<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------
AMENDMENT NO. 1 TO 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) March 10, 1997
--------------------------------
ABS Group Inc.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Delaware 0-19814 87-0462198
(State or Other (Commission (IRS Employer
Jurisdiction of File Number) Identification
Incorporation) Number)
818 East South Temple, Salt Lake City, Utah 84102
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 801-521-8000
-----------------------------
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
-1-
<PAGE> 2
ITEM 5. OTHER EVENTS
On March 25, 1997 the Registrant filed, with the Securities and
Exchange Commission, a Form 8-K with date of report of March 10, 1997, wherein
(in Item 5 thereof) it referred to (amongst other matters) the fact that on
December 31, 1996 the Registrant acquired all of the issued and outstanding
securities of Future Medical Technologies Inc. (which prior to such acquisition
had been a wholly owned subsidiary of a New Jersey corporation known as Medical
Technologies, Inc.). The full contents of such 8-K are herewith incorporated by
reference as if fully set forth and repeated herein.
The financial statements of the aforesaid acquired company were
included in the audited consolidated financial statements of the Registrant in
its Form 10-KSB for calendar year ended December 31, 1996.
In accordance with Item 7(a)(4) of the general instructions to Form 8-K
pro forma financial statements are herewith provided in this first amendment to
such Form 8-K.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(b) Pro Forma Financial Information -- In accordance with Item 7(a)(4)
of the general instructions to Form 8-K pro forma financial information is
filed as Exhibit A.
(c) Exhibits --
Exhibit A -- Pro forma financial information.
-2-
<PAGE> 3
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.
ABS GROUP INC.
By /s/ Emanuel A. Floor
----------------------------------------
Emanuel A. Floor, President
Dated: June 2, 1997
-3-
<PAGE> 4
EXHIBIT INDEX
Exhibit No. Description
99.A Pro Form Financial Information
27 Financial Data Schedule
<PAGE> 1
EXHIBIT A
ABS GROUP INC.
Consolidated Proforma Balance Sheet
December 31, 1996
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
Future Proforma
Medical Adjustments
ABS Group Technologies Increase Proforma
Inc. Inc. (Decrease) Consolidation
---------- -------- --------- -------------
<S> <C> <C> <C> <C>
CURRENT ASSETS
Cash $ 63,955 $ 2,022 $ - $ 65,977
Accounts receivable 90,065 13,959 (73,731) 30,293
Inventory 40,675 47,317 -- 87,992
Prepaid expenses -- 2,060 -- 2,060
---------- -------- --------- ----------
Total Current Assets 194,695 65,358 (73,731) 186,322
---------- -------- --------- ----------
PROPERTY AND
EQUIPMENT - NET 52,393 55,200 -- 107,593
---------- -------- --------- ----------
OTHER ASSETS
Patents/Intellectual
property 599,571 124,763 -- 724,334
Investment in joint
venture 698,953 -- -- 698,953
Deposits -- 12,997 -- 12,997
Goodwill -- -- 185,010 185,010
---------- -------- --------- ----------
Total Other Assets 1,298,524 137,760 185,010 1,621,294
---------- -------- --------- ----------
TOTAL ASSETS $1,545,612 $258,318 $ 111,279 $1,915,209
========== ======== ========= ==========
</TABLE>
See Summary of Assumptions and Disclosures and Accountants' Report
-4-
<PAGE> 2
ABS GROUP INC.
Consolidated Proforma Balance Sheet
December 31, 1996
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Future Proforma
Medical Adjustments
ABS Group Technologies Increase Proforma
Inc. Inc. (Decrease) Consolidation
------------ ----------- ----------- -------------
<S> <C> <C> <C> <C>
CURRENT LIABILITIES
Accounts payable $ 245,807 $ 163,319 $ (73,731) $ 335,395
------------ ----------- ----------- ------------
Total Current Liabilities 245,807 163,319 (73,731) 335,395
------------ ----------- ----------- ------------
LONG-TERM DEBT
Notes payable -- 50,564 250,000 300,564
------------ ----------- ----------- ------------
Total Liabilities 245,807 213,883 176,269 635,959
------------ ----------- ----------- ------------
MINORITY INTEREST 132,141 -- -- 132,141
------------ ----------- ----------- ------------
STOCKHOLDERS' EQUITY
(DEFICIT)
Common stock; par value
$0.0001; 10,000,000 shares
authorized; 3,293,935
issued and outstanding 329 1,804 (1,804) 329
Additional paid-in capital 10,891,924 5,847,669 (5,166,042) 11,573,551
Foreign currency translation 8 -- -- 8
Accumulated deficit (9,724,597) (5,805,038) 5,102,856 (10,426,779)
------------ ----------- ----------- ------------
Total Stockholders' Equity 1,167,664 44,435 (64,990 1,147,109
------------ ----------- ----------- ------------
TOTAL LIABILITIES AND
STOCKHOLDERS'
EQUITY $ 1,545,612 $ 258,318 $ 111,279 $ 1,915,209
============ =========== =========== ============
</TABLE>
See Summary of Assumptions and Disclosures and Accountants' Report
-5-
<PAGE> 3
ABS GROUP INC.
Consolidated Proforma Statement of Operations
December 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
For the Year Ended December 31, 1996
---------------------------------------------------------------
Future
Medical
ABS Group Technologies Proforma Proforma
Inc. Inc. Adjustments Consolidation
----------- --------- ----------- -------------
<S> <C> <C> <C> <C>
NET SALES $ 17,812 $ 229,596 $ -- $ 247,408
COST OF SALES 5,209 240,719 -- 245,928
----------- --------- -------- -----------
GROSS MARGIN 12,603 (11,123) -- 1,480
EXPENSES 1,287,116 490,298 20,557 1,797,971
----------- --------- -------- -----------
LOSS FROM OPERATIONS (1,274,513) (501,421) (20,557) (1,796,491)
OTHER INCOME (EXPENSE) (105,237) (180,206) -- (285,443)
----------- --------- -------- -----------
NET LOSS $(1,379,750) $(681,627) $(20,557) $(2,081,934)
=========== ========= ======== ===========
</TABLE>
See Summary of Assumptions and Disclosures and Accountants' Report
-6-
<PAGE> 4
ABS GROUP INC.
Statements of Assumptions and Disclosures for the
Consolidated Proforma Balance Sheet
December 31, 1996
(Unaudited)
BACKGROUND AND HISTORICAL INFORMATION
ABS Group, Inc. (formerly Advanced Biological Systems, Inc.) was
incorporated under the laws of the State of Delaware on October 3,
1988, discontinued operations during 1992, and was inactive until 1996.
During 1996, the Company acquired FMT, MRUSA and MRPL. The Company is
currently engaged in the production and sale of nutritional
supplements.
Marine Research USA (MRUSA) was incorporated in the State of Utah on
November 6, 1996 for the purpose of facilitating the purchase of Marine
Research Pty. Ltd. by ABS Group Inc. (formerly Advanced Biological
Systems, Inc.) MRUSA owns 100% of the issued and outstanding stock of
Marine Research Pty. Ltd.
Marine Research Pty. Ltd. (MRPL) was incorporated under the laws of the
State of Queensland Australia on February 22, 1991 under the name of
Myalldeen Pty. Ltd. MRPL was inactive until November of 1996 when it
was purchased by MRUSA. Since that time, MRPL has been engaged in the
production and sale of registered therapeutic products in Australia and
a nutritional supplement outside of Australia, the primary ingredient
of which is Sea Cucumber.
Future Medical Technologies, Inc. (FMT) was incorporated under the laws
of the state of New Jersey on September 28, 1984 for the purpose of
developing technology relating to microbiological testing of water,
beverages and food.
PROFORMA TRANSACTIONS
On December 31, 1996, the Company purchased FMT by assuming debt in the
amount of $250,000 and by paying $73,731 in cash. The acquisition
resulted in fixed assets being revalued to their fair market value of
$55,200. The purchase of FMT resulted in the creation of goodwill of
$205,566.
PROFORMA ADJUSTMENTS
The proforma adjustments have been prepared under the purchase method
of accounting for business combinations and all significant
inter-company transactions have been eliminated. The proforma
adjustments to record the merger of the companies under the purchase
method of accounting for business combinations are:
1) Acquisition of FMT through assumption of note payable of $250,000:
<TABLE>
<S> <C>
Notes Payable $(250,000)
Fixed assets 44,434
Goodwill 205,566
---------
Total $ --
=========
</TABLE>
-7-
<PAGE> 5
ABS GROUP INC.
Statements of Assumptions and Disclosures for the
Consolidated Proforma Balance Sheet
December 31, 1996
(Unaudited)
PROFORMA ADJUSTMENTS (continued)
2) Eliminate the common stock of FMT:
<TABLE>
<S> <C>
Common stock $ 1,804
Additional paid-in capital (1,804)
-------
Total $ --
=======
</TABLE>
3) Eliminate accumulated deficit of FMT:
<TABLE>
<S> <C>
Accumulated Deficit $(5,123,412)
Additional paid-in capital 5,123,412
Total $ --
===========
</TABLE>
4) Record amortization of goodwill:
<TABLE>
<S> <C>
Goodwill $(20,557)
Accumulated Deficit 20,557
--------
Total $ --
========
</TABLE>
5) Eliminate intercompany accounts:
<TABLE>
<S> <C>
Accounts receivable $(73,731)
Accounts payable 73,731
--------
Total $ --
========
</TABLE>
-8-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<CASH> 65,977
<SECURITIES> 0
<RECEIVABLES> 30,293
<ALLOWANCES> 0
<INVENTORY> 87,992
<CURRENT-ASSETS> 186,322
<PP&E> 109,400
<DEPRECIATION> 1,807
<TOTAL-ASSETS> 1,915,209
<CURRENT-LIABILITIES> 335,395
<BONDS> 0
0
0
<COMMON> 329
<OTHER-SE> 1,146,780
<TOTAL-LIABILITY-AND-EQUITY> 1,915,209
<SALES> 247,408
<TOTAL-REVENUES> 247,408
<CGS> 245,928
<TOTAL-COSTS> 1,797,971
<OTHER-EXPENSES> 285,443
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (2,081,934)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,081,934)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,081,934)
<EPS-PRIMARY> (0.70)
<EPS-DILUTED> (0.70)
</TABLE>
