<PAGE> 1
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)
APRIL 17, 1996
GISH BIOMEDICAL, INC.
(Exact name of registrant as specified in its charter)
CALIFORNIA
(State or other jurisdiction of incorporation or organization)
0-10728 95-3046028
(Commission File Number) (I.R.S. Employer
Identification Number)
2681 KELVIN AVENUE
IRVINE, CALIFORNIA 92715
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code
(714) 756-5485
The undersigned Registrant hereby amends the following items,
financial statement, exhibit or other portions of its Current Report on
Form 8-K dated April 17, 1996, as set forth in the pages attached hereto:
Item 7. Financial Statements and Exhibits
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements of Business Acquired
-Audited Financial statements of Creative Medical Development,
Inc. for the years ended September 30, 1995 and 1994, together
with report of Independent Accountants. See attachment 7(a)1.
-Unaudited Interim financial statements of Creative Medical
Development, Inc. on form 10QSB for the month periods ended
December 31, 1995 and 1994. See attachment 7(a)2.
(b) Proforma Financial Information
-Unaudited Pro Forma Condensed Consolidated Balance Sheet as of
December 31, 1995. See attachment 7(b)1.
-Unaudited Pro Forma Condensed Consolidated Statement of
Operations for the twelve months ended June 30, 1995 and September
30, 1995. See attachment 7(b)2.
-Unaudited Pro Forma Condensed Consolidated Statement of
Operations for the six months ended December 31, 1995. See
attachment 7(b)3.
-Notes to Unaudited Pro Forma Condensed Consolidated Financial
Statements. See attachment 7(b)4.
(c) Exhibits
Exhibit Number Description
-------------- -----------
2.1 Asset Purchase Agreement dated September 12, 1995
between Gish Biomedical, Inc. and Creative
Medical Development Inc.*
10.1 Employment Agreement between Gish Biomedical,
Inc. and Glen Imbro.*
10.2 Employment Agreement between Gish Biomedical,
Inc. and Ron Gangemi.*
10.3 Employment Agreement between Gish Biomedical,
Inc. and Chuck Grey.*
10.4 Employment Agreement between Gish Biomedical,
Inc. and John Hart.*
2
<PAGE> 3
(c) Exhibits (continued)
Exhibit Number Description
-------------- -----------
27 Financial Data Schedules*
99 Press Release issued by registrant on April 23, 1996.*
- ------------
* Previously Filed.
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.
Gish Biomedical, Inc.
-------------------------------------
(Registrant)
By JEANNE M. MILLER
-------------------------------
Jeanne M. Miller
Vice President/CFO
Date June 28, 1996
-------------------------------
3
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UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
GISH CMD
DECEMBER 31, DECEMBER 31, OPERATIONS NOT PRO FORMA PRO FORMA
1995 1995 ACQUIRED (C) ADJUSTMENTS CONSOLIDATED
------------ ------------ -------------- ----------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Current Assets:
Cash and cash equivalents $ 1,292,700 $ -- $ -- $ -- $ 1,292,700
Short-term investments 3,190,000 -- -- -- 3,190,000
Accounts receivable, net 3,844,300 232,907 (232,907) -- 3,844,300
Inventories 6,440,600 -- -- 301,000 (A) 6,741,600
Net assets of discontinued operations -- 774,910 -- (774,910)(A) --
Net assets held for sale -- 1,215,579 (1,215,579) -- --
Deferred income tax assets 625,000 -- -- -- 625,000
Prepaid expense 823,400 -- -- -- 823,400
----------- ---------- ----------- ---------- -----------
Total current assets 16,216,000 2,223,396 (1,448,486) (473,910) 16,517,000
Net property and equipment 3,968,000 -- -- 473,910 (A) 4,441,910
Note receivable 600,000 -- -- (600,000)(B) --
Other assets 74,300 -- -- -- 74,300
Excess of purchase price over -- -- -- -- --
fair value of net assets acquired -- -- -- 1,885,090 (A) 1,885,090
----------- ---------- ----------- ---------- -----------
Total assets $20,858,300 $2,223,396 $(1,448,486) $1,285,090 $22,918,300
=========== ========== =========== ========== ===========
LIABILITIES AND SHAREHOLDER EQUITY
Current liabilities:
Bank overdraft $ -- $ 57,175 $ (57,175) $ -- $ --
Notes payable due within one year -- 787,406 (187,406) (600,000)(B) --
Accounts payable 1,048,600 223,846 (223,846) 60,000 (A) 1,108,600
Accrued liabilities 893,300 35,295 (35,295) -- 893,300
----------- ---------- ----------- ---------- -----------
Total current liabilities 1,941,900 1,103,722 (503,722) (540,000) 2,001,900
Deferred rent 255,600 -- -- -- 255,600
Deferred income taxes 4,500 -- -- -- 4,500
Notes payable due after one year -- 1,234,995 (1,234,995) -- --
Shareholders' equity
Preferred stock -- 8,100 (8,100) -- --
Common stock 7,789,700 20,461 (20,461) 2,000,000 (A) 9,789,700
Retained Earnings 10,866,600 (143,882) 318,792 (174,910)(A) 10,866,600
----------- ---------- ----------- ---------- -----------
Total shareholders' equity 18,656,300 (115,321) 290,231 1,825,090 20,656,300
----------- ---------- ----------- ---------- -----------
Total liabilities and shareholders'
equity $20,858,300 $2,223,396 $(1,448,486) $1,285,090 $22,918,300
=========== ========== =========== ========== ===========
</TABLE>
7(b)1
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UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
GISH CMD
----------- ------------
FISCAL YEAR ENDED
-----------------------------
JUNE 30 SEPTEMBER 30 OPERATIONS NOT PRO FORMA PRO FORMA
1995 1995 ACQUIRED (D) ADJUSTMENTS CONSOLIDATED
----------- ------------ -------------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Net sales $21,587,600 $ 806,637 $ -- $ -- $22,394,237
Cost of Sales 13,659,300 453,702 -- -- 14,113,002
----------- ----------- ----------- ----------- -----------
Gross profit 7,928,300 352,935 -- -- 8,281,235
Operating expenses
Selling and marketing 2,575,200 492,137 -- -- 3,067,337
Research and development 1,124,700 413,559 -- (65,000)(F) 1,473,259
General and administrative 1,745,100 838,350 -- (100,000)(F) 2,483,450
Amortization of excess purchase price -- -- -- 188,500 (E) 188,500
Rental activities, net -- 90,485 (90,485) -- --
Loss from discontinued operations, net -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total operating expenses 5,445,000 1,834,531 (90,485) 23,500 7,212,546
----------- ----------- ----------- ----------- -----------
Operating income 2,483,300 (1,481,596) 90,485 (23,500) 1,068,689
Interest income, (expense) 274,100 (7,409) 7,409 (36,000)(G) 238,100
----------- ----------- ----------- ----------- -----------
Income before provision for taxes 2,757,400 (1,489,005) 97,894 (59,500) 1,306,789
Provision for taxes 1,075,000 -- -- (87,500)(H) 987,500
----------- ----------- ----------- ----------- -----------
Net income, (loss) $ 1,682,400 $(1,489,005) $ 97,894 $ 28,000 $ 319,289
=========== =========== =========== =========== ===========
Net income (loss) per share:
Net income (loss) per share (I) $ 0.52 $ 0.09
=========== ===========
Weighted average shares outstanding 3,217,800 3,458,040
=========== ===========
</TABLE>
7(b)2
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UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
GISH CMD
------------ ------------
SIX MONTHS ENDED
-----------------------------
DECEMBER 31, DECEMBER 31, OPERATIONS NOT PRO FORMA PRO FORMA
1995 1995 ACQUIRED (D) ADJUSTMENTS CONSOLIDATED
------------ ------------ -------------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Net sales $11,051,800 $ 270,208 $ -- $ -- $11,322,008
Cost of Sales 7,198,600 135,690 -- -- 7,334,290
----------- ---------- ----------- ----------- -----------
Gross profit 3,853,200 134,518 -- -- 3,987,718
Operating expenses
Selling and marketing 1,675,800 102,000 -- -- 1,777,800
Research and development 697,200 87,219 -- (32,500)(F) 751,919
General and administrative 864,000 181,896 -- (50,000)(F) 995,896
Distributor contract termination fee 702,000 -- -- -- 702,000
Amortization of excess purchase price -- -- -- 94,250 (E) 94,250
Rental activities, net -- 4,734 (4,734) -- --
Loss from discontinued operations, net -- 31,017 -- -- 31,017
----------- ---------- ----------- ----------- -----------
Total operating expenses 3,939,000 406,866 (4,734) 11,750 4,352,882
----------- ---------- ----------- ----------- -----------
Operating income (85,800) (272,348) 4,734 (11,750) (365,164)
Interest income, (expense) 108,200 (4,996) 4,996 (9,000)(G) 99,200
----------- ---------- ----------- ----------- -----------
Income before provision for taxes 22,400 (277,344) 9,730 (20,750) (265,964)
Provision for taxes 8,700 -- -- (40,200)(H) (31,500)
----------- ---------- ----------- ----------- -----------
Net income, (loss) $ 13,700 $ (277,344) $ 9,730 $ 19,450 $ (234,464)
=========== ========== =========== =========== ===========
Net income (loss) per share:
Net income (loss) per share (I) $ 0.00 $ (0.07)
=========== ===========
Weighted average shares outstanding 3,368,169 3,360,517
=========== ===========
</TABLE>
7(b)3
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NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(A) To reflect consideration paid and the purchase price allocation in
connection with the Company's acquisition from Creative Medical
Development (CMD) of its ambulatory infusion pump operations and related
technology. The purchase price was $2,600,000 comprised of $600,000 in
cash and 240,240 shares of Gish Biomedical, Inc. common stock valued at
$2,000,000. Acquisition costs are expected to be approximately $60,000.
The estimated purchase price allocation is as follows:
Estimated purchase price in excess of net assets acquired:
<TABLE>
<S> <C>
Purchase price, including acquisition costs $2,660,000
Less estimated fair market value of recorded net assets of CMD 774,910
----------
Excess of purchase price over fair value of net assets acquired $1,885,090
==========
</TABLE>
The purchase price allocation is based on preliminary estimates of the
fair value of the net assets acquired and is subject to adjustment as
additional information becomes available during fiscal 1997.
(B) Elimination of intercompany note receivable from CMD.
(C) To eliminate assets, liabilities and equity of CMD that were not
purchased or assumed by the Company, in addition to reclassification of
certain other assets for consistent presentation.
(D) To eliminate operating results of certain CMD operations which were not
acquired by the Company.
(E) Amortization expenses for excess of purchase price over fair value of net
assets acquired and for acquired patents, trademarks and technology over
10 years on a straight-line basis.
(F) Estimated reduction in payroll expense for job positions eliminated as a
result of the acquisition.
(G) Reduction of interest income on the $600,000 cash payment made as part of
the $2,600,000 purchase price.
(H) The pro forma tax provision reflects the estimated income tax benefits
from the pro forma adjustments determined using the effective tax rates
for each combining company applied to the respective pro forma
adjustments for each combining company.
(I) Pro forma earnings per share is determined based on the weighted average
number of common and dilutive common equivalent Gish Biomedical, Inc.
shares outstanding in each period plus 240,240 additional shares of
common stock.
7(b)4
