SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8
AMENDMENT TO APPLICATION OR REPORT
Filed pursuant to Section 12, 13 or 15(d) of
THE SECURITIES EXCHANGE ACT OF 1934
ACTRADE INTERNATIONAL, LTD.
(Exact name of Registrant as specified in charter)
Amendment No. 1
The undersigned Registrant hereby amends the following items, financial
statements, exhibits or other portions of its Annual Report for Fiscal Year
Ended June 30, 1996 on Form 10-KSB as set forth in the pages attached hereto:
The Section entitled "ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS, II. Revenue Segment
Information: Actrade Capital, Inc. and The Trade Acceptance Draft
Program" to correct the amount stated therein for general and
administrative expense from $895,124, as erroneously reported in the
10-KSB filed, to $274,265, being the actual amount of general and
administrative expense for Actrade Capital, Inc. Also, the effect of
such expense is being corrected to properly report that this amount
represented a decrease in general and administrative expense of
approximately 16%, rather than an increase of over 272% as previously
reported. A new, revised page 13 of Registrants annual report on Form
10-KSB is filed herewith to reflect said corrections
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this amendment to be signed on its behalf by the
undersigned, thereto duly authorized.
SEC File No. 0-18711
ACTRADE INTERNATIONAL, LTD.
Dated: August 30, 1996 By:/s/Amos Aharoni___________
Amos Aharoni,
Chief Executive Officer
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Actrade Capital, Inc. and The Trade Acceptance Draft Program.
Following a complete revision of the operating plan for Capital in late fiscal
1993, management developed new trade financing programs intended to be marketed
to domestic companies in the United States. Although a departure from the
Company's core business of international trade, management believed that a
strong demand for new, innovative trade financing methods exists among small to
medium sized American companies. In late fiscal 1993, Capital offered its first
financial program to assist companies in the management and collection of small
open accounts receivable The TAD Program.
During fiscal 1994, the first full year of operations for the TAD Program,
although still in its development stage, Capital generated gross revenues of
$927,757, as compared to $247,809 during fiscal 1993. During fiscal 1994 the
Company incurred general and administrative expenses directly attributable to
Capital's operations of $180,469 resulting in a loss from Capital's operations,
before interest income and expenses, of $76,649. After interest income of
$28,956, and interest expense of $1,918, and provision for taxes of $779, the
net loss from operations for Capital during fiscal 1994 was $50,390. Although
showing a modest loss, Capital's operating results for fiscal 1994 exceeded
management's expectations.
During fiscal 1995, management decided to implement an aggressive new marketing
plan for the TAD Program, principally in response to the perceived need to
educate potential participants in the Program about how trade acceptances work
and how they could benefit from the TAD Program. Additionally, management
decided to offer more conventional receivables management services, such as
factoring, to TAD Program participants to help them with the transition to the
use of trade acceptances.
As a result, during fiscal 1995, Capital generated total gross revenues of
$3,703,493, almost 300% higher than in fiscal 1994. Direct general and
administrative expenses for Capital totaled $120,175 during fiscal 1995 and, had
management not elected to make a year-end allocation of indirect general and
administrative over-head costs, net income before taxes would have been
approximately $215,153. However, due the year-end allocation to Capital of a
share of the Company's indirect general and administrative costs in the amount
of $208,000, Capital reflected net pre-tax income of only $7,153. Management had
elected to make a similar allocation of indirect general and administrative
expenses on a quarterly basis during fiscal 1996 in order to avoid any interim
distortion of earnings by Capital.
During fiscal 1996, Capital generated gross revenues of $7,993,932, almost 116%
higher than fiscal 1995, with direct general and administrative expenses of
$274,265, an decrease of over 16% from fiscal 1995 (as adjusted to include the
1995 year-end allocation). For the fiscal year ended June 30, 1996, Capital
operations reflected a gross profit of $526,386, with net pre-tax income of
$106,377, an increase of more than 1,387% from fiscal 1995.
Page 13
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