HSA Winding Down

By Jeff Baumgartner, CED Magazine
from BroadbandWeek Direct, May 2, 2002

High Speed Access Corp., once a "turn-key" provider of cable ISP services, and Charter Communications have come to terms on a final purchase price adjustments in connection with the sale of substantially all of HSA's assets to the MSO.

Those terms include a $750,00 payment by Charter to cover potential purchase price adjustments and an additional $650,000 in price adjustments tied to the settlement of accounts receivable. Charter, however, still holds $2 million of the purchase price to secure "potential indemnification claims against HSA." Charter is expected to pay that amount, minus the amount of any indemnification claims asserted by the operator, on Feb. 28, 2003.

To further reduce expenses as other alternatives are considered, HSA said it terminated the employment of two senior executives on April 30, 2002: President and CEO Daniel O'Brien and COO Gregory Hodges. O'Brien will remain on the company's board. HSA CFO George Willett took over as president on May 1. Following these and other workforce reductions, the company said it expects that its normal net loss will not exceed $50,000 per month after July 1, 2002.

Because HSA stock has traded below the $1.00 per share threshold on Nasdaq for well over 30 consecutive trading days, the company said it does not believe it will be able to maintain the listing and, consequently, expects that its common stock will soon trade on the OTC-Bulletin Board.