XM Radio 1999 Annual Report Download - page 40

Download and view the complete annual report

Please find page 40 of the 1999 XM Radio annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 56

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56

38 XM RADiO
In addition to financing, the Company has relied upon certain related parties for legal and technical services.
Total expenses incurred in transactions with related parties are as follows:
Year Ended December 31, 1997
WSI AMSC Total
(in thousands)
Professional fees................................................ $ 960 $ 130 $ 1,090
General and administrative.................................. — 20 20
Total ......................................................... $ 960 $ 150 $ 1,110
Year Ended December 31, 1998
WSI AMSC Total
Research and development ................................. $ 6,624 $ — $ 6,624
Professional fees................................................ 2,529 353 2,882
General and administrative.................................. 903 60 963
Total ......................................................... $ 10,056 $ 413 $ 10,469
Year Ended December 31, 1999
WSI AMSC Total
Research and development ................................. $ 50 $ — $ 50
Professional fees................................................ — 219 219
General and administrative.................................. — 5 5
Total ......................................................... $ 50 $ 224 $ 274
Additionally, during 1998 and 1999 the Company incurred $925,000 and $0, respectively, of WSI project
management costs that were capitalized to the satellite system. With the WorldSpace Transaction, which is
discussed in note 4, on July 7, 1999, WSI ceased to be a related party; therefore, the expenses reflected
for WSI are representative of the period from January 1, 1999 through July 7, 1999.
(3) Due to Related Parties
Due to related parties included the following amounts:
December 31,
1998 1999
(in thousands)
Advances from WSI.............................................. $ 7,405 $ —
Due to WSI .......................................................... 5,904 —
Due to AMSC....................................................... 458 62
......................................................................... $ 13,767 $ 62
Advances represented funding provided by WSI for 30 days. If amounts were not repaid within this time period,
additional subordinated convertible notes were issued.
(4) Debt
(a) Loans Payable Due to Related Party
In March 1997, XMSR entered into a series of agreements (the “Participation Agreement”) with AMSC and WSI in