-----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, R3Q6AFS2W0PsRAfkVCu2wodw59FHfrdwKFaAhcnmrp9R5i/1gjE9cT0QLWdYvH+B qeJAzVefEtT1mgCl4McN6g== 0000931763-03-000117.txt : 20030121 0000931763-03-000117.hdr.sgml : 20030120 20030121090956 ACCESSION NUMBER: 0000931763-03-000117 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030121 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030121 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DYNAMIC HEALTH PRODUCTS INC CENTRAL INDEX KEY: 0000949925 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-CATALOG & MAIL-ORDER HOUSES [5961] IRS NUMBER: 341711778 STATE OF INCORPORATION: FL FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-23031 FILM NUMBER: 03518666 BUSINESS ADDRESS: STREET 1: 6950 BRYAN DAIRY ROAD STREET 2: STE 325 CITY: LARGO STATE: FL ZIP: 33777 BUSINESS PHONE: 8136280804 MAIL ADDRESS: STREET 1: 5905-A HAMPTON OAKS PARKWAY CITY: TAMPA STATE: FL ZIP: 33610 FORMER COMPANY: FORMER CONFORMED NAME: DIRECT RX INC DATE OF NAME CHANGE: 19970820 FORMER COMPANY: FORMER CONFORMED NAME: NU WAVE HEALTH PRODUCTS INC DATE OF NAME CHANGE: 19980410 8-K/A 1 d8ka.htm PERIOD: JANUARY 21, 2003 Period: January 21, 2003
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 
FORM 8-K/A
 
 
CURRENT REPORT
 
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported) November 22, 2002
 
 
Dynamic Health Products, Inc.
(Exact name of registrant as specified in its charter)
 
 
Florida
   
0-23031
   
34-1711778
(State or other jurisdiction of
   
(File Number)
   
(I.R.S. Employer
incorporation)
        
Identification No.)
 
 
12399 Belcher Road South, Suite 160
     
                    Largo, Florida                    
   
33773
(Address of principal executive offices)
   
(Zip Code)
 
 
Registrant’s telephone number, including area code: (727) 324-6667

 
ITEM 7.    FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
 
Here are the financial statements and pro forma financial information, along with exhibits, to be included on Form 8-K dated November 22, 2002, for Dynamic Health Products, Inc.’s distribution of 1,933,000 shares of common stock of DrugMax, Inc. to its shareholders.
 
(b)
 
Pro forma financial information required pursuant to Article 11 of Regulation S-X:
 
Item
   
Page
Dynamic Health Products, Inc. And Subsidiaries Unaudited Pro Forma Condensed Consolidated Financial Statements
     
Unaudited Pro Forma Condensed Consolidated Balance Sheet as of September 30, 2002
   
5
Unaudited Pro Forma Condensed Consolidated Statement of Operations for the
Six Months Ended September 30, 2002
   
6
Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements as of and for
the Six Months Ended September 30, 2002
   
7
Unaudited Pro Forma Condensed Consolidated Statement of Operations for
the Year Ended March 31, 2002
   
8
Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements for
the Year Ended March 31, 2002
   
9
 
(c)
 
Exhibits in accordance with the provisions of Item 601 of Regulation S-K:
 
Exhibit No.
   
Description
99
   
Audited Financial Statements of Dynamic Health Products, Inc. as of March 31, 2002.(1)
 
 
(1)
 
Incorporated by reference to the Company’s Annual Report on Form 10-KSB for the fiscal year ended March 31, 2002, file number 0-23031, filed in Washington, D.C. on June 28, 2002.
 
 

-2-

 
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 here unto duly authorized.
 
 
   
DYNAMIC HEALTH PRODUCTS, INC.
Date: January 21, 2003
  
/s/    Cani I. Shuman
       
Cani I. Shuman, Chief Financial Officer

-3-
EX-99 3 dex99.htm AUDITED FINANCIAL STATEMENTS OF DYNAMIC HEALTH Audited Financial Statements of Dynamic Health
DYNAMIC HEALTH PRODUCTS, INC. AND SUBSIDIARIES
Unaudited Pro Forma Condensed Consolidated Financial Statements
 
The unaudited pro forma data presented in the unaudited pro forma condensed consolidated balance sheet and statements of operations are included in order to illustrate the effect on the Company’s financial statements of the transaction described below:
 
On November 22, 2002, the Company distributed 1,933,000 shares of DrugMax, Inc. common stock to its shareholders, pursuant to the October 10, 2002 approval by the Company’s Board of Directors of a dividend distribution to holders of record of its issued and outstanding common shares as of October 10, 2002. Subsequent to the distribution, the Company owns no shares of DrugMax, Inc. common stock.
 
For purposes of the pro forma balance sheet as of September 30, 2002, adjustments are presented as if the distribution had occurred on September 30, 2002. For purposes of the pro forma statement of operations for the six months ended September 30, 2002, adjustments are presented as if the distribution had occurred on April 1, 2002. For purposes of the pro forma statement of operations for the year ended March 31, 2002, adjustments are presented as if the distribution had occurred on April 1, 2001.
 
The pro forma information is based on the following historical financial statements after giving effect to the transaction and the assumptions and adjustments in the accompanying notes to the unaudited pro forma condensed consolidated financial statements.
 
The unaudited condensed consolidated financial statements of the Company as of and for the six months ended September 30, 2002 (as filed on the Company’s Quarterly Report on Form 10-QSB for the quarterly period ended September 30, 2002), and
 
The audited consolidated financial statements of the Company as of and for the year ended March 31, 2002 (as filed on the Company’s Annual Report on Form 10-KSB for the fiscal year ended March 31, 2002).
 
These unaudited pro forma condensed consolidated financial statements may not be indicative of the results that actually would have occurred if the transaction had been in effect on the date indicated or which may be obtained in the future.
 
In the opinion of management, all adjustments have been made that are necessary to present fairly the pro forma data.
 
The unaudited pro forma condensed consolidated financial statements should be read in conjunction with the Company’s Audited Consolidated Financial Statements and the Notes thereto.

-4-

DYNAMIC HEALTH PRODUCTS, INC. AND SUBSIDIARIES
Unaudited Pro Forma Condensed Consolidated Balance Sheet
September 30, 2002
 
    
Historical
     
Pro Forma
  
    
Dynamic
Health Products, Inc.
     
Adjustments for
Disposition
       
As Adjusted
  
Assets:
                             
Current assets:
                             
Cash and cash equivalents
   
$
276,932
 
   
$
—  
 
     
$
276,932
 
Certificate of deposit
   
 
45,368
 
   
 
—  
 
     
 
45,368
 
Marketable equity securities, net
   
 
4,196
 
   
 
—  
 
     
 
4,196
 
Accounts receivable, net
   
 
119,335
 
   
 
—  
 
     
 
119,335
 
Inventories
   
 
103,174
 
   
 
—  
 
     
 
103,174
 
Prepaid expenses
   
 
58,309
 
   
 
—  
 
     
 
58,309
 
Other current assets
   
 
114,406
 
   
 
—  
 
     
 
114,406
 
Due from affiliates
   
 
2,683
 
   
 
—  
 
     
 
2,683
 
Due from related parties
   
 
—  
 
   
 
—  
 
     
 
—  
 
Notes receivable, net
   
 
—  
 
   
 
—  
 
     
 
—  
 
Notes receivable from affiliate
   
 
35,907
 
   
 
—  
 
     
 
35,907
 
    
  
    
Total current assets
   
 
760,310
 
   
 
—  
 
     
 
760,310
 
Property, plant and equipment, net
   
 
1,399,323
 
   
 
—  
 
     
 
1,399,323
 
Intangible assets, net
   
 
25,205
 
   
 
—  
 
     
 
25,205
 
Investments in unconsolidated affiliates
   
 
4,375,818
 
   
 
(3,800,074
)(a)
     
 
575,744
 
Notes receivable
   
 
1,071,027
 
   
 
—  
 
     
 
1,071,027
 
Note receivable from affiliate
   
 
—  
 
   
 
—  
 
     
 
—  
 
Other assets, net
   
 
15,489
 
   
 
—  
 
     
 
15,489
 
    
  
    
Total assets
   
$
7,647,172
 
   
$
(3,800,074
)
     
$
3,847,098
 
    
  
    
Liabilities and Shareholders’ Equity:
                             
Current liabilities:
                             
Accounts payable
   
$
238,812
 
   
$
—  
 
     
$
238,812
 
Other payables
   
 
163,918
 
   
 
—  
 
     
 
163,918
 
Current portion of long-term obligations
   
 
41,057
 
   
 
—  
 
     
 
41,057
 
Accrued expenses
   
 
45,153
 
   
 
642,000 
(b)
     
 
687,153
 
Obligations to affiliates
   
 
34,863
 
   
 
—  
 
     
 
34,863
 
    
  
    
Total current liabilities
   
 
523,803
 
   
 
642,000
 
     
 
1,165,803
 
Deferred income taxes
   
 
1,096,782
 
   
 
(848,058
)(c)
     
 
248,724
 
Long-term obligations, less current portion
   
 
879,430
 
   
 
—  
 
     
 
879,430
 
    
  
    
Total liabilities
   
 
2,500,015
 
   
 
(206,058
)
     
 
2,293,957
 
    
  
    
Commitments and contingencies
                             
Shareholders’ equity:
                             
Series A Convertible Preferred stock, $.01 par value; 400,000 shares authorized; no shares issued and outstanding
   
 
—  
 
   
 
—  
 
     
 
—  
 
Series B 6% Cumulative Convertible Preferred stock, $.01 par value;
800,000 shares authorized; no shares issued and outstanding
   
 
—  
 
   
 
—  
 
     
 
—  
 
Common stock, $.01 par value; 20,000,000 shares authorized;
3,082,875 shares issued and outstanding
   
 
30,828
 
   
 
—  
 
     
 
30,828
 
Additional paid-in capital
   
 
2,538,144
 
   
 
—  
 
     
 
2,538,144
 
Retained earnings
   
 
2,644,117
 
   
 
(1,383,824
)(d)
           
             
 
(2,416,250
)(e)
           
             
 
206,058
 (f)
     
 
(949,899
)
Accumulated other comprehensive income:
                             
Unrealized losses on marketable equity securities
   
 
(65,932
)
   
 
—  
 
     
 
(65,932
)
    
  
    
Total shareholders’ equity
   
 
5,147,157
 
   
 
(3,594,016
)
     
 
1,553,141
 
    
  
    
Total liabilities and shareholders’ equity
   
$
7,647,172
 
   
$
(3,800,074
)
     
$
3,847,098
 
    
  
    
 
See notes to unaudited pro forma condensed consolidated financial statements.
 

-5-

DYNAMIC HEALTH PRODUCTS, INC.
Unaudited Pro Forma Condensed Consolidated Statement Of Operations
For the Six Months Ended September 30, 2002
 
    
Historical
     
Pro Forma
  
    
Dynamic
Health
Products, Inc.
     
Adjustments
For
Disposition
     
As Adjusted
  
Revenues
   
$
420,402
 
   
$
—  
 
   
$
420,402
 
Cost of goods sold
   
 
166,481
 
   
 
—  
 
   
 
166,481
 
    
  
  
Gross profit
   
 
253,921
 
   
 
—  
 
   
 
253,921
 
Selling, general and administrative expenses
   
 
518,675
 
   
 
—  
 
   
 
518,675
 
    
  
  
Operating loss before other income and expense
   
 
(264,754
)
   
 
—  
 
   
 
(264,754
)
Other income (expense):
                           
Interest income
   
 
57,680
 
   
 
—  
 
   
 
57,680
 
Gain on distribution
   
 
—  
 
   
 
869,261
(a)
   
 
869,261
 
Other income and expenses, net
   
 
99,343
 
   
 
—  
 
   
 
99,343
 
Equity in income (loss) of affiliated companies
   
 
(3,538,730
)
   
 
3,494,265
(b)
   
 
(44,465
)
Losses on marketable equity securities, net
   
 
(21,570
)
   
 
—  
 
   
 
(21,570
)
Interest expense
   
 
(34,043
)
   
 
—  
 
   
 
(34,043
)
    
  
  
Total other income (expense)
   
 
(3,437,320
)
   
 
4,363,526
 
   
 
926,206
 
    
  
  
Net income (loss) before income taxes
   
 
(3,702,074
)
   
 
4,363,526
 
   
 
661,452
 
Income tax expense (benefit)
   
 
(1,328,400
)
   
 
733,199
(c)
   
 
(595,201
)
    
  
  
Net income (loss)
   
 
(2,373,674
)
   
 
3,630,327
 
   
 
1,256,653
 
Preferred stock dividends
   
 
—  
 
   
 
—  
 
   
 
—  
 
    
  
  
Net income (loss) available to common shareholders
   
$
(2,373,674
)
   
$
3,630,327
 
   
$
1,256,653
 
    
  
  
Basic income (loss) per share
   
$
(0.77
)
            
$
0.41
 
    
           
Basic weighted average number of common shares outstanding
   
 
3,072,258
 
            
 
3,072,258
 
    
           
Diluted income (loss) per share
   
$
(0.77
)
            
$
0.41
 
    
           
Diluted weighted average number of common shares outstanding
   
 
3,072,258
 
            
 
3,072,258
 
    
           
 
See notes to unaudited pro forma condensed consolidated financial statements.

-6-

DYNAMIC HEALTH PRODUCTS, INC. AND SUBSIDIARIES
Notes To Unaudited Pro Forma Condensed Consolidated Financial Statements
September 30, 2002
 
(1)
 
The unaudited pro forma balance sheet gives effect to the distribution as if it had occurred on September 30, 2002.
 
Adjustments reflect the following:
 
(a)
 
Reflects the elimination of the investment in DrugMax, Inc.
 
(b)
 
Reflects the current accrued income tax liability resulting from the distribution.
 
(c)
 
Reflects the reduction in the deferred tax liability.
 
(d)
 
Reflects the loss on the distribution of the investment.
 
(e)
 
Reflects the reduction due to the dividend.
 
(f)
 
Reflects the net income tax benefit.
 
 
(2)
 
The unaudited pro forma statement of operations gives effect to the distribution as if it had occurred on April 1, 2002.
 
Adjustments reflect the following:
 
(a)
 
Reflects the gain on the distribution.
 
(b)
 
Reflects the decrease in equity in loss of affiliated companies.
 
(c)
 
Reflects the decrease in income tax benefit.

-7-

DYNAMIC HEALTH PRODUCTS, INC.
Unaudited Pro Forma Condensed Consolidated Statement Of Operations
For the Year Ended March 31, 2002
 
    
Historical
     
Pro Forma
  
    
Dynamic
Health
Products, Inc.
     
Adjustments
For
Disposition
     
Consolidated
  
    
(Audited)
            
(Unaudited)
  
Revenues
   
$
845,981
 
   
$
—  
 
   
$
845,981
 
Cost of goods sold
   
 
267,528
 
   
 
—  
 
   
 
267,528
 
    
  
  
Gross profit
   
 
578,453
 
   
 
—  
 
   
 
578,453
 
Operating expenses:
                           
Selling, general and administrative expenses
   
 
1,330,240
 
   
 
—  
 
   
 
1,330,240
 
Bad debt expense
   
 
839,518
 
   
 
—  
 
   
 
839,518
 
    
  
  
Total operating expenses
   
 
2,169,758
 
   
 
—  
 
   
 
2,169,758
 
Operating loss before other income and expense
   
 
(1,591,305
)
   
 
—  
 
   
 
(1,591,305
)
Other income (expense):
                           
Interest income
   
 
111,942
 
   
 
—  
 
   
 
111,942
 
Gain on distribution
   
 
—  
 
   
 
1,082,324
 (a)
   
 
1,082,324
 
Gain on transfer of equity securities
   
 
301,107
 
   
 
—  
 
   
 
301,107
 
Gains on exchanges of equity securities
   
 
83,344
 
   
 
—  
 
   
 
83,344
 
Gain (loss) on sale of assets
   
 
(4,655
)
   
 
—  
 
   
 
(4,655
)
Other income and expenses, net
   
 
388,653
 
   
 
—  
 
   
 
388,653
 
Equity in income (loss) of affiliated companies
   
 
627,959
 
   
 
(647,096
)(b)
   
 
(19,137
)
Losses on marketable equity securities, net
   
 
(18,789
)
   
 
—  
 
   
 
(18,789
)
Interest expense
   
 
(143,632
)
   
 
—  
 
   
 
(143,632
)
    
  
  
Total other income (expense)
   
 
1,345,929
 
   
 
435,228
 
   
 
1,781,157
 
    
  
  
Income (loss) from continuing operatings before income taxes
   
 
(245,376
)
   
 
435,228
 
   
 
189,852
 
Income tax expense (benefit)
   
 
(765,460
)
   
 
(716,063
)(c)
   
 
(1,481,523
)
    
  
  
Income from continuing operations
   
 
520,084
 
   
$
1,151,291
 
   
$
1,671,375
 
             
  
Discontinued operations:
                           
Loss from operations of Dynamic Life Korea Ltd., income taxes not applicable
   
 
(473,232
)
                  
Gain on sale of Dynamic Life Korea Ltd., less applicable income taxes of $594,172
   
 
985,709
 
                  
    
                 
Net income
   
 
1,032,561
 
                  
Preferred stock dividends
   
 
4,191
 
                  
    
                 
Net income available to common shareholders
   
$
1,028,370
 
                  
    
                 
Basic income per share from continuing operations
   
$
0.18
 
            
$
0.57
 
                      
Basic income per share from discontinued operations
   
 
0.17
 
                  
    
                 
Basic income per share
   
$
0.35
 
                  
    
                 
Basic weighted average number of common shares outstanding
   
 
2,934,579
 
            
 
2,934,579
 
    
           
Diluted income per share from continuing operations
   
$
0.16
 
            
$
0.51
 
                      
Diluted income per share from discontinued operations
   
 
0.16
 
                  
    
                 
Diluted income per share
   
$
0.32
 
                  
    
                 
Diluted weighted average number of common shares outstanding
   
 
3,263,209
 
            
 
3,263,209
 
    
           
 
See notes to unaudited pro forma condensed consolidated financial statements.

-8-

DYNAMIC HEALTH PRODUCTS, INC. AND SUBSIDIARIES
Notes To Unaudited Pro Forma Condensed Combined Financial Statements
March 31, 2002
 
(1)
 
The unaudited pro forma statement of operations gives effect to the distribution as if it had occurred on April 1, 2002.
 
Adjustments reflect the following:
 
(a)
 
Reflects the gain on the distribution.
 
(b)
 
Reflects the decrease in equity in income of affiliated companies.
 
(c)
 
Reflects the net increase in income tax benefit.

-9-
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