Tiscali 2009 Annual Report Download - page 183

Tiscali Group: Annual Report 2009
182
of EUR 1.1 million and loans to the treasury for VAT in the amount of EUR 0.6 million.
Prepaid expense of EUR 0.04 million includes prepaid insurance and leasing costs.
Other current financial assets (note 15)
At 31 December 2008 the other current financial assets were an amount equal to EUR 2.6 million relating
to the sums bound up with supporting the guarantees made in the context of the sale of the German assets
that took place in 2007. These sums were under a lien following a dispute launched by the counter-party
(Ecotel Communication AG) which was concluded in September 2009 by a settlement agreement that
generated the release of the same. For further details please refer to what has been more amply described
in the paragraph to the present additional notes devoted to Disputes and Potential liabilities.
Cash and Cash equivalents (note 16)
At the end of 2009, cash and cash equivalents totalled EUR 2.4 million and include the company’s liquid
resources, essentially held in bank current accounts. Reference should be made to the report on operations
for a detailed analysis of the financial position.
Shareholders’ equity (note 17)
31 December 2009 31 December 2008
(EUR 000)
Share capital 92,003 308,273
Share premium reserve - 990,857
Stock option reserve 4,315 3,841
Reserve for own equity - (6,187)
Reserve to cover losses 252,931 -
Other reserves (7,248) -
Retained earnings (248,254) (1,142,688)
Total 93,747 154,096
At 31 December 2008, with net assets equal to EUR 154.1 million, Tiscali S.p.A. was under the circumstances
set out in section 2446 of the Civil Code for the reduction of corporate capital by more than one third.
The General Meeting of Shareholders held in April 2009, resolved upon the full use of the Share premium
reserve (of EUR 990.8 million) to recover the accumulated losses at 31 December 2008, and provided for
the carrying forward of the remainder of the loss in the amount of EUR 151.8 million..
Later, on the 30 June 2009, the General Meeting of Shareholders resolved to over the remaining losses at
31 December 2008, including the accumulated loss from the first quarter of 2009, by means of an equity
reduction, which was reduced from EUR 308.2 million to EUR 156 million.
On the 1 October 2009, the former Chief Executive Officer of Tiscali S.p.A., Dr. Tommaso Pompei, waived
359,314 options to purchase the same number of ordinary Tiscali S.p.A. shares. Those options had been
assigned to Dr. Pompei in the context of the stock option incentive plan passed by the Tiscali S.p.A.