-----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, CxMIB+Ibe4TM9n1iNjbV40gBLzLelsUNsHaODNdbDK4ogXVxIcMn1BeSQuBa3jXY a9HmX+UajSKg8SCiOL8/Yw== 0001169232-05-000512.txt : 20050208 0001169232-05-000512.hdr.sgml : 20050208 20050207202918 ACCESSION NUMBER: 0001169232-05-000512 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040730 ITEM INFORMATION: Completion of Acquisition or Disposition of Assets ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050208 DATE AS OF CHANGE: 20050207 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WIRELESS AGE COMMUNICATIONS INC CENTRAL INDEX KEY: 0001130131 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-RADIO TV & CONSUMER ELECTRONICS STORES [5731] IRS NUMBER: 980336674 STATE OF INCORPORATION: NV FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-31338 FILM NUMBER: 05581931 BUSINESS ADDRESS: STREET 1: 1150 ROSE STREET STREET 2: REGINA CITY: REGINA STATE: A9 ZIP: S49 1Z6 BUSINESS PHONE: (306) 539-1666 MAIL ADDRESS: STREET 1: 1150 ROSE STREET STREET 2: REGINA CITY: REGINA STATE: A9 ZIP: S49 1Z6 FORMER COMPANY: FORMER CONFORMED NAME: LENNOC VENTURES INC DATE OF NAME CHANGE: 20001215 8-K/A 1 d62050_8k-a.txt AMENDMENT NO. 2 \ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------- FORM 8-K/A Amendment No. 2 Current Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) July 30, 2004 WIRELESS AGE COMMUNICATIONS, INC. (Exact name of registrant as specified in its charter) Nevada 001-313338 98-0336674 State or other jurisdiction of (Commission (IRS Employer Incorporation or organization File No.) Identification No.) 13980 Jane Street, King City, Ontario, Canada, L7B 1A3 (Address of principal executive offices) (Zip Code) (905) 833-0808 (Registrant's telephone number, including area code) (Former name, former address and former fiscal year, 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): |_| Written communication pursuant to Rule 425 under the Securities Ac (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240. 13e-4(c)) TABLE OF CONTENTS Item 2.01 Completion of Acquisition or Disposition of Assets. Item 9.01 Financial Statements, Pro Forma Financial Information and Exhibits SIGNATURE Item 2.01 Completion of Acquisition or Disposition of Assets. On August 16, 2004, the Registrant filed Form 8-K describing its acquisition of Marlon Distributors Ltd. and its wholly owned subsidiary Marlon Recreational Products Ltd. The Registrant amended report on Form 8-K/A Amendment No. 1 filed on October 25, 2004 to provide consolidated audited financial statements of Marlon Distributors. The Registrant herby further amends such Form 8-K/A Amendment No. 2 to provide pro-forma financial information with respect to the acquisition of Marlon Distributors Ltd. Item 9.01 Financial Statements, Pro Forma Financial Information and Exhibits (a) Financial Statements of Businesses Acquired. 99.1 Financial statements of Marlon Distributors Ltd.* 99.2 Pro Forma Financial information regarding Marlon Distributors Ltd. * Incorporated herein by reference to Form 8-K/A Amendment No. 1 filed with the Commission on October 25, 2004. (b) Exhibits 23.1 Consent of Auditors. [Signature Page Follows] 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 by the undersigned hereunto duly authorized. Dated: February 4, 2005 WIRELESS AGE COMMUNICATIONS, INC. By /s/ Gary N. Hokkanen --------------------------------- Gary N. Hokkanen Chief Financial Officer EX-23.1 2 d62050_ex23-1.txt CONSENT OF AUDITORS. Exhibit 23.1 DONALD BEATSON, CA INDEPENDENT AUDITOR'S CONSENT I consent to the inclusion of my report dated February 24, 2004, appearing in the audited consolidated financial statements for Marlon Distributors Ltd. For the year ended December 31, 2003 in Wireless Age Communications, Inc. Form 8K/A. /s/ Donald Beatson - ----------------------------- CHARTERED ACCOUNTANT Vancouver, Canada January 6, 2005 EX-99.2 3 d62050_ex99-2.txt RO FORMA FINANCIAL INFORMATION Exhibit 99.2(1) WIRELESS AGE COMMUNICATIONS, INC. PRO-FORMA INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2003
Wireless Age Marlon Communications Distributors Pro-forma Inc. Ltd. Adjustments Pro-forma Sales 9,268,569 887,596 -- 10,156,165 Cost of good sold 5,411,072 566,538 -- 5,977,610 --------------------------------------------------- ----------- Gross profit 3,857,497 321,059 -- 4,178,556 GP %age 41.62% 36.17% 0.00% 41.14% Selling and Admin Costs: 3,616,350 316,427 -- 3,932,777 Amortization: 249,223 6,006 -- 255,229 Interest Expense: 100,294 1,326 -- 101,620 Other expenses (income): Rental income -- (689) -- (689) Interest income -- (7,949) -- (7,949) Realized (Gain) on disposition of assets -- (38,031) -- (38,031) Foreign exchange 84,951 -- -- 84,951 Management fees (39,973) -- -- (39,973) --------------------------------------------------- ----------- 44,978 (46,670) -- (1,692) Income before income taxes and non-controlling interests (153,348) 43,970 -- (109,378) Income Tax Provision Current -- 8,566 -- 8,566 Future -- (1,118) -- (1,118) --------------------------------------------------- ----------- -- 7,448 -- 7,448 --------------------------------------------------- ----------- Net income (loss) before non-controlling interests (153,348) 36,522 -- (116,826) Non - controlling interest 16,041 -- -- 16,041 --------------------------------------------------- ----------- Net income (loss) for the year (137,307) 36,522 -- (100,785) =================================================== =========== Loss per share (0.01) (0.01) ============= =========== Weighted average number of common shares outstanding 17,537,022 19,012,585 ============= ===========
WIRELESS AGE COMMUNICATIONS, INC. PRO-FORMA BALANCE SHEET AS AT JUNE 30, 2004
Wireless Age Marlon Communications Distributors Pro-forma ASSETS Inc. Ltd. Adjustments Pro-forma Current Cash and cash equivalents (96,959) 474,254 327,803 705,098 Accounts receivable - trade 1,455,471 87,455 1,542,926 Inventories 1,281,836 368,753 -- 1,650,589 Due to related parties 40,405 -- -- 40,405 Prepaid and deposits 265,861 24,220 -- 290,081 Investments 2,420,000 449,260 (449,260) 2,420,000 ---------------------------------------------------------- ----------- 5,366,614 1,403,943 (121,457) 6,649,100 ---------------------------------------------------------- ----------- Capital Assets 414,988 29,807 -- 444,795 Intangible assets and goodwill 4,747,785 -- 103,776 4,851,561 ---------------------------------------------------------- ----------- 10,529,387 1,433,750 (17,681) 11,945,456 ---------------------------------------------------------- ----------- LIABILITIES Current Accounts payable and accruals 2,680,202 33,510 -- 2,713,712 Income taxes payable -- -- -- -- Customer Deposits 15,753 -- -- 15,753 Due to related parties -- -- -- -- Current portion of long-term debt 2,539,222 -- -- 2,539,222 ---------------------------------------------------------- ----------- 5,235,177 33,510 -- 5,268,687 ---------------------------------------------------------- ----------- Long term debt 116,455 266,674 (189,521) 193,608 Non controlling interest 48,862 -- -- 48,862 ---------------------------------------------------------- ----------- 5,400,494 300,184 (189,521) 5,511,157 ---------------------------------------------------------- ----------- SHAREHOLDERS' EQUITY Share Capital 21,111 161,327 (159,851) 22,587 Additional paid in capital 5,418,476 -- 1,324,365 6,742,841 Deficit (373,843) 989,653 (992,674) (376,864) Other comprehensive income 63,149 (17,413) -- 45,736 ---------------------------------------------------------- ----------- Ending Retained Earnings (A) (310,694) 972,240 (992,674) (331,128) ---------------------------------------------------------- ----------- 5,128,893 1,133,566 171,840 6,434,299 ---------------------------------------------------------- ----------- 10,529,387 1,433,750 (17,681) 11,945,456 ---------------------------------------------------------- -----------
WIRELESS AGE COMMUNICATIONS, INC. PRO-FORMA INCOME STATEMENT FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2004
Wireless Age Marlon Communications Distributors Pro-forma Inc. Ltd. Adjustments Pro-forma Sales 6,549,378 396,384 -- 6,945,762 Cost of good sold 4,369,675 229,323 -- 4,598,998 ----------------------------------------------- ----------- Gross profit 2,179,703 167,061 -- 2,346,764 GP %age 33.28% 42.15% 0.00% 33.79% Selling and Admin Costs: 2,340,309 167,190 -- 2,507,499 Amortization: 114,600 2,535 -- 117,135 Interest Expense: 57,759 261 -- 58,020 Other expenses (income): Rental income (369) -- -- (369) Interest expense 107,770 -- -- 107,770 Realized (Gain) on disposition of assets (275,594) -- -- (275,594) Foreign exchange -- -- -- -- Management fees -- -- -- -- ----------------------------------------------- ----------- (168,193) -- -- (168,193) Income before income taxes and non-controlling interests (164,772) (2,924) -- (167,696) Income Tax Provision Current -- -- -- -- Future -- -- -- -- ----------------------------------------------- ----------- -- -- -- -- ----------------------------------------------- ----------- Net income (loss) before non-controlling interests (164,772) (2,924) -- (167,696) Non - controlling interest (1,535) -- -- (1,535) ----------------------------------------------- ----------- Net income (loss) for the year (166,307) (2,924) -- (169,231) =============================================== =========== Basic earnings per share: (0.008) (0.008) Weighted average number of common shares outstanding 20,852,229 22,177,229 Diluted earnings per share: (0.008) (0.008) Weighted average number of common shares outstanding 21,035,562 22,511,125
WIRELESS AGE COMMUNICATIONS, INC. NOTES TO THE PRO-FORMA FINANCIAL STATEMENTS DECEMBER 31, 2003 and JUNE 30, 2004 Note 1 BASIS OF PRESENTATION The accompanying pro-forma financial statements give effect to the acquisition of Marlon Distributors Ltd. ("Marlon") by Wireless Age Communications, Inc. ("Wireless") on July 30, 2004. The unaudited pro-forma financial statements of Wireless included herein have been prepared by management of Wireless in accordance with the generally accepted accounting principles of the United States of America. They have been prepared from information derived from the June 30, 2004 (unaudited) and December 31, 2003 (audited) financial statements of Wireless and the June 30, 2004 (unaudited) and December 31, 2003 (audited) financial statements of Marlon, together with other information available to the corporations. In the opinion of management of Wireless, these unaudited pro-forma financial statements include all the adjustments necessary for fair presentation of the acquisition of Marlon by Wireless as described below. The unaudited pro-forma financial statements should be read in conjunction with the historical financial statements and notes thereto of Wireless and Marlon referred to above and included elsewhere in this Form 8-K/A. The Wireless Unaudited pro-forma balance sheet has not been provided since this transaction occurred on July 30, 2004 and the acquisition has been recorded in the September 30, 2004 10QSB previously filed. The Unaudited pro-forma financial statements of operations gives the effect to the acquisition of Marlon as if it had occurred at the start of the fiscal period beginning on January 1, 2003. These Unaudited pro-forma financial statements are not necessarily indicative of the financial position or results of operations, which would have resulted if the combination and related transactions had actually occurred on those dates. Marlon is a Canadian company. The financial statements of Marlon were prepared in accordance with Canadian generally accepted accounting principles and do not contain any significant differences from financial statements had they been prepared using generally accepted accounting principles from the United States. The financial statements of Marlon have been converted from Canadian dollars ("CDN") to United States dollars ("US") as follows: - Revenue and expenses for the one year period ended December 31, 2003 at the average rate of exchange in effect for the period of one Canadian dollar equals $0.72149 US. Note 2 BUSINESS ACQUISITIONS MARLON DISTRIBUTORS LTD. On July 30, 2004, Wireless acquired all of the issued and outstanding common shares of Marlon. Wireless entered into a share exchange agreement with the shareholders of Marlon whereby Wireless acquired 94,163 common shares of Marlon in exchange for 1,325,000 common shares of Wireless. In addition, Wireless issued 150,563 common shares of Wireless to the former shareholders of Marlon in repayment of shareholder loans totaling approximately $189,521 (CAD$245,716) provided to Marlon. The business combination is accounted for using the purchase method. The fair value of the assets and liabilities acquired are as follows: Current assets 1,036,504 Capital assets 33,020 Note receivable on sale of Marlon Rec 327,803 Intangible assets and goodwill 103,776 Current liabilities (364,783) ---------- Net assets acquired at fair values 1,136,320 ========== Total consideration: 1,325,000 common shares of the Company 1,136,320 ========== The excess of purchase price over net assets acquired has been temporarily allocated to goodwill. Note 3 PRO-FORMA ADJUSTMENTS The unaudited pro-forma financial statements do not contain any pro-forma adjustments since no inter-company or similar transactions occurred during the period. Note 4 PRO-FORMA BASIC AND DILUTED EARNINGS (LOSS) PER SHARE Pro-forma basic and diluted earnings (loss) per share has been calculated using the historical weighted average number of shares previously reported and amended as if the pro-forma common shares of Wireless issued pursuant to the acquisition have been outstanding since the beginning of the periods. Diluted earnings per share include potentially dilutive effect of outstanding common stock options and warrants which are convertible to common shares. Reconciliation of Canadian and U.S. GAAP
Period ended December 31 Period ended December 31 ------------------------------------------- ---------------------------------------- 2003 2002 ------------------------------------------- ---------------------------------------- As U.S. As U.S. Reported Ref. Amount GAAP Reported Ref. Amount GAAP ------------------------------------------- ---------------------------------------- Statement of Income Sales 3,188,521 3,188,521 2,902,582 2,902,582 Cost of sales 2,198,845 2,198,845 2,121,138 2,121,138 --------- ----------------------- ---------- ------------------------ Gross margin 989,676 0 989,676 781,444 0 781,444 Other operating income Commissions 84,644 84,644 85,606 85,606 Rent 955 955 6,000 6,000 Interest and other 11,059 11,059 12,357 12,357 --------- ----------------------- ---------- ------------------------ 1,086,334 0 1,086,334 885,407 0 885,407 Selling and administrative expenses 1,061,698 (a) (10,060) 1,051,638 920,976 (a) (10,061) 910,915 --------- ----------------------- ---------- ------------------------ Operating income (loss) 24,636 10,060 34,696 (35,569) 10,061 (25,508) Other income Gain on disposal of assets 55,533 55,533 79,089 79,089 --------- ----------------------- ---------- ------------------------- Income before taxes 80,169 10,060 90,229 43,520 10,061 53,581 Income taxes Current 15,875 15,875 11,722 11,722 Future (recovery) 1,450 1,450 (1,500) (1,500) --------- ----------------------- ---------- ------------------------- 17,325 0 17,325 10,222 0 10,222 Net income 62,844 10,060 72,904 33,298 10,061 43,359 ========= ======================= ========== ========================
- ---------- (a) Amortization of goodwill purchased by subsidiary Reconciliation of Canadian and U.S. GAAP
Period ended December 31 Period ended December 31 ------------------------------------------- ----------------------------------------- 2003 2002 ------------------------------------------- ----------------------------------------- As U.S. As U.S. Reported Ref. Amount GAAP Reported Ref. Amount GAAP ------------------------------------------- ----------------------------------------- Balance sheet Current assets Cash 75,386 75,386 146,666 146,666 Guaranteed investment certificate 322,908 322,908 315,824 315,824 Accounts receivable - net of allowance 449,209 449,209 477,885 477,885 Inventory 1,209,150 1,209,150 1,062,501 1,062,501 Prepaid expenses 40,751 40,751 43,859 43,859 ----------- ---------------------- ---------- ---------------------- 2,097,404 0 2,097,404 2,046,735 0 2,046,735 Capital assets 146,070 146,070 325,756 325,756 Goodwill Purchased by subsidiary less amortization thereon 73,228 (a) 20,121 93,349 83,288 (a) 10,061 93,349 Arising upon consolidation 184,196 184,196 184,196 184,196 ----------- ---------------------- ---------- ---------------------- Total assets 2,500,898 20,121 2,521,019 2,639,975 10,061 2,650,036 =========== ====================== ========== ====================== Current liabilities Accounts payable and accrued liabilities 508,456 508,456 390,496 390,496 Corporation income taxes payable 9,735 9,735 12,603 12,603 Current portion of long-term debt 95,000 95,000 324,565 324,565 ----------- ---------------------- ---------- ---------------------- 613,191 0 613,191 727,664 0 727,664 Long-term debt 377,643 377,643 466,541 466,541 0 0 Future taxes 3,325 3,325 1,875 1,875 ----------- ---------------------- ---------- ---------------------- Total liabilities 994,159 0 994,159 1,196,080 0 1,196,080 ----------- ---------------------- ---------- ---------------------- Share capital 459,162 (b) (250,000) 209,162 459,162 (b) (250,000) 209,162 Retained earnings 1,297,577 (a) 20,121 1,317,698 1,234,733 (a) 10,061 1,244,794 Premium on redemption of shares (250,000) (b) 250,000 0 (250,000) (b) 250,000 0 ----------- ---------------------- ---------- ---------------------- Total equity 1,506,739 20,121 1,526,860 1,443,895 10,061 1,453,956 ----------- ---------------------- ---------- ---------------------- Total liabilities and equity 2,500,898 20,121 2,521,019 2,639,975 10,061 2,650,036 =========== ====================== =========================================
- ---------- (a) amortization of goodwill purchased by subidiary (b) reclassification of premium on redemption of shares Reconciliation of Canadian and U.S. GAAP
Period ended December 31 Period ended December 31 ---------------------------------------- ------------------------------------- 2003 2002 ---------------------------------------- ------------------------------------- As U.S. As U.S. Reported Ref. Amount GAAP Reported Ref. Amount GAAP ---------------------------------------- -------------------------------------- Statement of cash flows Cash provided (utilized) by operating activities Net income 62,844 (a) 10,060 72,904 33,298 (a) 10,061 43,359 Add (deduct) items not requiring cash: 0 0 Amortization 54,561 (a) (10,060) 44,501 66,202 (a) (10,061) 56,141 Gain on disposal of assets (55,533) (55,533) (79,089) (79,089) Deferred incme taxes (recovery) 1,450 1,450 (1,500) (1,500) --------- ---------- 63,322 18,911 Changes in non-cash working capital items: Accounts receivable 28,676 28,676 (108,089) (108,089) Goods and services tax recoverable 0 0 7,458 7,458 Inventory (146,649) (146,649) 23,509 23,509 Prepaid expenses 3,108 3,108 68,307 68,307 Accounts payable and accrued liabilities 117,960 117,960 3,930 3,930 Corporation income taxes payable (2,868) (2,868) 10,726 10,726 --------- ---------------------- ---------- ------------------- 63,549 0 63,549 24,752 0 24,752 --------- ---------------------- ---------- ------------------- Cash provided (utilized) by financing activities Net reduction of long-term debt contracts (318,463) (b) 318,463 (377,559) (b) 377,559 --------- ---------- Decrease in long-term debt (b) (318,463) (318,463) (b) (377,559) (377,559) ---------------------- ------------------- 0 (318,463) 0 (377,559) ---------------------- ------------------- Cash provided (utilized) by investing activities Purchase of guaranteed investment certificates (7,084) (7,084) (145,764) (145,764) Disposal of capital assets 190,718 190,718 257,433 257,433 Reduction in employee automobile loan 0 0 1,528 1,528 --------- ---------------------- ---------- ------------------- 183,634 0 183,634 113,197 0 113,197 --------- ---------------------- ---------- ------------------- Decrease in cash position (71,280) 0 (71,280) (239,610) 0 (239,610) Cash, beginning of year 146,666 146,666 386,276 386,276 --------- ---------------------- ---------- ------------------- Cash, end of year 75,386 75,386 146,666 146,666 ========= ========= ========== ========
- ---------- (a) amortization of goodwill purchased by subsidiary (b) reclassification of long-term debt reduction disclosure -----END PRIVACY-ENHANCED MESSAGE-----