<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------
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) JANUARY 13, 1997
FIBERCHEM INC.
--------------------------------------------------
(Exact name of registrant as specified in charter)
Delaware 1-17569 84-1063897
- ---------------------------- ----------- ------------------
(State or other jurisdiction (Commission) (IRS Employer
of incorporation) File Number) Identification No.)
1181 Grier Drive, Suite B, Las Vegas, Nevada 89119
- -------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
(702) 361-9873
--------------------------------------------------
Registrant's telephone number, including area code
N/A
-------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
ITEM 5. OTHER EVENTS
FiberChem, Inc. (the "Company") announced today that it would report
substantially lower revenues for the fiscal year ended September 30, 1996
("Fiscal 1996") than were previously reported by the Company as a result of a
review of its revenue recognition policy with its independent accountants.
The Company intends to file its Annual Report on Form 10-KSB within the next
few days. The Company has historically recognized revenue when title passes,
which is normally upon shipment of product to the customer. There is
generally no right of return except for normal warranties. Subsequent to year
end, the Company determined that recognition of revenues aggregating
approximately $1,800,000, primarily from distributors, should in large part
be deferred to subsequent periods. This determination was derived from
delays in anticipated wide acceptance of certain of the Company's products.
As a result of the foregoing, the Company expects to record approximately
$900,000 of revenues during Fiscal 1996 with a loss of approximately
$3,300,000. The Company said that it will restate its financial results for
the third fiscal quarter ended June 30, 1996 and possibly other quarter(s).
The Company had previously reported Nine Month Revenues of $1,789,187 and a
net loss of $1,624,670. Revenues for the first fiscal quarter of 1997 ended
December 31, 1996 are similarly affected. They are anticipated to be
substantially lower than previously expected. Again, revenues not recognized
for the first quarter of Fiscal 1997 are, however, anticipated to be
recognized as revenues in subsequent periods.
Geoffrey Hewitt, President and Chief Executive Officer of FiberChem,
stated that the Company had previously reported in its Quarterly Report on
Form 10-QSB for June 30, 1996, that there had been a slowdown in
installations and hence a slowdown in receipt of anticipated orders in the
offshore oil production market. In addition, in view of the fact that the
aboveground storage tank leak detection industry is still in its embryonic
stages and market acceptance of the industry's products, not just those of
the Company, is taking longer than expected, various allowances have to be
given to the Company's customers, which were in keeping with competitive
practices for this industry. In reviewing this matter, the Company's Audit
committee concluded that the adjustments were necessitated by the above
factors and did not entail any improprieties by the Company or its officers.
Hewitt stated that the Company remains confident that its FOCS-R-
technology will be adopted by both the offshore production and leak
detection marketplaces as the technology of choice; and that its other
business prospects, including its Sensor-on-a-Chip-TM- technology are
unaffected.
This report includes forward-looking statements that involve risks and
uncertainties, including the timely development and acceptance of new
products, the impact of competitive products and pricing, the timely funding
of customers' projects, customer payments to the Company and the other risks
detailed from time to time in the Company's SEC reports.
FiberChem, Inc. develops, manufactures, markets and licenses fiber optic
chemical sensors (FOCS-R-) that produce continuous, real-time information on
environmental pollutants in the air, water and soil.
-2-
<PAGE>
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA INFORMATION AND EXHIBITS.
(a) FINANCIAL STATEMENTS OF BUSINESS ACQUIRED. Not applicable.
(b) PRO FORMA FINANCIAL INFORMATION. Not applicable.
(c) EXHIBITS. Not applicable.
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 thereunto duly authorized.
FIBERCHEM, INC.
Dated: January 13, 1997 By: /s/ GEOFFREY F. HEWITT
----------------------
Geoffrey F. Hewitt
PRESIDENT
-3-
