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UNITED STATES
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 8, 2000
--------------
e-financial depot.com, Inc.
-----------------------------
(Exact name of registrant as specified in its charter)
Delaware 000-26899 33-0809711
-------- --------- ----------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
150 - 1875 Century Park East, Century City, California 90067
-------------------------------------------------------------- -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (877) 739-3812
---------------
(Former name or former address, if changed since last report.)
ITEM 1. CHANGES IN CONTROL OF REGISTRANT.
Not applicable.
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
Effective June 8, 2000, the Registrant completed the acquisition of all of the
issued and outstanding shares of Trade-Fast, Inc. ("Trade-Fast"), a Delaware
corporation, pursuant to a share purchase agreement dated November 30, 1999, as
amended by an amending agreement dated June 8, 2000 (together the "Agreement"),
between the Registrant and the two shareholders of Trade-Fast (the
"Shareholders), Alan Cohen, a businessperson resident in New York, and Winford
Holdings Group Limited, a closely held corporation ("Winford").
Trade-Fast provides management services to New World Securities, a registered
broker-dealer who licenses a securities trading platform providing NASDAQ Level
II service. For the fiscal year ended March 31, 2000 Trade-Fast had income
of $2,300,000.
Under the terms of the Agreement the Registrant is to issue a total of 5,000,000
shares of common stock, at a deemed price per share of $4.50 per share, as to
1,000,000 to Alan Cohen and as to 4,000,000 to Winford. The number of shares
issuable to the Shareholders under the Agreement is subject to adjustment in
circumstances where the Registrant issues shares, other than pursuant to
existing agreements or pursuant to the exercise of bona fide stock options
granted to directors, officers and consultants, at a price of less than $4.50
per share.
The Registrant has also agreed to loan a total of $1,500,000 to Winford, said
loan to bear interest at 6% per annum with a term of three years from the date
of initial advance and to be secured by a pledge of 1,000,000 of the shares of
<PAGE>
the Registrant issuable to Winford, with such shares being the sole recourse of
the Registrant in the event of default. To date, the Registrant has advanced
$1,000,000 of the loan effective as of February 7, 2000.
The Agreement also requires the Registrant to invest a total of $3,500,000, in
the development of the business of Trade-Fast during the period ending November
30, 2000. To date, a total of $1,000,000 has been so invested.
ITEM 3. BANKRUPTCY OR RECEIVERSHIP
Not applicable.
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
Not applicable.
ITEM 5. OTHER EVENTS
Not applicable.
ITEM 6. RESIGNATIONS OF REGISTRANT'S DIRECTORS
Not applicable.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(a) Financial Statements of Business Acquired
TradeFast, Inc.
<PAGE>
TRADEFAST, INC.
FINANCIAL STATEMENTS
MARCH 31, 2000 AND 1999
<PAGE>
TRADEFAST, INC.
---------------
CONTENTS
--------
Page
----
Independent Auditors' Report 1
------------------------------
Financial Statements
---------------------
Balance Sheets at March 31, 2000 and 1999 2
Statements of Operations and Retained Earnings
(Accumulated Deficit)
for the Year Ended March 31, 2000 and the
Period From Inception
(July 1, 1998) to March 31, 1999 3
Statements of Cash Flows for the Year Ended
March 31, 2000
and the Period From Inception (July 1, 1998)
to March 31, 1999 4-5
Notes to Financial Statements 6-8
<PAGE>
INDEPENDENT AUDITORS' REPORT
----------------------------
To The Stockholders
Tradefast, Inc.
Garden City, New York
We have audited the accompanying balance sheets of Tradefast, Inc. (a New York
corporation) as of March 31, 2000 and 1999, and the related statements of
operations and retained earnings (accumulated deficit) and cash flows for the
year ended March 31, 2000 and the period from inception (July 1, 1998) to March
31, 1999. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Tradefast, Inc. at March 31,
2000 and 1999, and the results of its operations and its cash flows for the year
ended March 31, 2000 and the period from inception (July 1, 1998) to March 31,
1999, in conformity with generally accepted accounting principles.
/s/ Grassi & Co.
GRASSI & CO., CPAs, P.C.
Lake Success, New York
June 12, 2000
-1-
<PAGE>
<TABLE>
<CAPTION>
TRADEFAST, INC.
BALANCE SHEETS
MARCH 31, 2000 AND 1999
ASSETS
------
2000 1999
----------------------------------------
<S> <C> <C>
CURRENT ASSETS:
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 442,105 $ 3,481
Accounts receivable (less allowance for doubtful
accounts of $-0-). . . . . . . . . . . . . . . . . . . . . . . . . . . 85,000 219,050
Due from stockholder. . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 -0-
------------------------------ --------
Total Current Assets. . . . . . . . . . . . . . . . . . . . . . . . . 537,105 222,531
------------------------------ --------
OTHER ASSETS:
Deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000 -0-
Due from stockholder. . . . . . . . . . . . . . . . . . . . . . . . . . -0- 10,000
------------------------------ --------
2,000 10,000
------------------------------ --------
$ 539,105 $232,531
============================== ========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
-------------------------------------------------
CURRENT LIABILITIES:
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 457,036 $114,912
Income taxes payable - current . . . . . . . . . . . . . . . . . . . . 2,000 2,000
- deferred . . . . . . . . . . . -0- 31,000
Deposit payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 -0-
------------------------------ --------
Total Current Liabilities . . . . . . . . . . . . . . . . . . . . . . 959,036 147,912
------------------------------ --------
STOCKHOLDERS' EQUITY (DEFICIENCY):
Common stock - no par value; 1,500 shares authorized,
issued and outstanding . . . . . . . . . . . . . . . . . . . . . . . . 5,000 5,000
Retained earnings (accumulated deficit) . . . . . . . . . . . . . . . . (424,931) 79,619
------------------------------ --------
Total Stockholders' Equity (Deficiency) . . . . . . . . . . . . . . . . (419,931) 84,619
------------------------------ --------
$ 539,105 $232,531
============================== ========
The accompanying notes are an integral part of this financial statement.
</TABLE>
-2-
<PAGE>
<TABLE>
<CAPTION>
TRADEFAST, INC.
STATEMENTS OF OPERATIONS AND RETAINED EARNINGS (ACCUMULATED DEFICIT)
FOR THE YEAR ENDED MARCH 31, 2000 AND
THE PERIOD FROM INCEPTION (JULY 1, 1998) TO MARCH 31, 1999
2000 1999
--------------------------------------
<S> <C> <C>
INCOME:
Management fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,332,253 $819,555
---------------------------- --------
EXPENSES:
Subcontracted consulting and management
services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,491,620 659,802
Reimbursed expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 104,044 -0-
Telephone expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,387 16,175
Computer expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,080 3,500
Legal and professional expense. . . . . . . . . . . . . . . . . . . . . 16,951 6,000
Office salaries and employee benefits . . . . . . . . . . . . . . . . . 98,321 -0-
Office expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,541 21,459
Training expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,670 -0-
Storage expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,318 -0-
Bank charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,128 -0-
Auto expense 2,572 -0-
Meals and entertainment . . . . . . . . . . . . . . . . . . . . . . . . 4,171 -0-
---------------------------- --------
Total Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,867,803 706,936
---------------------------- --------
INCOME (LOSS) BEFORE PROVISION FOR
(BENEFIT FROM) INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . (535,550) 112,619
PROVISION FOR (BENEFIT FROM) INCOME TAXES . . . . . . . . . . . . . . . . (31,000) 33,000
---------------------------- --------
NET INCOME (LOSS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . (504,550) 79,619
RETAINED EARNINGS, BEGINNING OF YEAR. . . . . . . . . . . . . . . . . . . 79,619 -0-
---------------------------- --------
RETAINED EARNINGS (ACCUMULATED DEFICIT),
END OF YEAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (424,931) $ 79,619
============================ ========
The accompanying notes are an integral part of this financial statement.
</TABLE>
-3-
<TABLE>
<CAPTION>
TRADEFAST, INC.
STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED MARCH 31, 2000 AND
THE PERIOD FROM INCEPTION (JULY 1, 1998) TO MARCH 31, 1999
2000 1999
-----------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from management fees. . . . . . . . . . . . . . . . . . . $ 2,466,303 $ 600,505
Cash paid for expenses. . . . . . . . . . . . . . . . . . . . . . . . . (2,527,679) (592,024)
---------------------------- ----------
NET CASH (USED IN) PROVIDED BY
OPERATING ACTIVITIES. . . . . . . . . . . . . . . . . . . . . . . . . (61,376) 8,481
---------------------------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock. . . . . . . . . . . . . . . . . -0- 5,000
Proceeds from deposit payable . . . . . . . . . . . . . . . . . . . . . 500,000 -0-
---------------------------- ----------
Cash Provided By Financing Activities. . . . . . . . . . . . . . . . 500,000 5,000
---------------------------- ----------
Advances to stockholder . . . . . . . . . . . . . . . . . . . . . . . . -0- (10,000)
---------------------------- ----------
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES. . . . . . . . . . . . . . . . . . . . . . . . . 500,000 (5,000)
---------------------------- ----------
NET INCREASE IN CASH. . . . . . . . . . . . . . . . . . . . . . . . . 438,624 3,481
CASH, BEGINNING OF YEAR . . . . . . . . . . . . . . . . . . . . . . . 3,481 -0-
---------------------------- ----------
CASH, END OF YEAR . . . . . . . . . . . . . . . . . . . . . . . . . . $ 442,105 $ 3,481
============================ ==========
The accompanying notes are an integral part of this financial statement.
</TABLE>
-4-
<PAGE>
<TABLE>
<CAPTION>
TRADEFAST, INC.
STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED MARCH 31, 2000 AND
THE PERIOD FROM INCEPTION (JULY 1, 1998) TO MARCH 31, 1999
2000 1999
----------------------------
<S> <C> <C>
RECONCILIATION OF NET INCOME (LOSS) TO NET
-------------------------------------------------------------------------
CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES:
-------------------------------------------------------------------------
NET INCOME (LOSS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (504,550) $ 79,619
---------------------------- ----------
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES:
Changes in Assets (Increase) Decrease:
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . 134,050 (219,050)
Deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,000) -0-
Changes in Liabilities Increase (Decrease):
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . 342,124 114,912
Income taxes payable - current. . . . . . . . . . . . . . . . . . . . . -0- 2,000
- deferred. . . . . . . . . . . . . . . . . . (31,000) 31,000
---------------------------- ----------
Total Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . 443,174 (71,138)
---------------------------- ----------
NET CASH (USED IN) PROVIDED
BY OPERATING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . $ (61,376) $ 8,481
============================ ==========
The accompanying notes are an integral part of this financial statement.
</TABLE>
-5-
<PAGE>
TRADEFAST, INC.
NOTES TO FINANCIAL STATEMENTS
Note 1 - Summary of Significant Accounting Policies
----------------------------------------------
Nature of Operations
----------------------
Tradefast, Inc. ("The Company") formed July 1, 1998, which is located in Garden
City, New York, provides management services for an affiliated broker/dealer.
Cash Equivalents
-----------------
The Company considers securities purchased with maturities of three months or
less to be cash equivalents.
Use of Estimates
------------------
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
Concentration of Credit Risk
-------------------------------
The Company maintains its cash balance at one financial institution located in
Garden City, New York. The cash account is in excess of the Federal Deposit
Insurance Corporation (FDIC) insured limit of $100,000. The Company believes it
is not exposed to any significant credit risk on cash.
The Company obtains all of its income from the management of one company.
Income Taxes
-------------
Income taxes are provided for the tax effects of transactions reported in the
financial statements and consist of taxes currently due plus deferred taxes
related primarily to the differences between the basis of accounts receivable
and accounts payable for financial and income tax reporting.
The deferred tax assets and liabilities represent the future tax return
consequences of those differences, which will either be taxable or deductible
when the assets and liabilities are recovered or settled.
The Company reports revenue and expenses for tax purposes using the cash
receipts and disbursements method.
-6-
<PAGE>
TRADEFAST, INC.
NOTES TO FINANCIAL STATEMENTS
Note 2 - Future Cash Flows
-------------------
The shareholders of the Company have committed to provide the funds necessary to
fund any cash flow deficiency for the next year.
Note 3 - Related Party Transactions
----------------------------
The Company has entered into a management agreement to provide all management
and related services to an affiliated company. The companies are related by
common ownership.
The Company has availed itself to rent-free facilities from an affiliated
broker/dealer which it manages.
During the year ended March 31, 2000 and the period ended March 31, 1999, the
Company incurred costs from related parties in the amounts of $990,000 and
$174,740, respectively.
During the period ended March 31, 1999, the Company advanced $10,000 to one of
its stockholders. This advance was outstanding at March 31, 2000 and 1999. The
advance is unsecured, bears no interest, and repayment is expected by December
31, 2000.
Note 4 - Accounts Payable
-----------------
Accounts payable at March 31, 2000 and 1999 include $213,537 and $57,000,
respectively, payable to related parties.
Note 5 - Deposit Payable
----------------
As of March 31, 2000, the stockholders of the Company have signed a letter of
intent to sell their entire ownership interest in the Company to an unrelated
publicly traded firm effective April 1, 2000. The deposit payable represents
funds advanced to the Company by that firm in anticipation of the sale which
requires an infusion of capital to the Company for development purposes. As of
the date of the financial statements, final documents have not been signed by
the parties to that event.
-7-
<PAGE>
TRADEFAST, INC.
NOTES TO FINANCIAL STATEMENTS
Note 6 - Provision For (Benefit From) Income Taxes
----------------------------------------------
<TABLE>
<CAPTION>
The provision for (benefit from) income taxes is summarized as follows:
2000 1999
--------- -------
<S> <C> <C>
Current:
---------
Federal $ -0- $ 1,200
State . -0- 800
Deferred:
---------
Federal (20,000) 20,000
State (11,000) 11,000
-------- ------
$(31,000) $33,000
========= =======
</TABLE>
<TABLE>
<CAPTION>
The net deferred tax asset and liability includes the following components:
2000 1999
---------- ---------
<S> <C> <C>
Deferred tax liability . . . . . . . . $ -0- $(31,000)
Deferred tax asset . . . . . . . . . . 177,000 -0-
Deferred tax asset valuation allowance (177,000) -0-
---------- ---------
$ -0- $(31,000)
========== =========
</TABLE>
For the year ended March 31, 2000, the provision for income taxes differs from
statutory rates due to the valuation allowance.
Note 7 - Commitment
----------
The Company has entered into an agreement with a stockholder which requires the
Company to pay the stockholder $15,000 a month for consulting services. The
agreement is effective for a period of two years and will automatically renew
unless either party provides 90 days written notice of the termination. The
future minimal payments are as follows:
Years Ending March 31:
------------------------
2001 $ 180,000
2002 135,000
-------
$ 315,000
=======
Payments relating to the above agreement for the year ended March 31, 2000 and
the period ended March 31, 1999 amounted to $200,000 and $43,500, respectively.
-8-
<PAGE>
(b) Pro Forma Financial Information.
Consolidated Pro Forma Unaudited Balance Sheet as of December 31, 1999
Consolidated Pro Forma Unaudited Statement of Operations as of December 31,
1999
Notes to Condensed Pro Forma Unaudited Financial Statements as of December
31, 1999
<PAGE>
<TABLE>
<CAPTION>
EFINANCIAL DEPOT. COM, INC.
CONSOLIDATED PROFORMA UNAUDITED BALANCE SHEET
DECEMBER 31, 1999
ASSETS
Pro forma Pro forma
eFinancial Trade-Fast Adjustments Consolidated
------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C>
CURRENT ASSETS:
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,859 442,105 (500,000) (2) $(46,036)
Accounts Receivable, net of allowance . . . . . . . . . 119,610 85,000 204,610
Securities available for sale . . . . . . . . . . . . . 51,836 - 51,836
Accrued tax benefits. . . . . . . . . . . . . . . . . . 17,980 - 17,980
Prepaid expenses. . . . . . . . . . . . . . . . . . . . 35,005 - 35,005
Due from related parties. . . . . . . . . . . . . . . . - 10,000 10,000
------------ ------------ -----------
236,290 537,105 273,395
PROPERTY AND EQUIPMENT, AT COST:. . . . . . . . . . . . . -
Furniture and equipment . . . . . . . . . . . . . . . . 35,176 - 35,176
Less accumulated depreciation . . . . . . . . . . . . . 4,020 - 4,020
------------ ------------ ------------
31,156 - 31,156
OTHER ASSETS:
Goodwill. . . . . . . . . . . . . . . . . . . . . . . . - 13,424,931 (1) 13,424,931
Deposits. . . . . . . . . . . . . . . . . . . . . . . . - 2,000 2,000
------------ ------------ -------------
- 2,000 13,426,931
------------ ------------ -------------
$ 267,446 $ 539,105 $ 13,731,482
============ ============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses . . . . . . . . . 152,328 459,036 611,364
Due to related parties. . . . . . . . . . . . . . . . . 500,000 (500,000) (2) -
Notes payable . . . . . . . . . . . . . . . . . . . . . 28,220 - 28,220
------------ ------------ -------------
180,548 959,036 639,584
STOCKHOLDERS' EQUITY:
Common stock. . . . . . . . . . . . . . . . . . . . . . 12,500 5,000 (5,000) (1) 17,500
5,000 (1)
Additional paid in capital. . . . . . . . . . . . . . . 13,000,000 (1) 13,000,000
Accumulated earnings/(deficit). . . . . . . . . . . . . 96,907 (424,931) 424,931 (1) 96,907
Unrealized loss on securities available for sale . . . . (22,509) - (22,509)
------------ ------------ -------------
86,898 (419,931) 13,091,898
------------ ------------ -------------
$ 267,446 $ 539,105 $ 13,731,482
============ ============ =============
See accompanying notes to pro forma financial information
</TABLE>
<TABLE>
<CAPTION>
EFINANCIAL DEPOT. COM, INC.
CONSOLIDATED PROFORMA UNAUDITED STATEMENT OF OPERATIONS
DECEMBER 31, 1999
Pro forma Pro forma
eFinancial Trade-Fast Adjustments Consolidated
------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C>
Operating revenue . . . . . . . . . . . . . . . . . . . . $ 1,197,813 $ 2,332,253 $ 3,530,066
Operating expenses:
General and administrative. . . . . . . . . . . . . . . 1,023,355 2,867,803 3,891,158
Depreciation and amortization . . . . . . . . . . . . . 3,520 - 671,246 (3) 674,766
------------ ------------ -------------
1,026,875 2,867,803 4,565,924
------------ ------------ -------------
Operating income (loss) . . . . . . . . . . . . . . . . . 170,938 (535,550) (1,035,858)
Interest expense. . . . . . . . . . . . . . . . . . . . . - - -
Realized loss on securities available for sale. . . . . . (32,203) - (32,203)
------------ ------------ ------------
Net income (loss) before taxes . . . . . . . . . . . . . 138,735 (535,550) (1,068,061)
Income tax (expense) benefit. . . . . . . . . . . . . . . (75,350) 31,000 (44,350)
------------ ------------ ------------
Net income (loss) . . . . . . . . . . . . . . . . . . . . $ 63,385 $ (504,550) $ (1,112,411)
============ ============ =============
Earnings (loss) per common share:
Basic and diluted . . . . . . . . . . . . . . . . . . . $ 0.01 $ (0.06)
============ ============
Weighted average shares outstanding:
Basic and diluted . . . . . . . . . . . . . . . . . . . 12,500,000 17,500,000
See accompanying notes to proforma financial information
</TABLE>
<PAGE>
eFINANCIAL DEPOT.COM, INC.
NOTES TO CONDENSED PROFORMA UNAUDITED FINANCIAL STATEMENTS
December 31, 1999
The Proforma Unaudited Financial Statements have been prepared in order to
present consolidated financial position and results of operations of eFinancial
Depot.Com, Inc. (eFinancial) and Trade-Fast, Inc. (Trade-Fast) as if the
acquisition had occurred at the beginning of 1999.
In consideration for the acquisition of all of the issued and outstanding shares
of Trade-Fast, eFinancial issued a total of five million unregistered common
shares. The stock that was issued in this transaction was valued at 85
percent of the average of the stock's closing price five days prior to June 8,
2000.
Following is a description of the proforma adjustments that have been made to
the financial statements.
(1) To record the acquisition of Trade-Fast for stock. The significant
components of this transaction are:
Stock issued $ 13,005,000
Excess of liabilities assumed over assets acquired 419,931
-------------
Total consideration paid $ 13,424,931
=============
(2) To reverse the effect of $500,000 advanced by eFinancial to Trade-Fast
prior to March 31, 2000, in anticipation of the acquisition. Trade-Fast uses a
fiscal year ending March 31. Therefore, the elimination of this loan requires
that cash be restated.
(3) To record one year's amortization of intangibles arising from the
acquisition of Trade-Fast. The intangible assets acquired in the acquisition of
Trade-Fast are being amortized over a twenty-year period.
<PAGE>
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(CONT'D)
Exhibits
--------
(2) Plan of Acquisition, reorganization, arrangement, liquidation
or succession
2.1 Share Purchase Agreement dated November 30, 1999
2.2 Letter Agreement, dated June 8, 2000, amending the
terms of the Share Purchase Agreement
ITEM 8. CHANGE IN FISCAL YEAR
Not applicable.
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.
E-FINANCIAL DEPOT.COM, INC.
Date: August 21, 2000 /s/ John Huguet
----------------------------------
John Huguet, President
