For the quarter ending March 31, the company reported slightly more than $50 million in total assets set against more than $52 million in liabilities, nearly $8 million of which are filed under the heading of “accounts payable.”
According to posts on GoFuckYourself.com, webmasters have complained that iBill has been delinquent in paying its accounts. The company has issued notes valued at $8 million to quell legal action by unpaid webmasters. However, according to the quarterly report, the company has defaulted on that loan. The report disputes a default on a loan from investment bankers at IIG Trade Opportunities Fund.
Still, language in the report offered assurances to investors that the troubled company has a plan to right its financial ship.
“The Company is pursuing various financing sources, in the form of both equity and debt, to improve the company’s financial position,” the report read. “The Company believes that the new business opportunities it is pursuing should enable it to continue to make the payouts to its clients, and to eventually reduce accrued payouts outstanding.”
IBill President Gary Spaniak did not return XBIZ’s call for comment. However, on May 5 he insisted that the company would not dodge its debts by declaring bankruptcy. A post on GFY, disputes that claim, saying that a company lawyer had told a creditor/webmaster that iBill does not have enough money to pay its creditors and that it is “considering bankruptcy.”
IBD owns a 35 percent stake in Penthouse and an 18 percent share in ITVN, which markets XTV, an adult Internet-protocol network. The company made two key moves during the quarter, according to the report.
In March, IBD hired Arizona-based Etelgate to handle its payment processing services. While that move could have short-term effects on the company’s customer service concerns, a second investment in animated cells won’t pay dividends for some time, according to the company.
Saying that it would be best to hold the assets until they appreciate in value, the report announced IBD’s acquisition of original cell art pieces produced by Filmation. The art includes popular depictions of “She-Ra Princess of Power,” “He-Man and the Masters of the Universe,” “Flash Gordon” and “Bravestarr.” IBD also purchased cell art from Lucasfilm’s “Star Wars Ewoks,” Sony/Columbia’s “Real Ghostbusters” and MCA/Universal’s “Back to the Future.”