Earthlink 2008 Annual Report Download - page 266

HELIO, INC. and HELIO LLC
COMBINED STATEMENTS OF STOCKHOLDERS’ AND PARTNERS’ EQUITY (continued)
(In thousands, except share/unit data)
The accompanying notes are an integral part of these combined financial statements.
6
HELIO, INC. and HELIO LLC
COMBINED STATEMENTS OF CASH FLOWS
(In thousands)
Total
Convertible Preferred
Class B
Class A
Stockholders
’
Membership Units
Common Stock
Common Stock
Additional
Accumulated
and Partners
’
Units
Amount
Shares
Amount
Shares
Amount
Paid
-
in Capital
Deficit
Equity
Balance at December 31, 2006
100,000,000
$
401,000
2
$
—
5,337,900
$
54
$
13,952
$
(233,778
)
$
181,228
Funding received from Partners under
original $440,000 capital commitment
(See Note 10)
—
39,000
—
—
—
—
—
—
39,000
Funding received from SKT (See Note 10)
10,000,000
30,000
—
—
—
—
—
—
30,000
Conversion of Partner convertible notes
payable of $70,000 and $478 of accrued
interest into 23,492,592 Preferred
Membership Units in November 2007
(See Note 9)
23,492,592
70,478
—
—
—
—
—
—
70,478
Cancellation of member units from Partner
(See Note 10)
(9,090,909
)
—
—
—
—
—
—
—
—
Exercise of employee stock options during
2007
—
—
—
—
78,997
1
135
—
136
Stock expense pertaining to vested portion of
a warrant issued in 2005 to a Partner to
purchase 1,995,000 shares of the
Company’s Class A Common Stock at
$1.71 per share
—
—
—
—
—
—
210
—
210
Stock expense pertaining to vested portion of
a warrant issued to a Partner in 2006 to
purchase 65,000 shares of the Company’
s
Class A Common Stock at $1.71 per
share
—
—
—
—
—
—
8
—
8
Warrant issued to a Partner in 2007 to
purchase 407,250 shares of the
Company’s Class A Common Stock at
$1.82 per share
—
—
—
—
—
—
4
—
4
Employee stock compensation expense
—
—
—
—
—
—
1,843
—
1,843
Supplemental compensation paid on behalf
of certain employees by a Partner
—
—
—
—
—
—
1,498
—
1,498
Issuance of 144,375 shares of Class A
Common Stock to a Partner in 2007 at
$1.82 per share
—
—
—
—
144,375
1
262
—
263
Warrant issued to a third party in 2007 to
purchase 2,348,883 shares of Company’s
Class A common Stock at $10.00 per
share
—
—
—
—
—
—
396
—
396
Net loss
—
—
—
—
—
—
—
(
326,562
)
(326,562
)
Balance at December 31, 2007
124,401,683
$
540,478
2
$
—
5,561,272
$
56
$
18,308
$
(560,340
)
$
(1,498
)
Period of
Inception
(January 27,
2005) to
December 31,
Year ended
December 31,
Year ended
December 31,
2005
2006
2007
Operating activities
Net loss
$
(42,023
)
$
(191,755
)
$
(326,562
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
6,766
21,533
31,612
Loss on disposal of property and equipment
—
50
54
Stock based compensation
43
2,000
2,461
Impairment charge on intangible assets
—
—
3,131
Interest expense associated with convertible notes payable to partners
—
—
3,127
Other non
-
cash activities
1,621
2,325
1,761
Changes in operating assets and liabilities:
Accounts receivable
(1,336
)
(8,855
)
(19,025
)
Inventory
(3,814
)
(7,911
)
(12,004
)
Prepaid expenses and other assets
(6,122
)
(9,516
)
9,281
Restricted cash
(7,310
)
(6,187
)
913
Accounts payable
619
12,711
17,109
Accrued liabilities
16,443
28,394
17,689