At the same time, the purported change in control of UltraCard triggered a provision in an agreement between Upgrade and UltraCard which enables Upgrade to accelerate approximately $12 million owed to it by UltraCard.
Upgrade is hopeful that UltraCard can attract the necessary capital in order to repay its $12 million to the Company.
According to Dan Kehoe, president and CEO of UltraCard, "Having an established global company of the magnitude of G&D as a partner will rapidly advance commercialization of the UltraCard.
The UltraCard will enhance and augment G&D's already extensive global offering of cards and card solutions currently used in over 80 countries worldwide.
The UltraCard can store multiple factor biometrics such as FBI level fingerprints, iris scans, and photographs, all on the same card, as well as updatable border entry records, change-of-address, etc.
A unique application feature of the UltraCard is that due to its large data storage capacity the use of a web-centric database is unnecessary.
The UltraCard when commercially available will have 600 times the data storage capacity of a current 32kb capacity smart cards at a much lower cost.
While no other smartcard currently contains the capacity to hold the variety of security and biometric applications that UltraCard's capacity will allow once commercially available, the UltraCard will also provide unparalleled privacy.
Upgrade International Corporation and Subsidiaries (A development stage enterprise) CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Nine months ended June 30, 2000 2001 Costs and expenses Research and development $ 2,253,486 $ 5,030,133 Purchased in-process research and development 425,800 - Sales and marketing 1,115,910 1,276,559 General and administrative 8,666,055 8,519,784 12,731,251 14,826,476 Other expenses (income) Equity in losses of UltraCard
- - Interest expense 588,858 3,733,448 Provision for uncollectible advances - 3,399,780 Other, net 209,299 193,290 798,157 7,326,518 Minority interest in losses of subsidiaries (1,758,371) - NET LOSS $ 11,771,037 $ 22,152,994 Loss per common share-basic and diluted $ 0.