SHORT TERM NOTE PAYABLE TO AFFILIATE
In December 1994, a short term note was obtained from a third party by
MD Seis Ltd. of which up to approximately $14.5 million will be loaned
to the Group.
As of December 31, 1994, MD Seis Ltd. has loaned the Group $9,273,443.
The 11% note to MD Seis Ltd. is due in June 1995.
Accrued interest payable on the note at December 31, 1994 was $113,014
and is included in the amount due to affiliates discussed in Note 4.
The Group loaned substantially all of its proceeds from the note payable
to Caspian to finance upgrades to Caspian's seismic vessels (see Note
4). Payment terms and the interest rate through December 31, 1994 for
this loan are subject to negotiation. However, the interest rate is
guaranteed at a minimum rate of 11%, which has been reflected in the
combined statement of operations. This loan is due in June of 1995.
4. RELATED PARTY TRANSACTIONS
During 1994 the Group distributed property and equipment with a net book
value of $180,000 as a dividend to Digicon. A gain on the distribution
of $20,000 was recorded in the combined statement of operations since
the property was valued at $200,000.
The Group loaned Caspian approximately $11 minion to upgrade a seismic
vessel.
MD Seis JV contributed licensing rights having an estimated fair value
of $1,005,000, which provide for a 40% interest in future sales of
certain 3D seismic data. The data is the property of an affiliated
party and relates to oil producing areas in the West Siberian basin of
Russia.
The amounts due to/from affiliates, other than the note payable
previously described, were as follows:
An affiliated party, Central Geophysical Exploration ("CGE") has a
contract with the Group to market licensed data. CGE also has a
ownership interest in MD Seis JV. Once a sale is made by the Group, they
remit the net proceeds to CGE and the owners of the data. Under this
contract, data licensing revenue of approximately $170,000 is reflected
in the combined statement of operations. The payable to CGE and others
represents the net proceeds due to CGE and the data owners. The amount
due to directors represents an accrual for salaries and reimbursable
expenses. The amounts due to MD Seis Ltd. include interest and amounts
related to the purchase of geophysical equipment. The amounts due from
MD Seis L.C., USA (MD Seis USA) (an entity owned by the same
stockholders of MD Seis JV and MD Seis Ltd.) and MD Seis JV represent
receivables for reimbursable expenses.
MD Seis USA $160,000
MD Seis JV 668,413
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Due from affiliates $828,413
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MD Seis Ltd. $293,054
CGE and others 434,543
Directors 69,141
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Due to affiliates $796,738
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http://ir.10kwizard.com/filing.php?repo=tenk&ipage=246313&doc=1&num=9&total=11&source=1003
Отправлено: 07.12.06 15:00. Заголовок: SHORT TERM NOTE PAYABLE TO AFFILIATE
