With Design Reports Loss of $509,922 in 1st Quarter
With Design In Mind International Inc., a troubled Woodland Hills company that sells novelty gift items, reported a $509,922 first-quarter loss on $294,900 in revenue.
A year earlier, With Design lost $563,747 on $136,124 in revenue.
The company also said that a class-action shareholder lawsuit filed against it in U.S. District Court in Los Angeles in February, 1993, was dismissed last Tuesday by the court.
The complaint had alleged violation of federal securities laws stemming from alleged embezzlement by With Design’s former chief executive, Steve Zuloff; Barry Benjamin, its former chief financial officer, and Benjamin’s son, David, a former company executive. The three were ousted from the company two years ago and later settled a complaint brought by the company by agreeing to pay about $1 million, mostly in cash and stock. The former executives did not admit or deny any wrongdoing.
A year ago, With Design was dismissed from another shareholder lawsuit stemming from the alleged embezzlement.
In reporting the first-quarter results, With Design said its sales increase was due to its October acquisition of children’s products manufacturer Janex Corp.
The company also said it eased its cash shortage by raising $494,100 through a private sale of units consisting of stock and warrants and $135,000 from the exercise of options. It also said it has completed negotiations with a bank for a $650,000 line of credit.