-----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, MPqeMzD9G/LFF49guB3q75b7rg/RAP96PZI0xoDWwYuV6iz+NpguOKqoabd/3TPA j6JaT8T8QxdBA4+gyQB1ZA== 0000930413-99-000112.txt : 19990222 0000930413-99-000112.hdr.sgml : 19990222 ACCESSION NUMBER: 0000930413-99-000112 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990219 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990219 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATURAL HEALTH TRENDS CORP CENTRAL INDEX KEY: 0000912061 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EDUCATIONAL SERVICES [8200] IRS NUMBER: 592705336 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-26272 FILM NUMBER: 99545926 BUSINESS ADDRESS: STREET 1: 250 PARK AVENUE STREET 2: STE 201 CITY: NEW YORK STATE: NY ZIP: 10117 BUSINESS PHONE: 2077727234 MAIL ADDRESS: STREET 1: 2001 WEST SAMPLE ROAD STREET 2: STE 201 CITY: POMPANO BEACH STATE: FL ZIP: 33064 8-K 1 FORM 8-K CURRENT REPORT 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 earlier event reported): February 19, 1999 ----------------- NATURAL HEALTH TRENDS CORP. ------------------------------------------- (Exact Name of Registrant as Specified in Charter) Florida 0-25238 59-2705336 ------------ ---------- -------------- (State of Incorporation (Commission Flle No.) (IRS Identification Number) or other Jurisdiction) 250 Park Avenue New York, New York 10117 -------------------------------------------- (Address of Principal Executive Offices) (212) 490-6609 --------------------------------------------- (Registrant's Telephone Number Including Area Code) ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS Effective February 19, 1999, pursuant to an Asset Purchase Agreement (the "Acquisition Agreement"), dated as of November 24, 1998 by and among, Natural Health Trends Corp., a Florida corporation (thc "Company"), NHTC Acquisition Corp., a newly formed, wholly-owned subsidiary of the Company (the "Subsidiary"), and Kaire International, Inc., a privately held Delaware corporation ("Kaire"), the Subsidary acquired (the "Acquisition"), substantially all of the assets (the "Assets") of Kaire in exchange for the issuance (i) to Kaire, of $2,8OO,OOO aggregate stated value of the Company's Series F Preferred Stock, par value $.001 per share (the "Series F Preferred Stock"); (ii) to two creditors of Kaire, $350,000 aggregate stated value of the Company's Series G Preferred Stock, par value $.001 per share (the "Series G Preferred Stock"); and (iii) to Kaire, five-year warrants to purchase 200,000 shares of the Company's common stock, par value $.001 per share (the"Common Stock"). The Subsidiary also, pursuant to the Acquisition, assumed certain indebtedness of Kaire, agreed to indemnify certain officers of Kaire against certain liabilities accrued prior to the closing date and agreed, subject to certain adjustments, to make certain annual earn-out payments to Kaire for a period of five (5) years commencing with the year ending December 31, l999, based upon the revenues and net income, if any, of the Subsidiary. For a copy of the Acquisition Agreement and all Exhibits thereto including the Warrant and the Articles of Amendment of Articles of Incorporation of the Company setting forth the terms of the Seies F Preferred Stock and Series G Preferred Stock (collectively, the "Preferred Documents"), see the Company's Proxy Statement dated January 25, 1999. Kaire develops and distributes, through a network of independent associates, products that are intended to appeal to health-conscious consumers, Current Kaire products include health care supplements and personal care products. Kaire offers a line of approximately 50 products which it divides into nine categories, including Antioxidant Protection, (Bodily) Defense, Digestion, Energy and Alertness, Stress, Vital Nutrients, Weight Management, Anti-Aging and Personal Care. Based upon the audited financial statement of Kaire, for the year ended December 31, 1997, Kaire had net sales of approximately $35,682,000 and a net loss of approximately $6,098,000 and based upon the unaudited financial statements of Kaire, for the nine (9) months ended September 30, 1998, Kaire had net sales of approximately $21,018,916 and a net loss of approximately $3,192,264. Attached to this Current Report on Form 8-K is the Unaudited Pro Forma Condensed Consolidated Balance Sheet as of November 30, 1998 of the Company and Kaire. -2- ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits. (a) Financial Statements The required Financial Statements of Kaire will be filed pursuant to an amendment to this Current Report on Form 8-K no later than sixty (60) days from the date of this Current Report on Form 8-K. (b) Pro Forma Financial Information See attached (c) Exhibits See the Company's Proxy Statement dated January 25, 1999 for a copy of, among other documents relating to the Acquisition, the Acquisition Agreement, the Warrant and the Preferred Documents. -3- 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, NATURAL HEALTH TRENDS CORP. (Registrant) By: /s/ Joseph P. Grace --------------------------------- Joseph P. Grace, Acting President Dated: February 19, 1999 EX-99 2 CONSOLIDATED BALANCE SHEET NATURAL HEALTH TRENDS CORP./KAIRE INTERNATIONAL, INC. UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
Natural Health Kaire Trends, Corp. International, Inc. Pro Forma November 30, November 30, Adjustments --------------- ------------------- ----------- 1998 1998 DR(CR) Total --------------- ------------------- ----------- ----------- ASSETS ------ CURRENT ASSETS: Cash $ 661,371 $ 488,091 $ (8,032) $ 1,141,430 Restricted cash -- 125,000 -- 125,000 Accounts receivable, net 23,148 272,304 -- 295,452 Inventory 414,963 914,206 (230,216) 1,098,953 Prepaid expenses and other current assets 575,395 61,115 (775) 635,735 ------------ ------------ -------------- ----------- TOTAL CURRENT ASSETS 1,674,877 1,860,716 (239,023) 3,296,570 PROPERTY AND EQUIPMENT, net 44,265 612,185 (69,468) 586,982 PATENTS AND CUSTOMER LISTS 4,654,487 -- 4,501,059 9,155,546 GOODWILL 834,572 -- -- 834,572 DEPOSITS AND OTHER ASSETS 20,350 248,930 (24,406) 244,874 ------------ ------------ -------------- ----------- TOTAL ASSETS $ 7,228,551 $ 2,721,831 $ 4,168,162 $14,118,544 ============ ============ ============== =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Cash overdraft $ -- $ 1,394,566 $ -- $ 1,394,566 Accounts payable and accrued expenses 1,774,262 4,705,932 3,276,402 3,203,792 Accrued expenses for discontinued operations 314,593 -- -- 314,593 Accrued consulting contract 360,131 -- -- 360,131 Notes payable -- 2,220,521 2,035,521 185,000 Notes payable - related parties -- 2,106,574 2,106,574 -- Current portion of long-term debt, net of discount 314,684 48,897 -- 363,581 Other current liabilities 87,916 538,916 538,916 87,916 ------------ ------------ -------------- ----------- TOTAL CURRENT LIABILITIES 2,851,586 11,015,406 7,957,413 5,909,579 MINORITY INTEREST -- (49,194) (49,194) -- COMMON STOCK SUBJECT TO PUT 380,000 -- -- 380,000 STOCKHOLDERS' EQUITY: Preferred stock, $.001 par value, 1,500,000 shares authorized, 3,354 shares issued and outstanding (actual) and (pro forma) 2,934,572 -- (3,150,000) 6,084,572 Common stock, $.0001 par value, 50,000,000 shares authorized, 4,873,455 shares issued and outstanding (actual) and (pro forma) 4,873 22,312 22,312 4,873 Additional paid-in capital 15,385,032 1,365,537 683,537 16,067,032 Cumulative translation adjustment -- (435,078) (435,078) -- Retained earnings (deficit) (13,947,512) (9,197,152) (9,197,152) (13,947,512) Common stock subject to put (380,000) -- -- (380,000) ------------ ------------ -------------- ----------- TOTAL STOCKHOLDERS' EQUITY 3,996,965 (8,244,381) (12,076,381) 7,828,965 ------------ ------------ -------------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 7,228,551 $ 2,721,831 $ (4,168,162) $14,118,544 ============ ============ ============== ===========
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