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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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): May 9, 1996
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NAI Technologies, Inc.
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(Exact name of registrant as specified in its charter)
0-3704
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(Commission File Number)
New York 11-1798773
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(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification Number)
2405 Trade Centre Avenue
Longmont, Colorado 80503
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(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code (303) 776-5674
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(Former name or former address, if changed since last report)
Page 1 of 7 Pages
Exhibit Index on Page 4
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Item 5. Other Events
On May 9, 1996, NAI Technologies, Inc., a New York corporation
(the "Company"), entered into an agreement with Charles S. Holmes, a member of
the Company's Board of Directors ("Mr. Holmes"), that in consideration of his
converting the 12% Convertible Subordinated Promissory Note due 2001 of the
Company in the aggregate unpaid principal amount of $2,000,000 held by him (the
"Note") into 1,000,000 shares of common stock, par value $.10 per share (the
"Common Stock"), of the Company as provided in Section 6 of the Note (the
"Conversion") which enabled the Company to achieve recompliance with the Net
Tangible Asset Requirement of The Nasdaq Stock Market, the Company would
immediately grant him warrants to purchase 300,000 shares of Common Stock at any
time and from time to time on or before February 15, 2002 at an exercise price
of $3.00 per share, subject to adjustment in certain events (the "Additional
Warrants"). Mr. Holmes had previously received warrants to purchase 1,700,000
shares of Common Stock before February 15, 2002 at an exercise price of $2.50
per share (subject to adjustment in certain events) from the Company in
connection with the Company's private placement of Notes and warrants in the
first quarter of 1996.
The foregoing description of the Conversion of the Note and
the issuance of the Additional Warrants is a summary of certain of the
provisions contained in a Letter Agreement with respect thereto and reference is
made to a copy of such agreement which is attached hereto as Exhibit 1 and is
incorporated herein by reference for all of its terms and conditions.
The Company has prepared and is filing herewith Pro Forma
Consolidated Balance Sheets as of April 27, 1996 showing the balance sheet
effect of the Conversion of the Note and the issuance of the Additional Warrants
and reference is made to a copy of such Pro Forma Consolidated Balance Sheets
which is attached hereto as Exhibit 2 and is incorporated herein by reference.
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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 hereunto duly authorized.
NAI TECHNOLOGIES, INC.
By:/s/ Richard A. Schneider
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Name: Richard A. Schneider
Title: Executive Vice President
and Chief Financial Officer
Date: May 20, 1996
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EXHIBIT INDEX
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<CAPTION>
Exhibit No. Description
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<S> <C>
1. Letter Agreement, dated May 9, 1996, between Charles S. Holmes and
the Company.
2. Pro Forma Consolidated Balance Sheets as of April 27, 1996 of NAI
Technologies, Inc. and Subsidiaries.
</TABLE>
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Exhibit 1
NAI TECHNOLOGIES, INC.
2405 Trade Centre Avenue
Longmont, Colorado 80503
May 9, 1996
Mr. Charles S. Holmes
P.O. Box 2850
Southampton, New York 11969
Re: NAI Technologies, Inc. 12%
Convertible Subordinated
Promissory Notes
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Dear Charlie:
Reference is made to the 12% Convertible Subordinated
Promissory Note due 2001 of NAI Technologies, Inc. (the "Company") in the
aggregate unpaid principal amount of $2,000,000 (the "Note") held by you. In
consideration of your converting such Note into 1,000,000 shares (the
"Conversion Shares") of common stock, par value $.10 per share (the "Common
Stock"), of the Company as provided in Section 6 of the Note which will enable
the Company to achieve recompliance with the Net Tangible Asset Requirement of
The Nasdaq Stock Market ("Nasdaq"), the Company agrees to immediately grant you
warrants to purchase 300,000 shares of Common Stock at any time and from time to
time on or before February 15, 2002 at an exercise price of $3.00 per share,
subject to adjustment in certain events. Such warrants will not contain the
EBITDA adjustment to the exercise price but will otherwise be similar to the
warrants purchased by you with your Note and will be delivered to you as soon as
practicable.
If the foregoing is acceptable to you, please so indicate by
signing your name in the space provided below.
Very truly yours,
NAI TECHNOLOGIES, INC.
By: /s/ Robert A. Carlson
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Robert A. Carlson
Chairman and Chief
Executive Officer
Accepted and agreed as of
the date first above written:
/s/ Charles S. Holmes
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Charles S. Holmes
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Exhibit 2
NAI TECHNOLOGIES, INC. AND SUBSIDIARIES
Pro Forma Consolidated Balance Sheets
As of April 27, 1996
(in thousands)
<TABLE>
<CAPTION>
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As Pro
Reported Adjustments Forma
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<S> <C> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents 1,552 1,552
Accounts receivable, net 11,510 11,510
Inventories, net 14,133 14,133
Deferred tax asset 384 384
Other current assets 644 644
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Total current assets 28,223 0 28,223
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Property, plant and equipment, net 5,124 5,124
Excess of cost over fair value of assets acquired,
net 10,128 10,128
Notes receivable -- --
Other assets 3,044 150 3,194
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Total assets 46,519 150 46,669
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LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities:
Accounts payable 8,048 8,048
Current installments of long-term debt 2,671 2,671
Accrued payroll and commissions 419 419
Other accrued expenses 3,891 3,891
Income taxes payable 420 420
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Total current liabilities 15,449 0 15,449
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Long-term debt 17,573 (1,750) 15,823
Other accrued expenses 2,506 2,506
Deferred income taxes 384 384
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Total liabilities 35,912 (1,750) 34,162
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</TABLE>
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<TABLE>
<CAPTION>
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As Pro
Reported Adjustments Forma
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<S> <C> <C> <C>
Shareholders' Equity:
Capital Stock:
Preferred stock, no par value, 2,000,000
shares authorized and unissued -- --
Common stock, $.10 par value, 25,000,000
shares authorized; shares issued: 7,459,437 746 100 846
Capital in excess of par value 17,305 1,800 19,105
Foreign currency translation adjustment (14) (14)
Retained earnings (7,430) (7,430)
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Total shareholders' equity 10,607 1,900 12,507
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Total liabilities and shareholders' equity 46,519 150 46,669
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</TABLE>
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