-----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, DNUu/n3PJpqQPdR56vSRV3YJaM60QUqudoET541FlDSOjiywKIVCQEKKHd5TjkxG 7YDrRPX/XnjtzYK8KXqGAw== 0000891554-98-000561.txt : 19980512 0000891554-98-000561.hdr.sgml : 19980512 ACCESSION NUMBER: 0000891554-98-000561 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980226 ITEM INFORMATION: FILED AS OF DATE: 19980511 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: US HOME & GARDEN INC CENTRAL INDEX KEY: 0000879911 STANDARD INDUSTRIAL CLASSIFICATION: TEXTILE MILL PRODUCTS [2200] IRS NUMBER: 770262908 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 001-14015 FILM NUMBER: 98615788 BUSINESS ADDRESS: STREET 1: 655 MONTGOMERY ST STE 830 CITY: SAN FRANCISCO STATE: CA ZIP: 94111 BUSINESS PHONE: 4156168111 MAIL ADDRESS: STREET 1: 655 MONTGOMERY ST STREET 2: SUITE 830 CITY: SAN FRANCISCO STATE: CA ZIP: 94111 FORMER COMPANY: FORMER CONFORMED NAME: NATURAL EARTH TECHNOLOGIES INC DATE OF NAME CHANGE: 19930328 8-K/A 1 AMENDMENT NO. 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------- FORM 8-K/A (AMENDMENT NO. 1) CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of Earliest Event Reported): February 26, 1998 U.S. HOME & GARDEN INC. (Exact name of registrant as specified in its charter) DELAWARE 0-19899 77-0262908 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 655 Montgomery Street, Suite 500, San Francisco, California 94111 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (415) 616-8111 - -------------------------------------------------------------------------------- Former name or former address, if changed since last report Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (a) Financial Statements of Business Acquired WEED WIZARD, INC. Financial Page No. ------------------ Report of Independent Auditors F-1 Balance Sheet F-2-3 as of December 31, 1997 Statement of Income for the year F-4 ended December 31, 1997 Statement of Stockholders' Equity for the F-5 year ended December 31, 1997 Statement of Cash Flows for F-6 the year ended December 31, 1997. Summary of Accounting Policies F-7-8 Notes to Financial Statements F-9-12 (b) Pro forma financial information. ACQUISITION OF WEED WIZARD, INC. Introduction PF-1 Pro forma condensed consolidated balance sheet - December 31, 1997 PF-2 Pro forma condensed consolidated statements of operations for the six months ended December 31, 1997 PF-3 Pro forma consensed consolidated statements of operations for the year ended June 30, 1997 PF-4-5 Notes to pro forma condensed consolidated financial statements PF-6 (c) Exhibits Exhibit 23 Consent of BDO Seidman, LLP -2- Report of Independent Certified Public Accountants To the Board of Directors and the Shareholders of Weed Wizard, Inc. and U.S. Home & Garden Inc. We have audited the accompanying balance sheet of Weed Wizard, Inc. as of December 31, 1997, and the related statements of income, stockholders' equity, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Weed Wizard, Inc. at December 31, 1997 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. /s/ BDO SEIDMAN, LLP BDO SEIDMAN, LLP San Francisco, California April 24,1998 F-1 Weed Wizard, Inc. Balance Sheet ================================================================================ December 31, 1997 - -------------------------------------------------------------------------------- Assets Current Cash $ 97,410 Accounts receivable, less allowance for doubtful accounts and sales returns of $53,000 (Notes 2 and 6) 173,034 Inventories (Notes 1 and 2) 4,576,767 Prepaid expenses and other current assets 238,022 - -------------------------------------------------------------------------------- Total Current Assets 5,085,233 Property and Equipment Machinery and equipment 949,011 Computers 84,371 Automotive equipment 80,408 Office furniture and fixtures 52,410 Leasehold improvements 36,800 - -------------------------------------------------------------------------------- 1,203,000 Less accumulated depreciation 550,664 - -------------------------------------------------------------------------------- 652,336 Other Assets 2,319 - -------------------------------------------------------------------------------- $5,739,888 ================================================================================ See accompanying summary of accounting policies and notes to financial statements. F-2 Weed Wizard, Inc. Balance Sheet ================================================================================ December 31, 1997 - -------------------------------------------------------------------------------- Liabilities and Stockholders' Equity Current Line of credit (Notes 2 and 8) $ 247,182 Current maturities of notes payable (Notes 3 and 8) 269,114 Notes payable to stockholders (Notes 4 and 8) 1,959,262 Accounts payable 91,979 Accrued expenses 95,812 Customer deposits 159,118 - -------------------------------------------------------------------------------- Total Current Liabilities 2,822,467 Notes Payable, less current maturities (Notes 3 and 8) 1,502,913 - -------------------------------------------------------------------------------- Total Liabilities 4,325,380 - -------------------------------------------------------------------------------- Commitments, Contingencies and Subsequent Event (Notes 2, 5 and 8) Stockholders' Equity Common stock; 1,000,000 shares authorized, 2,000 shares issued and outstanding 600 Paid-in capital 1,065,003 Retained earnings 348,905 - -------------------------------------------------------------------------------- Total Stockholders' Equity 1,414,508 - -------------------------------------------------------------------------------- $5,739,888 ================================================================================ See accompanying summary of accounting policies and notes to financial statements. F-3 Weed Wizard, Inc. Statement of Income ================================================================================ Year ended December 31, 1997 - -------------------------------------------------------------------------------- Net Sales (Note 6) $ 7,073,995 Cost of Sales 2,603,354 - -------------------------------------------------------------------------------- Gross Profit 4,470,641 - -------------------------------------------------------------------------------- Operating Expenses Selling and shipping 1,475,270 General and administrative 1,655,219 - -------------------------------------------------------------------------------- 3,130,489 - -------------------------------------------------------------------------------- Income from Operations 1,340,152 Other Income (Expense) Interest expense (351,374) Other 8,606 - -------------------------------------------------------------------------------- Net Income $ 997,384 ================================================================================ See accompanying summary of accounting policies and notes to financial statements. F-4 Weed Wizard, Inc. Statement of Stockholders' Equity ================================================================================
Common Stock Retained Total ------------------ Paid-In Earnings Stockholders' Shares Amount Capital (Deficit) Equity - -------------------------------------------------------------------------------------------------------------- Balance, January 1, 1997 2,000 $ 600 $ 35,400 $ (13,431) $ 22,569 Conversion of debt to paid-in capital (Note 7) -- -- 1,029,603 -- 1,029,603 Distributions -- -- -- (635,048) (635,048) Net income -- -- -- 997,384 997,384 - -------------------------------------------------------------------------------------------------------------- Balance, December 31, 1997 2,000 $ 600 $ 1,065,003 $ 348,905 $ 1,414,508 - --------------------------------------------------------------------------------------------------------------
See accompanying summary of accounting policies and notes to financial statements. F-5 Weed Wizard, Inc. Statement of Cash Flows ================================================================================ Increase (Decrease) in Cash Year ended December 31, 1997 - --------------------------------------------------------------------------------
Cash Flows from Operating Activities Net income $ 997,384 Adjustments to reconcile net income to net cash used in operating activities: Provision for possible losses on accounts receivable 53,000 Depreciation and amortization 291,330 Loss on disposal of assets 2,585 Changes in operating asset and liabilities: Accounts receivable (550,030) Inventories (593,747) Prepaid expenses and other current assets 217,069 Accounts payable (291,170) Accrued expenses (59,302) Customer deposits (706,322) Other assets 160 - ------------------------------------------------------------------------------------------------ Net Cash Used in Operating Activities (639,043) - ------------------------------------------------------------------------------------------------ Cash Flows from Investing Activities Acquisition of property and equipment (233,675) Proceeds from sale of property and equipment 63,175 - ------------------------------------------------------------------------------------------------ Net Cash Used in Investing Activities (170,500) - ------------------------------------------------------------------------------------------------ Cash Flows from Financing Activities Net borrowings under line of credit 247,182 Proceeds from notes payable 1,651,132 Payments of notes payable (2,703,146) Proceeds from notes payable to stockholders 1,959,262 Distributions (635,048) - ------------------------------------------------------------------------------------------------ Net Cash Provided by Financing Activities 519,382 - ------------------------------------------------------------------------------------------------ Net decrease in cash (290,161) Cash, beginning of year 387,571 - ------------------------------------------------------------------------------------------------ Cash, end of year $ 97,410 ================================================================================================
See accompanying summary of accounting policies and notes to financial statements. F-6 Weed Wizard, Inc. Summary of Accounting Policies ================================================================================ Nature of Business Weed Wizard, Inc. (the "Company") is a manufacturer and marketer of lawn and garden care accessories, principally consisting of lawn trimmer head systems. The Company primarily sells its products throughout North America. Inventories Inventories, which consist of raw materials, packing materials and finished goods are stated at the lower of cost or market; cost is determined by the first-in, first-out (FIFO) cost method. Property, Equipment and Property and equipment are stated at cost. Depreciation Depreciation is computed using an accelerated method over the estimated three to seven year useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or their estimated useful life. Maintenance and repairs are expensed as incurred and improvements are capitalized. Revenue Recognition Sales are recorded as products are shipped to customers. Income Taxes The Company is an S Corporation for Federal and State income tax purposes. As an S Corporation, the Company's corporate taxable income or loss, tax credits and various deductions pass through to the individual income tax returns of the stockholders. The states in which the Company operates generally recognize Federal S Corporation provisions. As a result, no Federal or State income tax is imposed on the Company. The net difference between the tax and book bases of the Company's assets and liabilities at December 31, 1997 consists principally of an inventory uniform capitalization tax adjustment totaling approximately $329,000. Advertising Costs The Company expenses advertising costs as they are incurred. During the year ended December 31, 1997, advertising expense was $1,054,014. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. F-7 Weed Wizard, Inc. Summary of Accounting Policies ================================================================================ Financial Instruments The Company's financial instruments consist of cash, accounts receivable and debt. The carrying value of cash and accounts receivable approximate fair value based upon the liquidity and short-term nature of the assets. The carrying value of short-term and long-term debt approximates the fair value based upon short-term and long-term borrowings at market rate interest. Cash is held principally at two high quality financial institutions. At times, such balances may be in excess of the FDIC insurance limit. Long-Lived Assets Long-lived assets are evaluated for possible impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable, or whenever management has committed to a plan to dispose of the assets. Such assets are carried at the lower of book value or fair value as estimated by management based on appraisals, current market value, and comparable sales value, as appropriate. Assets to be held and used affected by such impairment loss are depreciated at their new carrying amount over the remaining estimated life, assets to be paid or otherwise disposed of are not subject to further depreciation. In determining whether an impairment exists, the Company uses undiscounted future cash flows compared to the carrying value of the asset. F-8 Weed Wizard, Inc. Notes to Financial Statements ================================================================================ 1. Inventories Inventories at December 31, 1997 consist of: --------------------------------------------------- Raw materials $1,697,208 Packaging materials 225,388 Finished goods 2,654,171 --------------------------------------------------- $4,576,767 ==================================================== 2. Line of Credit The Company has a revolving line of credit with a financial institution providing for maximum advances of $321,000. Interest on advances is calculated at the bank's prime rate (8.5% at December 31, 1997). Borrowings are collateralized by eligible accounts receivable and inventory. As of December 31, 1997, the Company had outstanding borrowings of $247,182. In January 1998, the credit agreement expired and the outstanding balance on the line was repaid in full. 3. Notes Payable Notes payable consist of the following at December 31, 1997: -------------------------------------------------- Note payable, interest at bank's prime rate, collateralized by real estate owned by certain stockholders, monthly principal payments of $9,973, plus interest, commencing October 1997 until September 2000, at which time unpaid principal and accrued interest is due in full. $ 656,753 Note payable, interest at bank's prime rate, collateralized by real estate owned by certain stockholders, payable in three annual installments of $51,483, plus interest, commencing November 1997, with the remaining unpaid balance due October 1999. 652,491 F-9 Weed Wizard, Inc. Notes to Financial Statements ================================================================================ Note payable, interest at bank's prime rate, collateralized by real estate owned by certain stockholders, monthly principal payments of $7,230, plus interest, through September 2000, at which time all unpaid principal and accrued interest is due in full. $ 340,855 Note payable, interest at 10.5%, collateralized by an insurance premium contract, monthly principal payments of $22,806, plus interest, through April 1998. 89,209 Note payable, interest at bank's prime rate, collateralized by real estate owned by certain stockholders and equipment, monthly principal payments of $416, plus interest, commencing September 1997 through August 2000, at which time all unpaid principal and accrued interest is due in full. 32,719 The bank's prime interest rate was 8.5% at December 31, 1997. -------------------------------------------------- 1,772,027 Less current portion 269,114 -------------------------------------------------- $ 1,502,913 =================================================== Future minimum principal payments are as follows: Year ending December 31, Amount -------------------------------------------------- 1998 $ 269,114 1999 693,273 2000 809,640 -------------------------------------------------- $ 1,772,027 ================================================== F-10 4. Notes Payable to Notes payable to stockholders consist of the Stockholders following at December 31, 1997: -------------------------------------------------- Note payable, unsecured, interest at prime rate plus .25% (8.75% at December 31, 1997), with principal and unpaid accrued interest due December 1998. $ 966,762 Note payable, unsecured, interest at 10.5%, with principal and unpaid accrued interest due upon demand. 450,000 Note payable, unsecured, interest at 8.5%, with principal and unpaid accrued interest due upon demand. 299,000 Note payable, unsecured, interest at 8.5%, with principal and unpaid accrued interest due upon demand. 243,500 -------------------------------------------------- $ 1,959,262 ================================================== 5. Commitment and Related Party Operating Lease Contingencies The Company leases its office and plant facilities from the Company's stockholders. The lease requires the Company to pay real estate taxes, insurance, maintenance and utilities. The lease expires in March 2001. The future minimum payments under the operating lease are as follows: Year ending December 31, Amount -------------------------------------------------- 1998 $ 189,750 1999 189,750 2000 189,750 2001 47,438 -------------------------------------------------- $ 616,688 ================================================== Rent expense was $189,750 for the year ended December 31, 1997. F-11 Product Liability The Company is subject to various lawsuits and claims with respect to product liabilities arising out of the normal course of business. While the effect on future financial results is not subject to reasonable estimation because uncertainty exists, in the opinion of the Company's management, the ultimate liabilities resulting from such lawsuits and claims will not materially affect the financial position of the Company based upon current levels of insurance coverage. 6. Concentration of Trade accounts receivable are due primarily from Credit Risk and numerous customers located in many geographic Significant Customers regions throughout the United States. The Company performs ongoing credit evaluations of its customers' financial conditions and establishes an allowance for doubtful accounts based upon the credit risk of specific customers, historical trends and other information. The Company does not require collateral from its customers. During the year ended December 31, 1997, sales to three customers accounted for approximately 15%, 14% and 10% of total gross sales. 7. Supplemental Cash Flow During the year ended December 31, 1997, cash paid Information for interest was $336,628. Supplemental schedule of noncash financing activities: During 1997, the Company converted a note payable to stockholders totaling $1,029,603 into paid in capital. 8. Subsequent Event In February 1998, U.S. Home & Garden Inc. acquired all of the assets of the Company for approximately $16 million, of which approximately $5 million was based on the value of certain net assets of the Company. In connection with the sale of the Company's assets, all of the outstanding notes payable to banks and stockholders were repaid in full. F-12 U.S. Home & Garden Inc. and Subsidiaries Pro Forma Condensed Consolidated Financial (Unaudited) ================================================================================ On February 25, 1998, Weed Wizard Acquisition Corporation, a wholly-owned subsidiary of U.S. Home & Garden Inc. (the "Company") acquired all of the assets and assumed certain liabilities of Weed Wizard, Inc. (Weed Wizard), a lawn and garden care company, for $14 million plus the acquired company's net current assets in excess of $3 million. For purposes of these pro forma financial statements, this amount is estimated at $2.3 million. The Company satisfied the purchase price by increasing its bank borrowings. The acquisition was accounted for as a purchase, with the assets acquired and liabilities assumed recorded at fair values. The results of Weed Wizard's operations will be included in the Company's consolidated financial statements from the date of acquisition. The accompanying condensed pro forma consolidated financial statements illustrate the effect of the acquisition on the Company's financial position at December 31, 1997 and the results of operations for the year ended June 30, 1997 and six months ended December 31, 1997, as if the acquisition had taken place on December 31, 1997 with respect to the balance sheet and July 1, 1996 and 1997 with respect to the statements of operations. The pro forma condensed consolidated results of operations may not be indicative of the actual result which would have been contained if the acquisition had occurred on July 1, 1996. PF-1 U.S. Home & Garden Inc. and Subsidiaries Pro Forma Condensed Consolidated Balance Sheet December 31, 1997 (Dollars in thousands) ================================================================================
U.S. Home Weed & Garden Wizard Adjustments Pro Forma - ---------------------------------------------------------------------------------------- Assets Current Cash $ 12,734 $ 97 $ -- $ 12,831 Accounts receivable, net 7,533 173 -- 7,706 Inventories 7,673 4,577 -- 12,250 Prepaid and other current assets 1,753 238 -- 1,991 - ---------------------------------------------------------------------------------------- Total Current Assets 29,693 5,085 -- 34,778 Furniture, Fixtures and Equipment, net 2,401 652 -- 3,053 Intangibles Excess of cost over net assets, net 41,010 -- 11,229(A) 52,239 Other intangibles 2,464 -- 115(A) 2,579 Other Assets 2,068 3 -- 2,071 - ---------------------------------------------------------------------------------------- $ 77,636 $ 5,740 $ 11,344 $ 94,720 - ---------------------------------------------------------------------------------------- Liabilities and Equity Current Line of credit $ 2,246 $ 247 $ (247)(A) $ 2,246 Current maturities of notes payable 3,840 2,229 (2,229)(A) 3,840 Accounts payable 2,974 92 -- 3,066 Accrued expenses 4,880 255 -- 5,135 - ---------------------------------------------------------------------------------------- Total Current Liabilities 13,940 2,823 (2,476) 14,287 Notes Payables 16,430 1,503 15,234(A) 33,167 Other Liabilities 650 -- -- 650 Stockholders' Equity 46,616 1,414 (1,414)(A) 46,616 - ---------------------------------------------------------------------------------------- $ 77,636 $ 5,740 $ 11,344 $ 94,720 ========================================================================================
PF-2 U.S. Home & Garden Inc. and Subsidiaries Pro Forma Condensed Consolidated Statement of Operations Six Months ended December 31, 1997 (Dollars in thousands) ================================================================================
U.S. Home & Weed Garden Wizard Adjustments Pro Forma - --------------------------------------------------------------------------------------------------------------- Net Sales $ 15,538 $ 953 $ -- $ 16,491 Cost of Sales 7,379 726 -- 8,105 - --------------------------------------------------------------------------------------------------------------- Gross Profit 8,159 227 -- 8,386 Operating Expenses Selling and shipping 4,661 507 -- 5,168 General administrative 3,891 840 187(1) 4,918 - --------------------------------------------------------------------------------------------------------------- Loss from Operations (393) (1,120) (187) (1,700) Interest Expense, net (1,493) (160) (606)(2) (2,259) - --------------------------------------------------------------------------------------------------------------- Loss before Income Tax (1,886) (1,280) (793) (3,959) Income Tax Benefit 800 -- 882(3) 1,682 - --------------------------------------------------------------------------------------------------------------- Net Loss $ (1,086) $ (1,280) $ 89 $ (2,277) - --------------------------------------------------------------------------------------------------------------- Basic and Diluted Loss per Common Share $ (0.07) $ (.15) - --------------------------------------------------------------------------------------------------------------- Weighted Average Common and Common Equivalent Shares Outstanding 15,552,000 15,552,000 ===============================================================================================================
PF-3 U.S. Home & Garden Inc. and Subsidiaries Pro Forma Condensed Consolidated Statement of Operations Year ended June 30, 1997 (Dollars in thousands) ================================================================================
U.S. Home & Weed Garden Wizard Adjustments Pro Forma - ------------------------------------------------------------------------------------------------------- Net Sales $ 52,046 $ 5,347 $ -- $ 57,393 Cost of Sales 23,649 2,956 -- 26,605 - ------------------------------------------------------------------------------------------------------- Gross Profit 28,397 2,391 -- 30,788 Operating Expenses Selling and shipping 11,232 1,368 -- 12,600 General administrative 6,513 1,414 374(1) 8,301 - ------------------------------------------------------------------------------------------------------- Income (Loss) from Operations 10,652 (391) (374) 9,887 Interest Expense, net (3,262) (342) (1,164)(2) (4,768) - ------------------------------------------------------------------------------------------------------- Income (Loss) before Income Tax 7,390 (733) (1,538) 5,119 Income Tax Benefit (Expense) (3,200) -- 1,000(3) (2,200) - ------------------------------------------------------------------------------------------------------- Income (Loss) before Extraordinary Expense 4,190 (733) (538) 2,919 Extraordinary Expense, net of tax benefit (1,007) -- -- (1,007) - ------------------------------------------------------------------------------------------------------- Net Income (Loss) $ 3,183 $ (733) $ (538) $ 1,912 - ------------------------------------------------------------------------------------------------------- Basic Earnings per Share Income per common before extraordinary expense $ .31 -- -- $ .22 Extraordinary expense (.08) -- -- (.08) - ------------------------------------------------------------------------------------------------------- Net income per common share $ .23 -- -- $ .14 - ------------------------------------------------------------------------------------------------------- Diluted Earnings per Share Income per common before extraordinary expense $ .26 -- -- $ .18 Extraordinary expense (.06) -- -- (.06) - ------------------------------------------------------------------------------------------------------- Net income per common share $ .20 -- -- $ .12 - -------------------------------------------------------------------------------------------------------
PF-4 U.S. Home & Garden Inc. and Subsidiaries Pro Forma Condensed Consolidated Statement of Operations Year ended June 30, 1997 (Dollars in thousands) ================================================================================ Basic Weighted Average Common Shares Outstanding 13,695,000 Options and Warrants 2,373,000 - ------------------------------------------------------------------ Diluted Weighted Average Common Shares Outstanding 16,068,000 ================================================================== PF-5 U.S. Home & Garden Inc. and Subsidiaries Notes to Pro Forma Condensed Consolidated Financial Statements (Unaudited) ================================================================================ 1. Note A-Basis of Reference is made to the introduction at page PF-1. Presentation 2. Note B-Pro Forma The pro forma adjustments to the condensed Adjustments consolidated balance sheet are as follows: (A) To reflect the acquisition of Weed Wizard and the allocation of purchase price on the basis of fair values of the assets acquired and the liabilities assumed. The components of purchase price and its allocation of assets and liabilities of Weed Wizard are as follows: Components of Purchase Price (000's): --------------------------------------------------------------------- Promissory notes associated with the acquisition $16,300 --------------------------------------------------------------------- Total purchase price 16,300 Allocation of purchase price: Adjusted shareholders' equity of Weed Wizard (1,414) Liabilities not assumed (3,730) Other adjustments 73 --------------------------------------------------------------------- Cost in excess of net assets acquired $11,229 =====================================================================
The pro forma adjustments to the condensed consolidated statement of operations are as follows: (1) Amortization of excess of cost over fair value of net assets acquired over 30 years. (2) Interest expense has been adjusted to reflect the notes payable incurred in connection with the acquisition and the payoff of Weed Wizard's notes payable. (3) Income taxes (benefits) have been adjusted to reflect the Company's statutory tax rates. PF-6 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this amended report to be signed on its behalf by the undersigned thereunto duly authorized. U.S. HOME & GARDEN INC. By: /s/ Richard J. Raleigh ----------------------------------- Richard J. Raleigh, Chief Operating Officer Date: May 8, 1998 EX-23 2 CONSENT: INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Exhibit 23 CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS U.S. Home & Garden Inc. San Francisco, California As independent certified public accountants, we hereby consent to the incorporation of our report included in this Form 8-K/A, into U.S. Home & Garden Inc.'s previously filed Registration Statements Nos. 33-82758, 33-89800, 33-94924 and 333-21667 on Form S-3 and Nos. 33-55020, 33-71978 and 333-44459 on Form S-8. /s/ BDO Seidman, LLP BDO SEIDMAN, LLP San Francisco, California May 11, 1998 -----END PRIVACY-ENHANCED MESSAGE-----