<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A-1
AMENDMENT 1
TO
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 20, 1999
GLOBAL CASINOS, INC.
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(Exact name of registrant as specified in its charter)
Utah 0-15415 87-0340206
- ------------- ---------------- --------------------
(State or other juris- (Commission file number) (IRS Employer
diction of incorporation Identification No.)
or organization)
5373 North Union Boulevard, Suite 100, Colorado Springs, Colorado 80918
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (719) 590-4900
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(Former name or former address, if changed since last report)
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ITEM 7: FINANCIAL STATEMENTS AND EXHIBITS
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(1) Financial Statements
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(a) On December 30, 1999, Global Casinos, Inc (Global) sold all of
the issued and outstanding shares of capital stock of its wholly-owned
subsidiary, Global Pelican, N.V., a St. Maarten Limited Liability Company, to
Arufinance, N.V., an Aruba Corporation, (Arufinance) pursuant to a Stock
Purchase Agreement dated as of December 30, 1999 (the Agreement) among Global
and Arufinance.
(b) Arufinance acquired all of the capital stock issued and
outstanding of Global Pelican, N.V. from Global for a negotiated purchase
price of $1,000. In addition to the stock sale, Global retained accounts
receivables in the form of outstanding and uncollected markers totaling
$69,200, transferred by Global Pelican to Global, and the related allowance
for doubtful accounts of $69,200.
Global also agreed to assume and pay an outstanding accounts
payable account to vendor, Aristocrat, in the amount of $41,888 for certain
gaming devices located in the Global Pelican casino. This account payable was
to be paid by the 30th of January, 2000.
(c) Arufinance acquired all of the remaining assets and liabilities
of Global Pelican, N.V. as part of the stock purchase, effective with the
closing date of December 30, 1999.
The accompanying consolidated financial statements illustrate the
effect of the disposition of the subsidiary ("Pro Forma") on the Company's
financial position and results of operations. The consolidated balance sheet
as of December 31, 1999 is based upon the historical balance sheets of the
Company and assumes that the disposition took place on December 30, 1999. The
consolidated statements of income for the six months ended December 31, 1999
are based on the historical statements of income of the Company for this
period. The pro forma consolidated statements of income assume the
disposition took place on July 1, 1999.
The accompanying consolidated pro forma financial statements should
be read in connection with the historical financial statements of Global
Casinos, Inc.
(b) Exhibits
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Item Title
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1. Pro forma financial information
(a) Global Casinos, Inc Consolidated Balance Sheet as of
December 31, 1999
(b) Global Casinos, Inc. Consolidated Statement of Income For
the Six Months Ended December 31, 1999
(c) Notes to Pro Forma Consolidated Financial Statements
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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.
GLOBAL CASINOS, INC.
Date: February 17, 2000 By: /s/ Stephen G. Calandrella
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Stephen G. Calandrella, President
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GLOBAL CASINOS, INC.
CONSOLIDATED PRO FORMA BALANCE SHEET
December 31, 1999
(unaudited)
<TABLE>
<CAPTION>
Consolidated Adjustments As Reported
------------ ------------ ------------
<S> <C> <C> <C>
Assets
------
Current assets:
Cash $ 445,028 $ (139,395) (1) $ 305,633
Accounts receivable
Trade, net of allowance for
doubtful accounts of
$70,000 at December 31,
1999 388,129 (43,216) (1) 344,913
Related parties 3,954 3,954
Inventory 231,866 (2,000) (1) 229,866
Prepaid rent 75,000 (75,000) (1) -
Current portion of notes
receivable 66,812 66,812
Marketable trading securities 782,271 782,271
Asset held for sale 200,000 200,000
Other 113,356 (11,855) (1) 101,501
------------ ------------ ------------
Total current assets 2,306,416 (271,466) 2,034,950
------------ ------------ ------------
Land, buildings and equipment:
Land 517,950 517,950
Buildings 4,081,022 4,081,022
Equipment 2,441,806 (566,275) (1) 1,875,531
------------ ------------ ------------
7,040,778 (566,275) 6,474,503
Accumulated depreciation (2,140,105) 373,542 (1) (1,766,563)
------------ ------------ ------------
4,900,673 (192,733) 4,707,940
------------ ------------ ------------
Other assets:
Leasehold rights and interests
and contract rights, net of
amortization of $980,649 at
December 31, 1999 1,309,288 1,309,288
Goodwill, net of amortization
of $349,026 1,815,479 1,815,479
Hotel credits 507,072 507,072
Notes receivable, net of current
portion, including receivables
in default 174,713 174,713
Other assets, net of amortization
of $0 at December 31, 1999 58,102 58,102
Restricted cash 140,449 (140,449) (1) -
------------ ------------ ------------
4,005,103 (140,449) 3,864,654
------------ ------------ ------------
$ 11,212,192 $ (604,648) 10,607,544
============ ============ ============
Liabilities and Stockholders' Equity
------------------------------------
Current liabilities:
Accounts payable $ 546,391 $ (16,514) (1) $ 529,877
Accrued expenses:
Wages and taxes 525,076 (386,706) (1) 138,370
Casino license fees 1,335,719 (1,335,719) (1) -
Interest, including $13,000
to related parties
at December 31, 1999 356,204 (1,829) (1) 354,375
Other 401,606 401,606
Note payable 230,855 230,855
Current portion of long-term
debt, including debt
in default and $580,433 to
related parties at
December 31, 1999 1,838,347 1,838,347
Other 40,000 40,000
------------ ------------ ------------
Total current liabilities 5,274,198 (1,740,768) 3,533,430
Long-term debt, less current
portion 2,729,888 2,729,888
Commitments and contingencies
Stockholders' equity:
Preferred stock-convertible:
10,000,000 shares authorized
Class A - $2 par value, non-
voting, 96,500 shares
issued and outstanding 193,000 193,000
Class B - $.01 par value,
non-voting, 283,801 shares
issued and outstanding at
Sept 30, 1999 2,708 2,708
Class C - $.01 par value, voting:
487,172 shares issued and
outstanding 4,872 4,872
Common stock - $.05 par value;
50,000 shares authorized;
1,546,360 shares issued and
outstanding 77,318 77,318
Additional paid-in capital 12,661,551 12,661,551
Accumulated deficit (7,459,103) 1,136,120 (1) 8,595,223
------------ ------------ ------------
5,480,346 1,136,120 4,344,226
------------ ------------ ------------
$ 11,212,192 $ (604,648) 10,607,544
============ ============ ============
</TABLE>
See Notes to Pro Forma Consolidated Financial Statements (Unaudited)
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GLOBAL CASINOS, INC.
PRO FORMA CONSOLIDATED STATEMENT OF INCOME
Six Months Ended December 31, 1999
(unaudited)
<TABLE>
<CAPTION>
Consolidated Adjustments ProForma
------------ ------------ ------------
<S> <C> <C> <C>
Revenues:
Casino $ 2,370,477 $ (704,485) (2) $1,665,992
Bingo 1,963,304 1,963,304
Food and beverage 65,653 (13,823) (2) 51,830
Other 49,543 $ (29,819) (2) 19,724
------------ ------------ ------------
4,448,977 (748,127) 3,700,850
------------ ------------ ------------
Expenses:
Cost of sales 1,088,707 (23,273) (2) 1,065,434
Operating, general, and
administrative 3,208,835 (992,139) (2) 2,216,696
Depreciation and amortization 499,449 (80,256) (2) 419,193
------------ ------------ ------------
4,796,991 (1,095,668) 3,701,323
------------ ------------ ------------
Income from operations (348,014) 347,541 (2) (473)
------------ ------------ ------------
Other income (expense):
Interest income 24,404 24,404
Interest expense, including
$6,000 to related parties
at December 31, 1999 (217,706) 8,692 (3) (209,014)
Net realized gain on sale of
marketable trading securities 134,780 134,780
Adjustment to market value of
marketable securities (90,742) (90,742)
Gain on disposition of
subsidiary 1,136,120 1,136,120
------------ ------------ ------------
986,856 8,692 995,548
------------ ------------ ------------
Income (loss) before extra-
ordinary item 638,842 356,233 995,075
Extraordinary item - gain
from restructuring of debt 55,436 55,436
------------ ------------ ------------
Net income (loss) 694,278 356,233 1,050,511
Dividends on Class B and C
Preferred Stock (139,131) (139,131)
------------ ------------ ------------
Net income (loss) available to
common stockholders $ 555,147 $ 356,233 911,380
============ ============ ============
Income (loss) per common
share - basic and diluted:
Income (loss) from continuing
operations $ 0.32 $ 0.55
Extraordinary item 0.04 0.04
------------ ------------
Net income (loss) available
to common stockholders $ 0.36 $ 0.59
============ ============
Weighted average shares
outstanding 1,546,360 1,546,360
============ ============
</TABLE>
See Notes to Pro Forma Consolidated Financial Statements (Unaudited)
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GLOBAL CASINOS, INC. and SUBSIDIARIES
EXPLANATORY NOTES TO PRO FORMA ADJUSTMENTS
DECEMBER 31, 1999
NOTE A - The pro forma adjustments to the consolidated balance sheet are as
follows:
(1) To reflect the sale of Global Pelican N.V. casino subsidiary stock
pursuant to the Stock Purchase Agreement, effective as of December 30,
1999, as a pro forma adjustment as of the September 30, 1999 interim
date. The components of the sale transaction and related adjustments to
assets and liabilities excluded from the sale are as follows:
<TABLE>
<CAPTION>
<S> <C>
Pelican Casino Balance Sheet as of 12/30/99:
Cash $ 138,395
Accounts Receivable, net of allowance for
doubtful accounts of $78,316 43,216
Inventory 2,000
Prepaid Rent 75,000
Furniture and Equipment 566,275
Accumulated Depreciation (373,542)
Other Current Assets 11,855
Restricted Cash 140,449
------------
Total Assets $ 603,648
Accounts payable 16,514
Accrued expenses:
Wages and taxes 386,706
Casino license fees 1,335,719
Interest 1,829
Current Portion of Long-term Debt 41,888
------------
Total Liabilities $ 1,782,656
------------
Excess of Liabilities over Assets 1,179,008
Assets and Liabilities Excluded from the Sale:
Uncollected Markers, net of allowance for
doubtful accounts of $69,200 -
Current portion of Long-term debt retained
by Global Casinos (41,888)
------------
Adjusted Excess of Liabilities over Assets $ 1,137,120
Sale Price of Stock (1,000)
------------
Gain on Disposition of Subsidiary $ 1,136,120
============
</TABLE>
NOTE B - The pro forma adjustments to the consolidated statements of income
are as follows:
(2) To reflect the sale of Pelican Casino subsidiary stock pursuant to the
Stock Purchase Agreement, dated December 30, 1999. The condensed
statement of income for the subsidiary for the six months ended December
31, 1999 are as follows:
<TABLE>
<CAPTION>
Six Months Ended
December 31, 1999
-----------------
<S> <C>
Revenues:
Casino $ 704,485
Food and Beverage 13,823
Other 29,819
------------
748,127
------------
Expenses:
Cost of sales 23,273
Operating, general, and administrative 992,139
Depreciation and amortization 80,256
------------
1,095,668
------------
Income from operations (347,541)
Other income (expense):
Interest expense (6,279)
------------
Net loss available to common stockholders $ (353,820)
============
</TABLE>
(3) To adjust consolidated interest expense for reduction in borrowings
required to fund Pelican operating losses:
<TABLE>
<CAPTION>
<S> <C>
Interest on Long-term debt @ 11.21 % $ 2,413
============
</TABLE>
