Northvale, NJ--Photonic Products Group Inc. reported that it has restructured its debt by renegotiating the term of its $1,700,000 senior Secured Note Payable with the holder of the note. The term of the note has been extended by eighteen months to July, 2006. All other terms of the note, including its favorable interest rate of 6% accrued annually, remain unchanged. The note is secured by the assets of the company. The holder of the note is a related party to a major shareholder of the Company. As consideration, 200,000 warrants were issued at a conversion price of $1.08 per share related.
Dan Lehrfeld, president and CEO of Photonic Products Groups business unit Inrad, noted that, with this term extension, the company's capital deployment could remain focused on growth. Photonic Products Group develops, manufactures, and markets products and services for use in differing photonics industry sectors via its various business units. Its Inrad business unit specializes in crystal-based optical components, devices, and instruments. Its Laser Optics business unit specializes in custom optical components, assemblies, and optical coatings.
Earlier this month, Photonic Products Group, Inc. reported that it had received $1,000,000 in proceeds from the issuance of a subordinated convertible promissory note. The promissory note is with a major shareholder, carries an interest rate of 6%, has a term of three years, and is convertible at a share price to be determined in future as described in the filing.
"With this capital infusion, we have the cash on hand that we require to close one or two potential acquisitions we are looking at currently. I expect we'll be seeking additional capital to finance our continued growth in the months ahead," said Lehrfeld.
Also earlier this month, Photonic Products Group reported financial results for its first fiscal quarter ending March 31, 2004. Revenues for the quarter were $1,806,000, up 50% from revenues in the same period last year of $1,201,000, and up 11% from revenues in the last quarter. New orders for the first quarter were $3,029,000, up 160% from $1,167,000 in the same period last year, and up 188% from new orders in the last quarter. The book-to-bill ratio (new orders divided by sales) for the period was 1.66. The backlog at the end of the first quarter was $3,407,000, an increase of 49% during the quarter and 236% higher than the $1,015,000 backlog at the same point in 2003. Net income was a loss of $0.09 per share for the quarter, as compared with a loss of $0.07 per share in the first quarter of 2003.