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SECURITIES AND EXHCANGE 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): November 2, 1998
INNOVO GROUP INC.
(Exact name of registrant as specified in charter)
Delaware 0-18926 11-2928178
(State or ohter jurisidiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
27 North Main Street, Springfield, Tennessee 37172
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (615) 384-0100
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Item 7. Financial Statements and Exhibits
(c) The following Exhibits are filed with or incorporated by reference in
this Report as indicated below:
99.1 Press Release dated November 2, 1998
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SIGNATURES
Pursuant to the requirements of the Securities Exhcange Act of 1934,
The registrant has duly caused this report to be signed on its behalf by the
Undersigned hereunto duly authorized.
INNOVO GROUP INC.
(Registrant)
By: L. E. Smith
L. E. Smith, Chairman and
Chief Executive Officer
Date: November 2, 1998
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EX-99.1
PREESS RELEASE DATED November 2, 1998
NEWS RELEASE
INNOVO TO MEET NASDAQ'S
TANGIBLE NET WORTH REQUIREMENTS
SPRINGFIELD, TENNESSEE, November 2, 1998--INNOVO GROUP
INC. (NASDAQ Symbol: INNO), a manufacturer and supplier to
national and international retailers, including Wal-Mart,
K-Mart, Michael's, Hobby Lobby, Dollar General, Goody's and
Fabri-Center, was notified by NASDAQ on 10-19-98 that it no
longer met the Net Tangible Asset requirements as reported
on it's most recent public filing. The company must provide
NASDAQ with its definitive plan to achieve compliance by
October 30, 1998.
L.E. Smith stated that the company has already taken
action to meet the requirements with the sale of $1,798,000
of its common stock to FHD-II, LLC. This equity infusion
was closed on 10-19-98 and gives Innovo a Net Tangible
Worth of $3,077,000 as of September 30, 1998. NASDAQ has been
notified and the matter should be resolved.
PART I.FINANCIAL INFORMATION
Item 1.FINANCIAL STATEMENTS
INNOVO GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(000's except for share data)
(Unaudited)
8/31/98 Sept. 30 Adj. Proforma
1998 1998 1998 Sept. 98
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ASSETS
CURRENT ASSETS
Cash and cash equivalents $706 $744 $1,798 $2,542
Accounts receivable 1,971 1,534 1,534
Inventories 1,357 1,275 1,275
Prepaid expenses 341 326 326
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TOTAL CURRENT ASSETS 4,375 3,879 1,798 5,677
PROPERTY AND EQUIPMENT, net 4,683 4,654 4,654
OTHER ASSETS 38 34 34
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$9,096 $8,567 $1,798 $10,365
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable 2,531 2,283 $2,283
Current maturities of long-term
debt 426 424 424
Accounts payable 1,266 1,233 1,233
Accrued expenses 1,266 1,248 1,248
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TOTAL CURRENT LIABILITIES 5,489 5,188 0 5,188
LONG-TERM DEBT, less current
maturities 2,100 2,100 2,100
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TOTAL LIABILITIES 7,589 7,2880 7,288
STOCKHOLDERS' EQUITY
Common stock $.10 par; shares
authorized 7,000,000; issued
5,387,113 shares in 1998,
4,459,613 shares in 1997 449 448 90 538
Additional paid-in capital 28,574 28,574 1,708 30,282
Promissory Note - Officer (703) (703) (703)
Deficit (24,387) (24,614) (24,614)
Treasury stock, 11,969 shares (2,426) (2,426) (2,426)
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TOTAL STOCKHOLDERS' EQUITY 1,507 1,279 1,798 3,077
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$9,096 $8,567 $1,798 $10,365
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Innovo Group Inc. designs, markets, manufacturers and
distributes fashion and sports licensed nylon and canvas
products for the multi-billion crafts industry and retail
sector in the United States and Europe. Under licensing
agreements, the Company's sports lines feature the designs
of the NBA, NFL, Major League Baseball, NHL, numerous
collegiate teams, Walt Disney and Warner Brothers. Innovo
also has certain exclusive and non-exclusive manufacturing
and distribution rights for NASCAR licensed products.
This press release may contain forward-looking
statements made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that such forward-looking
statements involve risks and uncertainties, including,
without limitation, continued acceptance of the Company's
product, product demand, competition, capital adequacies,
access to additional capital if required and other risks
and uncertainties detailed from time to time in the
Company's periodic reports including Quarterly Reports on
form 10-Q and Annual Reports on form 10-K.
Listed: NASDAQ SmallCap Exchange
Symbol: INNO
Contact: Jay Furrow, V.P. of Corporate Development,
(615)384-0100
