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<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported) SEPTEMBER 2, 1997
INTERNATIONAL IMAGING, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-26182 13-3469649
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
Suite 930, 1875 Century Park East, Los Angeles, CA 90067
(Address of principal executive offices, including Zip Code)
(310) 203-4500
(Registrant's telephone number, including area code)
<PAGE> 2
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
a. Financial Statements of Businesses Acquired
Chiralt Corporation - The audit of the financial statements of
Chiralt Corporation is not yet completed. The balances
included in the pro forma income statement for the last twelve
month period are based upon preliminary unaudited amounts. The
audited financial statements will be provided by amendment to
Form 8-K/A as soon as they are available.
Rose Color, Inc. and SPS Alfachem, Inc. - Rose Color, Inc. and
SPS Alfachem, Inc. were wholly owned subsidiaries of Rose
International Ltd. The audited financial statements of Rose
International Ltd. and Subsidiaries is located at Commission
File No. 0-28720.
b. Pro Forma Financial Information
Pro forma financial schedules are attached hereto as Exhibit A
c. Exhibits
Exhibit A-1 Pro Forma Combined Balance Sheet as of June 30,
1997
Exhibit A-2 Pro Forma Combined Statement of Operations for the
three months ended June 30, 1997 and for the year ended
March 31, 1997
Exhibit A-3 Pro Forma Balance Sheet as of June 30, 1997 for
International Imaging, Inc.
Exhibit A-4 Pro Forma Statement of Operations for the three
months ended June 30, 1997 and for the year ended March
31, 1997 for International Imaging, Inc.
Exhibit A-5 Pro Forma Balance Sheet as of June 30, 1997 for
Chiralt Corporation
Exhibit A-6 Pro Forma Statement of Operations for the three
months ended June 30, 1997 and for the year ended December
31, 1996 for Chiralt Corporation
Exhibit A-7 Pro Forma Balance Sheet as of June 30, 1997 for
Rose Color, Inc. and SPS Alfachem, Inc. combined
Exhibit A-8 Pro Forma Statement of Operations for the three
months ended June 30, 1997 and for the year ended December
31, 1996 for Rose Color, Inc. and SPS Alfachem, Inc.
combined
Exhibit A-9 Pro Forma Statement of Stockholders' Equity for
International Imaging, Inc.
<PAGE> 3
SIGNATURE
Pursuant to the regulations of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed in its behalf by the
undersigned thereunto duly authorized.
INTERNATIONAL IMAGING, INC.
Date: November 14, 1997 /s/ Ronald J. Amen
------------------
Ronald J. Amen, President
<PAGE> 1
<TABLE>
<CAPTION>
Exhibit A
Pro Forma
III Chiralt Rose Cos. Adjustments Combined
ASSETS
<S> <C> <C> <C> <C> <C>
Cash and cash equivalents $ 15 $ 21,782 $ 129,961 $ 151,758
Accounts receivable, net $ - $ 37,500 $ 1,244,601 $ 1,282,101
Inventory $ - $ 2,036,948 $ 2,036,948
Other current assets $ - $ 81,046 $ 81,046
----------------------------------------------------------------------------------
Total current assets $ 15 $ 59,282 $ 3,492,556 $0 $ 3,551,853
Property and equipment, net $ - $ 289,896 $ 6,206,555 $ 6,496,451
Investment in Quantex $ 2,500,000 $ 2,500,000
Other $ 40,000 $ 1,210,961 $ 305,853 $ 1,556,814
==================================================================================
Total assets $ 40,015 $ 4,060,139 $10,004,964 $0 $14,105,118
==================================================================================
LIABILITIES AND EQUITY
Accounts payable $ 64,509 $ 501,686 $ 1,030,093 $ 1,596,288
Accrued liabilities and other $ - $ 505,246 $ 111,128 $ 616,374
Notes payable and current portion $ -
of long-term obligations $ - $ 2,110,278 $ 104,012 $ 2,214,290
----------------------------------------------------------------------------------
Total current liabilities $ 64,509 $ 3,117,210 $ 1,245,233 $0 $ 4,426,952
Long-term obligations $ - $ 1,564,431 $ 1,564,431
Deferred income taxes $ 781,000 $ 781,000
Subsidiary preferred stock $ 3,212,735 $ 3,212,735
Minority interest $ 3,835 $ 3,835
Stockholders' equity:
Common stock $ 1,736 $ 20,000 $ 6,457,100 ($6,459,543) $ 19,293
Paid-in capital $ 2,731,608 $ 5,670 $3,701,705 $ 6,438,983
Foreign currency translation adj $ (46,635) $ (46,635)
Deficit $(2,757,838) $(2,295,476) $2,757,838 $(2,295,476)
----------------------------------------------------------------------------------
Total stockholders' equity $ (24,494) $(2,269,806) $ 6,410,465 $0 $ 4,116,165
==================================================================================
$ 40,015 $ 4,060,139 $10,004,964 $ - $14,105,118
==================================================================================
</TABLE>
Stockholders' equity is adjusted to give effect to the issuance of 3,000,000
common shares for the acquisition of the Rose Cos. and 11,630,408 common shares
for the acquisition of Chiralt.
Page 1
<PAGE> 1
<TABLE>
<CAPTION>
Exhibit A
Pro Forma
III Chiralt Rose Cos. Adjustments Combined
<S> <C> <C> <C> <C> <C>
THREE MONTHS ENDED JUNE 30, 1997
Sales and revenues $ 6,522 $ 1,782,388 $ 1,788,910
Cost of sales $ 1,970 $ 1,479,766 $ 1,481,736
---------------------------------------------------------------------------------------
Gross profit $ - $ 4,552 $ 302,622 $ - $ 307,174
Other expense (income):
Selling, general and admin $ 7,530 $ 760,797 $ 351,077 $ 1,119,404
Other, net $ 40,938 $ 40,938
---------------------------------------------------------------------------------------
$ 7,530 $ 760,797 $ 392,015 $ - $ 1,160,342
---------------------------------------------------------------------------------------
$ (7,530) $ (756,245) $ (89,393) $ - $ (853,168)
Income tax benefit $ - $ (44,000) $ (44,000)
=======================================================================================
Net loss $ (7,530) $ (756,245) $ (45,393) $ - $ (809,168)
=======================================================================================
Net loss per share $(.05)
======
YEAR ENDED MARCH 31, 1997
Sales and revenues $ 6,698,612 $ 6,698,612
Cost of sales $ 5,284,134 $ 5,284,134
---------------------------------------------------------------------------------------
Gross profit $ - $ - $ 1,414,478 $ - $ 1,414,478
Other expense (income):
Selling, general and admin $ 25,000 $ 854,559 $ 949,392 $ 1,828,951
Other, net $ 63,631 $ 63,631
---------------------------------------------------------------------------------------
$ 25,000 $ 854,559 $ 1,013,023 $ - $ 1,892,582
---------------------------------------------------------------------------------------
$ (25,000) $ (854,559) $ 401,455 $ - $ (478,104)
Income tax expense $ - $ - $ 160,000 $ 160,000
=======================================================================================
Net loss $ (25,000) $ (854,559) $ 241,455 $ - $ (638,104)
=======================================================================================
Net loss per share $(.04)
======
Page 2
</TABLE>
<PAGE> 1
<TABLE>
<CAPTION>
Exhibit A
III ESECO III III
(Consolidated) (Subsidiary) (Separate) Adjustments Pro Forma
<S> <C> <C> <C> <C> <C>
ASSETS
Cash and cash equivalents $ 192 $ 177 $ 15 $ 15
Accounts receivable, net $ 184,330 $ 184,330 $ - $ -
Inventory $ 1,219,190 $ 1,219,190 $ - $ -
Other current assets $ 34,700 $ 34,700 $ - $ -
---------------------------------------------------------------------------------------------
Total current assets $ 1,438,412 $ 1,438,397 $ 15 $0 $ 15
Property and equipment, net $ 535,089 $ 535,089 $ - $ -
Other $ 11,346 $ (28,654) $ 40,000 $ 40,000
=============================================================================================
Total assets $ 1,984,847 $ 1,944,832 $ 40,015 $0 $ 40,015
=============================================================================================
LIABILITIES AND EQUITY
Accounts payable $ 470,679 $ 406,170 $ 64,509 $ 64,509
Accrued liabilities and other $ 475,271 $ 475,271 $ - $ -
Current maturities of long- $ - $ -
term obligations $ 178,886 $ 178,886 $ - $ -
---------------------------------------------------------------------------------------------
Total current liabilities $ 1,124,836 $ 1,060,327 $ 64,509 $0 $ 64,509
Long-term obligations $ 991,210 $ 991,210 $ - $ -
$ - $ -
Stockholders' equity:
Common stock $ 5,680 $ 3,944 $ 1,736 $ 1,736
Paid-in capital $ 2,615,540 $ (116,068) $ 2,731,608 $ 2,731,608
Deficit $ (2,752,419) $ 5,419 $(2,757,838) $(2,757,838)
---------------------------------------------------------------------------------------------
Total stockholders' equity $ (131,199) $ (106,705) $ (24,494) $0 $ (24,494)
=============================================================================================
$ 1,984,847 $ 1,944,832 $ 40,015 $0 $ 40,015
=============================================================================================
</TABLE>
The column titled III (Consolidated) shows the summarized financial statements
as reported on Form 10-QSB at June 30, 1997. As a part of their bankruptcy
reorganization plan, their wholly owned subsidiary was sold, leaving the third
column which reflects International Imaging, Inc. separately. The Pro Forma
amounts are carried to Page 1.
Page 3
<PAGE> 1
<TABLE>
<CAPTION>
Exhibit A
III ESECO III III
(Consolidated) (Subsidiary) (Separate) Adjustments Pro Forma
<S> <C> <C> <C> <C> <C>
THREE MONTHS ENDED JUNE 30, 1997
Sales and revenues $ 663,747 $ 663,747 $ - $ -
Cost of sales $ 429,883 $ 429,883 $ - $ -
---------------------------------------------------------------------------------------
Gross profit $ 233,864 $ 233,864 $ - $ - $ -
Other expense (income):
Selling, general and admin $ 212,908 $ 205,378 $ 7,530 $ 7,530
Other, net $ 8,852 $ 8,852 $ - $ -
---------------------------------------------------------------------------------------
$ 221,760 $ 214,230 $ 7,530 $ - $ 7,530
---------------------------------------------------------------------------------------
$ 12,104 $ 19,634 $ (7,530) $ - $ (7,530)
Income tax benefit $ - $ - $ -
=======================================================================================
Net loss $ 12,104 $ 19,634 $ (7,530) $ - $ (7,530)
=======================================================================================
YEAR ENDED MARCH 31, 1997
Sales and revenues $ 3,136,818 $ 3,136,818 $ - $ -
Cost of sales $ 2,186,841 $ 2,186,841 $ - $ -
---------------------------------------------------------------------------------------
Gross profit $ 949,977 $ 949,977 $ - $ - $ -
Other expense (income):
Selling, general and admin $ 1,504,757 $ 1,479,757 $ 25,000 $ 25,000
Other, net $ 116,047 $ 116,047 $ - $ -
---------------------------------------------------------------------------------------
$ 1,620,804 $ 1,595,804 $ 25,000 $ - $ 25,000
---------------------------------------------------------------------------------------
$ (670,827) $ (645,827) $ (25,000) $ - $ (25,000)
Income tax expense $ - $ - $ - $ -
=======================================================================================
Net loss $ (670,827) $ (645,827) $ (25,000) $ - $ (25,000)
=======================================================================================
Page 4
</TABLE>
<PAGE> 1
<TABLE>
<CAPTION>
Exhibit A
Chiralt
Chiralt Adjustments Pro Forma
<S> <C> <C> <C>
ASSETS
Cash and cash equivalents $ 21,782 $ 21,782
Accounts receivable, net $ 37,500 $ 37,500
Inventory $ - $ -
Other current assets $ - $ -
--------------------------------------------------------------
Total current assets $ 59,282 $0 $ 59,282
Property and equipment, net $ 289,896 $ 289,896
Other $ 3,710,961 $ 3,710,961
==============================================================
Total assets $ 4,060,139 $0 $ 4,060,139
==============================================================
LIABILITIES AND EQUITY
Accounts payable $ 501,686 $ 501,686
Accrued liabilities and other $ 505,246 $ 505,246
Current maturities of long- $ - $ -
term obligations $ 2,110,278 $ 2,110,278
--------------------------------------------------------------
Total current liabilities $ 3,117,210 $0 $ 3,117,210
Long-term obligations $ - $ -
$ - $ -
Stockholders' equity:
Common stock $ 20,000 $ 20,000
Preferred stock $ 3,212,735 $ 3,212,735
Paid-in capital $ 5,670 $ 5,670
Deficit $(2,295,476) $(2,295,476)
--------------------------------------------------------------
Total stockholders' equity $ 942,929 $0 $ 942,929
==============================================================
$ 4,060,139 $0 $ 4,060,139
==============================================================
Page 5
</TABLE>
<PAGE> 1
<TABLE>
<CAPTION>
Exhibit A
Chiralt
Chiralt Adjustments Pro Forma
<S> <C> <C> <C>
THREE MONTHS ENDED JUNE 30, 1997
Sales and revenues $ 6,522 $ 6,522
Cost of sales $ 1,970 $ 1,970
----------------------------------------------------------
Gross profit $ 4,552 $ - $ 4,552
Other expense (income):
Selling, general and admin $ 760,797 $ 760,797
Other, net $ - $ -
----------------------------------------------------------
$ 760,797 $ - $ 760,797
----------------------------------------------------------
$ (756,245) $ - $ (756,245)
Income tax benefit $ - $ -
==========================================================
Net loss $ (756,245) $ - $ (756,245)
==========================================================
YEAR ENDED DECEMBER 31, 1996
Sales and revenues $ - $ -
Cost of sales $ - $ -
----------------------------------------------------------
Gross profit $ - $ - $ -
Other expense (income):
Selling, general and admin $ 854,559 $ 854,559
Other, net $ - $ -
----------------------------------------------------------
$ 854,559 $ - $ 854,559
----------------------------------------------------------
$ (854,559) $ - $ (854,559)
Income tax expense $ - $ -
==========================================================
Net loss $ (854,559) $ - $ (854,559)
==========================================================
Page 6
</TABLE>
<PAGE> 1
<TABLE>
<CAPTION>
Exhibit A
RIL RIL Rose Color, Rose Color,
(Consolidated) (Separate) SPS & JBW Adjustments SPS & JBW
<S> <C> <C> <C> <C> <C>
ASSETS
Cash and cash equivalents $ 155,015 $ 25,054 $ 129,961 $ 129,961
Accounts receivable, net $ 1,249,741 $ 5,140 $ 1,244,601 $ 1,244,601
Inventory $ 2,036,948 $ 2,036,948 $ 2,036,948
Other current assets $ 95,263 $ 14,217 $ 81,046 $ 81,046
---------------------------------------------------------------------------------------
Total current assets $ 3,536,967 $ 44,411 $ 3,492,556 $0 $ 3,492,556
Property and equipment, net $ 6,217,394 $ 10,839 $ 6,206,555 $ 6,206,555
Goodwill, net $ 2,121,968 $ 2,121,968 ($2,121,968) $ -
Investment in joint venture $ 305,516 $ 305,516 $ 305,516
Other $ 7,670 $ 7,333 $ 337 $ 337
=======================================================================================
Total assets $ 12,189,515 $ 62,583 $12,126,932 ($2,121,968) $10,004,964
=======================================================================================
LIABILITIES AND EQUITY
Accounts payable $ 1,051,212 $ 21,119 $ 1,030,093 $ 1,030,093
Accrued liabilities $ 111,128 $ 111,128 $ 111,128
Current maturities of long- $ - $ -
term obligations $ 104,012 $ 104,012 $ 104,012
---------------------------------------------------------------------------------------
Total current liabilities $ 1,266,352 $ 21,119 $ 1,245,233 $0 $ 1,245,233
Long-term obligations $ 64,431 $ 64,431 $ 64,431
Deferred income taxes $ 781,000 $ 781,000 $ 781,000
Note Payable $1,500,000 $ 1,500,000
Minority interest $ 3,835 $ 3,835 $ 3,835
Stockholders' equity:
Common stock $ 75,250 $ 75,250 $ - $ -
Paid-in capital $ 11,995,048 $ 1,764,214 $10,230,834 ($3,773,734) $ 6,457,100
Stock subscriptions receivable $ (1,798,000) $(1,798,000) $ - $ -
Deficit $ (151,766) $ (151,766) $151,766 $ -
Foreign currency translation $ - $ -
adjustment $ (46,635) $ (46,635) $ (46,635)
---------------------------------------------------------------------------------------
Total stockholders' equity $ 10,073,897 $ 41,464 $10,032,433 ($3,621,968) $ 6,410,465
=======================================================================================
$ 12,189,515 $ 62,583 $12,126,932 ($2,121,968) $10,004,964
=======================================================================================
</TABLE>
Rose International Ltd. was the owner of Rose Color, Inc. and SPS Alfachem, Inc.
prior to their sale to Chiralt Corporation and International Imaging, Inc. The
above schedule removes the nominal amounts which Rose International represents
of the consolidated total to arrive at the assets and liabilities of Rose Color
and SPS. An adjustment is made to these amounts to remove all goodwill which was
on the books of Rose Color and SPS, add a note payable in the amount of
$1,500,000, which is a part of the acquisition.
Page 7
<PAGE> 1
<TABLE>
<CAPTION>
Exhibit A
RIL RIL Rose Color, Rose Color,
Consolidated) (Separate) SPS & JBW Adjustments SPS & JBW
<S> <C> <C> <C> <C> <C>
THREE MONTHS ENDED JUNE 30, 1997
Sales and revenues $ 1,782,388 $ - $ 1,782,388 $ 1,782,388
Cost of sales $ 1,479,766 $ 1,479,766 $ 1,479,766
---------------------------------------------------------------------------------------
Gross profit $ 302,622 $ - $ 302,622 $ - $ 302,622
Other expense (income):
Selling, general and admin $ 414,287 $ 29,135 $ 385,152 $34,075 $ 351,077
Joint venture loss $ 33,631 $ 33,631 $ 33,631
Other, net $ 9,871 $ 3,664 $ 6,207 $ 6,207
---------------------------------------------------------------------------------------
$ 457,789 $ 32,799 $ 424,990 $ 34,075 $ 390,915
---------------------------------------------------------------------------------------
$ (155,167) $ (32,799) $ (122,368) $ (34,075) $ (88,293)
Income tax benefit $ (46,000) $ (2,000) $ (44,000) $ (44,000)
---------------------------------------------------------------------------------------
Net loss before minority interest $ (109,167) $ (30,799) $ (78,368) $ (34,075) $ (44,293)
Minority interest $ 1,100 $ 1,100 $ 1,100
=======================================================================================
Net loss $ (110,267) $ (30,799) $ (79,468) $ (34,075) $ (45,393)
=======================================================================================
YEAR ENDED DECEMBER 31, 1996
Sales and revenues $ 6,698,612 $ - $ 6,698,612 $ 6,698,612
Cost of sales $ 5,284,134 $ 5,284,134 $ 5,284,134
---------------------------------------------------------------------------------------
Gross profit $ 1,414,478 $ - $ 1,414,478 $ - $ 1,414,478
Other expense (income):
Selling, general and admin $ 1,202,791 $ 118,365 $ 1,084,426 $ 135,034 $ 949,392
Joint venture loss $ 34,956 $ 34,956 $ 34,956
Other, net $ (122,208) $ (154,448) $ 32,240 $ 32,240
---------------------------------------------------------------------------------------
$ 1,115,539 $ (36,083) $ 1,151,622 $ 135,034 $ 1,016,588
---------------------------------------------------------------------------------------
$ 298,939 $ 36,083 $ 262,856 $ (135,034) $ 397,890
Income tax expense $ 174,000 $ 14,000 $ 160,000 $ 160,000
---------------------------------------------------------------------------------------
Net income before minority interest $ 124,939 $ 22,083 $ 102,856 $ (135,034) $ 237,890
Minority interest $ (3,565) $ (3,565) $ (3,565)
=======================================================================================
Net loss $ 128,504 $ 22,083 $ 106,421 $ (135,034) $ 241,455
=======================================================================================
The adjustment represents the elimination of the amortization of goodwill, which is written off as a part of the acquisition.
Page 8
</TABLE>
<PAGE> 1
<TABLE>
<CAPTION>
Exhibit A
INTERNATIONAL IMAGING, INC.
STOCKHOLDERS' EQUITY
June 30, 1997 Pro Forma
Foreign
Additional Currency
Common Stock Paid-In Translation Accumulated
Shares Amount Capital Adjustment Deficit Total
------ ------ ---------- ----------- ----------- -----
<S> <C> <C> <C> <C> <C> <C>
Balance 6/30/97 - Chiralt Corporation 48,917,500 $20,000 $ 5,670 $(2,295,476) $(2,269,806)
Recapitalization (37,287,092) $(6,043) $(2,751,795) $ 2,757,838 $ -
---------------------------------------------------------------------------------------
11,630,408 $13,957 $(2,746,125) $ - $ 462,362 $(2,269,806)
Acquire Rose Color and SPS Alfachem 3,000,000 $ 3,600 $ 6,453,500 $ (46,635) $ 6,410,465
Acquire International Imaging, Inc. 1,446,684 $ 1,736 $ 2,731,608 $(2,757,838) $ (24,494)
=======================================================================================
Combined Stockholders' Equity 16,077,092 $ 19,293 $ 6,438,983 $ (46,635) $(2,295,476) $ 4,116,165
=======================================================================================
Page 9
</TABLE>
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