Management’s Discussion and Analysis of
| Edgar Online, Inc. |
Financial Condition and Results of Operations
At the Company's annual shareholders' meeting on
On
The Company must complete the termination of
Based on the Company's net asset balance as of
Payments during the liquidation period will be prioritized in the following hierarchy: (i) wind down related costs, including supplier costs necessary to the wind down of the business, employee obligations such as on-going salaries, fringe benefits and retention costs; (ii)
On
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benefit of its creditors and potential benefit to its shareholders. The Company will distributed proceeds, if any, to shareholders in proportion to their interests as of the close of business on
Prior to the wind down of business operations,
Critical Accounting Estimates
The Company's critical accounting estimates under the liquidation basis of accounting for the first quarter of fiscal 2013 are consistent with those included in its annual report on Form 10-K for the fiscal year ended
The Company made significant estimates and exercised judgment in determining accrued liquidation costs. The Company accrued costs expected to be incurred in liquidation and recorded payments made related to the accrued liquidation costs as follows (in thousands of dollars):
As Booked Adjustments Balance at April 28, to July 28, Accrued Liquidation Costs 2012 Reserves Payments 2012 U.S. pension plan costs $ (344) $ -- $ 344 $ -- Outside services 961 2 (195) 768 Payroll related costs 260 5 (67) 198 Other 77 (1) (15) 61 Total $ 954 $ 6 $ 67 $ 1,027
Liquidity and Capital Resources
As a result of
Based on the net asset balance as ofJuly 28, 2012 , the Company believes proceeds from the liquidation of assets will be sufficient to provide payment in full to its creditors. Payments are estimated as follows (in thousands of dollars): Estimated Assets Total Percentage Available for Category Liabilities Paid Distribution Wind down related costs $ 1,027 100% $ 1,027 Taxes (income and other) 128 100% 128 Unsecured creditor claims 9,658 100% 9,658 Total liabilities $ 10,813 $ 10,813 Available for shareholder distribution 872 Total estimated assets for distribution $ 11,685 8
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These projected payments are based on significant estimates and judgments. Through the liquidation period, if the Company is able to realize cash proceeds in excess of what is needed to satisfy all the Company's obligations, the Company will distribute any such proceeds to shareholders. The actual amount and timing of future liquidating distributions, if any, to shareholders is dependent upon the resolution of all open items and periods with taxing authorities; the ultimate settlement amounts of the Company's liabilities and obligations; actual costs incurred in connection with carrying out the Company's Plan of Final Liquidation, including administrative costs during the liquidation period. Included in the net assets of
* * * * * * * *
Information in this Form 10-Q contains forward-looking statements, which are not historical facts. These statements involve risks and uncertainties and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could differ materially from those contemplated by these forward-looking statements including, without limitation, resolving open items and periods with taxing authorities, maintaining sufficient liquidity to fund wind down operations, retaining key personnel, satisfactory resolution of any outstanding claims or claims which may arise, and other factors discussed in this document and those detailed from time to time in the Company's filings with the
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