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: June 30, 1999
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3Si Holdings, Inc.
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(Exact Name of Registrant as specified in its charter)
Wyoming 0-9358 83-0245581
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification Number)
6886 S. Yosemite Street
Englewood, CO 80112
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(Address of principal executive offices) (Zip Code)
(303) 741-9123
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(Registrant's telephone number, including area code)
<PAGE>
Item 2. Acquisition or Disposition of Assets
On June 30, 1999, the Registrant consummated the sale of substantially all of
its assets - excluding cash, accounts receivable, and its subsidiary, (Kewi.net)
- - to P.C. Specialists, Inc., a California corporation.
This item was originally reported on Form 8-K dated July 26, 1999. Corrected
terms of the sale are reported below.
The effective date of the asset sale is May 1, 1999.
The Registrant was paid $802,000 of the purchase price at closing plus
$148,000 for expenses from May 1, 1999 to the date of closing.
In addition to the $802,000 cash received at closing, the Registrant
will also be able to "earn" up to an additional $2,198,000 over a
three-year period based upon the contingencies set forth in the
agreement. In no event will the purchase price of the assets sold
exceed $3,000,000.
Item 7. Financial Statements and Exhibits
Exhibit No. Description
99-1 Proforma financial information
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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 thereunto duly authorized.
3Si Holdings, Inc.
(Registrant)
Date: September 10, 1999 By: /s/ Frank W. Backes
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Frank W. Backes
Chief Executive Officer
Board of Directors
3Si Holdings, Inc.
The accompanying historical condensed balance sheet of 3Si
Holdings, Inc. as of June 30, 1999, and the related historical condensed
statement of income for the year then ended were not audited by us, and,
accordingly, we do not express an opinion on them
/s/ Balogh & Tjornehoj, LLP
Denver, Colorado
September 10, 1999
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3Si Holdings, Inc.
<TABLE>
<CAPTION>
Proforma Balance Sheet
(Unaudited)
June 30, 1999
Historical Proforma
June 30, 1999 Adjustments June 30, 1999
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<S> <C> <C>
Current assets
Cash ..................................... $ 1,372,293 $ 1,372,293
Accounts receivable ...................... 437,220 437,220
Other current assets ..................... 80,000 80,000
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Total current assets ................ 1,889,513 1,889,513
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Net property and equipment ..................... 21,075 21,075
Other assets ................................... --
Software development costs (net) ......... 100,227 100,227
Deposits & other ......................... 212,395 212,395
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Total other assets .................. 312,622 312,622
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Total assets ................................... $ 2,223,210 $ 2,223,210
=========================================
Current liabilities
Accounts payable ......................... $ 3,384,388 $ 3,384,388
Accrued liabilities ...................... 85,444 85,444
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Total current liabilities ........... 3,469,832 3,469,832
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Minority interest .............................. 507,242 507,242
Stockholders' equity ........................... (1,753,864) (1,753,864)
-----------------------------------------
Total liabilities and stockholders' equity ..... $ 2,223,210 $ 2,223,210
=========================================
</TABLE>
Explanatory notes:
The sale of substantially all assets is already reflected in the
accompanying balance sheet. No proforma adjustments are necessary.
<PAGE>
3Si Holdings, Inc.
<TABLE>
<CAPTION>
Proforma Income Statement
(Unaudited)
Year Ended June 30, 1999
Historical Proforma
June 30, 1999 Adjustments June 30, 1999
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<S> <C> <C> <C>
Net revenues ................................... $ 17,019,752 $(16,986,176) $ 33,576
Cost of product sold ........................... 10,453,510 (10,344,269) 109,241
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Gross profit ............................. 6,566,242 (6,641,907) (75,665)
Selling & administrative expense ............... 9,170,497 (8,648,972) 521,525
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Loss from operations ..................... (2,604,255) 2,007,065 (597,190)
Other income (expense)
Miscellaneous income ..................... 19,019 (12,860) 6,159
Interest expense ......................... (230,424) 230,424 --
Gain/loss on asset disposition ........... --
Sale of government division ......... 500,000 500,000
Sale of value added reseller business 276,334 276,334
Goodwill write-off .................. (565,104) (565,104)
Other asset write off ............... (283,095) (283,095)
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Total other income/expense ............... (283,270) 217,564 (65,706)
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Net loss before minority interest and taxes .... (2,887,525) 2,224,629 (662,896)
Minority interest .............................. 42,758 42,758
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Net loss before taxes .................... (2,844,767) 2,224,629 (620,138)
Income taxes ........................ -- --
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Net loss ....................................... $ (2,844,767) $ 2,224,629 $ (620,138)
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Net loss per share ............................. $ (0.07) $ 0.05 $ (0.02)
============================================
</TABLE>
Explanatory notes:
Proforma adjustments have been made to reflect the impact of the sale of
substantially all assets (value added reseller business) as if the sale had
been consummated at the beginning of the fiscal year.
Proforma sales and cost of sales represent KEWI license fee and KEWI
consulting activities for the entire fiscal year. Sales and costs of sales
related to the value added reseller business have been eliminated.
Proforma sales and administrative expense represents estimated salaries,
amortization, and other costs for the entire fiscal year related to the
KEWI product. Estimated administrative expense related to the value added
reseller business has been eliminated. Estimated interest expense related
to the value added reseller business sold has been eliminated.
