MIRA INFORM REPORT

 

 

Report Date :

28.02.2007

 

IDENTIFICATION DETAILS

 

Name :

CALLWAVE, INC.

 

 

Registered Office :

136 W Canon Perdido Street Suite A, Santa Barbara, California 93101                       

 

 

Country :

United States               

 

 

Date of Incorporation :

27/04/2004

 

 

Legal Form :

Corporation - Public

 

 

Line of Business :

Provides application services on a subscription basis that add features and functionality to the telecommunications services used by mainstream consumers and small and home offices.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

 

 

 

IDENTIFICATION & EXECUTIVE SUMMARY

 

Company Name : CALLWAVE, INC.

Address                        : 136 W CANON PERDIDO STREET SUITE A

City                              : SANTA BARBARA

State/Province               : CALIFORNIA                           

Zip Code                       : 93101                       

Country                         : UNITED STATES               

Telephone                     : 805 690-4000                

Facsimile                      : 805  456-6424               

As of                             : 30/06/2006

Sales / Revenue : 36,594  

Net Income                    : - 1,983  

Total Equity                   : 64,662  

Number of Employees    : 91  

Legal Form                    : Corporation - Public

Website                        : www.callwave.com

Maj. Shareholder            : Mr. Peter V. Sperling

Rating Opinion               : up to $100,000

Business Activity           : The Subject provides application services on a subscription basis that add features and

                                      functionality to the telecommunications services used by mainstream consumers and

                                      small and home offices.

 

 

NOTE TO CLIENT

 

Person contacted: Investor Relations.

 

Rating: Credit can be reasonably accepted up to $100,000.

 

Amount Requested:           2,000  

 

The amounts requested and advised are expressed in:   EUR

 

 

LEGAL

 

Legal Form                                : Corporation - Public 

Since (D/M/Y)                            : 27/04/2004

State/Province of Incorporation    : DE

Status                                       : ACTIVE

Previous Legal Form                   :

Company is required to publish an annual financial report.

 

Delaware registration:

 

File Number: 3795539

Incorporation Date / Formation Date: 04/27/2004

Entity Name: CALLWAVE, INC.

Entity Kind: CORPORATION Entity Type: GENERAL

Residency: DOMESTIC State: DE

REGISTERED AGENT INFORMATION

Name: NATIONAL CORPORATE RESEARCH, LTD.

Address: 615 SOUTH DUPONT HWY

City: DOVER County: KENT

State: DE Postal Code: 19901

Phone: (302)734-1450

 

California qualification:

 

CALLWAVE, INC.

Number: C2675515  Date Filed: 9/20/2004  Status: active

Jurisdiction: DELAWARE

Address

136 W CANON PERDIDO ST STE A

SANTA BARBARA, CA 93101

Agent for Service of Process

MICHAEL E PFAU

1421 STATE ST STE B

SANTA BARBARA, CA 93101

 

---------------------------------------------------------------------

 

The Subject is publicly traded on the NASDAQ National Market under the symbol CALL.

 

Recent price:      $ 3.02

52 Wk High:        $ 4.96

52 Wk Low:         $ 2.50

 

Shares Outstanding 20,815,000

 

 

Managers/Key Personnel

 

Mr. Peter V. Sperling                              Chairman Of The Board Of Directors

Mr. David F. Hofstatter               President &  CEO

Mr. Mark Stubbs                                    Chief Financial Officer

Mr. David S. Trandal                  Vice President

Mr. Mike Luxton                         Controller

 

 

OWNERS

 

Mr. Peter V. Sperling                              18.70%    Shareholder

Mr. Jerry Murdock                                  14.70       Shareholder

Insight Venture Associates IV, LLC         14.60       Shareholder

Mr. David F. Hofstatter                            8.90         Shareholder

Wheatley Partners, and affiliated e         6.40         Shareholder

New Millennium Partners, and affili         5.80         Shareholder

 

  

SUBSIDIARIES

 

Liberty Telecom, LLC                             Delaware

CallWave Long Distance, LLC    Delaware

 

 

 

 

BANKS

 

Wells Fargo

CA

Telephone:

Facsimile:

Account Number: 4121160022

Account Manager:

 

Bank reference authorization could not be obtained at this time.

 

 

PAYMENT HISTORY

 

 BUSINESS   DATE  LAST  PAYMENT CREDIT   BALANCE  CUR 1-  31- 61-

 CATEGORY   REPTD SALE  TERMS      $        $      %  30  60  90  91+ COMMENTS

 ---------- ----- ----- ------- -------- -------- --- --- --- --- --- --------

 ADVERTISNG 07-01 00-00 NET 30  0        0        0   0   0   0   0   CUST  4 YR

 AIR TRANS  06-12 06-12 0000000 23000    1600     100 0   0   0   0   CUST  8 YR

 

 AIR TRANS  06-11 00-00 NET 30  200      100      100 0   0   0   0   CUST  1 YR

 BUS SERVCS 07-02 00-00 VARIED  700      700      100 0   0   0   0

 COMPUTERS  07-01 05-05 CREDIT  50000    0        0   0   0   0   0   ACCTCLOSED

 GENL MERCH 07-01 02-07 CREDIT  0        0        0   0   0   0   0   ACCTCLOSED

 PACKAGING  07-01 00-00 NET 30  0        0        0   0   0   0   0   CUST  1 YR

 TELECOM    06-11 00-00 NET30   15000    6700     100 0   0   0   0

 COMPUTERS  04-02 00-00 NET 30  0        0        0   0   0   0   0

 COMPUTERS  06-06 06-05 0000000 22500    1900     0   78  0   22  0

 DP SERVCS  05-11 05-09 NET 30  8300     900      0   100 0   0   0

 TEMP HELP  06-07 06-07 ROI     4600     1100     0   100 0   0   0

 CURRENT QUARTER                88900    9100     100 0   0   0   0

 

 Payment Trends

            INDUSTRY     BUSINESS        BALANCE  CUR 1-  31- 61-

 DATE      CUR    DBT       DBT             $      %  30  60  90  91+

 --------  ---    ---       ---          -------- --- --- --- --- ---

 20070200  0      0         0            8700     100 0   0   0   0

 20070100  0      0         0            8700     100 0   0   0   0

 20061200  0      0         0            8200     100 0   0   0   0

 20061100  0      0         0            8600     100 0   0   0   0

 20061000  0      0         0            7900     100 0   0   0   0

 20060900  0      0         0            7900     100 0   0   0   0

 

 Payment History - Quarterly Averages

                                         BALANCE  CUR 1-  31- 61-

 QUARTER  YEAR              DBT             $      %  30  60  90  91+

 -------- ------            ---          -------- --- --- --- --- ---

 Fourth   2006              0            8500     100 0   0   0   0

 Third    2006              0            7900     100 0   0   0   0

 Second   2006              0            7600     100 0   0   0   0

 First    2006              0            7600     99  1   0   0   0

 Fourth   2005              4            10300    76  24  0   0   0

 

 

FINANCIAL INFORMATION

 

 

FINANCIAL FIGURES

 

 Year-End (D/M/Y):               31/12/2006         30/06/2006         30/06/2005

                                 Quarterly         Consolidated      Consolidated

 Sales / Revenues                   13,443           36,594           45,518  

 Interest Income                       -              2,479            1,032  

 Gross Margin                        9,024           23,506           32,492  

 Operating Income (Loss)            -4,182           -1,376            8,465  

 Other Expenses                        -40             -143             -569  

 

 RESULTS

 Income before Taxes                -2,585            1,103            9,497  

 Income Tax                            -              3,086           -2,105  

 Net Income                         -2,585           -1,983           11,602  

 

 ASSETS

 Cash and Equivalents               19,134           24,040           17,163  

 Inventory                             -                -                454  

 Accounts Receivables                3,184            2,834            5,676  

 Other Current Assets                1,288            1,061              589  

 Total Current Assets               65,105           64,842           63,878  

 Property Plant &  Equip              2,179            2,014            2,024  

 Other Fixed Assets                     66               66            3,343  

 Total Fixed Assets                  2,751            2,613            5,367  

 Intangibles                           506              533              -    

 Total Assets                       67,856           67,455           69,245  

 

 LIABILITIES

 Trade Creditors                     2,107            1,186            1,815  

 Other Current Liab                  3,029            1,607            3,034  

 Total Current Liab                  5,136            2,793            4,849  

 Total Liabilities                   5,136            2,793            4,849  

 

 EQUITY

 Retained Earnings                  -9,899           -7,314           -5,331  

 Total Equity                       62,720           64,662           64,396  

 

FINANCIAL ANALYSIS

 

                           Actual           Previous    Percentage of total assets

                           31/12/2006        30/06/2006     31/12/2006  30/06/2006

 Cash and Equivalents        19,134           24,040        28.20     35.64

 Other Current Assets         1,288            1,061         1.90      1.57

 Total Current Assets        65,105           64,842        95.95     96.13

 Intangibles                    506              533         0.75      0.79

 Total Assets                67,856           67,455       100.00    100.00

 Total Current Liab           5,136            2,793         7.57      4.14

 Total Liabilities            5,136            2,793         7.57      4.14

 Total Equity                62,720           64,662        92.43     95.86

 

The Subject is publicly traded on the NASDAQ National Market, consolidated financial details appear above in thousands of US Dollars.

 

 

 

CURRENT OPERATIONS

 

NAICS Code:   5133      Telecommunications

 

Number of Employees:              91  

 

Business Activity:

The Subject provides application services on a subscription basis that add features and functionality to the telecommunications services used by mainstream consumers and small and home offices. The Subject's products intercept inbound phone and fax calls to their subscribers and is able to redirect these calls to the devices selected by the subscribers using their existing telecommunications lines. In addition, their Software enables the Subject to provide virtual phone and fax numbers to their subscribers who then can publish multiple phone or fax numbers for use with a single phone line.

 

Their corporate headquarters are located at 136 West Canon Perdido Street, Santa Barbara, California, where they lease approximately 7,800 square feet under two leases that expired in July 2005. They entered into a new lease for this space and for additional office space effective August 1, 2005, a total of approximately 16,000 square feet. The new lease expires on July 31, 2010. They conduct their research and development and sales and marketing activities at these facilities. They have an option to extend the term of this lease for an additional five years. 

 

They lease approximately 7,900 square feet at 5464 Carpinteria Avenue, Carpinteria, California under a lease that terminates on June 30, 2008. They conduct Their customer care and general operations at this facility.

 

Liberty Telecom leases approximately 900 square feet of office space in Reno, Nevada to house and operate its telecommunications switching equipment. The lease expires in December 2007. Liberty Telecom has four options to extend the term of the lease for an additional 60 months each.

 

Liberty Telecom also has a co-location agreement to house and operate certain telecom switching equipment in approximately 150 square feet in Las Vegas, Nevada. The co-location agreement expires in August 2007. Liberty Telecom has four options to renew the term of the Agreement for an additional 24 months each.

 

Their facilities are fully used for current operations. They believe their properties are suitable and adequate for their present needs, and they periodically evaluate whether additional facilities are necessary.

 

 

TRADE REFERENCES

 

Trade references:  As of this writing the following trade references have not replied to our information request:

 

Qwest Communications

800 686-9807

-----

Channell Access

805 571-7615

-----

Insight

800 467-4448

-----

Dell, Inc.

800 685-4962

 

 

PUBLIC RECORD

 

We found no evidence of bankruptcy filed in the Subject's name.

 

Corporation Number: 2675515

Date of Inc / Qualification: 9/20/2004

History: File Date: 9/28/2006

 

Transaction: CORPORATE DISCLOSURE STATEMENT BY PUBLICLY TRADED CORPORATION

Amendment Number: 0991158

File Date: 8/19/2005

Transaction: CORPORATE DISCLOSURE STATEMENT BY PUBLICLY TRADED CORPORATION

Amendment Number: 0991380

File Date: 9/22/2004

Comments: NAME CHANGE FROM: CALLWAVE, INC. WHICH WILL DO BUSINESS IN CALIFORNIA

AS CALLWAVE DELAWARE

Transaction: AMENDED STATEMENT AND DESIGNATION BY FOREIGN CORPORATION

Amendment Number: A0617486

Other Corporation Number: 02675515

 

Case Number: 1093458

Case Type: CIVIL

Defendant: BRAHM, DAVID

CALLWAVE INC

GIANNINI, DAVID

Filing Date: 5/7/2002

Filing Type: CIVIL

Plaintiff: OPREA, MIRCEA

 

Defendant Counsel: Kohm, Bryan A [COR LD NTC]

Fenwick and West

275 Battery Street, 15TH Floor

San Francisco, CA, USA 94111

415-875-2404 Email: Bkohm@fenwick.com

Woo, Darryl M [COR LD NTC] (Terminated 6/7/2006)

Fenwick and West

275 Batte

Defendant: Callwave Inc

COUNTER CLAIMANT: Callwave Inc

COUNTER DEFENDANT: Catch Curve Inc

Filing Date: 7/1/2005

Filing Type: Civil

Plaintiff Counsel: Bernstein, Frank L [COR LD NTC]

Kenyon and Kenyon

333 West San Carlos Street, Suite 600

San Jose, CA, USA 95110

408-975-7500 Email: Fbernstein@kenyon.com

Bedrosian, Carla [COR LD NTC]

Loeb and Loeb

10100 Santa Monica Boulevard Suite 2200

Los Angeles, CA, USA 90067-4120

310-282-2000 Email: Cbedrosian@loeb.com

Sacks, Robert A [COR LD NTC]

Sullivan &  Cromwell

1888 Century Park E Ste 2100

Los Angeles, CA, USA 90067-1725

310-712-6600 Email: Sacksr@sullcrom.com

England, Brian R [COR LD NTC]

Sullivan and Cromwell

1888 Century Park East, Suite 2100

Los Angeles, CA, USA 90067-1725

Amendment Number: A0523821

 

 

GENERAL COMMENTS

 

The Subject was incorporated in 2004. The payment history of the Company is satisfactory, and operating record clear. No derogatory information was reported or noted. The Company is considered responsible for normal business transactions.

 



 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions