<PAGE>
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)
February 8, 1996
CAMBRIDGE HOLDINGS, LTD.
- -----------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Colorado
- -----------------------------------------------------------------------------
(State or other jurisdiction of incorporation)
0-12962 84-0826695
- ------------------------- -----------------------------------
(Commission File Number) (IRS Employer Identification Number)
8100 W. Crestline Ave., Suite A-15 #300, Littleton, CO 80123-1200
- -----------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (303) 933-1043
---------------
<PAGE>
CAMBRIDGE HOLDINGS, LTD.
INFORMATION TO BE INCLUDED IN THE REPORT
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(b) PRO FORMA FINANCIAL INFORMATION
(1) Pro forma financial information as required pursuant to
Article II of Regulation S-X is attached.
(c) EXHIBITS.
Commercial Contract to Buy and Sell Real Estate between
the Registrant and Columbine West LLC, accepted June 15,
1995, as amended on August 11, 1995, August 15, 1995,
September 8, 1995, and September 25, 1995, was included
as Exhibit 10(k) to the Registrant's Report on Form
10-KSB for the fiscal year ended June 30, 1995, and is
incorporated herein by this reference.
2
<PAGE>
UNAUDITED PROFORMA FINANCIAL INFORMATION
The following unaudited proforma balance sheet of Cambridge Holdings, Ltd. as of
December 31, 1995 and the unaudited proforma statements of income for the year
ended June 30, 1995 and the six months ended December 31, 1995, have been
prepared to reflect the effects of a sale of the building and related assets of
Cambridge Holdings, Ltd which was closed February 8, 1996.
The unaudited proforma balance sheet has been prepared as if the transactions
occurred on December 31, 1995. The proforma statements of income have been
prepared as if the transaction occurred as of July 1, 1994. The proforma
information following, is unaudited and not necessarily indicative of the
results that would actually have occurred if the transactions had been
consummated as of the dates indicated, or the results which may be obtained in
the future.
The proforma adjustments, as described in the notes to the unaudited proforma
balance sheet and unaudited proforma statements of income, are based on
available information and upon certain assumptions that management believes are
reasonable. The unaudited proforma financial information should be read in
conjunction with the Cambridge Holdings, Ltd. historical financial statements,
including the related notes thereto.
F-1
<PAGE>
CAMBRIDGE HOLDINGS, LTD.
PROFORMA BALANCE SHEET
DECEMBER 31, 1995
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADJUSTMENTS
--------------------------
HISTORICAL DEBIT CREDIT PROFORMA
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
CURRENT:
Cash $1,108,461 $1,651,316(2) $ - $2,759,777
Investment securities 1,465,391 - - 1,465,391
Prepaids and other 24,861 - - 24,861
- ------------------------------------------------------------------------------------------
Total current assets 2,598,713 1,651,316 - 4,250,029
- ------------------------------------------------------------------------------------------
Land, building and improvements 1,415,796 - 1,415,796(1) -
Less accumulated depreciation 233,721 233,721(1) - -
- ------------------------------------------------------------------------------------------
Net land, building and improvements 1,182,075 233,721 1,415,796 -
- ------------------------------------------------------------------------------------------
OTHER ASSETS:
Lease commissions, net 46,082 - 46,082(1) -
Deferred rent 32,137 - 32,137(1) -
Income receivable 119,956 - - 119,956
Loan acquisition costs 18,571 - 18,571(1) -
Restricted securities 178,513 - - 178,513
- ------------------------------------------------------------------------------------------
Total other assets 395,259 - 96,790 298,469
- ------------------------------------------------------------------------------------------
$4,176,047 $1,417,595 $1,512,586 $4,548,498
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT:
Accounts payable $ 32,361 $ - $ - $ 32,361
Accrued income taxes - - 200,000(1) 200,000
Accrued property taxes and other 36,297 34,031(1) 35,000(3) 37,266
Security deposits 22,985 22,985(1) - -
Current maturities - long-term debt 19,904 19,904(2) - -
- ------------------------------------------------------------------------------------------
Total current liabilities 111,547 76,920 235,000 269,627
DEFERRED INCOME TAXES - - 360,000(1) 360,000
LONG-TERM DEBT, less current
maturities 792,628 792,628(2) - -
- ------------------------------------------------------------------------------------------
Total liabilities 904,175 869,548 595,000 629,627
- ------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY:
Common stock - $0.25 par value,
15,000,000 shares authorized;
3,107,940 issued and outstanding 77,684 - - 77,684
Additional paid-in capital 3,085,522 - - 3,085,522
Retained earnings (deficit) (854,342) 235,000(1)(3) 1,241,999(1) 152,657
Net unrealized gain on securities
available for sale 963,008 360,000(1) - 603,008
- ------------------------------------------------------------------------------------------
Total stockholders' equity 3,271,872 595,000 1,241,999 3,918,871
- ------------------------------------------------------------------------------------------
$4,176,047 $1,464,548 $1,836,999 $4,548,498
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
</TABLE>
F-2
<PAGE>
CAMBRIDGE HOLDINGS, LTD.
PROFORMA STATEMENTS OF INCOME
SIX MONTHS ENDED DECEMBER 31, 1995
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADJUSTMENTS
-------------------------
HISTORICAL DEBIT CREDIT PROFORMA
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REVENUE:
Rental income $ 312,265 $312,265(3) $ - $ -
Gain on sale of subdivided land 434,920 - - 434,920
Option extension fee 75,000 75,000(1) - -
Gain on sales of marketable
equity securities 43,937 - - 43,937
Interest and dividend income 25,359 - - 25,359
- ------------------------------------------------------------------------------------------
Total revenues 891,481 387,265 - 504,216
- ------------------------------------------------------------------------------------------
EXPENSES:
Operating, general and
administrative 291,034 - 222,992(3) 68,042
Interest 35,776 - 35,776(3) -
- ------------------------------------------------------------------------------------------
Total expenses 326,810 - 258,768 68,042
- ------------------------------------------------------------------------------------------
Income before taxes on income 564,671 387,265 258,768 436,174
Taxes on income - 159,000(4) - 159,000
- ------------------------------------------------------------------------------------------
NET INCOME $ 564,671 $546,265 $258,768 $ 277,174
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
NET INCOME PER COMMON AND
COMMON EQUIVALENT SHARE $ .17 $ .08
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
WEIGHTED AVERAGE NUMBER OF COMMON
AND COMMON EQUIVALENT SHARES
OUTSTANDING 3,286,140 3,286,140
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
</TABLE>
F-3
<PAGE>
CAMBRIDGE HOLDINGS, LTD.
PROFORMA STATEMENTS OF INCOME
YEAR ENDED JUNE 30, 1995
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADJUSTMENTS
-------------------------
HISTORICAL DEBIT CREDIT PROFORMA
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REVENUE:
Rental income $583,968 $583,968(3) $ - $ -
Gain on sales of marketable
equity securities 143,245 - - 143,245
Interest and dividend income 36,329 - - 36,329
- ------------------------------------------------------------------------------------------
Total revenues 763,542 583,968 - 179,574
- ------------------------------------------------------------------------------------------
EXPENSES:
Operating, general and
administrative 458,329 50,000(3) 352,460(3) 155,869
Interest 72,745 - 72,745(3) -
- ------------------------------------------------------------------------------------------
Total expenses 531,074 50,000 425,205 155,869
- ------------------------------------------------------------------------------------------
Income before taxes on income 232,468 633,968 425,205 23,705
- ------------------------------------------------------------------------------------------
Taxes on income - 5,000(4) - 5,000
- ------------------------------------------------------------------------------------------
NET INCOME $232,468 $638,968 $425,205 $ 18,705
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
NET INCOME PER COMMON AND
COMMON EQUIVALENT SHARE $ .07 $ .01
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
WEIGHTED AVERAGE NUMBER OF COMMON
AND COMMON EQUIVALENT SHARES
OUTSTANDING 3,109,116 3,109,116
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
</TABLE>
F-4
<PAGE>
CAMBRIDGE HOLDINGS, LTD.
NOTES TO PROFORMA FINANCIAL STATEMENTS
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
NOTES:
DECEMBER 31, 1995 PROFORMA BALANCE SHEET ADJUSTMENTS:
1. Represents the terms of the sale of the building and related
assets and the adjustment of related assets and liabilities as
of December 31, 1995 computed as:
<TABLE>
<S> <C>
Sale amount $ 2,725,000
Closing costs and related expenses (192,620)
- -------------------------------------------------------------------
Net proceeds 2,532,380
Basis in land, building and improvements (1,182,075)
Other net assets, including lease commissions and
deferred rent (108,306)
- -------------------------------------------------------------------
Gain on sale (before income taxes) $ 1,241,999
- -------------------------------------------------------------------
- -------------------------------------------------------------------
</TABLE>
NOTE: On the basis of an assumed sale of the building and related assets
as of December 31, 1995 and considering the actual results of operations
through December 31, 1995, the entire net operating loss carryforward
would be utilized. Therefore an accrued income tax provision of $200,000
is provided on the taxable income arising from the gain combined with
the actual results of operations in excess of the net operating loss
carryforward. Additionally, a deferred income tax liability of $360,000
is provided relating to the unrealized gain on securities held for sale.
The deferred income tax provision on the unrealized gain had previously
been offset by the then available net operating loss carryforward.
2. Represents the application of net proceeds as follows:
<TABLE>
<S> <C>
Net proceeds $2,532,380
Payoff of mortgage note and related settlement
amounts (881,064)
- -------------------------------------------------------------------
NET CASH $1,651,316
- -------------------------------------------------------------------
- -------------------------------------------------------------------
</TABLE>
PROFORMA STATEMENTS OF INCOME ADJUSTMENTS:
3. Represents the elimination of rental income and rental related
operating expenses and interest expense as of July 1, 1994.
Also reflects bonus expense payable to officer upon completion
of sale.
4. On the basis of an assumed sale as of July 1, 1994,
substantially all of the net operating loss would have been
utilized and therefore a current income tax provision is
computed on the proforma income before taxes.
5. The accompanying proforma statements of income have been
prepared as if the transactions occurred as of July 1, 1994,
but do not give effect to either the $1,241,999 net gain on
the sale of the building and related assets nor any earnings
which might have been earned on the net cash proceeds from the
sale and accordingly are not necessarily indicative of the
results that would actually have occurred if the transactions
had been consummated as of July 1. 1994.
F-5
<PAGE>
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.
CAMBRIDGE HOLDINGS, LTD.
Dated: March 4, 1996 By: /s/ Gregory Pusey
-----------------------------------
Gregory Pusey, President
