SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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) September 8, 2000
INFOWAVE SOFTWARE, INC.
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(Exact Name of Registrant as Specified in Charter)
BRITISH COLUMBIA, CANADA
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(State or Other Jurisdiction of Incorporation)
000-26867 98-0183915
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(Commission File Number) (IRS Employer Identification No.)
Suite 200 - 4664 Lougheed Highway
Burnaby, British Columbia,
Canada V5C 5T5
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (604) 473-3600
N/A
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(Former Name or Former Address, if Changed Since Last Report)
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Item 2. Acquisition or Disposition of Assets
Infowave Software, Inc. ("the Registrant") completed the sale of its imaging
division to Strydent Software Inc., pursuant to an Asset Purchase Agreement
("the Agreement") dated September 8, 2000, a copy of which is attached hereto as
exhibit 2.1. The effective date of the Agreement was August 31, 2000 and the
total sale price was $1.5 million, less any adjustments resulting from an
independent audit of accounts receivable. $1.0 million of the selling price was
received on closing and the balance, which is evidenced by a promissory note,
will be received after completion of the accounts receivable audit, which is
expected to be finalized by October 14, 2000.
Item 7. Pro Forma Financial Statements and Exhibits
a. Financial statements of the business acquired. Not applicable.
b. Pro Forma Condensed Financial Statements
The following unaudited pro forma condensed financial statements give effect to
the sale of the Registrant's imaging division. The adjustments related to the
pro forma condensed balance sheet assume the transaction was consummated at June
30, 2000, while the adjustments to the pro forma condensed income statements
assume the transaction was consummated at the beginning of the periods
presented. The final sale was effective on August 31, 2000. Pro forma loss from
operations does not include non-recurring charges or credits directly
attributable to the sale.
The unaudited pro forma condensed financial statements have been prepared by the
Registrant based upon assumptions deemed appropriate by it and are presented
herein for illustrative purposes only. The unaudited pro forma condensed
financial statements are not necessarily indicative of the future financial
position or future results of operations of the Registrant, or of the financial
position or results of operations of the Registrant that would have actually
occurred had the transaction been in effect as of the date or for the periods
presented.
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<PAGE>
INFOWAVE SOFTWARE, INC.
Pro Forma Condensed Balance Sheet
As at June 30, 2000
(expressed in U.S. dollars)
<TABLE>
Historical Pro Forma
Balance Adjustments Pro Forma
Sheet (a) Balance Sheet
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<S> <C> <C> <C>
Assets
Current Assets:
Cash and cash equivalents $11,903,508 $1,500,000 $13,403,508
Short term investments 6,661,801 6,661,801
Trade receivables 1,282,483 (831,299) 451,184
Share subscription receivable 537,666 537,666
Inventory 517,322 (517,322) 0
Prepaid expenses and deposits 145,169 (100,670) 44,499
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21,047,949 50,709 21,098,658
Capital assets 2,457,655 (390,693) 2,066,962
Deferred charges 17,700 17,700
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$23,523,304 ($339,984) $23,183,320
==================================================================================================
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $1,566,453 ($339,984) $1,226,469
Deferred revenue 3,020 3,020
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1,569,473 (339,984) 1,229,489
Shareholders' equity 21,953,831 21,953,831
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$23,523,304 ($339,984) $23,183,320
==================================================================================================
</TABLE>
(a) To eliminate the assets and liabilities of the imaging division which were
included in the June 30, 2000 balance sheet of the Registrant, and to reflect
the approximate net cash proceeds to be received on the sale of the division.
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<PAGE>
INFOWAVE SOFTWARE, INC.
Pro Forma Condensed Statement of Operations
For the Six Months Ended June 30, 2000
(expressed in U.S. dollars)
<TABLE>
Historical Pro Forma Pro Forma
Statement of Adjustments Statement of
Operations (a) Operations
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<S> <C> <C>
Revenues:
Sales $235,164 $235,164
Cost of goods sold 115,634 115,634
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119,530 119,530
Expenses:
Research and development 1,462,565 1,462,565
Sales and marketing 2,604,583 2,604,583
General and administrative 1,070,099 1,070,099
Depreciation and amortization 257,117 257,117
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5,394,364 5,394,364
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Operating loss from continuing operations 5,274,834 5,274,834
Other income (expenses):
Interest and other income 278,287 278,287
Foreign exchange 29,634 29,634
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307,921 307,921
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Loss for the period from
continuing operations $4,966,913 $4,966,913
============================================================================================
Loss per share from continuing
operations $0.26 $0.26
============================================================================================
Weighted average number of
shares outstanding 19,036,659 19,036,659
============================================================================================
</TABLE>
(a) The pro forma income statement for the six months ended June 30, 2000 is
based on the historical interim financial statements of the Company, which had
previously been reclassified to separately present the imaging division as
discontinued operations. Accordingly, no pro forma adjustments have been made to
these statements.
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<PAGE>
INFOWAVE SOFTWARE, INC.
Pro Forma Condensed Statement of Operations
For the Year Ended December 31, 1999
(expressed in U.S. dollars)
<TABLE>
Historical Pro Forma Pro Forma
Statement of Adjustments Statement of
Operations (a) Operations
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<S> <C> <C> <C>
Revenues:
Sales $7,530,331 ($7,175,330) $355,001
Cost of goods sold 2,692,462 (2,663,759) 28,703
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4,837,869 (4,511,571) 326,298
Expenses:
Research and development 2,691,628 (1,459,759) 1,231,869
Sales and marketing 3,005,189 (1,509,985) 1,495,204
General and administrative 2,056,660 (769,777) 1,286,883
Depreciation and amortization 403,317 (199,248) 204,069
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8,156,794 (3,938,769) 4,218,025
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Loss from operations 3,318,925 572,802 3,891,727
Other income (expenses):
Interest and other income 118,204 118,204
Foreign exchange (87,530) (87,530)
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30,674 30,674
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Loss for the year $3,288,251 $572,802 $3,861,053
=================================================================================================
Loss per share $0.21 $0.24
=================================================================================================
Weighted average number of
shares outstanding 15,963,036 15,963,036
=================================================================================================
</TABLE>
(a) To eliminate the results of operations of the imaging division for the
entire period. c.
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<PAGE>
c. Exhibits
Exhibit
Number Description
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2.1 Asset Purchase Agreement dated September 8, 2000 between Infowave
Software, Inc. and Strydent Software Inc.
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<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.
INFOWAVE SOFTWARE, INC.
Date: September 22, 2000 By /s/ Bijan Sanii
---------------------------------
Bijan Sanii
Chief Operating Officer and
Acting Chief Executive Officer
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<PAGE>
EXHIBIT INDEX
Exhibit
Number Description
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2.1 Asset Purchase Agreement dated September 8, 2000 between Infowave
Software, Inc. and Strydent Software Inc.
