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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): FEBRUARY 20, 1998
INFODATA SYSTEMS INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
COMMISSION FILE NUMBER 000-10416
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<S> <C>
VIRGINIA 16-0954695
(STATE OR OTHER JURISDICTION OF (IRS EMPLOYER IDENTIFICATION NUMBER)
INCORPORATION OR ORGANIZATION)
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12150 MONUMENT DRIVE, FAIRFAX, VIRGINIA 22033
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(ZIP CODE)
(703) 934-5205
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
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INFODATA SYSTEMS INC.
FORM 8-K
CURRENT REPORT
TABLE OF CONTENTS
Item 5. Other Event
Signature
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ITEM 5. OTHER EVENT
The Company's Common Stock is listed on the Nasdaq Stock Market ("Nasdaq").
In August 1997, the Company received a notice from Nasdaq that it was not in
compliance with Nasdaq's requirement that listed issuers maintain a minimum of
$1,000,000 in capital and surplus. In November 1997, the Company appeared at a
hearing before a Nasdaq Listing Qualifications Panel to demonstrate compliance
with the minimum capital and surplus requirement and to request continued
listing on Nasdaq. The panel agreed to allow the Company to continue to be
listed if (i) on or before February 20, 1998, the Company made a public filing
with the Securities and Exchange Commission (the "Commission") and Nasdaq
evidencing the closing of the public offering referred to below and a minimum of
$5,500,000 in net tangible assets and (ii) the Company is able to evidence
compliance with Nasdaq's new standards for continued listing, which go into
effect on February 23, 1998. The standards for continued listing include (i)
maintenance of net tangible assets of at least $2,000,000, or a market
capitalization of $35,000,000, or net income in the latest fiscal year (or in
two of the last three fiscal years) of at least $500,000; (ii) at least 500,000
shares must be publicly held; (iii) the market value of the publicly held shares
must be at least $4,000,000; (iv) there must be at least 300 shareholders; and
(v) there must be at least two market-makers for the publicly traded shares. The
Company believes it is in compliance with the new standards for continued
listing on Nasdaq described above.
To comply with the filing requirement described above, the Company is
hereby filing with the Commission this current report on Form 8-K containing an
unaudited consolidated balance sheet as at December 31, 1997 and an unaudited
consolidated statement of operations for the year ended December 31, 1997, each
of which includes pro forma adjustments to indicate the closing of the public
offering of 1,600,000 shares of the Company's common stock on February 20, 1998.
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INFODATA SYSTEMS INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEET
(AMOUNTS IN THOUSANDS)
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<CAPTION>
DECEMBER 31, 1997
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PRO
ACTUAL FORMA(1)
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<S> <C> <C>
ASSETS
Current assets
Cash and cash equivalents.......................................... $ 491 $ 7,141
Short term investments............................................. 4 4
Accounts receivable, net of allowance of $80 and $80............... 2,551 2,551
Other current assets............................................... 81 81
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Total current assets....................................... 3,127 9,777
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Property and equipment, at cost
Furniture and equipment............................................ 2,792 2,792
Less accumulated depreciation and amortization..................... (2,220) (2,220)
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572 572
Goodwill, net of accumulated amortization of $218 and $218........... 3,400 3,400
Other assets......................................................... 342 342
Software development costs, net of accumulated amortization of $2,094
and $2,094......................................................... 42 42
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Total assets............................................... 7,483 $14,133
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of capital lease obligations....................... $ 26 26
Note payable....................................................... 880 880
Accounts payable................................................... 1,508 1,508
Accrued expenses................................................... 1,080 1,080
Deferred revenue................................................... 1,287 1,287
Current portion of deferred rent................................... 33 33
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Total current liabilities..................................... 4,814 4,814
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Capital lease obligations............................................ 6 6
Deferred revenue..................................................... 75 75
Deferred rent........................................................ -- 0
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Total liabilities............................................. 4,895 4,895
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Shareholders' equity
Common stock....................................................... 82 130
Additional paid-in capital......................................... 12,603 19,205
Accumulated deficit................................................ (10,097) (10,097)
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Total shareholders' equity.................................... 2,588 9,238
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Total liabilities and shareholders' equity................. $ 7,483 $14,133
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FOOTNOTES TO THE UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
The pro forma adjustments to the Unaudited Pro Forma Consolidated Balance Sheet
as of December 31, 1997 are as follows:
(1) To record the net proceeds received from the stock offering that was
declared effective on February 17, 1998 and consummated on February 20,
1998. The gross proceeds were $8,000,000 which consisted of 1,600,000 shares
priced at $5.00 per share. The expenses of the stock offering (including the
underwriters' fee, legal fees, accounting fees, blue sky fees, registration
costs, printing and engraving costs, and other miscellaneous fees) were
estimated to be $1,350,000. The resultant net proceeds were $6,650,000. The
amount credited to common stock of $48,000 was calculated by multiplying the
number of shares in the offering of 1,600,000 by the par value per share of
$0.03. The remaining gross proceeds were credited to paid-in capital.
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INFODATA SYSTEMS INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
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<CAPTION>
YEAR ENDED
DECEMBER 31, 1997
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ACTUAL PRO FORMA
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<S> <C> <C>
Revenues........................................................... $ 10,643 $10,643
Cost of revenues................................................... 6,029 6,029
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Gross profit....................................................... 4,614 4,614
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Operating expenses:
Research and development......................................... 2,519 2,519
Selling, general and administrative.............................. 5,551 5,551
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8,070 8,070
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Operating income (loss)............................................ (3,456) (3,456)
Interest income.................................................... 60 60
Interest expense................................................... (38) (38)
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Income (loss) before income taxes.................................. (3,434) (3,434)
Provision for income taxes......................................... (5) (5)
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Net income (loss).................................................. $ (3,429) $(3,429)
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Net income (loss) available to common shareholders................. $ (3,429) $(3,429)
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Per share:
Net income (loss) per common and equivalent share:
Primary....................................................... $ (1.19) $ (1.19)
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Fully diluted................................................. $ (1.19) $ (1.19)
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Weighted average shares:
Primary....................................................... 2,891 2,891
Fully diluted................................................. 2,891 2,891
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SIGNATURE
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.
INFODATA SYSTEMS INC.
/s/ CHRISTOPHER P. DETTMAR
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Christopher P. Dettmar
Chief Financial Officer
Date: February 20, 1998
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