Convera Corp. (CNVR, Financial) filed Quarterly Report for the period ended 2010-07-31.
Convera Corp. has a market cap of $3.48 million; its shares were traded at around $0 with and P/S ratio of 4.35. Convera Corp. had an annual average earning growth of 1.6% over the past 5 years.
Under the liquidation basis of accounting, we are required to estimate and accrue for costs associated with implementing and completing the Plan of Dissolution. The accrual for estimated costs is divided into three categories: payroll, benefits, severance and retention costs; professional fees; and other general and administrative costs. During the liquidation period all expenditures for operating expenses are charged directly against this accrual. During the three and six-month periods ended July 31, 2010, we made payments against accrued liquidation costs of $0.2 million and $1.6 million, respectively. The balance of accrued liquidation costs was approximately $0.6 million as of July 31, 2010.
The Company currently expects the liquidation period to extend into the fourth quarter of the current fiscal year and as a result will be required to file a Form 10-K at year end. Accordingly, during the quarter ended July 31, 2010, estimated payroll and professional fees related to the expenses of filing the Form 10-K were increased by $25,000 and $175,000, respectively. General and administrative costs also increased by $23,000 during the quarter to account for the additional costs necessary to complete the 10-K and the liquidation.
Estimated interest income of $71,000 to be earned on the loan agreement executed with VSW was recorded during the quarter ended July 31, 2010. On May 26, 2010, VSW borrowed $1.0 million under the $1.0 million line of credit available to VSW under the terms of the Credit Agreement between Convera and VSW dated February 9, 2010. The loan bears interest at a rate of 10% per annum with the interest and principal due on the first anniversary of the Merger (February 9, 2011).
The reversal of the AT&T contingency reserve of $409,000 was offset by increases to payroll, benefits, severance and retention costs of $33,000 and increased professional fees of $231,000. The increase in these costs are primarily related to the estimated increase in costs to complete the liquidation, including the filing of the year end 10-K. General and administrative costs increased by a net of $17,000 as costs were adjusted to account for the extended liquidation period. As noted above, interest income of $71,000 related to the loan to VSW was recorded in May 2010.
For the three months ended July 31, 2009, total revenues were $0.2 million. The net loss for the three months ended July 31, 2009 was $3.1 million, or $(0.06) per common share.
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Convera Corp. has a market cap of $3.48 million; its shares were traded at around $0 with and P/S ratio of 4.35. Convera Corp. had an annual average earning growth of 1.6% over the past 5 years.
Highlight of Business Operations:
Based on our projections of estimated operating expenses and liquidation costs as of January 31, 2010, the Company reported in the accompanying financial statements that its net assets in liquidation aggregated $10.6 million, or $0.20 per share based upon 53,501,183 shares of common stock outstanding at January 31, 2010. An initial distribution of $0.10 per share was made on February 16, 2010 to stockholders of record on February 8, 2010. As of July 31, 2010, the Company s net assets in liquidation aggregated $5.5 million or approximately $0.10 per share based on 53,501,183 common shares outstanding at July 31, 2010.Under the liquidation basis of accounting, we are required to estimate and accrue for costs associated with implementing and completing the Plan of Dissolution. The accrual for estimated costs is divided into three categories: payroll, benefits, severance and retention costs; professional fees; and other general and administrative costs. During the liquidation period all expenditures for operating expenses are charged directly against this accrual. During the three and six-month periods ended July 31, 2010, we made payments against accrued liquidation costs of $0.2 million and $1.6 million, respectively. The balance of accrued liquidation costs was approximately $0.6 million as of July 31, 2010.
The Company currently expects the liquidation period to extend into the fourth quarter of the current fiscal year and as a result will be required to file a Form 10-K at year end. Accordingly, during the quarter ended July 31, 2010, estimated payroll and professional fees related to the expenses of filing the Form 10-K were increased by $25,000 and $175,000, respectively. General and administrative costs also increased by $23,000 during the quarter to account for the additional costs necessary to complete the 10-K and the liquidation.
Estimated interest income of $71,000 to be earned on the loan agreement executed with VSW was recorded during the quarter ended July 31, 2010. On May 26, 2010, VSW borrowed $1.0 million under the $1.0 million line of credit available to VSW under the terms of the Credit Agreement between Convera and VSW dated February 9, 2010. The loan bears interest at a rate of 10% per annum with the interest and principal due on the first anniversary of the Merger (February 9, 2011).
The reversal of the AT&T contingency reserve of $409,000 was offset by increases to payroll, benefits, severance and retention costs of $33,000 and increased professional fees of $231,000. The increase in these costs are primarily related to the estimated increase in costs to complete the liquidation, including the filing of the year end 10-K. General and administrative costs increased by a net of $17,000 as costs were adjusted to account for the extended liquidation period. As noted above, interest income of $71,000 related to the loan to VSW was recorded in May 2010.
For the three months ended July 31, 2009, total revenues were $0.2 million. The net loss for the three months ended July 31, 2009 was $3.1 million, or $(0.06) per common share.
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