-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Iz94zT09PzjxEsCsR69+DVGdICMCxF8i+9wJKf+swBJBbQvPL9JpH1uYbBZ+ek98 4aRcYiGjqEkaVCGEvCEb5w== 0001011034-97-000102.txt : 19970616 0001011034-97-000102.hdr.sgml : 19970616 ACCESSION NUMBER: 0001011034-97-000102 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970331 ITEM INFORMATION: Changes in control of registrant FILED AS OF DATE: 19970613 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: REDWOOD BROADCASTING INC CENTRAL INDEX KEY: 0001004991 STANDARD INDUSTRIAL CLASSIFICATION: RADIO BROADCASTING STATIONS [4832] IRS NUMBER: 840928022 STATE OF INCORPORATION: CO FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 033-80321 FILM NUMBER: 97624071 BUSINESS ADDRESS: STREET 1: 7518 ELBOW BEND RD STREET 2: BLDG A STE 5-I CITY: CAREFREE STATE: AZ ZIP: 85377 BUSINESS PHONE: 6024882596 MAIL ADDRESS: STREET 1: 7518 ELBOW BEND RD STREET 2: BLDG A STE 5I CITY: CAREFREE STATE: AZ ZIP: 85377 FORMER COMPANY: FORMER CONFORMED NAME: INTELLIGENT FINANCIAL HOLDING CORP DATE OF NAME CHANGE: 19951215 8-K/A 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K/A-1 CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): March 31, 1997 REDWOOD BROADCASTING, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) Colorado 33-00321 84-0928022 - ------------------------ ---------------- ------------------- (State or other juris- (Commission file (IRS Employer diction of incorporation number) Identification No.) or organization) P.O. Box 3463, 7518 Elbow Bend Rd., Bldg. A, Suite I, Carefree, Arizona 85377 - ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (602) 488-2596 ------------------------------------------------------------------- ------------------------------------------------------------- (Former name or former address, if changed since last report) ITEM 7: FINANCIAL STATEMENTS AND PRO FORMA FINANCIAL INFORMATION - ------------------------------------------------------------------ (a) Financial Statements of Businesses Acquired Filed herewith are the Report of Independent Auditors, the Balance Sheet as of December 31, 1996 of KARZ/KNRO (A Division of Merit Broadcasting Corporation), Statement of Operations and Net Liabilities of Division for the year ended December 31, 1996 and the three months ended March 31, 1996 (unaudited), and Statements of Cash Flows for the year ended December 31, 1996 and the three months ended March 31, 1996 (unaudited), together with the Notes to Financial Statements. Also filed herewith are the Balance Sheet as of March 31, 1997 (unaudited) of KARZ/KNRO (A Division of Power Surge, Inc.), Statement of Operations and Net Assets of Division for the period January 31, 1997 through March 31, 1997 (unaudited), and Statement of Cash Flows for the period January 31, 1997 through March 31, 1997 (unaudited), together with the Notes to Financial Statements (Unaudited). (b) Pro Forma Consolidated Financial Information Filed herewith are the Unaudited Pro Forma Consolidated Statement of Operations for the year ended March 31, 1997 and the Unaudited Pro Forma Consolidated Balance Sheet at March 31, 1997 of Redwood Broadcasting, Inc. and Subsidiaries. ============================================================================== AUDITED FINANCIAL STATEMENTS KARZ/KNRO (A Division of Merit Broadcasting Corporation) December 31, 1996 ============================================================================== INDEPENDENT AUDITORS' REPORT KARZ/KNRO (A Division of Merit Broadcasting Corporation) We have audited the accompanying balance sheet of KARZ/KNRO (A Division of Merit Broadcasting Corporation) as of December 31, 1996 and the related statements of operations and of cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of KARZ/KNRO at December 31, 1996 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. STOCKMAN KAST RYAN & SCRUGGS, P.C. Colorado Springs, Colorado May 9, 1997 KARZ/KNRO (A Division of Merit Broadcasting Corporation) BALANCE SHEET DECEMBER 31, 1996 - ----------------------------------------------------------------------------- ASSETS CURRENT ASSETS Cash $ 4,661 Accounts receivable - net of allowance for doubtful accounts of $23,074 92,834 Other current assets 10,000 ---------- Total 107,495 OPERATING PROPERTY AND EQUIPMENT - Net (Note 3) 70,280 ---------- TOTAL $ 177,775 ========= LIABILITIES AND NET LIABILITIES OF DIVISION CURRENT LIABILITIES Accounts payable and accrued liabilities $ 10,877 Accrued interest payable to related parties (Note 2) 85,458 Line of credit borrowings (Note 4) 1,617 ---------- Total 97,952 DEBT TO RELATED PARTIES (Note 2) 164,297 NET LIABILITIES OF DIVISION (84,474) ---------- TOTAL $ 177,775 =========
See notes to financial statements. KARZ/KNRO (A Division of Merit Broadcasting Corporation) STATEMENTS OF OPERATIONS AND NET LIABILITIES OF DIVISION FOR THE YEAR ENDED DECEMBER 31, 1996 AND THE THREE MONTHS ENDED MARCH 31, 1996 - -----------------------------------------------------------------------------
December 31, March 31, 1996 1996 (Unaudited) ------------ ----------- REVENUE Broadcasting $ 588,339 $ 130,342 Less agency commissions 38,042 8,256 ----------- ---------- Net revenue 550,297 122,086 ----------- ---------- COSTS AND EXPENSES General and administrative 298,701 72,260 Programming and technical 152,611 37,157 Sales 104,014 19,719 ----------- ---------- Total 555,326 129,136 ----------- ---------- LOSS FROM OPERATIONS 5,029 7,050 INTEREST EXPENSE (Note 2) 17,526 4,245 ----------- ---------- NET LOSS 22,555 11,295 TRANSFERS TO OTHER DIVISIONS 8,551 NET LIABILITIES OF DIVISION, Beginning of period 53,368 53,368 ----------- ---------- NET LIABILITIES OF DIVISION, End of period $ 84,474 $ 64,663 ========== =========
See notes to financial statements. KARZ/KNRO (A Division of Merit Broadcasting Corporation) STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1996 AND THE THREE MONTHS ENDED MARCH 31, 1996 - -----------------------------------------------------------------------------
December 31, March 31, 1996 1996 (Unaudited) ------------ ----------- OPERATING ACTIVITIES Net loss $ (22,555) $ (11,295) Adjustments to reconcile net loss to net cash provided by activities: Depreciation 8,887 2,222 Changes in operating assets and liabilities: Accounts receivable 20,256 13,713 Accounts payable and accrued liabilities (7,854) 48,653 Accrued interest payable to related parties 16,930 4,233 ----------- ---------- Net cash provided by operating activities 15,664 57,526 ----------- ---------- FINANCING ACTIVITIES Repayment of line of credit borrowings (17,383) (3,048) Transfers to other divisions (8,551) ----------- ---------- Net cash used in financing activities (25,934) (3,048) ----------- ---------- NET INCREASE (DECREASE) IN CASH (10,270) 54,478 CASH, Beginning of period 14,931 14,931 ----------- ---------- CASH, End of period $ 4,661 $ 69,409 ========== ========= SUPPLEMENTAL CASH FLOW INFORMATION Cash paid for interest $ 1,058 $ 265 ========== =========
See notes to financial statements. KARZ/KNRO (A Division of Merit Broadcasting Corporation) NOTES TO FINANCIAL STATEMENTS - ----------------------------------------------------------------------------- 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General - ------- Merit Broadcasting Corporation (the Company) owned and operated radio stations KARZ-FM and KNRO-AM (together, KARZ/KNRO) in Redding, California through January 31, 1997, at which time KARZ/KNRO was acquired by Power Curve, Inc. The Company owns and operates two other radio stations and accounts for the activities of the stations as separate divisions. The accompanying financial statements include only the accounts of the KARZ/KNRO division of the Company. Interim Financial Statements - ---------------------------- The financial statements for the three months ended March 31, 1996 are unaudited. In management's opinion, the financial statements reflect all adjustments necessary for a fair presentation of the results for the three months ended March 31, 1996, all adjustments being of a normal and recurring nature. Accounts Receivable - ------------------- Concentrations of credit risk with respect to receivables are limited due to the large number of customers in diverse industries and generally short payment terms. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed inherent in the accounts receivable of KARZ/KNRO. Operating Property and Equipment - -------------------------------- Property and equipment is recorded at cost and is depreciated using accelerated methods over lives as follows: buildings - 35 years; vehicles - 5 years; towers and improvements - 5 to 10 years; and other equipment - 5 to 7 years. The recoverability of the carrying value of operating property and equipment is evaluated periodically in relation to the estimated value of the radio stations based on their operating performance and non-discounted cash flows. Income Taxes - ------------ As a division of the Company, KARZ/KNRO is not a taxable entity. Accordingly, no provision or credit for income taxes has been made in the accompanying financial statements. Statement of Cash Flows - ----------------------- For purposes of the statement of cash flows, highly liquid accounts maturing within three months of acquisition are considered to be cash equivalents. Use of Estimates - ---------------- The preparation of KARZ/KNRO's financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Geographic Area - --------------- KARZ/KNRO broadcasts in Northern California. This results in a risk to the Company due to the concentration in one geographic area. 2. RELATED PARTY TRANSACTIONS -------------------------- The Company has debt to its shareholders totalling $164,297 as of December 31, 1996. The debt is unsecured, bears interest at 10% and has no maturity date. Accrued interest on such debt was $85,458 as of December 31, 1996. Such debt and the related accrued interest has been recorded on the accompanying financial statements of KARZ/KNRO as it relates to the acquisition of assets of KARZ/KNRO. The Company has debt to a former shareholder totalling $644,825 as of December 31, 1996. Accrued interest on such debt was $45,867 as of December 31, 1996. Since such debt was incurred for the purchase of treasury stock of the Company, it has been recorded at the corporate level and has not been recorded on the accompanying KARZ/KNRO financial statements. Had such debt been recorded on the accompanying KARZ/KNRO financial statements as of December 31, 1996, net liabilities would have increased by $690,692 and net loss would have increased by $29,917. 3. OPERATING PROPERTY AND EQUIPMENT -------------------------------- Operating property and equipment consists of the following at December 31, 1996: Land $ 23,000 Building 22,644 Towers and improvements 126,099 Equipment 191,856 Vehicles 26,914 ---------- Total 390,513 Less accumulated depreciation 320,233 ---------- Operating property and equipment - net $ 70,280 =========
4. LINE OF CREDIT -------------- The Company has a $50,000 line of credit agreement with a bank which is unsecured, bears interest at the bank's index rate plus 1.5% and matured on February 15, 1997. The Company borrowed $19,000 under the line of credit agreement in 1995 for the purchase of equipment for KARZ/KNRO. Accordingly, such borrowings have been recorded on the KARZ/KNRO financial statements. As of December 31, 1996, the outstanding borrowings under the agreement totalled $1,617. 5. BUILDING LEASE -------------- KARZ/KNRO leases its offices under a month-to-month operating lease agreement. Lease expense totalled $19,908 during 1996. ============================================================================= UNAUDITED FINANCIAL STATEMENTS KARZ/KNRO (A Division of Power Surge, Inc.) March 31, 1997 ============================================================================= KARZ/KNRO (A Division of Power Surge, Inc.) BALANCE SHEET MARCH 31, 1997 (UNAUDITED) - ----------------------------------------------------------------------------- ASSETS CURRENT ASSETS Cash $ 14,087 Accounts receivable - net of allowance for doubtful accounts of $600 50,679 ---------- Total 64,766 OPERATING PROPERTY AND EQUIPMENT - net (Note 3) 145,239 NONCOMPETE AGREEMENT - net of accumulated amortization of $8,333 141,667 FCC LICENSE - net of accumulated amortization of $6,000 894,000 ---------- TOTAL $1,245,672 ========= LIABILITIES AND NET ASSETS OF DIVISION CURRENT LIABILITIES Accounts payable and accrued liabilities $ 41,596 Advances payable to Power Curve 11,000 ---------- Total 52,596 NET ASSETS OF DIVISION 1,193,076 ---------- TOTAL $ 1,245,672 =========
See notes to financial statements. KARZ/KNRO (A Division of Power Surge, Inc.) STATEMENT OF OPERATIONS AND NET ASSETS OF DIVISION FOR THE PERIOD JANUARY 31, 1997 THROUGH MARCH 31, 1997 (UNAUDITED) - ----------------------------------------------------------------------------- REVENUE Broadcasting $ 74,703 Less agency commissions 5,893 ---------- Net revenue 68,810 ---------- COSTS AND EXPENSES General and administrative 43,297 Programming and technical 24,370 Sales 8,067 ---------- Total 75,734 ---------- NET LOSS 6,924 NET ASSETS OF DIVISION, Beginning of period 1,200,000 ---------- NET ASSETS OF DIVISION, End of period $1,193,076 =========
See notes to financial statements. KARZ/KNRO (A Division of Power Surge, Inc.) STATEMENT OF CASH FLOWS FOR THE PERIOD JANUARY 31, 1997 THROUGH MARCH 31, 1997 (UNAUDITED) - ----------------------------------------------------------------------------- OPERATING ACTIVITIES Net loss $ (6,924) Adjustments to reconcile net loss to net cash provided by activities: Depreciation and amortization 19,094 Changes in operating assets and liabilities: Accounts receivable (50,679) Accounts payable and accrued liabilities 41,596 --------- Net cash provided by operating activities 3,087 --------- FINANCING ACTIVITIES Advances from Power Curve 11,000 --------- NET INCREASE IN CASH 14,087 CASH, Beginning of period 0 --------- CASH, End of period $ 14,087 ========
See notes to financial statements. KARZ/KNRO (A Division of Power Surge, Inc.) NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - ----------------------------------------------------------------------------- 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General - ------- KARZ-FM and KNRO-AM (together, KARZ/KNRO) are radio stations in Redding, California. Power Curve, Inc. (Power Curve) acquired KARZ/KNRO on January 31, 1997 from Merit Broadcasting Corporation (see Note 2). On March 31, 1997, the ownership of KARZ/KNRO was transferred to Power Curve's wholly owned subsidiary, Power Surge, Inc. (Power Surge). On April 1, 1997, the operation of KARZ/KNRO was transferred to Redwood Broadcasting, Inc. (Redwood) pursuant to a local management agreement. Power Curve and Redwood are affiliated through common ownership. The statements of operations and net assets of division and of cash flows reflect the activities of KARZ/KNRO for the period January 31, 1997 through March 31, 1997, during which time KARZ/KNRO was a division of Power Curve. The following unaudited pro forma information reflects the results of operations of KARZ/KNRO for the three-month period ended March 31, 1997, had Power Curve acquired KARZ/KNRO on January 1, 1997: Net revenue $ 106,159 Net loss 33,625
Interim Financial Statements - ---------------------------- The financial statements for the period January 31, 1997 through March 31, 1997 are unaudited. In management's opinion, the financial statements reflect all adjustments necessary for a fair presentation of the results for the period January 31, 1997 through March 31, 1997, all adjustments being of a normal and recurring nature. Accounts Receivable - ------------------- Concentrations of credit risk with respect to receivables are limited due to the large number of customers in diverse industries and generally short payment terms. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed inherent in the accounts receivable of KARZ/KNRO. Operating Property and Equipment - -------------------------------- Property and equipment is recorded at cost and is depreciated using accelerated methods over lives as follows: buildings - 35 years; equipment - 5 to 7 years; furniture and fixtures - 5 to 7 years. The recoverability of the carrying value of operating property and equipment is evaluated periodically in relation to the estimated value of the radio stations based on their operating performance and non-discounted cash flows. FCC License - ----------- The Federal Communications Commission (FCC) license represents the excess purchase price paid by Power Curve for KARZ/KNRO over the fair value of the acquired operating property and equipment and non- compete agreement and is being amortized on a straight-line basis over 25 years. Noncompete Agreement - -------------------- The cost of obtaining the agreement not to compete is being amortized over the three-year period of the agreement. Income Taxes - ------------ As a division of Power Surge, KARZ/KNRO is not a taxable entity. Accordingly, no provision or credit for income taxes has been made in the accompanying financial statements. Statement of Cash Flows - ----------------------- For purposes of the statement of cash flows, highly liquid accounts maturing within three months of acquisition are considered to be cash equivalents. Use of Estimates - ---------------- The preparation of KARZ/KNRO's financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Geographic Area - --------------- KARZ/KNRO broadcasts in Northern California. This results in a risk to Power Surge due to the concentration in one geographic area. 2. ACQUISITION OF KARZ/KNRO ------------------------ Pursuant to an agreement dated October 29, 1996, KARZ/KNRO was acquired by Power Curve on January 31, 1997 for a total purchase price of $1,200,000 consisting of $480,000 in cash and a $720,000 promissory note. The note is payable in monthly installments of principal and interest of $8,735, bears interest at a rate of 8% and matures on January 31, 2007. Power Surge did not assume the promissory note upon the transfer of ownership of KARZ/KNRO from Power Curve; accordingly, outstanding borrowings on the promissory note have not been reflected in the accompanying financial statements of KARZ/KNRO. The $1,200,000 purchase price has been allocated to operating property and equipment, noncompete agreement and FCC license in the accompanying KARZ/KNRO financial statements based on estimated fair values. 3. OPERATING PROPERTY AND EQUIPMENT -------------------------------- Operating property and equipment consists of the following at March 31, 1997: Buildings and improvements $ 75,000 Equipment 40,000 Transmitter 30,000 Furniture and fixtures 5,000 ---------- Total 150,000 Less accumulated depreciation 4,761 ---------- Operating property and equipment - net $ 145,239 =========
KARZ/KNRO leases its offices under a month-to-month operating lease agreement. Lease expense totalled $1,145 during the period January 31, 1997 through March 31, 1997. ============================================================================= SELECTED PRO FORMA CONSOLIDATED FINANCIAL DATA REDWOOD BROADCASTING, INC. AND SUBSIDIARIES March 31, 1997 ============================================================================= SELECTED PRO FORMA CONSOLIDATED FINANCIAL DATA The following tables set forth selected pro forma consolidated financial data for the Company. The Unaudited Pro Forma Consolidated Statement of Operations for the year ended March 31, 1997 gives effect to the acquisition of KARZ/KNRO as if such transaction had occurred on April 1, 1996. The Unaudited Pro Forma Consolidated Balance Sheet as of March 31, 1997 gives effect to the acquisition of KARZ/KNRO as if such transaction had occurred on March 31, 1997. The selected pro forma consolidated financial data set forth below do not purport to reflect what the results of operations or financial condition of the Company would have been if the acquisition had occurred on the dates specified above or to project the results of operations or financial condition of the Company for any future date or period. REDWOOD BROADCASTING, INC. AND SUBSIDIARIES UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1997 - --------------------------------------------------------------------------------------------------------------
Redwood Broadcasting, Inc. and Subsidiaries KARZ/KNRO Pro Forma Pro Forma Historical Historical (1) Adjustments Balances ------------------ -------------- --------------- ------------ Net revenues $ 507,917 $ 534,370 $ 1,042,287 Operating expenses 1,011,865 558,807 $ 78,548 (2) 1,649,220 ------------ ---------- ---------- ------------ Loss from operations (503,948) (24,437) (78,548) (606,933) Other income (expense) 544,051 (14,692) 13,634 (3) 542,993 ------------ ---------- ---------- ------------ Net income (loss) $ 40,103 $ (30,129) $ (64,914) $ (63,940) =========== ========== ========== ============
(1) Reflects the operations of KARZ/KNRO as a division of Merit Broadcasting Corporation for the ten months ended January 31, 1997 and as a division of Power Surge, Inc. for the two months ended March 31, 1997. (2) Represents additional depreciation and amortization expense that would have been recognized if the acquisition of KARZ/KNRO had occurred on April 1, 1996. (3) Represents the reduction of interest expense relating to KARZ/KNRO debt that would have been repaid if the acquisition of KARZ/KNRO had occurred on April 1, 1996. REDWOOD BROADCASTING, INC. AND SUBSIDIARIES UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET MARCH 31, 1997 - -------------------------------------------------------------------------------
Redwood Broadcasting, Inc. and Subsidiaries KARZ/KNRO Pro Forma Pro Forma Historical Historical (1) Adjustments Balances ------------------ -------------- ------------------ ------------ ASSETS CURRENT ASSETS Cash $ 40,791 $ 14,087 $ 54,878 Accounts receivable, net 193,106 50,679 243,785 Receivable 633,000 633,000 Other 10,807 10,807 ---------- ----------- ---------- ------------ Total current assets 877,704 64,766 942,470 Property and equipment, net 219,345 145,239 364,584 License, net 928,473 894,000 $ 6,000 (1) 1,828,473 Note receivable 200,000 200,000 Other 226,741 141,667 8,333 (1) 376,741 ---------- ----------- ---------- ------------ TOTAL $2,452,263 $1,245,672 $ 14,333 $ 3,712,268 ========= ========== ========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 478,980 $ 41,596 $ 520,576 Current portion of notes payable 62,884 62,884 Other current liabilities 21,716 11,000 32,716 ---------- ----------- ----------- ------------ Total current liabilities 563,580 52,596 616,176 NOTES PAYABLE 1,305,657 1,305,657 ---------- ----------- ----------- ------------ TOTAL LIABILITIES 1,869,237 52,596 1,921,833 ---------- ----------- ----------- ------------ STOCKHOLDERS' EQUITY Preferred stock Common stock 4,300 4,300 Additional paid-in capital 1,039,328 $1,207,409 (1)(2) 2,246,737 Accumulated deficit (415,602) (415,602) Note receivable from stockholder (45,000) (45,000) Net assets of division 1,193,076 (1,193,076) (2) ---------- ----------- ----------- ------------ Total stockholders' equity 583,026 1,193,076 14,333 1,790,435 ---------- ------------ ----------- ------------ TOTAL $2,452,263 $1,245,672 $ 14,333 $ 3,712,268 ========= =========== ========== =========== (1) Represents reduction in amortization expense that was recognized on the purchase price allocation to fee license and noncompete agreement from January 1, 1997 through March 31, 1997. (2) Represents contribution of capital assuming the acquisition of KARZ/KNRO on March 31, 1997. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. REDWOOD BROADCASTING, INC. Date: 6/13/97 By: /s/ John C. Power -------------- -------------------------- John C. Power
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