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Liabilities of the Corporation

Out of the cash received for the first stock issue the company will buy about $25,000-30,000 of equipment and pay any remaining costs of organization. During the first 90 days of operation other expenses should be nominal, limited to telephone costs, printing of letterheads, and such.

When products start to be available for sale, there will be expenses for sales and production. Until revenues match operating expenses, the company expects to raise operating capital by the participants' exercise of warrants.

In order to get the rights to Interact, the company expects to enter into a royalty agreement with Owens Associates, which underwrote some of the development of the package. The details of this agreement have not been worked out.

As most of the participants are now employed in the computer industry, there is a possibility of conflicting claims to the rights to software written for MSP. All participants will be required to certify that they have the right to develop software for the company, clear of any claims by any other employer.

No other liabilities are known.


This drawing was originally done on AutoCAD-80 shortly before COMDEX 1982 as a show demo. The program described by this flowchart is one of the Marinchip business application packages.

Editor: John Walker