Sometimes dry financial filings provide interesting stories. Here's one from Avatech Solutions 10-K filing [yahoo.com] today:
In July 2003, the [Avatech] Company entered into an Authorized Reseller Agreement with Dassault Systèmes Corp., an international developer and distributor of product life cycle management (PLM) application software and services.
In connection with the Reseller Agreement, Dassault provided Avatech with certain financial assistance to create a dedicated PLM sales force and to conduct related marketing efforts.
Over the next two years, the Company determined that the resources that it was employing to fulfill the Dassault Reseller Agreement could be better utilized in other areas of its operations in order to achieve its growth targets.
Therefore, in July 2005 the Company made the decision to discontinue its relationship with Dassault and restructured the terms of the loan that it had received in connection with its agreement with Dassault.
In connection with the refinancing of its line of credit, in January 2006 the Company prepaid the outstanding principal to Dassault at a discount and recorded a gain on early extinguishment of debt of approximately $233,000.
For the fiscal year just ended, Avatech reports total revenues of US$39.6 million, up 16.0% from a year ago.
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