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): November 12, 1997
ADVANCED ELECTRONIC SUPPORT PRODUCTS, INC.
-----------------------------------------------
(Exact name of registrant as specified in its charter)
Florida 001-12739 59-2327-381
- - -------------------------------------------------------------------------------
(State or other (Commission File (I.R.S. Employer
jurisdiction Number) Identification
of incorporation) No.)
1810 N.E. 144th Street
North Miami, Florida 33181
----------------------------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code: (305) 944-7710
N/A
----------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
Item 7. Financial Statements and Exhibits.
This Form 8-K amends the information contained in Item 5 of the
Quarterly Report on Form 10-QSB for the quarter ended September 30, 1997 for
Advanced Electronic Support Products, Inc. (the "Company") with respect to an
acquisition by the Company of all of the capital stock of Dataholding AS, a
Norwegian limited company ("Dataholding"). This Form 8-K includes both the
financial statements of Dataholding which are required to be filed pursuant to
Item 7(a) of Form 8-K, as well as the pro forma financial statements of the
Company and Dataholding required to be filed pursuant to Item 7(b) of Form 8-K,
with respect to that transaction.
2
<PAGE>
TABLE OF CONTENTS
A. FINANCIAL STATEMENTS OF DATAHOLDING AS
FOR PERIOD ENDED DECEMBER 31, 1996
Independent Auditors Report........................................ 5
Norwegian GAAP Income Statement.................................... 6
Norwegian GAAP Balance Sheet....................................... 7
Norwegian GAAP Statement of Cash Flow.............................. 9
Notes to Norwegian GAAP Financial Statements....................... 10
FOR PERIOD ENDED SEPTEMBER 30, 1997
Unaudited Balance Sheet at September 30, 1997...................... 14
Unaudited Income Statement for the Nine Months Ended September 30,
1997...................................................... 15
Unaudited Statement of Stockholder's Equity for the Nine Months
Ended September 30, 1997.................................. 16
Unaudited Statement of Cash Flows for the Nine Months Ended
September 30, 1997........................................ 17
Notes to Unaudited Financial Statements............................ 18
B. PRO FORMA FINANCIAL INFORMATION OF THE COMPANY AND DATAHOLDING
Unaudited Pro Forma Condensed Consolidated Balance Sheet at
September 30, 1997........................................ 20
3
<PAGE>
Unaudited Pro Forma Condensed Consolidated Income Statement for the
Year Ended December 31, 1995.............................. 21
Unaudited Pro Forma Condensed Consolidated Income Statement for the
Year Ended December 31, 1996.............................. 22
Unaudited Pro Forma Condensed Consolidated Income Statement for the
Period Ended September 30, 1997........................... 23
Notes to Unaudited Pro Forma Condensed Consolidated Financial
Statements................................................ 24
4
<PAGE>
[LETTERHEAD OF DELOITTE & TOUCHE]
Translation from the original Norwegian version
To the Annual Shareholders' Meeting of Dataholding AS
AUDITOR'S REPORT FOR 1996
We have audited the annual report and accounts of Dataholding AS for 1996 which
show a profit for the year of NOK 2.014.492 for the parent company and a
consolidated profit for the year of NOK 2.014.537. The annual report and
accounts, which comprise the Board of Directors' report, profit and loss
account, balance sheet, statement of cash flow and notes to the accounts and
consolidated accounts, are presented by the company's Board of Directors and its
managing director.
Our responsibility is to examine the company's annual report and accounts, its
accounting records and other related matters.
We have conducted our audit in accordance with relevant laws, regulations and
Norwegian generally accepted auditing standards. We have performed those audit
procedures which we have considered necessary to confirm that the annual report
and accounts are free of material misstatements. We have examined, on a test
basis, the evidence supporting the accounts and assessed the accounting
principles applied, the estimates made by management, and the content and
presentation of the annual report and accounts. To the extent required by
Norwegian generally accepted auditing standards we have reviewed the company's
internal control and the management of its financial affairs.
The Board of Directors' proposal for the application of the profit and equity
transfers for the year is in accordance with the requirements of the Norwegian
Joint-Stock Companies Act.
In our opinion, the annual report and accounts have been prepared in accordance
with the requirements of the Norwegian Joint-Stock Companies Act and present
fairly the financial position of the company and of the group as of December 31,
1996 and the result of its operations for the financial year, in accordance with
Norwegian generally accepted accounting principles.
Oslo, April 10, 1997
DELOITTE & TOUCHE
Jacob Berger (sign)
State Authorized Public Accountant (Norway)
5
<PAGE>
<TABLE>
<CAPTION>
DATAHOLDING AS
CONSOLIDATED INCOME STATEMENTS FOR YEAR ENDED DECEMBER 31 (NGAAP)
1996 1996 1995
USD NOK NOK
<S> <C> <C> <C> <C>
OPERATING REVENUES AND EXPENSE NOTE
4,531,944 Sales income 29.197.052 24.974.094
73,058 Other operating income 470.673 243.640
- - --------------- -------------- --------------
4,605,002 Total operating revenues 29.667.725 25.217.734
- - --------------- -------------- --------------
2,711,891 Cost of goods sold 17.471.359 14.847.172
876,427 Payroll and related costs 5.646.379 4.731.987
500,513 Other operating expenses 7 3.224.557 4.137.789
46,004 Depreciation 5 296.381 105.188
17,797 Bad debt expense 2 114.659 237.839
- - --------------- -------------- --------------
4,152,633 Total operating expense 26.753.335 24.059.975
- - --------------- -------------- --------------
452,369 Operating income 2.914.390 1.157.759
- - --------------- -------------- --------------
Financial income and expenses
16,691 Interest income 107.534 70.102
22,948 Other financial income 147.842 26.738
(25,908) Interest expenses (166,913) (339.172)
- - --------------- -------------- --------------
13,731 Net financial income (expense) 88.463 (242.332)
- - --------------- -------------- --------------
466,101 Income before taxes 3.002.853 915.427
- - --------------- -------------- --------------
153,406 Income tax expense 10 988.316 218.383
- - --------------- -------------- --------------
312,695 Net income 2.014.537 697.044
=============== ============== ==============
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
DATAHOLDING AS
CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31 (NGAAP)
1996 1996 1995
USD NOK NOK
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
412,331 Cash and bank deposits 1 2.656.441 817.832
694,964 Accounts receivable 2 4.477.303 3.439.400
83,168 Other short term receivables 535.808 288.504
42,214 Prepaids 271.965 64.375
712,843 Inventories 3 4.592.493 4.555.531
- - --------------- -------------- --------------
1,945,520 Total current assets 12.534.010 9.165.642
- - --------------- -------------- --------------
NON CURRENT ASSETS
102,072 Non marketable securities 4 657.600 600.000
7,761 Machinery and equipment 5 50.000 346.381
0 Buildings 5 0 509.424
- - --------------- -------------- --------------
109,833 Total non current assets 707.600 1.455.805
- - --------------- -------------- --------------
2,055,353 Total assets 13.241.610 10.621.447
=============== ============== ==============
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
DATAHOLDING AS
CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31 (NGAAP)
1996 1996 1995
USD NOK NOK
<S> <C> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
0 Bank overdrafts 0 1.023.233
192,495 Payroll tax withheld, VAT and duty payable 1.240.147 955.563
153,406 Taxes payable 10 988.316 218.383
432,119 Accounts payable 2.783.929 2.249.614
97,567 Other short term liabilities 628.575 508.200
232,829 Dividend proposed 1.500.000 500.000
- - --------------- -------------- --------------
1,108,416 Total current liabilities 7.140.967 5.454.993
- - --------------- -------------- --------------
LONG TERM LIABILITIES
73,108 Long term debt less current portion 470.999 648.332
- - --------------- -------------- --------------
73,108 Total long term liabilities 470.999 648.332
- - --------------- -------------- --------------
SHAREHOLDERS' EQUITY
382,272 Share capital (492.558 shares at NOK 5) 9 2.462.790 2.462.790
333,399 Legal reserve 2.147.923 770.254
0 Special tax reserve 0 170.144
- - --------------- -------------- --------------
715,671 Total undistributable reserves 4.610.713 3.403.188
158,158 Distributable equity 1.018.931 1.114.934
- - --------------- -------------- --------------
873,829 Total shareholders' equity 11 5.629.644 4.518.122
- - --------------- -------------- --------------
2,055,353 Total liabilities and shareholders' equity 13.241.610 10.621.447
=============== ============== ==============
1,407,807 Mortgages 6 9.069.796 9.057.272
40,357 Guarantees given 8 260.000 260.000
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
DATAHOLDING AS
STATEMENT OF CASH FLOW CONSOLIDATED FOR YEAR ENDED DECEMBER 31, (NGAAP)
1996 1996 1995
USD NOK NOK
<S> <C> <C> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES
302,731 Cash provided by the year's operations *) 1.950.342 802.232
(5,737) +/- Changes in inventory (36.962) (738.501)
(164,447) +/- Changes in receivables (1.059.448) 1.413.780
82,936 +/- Changes in accounts payable 534.315 (383.706)
(51,769) +/- Changes in accruals (333.519) (419.423)
- - --------------- -------------- --------------
163,714 A = Net cash provided by operating activities 1.054.728 674.382
- - --------------- -------------- --------------
CASH FLOW FROM INVESTING ACTIVITIES
96,236 + Proceeds from sale of fixed assets 620.000 0
131,936 +/- Changes in other capital assets 850.000 0
- - --------------- -------------- --------------
228,172 B = Net cash provided by investing activities 1.470.000 0
- - --------------- -------------- --------------
CASH FLOW FROM FINANCING ACTIVITIES
776 + Proceeds from issue of new debt 5.000 20.000
(27,525) - Payments to settle debt (177.331) (316.668)
(77,610) - Dividends paid (500.000) 0
- - --------------- -------------- --------------
(104,359) C = Net cash provided by financing activities (672.331) (296.668)
- - --------------- -------------- --------------
287,528 Net change in cash and cash equivalents 1.852.397 377.714
124,803 + Cash and cash equivalents, beginning of year 804.044 440.118
- - --------------- -------------- --------------
412,331 = Cash and cash equivalents, end of year 2.656.441 817.832
- - --------------- -------------- --------------
*) Specification:
312,695 Net income 2.014.537 697.044
(55,968) - Income on disposal of capital assets (360.576) 0
46,004 + Depreciations 296.381 105.188
- - --------------- -------------- --------------
302,731 = Cash provided by the year's operations 1.950.342 802.232
=============== ============== ==============
</TABLE>
9
<PAGE>
DATAHOLDING AS
NOTES TO THE FINANCIAL STATEMENTS 1996 (NGAAP)
IN GENERAL
At the end of year Dataholding AS had two 100% owned subsidiaries.
Jotec Norge AS
Data Distribusjon AS
CONSOLIDATION
All material transactions and intercompany balances have been eliminated. Shares
in subsidiaries are consolidated in accordance with the purchase method.
NOTE 1 - RESTRICTED CASH IN BANK
Cash and bank deposits includes USD 39,887 which is restricted and relates to
withheld payroll tax. The amount covers the withheld payroll tax liability as of
December 31, 1996.
NOTE 2 - ACCOUNTS RECEIVABLE
Accounts receivable are recorded at face value less provision for bad debts of
USD 31,044 (1995: 31,148).
BAD DEBT EXPENSE CONSISTS OF: 1996 1995
Realized losses 21,988 33,813
Collection on previous write-offs (1,087) 0
Change in the bad debt allowance (3,104) 3,104
-------------- -------------
Bad debt expense 17,797 36,917
-------------- -------------
NOTE 3 - INVENTORIES
Inventories is stated at cost price.
1996 1995
Inventories at cost 790.191 728.318
Write-down of inventories (77.348) (21.212)
-------------- -------------
Book value 712.843 707.106
-------------- -------------
NOTE 4 - NON MARKETABLE SECURITIES
SHARE CAPITAL PAR VALUE BOOK VALUE
Norges Bedrifter Media AS NOK 220.000 100.000 a 0,50 657.600
USD 34,148 102.072
10
<PAGE>
DATAHOLDING AS
NOTES TO THE FINANCIAL STATEMENTS 1996 (NGAAP)
NOTE 5 - PROPERTY, MACHINERY AND EQUIPMENT
MACHINERY,
EQUIPMENT BUILDINGS TOTAL
Cost at January 1, 1996 256.708 87.466 344.174
Additions at cost 0 0 0
Disposals at cost 0 87.466 87.466
-------------------------- --------
Cost at December 31, 1996 256.708 0 256.708
Accumulated depreciation (248.947) 0 (248.947)
-------------------------- --------
Book value at December 31, 1996 7.761 0 7.761
-------------------------- --------
Depreciation 1996 46.004 0 46.004
-------------------------- --------
Declining balance depreciation rate 20-30%
There has been an extraordinary write-down of machinery and equipment of USD
29,677.
NOTE 6 - LONG-TERM LIABILITIES
As collateral for long-term liabilities and bank overdraft account the following
assets are mortgaged: Inventories and accounts receivable. Book value of
mortgaged assets are USD 712,843 and USD 694,964 which gives a total of USD
1,407,807.
NOTE 7 - LEASE OBLIGATIONS
The company has no lease obligations as of December 31, 1996 beyond that of an
ordinary rental agreement which expires March 31, 1998.
NOTE 8 - GUARANTEES
Guarantee has been made for the amount of USD 40,357 in favor of ABB Miljo Norsk
Viftebabrikk AS as guarantee for the rental agreement.
NOTE 9 - SHARE CAPITAL
On October 31, 1996, an extraordinary general meeting was held in Dataholding
AS. It was decided that the share capital should be written down with USD
305,817 for repayment to the share holders.
11
<PAGE>
DATAHOLDING AS
NOTES TO THE FINANCIAL STATEMENTS 1996 (NGAAP)
NOTE 10 - INCOME TAXES
Taxable income 547.877
-----------
Nominal tax rate 28%
Current income tax expense 153.406
-----------
Deferred tax asset 31.450
-----------
The income tax refers to Dataholding AS.
In accordance with the preliminary Norwegian accounting standard for income
taxes, temporary differences which give a rise to deferred tax assets and
deferred tax liabilities are netted. According to the preliminary Norwegian
accounting standard, the net deferred tax assets as of December 31, 1996 could
not be presented as an asset in the balance sheet.
NOTE 11 - SHAREHOLDERS' EQUITY
Shareholders' equity at the beginning of year 701.299
Net Income 312.695
Proposed dividend (232.829)
Profit on disposal of inactive subsidiary 92.664
-----------
Shareholders' equity at the end of year 873.829
-----------
12
<PAGE>
NOTE 12 - RECONCILIATION
Reconciliation of Norwegian generally accepted accounting principles to United
States generally accepted accounting principles are set forth below. The Company
intends to seek to have Dataholding's accountants to include this reconciliation
in their report and will file their amended report when it is obtained.
<TABLE>
<CAPTION>
DATAHOLDING AS
ADJUSTMENTS NGAAP - USGAAP
NGAAP USGAAP USGAAP
------------------- ------------------ -----------------
1996 1995 1996 1995 1996 1995
NOK NOK NOK NOK USD USD
<S> <C> <C> <C> <C> <C> <C>
CURRENT PORTION LONG
TERM DEBT
Other short term liabilities 628.575 508.200 388.575 191.532 60,314 291,729
Current portion long term debt 0 0 240.000 316.688 37,253 49,153
DIVIDEND
Dividend proposed 1.500.000 500.000 0 0 0 0
DEFERRED TAX ASSET
CURRENT ASSETS
Current deferred tax asset 0 0 165.083 64.100 25,624 9,950
NON CURRENT ASSET
Non current deferred tax asset 0 0 37.535 0 5,826 0
INCOME TAXES
Income tax payable 988.316 216.311 988.316 218.383 153,406 33,897
Deferred tax 0 0 (138.518) 41.682 (21,500) 6,470
Income tax expense 988.316 216.311 849.798 260.065 13,906 40,367
DISTRIBUTABLE EQUITY
Distributable equity 1.018.931 1.722.534 1.018.931 1.722.534 158,158 267,370
Proposed dividend 0 0 1.500.000 500.000 232,829 77,610
Distributable equity 1.018.931 1.722.534 2.518.931 2.222.534 390,987 344,980
FOREIGN CURRENCY
The translation rate used is 6,4425 which is the rate on 12/31/96. The translation rate was 6,3190 on 12/31/95.
</TABLE>
13
<PAGE>
DATAHOLDING AS
CONDENSED CONSOLIDATED BALANCE SHEET
September 30, 1997
(UNAUDITED)
ASSETS
Current
Cash $ 32,252
Accounts receivable 619,462
Inventories 482,899
Prepaid expenses and other current assets 152,002
-------------
Total current assets 1,286,615
Investments 42,240
Property, plant & equipment 65,216
Intangible assets -
Other assets 31,450
-------------
TOTAL ASSETS $ 1,425,521
=============
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Notes payable - current portion $ -
Accounts payable and accrued expenses 298,766
Income taxes payable 216,948
-------------
Total current liabilities 515,714
Notes payable - long term portion 105,326
Notes payable shareholders -
-------------
TOTAL LIABILITIES 621,040
SHAREHOLDER'S EQUITY
Preferred Stock -
Common stock (492,588 shares at NOK 1) (See Note 2) 76,454
Paid-in Capital -
Retained earnings 768,128
Cumulative foreign currency translation (40,101)
-------------
TOTAL SHAREHOLDER'S EQUITY 804,481
-------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $ 1,425,521
=============
14
<PAGE>
<TABLE>
<CAPTION>
DATAHOLDING AS
CONDENSED CONSOLIDATED INCOME SHEET
For the Nine Months Ended September 30, 1997
(UNAUDITED)
9 MONTHS 9 MONTHS
ENDED 9/30/96 ENDED 9/30/97
------------------ ------------------
<S> <C> <C>
NET SALES $ 3,196,479 $ 3,371,605
OPERATING EXPENSES
Cost of sales 1,818,418 2,027,243
Selling, general & administrative 1,025,424 1,084,585
------------------ ------------------
Total operating expenses 2,843,842 3,111,828
------------------ ------------------
INCOME FROM OPERATIONS 352,637 259,777
OTHER INCOME AND (EXPENSE)
Interest (6,109) (1,576)
Other
------------------ ------------------
INCOME BEFORE TAXES 346,528 258,201
PROVISION FOR INCOME TAXES 115,054 93,000
------------------ ------------------
NET INCOME $ 231,474 $ 165,201
================== ==================
</TABLE>
15
<PAGE>
<TABLE>
<CAPTION>
DATAHOLDING AS
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY
For Nine Months Ended September 30, 1997
(UNAUDITED)
COMMON PAID-IN RETAINED CURRENCY
STOCK CAPITAL EARNINGS TRANSLATION TOTAL
<S> <C> <C> <C>
Total at December 31, 1996 $382,272 $755,836 $1,138,108
Total Net Income 165,201 165,201
Total dividends and distributions (152,909) (152,909)
Return of Share Capital
(See Note 2) (305,818)
Cumulative foreign currency
translation (40,101) (40,101)
----------------------------------------------------------------------
Total at December 31, 1996 $ 76,454 $ - $768,128 $ (40,101) $1,110,299
======================================================================
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
DATAHOLDING AS
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the Nine Months Ended September 30, 1997
(UNAUDITED)
<S> <C>
OPERATING ACTIVITIES
Net Income $ 165,201
Adjustments to reconcile net income to net cash
provided by (used in) operating activities: 20,000
Depreciation and amortization
(increase) decrease in: -
Accounts receivable 158,670
Inventories 230,144
Prepaid expenses and other current assets (84,364)
Investments 59,832
Deferred offering costs and other assets (25,624)
Increase (decrease) in:
Bank overdraft (37,253)
Accounts payable and accrued expenses (386,162)
Income taxes payable 63,542
-------------
Net cash provided by (used in) operating activities 163,986
INVESTING ACTIVITIES:
Additions to property and equipment (77,455)
-------------
Net cash used in investing activities (77,455)
FINANCING ACTIVITIES:
Net proceeds (payments) on borrowings 32,218
Return of Share Capital (See Note 2) (305,818)
Dividend distributions (152,909)
-------------
Net cash provided by (used in) financing activities (426,509)
NET INCREASE (DECREASE) IN CASH (339,978)
Effect of exchange rate changes on cash (40,101)
CASH, AT BEGINNING OF PERIOD 412,331
-------------
CASH, AT END OF PERIOD $ 32,252
=============
</TABLE>
17
<PAGE>
DATAHOLDING AS
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. Basis of presentation
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments, except for
the adjustment to record deferred taxes, considered necessary for a fair
presentation have been included. Operating results for the nine month period
ended September 30, 1997 are not necessarily indicative of operating results
that may be expected for the year ending December 31, 1997.
2. Return of Capital
On October 31, 1996 an extraordinary general meeting of the Dataholding Board of
Directors was held. Due to recent change in Norwegian tax regulations it was
decided that share capital should be repaid to shareholders. The share value of
shares was reduced from NOK 5 to NOK 1 and the amount of approximately $305, 818
was returned to shareholders during 1997.
3. Subsequent Event
On November 12, 1997 all of the outstanding shares of Dataholding were acquired
by Advanced Electronic Support Products, Inc. for 360,000 shares of Advanced
Electronic Support Products, Inc. common stock.
18
<PAGE>
ADVANCED ELECTRONIC SUPPORT PRODUCTS, INC.
AND SUBSIDIARIES AND DATAHOLDING AS
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The following unaudited pro forma condensed consolidated financial statements
give effect to the acquisition as of November 12, 1997 of Dataholding as if the
acquisition were effected as of December 31, 1996, or at the beginning of the
period presented. The acquisition was accounted for as a pooling of interest.
The following unaudited pro forma condensed consolidated balance sheet presents
the pro forma consolidated position of the Company as of September 30, 1997 as
if the acquisition of Dataholding were effected as of December 31, 1996.
The following unaudited pro forma condensed consolidated income statements for
the years ended December 31, 1995 and 1996 and for the nine month period ended
September 30 , 1997 presents the results of the combined company as if the
acquisition of Dataholding had been effected as of January 1, 1995.
The unaudited pro forma statements are presented for illustrative purposes only
and are not necessarily indicative of the operating results or financial
position that would have occurred if the acquisition of Dataholding had taken
place at the times stated above, nor is it necessarily indicative of future
operating results or financial position.
19
<PAGE>
<TABLE>
<CAPTION>
ADVANCED ELECTRONIC SUPPORT PRODUCTS, INC.
AND SUBSIDIARIES AND DATAHOLDING AS
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 1997
PRO FORMA
AESP DATAHOLDING ADJUSTMENTS NOTES AS ADJUSTED
<S> <C> <C> <C> <C> <C>
ASSETS
Current
Cash $ 522,821 $ 32,252 $ 555,073
Accounts receivable 3,758,899 619,462 4,378,361
Inventories 4,866,466 482,899 5,349,365
Prepaid expenses and other current assets 354,595 152,002 506,597
---------------------------------------------------------------------------
Total current assets 9,502,781 1,286,615 10,789,396
Investments - 42,240 42,240
Property, plant & equipment 388,458 65,216 453,674
Intangible assets 736,312 - 736,312
Other assets 60,000 31,450 91,450
---------------------------------------------------------------------------
TOTAL ASSETS $ 10,687,551 $ 1,425,521 $ 12,113,072
===========================================================================
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Notes payable - current portion $ - $ - $ -
Accounts payable and accrued expenses 1,895,831 298,766 2,194,597
Income taxes payable 164,728 216,948 381,676
---------------------------------------------------------------------------
Total current liabilities 2,060,559 515,714 2,576,273
Notes payable - long term portion - 105,326 105,326
Notes payable shareholders 1,439,125 - 1,439,125
---------------------------------------------------------------------------
TOTAL LIABILITIES 3,499,684 621,040 4,120,724
SHAREHOLDERS EQUITY
Preferred stock - - -
Common stock 1,923 76,454 (76,094) 1 2,283
Paid-in Capital 6,713,167 - 76,094 1 6,789,261
Retained earnings 487,933 768,128 1,256,061
Cumulative foreign currency translation (15,156) (40,101) (55,257)
---------------------------------------------------------------------------
TOTAL SHAREHOLDER'S EQUITY 7,187,867 804,481 7,992,348
---------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $ 10,687,551 $ 1,425,521 $ 12,113,072
===========================================================================
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
ADVANCED ELECTRONIC SUPPORT PRODUCTS, INC.
AND SUBSIDIARIES AND DATAHOLDING AS
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1995
PRO FORMA
AESP DATAHOLDING ADJUSTMENTS AS ADJUSTED
<S> <C> <C> <C> <C>
NET SALES $ 13,721,014 $ 3,914,278 $ 17,635,292
OPERATING EXPENSES
Cost of sales 8,507,520 2,304,567 10,812,087
Selling, general & administrative 3,870,686 1,430,004 5,300,690
--------------------------------------------------------------
Total operating expenses 12,378,206 3,734,571 - 16,112,777
--------------------------------------------------------------
INCOME FROM OPERATIONS 1,342,808 179,707 - 1,522,515
OTHER INCOME AND (EXPENSE)
Interest (81,245) 15,031 (66,214)
Other 73,911 (52,646) 21,265
--------------------------------------------------------------
INCOME BEFORE TAXES 1,335,474 142,092 - 1,477,566
PROVISION FOR INCOME TAXES 44,680 33,897 139,970
--------------------------------------------------------------
NET INCOME $ 1,290,794 $ 108,195 $ - $ 1,337,596
==============================================================
PRO FORMA AMOUNTS
Income before income taxes 1,335,474 142,092 - 1,477,566
Provision for income taxes 483,680 33,897 517,577
--------------------------------------------------------------
Pro forma net income $ 851,794 $ 108,195 $ - $ 959,989
==============================================================
Pro forma net income per share $ 0.68 $ 0.30 $ 0.60
Weighted average number of shares of common
stock outstanding 1,252,028 - 360,000 1,612,028
==============================================================
</TABLE>
21
<PAGE>
<TABLE>
<CAPTION>
ADVANCED ELECTRONIC SUPPORT PRODUCTS, INC.
AND SUBSIDIARIES AND DATAHOLDING AS
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE TWELVE MONTHS ENDED DECEMBER 31,1996
PRO FORMA
AESP DATAHOLDING ADJUSTMENTS AS ADJUSTED
<S> <C> <C> <C> <C>
NET SALES $ 13,707,642 $ 4,605,002 $ 18,312,644
OPERATING EXPENSES
Cost of sales 7,925,280 2,711,891 10,637,171
Selling, general & administrative 4,636,301 1,440,741 6,077,042
--------------------------------------------------------------
Total operating expenses 12,561,581 4,152,632 - 16,714,213
--------------------------------------------------------------
INCOME FROM OPERATIONS 1,146,061 452,370 - 1,598,431
OTHER INCOME AND (EXPENSE)
Interest (153,586) 13,731 (139,855)
Other 113,803 92,664 206,467
--------------------------------------------------------------
INCOME BEFORE TAXES 1,106,278 558,765 - 1,665,043
PROVISION FOR INCOME TAXES 8,064 131,906 139,970
--------------------------------------------------------------
NET INCOME $ 1,098,214 $ 426,859 $ - $ 1,525,073
==============================================================
PRO FORMA AMOUNTS
Income before income taxes 1,106,278 558,765 - 1,665,043
Provision for income taxes 393,064 131,906 524,970
--------------------------------------------------------------
Pro forma net income $ 713,214 $ 426,859 $ - $ 1,140,073
==============================================================
Pro forma net income per share $ 0.57 $ - $ 0.71
Weighted average number of shares of common
stock outstanding 1,252,028 - 360,000 1,612,028
==============================================================
Supplemental pro forma net income per share $ - $ - $ 0.66
==============================================================
</TABLE>
22
<PAGE>
<TABLE>
<CAPTION>
ADVANCED ELECTRONIC SUPPORT PRODUCTS, INC.
AND SUBSIDIARIES AND DATAHOLDING AS
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997
PRO FORMA
AESP DATAHOLDING ADJUSTMENTS AS ADJUSTED
<S> <C> <C> <C> <C>
NET SALES $ 11,146,954 $ 3,371,605 $ 14,518,559
OPERATING EXPENSES
Cost of sales 6,548,191 2,027,243 8,575,434
Selling, general & administrative 3,986,484 1,084,585 5,071,069
--------------------------------------------------------------
Total operating expenses 10,534,675 3,111,828 - 13,646,503
--------------------------------------------------------------
INCOME FROM OPERATIONS 612,279 259,777 - 872,056
OTHER INCOME AND (EXPENSE)
Interest (113,531) (1,576) (115,107)
Other 10,686 10,686
--------------------------------------------------------------
INCOME BEFORE TAXES 509,434 258,201 - 767,635
PROVISION FOR INCOME TAXES 191,532 93,000 284,532
--------------------------------------------------------------
NET INCOME $ 317,902 $ 165,201 $ - $ 483,103
==============================================================
PRO FORMA AMOUNTS
Income before income taxes 509,434 258,201 - 767,635
Provision for income taxes 202,572 93,000 295,572
--------------------------------------------------------------
Pro forma net income $ 306,862 $ 165,201 $ - $ 472,063
==============================================================
Pro forma net income per share $ 0.19 $ 0.46 $ 0.21
Weighted average number of shares of common
stock outstanding 1,926,383 - 360,000
2,286,383
==============================================================
Supplemental pro forma net income per share $ - - $ 0.21
==============================================================
</TABLE>
23
<PAGE>
ADVANCED ELECTRONIC SUPPORT PRODUCTS, INC.
AND SUBSIDIARIES AND DATAHOLDING AS
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. To record the effect of the issuance of 360,000 shares of Advanced Electronic
Support Products, Inc. common stock, par value $.001 per share, in exchange for
all of the outstanding shares of Dataholding AS.
24
<PAGE>
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.
ADVANCED ELECTRONIC SUPPORT
PRODUCTS, INC.
Date: JANUARY 26, 1997 By: /s/ SLAV STEIN
-------------------------------------
Slav Stein, President and
Chief Executive Officer
25
