<PAGE>
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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A
(Amendment No. 1)
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the fiscal year ended September 30, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ___________ to ___________
Commission file number: 1-9083
POLYPHASE CORPORATION
(Exact name of registrant as specified in its charter)
Nevada 23-2708876
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4800 Broadway, Suite A
Addison, Texas 75001
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (972) 386-0101
Securities Registered Pursuant to Section 12(b) of the Act:
Name of each exchange on
Title of each class which registered
------------------- ------------------------------
Common Stock, $.01 par value per share American Stock Exchange
Securities Registered Pursuant to Section 12(g) of the Act:
None
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Exchange Act during the past
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days. Yes X No
----- ----
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ ]
The aggregate market value of voting stock held by non-affiliates of the
registrant, based on the closing price of such stock on December 3, 1999, was
approximately $6.7 million. For purposes of this computation, all executive
officers, directors and 10% beneficial owners of the registrant are deemed to be
affiliates. Such determination should not be deemed an admission that such
executive officers, directors and 10% beneficial owners are affiliates. As of
December 3, 1999, the registrant had issued and outstanding 17,812,464 shares of
common stock, $.01 par value.
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POLYPHASE CORPORATION AND SUBSIDIARIES
SCHEDULE I
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Summary Balance Sheets
<TABLE>
<CAPTION>
September 30,
----------------------------------------
1999 1998
----------------- -----------------
<S> <C> <C>
Cash $ 51,471 $ 5,874
Receivable from sale of subsidiary 780,000 -
Prepaid expenses and other 9,000 20,000
----------------- -----------------
Total current assets 840,471 25,874
Property and equipment 50,191 48,902
Less-Accumulated depreciation (44,981) (36,981)
----------------- -----------------
5,210 11,921
Non current receivables:
Related parties, net of allowance for
doubtful accounts of $164,563 and $164,563 - 9,000
Deferred federal income taxes 572,280 767,789
Income tax receivable 5,959,121 5,202,507
Investment in discontinued operations - 2,962,508
Other assets (primarily investments
in subsidiaries) 17,474,634 16,396,582
----------------- -----------------
Total assets $ 24,851,716 $ 25,376,181
================= =================
Accounts payable $ 140,359 $ 139,948
Accrued expenses 981,840 793,013
Deferred income taxes 364,669 335,117
Current maturities of long-term debt - 1,200,000
----------------- -----------------
Total current liabilities 1,486,868 2,468,078
Note payable and accrued interest,
related party 17,914,842 16,307,405
----------------- -----------------
Total liabilities 19,401,710 18,775,483
----------------- -----------------
Stockholders' equity:
Preferred stock 564 1,150
Common stock 178,125 150,800
Additional paid in capital 28,159,887 28,623,811
Accumulated deficit (22,888,570) (21,199,744)
Note receivable - (975,319)
----------------- -----------------
Total stockholders' equity 5,450,006 6,600,698
----------------- -----------------
$ 24,851,716 $ 25,376,181
================= =================
</TABLE>
See note to condensed financial information of registrant.
F-44
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POLYPHASE CORPORATION AND SUBSIDIARIES
SCHEDULE I
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Summary Statements of Income
<TABLE>
<CAPTION>
For the Years Ended
September 30,
-----------------------------------------
1999 1998
----------------- ------------------
<S> <C> <C>
Net revenues $ - $ -
Cost of sales - -
----------------- ------------------
Gross Profit - -
Selling general and administrative expenses 380,798 1,420,191
----------------- ------------------
Operating income (loss) (380,798) (1,420,191)
Other income (expense)
Gain on disposition of subsidiary - 987,857
Recoveries on related party receivable 656,250 -
Interest expense (2,776,376) (2,886,448)
----------------- ------------------
Total other expense (2,120,126) (1,898,591)
----------------- ------------------
Loss before income taxes, equity in net income of
subsidiaries and discontinued operations (2,500,924) (3,318,782)
Income taxes (benefit) (941,008) (1,034,177)
----------------- ------------------
Loss before equity in net income of subsidiaries and
discontinued operations (1,559,916) (2,284,605)
Equity in net income of subsidiaries 1,144,797 1,945,759
----------------- ------------------
Loss before discontinued operations (415,119) (338,846)
Discontinued operations (1,182,508) 9,955
----------------- ------------------
Net loss (1,597,627) (328,891)
Dividends on preferred stock 91,199 154,250
----------------- ------------------
Net loss attributable to common shareholders $(1,688,826) $ (483,141)
================= ==================
</TABLE>
See note to condensed financial information of registrant.
F-45
<PAGE>
POLYPHASE CORPORATION AND SUBSIDIARIES
SCHEDULE I
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Summary Statements of Cash Flows
<TABLE>
<CAPTION>
For the Years Ended
September 30,
----------------------------------------
1999 1998
----------------- -----------------
<S> <C> <C>
Cash flow provided by (used in) operating activities:
Net loss $(1,597,627) $ (328,891)
Adjustments to reconcile net loss
to net cash used in operating activities:
Depreciation and amortization 1,009,919 370,896
Equity in income of subsidiaries (1,144,797) (1,945,745)
Provision for doubtful accounts - 164,563
Gain on sale of assets - (987,857)
Deferred income tax 225,061 2,707
Recoveries on related party receivable (656,250) -
Loss (income) from discontinued operations 1,182,508 (9,955)
Increase (decrease) in, net of effects of acquisitions:
Receivables from sale of subsidiary (780,000) -
Prepaid expenses and other (735,813) 352,106
Accounts payable and other 411 (355,032)
Accrued expenses and other 456,974 (243,404)
----------------- -----------------
Net cash used in operating activities (2,039,614) (2,980,612)
----------------- -----------------
Cash flows provided by (used in) investing activities:
Notes receivable from related parties 9,000 8,963
Proceeds from sale of subsidiary 1,780,000 -
Capital expenditures (1,289) (5,870)
----------------- -----------------
Net cash provided by investing activities 1,787,711 3,093
----------------- -----------------
Cash flows provided by (used in) financing activities:
Net borrowings on notes payables 1,607,437 2,308,489
Advances from (payments to) subsidiary (47,174) 5,300,000
Payments on long term borrowings (1,200,000) (4,300,000)
Payment of deferred financing costs - (163,787)
Exercise of common stock options and warrants 28,436 2,100
Dividends on preferred stock (91,199) (154,250)
Common stock issuance costs - (17,500)
----------------- -----------------
Net cash provided by financing activities $ 297,500 $ 2,975,052
----------------- -----------------
</TABLE>
See note to condensed financial information of registrant.
F-46
<PAGE>
POLYPHASE CORPORATION AND SUBSIDIARIES
SCHEDULE I
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Summary Statements of Cash Flows
<TABLE>
<S> <C> <C>
Net increase (decrease) in cash $45,597 $(2,467)
Cash - beginning of year 5,874 8,341
----------------- -----------------
Cash - end of year $51,471 $ 5,874
================= =================
</TABLE>
Note A - Basis of Presentation
In the parent company only financial statements, the Company's investment in
subsidiaries is stated at cost plus equity in undistributed earnings of
subsidiaries since the date of acquisition. The Company's share of net income of
its unconsolidated subsidiaries is included in consolidated income using the
equity method. The parent company only financial statements should be read in
conjunction with the Company's consolidated financial statements.
See note to condensed financial information of registrant.
F-47
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SIGNATURES
In accordance with Section 13 or 15(d) of the Securities Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
POLYPHASE CORPORATION
By: /s/ James Rudis September 13, 2000
---------------
James Rudis
Chairman, President and
Chief Executive Officer
By: /s/ William E. Shatley September 13, 2000
-----------------------
William E. Shatley
Senior Vice President, and
Chief Financial Officer
