Florida Smart Card Operation To Be Liquidated
From SEC Form 8K, ITEM 5. OTHER EVENTS AND OTHER REGULATION FD DISCLOSURE
Leapfrog Smart Products, Inc. (the “Company”) announces that its expected funding from Broad Street Capital Partners I, Ltd. has been delayed into the third quarter of 2002. According to the Broad Street principals, they remain committed to the Company and confident that funding will occur.
Further, because of the delay in funding, the Company has determined to close its Florida operating subsidiary, also called Leapfrog Smart Products, Inc. This will be done through a liquidating Chapter 11 under the federal bankruptcy code. Shareholders own stock in the Leapfrog Smart Products, Inc., the publicly traded Colorado (parent) company, and therefore, their equity positions shall be unaffected.
Lastly, because of the magnitude of the financial changes to the Company, its financial statements will need to be recalculated. Accordingly, the Company expects it will not meet its filing deadline for the annual 10KSB report. The Company believes it will be able to file a 10KSB by May 15, 2002.