-----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, LgesK1yPhO4uPnnwspw3yPxKdVg0+LP+OmaoQeFViQT3vsPRC4I5ZLxYHhVXCvbG 8E5sp9d0fZP00aMIsNxvIQ== 0000912057-96-022696.txt : 19961016 0000912057-96-022696.hdr.sgml : 19961016 ACCESSION NUMBER: 0000912057-96-022696 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960930 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19961015 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MVSI INC CENTRAL INDEX KEY: 0000937603 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL INSTRUMENTS FOR MEASUREMENT, DISPLAY, AND CONTROL [3823] IRS NUMBER: 541707718 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 033-89194 FILM NUMBER: 96642853 BUSINESS ADDRESS: STREET 1: 8133 LEESBURG STREET 2: STE 750 CITY: VIENNA STATE: VA ZIP: 22182 BUSINESS PHONE: 7033565353 MAIL ADDRESS: STREET 1: 8133 LEESBURG PIKE STREET 2: SUITE 750 CITY: VIENNA STATE: VA ZIP: 22182 8-K 1 FORM 8K 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): SEPTEMBER 30, 1996 MVSI, INC. (Exact name of registrant as specified in charter) DELAWARE 0-26614 54-1707718 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 8133 LEESBURG PIKE, SUITE 750 VIENNA, VIRGINIA 22182 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (703) 356-5353 Former name or former address, if changed since last report: N/A MVSI, INC. INFORMATION TO BE INCLUDED IN THE REPORT Item 1. Changes in Control of Registrant. None. Item 2. Acquisition or Disposition of Assets. On September 30, 1996, the Registrant (MVSI, Inc./Nasdaq: "MVSI") completed the acquisition of Socrates, Inc. ("Socrates"), as a wholly-owned subsidiary. Socrates is a Washington area based integrator and marketer of proprietary and generic computer system products and services for advanced computer systems integration, telecommunications integration, internet connectivity, and wide and local area networking. MVSI exchanged, on a proposed tax-free basis, 350,000 shares of its common stock for all the shares of common stock held by Socrates' stockholder. The newly issued MVSI shares in the acquisition are restricted and may not be sold for a 24 month period ending September 1998. MVSI believes that the acquisition of Socrates will enhance its capability to provide software and hardware support to its wholly-owned subsidiaries, including MVS Modular Vision Systems, Inc., whose product line includes computer oriented proprietary laser vision-based robotic and sensor products and systems. Item 3. Bankruptcy or Receivership. None. Item 4. Changes in Registrant's Certifying Accountant. None. Item 5. Other Events. None. Item 6. Resignation of Registrant's Directors. None. 2 Item 7. Financial Statements, PRO FORMA Financial Information and Exhibits. In accordance with Regulation S-B, Item 310(c), the Registrant has determined that its acquisition of Socrates, Inc. is considered to be a significant business combination. As none of conditions in the definitions of a significant subsidiary exceed the percentage which would require the Registrant to provide audited financial statements, and that such audited statements are not readily available, the Registrant has not provided audit financial statements herein. Notwithstanding, the Registrant has provided unaudited financial statements, excluding disclosures, and PRO FORMA financial information attached hereto and made a part hereof. Item 8. Change in Fiscal Year. None. 3 SIGNATURE Pursuant to the requirements of the Securities Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MVSI, Inc. Date October 11, 1996 By: /s/ EDWARD RATKOVICH ---------------------------- ------------------------------- Edward Ratkovich Chairman of the Board and Chief Executive Officer 4 SOCRATES, INC. BALANCE SHEETS JUNE 30, DECEMBER 31, 1996 1995 ----------- ------------ (Unaudited) (Unaudited) ASSETS CURRENT ASSETS Cash $ (8,496) $ (52,500) Accounts receivable, net of allowance for doubtful accounts 2,544,770 2,491,230 Inventory 75,000 60,000 Prepaid expenses and other current assets 34,274 5,691 ---------- ---------- Total current assets 2,645,548 2,504,421 PROPERTY AND EQUIPMENT, NET 50,640 54,926 OTHER ASSETS 10,913 10,913 ------------ ------------ Total assets $ 2,707,101 $ 2,570,260 ------------ ------------ ------------ ------------ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Notes payable $ 238,988 $ 342,064 Accounts payable -- trade 1,775,562 2,013,730 Accrued liabilities 733,883 98,916 ------------ ------------ Total liabilities 2,748,433 2,454,710 STOCKHOLDERS' EQUITY Common stock, 4,000 shares authorized, no par value, 4,000 shares issued and outstanding 25,000 25,000 Retained earnings (deficit) (66,332) 90,550 ------------ ------------ Total stockholders' equity (41,332) 115,550 ------------ ------------ Total liabilities and stockholders' equity $ 2,707,101 $ 2,570,260 ------------ ------------ ------------ ------------ SOCRATES, INC. STATEMENTS OF OPERATIONS SIX MONTHS YEAR ENDED ENDED JUNE 30, 1996 DECEMBER 31, 1995 ------------- ----------------- (Unaudited) (Unaudited) Sales $ 6,414,368 $ 12,398,889 Cost of Sales 5,464,971 10,780,283 ------------ ------------- Gross profit 949,397 1,618,606 Expenses Selling and Administrative 1,098,779 1,544,285 Depreciation and amortization 7,500 31,939 ------------ ------------- 1,106,279 1,576,224 ------------ ------------- Earnings (loss) from operations (156,882) 42,382 Interest income 0 2,804 Interest and financing expense 0 0 ------------ ------------- Earnings (loss) before taxes (156,882) 45,186 Income tax provision Current 0 42,416 Deferred 0 -- ------------ ------------- 0 42,416 ------------ ------------- NET EARNINGS (LOSS) $ (156,882) $ 2,770 ------------ ------------- ------------ ------------- MVSI, INC. AND SUBSIDIARIES PRO FORMA CONSOLIDATED BALANCE SHEET JUNE 30, 1996 (UNAUDITED) ASSETS MVSI, INC. PRO FORMA HISTORICAL ADJUSTMENTS(1) AS ADJUSTED ----------- ------------ ----------- CURRENT ASSETS Cash $ 579,927 $ (8,496) $ 571,431 Cash equivalents 7,500,762 -- 7,500,762 Accounts receivable, net of allowance for doubtful accounts 2,778,098 2,544,770 5,322,868 Inventory 1,434,580 75,000 1,509,580 Tax credits and income tax receivable 274,609 -- 274,609 Prepaid expenses 192,473 34,274 226,747 ---------- ---------- ---------- Total current assets 12,760,449 2,645,548 15,405,997 PROPERTY AND EQUIPMENT, NET 194,889 50,640 245,529 CAPITALIZED SOFTWARE 1,034,753 -- 1,034,753 GOODWILL 423,650 2,430,083 2,853,733 DEFERRED TAX ASSET 224,265 -- 224,265 OTHER ASSETS 92,313 10,913 103,226 ---------- ---------- ---------- Total assets $14,730,319 $ 5,137,184 $19,867,503 ---------- ---------- ---------- ---------- ---------- ---------- LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Line of credit $ 382,353 $ -- $ 382,353 Current portion of long-term debt 9,818 238,988 248,806 Shareholder loans 200,556 -- 200,556 Advance deposits 6,000 -- 6,000 Accounts payable and accrued liabilities 1,069,434 2,509,446 3,578,880 ---------- ---------- ---------- Total liabilities 1,668,161 2,748,434 4,416,595 STOCKHOLDERS' EQUITY Common stock, 50,000,000 shares authorized, $.01 par value, 10,390,000 shares issued and outstanding, historical, 10,740,000 shares, pro forma 103,900 3,500 107,400 Stock subscription receivable (150,000) -- (150,000) Additional paid in capital 18,185,343 2,385,250 20,570,593 Accumulated deficit (5,103,540) -- (5,103,540) Unrealized loss on investments available for sale (59,824) -- (59,824) Cumulative translation adjustment 86,279 -- 86,279 ---------- ---------- ---------- Total stockholders' equity 13,062,158 2,388,750 15,450,908 ---------- ---------- ---------- Total liabilities and stockholders' equity $14,730,319 $ 5,137,184 $19,867,503 ---------- ---------- ---------- ---------- ---------- ---------- - --------------- (1) The pro forma consolidated balance sheet reflects the acquisition of Socrates, Inc. as if it had occurred on June 30, 1996. The acquisition of Socrates is accounted for as a purchase business combination. The cost in excess of the fair value of net assets acquired (goodwill) of approximately $2,430,000 will be amortized using an estimated life of ten years. The pro forma information should be read in conjunction with the Company's historical financial statements. In addition, the pro forma data presented is not necessarily indicative of the effect of the transaction had it occurred on June 30, 1996. MVSI, INC. AND SUBSIDIARIES PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS NINE MONTHS ENDED JUNE 30, 1996 (UNAUDITED) MVSI, INC. PRO FORMA HISTORICAL ADJUSTMENTS (1) PRO FORMA ---------- --------------- --------- Sales $ 9,858,955 $ 9,514,091 $19,373,046 Cost of Sales 6,826,698 8,161,730 14,988,428 ---------- ---------- ---------- Gross profit 3,032,257 1,352,361 4,384,618 Expenses Selling 353,265 122,626 475,891 Administrative 1,569,709 748,120 2,317,829 Research and development, net of tax credits 190,758 -- 190,758 Depreciation and amortization 73,294 15,560 88,854 Goodwill amortization -- 182,256 182,256 ---------- ---------- ---------- 2,187,026 1,068,562 3,255,588 ---------- ---------- ---------- Earnings (loss) from operations 845,231 283,799 1,129,030 Interest income 354,656 -- 354,656 Interest and financing charges (39,326) -- (39,326) ---------- ---------- ---------- Earnings (loss) before taxes 1,160,561 283,799 1,444,360 Income tax provision (benefit) Current -- -- 0 Deferred (224,265) -- (224,265) ---------- ---------- ---------- (224,265) -- (224,265) ---------- ---------- ---------- NET EARNINGS (LOSS) $ 1,384,826 $ 283,799 $ 1,668,625 ---------- ---------- ---------- ---------- ---------- ---------- Earnings (loss) per share $0.13 $0.02 $0.15 ----- ----- ----- ----- ----- ----- - --------------- (1) The pro forma consolidated income statement for the nine months ended June 30, 1996, reflects the acquisition of Socrates, Inc. as if it were consummated on October 1, 1995, accounted for as a purchase business combination. The cost in excess of the fair value of net assets acquired (goodwill) of approximately $2,430,000 will be amortized using an estimated life of ten years and amortization applicable to the above is reflected in the above statement. The pro forma information above excludes as non-recurring $600,000 bonus payment to a stockholder. The pro forma information is not necessarily indictative of the results of operations which would have resulted had the acquisition occurred on October 1, 1995. The pro forma information should be read in conjunction with the Company's historical financial statements. MVSI, INC. AND SUBSIDIARIES PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS YEAR ENDED SEPTEMBER 30, 1995 (UNAUDITED) MVSI, INC. PRO FORMA HISTORICAL ADJUSTMENTS (1) PRO FORMA ---------- -------------- ----------- Sales $ 2,337,797 $ 11,498,533 $13,836,330 Cost of Sales 1,506,508 10,155,211 11,662,119 ---------- ---------- ---------- Gross profit 830,889 1,343,322 2,174,211 Expenses Selling 485,995 314,601 800,596 Administrative 1,186,052 953,805 2,139,857 Research and development, net of tax credits 1,115,295 -- 1,115,295 Depreciation and amortization 20,838 26,541 47,379 Goodwill amortization -- 243,008 243,008 ---------- ---------- ---------- 2,808,180 1,537,955 4,346,135 ---------- ---------- ---------- Earnings (loss) from operations (1,977,291) (194,633) (2,171,924) Interest income 51,120 -- 51,120 Interest and financing charges (55,282) -- (55,282) Interest expense--private placement (3,500,000) -- (3,500,000) ---------- ---------- ---------- Earnings (loss) before taxes (5,481,453) (194,633) (5,676,086) Income tax provision (benefit) Current -- -- -- Deferred -- -- -- ---------- ---------- ---------- -- -- -- ---------- ---------- ---------- NET EARNINGS (LOSS) $(5,481,453) $ (194,633) $(5,676,086) ---------- ---------- ---------- ---------- ---------- ---------- Earnings (loss) per share $1.10 $0.04 $ (1.06) ----- ----- ----- ----- ----- ----- - --------------- (1) The pro forma consolidated income statement for the year ended September 30, 1995, reflects the acquisition of Socrates, Inc. as if it were consummated on October 1, 1994, accounted for as a purchase business combination. The cost in excess of the fair value of net assets acquired (goodwill) of approximately $2,430,000 will be amortized using an estimated life of ten years and amortization applicable to the above is reflected in the above statement. The pro forma information is not necessarily indicative of the finanicial position which would have resulted had the acquisition occurred on October 1, 1994. The pro forma adjustments reflect Socrates activity for the 12 month period ended December 31, 1995. The pro forma information should be read in conjunction with the Company's historical financial statements. -----END PRIVACY-ENHANCED MESSAGE-----