UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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) February 13, 2013
GDT TEK, Inc.
(Exact name of registrant as specified in its chapter)
Florida (State or other jurisdiction of incorporation |
000-20259 (Commission File Number) |
27-0318532 (IRS Employer Identification No.) |
8110 Ulmerton Ave. Largo, Florida (Address of principal executive offices) |
32803 (Zip Code) |
(407) 574-4740
Registrant's telephone number, including area code
__________________________________________
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 8.01 – Other Events
On February 13, 2013 the Company entered into an agreement in principal to purchase one hundred percent (100%) of a certain business that supplies electricity to the grid from electrical generators that burn methane gas. The methane gas is the byproduct of the landfill that the business is located on. The landfill operation is located in the northern part of the United States near the Great Lakes. The agreement attached along with business financials requires a payment of $8,950,000 to be paid to the current owners of the business which is to be completed within 120 days from the date the agreement was signed.
Item 9.01 – Financial Statements and Exhibits
(d) Exhibits.
99.1 Form of Purchase Agreement
99.2 Financial information
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 thereunto duly authorized.
Dated: February 15, 2013 | GDT TEK , INC. |
/s/Bo Linton | |
By: Bo Linton | |
Its: President and Chief Financial Officer (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer) |
Exhibigt 99.1
REVISED AS PER AGREEMENT
February 13, 2013
February 6, 2013
Dear Mr. Linton:
Regarding: Counteroffer
Herein is contained a counteroffer to your offer to purchase dated February 4, 2013. We agree in principal to the greater part of your offer with some exceptions. The Sale is for all of the stock of the entities that make up Fiber Recovery Inc.
Those exceptions to your offer are noted in italics.
1. | Purchase Price $8,950,000 cash which pays off all existing debt. |
2. | The amount of the assets listed under Current Assets presently totaling at $424,205 will be added to the purchase price listed above but that same amount will be paid back in cash to the buyer at closing, resulting in no net change in the actual Purchase Price, but removing that item from the balance sheet. |
3. | Verification that the gross revenues of approximately $2 million per year. |
4. | Verification that the Cost of Goods Sold approximately $650,000 per year. |
5. | Verification that the Expense are approximately $390,000 per year, with Salt Lake Office cost removed, which includes interest payment on the current secured debt. |
6. | All contracts and permits are to be verified. |
7. | All books and records are to be verified. |
8. | All accounting and financial records are to be audited at buyers expense. |
9. | Confirm that all corporate taxes both state and federal are filed for all companies that are part of this transaction, i.e.; |
a. | 2009, 2010 and 2011 business tax returns. |
b. | 2009, 2010 and 2011 P&L and Balance Sheet. |
c. | 2012 P&L and Balance Sheet. |
d. | 2011 October P&L and Balance Sheet. |
10. | Conditions to close: |
a. | Verification of Accounts Payable and Accounts Receivable. |
b. | Verification that all employees payrolls are current. |
c. | Review of all employee contracts with current staff. |
d. | Physical inspection of facilities by buyer and or his agent. |
e. | Seller agrees to train GDT TDK's representatives the operation of the business for at least two months after closing. |
11. | It is understood, between the parties, that Fiber Recovery Inc. is currently undertaking an expansion of its drying operation. Consequently timing of this transaction contained herein is critical. If as a result of decisions made as part of that expansion the parties are not in agreement, either party may terminate this Letter of Intent with a ten-day notice. |
12. | Escrow Period |
a. | Close within 120 days or sooner from the date of the signing this agreement unless mutually extended by buyer and seller. |
It is understood that all information that is shared by each party's is confidential and not to be shared unless approved by both parties and or unless required by law. Each party executing is in agreement as stated above.
GDT TEK, Inc. | Fiber Recovery Inc. |
__________________ | ______________________ |
by Bo Linton President | by Jerry Hansen President |
Exhibit 99.2
Balance Sheet
As of September 30, 2012
Sept. 30, 2012 | Sept. 30, 2011 | Change | ||||||||||
ASSETS | ||||||||||||
Current Assets | ||||||||||||
Cash in Bank | 193,511 | 12,814 | 180,697 | |||||||||
Petty Cash | 406 | 105 | 301 | |||||||||
Total Cash | 193,917 | 12,919 | 180,998 | |||||||||
Accounts Receivable | ||||||||||||
Acct Receivable | 45,679 | 84,278 | (38,598 | ) | ||||||||
Total Accounts Receivable | 45,679 | 84,278 | (38,598 | ) | ||||||||
Other Current Assets | ||||||||||||
Notes Receivable | 253,359 | 244,726 | 8,633 | |||||||||
Notes Receivable | 132,977 | 132,276 | 701 | |||||||||
Loan Receivable | 17,759 | 15,399 | 2,360 | |||||||||
Loan Receivable | 9,735 | 31,956 | (22,221 | ) | ||||||||
Total Other Current Assets | 413,830 | 424,357 | (10,527 | ) | ||||||||
Total Current Assets | 653,426 | 521,554 | 131,873 | |||||||||
Fixed Assets | ||||||||||||
Building and improvements | 1,192,862 | 1,192,080 | 782 | |||||||||
Furniture and office equipment | 109,970 | 109,970 | 0 | |||||||||
Machinery and Equipment | 4,565,730 | 4,523,615 | 42,114 | |||||||||
Vehicles | 177,516 | 177,516 | 0 | |||||||||
Total Fixed Assets | 6,046,078 | 6,003,181 | 42896 | |||||||||
Depreciation | ||||||||||||
Accumulated Depreciation | (1,856,546 | ) | (1,607,355 | ) | (249,191 | ) | ||||||
Total Depreciation | (1,856,546 | ) | (1,607,355 | ) | (249,191 | ) | ||||||
TOTAL ASSETS | 4,842,958 | 4,917,380 | (74,422 | ) | ||||||||
LIABILITIES & EQUITY | ||||||||||||
Liabilities | ||||||||||||
Current Liabilities | ||||||||||||
Accounts Payable | 44,640 | (3,377 | ) | 48,017 | ||||||||
Total Accounts Payable | 44,640 | (3,377 | ) | 48,017 | ||||||||
Credit Cards | ||||||||||||
Visa | (4,941 | ) | 0 | (4,941 | ) | |||||||
Total Credit Cards | (4,941 | ) | 0 | (4,941 | ) | |||||||
Other Current Liabilities | ||||||||||||
Payroll | (10,484 | ) | 26,713 | (37,197 | ) | |||||||
Total Other Current Liabilities | (10,484 | ) | 26,713 | (37,197 | ) | |||||||
Total Current Liabilities | 29,215 | 23,336 | 5,879 | |||||||||
Long Term Liabilities | ||||||||||||
Loan 004 | 1,870,845 | 2,215,535 | (344,690 | ) | ||||||||
Loan 005 | 472,359 | 0 | 472,359 | |||||||||
Loan 006 | 0 | 528,098 | (528,098 | ) | ||||||||
Total Long Term Liabilities | 2,343,204 | 2,743,633 | (400,429 | ) | ||||||||
Equity | ||||||||||||
Stock Issued | 45,140 | 45,140 | 0 | |||||||||
Additional Paid in Capital | 39,754 | 39,754 | 0 | |||||||||
Treasury Stock | (265,654 | ) | (265,654 | ) | 0 | |||||||
Retained Earnings | 2,413,721 | 2,224,876 | 188,845 | |||||||||
Net Income | 237,578 | 106,295 | 131,283 | |||||||||
Total Equity | 2,470,539 | 2,150,411 | 320,128 | |||||||||
TOTAL LIABILITIES & EQUITY | 4,842,958 | 4,917,380 | (74,422 | ) |
Profit & Loss November 2011 through October 2012
2011-2012 P&L-EBITDA
Nov 11 | Dec 11 | Jan 12 | Feb 12 | Mar 12 | Apr 12 | May 12 | Jun 12 | Jul 12 | Aug 12 | Sep 12 | Oct 12 | TOTAL | |||||||||||||||||||||||||||
Ordinary Income/Expense | |||||||||||||||||||||||||||||||||||||||
Income | |||||||||||||||||||||||||||||||||||||||
4010001 · Revenue - Inbound Waste Process | 22,152.26 | 26,554.32 | 23,509.98 | 26,251.68 | 36,464.74 | 20,816.26 | 26,821.08 | 33,275.32 | 27,220.96 | 13,959.40 | 31,694.78 | 37,265.80 | 325,986.58 | ||||||||||||||||||||||||||
4020001 · Revenue - Power on peak | 77,904.36 | 76,698.77 | 89,440.92 | 92,111.48 | 93,267.16 | 85,758.75 | 78,097.45 | 86,326.02 | 87,529.21 | 78,768.21 | 87,810.85 | 78,736.24 | 1,012,449.42 | ||||||||||||||||||||||||||
4030001 · Revenue - Power off peak | 34,560.10 | 37,561.74 | 49,587.78 | 40,256.84 | 44,091.30 | 38,159.53 | 35,911.02 | 38,251.33 | 42,809.86 | 32,255.93 | 40,134.28 | 33,080.42 | 466,660.13 | ||||||||||||||||||||||||||
4050001 · Revenue - Outbound Fuel Pellets | 16,345.35 | 10,013.44 | 13,773.57 | 12,283.91 | 17,560.84 | 11,581.19 | 11,995.90 | 14,843.90 | 13,763.32 | 7,695.10 | 11,928.32 | 18,424.32 | 160,209.16 | ||||||||||||||||||||||||||
4270000 · Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 615.00 | 0.00 | 615.00 | ||||||||||||||||||||||||||
Total Income | 150,962.07 | 150,828.27 | 176,312.25 | 170,903.91 | 191,384.04 | 156,315.73 | 152,825.45 | 172,696.57 | 171,323.35 | 132,678.64 | 172,183.23 | 167,506.78 | 1,965,920.29 | ||||||||||||||||||||||||||
Cost of Goods Sold | |||||||||||||||||||||||||||||||||||||||
Direct labor | 10,396.73 | 10,042.17 | 8,952.55 | 8,178.28 | 12,622.50 | 10,810.04 | 11,614.88 | 12,161.88 | 12,881.26 | 17,979.82 | 11,691.88 | 11,436.89 | 138,768.88 | ||||||||||||||||||||||||||
Fuel Expense | 1,230.37 | 0.00 | 4,432.39 | 1,057.68 | 327.52 | 737.87 | 1,205.13 | 8,928.86 | 8,094.00 | 2,262.06 | 8,039.32 | 17.77 | 36,332.97 | ||||||||||||||||||||||||||
Maintenance- Drying | 3,193.16 | 1,207.89 | 850.53 | 4,121.92 | 1,202.46 | 215.00 | 1,997.92 | 3,278.61 | 915.00 | 4,706.00 | 596.95 | 490.73 | 22,776.17 | ||||||||||||||||||||||||||
Maintenance-Power Production | 19,190.64 | 29,370.49 | 21,610.39 | 27,495.22 | 41,494.96 | 10,157.69 | 25,126.57 | 13,741.12 | 11,446.78 | 8,874.33 | 3,033.11 | 31,700.81 | 243,242.11 | ||||||||||||||||||||||||||
Other direct Cost of goods | 6,775.11 | 7,691.76 | 6,788.06 | 4,755.75 | 4,920.45 | 4,257.56 | 5,466.99 | 2,097.20 | 3,399.44 | 4,329.98 | 3,429.41 | 4,139.19 | 58,050.90 | ||||||||||||||||||||||||||
Utilitities | 12,214.29 | 10,513.36 | 12,636.18 | 11,397.80 | 12,167.46 | 12,190.38 | 10,592.39 | 13,493.98 | 14,703.60 | 13,540.56 | 13,541.49 | 12,766.81 | 149,758.30 | ||||||||||||||||||||||||||
Total COGS | 53,000.30 | 58,825.67 | 55,270.10 | 57,006.65 | 72,735.35 | 38,368.54 | 56,003.88 | 53,701.65 | 51,440.08 | 51,692.75 | 40,332.16 | 60,552.20 | 648,929.33 | ||||||||||||||||||||||||||
Gross Profit | 97,961.77 | 92,002.60 | 121,042.15 | 113,897.26 | 118,648.69 | 117,947.19 | 96,821.57 | 118,994.92 | 119,883.27 | 80,985.89 | 131,851.07 | 106,954.58 | 1,316,990.96 | ||||||||||||||||||||||||||
Expense | |||||||||||||||||||||||||||||||||||||||
Insurance | 17,245.86 | 8,892.92 | 12,128.68 | 7,492.71 | 11,761.19 | 7,516.75 | 6,216.18 | 6,995.74 | 3,888.70 | 9,149.77 | 5,197.75 | 12,810.76 | 109,297.02 | ||||||||||||||||||||||||||
Maintenance | 300.00 | 171.44 | 0.00 | 88.00 | 0.00 | 246.00 | 376.02 | 1,304.22 | 624.85 | 953.21 | 1,285.89 | 98.00 | 5,447.63 | ||||||||||||||||||||||||||
4020000 · Bank Service Charge | 51.00 | 16.00 | 16.01 | 51.10 | 50.99 | 85.95 | 46.00 | 16.00 | 16.00 | 51.00 | 73.50 | 42.25 | 515.80 | ||||||||||||||||||||||||||
5160002 · License & Permits | 1,980.00 | 2,025.00 | 3,960.00 | 1,980.00 | 0.00 | 2,025.00 | 3,960.00 | 1,980.00 | 15.00 | 1,980.00 | 2,145.00 | 1,980.00 | 24,030.00 | ||||||||||||||||||||||||||
5170000 · Linen & Uniform | 112.26 | 111.51 | 112.58 | 111.51 | 167.70 | 111.53 | 162.88 | 135.40 | 135.40 | 203.10 | 135.40 | 148.52 | 1,647.79 | ||||||||||||||||||||||||||
5200000 · Membership & Renewal Fees | 0.00 | 0.00 | 694.53 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 694.53 | ||||||||||||||||||||||||||
5290000 · Safety Supplies | 0.00 | 0.00 | 0.00 | 0.00 | 129.46 | 113.42 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 105.50 | 348.38 | ||||||||||||||||||||||||||
5310000 · Rental & Lease | 7.91 | 0.00 | 50.64 | 0.00 | 0.00 | 7.39 | 8.18 | 16.57 | 8.18 | 8.18 | 7.91 | 7.12 | 122.08 | ||||||||||||||||||||||||||
5390000 · Office Supplies | 0.00 | 107.18 | 109.50 | 0.00 | 197.82 | 343.07 | 40.78 | 150.87 | 40.51 | 0.00 | 134.56 | 0.00 | 1,124.29 | ||||||||||||||||||||||||||
6019000 · Reimbursement Expense | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 26.60 | 0.00 | 0.00 | 26.60 | ||||||||||||||||||||||||||
6250000 · Printing/Office Supplies | 116.11 | 170.46 | 1,250.93 | 0.00 | 700.54 | 471.66 | 40.58 | 0.00 | 102.38 | 684.69 | 162.19 | 238.55 | 3,938.09 | ||||||||||||||||||||||||||
6310000 · Equipment Rental | 200.00 | 8.18 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 208.18 | ||||||||||||||||||||||||||
6340029 · Payroll Processing Fee | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,418.00 | 0.00 | 1,418.00 | ||||||||||||||||||||||||||
6410029 · Utilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,072.54 | 0.00 | 0.00 | 0.00 | 0.00 | 1,072.54 | ||||||||||||||||||||||||||
6590199 · Management Salary | 7,500.00 | 7,500.00 | 7,500.00 | 7,500.00 | 7,500.00 | 7,500.00 | 7,500.00 | 7,500.00 | 7,500.00 | 7,500.00 | 7,500.00 | 7,500.00 | 90,000.00 | ||||||||||||||||||||||||||
6600000 · Payroll Expenses | 12.50 | 91.75 | 121.26 | 12.50 | 20.95 | 14.50 | 20.30 | 15.95 | 23.20 | 27.55 | 17.40 | 17.40 | 395.26 | ||||||||||||||||||||||||||
6600001 · Payroll taxes | 718.01 | 549.85 | 1,663.80 | 1,562.59 | 1,650.93 | 1,640.35 | 1,490.71 | 1,481.35 | 1,512.48 | 1,798.48 | 1,304.09 | 742.73 | 16,115.38 | ||||||||||||||||||||||||||
6670000 · Professional Fees | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 160.00 | 0.00 | 160.00 | ||||||||||||||||||||||||||
6750011 · Property taxes - WI | 0.00 | 0.00 | 20,292.40 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 20,292.40 | ||||||||||||||||||||||||||
6810000 · Telephone Expense | 150.02 | 471.92 | 253.74 | 240.23 | 268.83 | 260.09 | 574.87 | 260.24 | 260.40 | 578.03 | 591.77 | 917.96 | 4,828.10 | ||||||||||||||||||||||||||
8000000 · Supplies | 232.03 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 232.03 | ||||||||||||||||||||||||||
Total Expense | 28,625.70 | 20,116.21 | 48,154.08 | 19,038.64 | 22,448.41 | 20,335.71 | 20,436.50 | 20,928.88 | 14,127.10 | 22,960.62 | 20,133.46 | 24,608.80 | 281,914.10 | ||||||||||||||||||||||||||
Net Ordinary Income | 69,336.07 | 71,886.39 | 72,888.07 | 94,858.62 | 96,200.28 | 97,611.48 | 76,385.07 | 98,066.04 | 105,756.17 | 58,025.27 | 111,717.61 | 82,345.78 | 1,035,076.86 | ||||||||||||||||||||||||||
Other Income/Expense | |||||||||||||||||||||||||||||||||||||||
Other Income | |||||||||||||||||||||||||||||||||||||||
4800000 · Other Misc Income | 0.00 | 1,581.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2,126.35 | 0.00 | 0.00 | 22,215.24 | 0.00 | 0.00 | 25,922.59 | ||||||||||||||||||||||||||
Total Other Income | 0.00 | 1,581.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2,126.35 | 0.00 | 0.00 | 22,215.24 | 0.00 | 0.00 | 25,922.59 | ||||||||||||||||||||||||||
Net Income | 69,336.07 | 73,467.39 | 72,888.07 | 94,858.62 | 96,200.28 | 97,611.48 | 78,511.42 | 98,066.04 | 105,756.17 | 80,240.51 | 111,717.61 | 82,345.78 | 1,060,999.45 |