-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WPXTOn7A3G8wfw451qm35Ti/WQjnHTytqNtPZ9Q/yM8rlUdfLYanwy/lqPyA91qI cuYdjUv7tvw0wIsV7PkdSg== 0000944209-96-000444.txt : 19961104 0000944209-96-000444.hdr.sgml : 19961104 ACCESSION NUMBER: 0000944209-96-000444 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961030 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19961101 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: VIEW TECH INC CENTRAL INDEX KEY: 0000746210 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-ELECTRONIC PARTS & EQUIPMENT, NEC [5065] IRS NUMBER: 770312442 STATE OF INCORPORATION: CA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 033-91232 FILM NUMBER: 96652740 BUSINESS ADDRESS: STREET 1: 950 FLYNN RD STREET 2: STE F CITY: CAMARILLO STATE: CA ZIP: 93012 BUSINESS PHONE: 8054828277 8-K/A 1 FORM 8-K/A SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K/A-1 Current Report Pursuant to Section 13 or 15 (d) of The Securities Exchange Act of 1934 Date of Report: October 30, 1996 VIEW TECH, INC. (Exact name of the registrant as specified in its charter) CALIFORNIA 0-25940 77-0312442 (State or other jurisdiction (Commission (IRS Employer of Incorporation) File Number) I.D. Number) 950 FLYNN ROAD, CAMARILLO, CALIFORNIA 93012 (Address of principal executive offices) (Zip Code) (805) 482-8277 Registrant's telephone number, including area code N/A (Former name or former address, if changed from last report) ITEM 7. FINANCIAL STATEMENTS Page Number ----------- (a) Historical Financial Statements Unaudited Balance Sheet as of December 31, 1995 3 Unaudited Statement of Income for the Seven-months Ended December 31, 1995 4 Unaudited Statement of Cash Flows from May 1, 1995 to December 31, 1995 5 Notes to Unaudited Financial Statements 6 Unaudited Balance Sheet at June 30, 1996 7 Unaudited Statement of Income for the Six Months Ended June 30, 1996 8 Unaudited Statement of Cash Flows for the Six Months Ended June 30, 1996 9 (b) Unaudited Pro Forma Condensed Combined Financial Data Unaudited Pro Forma Condensed Combined Balance Sheet at June 30, 1996 10 Unaudited Pro Forma Condensed Combined Statement of Operations for the year ended June 30, 1996 11 Notes to Unaudited Pro Forma Condensed Combined Financial Statements 12 2 GROUPNET, INC. BALANCE SHEETS DECEMBER 31, 1995 UNAUDITED ASSETS Current Assets: Cash................................................................. $ 14,259 Accounts receivable (net of allowance of -0-)........................ 137,761 Inventory............................................................ 43,919 Other current assets................................................. 6,632 -------- Total Current Assets......................................... 202,571 Property and equipment, net.................................................. 54,446 Other assets................................................................. 1,921 -------- $258,938 ======== LIABILITIES AND STOCKHOLDER'S EQUITY Current Liabilities: Accounts payable..................................................... $149,214 Deferred Revenue..................................................... 10,542 Other current liabilities............................................ 11,673 -------- Total Current Liabilities.................................... 171,429 -------- Long Term Liabilities........................................................ 78,097 -------- Common Stock................................................................. 5,000 Retained earnings............................................................ 4,412 -------- Total Stockholder's Equity................................... 9,412 -------- $258,938 ========
The accompanying notes are an integral part of these financial statements. 3 GROUPNET, INC. STATEMENT OF INCOME FROM MAY 1, 1995 (INCEPTION) TO DECEMBER 31, 1995 UNAUDITED Revenues........................................................................... $391,502 Cost of revenues................................................................... 266,903 -------- Gross profit....................................................................... 124,599 -------- Selling, general and administrative expenses....................................... 120,187 -------- Net income......................................................................... $ 4,412 ========
The accompanying notes are an integral part of these financial statements. 4 GROUPNET, INC. STATEMENT OF CASH FLOWS FROM MAY 1, 1995 (INCEPTION) TO DECEMBER 31, 1995 Cash flows from operating activities Net income............................................................................. $ 4,412 Non-cash items included in net income: Depreciation................................................................... 9,819 Changes in: Accounts receivable............................................................ (136,316) Inventory...................................................................... (43,919) Other current assets........................................................... (9,998) Accounts payable and accrued expenses.......................................... 171,428 --------- Total Adjustments...................................................... (8,986) --------- Net cash used in operating activities.................................................. (4,574) --------- Cash flows from investing activities: Purchases of property and equipment.................................................... (64,265) --------- Cash flows from financing activities: Borrowings from banks and others....................................................... 81,443 Repayments of borrowings............................................................... (3,345) Proceeds from sale of common stock..................................................... 5,000 --------- Net cash provided by financing activities.............................................. 83,098 --------- Net increase in cash and cash equivalents...................................................... 14,259 Cash and cash equivalents, beginning of period................................................. 0 --------- Cash and cash equivalents, end of period....................................................... $ 14,259 =========
The accompanying notes are an integral part of these financial statements. 5 GROUPNET, INC. NOTES TO FINANCIAL STATEMENTS FROM MAY 1, 1995 (INCEPTION) TO DECEMBER 31, 1995 Unaudited NOTE 1 - BUSINESS ACTIVITIES: The Company sells, installs and services video conferencing equipment to financial markets in the New England area. The Company is organized as an S Corporation (Small Business Corporation) under the applicable laws of the Commonwealth of Massachusetts. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: CASH AND CASH EQUIVALENTS: Cash and cash equivalents consist of cash and short term investments in highly liquid instruments such as certificates of deposit and time deposits which generally mature within three months. BASIS OF ACCOUNTING: Assets and liabilities, revenues and expenses, are recognized on the accrual method of accounting. Product service contract revenue is recognized over the length of the service contract, commencing in the month of installation. The remaining revenue is recorded as deferred revenue until the revenue is recognized. INVENTORY: Inventory consists of materials and parts used in the above mentioned activities and is valued at the lower of cost (determined by the first-in, first-out method) or market. DEPRECIATION: Depreciation is computed using the straight-line method over the estimated useful life of the asset. The costs of maintenance and repairs is charged to expenses as incurred, whereas significant improvements are capitalized. ACCOUNTS RECEIVABLE: Accounts receivable are recorded at their net realizable value. No allowance for bad debts has been provided as all accounts receivable are considered collectible. NOTE 3 - NOTES PAYABLE: Notes payable consist of the following: Note Payable - AT & T Capital, $115.98 per month, interest and principal, secured by equipment $ 2,926 Note Payable - Cape Cod Bank & Trust, $575.94 per month, interest and principal, secured by motor vehicle 28,148 Note Payable - SEED Corp, $595.24 principal per month plus accrued interest, secured by assets of the stockholder 47,024 ------- TOTAL 78,098 =======
6 GROUPNET, INC. BALANCE SHEETS JUNE 30, 1996 UNAUDITED ASSETS Current Assets: Cash and cash equivalents.............................................................. $ 1,182 Accounts receivable (net allowance of $0).............................................. 450,885 Other current assets................................................................... 5,756 -------- Total Current Assets........................................................... 457,823 Property and equipment, net.................................................................... 56,436 Other assets................................................................................... 2,690 -------- $516,949 ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable....................................................................... $296,638 Note payable........................................................................... 12,500 Other current liabilities.............................................................. 93,153 -------- Total Current Liabilities...................................................... 402,291 -------- Long-Term Liabilities.......................................................................... 59,715 -------- Stockholders' Equity: Common Stock; no par value............................................................. 5,000 authorized - 200,000 shares outstanding - 10,000 shares Retained earnings...................................................................... 49,943 -------- 54,943 -------- $516,949 ========
7 GROUPNET, INC. STATEMENT OF INCOME SIX MONTHS ENDED JUNE 30, 1996 UNAUDITED Revenues........................................................................ $743,031 Cost of Revenues................................................................ 518,114 -------- Gross Profit.................................................................... 224,917 -------- Selling, general and administrative expenses.................................... 158,386 -------- Income from Operations.......................................................... 66,531 -------- Net Income...................................................................... $ 66,531 ========
8 GROUPNET, INC. STATEMENT OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 1996 UNAUDITED Cash flows from operating activities: Net income.................................................................. $ 66,531 Adjustments to reconcile net income to net cash from operating activities Depreciation and amortization....................................... 5,133 Changes in assets and liabilities: Accounts receivable................................................. (314,569) Inventory........................................................... 43,919 Other current assets................................................ 1,552 Accounts payable.................................................... 147,424 Other accrued liabilities........................................... 70,770 --------- Net cash provided by operating activities................... 20,760 --------- Cash flows from investing activity: Purchase of property and equipment.......................................... (6,954) --------- Cash flows from financing activities: Repayment of long-term debt................................................. (5,883) S Corp distributions........................................................ (21,000) --------- Net cash used by financing activities............................... (26,883) Net decrease in cash................................................................ (13,077) Cash and cash equivalents, beginning of year........................................ 14,259 --------- Cash and cash equivalents, end of period............................................ $ 1,182 ========= Supplemental disclosures: Operating activities reflect: Interest paid....................................................... $ 3,826 ========= Income taxes paid................................................... $ 0 =========
9 VIEW TECH, INC. PRO FORMA CONDENSED COMBINED BALANCE SHEET JUNE 30, 1996 (UNAUDITED)
Pro Forma Pro Forma View Tech GroupNet Adjustments Combined ---------- --------- ------------ ---------- ASSETS: Current Assets: Cash and cash equivalents $1,463,199 $ 1,182 $ (110,000) (3) $ 1,354,381 Accounts receivable, net 4,720,262 450,885 -- 5,171,147 Inventory 1,104,577 -- -- 1,104,577 Other current assets 709,671 5,756 -- 715,427 ---------- -------- ----------- ----------- Total Current Assets 7,997,709 457,823 (110,000) 8,345,532 Property and equipment, net 820,411 56,436 -- 876,847 Deferred charge - goodwill 1,325,057 (3) 1,325,057 Other assets 31,001 2,690 -- 33,691 ---------- -------- ----------- ----------- $8,849,121 $516,949 $ 1,215,057 $10,581,127 ========== ======== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY: Current Liabilities: Accounts payable $3,254,527 $296,638 $ -- $3,551,165 Notes payable -- 12,500 220,000 (3) 232,500 Other current liabilities 501,406 93,153 -- 594,559 ---------- -------- ---------- ---------- Total Current Liabilities 3,755,933 402,291 220,000 4,378,224 ---------- -------- ---------- ---------- Long-term liabilities 242,283 59,715 -- 301,998 ---------- -------- ---------- ---------- Stockholders' Equity: Common stock, par value $.01 28,902 5,000 (3,500) (2)(3) 30,402 Paid-in capital 5,253,234 -- 1,048,500 (2)(3) 6,301,734 Shareholder distributions -- (21,000) 21,000 (2) -- Retained earnings, (deficit) (431,231) 70,943 (70,943) (2) (431,231) ---------- -------- ---------- ----------- 4,850,905 54,943 995,057 5,900,905 ---------- -------- ---------- ----------- $8,849,121 $516,949 $1,215,057 $10,581,127 ========== ======== ========== ===========
See notes to pro forma condensed combined financial statements. 10 VIEW TECH, INC. PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS (UNAUDITED)
Year Ended June 30, 1996(1) --------------------------------------- Pro Forma View Tech GroupNet Adjustments Combined --------- -------- ----------- -------- Revenues $13,346,103 $1,134,533 $ -- $14,480,636 Cost of Revenues 9,042,922 783,707 -- 9,826,629 ----------- ---------- ----------- Gross Profit 4,303,181 350,826 -- 4,654,007 ----------- ---------- ----------- ----------- Operating Expenses: Selling expenses 1,706,626 167,770 88,337 (3) 1,874,396 General and administrative expenses 3,491,509 106,955 -- 3,686,801 ----------- ---------- ----------- ----------- Income (Loss) from Operations (894,954) 76,101 88,337 (907,190) Other Income (153,222) -- -- (153,222) ----------- ---------- ----------- ----------- Income (Loss) Before Income Taxes (1,048,176) 76,101 88,337 1,060,412 Provision for Income Taxes (5) 352,116 (30,440) 35,335 (3) 357,010 ----------- ---------- ----------- ----------- Net Income (Loss) $ (696,060) $ 45,661 53,002 $ (703,402) =========== ========== =========== =========== Earnings (Loss) Per Share $ (0.24) $ (0.23) =========== =========== Weighted Average Shares Outstanding (4) 2,870,242 3,020,242 =========== ===========
See notes to pro forma condensed combined financial statements. 11 VIEW TECH, INC. NOTES TO PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED) 1. FISCAL PERIODS The pro forma data presented herein is derived from the audited balance sheet and statement of operations of View Tech as of June 30, 1996 and for the year then ended, and the unaudited balance sheet and statement of operations of GroupNet, Inc. ("GroupNet") as of June 30, 1996 and for the recasted twelve months ended June 30, 1996 to conform to View Tech's year end. GroupNet's actual year end is December 31. View Tech acquired GroupNet, effective August 30, 1996 and completed the transaction on September 27, 1996. The acquisition was accounted for by View Tech utilizing purchase accounting. 2. STOCKHOLDERS' EQUITY The proforma adjustments to common stock, paid in capital and shareholder distributions as of June 30, 1996 reflect the elimination of equity accounts for GroupNet as a result of applying purchase accounting and issuance of 150,000 shares of View Tech common stock valued at $7.00 in connection with the acquisition. 3. ACQUSITION PRICE AND GOODWILL The pro forma adjustments shown in the accompanying balance sheet and statement of operations as of June 30, 1996 and for the year then ended include the effects of the following: (a) the issuance of 150,000 shares of View Tech common stock valued at $7.00 per share, or $1,050,000, payment of $110,000 in cash and the issuance of a promissory note for $220,000 for the net assets of GroupNet, (b) the recording of goodwill of $1,325,057 and (c) the amortization of goodwill of $88,337 and the tax effect of such amortization for the year ended June 30, 1996. The total goodwill recognized of $1,325,057 resulting from the acquisition of GroupNet will be amortized on a straight line basis over 15 years. 4. WEIGHTED AVERAGE SHARES OUTSTANDING The weighted average number of shares shown in the statement of operations for the fiscal year ended June 30, 1996 includes the actual weighted average shares outstanding for View Tech as of June 30, 1996 and the 150,000 shares of View Tech common stock issued in connection with the acquisition of GroupNet. 5. INCOME TAXES GroupNet was an S Corporation and as such GroupNet was generally not subject to federal income taxes. Instead the sole stockholder was taxed on his respective share of GroupNet income at the stockholders individual federal and state income tax rates. Accordingly, there was no provision for federal income taxes recorded by GroupNet for the twelve months ended June 30, 1996. The operating results for the twelve months ended June 30, 1996 includes a pro forma provision for income taxes to reflect income taxes as if GroupNet has been taxed as a C corporation during such period, assuming an effective combined rate of 40%. 12 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 duly authorized. VIEW TECH, INC. BY: /s/ William M. McKay ------------------------------------------ William M. McKay Chief Financial Officer 13 -----END PRIVACY-ENHANCED MESSAGE-----