SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
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April 18, 2005
HOMENET CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 000-22236 33-0565710
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(State or other jurisdiction of (Commission file (IRS employer
incorporation) number) identification no.)
5252 North Edgewood Drive, Suite 310, Provo, Utah 84604
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(Address of principal executive offices) (Zip code)
(801) 502-6100
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(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2.below):
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b)
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13c-4(c)
This document contains a total of 4 pages.
Item 1.01 Entry Into a Material Definitive Agreement
On or about December 6, 2004, the Company entered into loan arrangement
with two accredited lenders who lent the Company the principal amount of
$1,200,000 (the "Loan"). In the event the Loan is not repaid when due, the
Company is obligated to pay a one-time late charge equal to fifteen percent
(15%) of the unpaid amount. In addition, all amounts due and payable on the Loan
bear interest at the rate of eighteen percent (18%) per annum after default. The
Loan was due and payable in full on or about April 6, 2005. The loan was
guaranteed by five guarantors.
On April 18, 2005, the Company and the Lenders executed an amendment to
the Loan agreement, effective April 5, 2005, whereby the maturity date of the
Loan was extended to May 6, 2005. In consideration for this extension, the
Company agreed to pay Lenders aggregate fees of $60,000. The Company presently
does not have sufficient funding to pay the amounts owing on the Loan and there
can be no assurance that the Company will obtain sufficient funding to repay the
amounts owing on or before the May 6, 2005 maturity date of the Loan. If the
Company cannot repay the amounts owing it may be forced to substantial limit or
cease operations.
2.03 Creation of a Direct Financial Obligation or an Obligation Under an
Off-Balance Sheet Arrangement of a Registrant
The Company has incurred a material direct financial obligation as
further described in Item 1.01.
Item 9.01 Financial Statements and Exhibits
a. Financial statements of businesses acquired
Not applicable.
b. Pro forma financial information
Not applicable.
c. Exhibits
Number Description
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10.1 Amendment No. 1 To The Loan Agreement by and between
the Company, Horn Irrevocable Trust and Vescovo
Finance, LLC, effective April 5, 2005.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HOMENET CORPORATION
Date: April 18, 2005 By /s/ Frank Gillen
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Frank Gillen
President
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