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Video River Networks Announces Sale of Assets
Video River Networks Announces Sale of Assets
BULVERDE, TX, May 02, 2011 /Networking PR News/ -- - Video River Networks, Inc. (Pink Sheets: NIHK, formerly known as Nighthawk Systems, Inc.)("Video River Inc.") sold substantially all of its assets and certain liabilities to Video River Networks LLC, a separate entity ("Video River LLC"), on March 3, 2011, in exchange for a $200,000 secured subordinated note that is due in ten equal, annual installments of $20,000 beginning January 1, 2012, along with interest at 6% per annum. The book value of the assets sold was approximately $390,000 and the book value of the liabilities transferred was approximately $690,000. The note is secured by a security interest in Video River LLC's assets. In the event that Video River LLC prepays the note by December 31, 2011, the balance of the note is automatically reduced to $125,000. In addition, terms of the sale call for a royalty of $10 to be paid by Video River LLC to Video River Inc. for every IP3000 and IP6000 set top box sold subsequent to the asset sale until the note is paid in full. The sale, which was made with the approval of secured creditors, leaves Video River Networks with the note as its only material asset, approximately $500,000 in liabilities, and no ongoing operations.
Video River LLC is owned in part by H. Douglas Saathoff, the sole director and controlling shareholder of Video River Inc., and Jonathan Hayden, the former Chief Technology Officer at Video River Inc.
Mr. Saathoff is currently analyzing Video River Inc.'s future plan of operations, which may include taking steps to dissolve Video River Inc. or file for bankruptcy protection.
About Video River Networks
Prior to the sale discussed above, Video River Networks, Inc. (www.videorivernetworks.com) designed and manufactured a suite of IP set top boxes for use in hotels, casinos, cruise ships, hospitals, and digital signage applications. Scalable and flexible, the fan-less units can deliver 1080p source material at full resolution as well as the PC-like performance required by the latest software programs and in-room control products and services. Video River has partnered with hardware and software companies to provide digital content and services to customers around the world. Subsequent the sale above, Video River Inc. has substantially no operations or assets, other than its rights to the note and royalties in connection with sales of set top boxes made by Video River LLC.
CONTACT:
Doug Saathoff
Video River Networks
dsaathoff@videorivernetworks.com
830.714.5135
Statements contained in this release, which are not historical facts, including statements about plans and expectations regarding business areas and opportunities, acceptance of new or existing businesses, capital resources and future business or financial results are "forward-looking" statements. You should not place undue reliance on these forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, including, but not limited to, customer acceptance of our products, our ability to raise capital to fund our operations, our ability to develop and protect proprietary technology, government regulation, competition in our industry, general economic conditions and other risk factors which could cause actual results to differ materially from those projected or implied in the forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in our expectations, except as required by law. We also take no obligation to update or correct information prepared by third parties that are not paid for by us.
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