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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K/A
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CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
April 14, 2000
Date of Report (Date of earliest event reported: March 29, 2000)
Commission File Number 000-27329
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CYBERGOLD, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware 7311 94-3212392
(State of Incorporation) (Primary Standard Industrial (I.R.S. Employer
Classification Code)
1330 Broadway, 12th Floor
Oakland, California 94612
(Address, including Zip Code, of Registrant's Principal Executive Offices)
(510) 302-3000
(Registrants Telephone Number, Including Area Code)
Securities Registered Pursuant to Section 12(b) of the Act:
Not Applicable
(Former name or former address, if changed since last report)
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ITEM 2.
On April 14, 2000, Cybergold, Inc. filed a Form 8-K to report it completed the
acquisition of itarget.com, inc., a California corporation ("itarget") effective
March 29, 2000 with certain state regulatory approvals received on April 3,
2000. Pursuant to Item 7 of Form 8-K, Cybergold indicated that it would file
certain financial information no later than the date required by Item 7 of Form
8-K. This Amendment No. 1 is being filed to provide such financial information.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) FINANCIAL STATEMENTS OF BUSINESS ACQUIRED
See exhibit 20.1 for the audited financial statements of itarget.com, inc.
as of and for the year ended December 31, 1999 and the period from June 3,
1998 (inception) to December 31, 1998.
(b) UNAUDITED PRO FORMA FINANCIAL INFORMATION
The following unaudited pro forma condensed combined financial
statements give effect to the merger between Cybergold, Inc. ("Cybergold" or the
Company) and itarget.com, inc. ("itarget"), which occurred on March 29, 2000
with certain state regulatory approvals received on April 3, 2000. The itarget
acquisition was accounted for under the pooling-of-interests method of
accounting in accordance with APB Opinion No. 16. Under the pooling-of-interests
method of accounting, all periods prior to the acquisition are restated to
include the accounts and results of operations as though the companies were
combined for all periods presented.
The unaudited pro forma condensed combined balance sheet has been
prepared to reflect the itarget merger as if it occurred on December 31, 1999.
The unaudited pro forma condensed combined statements of operations reflect the
results of operations of Cybergold and itarget for the year ended December 31,
1999, and the period from June 3, 1998 (inception) to December 31, 1998 as if
the itarget acquisition occurred on December 31, 1999.
The unaudited pro forma condensed combined financial statements are
presented for illustrative purposes only and are not necessarily indicative of
the combined financial position or results of operations in future periods or
the results that actually would have been realized had Cybergold and itarget
been a combined company during the specified periods. In the opinion of
management, all adjustments necessary to present fairly such pro forma financial
information have been made to the financial statements, and are reflected in the
accompanying notes. The unaudited pro forma condensed combined financial
statements, including the notes thereto, are qualified in their entirety by
reference to, and should be read in conjunction with, historical consolidated
financial statements and the related notes thereto of Cybergold included in its
registration statement on Form S-1 (No. 333-79067) as amended and Form 10-K on
file with the SEC, and the audited financial statements of itarget included in
this filing.
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CYBERGOLD, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
December 31, 1999
(In thousands)
<TABLE>
<CAPTION>
Pro Forma
Cybergold itarget Adjustments Combined
--------- ------- ----------- --------
<S> <C> <C> <C> <C>
Current assets:
Cash & cash equivalents........................................ $ 16,747 $ 518 $ -- $ 17,265
Short term investments......................................... 27,822 -- -- 27,822
Accounts receivable, net....................................... 1,758 41 -- 1,799
Prepaid expenses & other current assets........................ 693 16 -- 709
-------- ------- ------- --------
Total current assets......................................... 47,020 575 -- 47,595
Property & equipment, net....................................... 992 315 -- 1,307
Intangible assets, net.......................................... 317 -- -- 317
Deposits and other assets....................................... 62 72 -- 134
-------- ------- ------- --------
Total assets................................................. $ 48,391 $ 962 $ -- $ 49,353
======== ======= ======= ========
Liabilities & Stockholders' Equity (Deficit)
Current liabilities
Accounts payable & accrued liabilities......................... $ 4,570 $ 1,090 $ -- $ 5,660
Notes payable, current portion 65 -- -- 65
Obligations under capital leases, current...................... 136 -- -- 136
Deferred revenue............................................... 643 -- -- 643
Accrued merger expenses........................................ -- -- 2,142 2,142
-------- ------- ------- --------
Total current liabilities.................................... 5,414 1,090 2,142 8,646
Obligations under capital leases, net of current................ 90 -- -- 90
Notes payable, net of current maturities........................ 299 -- -- 299
-------- ------- ------- --------
Total liabilities............................................ 5,803 1,090 2,142 9,035
Stockholders' equity (deficit):
Series A Convertible preferred stock........................... -- 1 (1) --
Series B Convertible preferred stock........................... -- -- -- --
Common stock................................................... 3 2 (2) 3
Additional paid-in capital..................................... 67,653 1,991 3 69,647
Deferred compensation.......................................... (1,313) -- -- (1,313)
Retained deficit............................................... (23,755) (2,122) (2,142) (28,019)
-------- ------- ------- --------
Total stockholders' equity (deficit)......................... 42,588 (128) (2,142) 40,318
-------- ------- ------- --------
Total liabilities and stockholders' equity(deficit) $ 48,391 $ 962 $ -- $ 49,353
======== ======= ======= ========
</TABLE>
See accompanying notes to unaudited pro forma
condensed combined financial statements.
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CYBERGOLD, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
(In thousands, except per share data)
<TABLE>
<CAPTION>
Cybergold itarget Combined
----------- ----------- ----------
<S> <C> <C> <C>
Revenues, net:
Transaction..................................... $ 3,316 $ - $ 3,316
Custom Marketing Services and Other............. 1,987 180 2,167
---------- ---------- ----------
Total revenues................................. 5,303 180 5,483
Cost of revenues:
Transaction..................................... 1,594 - 1,594
Custom Marketing Services and Other............. 278 56 334
---------- ---------- ----------
Total cost of revenues......................... 1,872 56 1,928
---------- ---------- ----------
Gross margin..................................... 3,431 124 3,555
Operating expenses:
Product development............................. 2,670 517 3,187
Sales and marketing............................. 8,312 846 9,158
General and administrative...................... 2,516 836 3,352
Amortization of deferred compensation........... 735 - 735
---------- ---------- ----------
Total operating expenses....................... 14,233 2,199 16,432
---------- ---------- ----------
Loss from operations............................. (10,802) (2,075) (12,877)
Interest income.................................. 740 - 740
---------- ---------- ----------
Net Loss......................................... (10,062) (2,075) (12,137)
Dividend attributable to Preferred Stockholders.. (1,571) - (1,571)
---------- ---------- ----------
Net Loss attributable to Common Stockholders..... $ (11,633) $ (2,075) $ (13,708)
========== ========== ==========
Loss per Common Share:
Basic and diluted............................... $ (1.40) $ (1.45)
Weighted Average Common Shares Outstanding:
Basic and diluted............................... 8,308,482 9,463,801
</TABLE>
See accompanying notes to unaudited pro forma
condensed combined financial statements.
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CYBERGOLD, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS OF
CYBERGOLD, INC. FOR THE YEAR ENDED DECEMBER 31, 1998 AND OF ITARGET.COM FOR THE
PERIOD JUNE 3, 1998 (INCEPTION) TO DECEMBER 31, 1998
(In thousands, except per share data)
<TABLE>
<CAPTION>
Cybergold itarget Combined
----------- ----------- -----------
<S> <C> <C> <C>
Revenues, net:
Transaction..................................... $ 628 $ -- $ 628
Custom Marketing Services and Other............. 377 -- 377
---------- ---------- ----------
Total revenues................................. 1,005 -- 1,005
Cost of revenues:
Transaction..................................... 293 -- 293
Custom Marketing Services and Other............. 173 -- 173
---------- ---------- ----------
Total cost of revenues......................... 466 -- 466
---------- ---------- ----------
Gross margin..................................... 539 -- 539
Operating expenses:
Product development............................. 1,701 25 1,726
Sales and marketing............................. 2,695 -- 2,695
General and administrative...................... 792 22 814
Amortization of deferred compensation........... 198 -- 198
---------- ---------- ----------
Total operating expenses....................... 5,386 47 5,433
---------- ---------- ----------
Loss from operations............................. (4,847) (47) (4,894)
Interest income.................................. 78 -- 78
---------- ---------- ----------
Net Loss......................................... (4,769) (47) (4,816)
Dividend attributable to Preferred Stockholders.. (660) -- (660)
---------- ---------- ----------
Net Loss attributable to Common Stockholders..... $ (5,429) $ (47) $ (5,476)
========== ========== ==========
Loss per Common Share:
Basic and diluted............................... $(1.35) $(1.18)
Weighted Average Common Shares Outstanding:
Basic and diluted............................... 4,020,393 4,648,008
</TABLE>
See accompanying notes to unaudited pro forma
condensed combined financial statements.
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CYBERGOLD, INC.
NOTES TO UNAUDITED PRO FORMA CONDENSED
COMBINED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
Pursuant to an Agreement and Plan of Reorganization, Cybergold issued
1,829,841 shares of common stock in exchange for all outstanding shares of
itarget capital stock, and all outstanding stock options and warrants to acquire
itarget capital stock. The acquisition was accounted for as a pooling of
interests in accordance with APB No. 16 and accordingly, the Company's financial
statements have been restated to include the results of operations of itarget.
The pro forma combined statements of operations reflects the restatement of
Cybergold's financial statements as if the companies had been combined for all
periods presented, and the pro forma combined balance sheet has been adjusted to
reflect the merger as if it had occurred on December 31, 1999.
2. PRO FORMA ADJUSTMENTS
Pro forma adjustments to the December 31, 1999 unaudited pro forma
condensed combined balance sheet have been prepared to reflect the conversion of
the itarget preferred stock to Cybergold common stock, to reflect the conversion
of itarget's common stock par value to that of Cybergold and to reflect the
accrual of approximately $2.14 million of merger related costs consisting
primarily of payments to itarget management in connection with employment
agreements as well as legal, accounting and investment banking fees.
3. PRO FORMA LOSS PER COMMON SHARE
The unaudited pro forma condensed combined net loss per share, basic
and diluted, is based upon the weighted average number of common shares of
Cybergold and common and convertible preferred shares of itarget. itarget common
and convertible preferred shares are converted using the applicable merger
exchange ratio.
4. CONFORMING AND RECLASSIFICATION ADJUSTMENTS
There were no adjustments required to conform the accounting policies
of itarget. There were no intercompany transactions in the periods presented.
(c) EXHIBITS
The following exhibits are filed herewith:
20.1 itarget.com, inc. audited financial statements for the year ended
December 31, 1999 and period from June 3, 1998 (inception) to December
31, 1998
23.1 Consent of Singer Lewak Greenbaum & Goldstein LLP, Independent
Accountants
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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.
CYBERGOLD, INC.
Date: June 13, 2000 By: /S/ John D. Steuart
Chief Financial Officer
(Principal Financial Officer)
