<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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) AUGUST 31, 2000.
COMPOSITE SOLUTIONS, INC.
-------------------------
(Exact name of registrant as specified in its charter)
FLORIDA 000-24551 65-0790758
-------------------------------------------------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
3655 NOBEL DRIVE, SUITE 440, SAN DIEGO, CA 92122
------------------------------------------ -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 858-459-4843
------------
-------------------------------------------------------------
(Former name or former address, if changed since last report)
This Form 8-K/A amends the Form 8-K filed on September 15, 2000 by Composite
Solutions, Inc., a Florida Corporation formerly known as JS Business Works,
Inc., The purpose of this Form 8-K/A is to provide financial statements and the
pro forma financial information for Anchor Reinforcements, Inc. a California
Corporation, as required by Item 7 of Form 8-K.
<PAGE>
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements of Business Acquired
Pursuant to the requirements of Regulation S-X 210.3.05 (b); the
following are unaudited financial statements of Anchor Reinforcements,
Inc. a California corporation, for the period October 1, 1999 through
August 31, 2000. The registrant acquired all of the outstanding
capital stock of such entity on August 31, 2000.
2
<PAGE>
Anchor Reinforcements, Inc.
Balance Sheet
August 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Assets
<S> <C>
Current assets
Cash $ 13,306
Accounts receivable 80,128
Other receivables - related party 9,920
Inventory - Raw Material 220,000
----------
Total current assets 323,354
Property and equipment, net 525,000
Patent rights 1,200,000
Total assets $2,048,354
==========
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable 40,452
----------
Total current liabilities 40,452
Shareholders' equity
Retained Earnings 2,007,902
----------
Total shareholders' equity 2,007,902
----------
Total liabilities and shareholders' equity $2,048,354
==========
</TABLE>
3
<PAGE>
Anchor Reinforcements, Inc.
Profit & Loss
For the Period October 1, 1999 to August 31, 2000
(Unaudited)
<TABLE>
<S> <C>
Revenues $485,548
Cost of sales 97,110
--------
Gross profit (loss) 388,438
Operating expenses
Office Expenses 64,642
Plan Supplies 19,381
General and administrative expenses 40,676
Salaries - employees 87,271
--------
Total operating expenses 211,970
--------
Net Income 176,468
========
</TABLE>
4
<PAGE>
ANCHOR REINFORCEMENTS, INC.
NOTES TO FINANCIAL STATEMENTS
1. Anchor Reinforcements, Inc. is a California corporation that conducts
business in San Diego. Anchor Reinforcements, Inc. was incorporated in
1991. Anchor Reinforcements, Inc., has been providing advanced
uni-directional sheet materials to the composite industry for over a
decade. These materials are used to enhance performance of lighter,
stronger and stiffer composites. Anchor's product line specializes in
carbon and aramid fibers bound via a proprietary method. Anchor is an
established company servicing a solid, reputable client base of
approximately 200 with an annual sales of over half million dollars in
uni-directional composites.
The following summarize the more significant accounting reporting policies
and practices of Anchor Reinforcements:
a. BASIS OF PRESENTATION On June 29, 2000, the Company entered into a
Stock Purchase Agreement with Anchor Reinforcements . The business
combination was closed on August 31, 2000 and is accounted for as a
Stock Purchase. The company is now a wholly owned subsidiary of
Composite Solutions, Inc.
b. USE OF ESTIMATES In preparing the financial statements, management is
required to make estimates and assumptions that affect the reported
amounts of assets and liabilities as of the date of the statements of
financial condition and revenues and expenses for the year then ended.
Actual results may differ significantly from those estimates.
Financials were prepared internally and are unaudited.
c. NET INCOME (LOSS) PER SHARE Basic is computed by dividing the net
income (loss) by the weighted average number of common shares
outstanding during the period.
d. On August 31, 2000, the Company received all of the issued outstanding
shares of Anchor Reinforcements, Inc. in exchange for the following
consideration: The company paid Mr. John Gillespie, the sole owner of
Anchor, the sum of five hundred thousand dollars ($500,000). The
Company issued an 8% Convertible Debenture Note in the amount of
$500,000, due on August 17, 2003 and secured by a Security Agreement,
California UCC-1 Financing Statement, and non-recourse guarantee
issued by Penultimo, Inc., a California corporation doing business
as Anchor Reinforcement, Inc. ("Anchor") . At the holders option,
interest is convertible into shares of common stock at a conversion
price equal to the lessor of the principal conversion price or eighty
percent (80%) of the average closing bid price of the Company's common
stock for the five (5) trading days immediately prior to the interest
payment date. Also at the holders option, principal is convertible
into restricted shares of common stock at a conversion price of $.75
for each restricted share, plus one share of unrestricted common stock
for each $2.00 of principal converted. There is no intrinsic value of
beneficial conversion feature. In addition, the Company issued to Mr.
Gillespie 150,000 restricted shares of Company's common stock and
the Company developed a stock and cash bonus plan for key employees
of Anchor.
5
<PAGE>
Pro Forma Financial Statements
The following are pro forma consolidated financial statements of the
registrant for the period from October 1, 1999 through August 31,
2000. The registrant acquired all of the outstanding capital stock of
Anchor Reinforcements on August 31, 2000.
6
<PAGE>
<TABLE>
<CAPTION>
INDEX TO PROFORMA FINANCIAL STATEMENTS
<S> <C>
Proforma Consolidated Balance Sheet (unaudited)...............................8
Proforma Consolidated Statements of Operations (unaudited)...................10
Notes to Proforma Consolidated Financial Statement ..........................12
</TABLE>
7
<PAGE>
Composite Solutions, Inc.
Anchor Reinforcements, Inc.
(A Development Stage Enterprise)
PROFORMA CONSOLIDATED BALANCE SHEET
(Unaudited)
August 31, 2000
<TABLE>
<CAPTION>
------------------------------------------------------
31-Aug-00 Proforma
CSI Anchor Adjustments Proforma
------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Current assets
Cash $ 19,673 $ 13,306 $ -- $ 32,979
Accounts receivable 2,025 80,128 -- 82,153
Other receivables - related party 3,344 9,920 -- 13,264
Prepaid expenses 1,128 -- -- 1,128
Inventory - Raw Material 220,000 -- 220,000
Deposits 8,627 -- -- 8,627
------------------------------------------------------
Total current assets 34,797 323,354 -- 358,151
Property and equipment, net 21,172 525,000 -- 546,172
Patent Rights 1,200,000 1,200,000
Other assets
Intangible assets, net 544,560 -- -- 544,560
Total assets $ 600,529 $ 2,048,354 $ -- $ 2,648,883
======================================================
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable 118,641 40,452 -- 159,093
Loan Payable - short term 24,816 -- -- 24,816
Income taxes payable 800 -- -- 800
Accrued payroll and related liabilities 14,913 -- -- 14,913
------------------------------------------------------
Total current liabilities 159,170 40,452 -- 199,622
</TABLE>
8
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
Shareholders' equity
Common stock 1,087 -- -- 1,087
Additional paid in capital 1,805,202 -- -- 1,805,202
Accumulated deficit (1,364,930) 2,007,902 -- 642,972
------------------------------------------------------
Total shareholders' equity 441,359 2,007,902 -- 2,449,261
------------------------------------------------------
Total liabilities and shareholders' equity $ 600,529 $ 2,048,354 $ -- $ 2,648,883
======================================================
</TABLE>
9
<PAGE>
Composite Solutions, Inc.
Anchor Reinforcements, Inc.
PROFORMA CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
August 31, 2000
<TABLE>
<CAPTION>
01-Oct-99 to
31-Aug-00 Proforma
CSI Anchor Adjustments Proforma
-----------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues $ 2,513 $ 485,548 $ -- $ 488,061
Cost of sales 1,439 97,110 -- 98,549
-----------------------------------------------------------
Gross profit (loss)
1,074 388,438 -- 389,512
Operating expenses
Office Expense -- 64,642 -- --
Plan Supplies -- 19,381 -- --
Consulting fees 237,284 -- -- 237,284
Depreciation 4,925 -- -- 4,925
General and administrative expenses 277,000 40,676 -- 317,676
Professional fees - other 32,794 -- -- 32,794
Salaries - employees 241,252 87,271 -- 328,523
-----------------------------------------------------------
Total operating expenses 793,255 211,970 -- 921,202
-----------------------------------------------------------
Income (Loss) from operations (792,181) 176,468 -- (531,690)
Other income (expense)
Interest income 2,412 -- -- 2,412
Interest expense (261) -- -- (261)
-----------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
Total other income (expense) 2,151 -- -- 2,151
-----------------------------------------------------------
Income
Loss before provision for income taxes (790,030) 176,468 -- (529,540)
Provision for income taxes 800 -- -- 800
-----------------------------------------------------------
Net Income (loss) $ (790,830) $ 176,468 $ -- $ (530,340)
===========================================================
Basic net loss per weighted average share $ (0.07) $ (0.04)
Weighted average number of shares 11,826,695 12,780,066
</TABLE>
11
<PAGE>
Composite Solutions, Inc.
Anchor Reinforcements, Inc.
NOTES TO PROFORMA CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
PROFORMA CHANGES The Company entered into a Stock Purchase Agreement
with Anchor Reinforcements, Inc. a California corporation. The
business combination was closed on August 31, 2000 and is accounted
for as a Stock Purchase.
On August 31, 2000, the Company exchanged 150,000 restricted shares of
the company's common stock , entered into an employment contract for
the term of two years at a salary of $60,000 per annum and a
non-competition agreement for a period of five (5) years with the sole
owner , Mr. John Gillespie. In addition, the Company will develop a
stock and cash bonus plan for key employees of Anchor.
12
<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.
October 30, 2000
COMPOSITE SOLUTIONS, INC., a Florida corporation
(Registrant)
By: /s/ GILBERT HEGEMIER
-------------------------
Gilbert Hegemier
Chairman
By: /s/ MARK OLSON
-------------------------
Mark Olson
President
13
