1Working Capital Sample Clauses
The 'Working Capital' clause defines how the working capital of a business is calculated and managed, typically in the context of a transaction such as a business sale. It outlines the method for determining the target working capital amount, the process for measuring actual working capital at closing, and the mechanism for adjusting the purchase price if there is a difference between the target and actual figures. This clause ensures that both parties have a clear understanding of the financial position of the business at the time of transfer, thereby preventing disputes and ensuring a fair allocation of financial risk related to short-term assets and liabilities.
1Working Capital. Upon consummation of the Offering, it is intended that approximately $1,095,000 of the proceeds from the sale of the Firm Units and Private Shares will be released to the Company to fund the working capital requirements of the Company.
1Working Capital. The historical working capital of Optimal and its level of cash are presented below: Prior to the acquisition of WowWee in November 2007, Optimal earned significant revenues from the payment processing of online gaming activities and accumulated a considerable amount of cash. When the US authorities established that online gaming transactions were deemed illegal, Optimal ceased the payment processing related to these operations and invested the unrestricted cash balance in other businesses. As a result of the WowWee acquisition, the cash balance decreased by $46M. WowWee did not require significant levels of working capital. As a result of good relationships with its suppliers, WowWee was able to use them as a financing source. WowWee orders the suppliers to manufacture the products only when it receives orders from clients. According to the agreement with the suppliers, WowWee is billed only when the products leave China’s port; WowWee was able to ask the suppliers to hold that inventory until it receives a firm order from its clients. Except for certain US sales, WowWee does not hold significant inventory. The cash levels and working capital did not change noticeably between the acquisitions of WowWee and Sablon.
1Working Capital. The Borrower will have at the end of each period for which financial statements are required to be furnished pursuant to this Agreement an excess of unconsolidated current assets over unconsolidated current liabilities of not less than the amount shown next to such period set forth below, except that in determining consolidated current assets, any amount available under any revolving term promissory note with Lender hereunder (less the amount that would be considered a current liability if fully advanced hereto) may be included (all as determined in accordance with the Accounting Standards).