Siliwood Entertainment Corp. Nov. 13, 1995; to New Visual Entertainment, Inc. Oct. 1, 1996, following the acquisition of certain assets and the assumption of various liabilities from Infinity Vision Entertainment; to New Visual Corp. in June 2001; and to Rim Semiconductor Co. in September 2005. | | | | Subsidiaries: |
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NV Entertainment, Inc.
Top Secret Productions,
LLC
| | | | | | Capital Expenditures, thousand. US Dollars |
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| Year | Amount | | 2007 | 143 |
| | | | | | Research and Development Expenditures, thousand. US Dollars |
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| Year | Amount | | 2007 | 1,231 |
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| Annual Report |
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| | | Income Statement | |
| 2007 | 2006 |
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| FILM DISTRIBUTION ROYALTIES | 14,757 | 61,699 | | Impairment of technology licenses and capitalized software development costs | 6,334,829 | --- | | Amortization of technology licenses and capitalized software development costs | 892,046 | 777,026 | | Research and development expenses | 1,231,065 | 325,124 | | Selling, general and administrative expenses | 5,947,629 | 5,428,730 | | OPERATING LOSS | (14,390,812) | (6,469,181) | | Interest income | (30,854) | (19,612) | | Interest expense | 3,853,079 | 10,823,102 | | Change in fair value of derivative liabilities | (4,700,098) | (1,958,907) | | Amortization of deferred financing costs | 1,328,099 | 1,586,386 | | Gain on forgiveness of principal and interest on Zaiq Note | --- | (1,169,820) | | Loss on exchange of notes payable into common stock | --- | 446,386 | | Other expenses (income) | 1,126 | (211,095) | | NET LOSS | (14,842,164) | (15,965,621) | | BASIC AND DILUTED NET LOSS PER COMMON SHARE | ($0.03) | ($0.05) | | WEIGHTED AVERAGE SHARES | 431,248,398 | 301,858,638 |
| | | | Balance Sheet | |
| 2007 | 2006 |
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| ASSETS |
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| | Current Assets: |
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| | Cash and cash equivalents | 35,368 | 1,090,119 | | Short-term investments | --- | 1,000,000 | | Other current assets | 93,360 | 310,266 | | TOTAL CURRENT ASSETS | 128,728 | 2,400,385 | | Property and equipment - net | 180,632 | 64,546 | | Technology licenses and capitalized software development costs - net | --- | 6,250,496 | | Note receivable | 50,000 | --- | | Deferred financing costs - net | 85,724 | 1,274,823 | | Other assets | 18,482 | 22,144 | | TOTAL ASSETS | 463,566 | 10,012,394 | | LIABILITIES AND STOCKHOLDERS' DEFICIENCY |
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| | Current Liabilities: |
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| | Convertible notes payable | 478,000 | 478,000 | | Convertible debentures | 613,613 | 73,452 | | Notes payable | 1,206,667 | --- | | Derivative liabilities - warrants, options and embedded conversion option | 2,289,607 | 8,238,583 | | Accounts payable and accrued expenses | 1,734,386 | 1,223,210 | | TOTAL CURRENT LIABILITIES | 6,322,273 | 10,013,245 | | Long-term portion of convertible debentures | --- | 1,479,195 | | Stockholders' Deficiency: |
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| | Common Stock, $0.001 par | 468,986 | 356,400 | | Treasury Stock, at cost | (7,498) | (7,498) | | Additional paid-in capital | 85,276,802 | 75,215,263 | | Unearned compensation | (907,656) | (1,197,034) | | Accumulated deficit | (90,689,341) | (75,847,177) | | TOTAL STOCKHOLDERS' DEFICIENCY | (5,858,707) | (1,480,046) | | TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY | 463,566 | 10,012,394 | | Common Shares | 468,986,043 | 356,399,782 | | Treasury Shares | 499,854 | 499,854 |
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| Quarterly Report Information
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| | | Quarterly Revenue, US$ |
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| Year | Quarter | Revenue | | 2007 |
1 | Nil | | 2007 |
2 | Nil | | 2007 |
3 | 10,000 | | 2007 |
Full Year
| 10,000 | | 2006 |
1 | 40,000 | | 2006 |
2 | 20,000 | | 2006 |
3 | Nil | | 2006 |
Full Year
| 60,000 | | 2005 |
1 | 10,000 | | 2005 |
Full Year
| 40,000 | | 2004 |
1 | 140,000 | | 2004 |
2 | 30,000 | | 2004 |
3 | 60,000 | | 2004 |
Full Year
| 290,000 | | 2003 |
1 | Nil | | 2003 |
2 | Nil | | 2003 |
3 | Nil | | 2003 |
Full Year
| 380,000 |
| | | | | | Quarterly Net Income, US$ |
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| Year | Quarter | Revenue | | 2008 |
1 | (4,300,000) | | 2008 |
2 | (1,170,000) | | 2007 |
1 | (7,790,000) | | 2007 |
2 | (7,910,000) | | 2007 |
3 | (12,100,000) | | 2007 |
Full Year
| (14,840,000) | | 2006 |
1 | (1,270,000) | | 2006 |
2 | (3,540,000) | | 2006 |
3 | (15,150,000) | | 2006 |
Full Year
| (15,965,600) | | 2005 |
1 | (910,000) | | 2005 |
Full Year
| (6,923,400) | | 2004 |
1 | (1,430,000) | | 2004 |
2 | (980,000) | | 2004 |
3 | (960,000) | | 2004 |
Full Year
| (5,506,300) | | 2003 |
1 | 180,000 | | 2003 |
2 | (1,430,000) | | 2003 |
3 | (1,020,000) | | 2003 |
Full Year
| (3,316,500) |
| | | | | | Quarterly EPS, US$ |
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| Year | Quarter | Revenue | | 2008 |
1 | (.01) | | 2008 |
2 | Nil | | 2007 |
1 | (.02) | | 2007 |
2 | (.02) | | 2007 |
3 | (.03) | | 2007 |
Full Year
| (.03) | | 2006 |
1 | (.01) | | 2006 |
2 | (.01) | | 2006 |
3 | (.05) | | 2006 |
Full Year
| (.05) | | 2005 |
1 | (.01) | | 2005 |
Full Year
| (.06) | | 2004 |
1 | (.02) | | 2004 |
2 | (.01) | | 2004 |
3 | (.01) | | 2004 |
Full Year
| (.07) | | 2003 |
1 | Nil | | 2003 |
2 | (.02) | | 2003 |
3 | (.02) | | 2003 |
Full Year
| (.05) |
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