UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: July 19, 2001
e-Synergies, inc. |
(Exact name of registrant as specified in its charter) |
California |
(State or other jurisdiction of incorporation) |
3 Corporate Plaza, Suite 250, Newport Beach, CA. 92660 |
(Address of principal executive offices) |
91-2021595 |
IRS Employer I.D. No. |
Registrant's telephone number, including area code (949) 219-0169
Item 1. Changes
in Control of Registrant.
Not applicable.
Item 2. Acquisition or Disposition of Assets.
This Form 8-K/A is an amendment to the Form 8-K filed on August 3, 2001, relating to the purchase by e-Synergies, inc. ("e-Synergies") of substantially all of the operating assets and assumption of certain liabilities of Worldwide Xceed Group, Inc. as approved by the United States Bankruptcy Court for the Northern District of Illinois on July 19, 2001. A copy of the Asset Purchase Agreement was included with the Form 8-K filed on August 3, 2001. The purpose of this amendment is to file the proforma consolidated financial statements of e-Synergies for the nine months ended May 31, 2001 and the year ended August 31, 2000.
Item 3. Bankruptcy
or Receivership.
Not applicable.
Item 4. Changes
in Registrants Certifying Accountant.
Not applicable.
Item 5. Other
Events and Regulation FD Disclosure.
Not applicable.
Item 6. Resignations
of Registrants Directors
Not applicable.
Item 7. Financial Statements and Exhibits.
E-SYNERGIES, INC.
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
On July 3, 2001, e-Synergies, inc. (e-Synergies) purchased substantially all of the operating assets and assumed certain liabilities of Worldwide Xceed Group, Inc.(Xceed) through an Asset Purchase Agreement. On July 19, 2001, the United States Bankruptcy Court for the Northern District of Illinois approved the agreement, and, subsequently, e-Synergies assigned the assets to e-Synergies Xceed, Inc., a wholly-owned subsidiary of e-Synergies, and e-Synergies Xceed, Inc. also agreed to pay the liabilities assumed by e-Synergies under the agreement.
The following unaudited pro forma consolidated financial statements present the effect of the transaction with Xceed on a purchase basis. The unaudited pro forma consolidated balance sheet presents the financial position of e-Synergies and Xceed as of May 31, 2001, assuming that the purchase was consummated as of September 1, 1999 based on the historical balance sheet of e-Synergies and the assets purchased and liabilities assumed as of July 3, 2001.
The unaudited pro forma consolidated statements of operations give effect to the purchase by combining the historical statements of operations of e-Synergies and Xceed for the nine months ended May 31, 2001 and the year ended August 31, 2000 with necessary adjustments. For purposes of preparing this pro forma information, the transaction was assumed to be consummated at the beginning of the preceding fiscal year and at the beginning of the current fiscal year. These unaudited pro forma consolidated financial statements should be read in conjunction with the historical financial statements.
The unaudited pro forma consolidated financial statements are presented for illustrative purposes only and are not necessarily indicative of the operating results or financial position that would have occurred if the merger had been consummated for the periods noted, nor are they necessarily indicative of future operating results or financial position.
(a) Exhibits
Exhibit No. | Description of Exhibit |
1 | Pro forma consolidated financial statements of e-Synergies, inc. for the nine months ended May 31, 2001 and the year ended August 31, 2000. |
__________________
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.
Dated: October 2, 2001
e-Synergies, inc., | ||
a California corporation | ||
By: | /s/ Thomas Ronk | |
Thomas Ronk, President |
E-SYNERGIES, INC. | |||||||||||||||||||||||
PRO FORMA CONSOLIDATED BALANCE SHEET | |||||||||||||||||||||||
AS OF MAY 31, 2001 | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
e-Synergies, Inc. Consolidated |
Xceed Acquisition | Pro forma Consolidating Entries | Pro forma e-Synergies, Inc. |
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ASSETS | |||||||||||||||||||||||
Current Assets | |||||||||||||||||||||||
Cash | $ | 172,218 | $ | - | $ | - | $ | 172,218 | |||||||||||||||
Accounts receivable (net) | 299,512 | 3,500,000 | - | 3,799,512 | |||||||||||||||||||
Due from affiliate | 13,100 | - | - | 13,100 | |||||||||||||||||||
Prepaid expenses | 1,350 | 73,801 | - | 75,151 | |||||||||||||||||||
Other current assets | 36,640 | - | - | 36,640 | |||||||||||||||||||
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Total current assets | 522,820 | 3,573,801 | - | 4,096,621 | |||||||||||||||||||
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Property and Equipment (net) | 410,145 | 1,098,295 | - | 1,508,440 | |||||||||||||||||||
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Other Assets | |||||||||||||||||||||||
Investment in HealthStar Corp. | 1,662,500 | - | - | 1,662,500 | |||||||||||||||||||
Intangible assets (net) | 210,855 | 1,489,700 | (1) | (279,319 | ) | 1,421,236 | |||||||||||||||||
Refundable deposits | 3,113 | 666,524 | - | 669,637 | |||||||||||||||||||
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Total Other Assets | 1,876,468 | 2,156,224 | (279,319 | ) | 3,753,373 | ||||||||||||||||||
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Total Assets | $ | 2,809,433 | $ | 6,828,320 | $ | (279,319 | ) | $ | 9,358,434 | ||||||||||||||
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LIABILITES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||||||
Current Liabilities | |||||||||||||||||||||||
Bank overdraft | $ | 62,034 | $ | - | $ | - | $ | 62,034 | |||||||||||||||
Accounts payable and accrued expenses | 1,023,286 | 97,052 | - | 1,120,338 | |||||||||||||||||||
Accrued payroll and related expenses | - | 421,648 | - | 421,648 | |||||||||||||||||||
Current portion of long-term debt | 18,127 | - | - | 18,127 | |||||||||||||||||||
Due to Affiliate | 741,809 | - | - | 741,809 | |||||||||||||||||||
Notes payable, bank | - | 3,000,000 | - | 3,000,000 | |||||||||||||||||||
Loans payable | 46,429 | - | - | 46,429 | |||||||||||||||||||
Taxes withheld from wages | 91,663 | - | - | 91,663 | |||||||||||||||||||
Other current liabilities | 63,563 | - | - | 63,563 | |||||||||||||||||||
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Total current liabilities | 2,046,911 | 3,518,700 | - | 5,565,611 | |||||||||||||||||||
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Long-Term Debt, net of current maturities | 26,123 | - | - | 26,123 | |||||||||||||||||||
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Minority Interest in Subsidiary | (135,600 | ) | - | - | (135,600 | ) | |||||||||||||||||
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Total Liabilities | 1,937,434 | 3,518,700 | - | 5,456,134 | |||||||||||||||||||
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Stockholders' Equity | |||||||||||||||||||||||
Common stock | 155 | - | - | 155 | |||||||||||||||||||
Additional paid-in-capital | 4,466,166 | - | - | 4,466,166 | |||||||||||||||||||
Retained earnings | (3,667,509 | ) | 3,309,620 | (279,319 | ) | (637,208 | ) | ||||||||||||||||
Accumulated other comprehensive income | 73,187 | - | - | 73,187 | |||||||||||||||||||
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Total Stockholders' equity | 871,999 | 3,309,620 | (279,319 | ) | 3,902,300 | ||||||||||||||||||
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Total Liabilities and Stockholders' Equity | $ | 2,809,433 | $ | 6,828,320 | $ | (279,319 | ) | $ | 9,358,434 | ||||||||||||||
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(1) | To record the amortization of the intangible asset recorded as a result of the Xceed acquisition ($1,489,700) over a four year period. | ||||||||||||||||||||||
E-SYNERGIES. INC. | |||||||||||||||||||||
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||||||||
FOR THE NINE MONTHS ENDED MAY 31, 2001 | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
e-Synergies, Inc. Consolidated |
Xceed Acquisition |
Pro forma Consolidating Entries |
Pro forma e-Synergies, Inc. Consolidated |
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Revenues | $ | 1,470,139 | $ | 18,215,378 | $ | - | $ | 19,685,517 | |||||||||||||
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Operating Expenses: | |||||||||||||||||||||
Cost of products sold | 899,336 | - | - | 899,336 | |||||||||||||||||
Direct expenses | 1,011,028 | 10,611,963 | - | 11,622,991 | |||||||||||||||||
Selling, general and administrative | 1,946,277 | 8,155,449 | - | 10,101,726 | |||||||||||||||||
Depreciation and amortization | 131,799 | 6,711,928 | (1) | 279,319 | 7,123,046 | ||||||||||||||||
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3,988,440 | 25,479,340 | 279,319 | 29,747,099 | ||||||||||||||||||
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Operating Loss | (2,518,301 | ) | (7,263,962 | ) | (279,319 | ) | (10,061,582 | ) | |||||||||||||
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Other Income (Expense): | |||||||||||||||||||||
Interest and dividend income | - | 68,112 | - | 68,112 | |||||||||||||||||
Interest expense | (28,773 | ) | (5,383 | ) | - | (34,156 | ) | ||||||||||||||
Loss from write-off of worthless investment in securities | (251,000 | ) | - | - | (251,000 | ) | |||||||||||||||
Miscellaneous income | 9,134 | 107,614 | - | 116,748 | |||||||||||||||||
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(270,639) | 170,343 | - | (100,296 | ) | |||||||||||||||||
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Loss from continuing operations | (2,788,940 | ) | (7,093,619 | ) | (279,319 | ) | (10,161,878 | ) | |||||||||||||
Discontinued Operations | |||||||||||||||||||||
Loss from operations of disposed subsidiary | (219,822 | ) | - | - | (219,822 | ) | |||||||||||||||
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Loss Before Minority Interest and Extraordinary Item | (3,008,762 | ) | (7,093,619 | ) | (279,319 | ) | (10,381,700 | ) | |||||||||||||
Minority Interest In Loss of Subsidiary | 105,261 | - | - | 105,261 | |||||||||||||||||
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Income Before Extrodinary Item | (2,903,501 | ) | (7,093,619 | ) | (279,319 | ) | (10,276,439 | ) | |||||||||||||
Extraordinary Item | |||||||||||||||||||||
Gain on sale of subsidiary, net of tax | 1,085,850 | - | - | 1,085,850 | |||||||||||||||||
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Net Income (Loss) | $ | (1,817,651 | ) | $ | (7,093,619 | ) | $ | (279,319 | ) | $ | (9,190,589 | ) | |||||||||
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Basic and Diluted Net Loss Per Common Share: | |||||||||||||||||||||
Income (loss) before extraordinary item | $ | (2.16 | ) | $ | (7.39 | ) | |||||||||||||||
Extraordinary item | 0.78 | 0.78 | |||||||||||||||||||
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$ | (1.38 | ) | $ | (6.61 | ) | ||||||||||||||||
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Weighted Average Number of Common Shares Outstanding | 1,390,762 | 1,390,762 | |||||||||||||||||||
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E-SYNERGIES, INC. | ||||||||||||||||||||||||
PRO FORMA CONSOLIDATED BALANCE SHEET | ||||||||||||||||||||||||
AS OF AUGUST 31, 2000 | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
e-Synergies, Inc. Consolidated | Xceed Acquisition | Pro forma Consolidating Entries | Pro forma e-Synergies, Inc. Consolidated | |||||||||||||||||||||
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ASSETS | ||||||||||||||||||||||||
Current Assets | ||||||||||||||||||||||||
Cash | $ | 339,478 | $ | - | $ | - | $ | 339,478 | ||||||||||||||||
Accounts receivable (net) | 545,007 | 3,500,000 | - | 4,045,007 | ||||||||||||||||||||
Unbilled services | 168,819 | - | - | 168,819 | ||||||||||||||||||||
Prepaid expenses | 17,170 | 73,801 | - | 90,971 | ||||||||||||||||||||
Miscellaneous receivables | 57,995 | - | - | 57,995 | ||||||||||||||||||||
Other current assets | 12,271 | - | - | 12,271 | ||||||||||||||||||||
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Total current assets | 1,140,740 | 3,573,801 | - | 4,714,541 | ||||||||||||||||||||
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Property And Equipment (net) | 433,777 | 1,098,295 | - | 1,532,072 | ||||||||||||||||||||
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Other Assets | ||||||||||||||||||||||||
Intangible assets (net) | 242,165 | 1,489,700 | (372,425 | ) | 1,359,440 | |||||||||||||||||||
Investments | 250,314 | - | - | 250,314 | ||||||||||||||||||||
Due from affiliates | 142,503 | - | - | 142,503 | ||||||||||||||||||||
Other assets | 26,291 | 666,524 | - | 692,815 | ||||||||||||||||||||
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Total Other Assets | 661,273 | 2,156,224 | (372,425 | ) | 2,445,072 | |||||||||||||||||||
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Total Assets | $ | 2,235,790 | $ | 6,828,320 | $ | (372,425 | ) | $ | 8,691,685 | |||||||||||||||
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LIABILITES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
Current Liabilities | ||||||||||||||||||||||||
Accounts payable and accrued expenses | $ | 1,337,028 | $ | 518,700 | $ | - | $ | 1,855,728 | ||||||||||||||||
Short-term bank borrowings | 94,186 | - | - | 94,186 | ||||||||||||||||||||
Current portion of long-term debt | 24,597 | - | - | 24,597 | ||||||||||||||||||||
Notes payable - bank | - | 3,000,000 | - | 3,000,000 | ||||||||||||||||||||
Due to affiliates | 110,490 | - | - | 110,490 | ||||||||||||||||||||
Loans payable | 7,097 | - | - | 7,097 | ||||||||||||||||||||
Taxes withheld from wages | 109,935 | - | - | 109,935 | ||||||||||||||||||||
Deferred revenues | 93,010 | - | - | 93,010 | ||||||||||||||||||||
Other current liabilities | 22,080 | - | - | 22,080 | ||||||||||||||||||||
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Total current liabilities | 1,798,423 | 3,518,700 | - | 5,317,123 | ||||||||||||||||||||
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Long-Term Debt, net of current maturities | 143,053 | - | - | 143,053 | ||||||||||||||||||||
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Minority Interest in Subsidiaries | (16,992 | ) | - | - | (16,992 | ) | ||||||||||||||||||
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Total Liabilities | 1,924,484 | 3,518,700 | - | 5,443,184 | ||||||||||||||||||||
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Stockholders' Equity | ||||||||||||||||||||||||
Common stock | 8,570 | - | - | 8,570 | ||||||||||||||||||||
Additional paid-in-capital | 3,238,431 | - | - | 3,238,431 | ||||||||||||||||||||
Retained earnings | (2,917,526 | ) | 3,309,620 | (372,425 | ) | 19,669 | ||||||||||||||||||
Accumulated other comprehensive income | (18,169 | ) | - | - | (18,169 | ) | ||||||||||||||||||
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Total stockholders' equity | 311,306 | 3,309,620 | (372,425 | ) | 3,248,501 | |||||||||||||||||||
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Total Liabilities and Stockholders' Equity | $ | 2,235,790 | $ | 6,828,320 | $ | (372,425 | ) | $ | 8,691,685 | |||||||||||||||
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(1) | To record the amortization of the intangible asset recorded as a result of the Xceed acquisition ($1,489,700) over a four year period. | |||||||||||||||||||||||
E-SYNERGIES, INC. | |||||||||||||||||||||
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||||||||
FOR THE YEAR ENDED AUGUST 31, 2000 | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
e-Synergies, Inc. Consolidated | Xceed Acquisition | Proforma Consolidating Entries | Pro forma e-Synergies, Inc. Consolidated |
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Revenues | $ | 4,338,415 | $ | 81,940,417 | $ | - | $ | 86,278,832 | |||||||||||||
Operating Expenses: | |||||||||||||||||||||
Cost of products sold | 992,493 | - | - | 992,493 | |||||||||||||||||
Cost of revenues | 2,725,344 | 48,055,742 | - | 50,781,086 | |||||||||||||||||
Selling, general and administrative | 2,228,518 | 28,747,660 | - | 30,976,178 | |||||||||||||||||
Depreciation and amortization | 114,915 | 1,166,993 | (1) | 372,425 | 1,654,333 | ||||||||||||||||
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6,061,270 | 77,970,395 | 372,425 | 84,404,090 | ||||||||||||||||||
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Operating Income (Loss) | (1,722,855 | ) | 3,970,022 | (372,425 | ) | 1,874,742 | |||||||||||||||
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Other Income (Expense): | |||||||||||||||||||||
Equity earnings on investment | (686 | ) | - | - | (686 | ) | |||||||||||||||
Miscellaneous income | 7,531 | (2,645,406 | ) | - | (2,637,875 | ) | |||||||||||||||
Interest expense | (61,626 | ) | (82,002 | ) | - | (143,628 | ) | ||||||||||||||
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(54,781) | (2,727,408 | ) | - | (2,782,189 | ) | ||||||||||||||||
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Income (Loss) Before Income Taxes and Minority Interest | (1,777,636 | ) | 1,242,614 | (372,425 | ) | (907,447 | ) | ||||||||||||||
Minority Interest In Income of Subsidiaries | (12,150 | ) | - | - | (12,150 | ) | |||||||||||||||
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Income (Loss) Before Income Taxes | (1,789,786 | ) | 1,242,614 | (372,425 | ) | (919,597 | ) | ||||||||||||||
Provision for Income Taxes | - | 53,096 | 53,096 | ||||||||||||||||||
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Net Income (Loss) | $ | (1,789,786 | ) | $ | 1,189,518 | $ | (372,425 | ) | $ | (972,693 | ) | ||||||||||
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