Oasys, a developer of content for mobile devices, has defaulted on $8 million in debt, the company disclosed in a filing on Monday with the Securities and Exchange Commission.

The debt came due at the end of June.

The $8 million does not include accrued interest, Oasys said.

Oasys (OTCBB: OYSM) stock fell 3 cents to 8 cents . Within the past year the firm’s stock traded at better than $3 per share with a 52-week high of $3.90.

Also on Monday, Oasys disclosed that two board members resigned. J. Winder Hughes stepped down on June 29, and Stephen Finn left the board as of July 2. Neither man had a disagreement with Oasys management, the company said in a statement.

The debt is owed to LAP Summus Holdings and RHP Master Fund, Ltd.

“[T]he Lenders will forbear on this default and shall evaluate, in their sole and absolute discretion, their forbearance on a day-to-day basis,” Oasys said in the filing. “This forbearance is subject to, among other things, the satisfactory progress of discussions regarding the repayment, refinancing or restructuring of Oasys Mobile’s indebtedness pursuant to the Debentures. The Lenders may terminate such forbearance at their discretion.”
Oaysys has been in financial trouble for several months. In April, the company said it has retained an investment banking firm to explore financial and business options. Oasys listed sale of the firm as a possibility.

Despite increases in revenue, losses for the fourth quarter in 2006 and for the year increased for Oasys due in part to costs related to severance of laid-off employees and the departure of Gary Ban, its former chief executive officer. Other expenses such as for stock options and development of a new Web site also increased the red ink.

In the fourth quarter, Oasys reported revenues of $2.64 million, up 35.4 percent from the same time period in 2005 and a jump of 24.8 percent from the third quarter of 2006. For the year, revenues improved 11.5 percent to $8.69 million.

Doug Dyer, a game industry veteran, replaced Ban as CEO in December.