Wednesday, June 22, 2005
LVWD: prospectus notes continued (form S-1)
1998, 1999: LVWD issued lots of warrants to Hearst for newspaper ads.
1998: Patrikof loaned $900,000 (which as convertable into 228,405 pf series D stock) + warrants on 90,000 shares common (Hirschfeld director). New York Life loaned $400,000 (convertable into 102,183 shares of pf series D stock) + warrants on 40,000 shares common.
1999: director Snetiker exercised 125,000 options before vested using a 5.23% loan secured by the shares with a repurchase agreement by LVWD in case of weird situations (also automatically vesting 25% of unvested shares).
There was also a repurchase agreement for Woodul and Friedman unvested options (at the company's option).
[Note: Buffett says that when financial statements are difficult to parse, it's intentional. That related party section was difficult.]
[key shareholders moved to relevant post]
Warrants strike prices: mode was $4. Range was $3 to $10. 5 year expiration.
Accounting statement is from ? (odd that the accounting company is missing). It's KPMG who also audited previous years.
zillions of page of contracts etc.