8-K 1 cci8k.txt 8-K FILING FR THE SALE OF ASSETS UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 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): DECEMBER 31, 2002 The Classica Group, Inc. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) NEW YORK 0-19721 13-3413467 (STATE OR JURISDICTION (COMMISSION (IRS EMPLOYER OF INCORPORATION) FILE NUMBER) IDENTIFICATION NO.) 1835 SWARTHMORE AVE, LAKEWOOD, NEW JERSEY 08701 (Address of principal executive offices) (zip code) Registrant's telephone number, including area code: (732) 363-3800 Item 2. ACQUISITION OR DISPOSITION OF ASSETS a. On December 31, 2002 ("the closing date"), The Classica Group, Inc.'s wholly owned subsidiary Cucina Classica Italiana, Inc. ("CCI") divested its Galbani(R) brand cheese and meat products importing and distribution business segment to Atalanta Corporation, a New York Corporation with offices at Atalanta Plaza, Elizabeth, New Jersey 07206 ("Atalanta"). CCI previously sold its domestic grated, shredded and dry cheese processing and distribution business segment to Tipico Products Company, Inc. ("Tipico"), an affiliate of Atalanta. The nature and amount of the consideration received was: Cash $ 980,394.88 Assumption by Atalanta of a portion of the Trade Account Payable due to S.p.A. Egidio Galbani from CCI 300,000.00 -------------- Total Consideration $ 1,280,394.88 ============== The amount of the consideration was determined through arms length negotiations between the parties. There was no material relationship between Atalanta, Tipico, and The Classica Group, Inc. or any of its affiliates, any director or officer of The Classica Group, Inc., or any associate of any such director or officer. Item 7. FINANCIAL STATEMENTS AND EXHIBITS b. Pro Forma Financial Information. THE CLASSICA GROUP, INC. AND SUBSIDIARIES Pro Forma Consolidated Balance Sheet (Unaudited) September 30, 2002 ASSETS ------------ Current Assets: Cash and cash equivalents $ 361,208 Accounts receivable 7,148 Inventories 252,039 Prepaid expenses and other current assets 88,959 ------------- Total current assets 709,354 Property and equipment, net 447,731 Intangible assets, net 1,448,840 Other assets 38,857 ------------- TOTAL ASSETS $ 2,644,782 ============= LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Current Liabilities: Accounts payable $ 243,534 Accrued expenses 14,107 ------------- Total current liabilities 257,641 ------------- STOCKHOLDERS' EQUITY Preferred stock Class A participating convertible preferred shares, $1 par value, stated at liquidation value, authorized 200 shares of which 16.5 shares are issued and outstanding. 397,898 Common stock Par value $.001 - 25,000,000 shares authorized, 3,816,594 issued and outstanding 3,816 Additional paid-in-capital 4,772,162 Accumulated deficit (2,786,735) ------------- Total Stockholders' Equity 2,387,141 ------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,644,782 ============= All of the assets and liabilities of Cucina Classica Italiana, Inc. have been removed from this pro forma statement. THE CLASSICA GROUP, INC. AND SUBSIDIARIES Pro Forma Consolidating Statement of Operations For the Nine Month Period Ended September 30, 2002 (Unaudited) (See footnote below) Consolidated Cucina Classica The September 30, Classica Microwave Classica 2002 Italiana Technologies Group --------------------------------------------------------------- Net revenue $ 42,487 $ - $ 30,114 $ 12,373 Cost of sales - - - --------------------------------------------------------------- Gross profit 42,487 - 30,114 12,373 Selling, general and administrative expenses 978,169 - 444,834 533,335 --------------------------------------------------------------- Income (loss) from operations (935,682) - (414,720) (520,962) Interest expense-net - - - - --------------------------------------------------------------- Net loss (935,682) $ - $ (414,720) $ (520,962) =============================================================== All of the activites of Cucina Classica Italiana, Inc. have been removed from this pro forma statement. $60,000 of on-going Parent Company costs that were allocated to the subsidiary have been reallocated to Selling, General, and Administrative Expenses of the Parent Company. THE CLASSICA GROUP, INC. AND SUBSIDIARIES Pro Forma Consolidating Statement of Operations For the Year Ended December 31, 2001 (Unaudited) (See footnote below) Consolidated Cucina Classica The September 30, Classica Microwave Classica 2002 Italiana Technologies Group --------------------------------------------------------------- Net revenue $ 38,382 $ - $ 443 $ 37,939 Cost of sales - - - - --------------------------------------------------------------- Gross profit 38,382 - 443 37,939 Selling, general and administrative expenses 632,284 - 118,693 513,591 --------------------------------------------------------------- Income (loss) from operations (593,902) - (118,250) (475,652) Interest expense-net - - - - --------------------------------------------------------------- Income (loss) continuing operations (593,902) $ - $ (118,250) $ (475,652) ================================================= Discontinued Operations Loss from operation of business segment (179,074) Loss from disposal of business segment (728,494) -------------- Net loss $ (1,501,470) ============== All of the activites of Cucina Classica Italiana, Inc. have been removed from this pro forma statement. $80,000 of on-going Parent Company costs that were allocated to the subsidiary have been reallocated to Selling, General, and Administrative Expenses of the Parent Company. c. Exhibits Exhibit 10.1 Agreement with Atalanta for the sale of the import cheese business. Exhibit 10.2 Agreement with Tipico for the sale of the domestic cheese business. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf the undersigned thereunto duly authorized THE CLASSICA GROUP, INC. -------------------- (Registrant) Date: JANUARY 9, 2003 By:/s/ Scott G. Halperin --------------------- Scott G. Halperin Chairman and Chief Executive Officer JANUARY 9, 2003 By:/s/ Bernard F. Lillis, Jr. --------------------------- Bernard F. Lillis, Jr. Chief Financial Officer and Chief Administrative Officer