SuperStock contributors report that no one has received royalty checks for the month of November and that sales reports have been late the last couple months.
The company has not reported third quarter sales. In the first half of 2008 the Superstock division of a21 had total sales of $5,440,000. Total revenue for a21 which includes the Art Select division was $10,282,000 for the period, but operating expenses exceeded this so the net loss for the first half was $1,320,000.
The latest filing with the Securities and Exchange Commission was on November 14th and concerned a $500,000 line of credit the company received in July from Applejack Art Partners, Inc. The Note matured on November 1, 2008 with a total amount due of approximately $404,000. The Note is secured by all personal property and assets of the company. Since the company was unable to pay the principal amount of the Note the interest increased from 12% to 15% on November 11, 2008.
Sources say that representatives from several stock photography companies have visited the company’s Jacksonville headquarters recently. It is believed that most of these companies are interested in purchasing wholly owned assets, rather than continuing to operate the company.
There are indications that further announcements concerning the future of the company will be made before the end of the year.