SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): June 30, 1999
Interactive Magic, Inc.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
North Carolina
- --------------------------------------------------------------------------------
(State or other jurisdiction of incorporation)
0-29750 56-2092059
- ---------------------------- -----------------------------
(Commission file Number) (IRS Employer ID Number)
215 Southport Drive, Suite 1000, Morrisville, North Carolina 27560
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 919-461-0722
------------------
NA
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
This report amends the Current Report filed on July 15,1999 to include pro forma
financial statements.
<PAGE>
Item 2. Acquisition or Disposition of Assets.
Effective on June 30, 1999 and pursuant to an Agreement Regarding Assignment of
Contracts ("Assignment Agreement") dated as of May 25, 1999, between Interactive
Magic, Inc., a North Carolina corporation (the "Registrant") and Ubi Soft
Entertainment S.A., a company organized under the laws of France ("Ubi Soft"),
the Registrant sold to Ubi Soft substantially all of the assets of its CD-ROM
business operation, less certain online rights retained by the Registrant, for
$2.5 million in cash.
Item 7. Financial Statements and Exhibits.
(b) Pro Forma Financial Information. Pro forma financial statements are
attached to this current report.
(c) Exhibits.
10.36* Agreement Regarding Assignment of Contracts dated as of May
25,1999, between the Registrant and Ubi Soft Entertainment
S.A.
10.37* Online Rights License Agreement dated effective June 28, 1999,
between the Registrant and Ubi Soft Entertainment S.A.
- --------------------------------------------------------------------------------
* Previously filed with the Registrant's Current Report on Form 8-K dated July
15, 1999.
<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.
INTERACTIVE MAGIC, INC.
Date: September 1, 1999 /s/ Michael W. Oliver
----------------------------
Michael W. Oliver,
Chief Financial Officer
<PAGE>
Interactive Magic, Inc.
Pro Forma Consolidated Statement of Operations
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(Unaudited)
<TABLE>
<CAPTION>
Six months ended June 30, 1999
As reported Adjustments Pro forma
---------------------------------------------
<S> <C> <C>
Net revenues:
CD-ROM product sales $ 561 $ 561
Online sales 965 965
Royalties and licenses 7 7
Advertising and other 606 606
---------------------------------------------
Total net revenues 2,139 2,139
Cost of revenues:
Cost of products and services 2,350 2,350
Royalties and amortized software costs 311 311
---------------------------------------------
Total cost of revenues 2,661 2,661
---------------------------------------------
Gross (loss) profit (522) (522)
Operating expenses:
Sales and marketing 3,091 (A) (560) 2,531
Product development 3,193 (A) (289) 2,904
General and administrative 2,122 2,122
Goodwill 556 556
---------------------------------------------
Total operating expenses 8,962 (849) 8,113
---------------------------------------------
Operating loss (9,484) 849 (8,635)
Other (income) expense:
Interest expense - third parties 2,573 2,573
Interest expense - related parties 38 38
Other (922) (B) 855 (67)
---------------------------------------------
Total other (income) expense 1,689 855 2,544
---------------------------------------------
Loss before income taxes (11,173) (6) (11,179)
Income tax expense 42 42
---------------------------------------------
Loss before extraordinary item $ (11,215) (6) $ (11,221)
Extraordinary loss on early extinguishment of debt
- -
---------------------------------------------
Net loss $ (11,215) (6) $ (11,221)
Basic loss per share:
Loss before extraordinary item $ (1.07) $ (1.07)
Extraordinary item
=============================================
Net loss per share $ (1.07) $ (1.07)
=============================================
Weighted average shares used in computing basic
loss per share 10,501,317 10,501,317
=============================================
</TABLE>
Footnote (A): Reflects reduction in marketing and development expenses related
to titles under contracts which were sold per the Assignment Agreement
(B): Elimination of gain on disposition of assets.
<PAGE>
Interactive Magic, Inc.
Pro Forma Consolidated Statement of Operations
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(Unaudited)
<TABLE>
<CAPTION>
Twelve months ended December 31, 1998
As reported Adjustments Pro forma
---------------------------------------------------------
<S> <C> <C> <C>
Net revenues:
CD-ROM product sales $ 9,177 $ 9,177
Online sales 1,773 1,773
Royalties and licenses 1,616 1,616
Advertising and other 0 0
---------------------------------------------------------
Total net revenues 12,566 12,566
Cost of revenues:
Cost of products and services 3,157 3,157
Royalties and amortized software costs 2,942 2,942
---------------------------------------------------------
Total cost of revenues 6,099 6,099
---------------------------------------------------------
Gross (loss) profit 6,467 6,467
Operating expenses:
Sales and marketing 8,490 (A) (293) 8,197
Product development 5,983 (A) (61) 5,922
General and administrative 2,684 2,684
Goodwill - -
---------------------------------------------------------
Total operating expenses 17,157 (354) 16,803
---------------------------------------------------------
Operating loss (10,690) 354 (10,336)
Other (income) expense:
Interest expense - third parties 554 554
Interest expense - related parties 134 134
Other (161) (161)
---------------------------------------------------------
Total other (income) expense 527 527
---------------------------------------------------------
Loss before income taxes (11,217) 354 (10,863)
Income tax expense 28 28
---------------------------------------------------------
Loss before extraordinary item $ (11,245) 354 $ (10,891)
Extraordinary loss on early extinguishment of debt
(407) (407)
---------------------------------------------------------
Net loss $ (11,652) 354 $ (11,298)
Basic loss per share:
Loss before extraordinary item $ (1.73) $ (0.06) $ (1.67)
Extraordinary item $ (0.06) $ (0.06)
=========================================================
Net loss per share $ (1.79) $ (0.06) $ (1.73)
=========================================================
Weighted average shares used in computing basic loss per
share 6,515,213 6,515,213
=========================================================
</TABLE>
Footnote (A): Reflects reduction in marketing and development expenses related
to titles under contracts which were sold per the Assignment Agreement
