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SECURITIES AND EXCHANGE COMMISSION Execution Copy
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) October 11, 1996
POWER DESIGNS INC.
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
New York 0-1921 11-1708714
- --------------------------------------------------------------------------------
(State or other (Commission (I.R.S. Employer
jurisdiction of File No.) Identification Number)
incorporation or organization)
14 Commerce Drive, Danbury, Connecticut 06810
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(203) 748-7001
- --------------------------------------------------------------------------------
(Issuer's Telephone Number, Including Area Code)
250 Executive Drive, Edgewood, New York, 11717
- --------------------------------------------------------------------------------
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last
Report)
1
<PAGE>
Item 2 Acquisition or Disposition of Assets.
Not amended.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) and (b) Attached
2
<PAGE>
(c) Exhibits
Not amended.
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.
Date: March 6, 1997 By: /s/ Jonathan D. Betts
-----------------------------
Chairman
<PAGE>
POWER DESIGNS, INC.
----------
Unaudited Proforma Combined Statement of Operations
For The Year Ended June 30, 1996
----------
<TABLE>
<CAPTION>
Proforma
Combined
Power Designs, Inc. Technipower, Inc. Statement of
June 30, 1996 July 31, 1996 Operations
------------- ------------- ----------
<S> <C> <C> <C>
Net sales $ 575,429 $ 3,664,367 $ 4,239,796
Cost of sales 504,173 3,269,440 3,773,613
--------- ----------- -----------
Gross profit 71,256 394,927 466,183
Selling, general and administrative expense 396,766 2,439,093 2,835,859
--------- ----------- -----------
Net loss before other income (expense) (325,510) (2,044,166) (2,369,676)
--------- ----------- -----------
Other income (expense):
Investment income 1,627 -- 1,627
Interest expense (123,597) (1,816) (125,413)
Abandoned acquisition (126,052) -- (126,052)
--------- ----------- -----------
(248,022) (1,816) (249,838)
--------- ----------- -----------
Net loss $(573,532) $(2,045,982) $(2,619,514)
========= =========== ===========
</TABLE>
The accompanying notes are an integral part of these combined
financial statements
<PAGE>
POWER DESIGNS, INC.
---------
Unaudited Proforma Combined Balance Sheet
September 30, 1996
---------
<TABLE>
<CAPTION>
Technipower,Inc. Proforma
Power Designs, Inc. October 11, 1996 Combined
September 30, 1996 (Date of Acquisition) Balance Sheet
------------------ --------------------- -------------
<S> <C> <C> <C>
ASSETS
Current assets:
Cash $ -- $ 219,000 $ 219,000
Accounts receivable 71,162 582,000 653,162
Inventories 207,297 1,900,000 2,107,297
Prepaid expenses 4,452 -- 4,452
----------- ----------- -----------
Total current assets 282,911 2,701,000 2,983,911
----------- ----------- -----------
Property and equipment, less accumulated
depreciation 4,246 525,000 529,246
----------- ----------- -----------
Other assets:
Acquisition deposit 440,000 (440,000) --
Investment in partnership 21,221 -- 21,221
Security deposits 3,855 -- 3,855
Goodwill -- 1,973,000 1,973,000
Financing fees and organizational costs -- 260,000 260,000
----------- ----------- -----------
465,076 1,793,000 2,258,076
----------- ----------- -----------
$ 752,233 $ 5,019,000 $ 5,771,233
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS'
DEFICIT
Current liabilities:
Seller financing $ -- $ 2,750,000 $ 2,750,000
Cash overdraft 4,153 -- 4,153
Accounts payable and accrued expenses 201,673 493,442 695,115
Current portion of long-term debt 1,619,775 (1,380,346) 239,429
Payables related to reorganization,
including accrued interest 261,531 (120,256) 141,275
----------- ----------- -----------
Total liabilities 2,087,132 1,742,840 3,829,972
----------- ----------- -----------
Long-term debt:
Notes payable - affiliates -- 3,004,306 3,004,306
----------- ----------- -----------
Stockholders' deficit:
Preferred stock -- 264,854 264,854
Common stock 240 -- 240
Additional paid in capital 820,732 7,000 827,732
Deficit (2,155,871) -- (2,155,871)
----------- ----------- -----------
Total stockholders' deficit (1,334,899) 271,854 (1,063,045)
----------- ----------- -----------
$ 752,233 $ 5,019,000 $ 5,771,233
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these combined
financial statements
<PAGE>
POWER DESIGNS, INC.
----------
Unaudited Proforma Combined Statement of Operations
For The Three Months ended September 30, 1996
----------
<TABLE>
<CAPTION>
Proforma
Technipower, Inc. Combined
Power Designs, Inc. August 1 through Statement of
September 30, 1996 October 11, 1996 Operations
------------------ ---------------- ----------
<S> <C> <C> <C>
Net sales $ 90,502 $ 472,904 $ 563,406
Cost of sales 79,642 420,292 499,934
--------- --------- ---------
Gross profit 10,860 52,612 63,472
Selling, general and administrative expense 108,320 631,483 739,803
--------- --------- ---------
Net loss before other income (expense) (97,460) (578,871) (676,331)
--------- --------- ---------
Other income (expense):
Investment income 1,000 26 1,026
Interest expense (33,947) (317) (34,264)
--------- --------- ---------
(32,947) (291) (33,238)
--------- --------- ---------
Net loss $(130,407) $(579,162) $(709,569)
========= ========= =========
</TABLE>
The accompanying notes are an integral part of these combined
financial statements
<PAGE>
POWER DESIGNS, INC.
---------
Notes To The Unaudited Proforma Combined Financial Statements
---------
Note 1 - Basis of Presentation:
The financial information included herein is unaudited; however, such
information reflects all adjustments (consisting solely of normal recurring
adjustments) which are, in the opinion of management, necessary for a fair
statement of results for the periods shown.
The fiscal year end of the acquired company (Technipower, Inc.) is July 31,
1996, and accordingly, the statement operations of this company was combined
with Power Designs, Inc. as of June 30, 1996.
The results of operations for the interim period are not necessarily indicative
of the results to be expected for the full year.
Note 2 - Acquisition:
On October 11, 1996, a wholly owned subsidiary of Power Designs, Inc. (PDIXF
Acquisition Corporation) acquired for approximately $4,430,000, the net assets
of two divisions of Penril Datacomm Networks, Inc. These two divisions,
Technipower Power, Inc. and Constant Power, Inc., are manufacturers of power
supplies, auto transformers, power line conditioners and uninterruptable power
supplies. Additionally, the Company repaid loans, notes payable and obligations
to creditors totaling approximately $1,490,000 that existed as of October 11,
1996. The Company also incurred approximately $260,000 in costs (financing and
organizational) related to the transaction.
Funding for the above transaction (approximately $6,180,000) was provided by the
following:
316,743 shares of preferred stock convertible to
common stock at a conversion rate to be determined
at a future date $ 265,000
Warrants convertible into 416,749 shares of
common stock at 87.5 cents per share 7,000
Subordinate debt from six individuals and
a limited partnership 1,087,000
Note payable to Inverness Corporation
(Due April 1, 1998) 2,290,000
Seller financing (Due 12/31/96) 2,750,000
Total sources 6,399,000
Less: cash deposited into PDIXF Corp.
for working capital (219,000)
----------
$6,180,000
==========
The Company expects to do a secondary stock offering prior to December 31, 1996,
which would provide the funds to repay the seller financing provided by Penril.
Should a secondary offering not occur by this date, bridge financing will need
to be secured. The Company is simultaneously working to arrange that financing.
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