Rockford Corporation. Consolidated Statements of Stockholders' Equity (Deficit) (In thousands) Common Stock Additional Deferred Currency ----------------- Paid-In Stock Accumulated Translation Shares Amount Capital Grants Deficit Adjustments Total ------ ------ ------- ------ ------- ----------- ----- Balance at October 1, 1992 608 $ 6 $ 770 $ (58) $(1,637) $ 89 $ (830) Amortization of deferred stock grants -- -- -- 29 -- -- 29 Currency translation -- -- -- -- -- (189) (189) Net loss -- -- -- -- (3,799) -- (3,799) ----- ------- ------- ------- ------- ------- ------- Balance at September 30, 1993 608 6 770 (29) (5,436) (100) (4,789) Amortization of deferred stock grants -- -- -- 24 -- -- 24 Deferred stock grants canceled -- -- (5) 5 -- -- -- Currency translation -- -- -- -- -- (95) (95) Net income -- -- -- -- 4,905 -- 4,905 ----- ------- ------- ------- ------- ------- ------- Balance at September 30, 1994 608 $ 6 $ 765 $ -- $ (531) $ (195) $ 45 ===== ======= ======= ======= ======= ======= ======= See accompanying notes. Consolidated Statements of Cash Flows YEAR ENDED SEPTEMBER 30 1994 1993 -------- -------- (In thousands) OPERATING ACTIVITIES Net income (loss) $ 4,905 $ (3,799) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Cumulative effect of accounting change -- 827 Depreciation and amortization 1,484 1,499 Deferred income taxes (2,270) -- Provision for doubtful accounts -- 753 Provision for inventory allowances 513 1,765 Currency translation (95) (189) Amortization of deferred stock grants 24 29 Changes in operating assets and liabilities: Accounts receivable (938) (1,768) Inventories (109) 92 Prepaid expenses, insurance receivable, and other 1,201 (964) Bank overdraft (617) 229 Accounts payable 208 2,438 Accrued payroll, bonus, commissions, and other 380 73 Accrued warrant 270 1,100 Discontinued operations -- (240) Income taxes payable 169 231 -------- -------- Net cash provided by operating activities 5,125 2,076 INVESTING ACTIVITIES Purchases of property and equipment (1,204) (1,224) Increase in other assets (88) (26) -------- -------- Net cash used by investing activities (1,292) (1,250)
Rockford Corporation. By: /s/ Jamex X. Xxxxxxx -------------------------------- Chief Financial Officer
Rockford Corporation. NON-QUALIFIED STOCK OPTION AGREEMENT This Stock Option Agreement ("Agreement") made as of the ____ day of _________, 2000, by and between Rockford Corporation ("Corporation") and _________________ ("Optionee").
Rockford Corporation. By: /s/ --------------------------------------- Chief Financial Officer Address: 648 X. Xxxxx Xxxxx Xxxxx, Xxxxxxx 00000 "LENDER" /s/ --------------------------------------- Caroxxxx X. Xxxxxx Address: 38410 Xxxxxxxx Xxxx Xxxxxxxx, Xxxxxxx 00000
Rockford Corporation. By: /s/ ---------------------------- Chief Financial Officer Address: 648 X. Xxxxx Xxxxx Xxxxx, Xxxxxxx 00000 "LENDER" /s/ ---------------------------- Caroxxxx X. Xxxxxx Address: 38410 Xxxxxxxx Xxxx Xxxxxxxx, Xxxxxxx 00000 PROMISSORY NOTE Principal Amount: $2,000,000 Tempe, Arizona March 18, 1996 For value received, Rockford Corporation ("Maker") promises to pay to the order of Caroxxxx X. Xxxxxx ("Xender"), the principal amount stated above plus interest on the unpaid balance of the principal as hereinafter provided. This Promissory Note ("Note") is given by Maker to evidence Maker's obligation to make payments under the Loan Agreement between Lender and Maker of even date with this Note (the "Agreement").
