<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDED FORM 8-K
(For the Form 8-K Dated February 14, 2000)
CURRENT REPORT
Pursuant To Section 13 or 15 (d) of the Securities
Exchange Act Of 1934
MAY 18, 2000
GLOBAL TELEPHONE COMMUNICATION, INC.
(Exact name of Small Business Issuer in Its Charter)
NEVADA
(State or other jurisdiction of incorporation or organization)
0-27611 87-0285729
(Commission File Number) (I.R.S. Employer
Identification Number)
SUITE 1800, 10 SOUTH RIVERSIDE PLAZA, CHICAGO, IL 60606
(Address of principal executive offices) (Zip Code)
1-877-901-4824 (GTCI)
(Issuer's Telephone Number)
<PAGE>
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Financial Statements of Business Acquired.
Cyber 2000 Ltd. was incorporated on August 2, 1999. As of the
date of acquisition, January 28, 2000 no financial
transactions have occurred save and except the cost of
incorporation. Thus, there will be no financial statements of
Cyber 2000 Ltd. attached hereto.
Pro Forma Financial Information
See attached Exhibit FS-1.
SIGNATURES
Pursuant to the requirements required of the Securities and Exchange
Act of 1934 the Registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GLOBAL TELEPHONE
COMMUNICATION, INC.
DATED: May 18, 2000 BY: /s/ Robert J. Andresen
---------------------------
ROBERT J. ANDRESEN
President
<PAGE>
EXHIBIT FS-1
GLOBAL TELEPHONE COMMUNICATIONS,
INC. AND SUBSIDIARIES CONSOLIDATED PROFORMA
FINANCIAL STATEMENTS DECEMBER 31, 1999
<PAGE>
GLOBAL TELEPHONE COMMUNICATION, INC.
AND SUBSIDIARIES
CONSOLIDATED PROFORMA FINANCIAL STATEMENTS
DECEMBER 31, 1999
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C O N T E N T S
<TABLE>
<S> <C>
Consolidated Proforma Balance Sheet.......................................... 3
Consolidated Proforma Statement of Operations................................ 4
Statement of Assumptions and Disclosures..................................... 5
</TABLE>
<PAGE>
GLOBAL TELEPHONE COMMUNICATION, INC. AND SUBSIDIARIES
Consolidated Proforma Balance Sheet
December 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Nano
Global Technology Proforma
Telephone Limited Adjustments
Communication (dba Increase Proforma
Inc. Cyber 2000) (Decrease) Consolidated
----------------- ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
CURRENT ASSETS
Cash $ 1,485,896 $ - $ (1,000,000) $ 485,896
Restricted cash 850,000 - - 850,000
Notes receivable,
related party, net 50,500 - - 50,500
Accounts receivable, net 2,657 - - 2,657
----------------- ------------------ ------------------ ------------------
Total Current Assets 2,389,053 - (1,000,000) 1,389,053
----------------- ------------------ ------------------ ------------------
FIXED ASSETS
Property, plant and equipment 46,270 - - 46,270
Accumulated depreciation (9,445) - - (9,445)
----------------- ------------------ ------------------ ------------------
Total Fixed Assets 36,825 - - 36,825
----------------- ------------------ ------------------ ------------------
OTHER ASSETS
Goodwill - - 1,500,000 1,500,000
Deposits 1,495 - - 1,495
----------------- ------------------ ------------------ ------------------
Total Other Assets 1,495 - 1,500,000 1,501,495
----------------- ------------------ ------------------ ------------------
TOTAL ASSETS $ 2,427,373 $ - $ 500,000 $ 2,927,373
================= ================== ================== ==================
</TABLE>
See Summary of Assumptions and Disclosures.
3
<PAGE>
GLOBAL TELEPHONE COMMUNICATION, INC. AND SUBSIDIARIES
Consolidated Proforma Balance Sheet
December 31, 1999
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Nano
Global Technology Proforma
Telephone Limited Adjustments
Communication (dba Increase Proforma
Inc. Cyber 2000) (Decrease) Consolidated
----------------- ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
CURRENT LIABILITIES
Accounts payable $ 143,883 $ - $ - $ 143,883
Accrued expenses 166,811 - - 166,811
Current portion of long-term
debt 543,631 - - 543,631
----------------- ------------------ ------------------ ------------------
Total Current Liabilities 854,325 - - 854,325
----------------- ------------------ ------------------ ------------------
NOTE PAYABLE - RELATED
PARTY 1,289 - - 1,289
----------------- ------------------ ------------------ ------------------
LONG-TERM DEBT - - - -
----------------- ------------------ ------------------ ------------------
Total Liabilities 855,614 - - 855,614
----------------- ------------------ ------------------ ------------------
STOCKHOLDERS' EQUITY
Common stock, 25,000,000
shares authorized, $0.001 par
value 17,288,275 shares
issued and outstanding 16,788 - 500 17,288
Additional paid in capital 5,359,665 - 1,249,500 6,609,165
Accumulated deficit (3,804,694) - (750,000) (4,554,694)
----------------- ------------------ ------------------ ------------------
Total Stockholders' Equity 1,571,759 - 500,000 2,071,759
----------------- ------------------ ------------------ ------------------
TOTAL LIABILITIES AND
STOCKHOLDERS'
EQUITY $ 2,427,373 $ - $ 500,000 $ 2,927,373
================= ================== ================== ==================
</TABLE>
See Summary of Assumptions and Disclosures.
4
<PAGE>
GLOBAL TELEPHONE COMMUNICATION, INC. AND SUBSIDIARIES
Consolidated Proforma Statement of Operations
For the Year Ended December 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Nano
Global Technology Proforma
Telephone Limited Adjustments
Communication (dba Increase Proforma
Inc. Cyber 2000) (Decrease) Consolidated
----------------- ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
REVENUES $ - $ - $ - $ -
COST OF SALES - - - -
----------------- ------------------ ------------------ ------------------
GROSS PROFIT - - - -
----------------- ------------------ ------------------ ------------------
OPERATING EXPENSES
Depreciation and amortization 3,535,707 - 750,000 4,285,707
General and administrative 8,889 - - 8,889
----------------- ------------------ ------------------ ------------------
Total Operating Expenses 3,544,596 - 750,000 4,294,596
----------------- ------------------ ------------------ ------------------
OPERATING INCOME (LOSS) (3,544,596) - (750,000) (4,294,596)
----------------- ------------------ ------------------ ------------------
OTHER EXPENSE
Interest income 7,003 - - 7,003
Interest expense (9,198) - - (9,198)
----------------- ------------------ ------------------ ------------------
Total Other Expense (2,195) - - (2,195)
----------------- ------------------ ------------------ ------------------
INCOME (LOSS) BEFORE
INCOME TAXES (3,546,791) - (750,000) (4,296,791)
INCOME (TAXES) BENEFIT - - - -
----------------- ------------------ ------------------ ------------------
NET INCOME (LOSS) $ (3,546,791) $ - $ (750,000) $ (4,296,791)
================= ================== ================== ==================
</TABLE>
See Summary of Assumptions and Disclosures.
5
<PAGE>
GLOBAL TELEPHONE COMMUNICATION, INC. AND SUBSIDIARIES
Summary of Assumptions and Disclosures
NOTE 1 - BUSINESS ORGANIZATION
a. Organization
The financial statements presented are those of Global Telephone
Communication, Inc. The Company was incorporated on March 10, 1970
for the purpose of raising capital to develop and possibly mine
certain oil and mineral deposits. The Company was unable to raise
development money and the Company's operations ceased and the
mineral deposits were abandoned. The Company has been seeking new
business opportunities believed to hold a potential profit. The
Company changed its name to Global Telephone Communication, Inc.
on October 14, 1997.
On March 24, 1998, the Company changed its domicile from the
State of Utah to the State of Nevada.
On April 16, 1998, the Company entered into a Share Exchange
Agreement with Regent Luck Holdings Limited (Regent), a Hong Kong
corporation, with offices in Hong Kong, whereby the Company
acquired all the issued and outstanding shares of Regent by
issuing and exchanging 4,950,000 shares of the Company to the
shareholders of Regent.
Regent has a ninety percent (90%) ownership and interest in a
joint venture company, Shenzhen Global Net Computer Information
Co. Ltd. (SGNCI), organized under the laws of The Peoples
Republic of China, with Shenzhen Newsnet Co. Ltd.
Shenzhen Newsnet Co. Ltd. has obtained the Telecommunications
Business Operation Approval (No. GDSZ P90007) which allows it to
carry out computer information internet service.
Shenzhen Newsnet Co. Ltd. and the joint venture company, Shenzhen
Global Net Computer Information Co. Ltd. have entered into and
exclusive agency agreement for Shenzhen Global Net Computer
Information Co. Ltd. to act as exclusive agents to conduct all
telecommunications and internet business and services in
Shenzhen, Guangdong Province, PRC.
The Company accounted for the acquisition of all the shares of
Regent as a purchase and an acquisition of a wholly-owned
subsidiary. There was no adjustment to the carrying value of the
assets or liabilities of Regent.
6
<PAGE>
GLOBAL TELEPHONE COMMUNICATION, INC. AND SUBSIDIARIES
Summary of Assumptions and Disclosures
NOTE 1 - BUSINESS ORGANIZATION (Continued)
On March 7, 1999, the Company entered into a share exchange
agreement with Pacific Asset International Ltd. (PAI), a Hong Kong
Corporation, whereby the Company acquired 51% of the outstanding
shares of PAI by issuing and exchanging 600,000 shares of the
Company's common stock to the shareholder's of PAI. The
acquisition was rescinded in April, 2000 and the shares were
cancelled.
ACQUISITION OF NANO TECHNOLOGY, LIMITED
Nano Technology Limited (Nano), is an international business
company incorporated on December 1, 1999 in the British Virgin
Islands; Cyber 2000 Limited ("Cyber 2000"), a company incorporated
in Hong Kong, is a wholly-owned subsidiary of Nano. Cyber 2000 was
established for the purpose of developing a "voice over internet
protocol" and the business of providing re-sale services of "voice
over internet protocol".
On January 28, 2000, the Company purchased 4,000 new shares of
Nano Technology, Limited (Nano) for $1,000,000. $500,000 was paid
at closing and $500,000, 90 days later. The Company also purchased
3,000 shares of the outstanding shares of Nano for 500,000 shares
of its common stock valued at $2.50 per share. The 7,000 shares
constituted 70% of the outstanding shares of Nano. Nano had no
assets or liabilities at the date of purchase. Accordingly, all of
the purchase price has been allocated to goodwill.
b. Proforma Adjustments
1. The proforma financial statements have been prepared as though
the purchase of Nano occurred on January 1, 1999. Accordingly,
the statement of operations of the Company and Nano are
consolidated for the year ended December 31, 1999 and the
balance sheets of Nano and the Company are consolidated as of
December 31, 1999.
<TABLE>
<S> <C>
Goodwill $ 2,250,000
Cash (1,000,000)
Common stock (500)
Additional paid-in capital (1,249,500)
-----------------
To record the purchase of Nano. $ -
=================
2. Goodwill $ (750,000)
Amortization expense 750,000
-----------------
$ -
=================
</TABLE>
To record the amortization of the goodwill of Nano over 3 years
using the straight-line method.
7
