SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a- 16 or 15d-16 of the
Securities Exchange Act of 1934
1st quarter statements dated December 31, 1999
Eiger Technology, Inc.
818 Erie St.
Stratford, ON
N4Z 1A2
[Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40- F]
Form 20-F |X| Form 40-F |_|
[Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information by the
Commission pursuant to Rule 12g3-2(b) under the Securities Act of 1934.]
Yes |X| No |_|
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, thereunto duly authorized.
Eiger Technology, Inc.
Date: April 4, 2000 Mr. Gerry A. Racicot
President
<PAGE>
Eiger
Technology, Inc
Management Review
Eiger Technology, Inc. (Eiger) has accomplished its primary strategy of
high growth with profitability. It's acquisition of a controlling interest in
Eiger Labs Group, Inc. and its sister company, Point Multimedia Systems, Inc. in
Seoul, South Korea with R & D and manufacturing facilities, has successfully
increased its business and launched its new products in the world-wide market.
Gerry Racicot, president of Eiger, is pleased to announce that our OEM
business is going from strength to strength with new customers and business per
customer increasing. The increase in OEM business reflects the leading edge
design and manufacturing expertise of our Point facility.
Y.K. Kim, president of Eiger Lab Group, Inc. said, "The second generation,
EigerMan 2000, was well received at the consumer electronics show in Las Vegas
with trade interest extremely high. This fully featured MP3 player is exciting
to the marketplace making it possible for Eiger to maintain a prominent position
in the marketplace"
Eigers, DSL modem has been specified with major U.S. and world-wide
consumers for delivery in June, 2000. Point has also opened its new
manufacturing facility in Seoul, increasing its in house capacity by 150% to a
monthly 250,000 unit sale rate.
Once again, Eiger has proven and solidified its business strategy into a
phenomenal success. Eiger's projections and estimates are now a reality as a
designer and manufacturer of leading edge, cost competitive, high-tech products
in the computer peripheral, MP3 and DSL arenas.
<PAGE>
EIGER TECHNOLOGY, INC.
Unaudited Consolidated Balance Sheet
- --------------------------------------------------------------------------------
December 31 1999 1998
- --------------------------------------------------------------------------------
$ $
Assets
Current
Cash and Marketable Securities 3,303,000 0
Accounts Receivable 9,433,000 1,919,000
Due from Related Parties 18,000 24,000
Inventories 8,309,000 4,404,000
Prepaid Expenses 202,000 76,000
---------- ----------
21,265,000 6,423,000
Capital (Net of Depreciation) 2,304,000 1,871,000
Long-term Investments 342,000 1,238,000
Other 4,080,000 588,000
---------- ----------
27,991,000 10,120,000
========== ==========
Liabilities and Shareholders' Equity
Current
Bank Indebtedness 1,066,000 1,757,000
Accounts Payable and Accrued Liabilities 11,408,000 3,107,000
Income Taxes Payable 360,000 43,000
Current Portion of Lease Obligation 17,000 81,000
Current Portion of Long-term Debt 120,000 289,000
---------- ----------
12,971,000 5,277,000
---------- ----------
Long-term
Obligation Under Capital Lease 0 10,000
Long-term Debt 2,250,000 1,427,000
---------- ----------
2,250,000 1,437,000
---------- ----------
Future Income Tax Liabilities 175,000 169,000
---------- ----------
Non-Controlling Interest 1,474,000 229,000
---------- ----------
Shareholders' Equity
Share Capital 11,287,000 2,176,000
Contributed Surplus 217,000 217,000
Retained Earnings (Deficit) -383,000 615,000
---------- ----------
11,121,000 3,008,000
---------- ----------
27,991,000 10,120,000
========== ==========
On Behalf of the Board:
signed Gerry Racicot Director
Signed Keith Attoe Director
<PAGE>
EIGER TECHNOLOGY, INC.
Unaudited Statement of Consolidated Operations and Retained Earnings
- --------------------------------------------------------------------------------
For the three months ended December 31 1999 1998
- --------------------------------------------------------------------------------
$ $
Sales 18,169,000 2,453,000
Cost of Sales 16,462,000 1,991,000
---------- ----------
Gross Margin 1,707,000 462,000
---------- ----------
Expenses
Operating and Administrative 1,257,000 440,000
Management Fees 69,000 69,000
Amortization of Capital Assets 99,000 35,000
Amortization of Goodwill and Other Assets 82,000 18,000
Interest on Long-term Debt 12,000 38,000
Other Interest and Bank Charges 106,000 50,000
---------- ----------
1,625,000 650,000
---------- ----------
Income (Loss) from Operations 82,000 -188,000
Other Income 750,000 0
---------- ----------
Net Income (Loss) before Income Taxes 832,000 -188,000
Provision for Income Taxes 127,000 -35,000
---------- ----------
Net Income (Loss) before Non-controlling Interest 705,000 -153,000
Non-controlling Interest 85,000 -62,000
---------- ----------
Net Income (Loss) for the Period 620,000 -91,000
Retained Earnings (Deficit), Beginning of Period -401,000 706,000
Capital Distribution - Foreign Subsidiary -409,000 0
Costs Related to Issuance of Share Capital -193,000 0
---------- ----------
Retained Earnings (Deficit), End of Period -383,000 615,000
========== ==========
<PAGE>
EIGER TECHNOLOGY, INC.
Unaudited Statement of Consolidated Changes in Financial Position
- --------------------------------------------------------------------------------
For the three months ended December 31 1999 1998
- --------------------------------------------------------------------------------
$ $
Cash Provided (Used In)
Operating Activities
Net Income (Loss) for the Period 620,000 -91,000
Items not Involving Cash
Amortization 181,000 53,000
Changes in Non-Cash
Operating Accounts
Accounts Receivable -4,206,000 174,000
Inventories -4,303,000 -1,182,000
Prepaid Expenses 67,000 -33,000
Accounts Payable 8,613,000 745,000
Income Taxes Payable 123,000 -11,000
Non-controlling Interest 85,000 -63,000
---------- ----------
1,180,000 -408,000
---------- ----------
Investment Activities
Purchase of Capital Assets -347,000 0
Long-term Investments 0 -27,000
Other Assets -730,000 -20,000
---------- ----------
-1,077,000 -47,000
---------- ----------
Financing Activities
Capital Lease Obligation -20,000 -29,000
Other Long-term Debt 1,159,000 29,000
Common Shares Issued 2,184,000 0
Costs Related to Issuance of Share Capital -193,000 0
Capital Distribution - Foreign Subsidiary -409,000 0
---------- ----------
2,721,000 0
---------- ----------
Increase (Decrease) in Cash Position During Period 2,824,000 -455,000
Cash Position, Beginning of Period -587,000 -1,302,000
---------- ----------
Cash Position, End of Period 2,237,000 -1,757,000
========== ==========
Analysis of Cash Position:
Cash and Marketable Securities 3,303,000 0
Bank Indebtedness -1,066,000 -1,757,000
---------- ----------
2,237,000 -1,757,000
========== ==========
<PAGE>
Eiger Technology, Inc.
Supplementary Information
As at December 31, 1999
Schedule A:
Financial Information - see unaudited consolidated financial statements
Schedule B:
#1 - See attached schedule of Administrative Expenses
- See consolidated financial statements
#2 a) Options Exercised - October 1st to December 31,1999
- Philip Cassis 50,000 @ .80
- Robert Hoegler 25,000 @ .75
#2 b) Options Granted - October 1st to December 31,1998
Tony Francolini 100,000 1.40 10/25/04
Gerry A. Racicot 250,000 1.40 10/25/04
Bev Boorsma 5,000 1.40 10/25/04
Scott St. Amand 8,000 1.40 10/25/04
Leslie Babb 5,000 1.40 10/25/04
Paul Bates 20,000 1.40 10/25/04
Ray Dirks 500,000 1.47 11/17/02
George Swan 25,000 1.40 11/25/02
#3 a) 23,302,858 shares issued and outstanding
#3 b) Outstanding Options:
NAME # OF SHARES PRICE EXPIRY DATE
Ken Rampersad 50,000 .55 05/01/00
Keith Attoe 50,000 .60 09/08/00
Keith Attoe 100,000, .90 11/11/00
Walter Keyser 50,000 .70 09/30/00
Beverly Boorsma 15,000 .85 11/07/00
Ken Rampersad 50,000 .85 04/17/00
Keith Attoe 100,000 .85 04/17/00
Dingerman Kleppe 30,000 .85 04/17/00
<PAGE>
Walter Keyser 100,000 .85 04/17/00
Robert Kim 200,000 .60 04/02/01
Steve Kim 50,000 .60 04/02/01
Robert Kim 350,000 .60 04/02/01
Cheon Hong Kim 25,000 .80 06/25/00
Tony Francolini 100,000 1.40 10/25/04
Gerry A. Racicot 250,000 1.40 10/25/04
Bev Boorsma 5,000 1.40 10/25/04
Scott St. Amand 8,000 1.40 10/25/04
Leslie Babb 5,000 1.40 10/25/04
Paul Bates 20,000 1.40 10/25/04
Ray Dirks 500,000 1.47 11/17/02
George Swan 25,000 1.40 11/25/02
#3 c) Total number of shares in escrow - nil
#3 d) List of Directors
Gerry Racicot Walter Keyser
Robert Hoegler Keith Attoe
Ernest Kolenda Morden C. Lazarus
Sidney Harkema
<PAGE>
EIGER TECHNOLOGY, INC.
Notes to the Financial Statements December 31, 1999
Reconciliation to U.S. GAAP:
Revelant differences between accounting principles generlly accepted in Canada
("Cdn.GAAP") compared to those principles generally accepted in the United
States of America ("U.S. GAAP") are as follows:
None.
Reconciliations:
1999 1998
$ $
Net Income
- per Cdn. GAAP 620,000 -91,000
- per U.S. GAAP 620,000 -91,000
Retained Earnings (Deficit)
- End of Period per Cdn. GAAP -383,000 615,000
- Adjustments re Depreciable Life
of Computer Equipment -30,000 -30,000
- Future Income Tax Adjustment 12,000 12,000
- End of Year per U.S. GAAP -401,000 597,000
Total Assets
- per Cdn. GAAP 27,991,000 10,120,000
- Adjustments re Depreciable Life
of Computer Equipment -30,000 -30,000
- Deferred Tax Adjustment 12,000 12,000
- per U.S. GAAP 27,973,000 10,102,000
