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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: August 24, 2000
(Date of earliest event reported)
Alysis Technologies, Inc.
(Exact name of registrant as specified in its charter)
Delaware 0021539 94-3161772
(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
1900 Powell Street, Suite 500
Emeryville, California 94608
(Address of principal executive offices)
(510) 450-7000
(Registrant's telephone number, including area code)
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Item 2. Acquisition or Disposition of Assets
On August 24, 2000, Alysis Technologies, Inc. (the "Registrant")
completed the sale of its CheckVision(R) Business and certain other
assets and liabilities (the "Asset Sale") to Computer Sciences
Corporation, a Nevada corporation ("CSC"), pursuant to the terms of an
Asset Purchase Agreement between the Registrant and CSC dated August 16,
2000. The Registrant received a cash purchase price of $3.98 million (the
"Purchase Price") from CSC in consideration for the Asset Sale. Pursuant
to the terms of the Asset Purchase Agreement, $500,000 of the Purchase
Price has been deposited in escrow for a period of twelve months to
secure the payment by CSC of any amounts that may become due under the
indemnification provisions of the Asset Purchase Agreement. The Purchase
Price was determined through a series of negotiations in an arms length
transaction between the Registrant and Purchaser. The Registrant intends
to use the proceeds of the Asset Sale to further strengthen its
WorkOut(R) product`s position in the e-presentment marketplace.
The summary of the provisions of the Agreement set forth above is
qualified in its entirety by reference to the Asset Purchase Agreement
filed herewith as Exhibit 2.1.
Item 7. Financial Statements, Pro Forma Financial Information, and Exhibits
(a) Not applicable.
(b). Pro Forma Financial Information.
The following unaudited pro forma condensed financial statements
of the Company are based on its audited financial statements included in
the 1999 Form 10-K and its unaudited financial statements included in the
Second Quarter Form 10-Q, adjusted where appropriate to give pro forma
effect to the transactions described below.
The Unaudited Pro Forma Condensed Balance Sheet gives pro forma
effect to the Asset Sale as if it had occurred on June 30, 2000. The
Unaudited Pro Forma Condensed Statement of Operations for the year ended
December 31, 1999 gives pro forma effect to the Asset Sale as if it had
occurred immediately prior to January 1, 1999. The Unaudited Pro Forma
Condensed Statement of Operations for the six months ended June 30, 2000
gives pro forma effect to the Asset Sale as if it had occurred
immediately prior to January 1, 2000. Further details about the pro forma
adjustments are set forth in notes appearing at the end of the unaudited
pro forma condensed financial statements.
These statements are not necessarily indicative of the actual
financial position or results of operations of the Company as of the date
or for the periods indicated or the financial position or results of
operations that the Company would have experienced if the transactions for
which the statements give pro forma effect had in fact occurred at the
times assumed. Also, the statements do not purport to represent the
Company's future financial position or results of operations.
These statements should be read in conjunction with Management's
Discussion and Analysis of Financial Condition and Results of Operations
and the Financial Statements included in the 1999 Form 10-K and the
Second Quarter Form 10-Q.
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ALYSIS TECHNOLOGIES, INC.
PRO FORMA CONDENSED BALANCE SHEET
June 30, 2000
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
Pro Forma
Historical Adjustments (1) Pro Forma
-----------------------------------------
<S> <C> <C> <C>
Assets
Current assets:
Cash and cash equivalents.............................. $ 2,316 $ 3,476 $ 5,792
Restricted cash........................................ - 500 500
Receivables, net....................................... 1,725 (1,020) 705
Other current assets................................... 270 (3) 267
-----------------------------------------
Total current assets.................................. 4,311 2,953 7,264
Property and equipment, net.............................. 852 (103) 749
Other assets............................................. 58 58
Intangible assets........................................ 1,912 1,912
-----------------------------------------
$ 7,133 $ 2,850 $ 9,983
=========================================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable...................................... $ 488 $ 488
Accrued compensation and related liabilities.......... 1,303 $ (120) 1,183
Deferred revenues..................................... 2,833 (1,598) 1,235
Other accrued liabilities............................. 794 (171) 623
-----------------------------------------
Total current liabilities.......................... 5,418 (1,889) 3,529
Stockholders' equity:
Preferred shares, Series B 3,814 3,814
Common stock 110 110
Class B common stock 25 25
Additional paid-in capital............................ 30,328 869 31,197
Treasury stock at cost................................ (39) (39)
Accumulated deficit................................... (32,403) 3,870 (28,533)
Deferred stock compensation........................... (124) (124)
Foreign currency translation adjustment............... 4 4
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Total stockholders' equity......................... 1,715 4,739 6,454
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$ 7,133 $ 2,850 $ 9,983
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</TABLE>
The accompanying notes are an integral part of these pro forma condensed
financial statements.
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ALYSIS TECHNOLOGIES, INC.
PRO FORMA CONDENSED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
(in thousands, except per share data)
(unaudited)
<TABLE>
<CAPTION>
Pro Forma
Historical Adjustments (2) Pro Forma
------------- ------------------ ----------
<S> <C> <C> <C>
Revenues:
License.................................................. $ 7,623 $ (7,266) $ 357
Service.................................................. 7,290 (6,390) 900
Maintenance.............................................. 4,899 (2,959) 1,940
------------- ----------------- ----------
Total revenues.......................................... 19,812 (16,615) 3,197
Cost of revenues:
License.................................................. 77 (77) -
Service.................................................. 4,334 (761) 3,573
Maintenance.............................................. 2,129 (371) 1,758
------------- ----------------- ----------
Total cost of revenues.................................. 6,540 (1,209) 5,331
Operating expenses:
Sales and marketing...................................... 4,476 (590) 3,886
General and administrative............................... 7,582 (580) 7,002
Product development...................................... 1,874 1,874
------------- ----------------- ----------
Total operating expenses................................ 13,932 (1,170) 12,762
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Loss from operations....................................... (660) (14,236) (14,896)
Other income:
Interest income.......................................... 349 349
Other income............................................. - -
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Loss before income taxes (311) (14,236) (14,547)
Provision for income taxes - -
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Net loss................................................... (311) (14,236) (14,547)
Preferred stock dividends.................................. 117 117
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Net loss applicable to common stockholders................. $ (428) (14,236) $(14,664)
============= ================= ==========
Basic and diluted net loss per share applicable to common
stockholders............................................. $ (.03) $ (1.19)
============ ==========
Shares used in computing basic and diluted net loss per
share applicable to common stockholders.................. 12,326 12,326
============ ==========
</TABLE>
The accompanying notes are an integral part of these pro forma condensed
financial statements.
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ALYSIS TECHNOLOGIES, INC.
PRO FORMA CONDENSED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000
(in thousands, except per share data)
(unaudited)
<TABLE>
<CAPTION>
Pro Forma
Historical Adjustments (3) Pro Forma
------------ ------------------ -------------
<S> <C> <C> <C>
Revenues:
License.................................................. $ 1,831 $ (1,771) $ 60
Service.................................................. 1,227 (745) 482
Maintenance.............................................. 2,076 (1,385) 691
----------- ----------------- ------------
Total revenues.......................................... 5,134 (3,901) 1,233
Cost of revenues:
License.................................................. 23 (23) -
Service.................................................. 648 (481) 167
Maintenance.............................................. 962 (310) 652
----------- ----------------- ------------
Total cost of revenues.................................. 1,633 (814) 819
Operating expenses:
Sales and marketing...................................... 3,131 (373) 2,758
General and administrative............................... 5,918 (681) 5,237
Product development...................................... 2,214 - 2,214
----------- ----------------- ------------
Total operating expenses................................ 11,263 (1,054) 10,209
----------- ----------------- ------------
Loss from operations...................................... (7,762) (2,033) (9,795)
Other income:
Interest income.......................................... 142 142
Other income............................................. 4 4
----------- ----------------- ------------
Loss before income taxes (7,616) (2,033) (9,649)
Provision for income taxes (17) (17)
----------- ----------------- ------------
Net loss.................................................. (7,633) (2,033) (9,666)
Preferred stock dividends................................. 138 138
----------- ----------------- ------------
Net loss applicable to common stockholders................ $ (7,771) $ (2,033) $ (9,804)
=========== ================= ============
Basic and diluted net loss per share applicable to common
stockholders............................................. $ (.59) $ (.74)
=========== ============
Shares used in computing basic and diluted net loss per
share applicable to common stockholders.................. 13,258 13,258
=========== ============
</TABLE>
The accompanying notes are an integral part of these pro forma condensed
financial statements.
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NOTES TO UNAUDITED PRO FORMA
CONDENSED FINANCIAL STATEMENTS
Unaudited Pro Forma Condensed Balance Sheet Notes
(1) The pro forma adjustments for the unaudited pro forma condensed balance
sheet as of June 30, 2000 assume that the sale of assets and assumption of
liabilities related to the CheckVision(R) Business and an adjustment of
approximately $869,000 to additional paid-in capital for a one-time stock
compensation charge incurred for new stock option grants and modifications
made to existing stock options to employees terminated in the sale had
occurred as of that date. In connection with the Asset Sale, the Company
received cash proceeds of $3.98 million; (which includes $500,000
deposited in escrow for a period of twelve months) and the Purchaser
assumed liabilities in the aggregate of approximately $1.89 million. The
Company recorded a gain of approximately $3.87 million related to the
Asset Sale.
Unaudited Pro Forma Condensed Statement of Operations Notes
(2) The pro forma adjustments for the unaudited pro forma condensed statement of
operations for the year ended December 31, 1999 assume that revenue from the
CheckVision(R) Business and associated costs and direct operating expenses
(principally compensation and related benefits of terminated employees)
reduce on a pro forma basis to reflect the Asset Sale as if it had occurred
immediately prior to January 1, 1999. These pro forma adjustments exclude a
one-time stock compensation charge of approximately $869,000 incurred at the
date of the Asset Sale for new stock option grants and modifications made to
existing stock option to employees terminated in the sale.
(3) The pro forma adjustments for the unaudited pro forma condensed statement of
operations for the six months ended June 30, 2000 assume that revenue from
the CheckVision(R) Business and associated costs and direct operating
expenses (principally compensation and related benefits of terminated
employees) reduce on a pro forma basis to reflect the Asset Sale as if it
had occurred immediately prior to January 1, 2000. These pro forma
adjustments exclude a one-time stock compensation charge of approximately
$869,000 incurred at the date of the Asset Sale for stock option grants and
modifications made to existing stock options to employees terminated in the
sale.
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(c) Exhibits
2.1 Asset Purchase Agreement, dated as of August 16, 2000, between the
Registrant and Computer Sciences Corporation.
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.
ALYSIS TECHNOLOGIES, INC.
Dated: September 08, 2000 By: /s/ David R. Bankhead
-----------------------
David R. Bankhead
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INDEX TO EXHIBITS
Exhibit
Number Description
------ -----------------------------------------------------------------
2.1 Asset Purchase Agreement dated as of August 16, 2000 between the
Registrant and Computer Sciences Corporation.