SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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AMENDMENT NO. 1 TO
FORM 8-K
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CURRENT REPORT
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PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported):
August 25, 2000
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THE AUXER GROUP, INC.
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(Exact Name of Registrant as Specified in Its Charter)
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Delaware
(State or Other Jurisdiction of Incorporation)
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0-30440 22-3537927
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(Commission File Number) (IRS Employer Identification No.)
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12 Andrews Drive, West Paterson, New Jersey 07424
(Address of Principal Executive Offices) (Zip Code)
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(973) 890-4925
(Registrant's Telephone Number, Including Area Code)
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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
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Pursuant to a Contract for the Sale of Goods (the
"Agreement") effective August 10, 2000, Auxer Telecom, Inc.
a wholly owned subsidiary of The Auxer Group, Inc., a
Delaware corporation (the "Company"), purchased two Magellan
Switches and accessories described as: CDR Format DBF; Fraud
Detection; Software Version 4.333; Two (2) M4000 LNX Driven
NT based platforms, 64 ports each; redundant CPU's and power
supplies (the "Equipment") from Chasin of Long Beach, Inc.
d/b/a Colbie Pacific Capital ("Colbin") (the
"Acquisition"). The total purchase price paid for the
equipment by the Company was $568,000 payable as follows:
$10,000 upon the execution of the Agreement and commencing
October 1, 2000 and continuing on the 1st day of each
successive month thereafter, the Company shall pay
additional monthly installments of $10,000 for a series of
ten (10) payments. On August 1, 2000, the Company shall pay
the Seller the sum of $458,000.
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The Agreement was executed by the Company on August 25,
2000. The Acquisition was approved by the unanimous consent
of the Board of Directors of the Company and Colbin on
August 25, 2000.
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ITEM 7. FINANCIAL STATEMENTS
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The pro forma combined balance sheets as of June 30, 2000
and pro forma consolidated statements of operations for the
periods ending June 30, 2000 and December 31, 1999 are filed
herewith.
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INTRODUCTION TO UNAUDITED PRO FORMA COMBINED
FINANCIAL STATEMENTS
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The following unaudited pro forma consolidated statements of
operations reflect adjustments to Auxer's historical
consolidated statements of operations for the year ended
December 31, 1999 and the six months ended June 30, 2000,
to give effect to the acquisition of equipment by the newly
formed subsidiary Auxer Telecom as if it had occurred on
January 1, 1999.
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The unaudited pro forma consolidated statements of
operations are not necessarily indicative of what the actual
results of operations of Auxer would have been assuming the
transactions had been completed as set forth above, nor do
they purport to represent Auxer's results of operations for
future periods.
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The following unaudited pro forma combined balance sheet
reflects adjustments to Auxer's historical consolidated
balance sheet at June 30, 2000 to give effect to this
purchase.
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The unaudited pro forma consolidated financial statements
should be read in conjunction with the historical financial
statements and related notes to Auxer.
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THE AUXER GROUP, INC.
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UNAUDITED PROFORMA CONSOLIDATED
FINANCIAL STATEMENTS
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Index
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Financial Statements:
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Unaudited Proforma Combined Balance Sheets - 6/30/00
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Unaudited Proforma Consolidated Statements
of Operations - 06/30/2000
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Unaudited Proforma Consolidated Statements
of Operations - 12/31/1999
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Notes to Unaudited Proforma Consolidated Financial
Statements
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THE AUXER GROUP, INC.
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UNAUDITED PROFORMA COMBINED BALANCE SHEET
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JUNE 30, 2000
<S> <C> <C> <C> <C>
Auxer Auxer Pro Forma Pro Forma
Assets Group Telecom Adjustments Combined
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Current Assets
Cash $ 9,420 $ $ $ 9,420
Accounts receivable, net 362,696 362,696
Inventory 639,386 639,386
Receivable from Auxer Telecom 10,000 (10,000) 0
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Total Current Assets 1,021,502 0 (10,000) 1,011,502
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Property and equipment, net 79,949 415,468 495,417
Other assets 45,396 45,396
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Total Assets $ 1,146,847 $ 415,468 $ (10,000) $ 1,552,315
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LIABILITIES AND CAPITAL
Current Liabilities
Accounts payable and
accrued expenses $ 350,948 $ 91,680 $ 442,628
Credit line 64,203 64,203
Payable to Auxer group - 10,000 (10,000) 0
Notes payable 84,278 509,334 593,612
Notes payable-shareholders 85,368 85,368
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Total Current Liabilities 584,797 611,014 (10,000) 1,185,811
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Long term debt, less
current maturities 3,702 3,702
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Stockholders' Equity
Common stock, 150,000,000
shares authorized at
$.001 par value 78,912 78,912
Preferred stock 25,000,000
shares authorized at
$.001 par value, 2,750,000
outstanding in 1999 2,750 2,750
Additional paid in capital 5,883,416 5,883,416
(Deficit) (5,406,730) (195,546) (5,602,276)
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Stockholders' (Deficit) 558,348 (195,546) 0 362,802
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Total Liabilities and
Capital $ 1,146,847 $ 415,468 $ (10,000) $ 1,552,315
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Notes to Unaudited Combined Balance Sheet
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Note 1- Proforma adjustments represent intercompany eliminations.
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F1
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THE AUXER GROUP, INC.
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UNAUDITED PROFORMA CONSOLIDATED STATEMENT OF OPERATIONS
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JUNE 30, 2000
<S> <C> <C> <C> <C>
Auxer Auxer Pro Forma Pro Forma
Assets Group Telecom Adjustments Combined
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Income $ 1,050,918 $ $ $ 1,050,918
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Less cost of good sold (705,453) (705,453)
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Gross profit 345,465 0 0 345,465
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Operations:
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General and administrative 904,008 904,008
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Depreciation 8,846 51,933 60,779
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Interest expense 8,005 30,560 38,565
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Total expense 920,859 82,493 0 1,003,352
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Income (loss) from operations (575,394) (82,493) 0 (657,887)
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Other income (expense)
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Loss on abandonment of leasehold
improvements (2,518) (2,518)
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Net income (loss) $ (577,912) $ (82,493) $ 0 $ (660,405)
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Net income (loss) per share $ (0.01)
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Weighted average shares outstanding (000's) 56,737
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F2
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THE AUXER GROUP, INC.
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UNAUDITED PROFORMA CONSOLIDATED STATEMENT OF OPERATIONS
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DECEMBER 31, 1999
<S> <C> <C> <C> <C>
Auxer Auxer Pro Forma Pro Forma
Assets Group Telecom Adjustments Combined
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Income $ 871,259 $ $ $ 871,259
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Less cost of good sold (622,210) (622,210)
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Gross profit 249,049 0 0 249,049
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Operations:
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General and administrative 1,302,418 1,302,418
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Depreciation 11,626 51,933 63,559
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Interest expense 10,618 61,120 71,738
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Total expense 1,324,662 113,053 0 1,437,715
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Income (loss) from
operations (1,075,613) (113,053) 0 (1,188,666)
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Other income (expense) 706 706
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Loss on abandonment of
leasehold improvements 0
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Net income (loss) before
extraordinary items (1,074,907) (113,053) 0 (1,187,960)
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Extraordinary item, gain on
forgiveness of debt 99,780 0 0 99,780
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Net income (loss) $ (975,127) $ (113,053) $ 0 $ (1,088,180)
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Net income (loss) per share $ (0.02)
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Weighted average shares outstanding (000's) 48,756
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F3
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NOTES TO THE UNAUDITED PRO FORMA
STATEMENT OF OPERATIONS
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Note 1 - The Pro Forma Statements of Operations assume that
the acquisition of the Telecom switching equipment occurred
on January 1, 1999. For purpose of the Pro Forma Statements
of Operations for the year ended December 31, 1999 and the
six months ended June 30, 2000, Auxer Group's historical
statements of operations for the year ended December 31,
1999 and the six months ended June 30, 1999 were combined
with the estimated results of Auxer Telecom.
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Note 2 - The estimated proforma depreciation for Auxer
Telecom is based upon the equipment fair value and the
equipment is being depreciated over its estimated useful
life of five years. Company policy is to take one half
year's depreciation in the year of acquisition.
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Note 3 - Interest expense reflects imputed interest at a
rate of 12% on the loan payable for the equipment.
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Index to Exhibits
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2.1 Contract for the Sale of Goods. *
99 Press Release *
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* Filed with the original 8-K filing filed on September 8,
2000. (SEC No. 0-30440)
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SIGNATURES
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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.
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The Auxer Group, Inc.,
a Delaware corporation
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/s/ Eugene Chiaramonte
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Eugene Chiaramonte, Jr.
President
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DATED: November 7, 2000
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