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U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K/A
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER 0-20270
THE NATIONAL REGISTRY INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 95-4346070
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification No.)
2502 ROCKY POINT DRIVE, SUITE 100, TAMPA, FLORIDA 33607
------------------------------------------------- ---------
(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number, including area code: (813) 636-0099
--------------
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Common stock, par
value $.01 per share.
Indicate by check mark whether the registrant: (i) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (ii) has been subject to
filing requirements for the past 90 days. Yes [X] No [ ]
Indicate by check mark if disclosure of delinquent filers pursuant to item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ ]
The aggregate market value of the voting stock held by non-affiliates of
the registrant, based upon the average bid and asked prices of such stock on
November 5, 1997, was $24,811,427. There were 36,089,349 shares of Common Stock
outstanding as of November 5, 1997.
Total Number of pages: 12
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<PAGE>
The undersigned registrant (the "Registrant") hereby amends the following
items of its Annual Report on Form 10-K for the fiscal year ended December 31,
1996 (the "Report") as follows:
PART II
The Registrant hereby deletes the information set forth under item 6 of the
Report and replaces such item in its entirety as set forth below.
The Registrant hereby deletes the information set forth under Item 8,
Balance Sheets, Statements of Operations and Statements of Stockholders' Equity
(Deficit), and replaces such Balance Sheets, Statements of Operations and
Statements of Stockholders' Equity (Deficit) in their entirety as set forth
below.
PART IV
The Registrant hereby deletes the information set forth under Item 14,
Exhibits 11 and 27, and replaces such exhibits in their entirety as set forth
below.
2
<PAGE>
ITEM 6. SELECTED FINANCIAL DATA (IN THOUSANDS EXCEPT PER SHARE DATA).
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
--------------------------------------------------------
SUMMARY STATEMENT OF OPERATIONS DATA 1996 1995 1994 1993 1992
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Revenue ......................... $ 2,305 $ 401 -- -- --
Net loss ........................ $ (7,340) $ (5,070) $ (7,006) $ (6,050) $ (6,728)
Preferred Stock dividend ........ $ 1,412 -- -- -- --
Net loss attributable to common
stockholders .................. ($ 8,752) $ (5,070) $ (7,006) $ (6,050) $ (6,728)
Net loss per common share ....... $ (0.31) $ (0.22) $ (0.37) $ (.33) $ (0.45)
Weighted average number of common
shares ........................ 28,077 23,238 19,093 18,489 15,021
AT ENDED DECEMBER 31,
--------------------------------------------------------
SUMMARY BALANCE SHEET DATA 1996 1995 1994 1993 1992
-------- -------- -------- -------- --------
Total assets .................... $ 2,832 $ 1,600 $ 1,701 $ 6,632 $ 6,738
Total liabilities ............... 1,348 510 273 186 397
Stockholders' equity ............ 1,484 1,090 1,428 6,446 6,341
<FN>
- ------------
(1) On February 6, 1997, the Company completed an equity financing of Series C
Preferred Stock which raised $7.0 million before commissions and expenses
(estimated at approximately $495,000 in the aggregate). See "Item 1.
Business--Recent Developments."
</FN>
</TABLE>
3
<PAGE>
THE NATIONAL REGISTRY, INC.
BALANCE SHEETS
DECEMBER 31,
------------------------
1996 1995
------- -------
(IN THOUSANDS)
ASSETS
Current assets:
Cash and cash equivalents .................. $ 914 $ 178
Receivables:
Trade .................................... 362 --
Other .................................... 98 22
Note--related party ...................... -- 60
------- -------
460 82
------- -------
Inventory ................................ -- 143
Prepaid expenses ......................... 199 182
Deferred charges ......................... 6 159
Other .................................... 23 11
------- -------
Total current assets ................... 1,602 755
Equipment:
Computer equipment ....................... 2,568 1,848
Office equipment and other ............... 381 215
------- -------
2,949 2,063
------- -------
Less accumulated depreciation ................ (1,824) (1,323)
------- -------
Investment ................................. 105 105
------- -------
Total assets ............................. $ 2,832 $ 1,600
======= =======
4
<PAGE>
THE NATIONAL REGISTRY, INC.
BALANCE SHEETS--(CONTINUED)
DECEMBER 31,
----------------------
1996 1995
---------- --------
(IN THOUSANDS)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable .............................. $ 368 $ 220
Accrued compensation .......................... 346 13
Other accrued expenses ........................ 367 226
Accrued legal and professional fees ........... 267 51
-------- --------
Total current liabilities ................... 1,348 510
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock, $.01 par value:
Authorized--75,000,000 shares
Issued and outstanding--34,401,005 and
24,244,253 shares in 1996 and 1995 ........... 344 242
Preferred stock, $.01 par value convertible:
Authorized--1,000,000 shares
Issued and outstanding--100,000 shares
in 1996 and 1995 (liquidation preference
of $100 per share) ........................... 1 1
Capital in excess of par value ................... 35,713 26,475
Accumulated deficit .............................. (34,431) (25,376)
Unamortized deferred compensation ................ (143) (252)
-------- --------
Total stockholders' equity ................... 1,484 1,090
-------- --------
Total liabilities and stockholders' equity ... $ 2,832 $ 1,600
======== ========
5
<PAGE>
THE NATIONAL REGISTRY, INC.
STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31,
--------------------------------
1996 1995 1994
-------- -------- --------
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Revenue ......................... $ 2,305 $ 401 $ --
Cost of revenue ................. 1,292 274 --
-------- -------- --------
Gross profit (loss) ........ 1,013 (127) --
Operating expenses:
Selling and marketing ........ 3,445 1,622 1,431
Product development ........... 2,388 2,056 3,114
General and administrative ...... 2,697 1,601 2,564
-------- -------- --------
Total operating expenses ... 8,530 5,279 7,109
Other income:
Interest income ................. 177 82 103
Net loss ........................ (7,340) (5,070) (7,006)
Preferred Stock dividend ........ 1,412 -- --
Net loss attributable to common
stockholders .................. $ (8,752) $ (5,070) $ (7,006)
======== ======== ========
Net loss per common share ....... $ (0.31) $ (0.22) $ (0.37)
======== ======== ========
Weighted average number of shares
outstanding ................... 28,077 23,238 19,093
======== ======== ========
6
<PAGE>
<TABLE>
<CAPTION>
THE NATIONAL REGISTRY, INC.
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
COMMON STOCK PREFERRED STOCK CAPITAL UNAMORTIZED
------------------ ----------------- IN EXCESS ACCUMULATED DEFERRED
SHARES AMOUNT SHARES AMOUNT OF PAR DEFICIT COMPENSATION TOTAL
-------- -------- -------- -------- --------- ----------- ------------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BALANCE AT
DECEMBER 31, 1993..... 18,624 186 100 1 20,729 (13,300) (1,170) 6,446
Issuance of common
stock, net of
offering costs, on
August 5, 1994 at
$2.00/share......... 377 4 -- -- 747 -- -- 751
Cancellation of
compensatory stock
options............. -- -- -- -- (784) -- 370 (414)
Stock gifted by
principal
stockholder......... -- -- -- -- 195 -- -- 195
Expense related to
stock option plans.. -- -- -- -- -- -- 563 563
Issuance of common
stock upon exercise
of stock options at
$2.25/share......... 8 -- -- -- 16 -- -- 16
Issuance of common
stock upon exercise
of stock options at
$.01/share.......... 450 4 -- -- -- -- -- 4
Issuance of common
stock upon exercise
of warrants at
$.50/share.......... 150 2 -- -- 73 -- -- 75
Issuance of common
stock as
compensation........ -- -- -- -- 183 -- -- 183
Issuance of common
stock upon exercise
of stock options at
$.00/share.......... 155 2 -- -- 613 -- -- 615
Net loss.............. -- -- -- -- -- (7,006) -- (7,006)
------ --- --- -- ------ ------- ------ ------
BALANCE AT
DECEMBER 31, 1994..... 19,763 198 100 1 21,772 (20,306) (237) 1,428
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
THE NATIONAL REGISTRY, INC.
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)-(CONTINUED)
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
COMMON STOCK PREFERRED STOCK CAPITAL UNAMORTIZED
----------------- ---------------- IN EXCESS ACCUMULATED DEFERRED
SHARES AMOUNT SHARES AMOUNT OF PAR DEFICIT COMPENSATION TOTAL
------ ------ ------ ------ --------- ----------- ------------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BALANCE AT DECEMBER 31, 1994 .. 19,763 198 100 1 21,772 (20,306) (237) 1,428
Issuance of common stock at
no cost .................. 150 1 -- 1 (1) -- -- --
Issuance of common stock,
net of offering costs, at
$1.00 per share .......... 4,000 40 -- -- 3,928 -- -- 3,968
Cancellation of
Compensatory stock
options .................. -- -- -- -- (125) 106 (19) --
Granting of compensatory
stock options ............ -- -- -- -- 372 -- (372) --
Repricing of compensatory
stock options ............ -- -- -- -- 74 -- (74) --
Expense related to stock
option plans ............. -- -- -- -- -- -- 325 325
Issuance of common stock
upon exercise of stock
options at $1.50 per share 306 3 -- -- 455 -- -- 458
Issuance of common stock
upon exercise of stock
options at $.01 per share 25 -- -- -- -- -- -- --
Net loss .................... -- -- -- -- -- (5,070) -- (5,070)
======= ======= ======= ======= ======= ======= ======= =======
BALANCE AT DECEMBER 31, 1995 .. 24,244 242 100 1 26,475 (25,376) (252) 1,090
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
THE NATIONAL REGISTRY, INC.
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)--(CONTINUED)
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
COMMON STOCK PREFERRED STOCK CAPITAL UNAMORTIZED
------------ --------------- IN EXCESS ACCUMULATED DEFERRED
SHARES AMOUNT SHARES AMOUNT OF PAR DEFICIT COMPENSATION TOTAL
------ ------ ------ ------ --------- ----------- ------------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BALANCE AT DECEMBER 31, 1995...24,244 $242 100 $1 $26,475 $(25,376) $252 $1,090
Issuance of Series B
preferred stock,
net of offering costs,
at $10,000 per share......... -- -- 1 -- 7,280 -- -- 7,280
Dividend on Series B
preferred stock at 8%........ -- -- -- -- 303 (303) -- --
Preferred stock deemed
dividend..................... -- -- -- -- 1,412 (1,412)
Conversion of Series B
preferred stock to common
stock at various exchange
rates........................ 9,927 100 (1) -- (100) -- -- --
Expense related to stock
option plans................. -- -- -- -- -- -- 109 109
Issuance of common stock
upon exercise of $1.50
per share.................... 230 2 -- -- 343 -- -- 345
Net loss...................... -- -- -- -- -- 7,340) (7,340)
----- ---- --- ---- ------- ------ ----- ------
BALANCE AT DECEMBER 31, 1996...34,401 $344 100 $1 $35,713 $(34,431) $(143) $1,484
</TABLE>
9
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this amendment to the report to be signed on its
behalf by the undersigned, thereunto duly authorized.
THE NATIONAL REGISTRY INC.
(REGISTRANT)
Date: November 7, 1997 By: /s/ JOHN L. GUSTAFSON
-------------------------
John L. Gustafson
President, Chief Executive
Officer and Director
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and on the dates indicated.
Date: November 7, 1997 By: /s/ JOHN L. GUSTAFSON
-------------------------
John L. Gustafson
President, Chief Executive
Officer and Director
Date: November 7, 1997 By: /s/ DAVID E. BROGAN
-------------------------
David E. Brogan
Secretary, Treasurer
and Controller
Date: November 7, 1997 By: /s/ J. ANTHONY FORSTMANN
-------------------------
J. Anthony Forstmann
Chairman of the Board
Date: November 7, 1997 By: /s/ FRANK M. DEVINE
-------------------------
Frank M. Devine
Director
Date: November 7, 1997 By: /s/
-----------------------------
Donald C. Klosterman
Date: November 7, 1997 By: /s/ DON M. LYLE
-----------------------------
Don M. Lyle
Date: November 7, 1997 By: /s/
-----------------------------
Jed B. Trosper
Date: November 7, 1997 By: /s/
-----------------------------
Francis R. Santangelo
10
EXHIBIT 11
THE NATIONAL REGISTRY INC.
CALCULATION OF LOSS PER SHARE
(In thousands except per share information)
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1994 1995(1) 1996
------------ ------------ -------------
PRIMARY AND FULLY DILUTED
LOSS PER SHARE:
Weighted average shares
outstanding of Common Stock 19,093 23,238 28,077
Net loss $ (7,006) $ (5,070) $ (7,340)
-------- -------- --------
Preferred Stock dividend -- -- 1,412
Net loss attributable to
Common Stockholders (7,006) (5,070) (8,752)
Net loss per share $ (0.37) $ (0.22) $ (0.31)
======== ======== ========
(1) During the period indicated, the Company has 100,000 shares of preferred
stock convertible into 6,336,154 shares of common stock, 4,876,000 options
and 75,200 warrants outstanding to purchase common stock of the Company.
Preferred stock, stock options and warrants are not considered in the
calculation because they are anti-dilutive in the aggregate.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<CASH> 914
<SECURITIES> 0
<RECEIVABLES> 460
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,602
<PP&E> 2,568
<DEPRECIATION> 1,824
<TOTAL-ASSETS> 2,832
<CURRENT-LIABILITIES> 1,348
<BONDS> 0
0
1
<COMMON> 344
<OTHER-SE> 1,139
<TOTAL-LIABILITY-AND-EQUITY> 2,832
<SALES> 2,305
<TOTAL-REVENUES> 2,305
<CGS> 1,292
<TOTAL-COSTS> 1,292
<OTHER-EXPENSES> 8,353
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (7,340)
<INCOME-TAX> 0
<INCOME-CONTINUING> (7,340)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (7,340)
<EPS-PRIMARY> (0.31)
<EPS-DILUTED> (0.31)
</TABLE>
