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Previous: MULTEX COM INC, S-8, EX-99.5, 2000-09-18 |
Next: AMERICAN GENERAL SERIES PORTFOLIO CO 3, PRE 14C, 2000-09-18 |
<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) July 21, 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 July 21, 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 Trans-Science Corp. 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 Trans-Science
Corporation a California corporation, for the period October 1, 1999
through July 21, 2000. The registrant acquired all of the outstanding
capital stock and assets of such entity on July 21, 2000.
1
<PAGE>
TRANS-SCIENCE CORPORATION
BALANCE SHEET
OCTOBER 1, 99 -JULY 21, 2000
(unaudited)
<TABLE>
<CAPTION>
ASSETS
CURRENT ASSETS
<S> <C>
Cash (1,121)
Prepaid expenses 1,875
Accounts Receivable 12,098
---------
Total Current Assets $ 12,852
---------
PROPERTY AND EQUIPMENT
Office Furniture & Equipment 153,663
Software 78,626
Less: Accumulated depr. (148,850)
---------
Net Property & Equipment $ 83,439
---------
OTHER ASSETS
Due from Subsidiary 41,319
Deposits 838
---------
42,157
Total Assets $ 138,448
---------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 4,812
Line of Credit - bank 50,922
Accrued payroll 61,308
---------
Total current liabilities $ 117,042
---------
STOCKHOLDER'S EQUITY
Capital stock 1,960
Additional Paid in Capital 38,040
Deficiency Accumulated (76,381)
Retained Earnings (108,255)
Opening Balance 166,042
---------
Total Liabilities and Equity $ 138,448
=========
</TABLE>
2
<PAGE>
TRANS-SCIENCE CORPORATION
STATEMENT OF OPERATIONS
OCTOBER 1, 99 -JULY 21, 2000
(unaudited)
<TABLE>
<S> <C>
Revenues 0
Cost of Sales 13,187
--------
Gross profit (13,187)
Expenses
Salaries employees 15,994
General Administrative expense 42,621
--------
Total Expenses 58,615
Loss from operation (71,802)
Other income (expense)
Interest income 800
Interest expense (4,580)
--------
Total other income (expense) (3,780)
Loss before provision for income taxes (75,582)
Provision for income taxes (800)
--------
Net Loss (76,382)
Basic net loss per weighted average share (0.08)
========
Weighted average number of shares 953,371
</TABLE>
3
<PAGE>
TRANS-SCIENCE CORPORATION
NOTES TO FINANCIAL STATEMENTS
1. Trans-Science Corporation is a California Chartered corporation that
conducts business in San Diego. The company was incorporated on 1980.
TSC is a high-tech research and development (R&D) organization devoted
to advanced technology development and creating cutting-edge computer
simulation programs, along with material models, for many government
agencies, including the Defense Advanced Research Projects
Agency,(DARPA), The defense Nuclear Agency (DNA), the Defense Threat
Reduction Agency (DTRA), The office of Naval Research (ONR), The naval
Research Laboratory (NRL), Los Alamos National Laboratory, and The Air
Force Office of Scientific Research.
The following summarize the more significant accounting reporting
policies and practices of TSC:
a. BASIS OF PRESENTATION On June 21, 2000, the Company entered into
a Purchase Agreement with Trans-Science Corporation. The business
combination was closed on July 21, 2000 and is accounted for as a
Share Exchange. The company is now 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. 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. PROPERTY AND EQUIPMENT All property and equipment are recorded at
cost and depreciated over their estimated useful lives, using the
straight-line method. Upon sale or retirement, the costs and
related accumulated depreciation are eliminated from their
respective accounts, operations. Repairs and maintenance charges,
which do not increase the useful lives of the assets, are charged
to operations as incurred.
e. On July 21, 2000, The Company exchanged 953,371 restricted shares
of the company's common Stock to the shareholders of TSC in
exchange for all outstanding Capital Stock of such entity.
4
<PAGE>
Pro Forma Financial Statements
The following are pro forma consolidated financial statements of the
registrant for the period from (October 1, 1999) through July 21,
2000. The registrant acquired all of the outstanding capital stock and
assets of Trans-Science Corporation on July 21, 2000.
5
<PAGE>
INDEX TO PROFORMA FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C>
Proforma Consolidated Balance Sheet (unaudited)...............................................7
Proforma Consolidated Statements of Operations (unaudited)....................................9
Proforma Statement of Cash Flow (unaudited)..................................................10
Notes to Proforma Consolidated Financial Statement (unaudited)...............................11
</TABLE>
6
<PAGE>
TRANS-SCIENCE CORPORATION
STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
July 21, 2000 Proforma
CSI TSC Adjustments Proforma
------------ ------------- ------------- ------------
<S> <C> <C> <C> <C>
Assets
Current assets
Cash $ 68,808 $ -- $ -- $ 68,808
Accounts receivable 2,513 12,098 -- 14,611
Other receivables - related party 5,151 -- -- 5,151
Prepaid expenses 7,420 1,875 -- 9,295
Deposits 8,627 -- -- 8,627
------------ ------------- ------------- ------------
Total current assets 92,519 13,973 -- 106,492
Property and equipment, net 21,172 83,439 -- 104,611
Other assets
Investment in subsidiary 21,406 -- (21,406) --
Intangible assets, net 540,131 -- -- 540,131
Due from subsidiary -- 41,319 -- 41,319
Deposits -- 838 -- 838
------------ ------------- ------------- ------------
Total assets $ 675,228 $ 139,569 $ (21,406) $ 793,391
============ ============= ============= ============
Liabilities and Shareholders' Equity
Current liabilities
Bank overdraft $- $ 1,121 $ -- $ 1,121
Accounts payable 53,143 4,812 -- 57,955
Line of credit - bank -- 50,922 -- 50,922
Income taxes payable 800 -- -- 800
Accrued payroll and related liabilities 16,930 61,308 -- 78,238
------------ ------------- ------------- ------------
Total current liabilities 70,873 118,163 -- 189,036
Shareholders' equity
Preferred stock -- -- -- --
Common stock 1,182 1,960 (1,960) 1,182
Additional paid in capital 1,786,513 38,040 (38,040) 1,786,513
Accumulated deficit (1,183,340) (18,594) 18,594 (1,183,340)
</TABLE>
7
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
Total shareholders' equity 604,355 21,406 (21,406) 604,355
------------ ------------- ------------- ------------
Total liabilities and shareholders' equity $ 675,228 $ 139,569 $ (21,406) $ 793,391
============ ============= ============= ============
</TABLE>
8
<PAGE>
TRANS-SCIENCE CORPORATION
STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
October 1, 1999
to July 21, 2000 Proforma
CSI TSC Adjustments Proforma
-------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C>
Revenues $ 2,513 $ -- $ -- $ 2,513
Cost of sales 1,439 13,187 -- 14,626
-------------- -------------- -------------- ---------------
Gross profit (loss) 1,074 (13,187) -- (12,113)
Operating expenses
Consulting fees 188,291 266 -- 188,557
Depreciation 4,925 -- -- 4,925
General and administrative expenses 184,963 42,225 -- 227,188
Organizational fees -- -- -- --
Professional fees - related party -- -- -- --
Professional fees - other 33,232 130 -- 33,362
Salaries - employees 199,468 15,994 -- 215,462
-------------- -------------- -------------- ---------------
Total operating expenses 610,879 58,615 -- 669,494
-------------- -------------- -------------- ---------------
Loss from operations (609,805) (71,802) -- (681,607)
Other income (expense)
Interest income 2,376 800 -- 3,176
Interest expense (261) (4,580) -- (4,841)
-------------- -------------- -------------- ---------------
Total other income (expense) 2,115 (3,780) -- (1,665)
-------------- -------------- -------------- ---------------
Loss before provision for income taxes (607,690) (75,582) -- (683,272)
Provision for income taxes 800 800 -- 1,600
-------------- -------------- -------------- ---------------
Net loss $ (608,490) $ (76,382) $ -- $ (684,872)
============== ============== ============== ===============
Basic net loss per weighted average share $ (0.06) $ (0.06)
Weighted average number of shares 10,783,333 11,736,704
</TABLE>
9
<PAGE>
TRANS-SCIENCE CORPORATION
STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
October 1, 1999
to July 22, 2000 Proforma
CSI TSC Adjustments Proforma
------------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (608,490) $ (76,382) $ -- $ (684,872)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation 4,925 -- -- 4,925
Stock issued for services -- -- -- --
Stock issued in lieu of cash -- -- -- --
Pre-acquisition income -- -- -- --
(Increase) decrease in operating assets
Accounts receivable (2,513) (39,204) -- (41,717)
Other receivable - related party (5,151) 142,546 -- 137,395
Prepaid expense (3,194) -- -- (3,194)
Deposits and other assets (8,627) 7,814 -- (813)
Increase (decrease) in operating liabilities
Accounts payable (51,260) 2,996 -- (48,264)
Accrued payroll and related liabilities (1,069) (3,529) -- (4,598)
Other accrued liabilities 800 -- -- 800
Net cash used in operating activities (674,579) 34,241 -- (640,338)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment (12,954) (64,644) -- (77,598)
Acquisition of intangible assets (12,470) -- -- (12,470)
Net cash used in investing activities (25,424) (64,644) -- (90,068)
CASH FLOWS FROM FINANCING ACTIVITIES
Bank overdraft -- (8,597) -- (8,597)
Proceeds from issuance of common stock, net 760,000 39,000 -- 799,000
Proceeds from unsecured loan 25,000 -- -- 25,000
Payments of unsecured loan (25,000) -- -- (25,000)
Proceeds from note payable -- -- -- --
Net cash provided by financing activities 760,000 30,403 -- 790,403
Net increase in cash 59,997 -- -- 59,997
Cash - beginning of period 8,811 -- -- 8,811
Cash - end of period $ 68,808 $ -- $ -- $ 68,808
SUPPLEMENTAL DISCLOSURES
Interest paid $ 243 $ -- $ -- $ --
Income taxes paid $ -- $ -- $ -- $ --
NON CASH FINANCING AND INVESTING ACTIVITIES
Note payable paid by issuance of common stock $ -- $ -- $ -- $ --
Investment in subsidiary $ 21,406 $ -- $ (21,406) $ --
Interest on note payable $ -- $ -- $ -- $ --
Forgiveness of interest on not payable $ -- $ -- $ -- $ --
</TABLE>
10
<PAGE>
Trans-Science Corporation
Composite Solutions, Inc.
(A development stage Enterprise)
NOTES TO PROFORMA CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
The Company entered into a Share Exchange Agreement with Trans-Science
Corporation a California corporation. The business combination was
closed on July 21, 2000 and is accounted for as Shares Exchange.
On July 21, 2000 the Company exchanged 953,371 restricted shares of
the company's common stock to the shareholders of TSC in exchange for
100% of the issue shares of TSC. In addition, the Company acquired all
assets.
11
<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.
September 15, 2000
COMPOSITE SOLUTIONS, INC., a Florida corporation
(Registrant)
By: /s/ Gilbert Hegemier
--------------------
Gilbert Hegemier
Chairman
By: /s/ Mark Olson
--------------
President
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