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As filed with the Securities and Exchange Commission on March 27, 1997
Registration No. 33-
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8
Registration Statement
Under
The Securities Act of 1933
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USA TECHNOLOGIES, INC.
(Exact Name of Registrant as Specified in its Charter)
Pennsylvania 7359 23-2679963
(State or other (Primary Standard Industrial (I.R.S. employer
jurisdiction of Classification Code Number) Identification No.)
incorporation or
organization)
200 Plant Avenue
Wayne, Pennsylvania 19087
(Address of principal executive offices and zip code)
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JEROME M. WENGER CONSULTING AGREEMENT
(full title of the plan)
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George R. Jensen, Jr.
President and Chief Executive Officer
USA Technologies, Inc.
200 Plant Avenue
Wayne, Pennsylvania 19087
(610) 989-0340
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
Copies to:
Douglas M. Lurio, Esquire
Lurio & Associates
1760 Market Street, Suite 1300
Philadelphia, PA 19103
(215) 665-9300
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CALCULATION OF REGISTRATION FEE
Title of Proposed Proposed
Securities Amount Maximum Maximum Amount of
to be to be Offering Price Aggregate Registration
Offered Registered Per share (1) Offering Price (1) Fee(1)
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Common Stock 160,000 $ .36 $ 57,600 $ 17.45
(1) Estimated solely for purposes of calculating the registration fee.
Pursuant to Rule 457(h), the offering price is based upon the average
of the bid and asked price for the Common Stock on the OTC Electronic
Bulletin Board on March 24, 1997. The registration fee represents
the minimum prescribed fee.
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PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3. Incorporation of Documents by Reference
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The documents listed in (a) through (d) below are incorporated by
reference in the Registration Statement and made a part hereof. All documents
subsequently filed by the Registrant pursuant to Section 13(a), 13(c), 14 and
15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
prior to the filing of a post-effective amendment to this Registration Statement
which indicates that all securities offered hereby have been sold or which
deregisters all securities then remaining unsold, shall be deemed to be
incorporated by reference in this Registration Statement and to be part hereof
from the date of filing of such documents.
(a) The Registrant's annual report on Form 10-KSB for the fiscal year
ended June 30, 1996; and
(b) The Registrant's Form 10-QSB Quarterly Report for the quarterly
period ended September 30, 1996; and
(c) The Registrant's current report on Form 8-K filed on December 19,
1996.
(d) The Registrant's Form 10-QSB Quarterly Report for the quarterly
period ended December 31, 1996.
Item 4. Description of Securities
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The Company is authorized to issue up to 55,000,000 shares of Common
Stock, no par value ("Common Stock"), and 1,200,000 shares of undesignated
Preferred Stock, all of which has been designated Series A Convertible Preferred
Stock, no par value ("Preferred Stock").
As of March 24, 1997, there were 26,648,144 shares of Common Stock
issued and outstanding.
The foregoing amount does not reflect shares of Common Stock issuable
by the Company upon the conversion of the Preferred Stock or any accrued and
unpaid dividends thereon. As of March 24, 1997, 803,995 shares of Preferred
Stock were issued and outstanding and are convertible into 9,647,940 shares of
Common Stock through December 31, 1997 and 8,039,950 shares of Common Stock
thereafter. As of March 24, 1997, there were $2,952,962 of accrued and unpaid
dividends on the Preferred Stock which are convertible at the rate of $.83 per
share of Common Stock through December 31, 1997 and at the rate of $1.00 per
share of Common Stock thereafter. As of March 24, 1997, a total of 22,205 shares
of Preferred Stock have been converted into 222,050 shares of Common Stock and
accrued and unpaid dividends thereon have been converted into 46,494 shares of
Common Stock.
The foregoing amount also does not include the Common Stock issuable
upon the exercise of the remaining 1,414,000 1995 Warrants, 1,866,000 1996
Warrants and 400,000 1996-B Warrants issued and outstanding as of March 24,
1997.
The foregoing amount also does not include the Common Stock issuable
upon the exercise of the outstanding stock options or purchase rights to acquire
Common Stock. As of March 24, 1997, the Company has issued to its Directors,
executive officers, consultants, and employees options to acquire up to 221,000
shares of Common Stock at $.65 per share, options to acquire up to 110,000
shares of Common Stock at $.50 per share, options to acquire up to 700,000
shares of Common Stock at $.45 per share, options to acquire up to 2,565,000
shares of Common Stock at $.25 per share, and options to acquire up to 220,000
shares of Common Stock at $.05 per share. The Company has also issued purchase
rights to acquire up to 157,300 shares of Common Stock at $1.00 per share. All
options to purchase Common Stock were granted at prices at or above the market
value on the date of the grant.
The holder of each share of Common Stock is entitled to one vote on all
matters submitted to a vote of the shareholders of the Company, including the
election of directors. There is no cumulative voting for directors.
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The holders of Common Stock are entitled to receive such dividends as
the Board of Directors may from time to time declare out of funds legally
available for payment of dividends. No dividends may be paid on the Common Stock
until all accumulated and unpaid cumulative dividends on the Series A Preferred
Stock have been paid or converted. Upon any liquidation, dissolution or winding
up of the Company, holders of shares of Common Stock are entitled to receive pro
rata all assets of the Company available for distribution, subject to the
liquidation preference of the Series A Preferred Stock of $10.00 per share and
any unpaid and accumulated dividends on the Series A Preferred Stock.
Shareholders of the Company do not have any preemptive rights to subscribe for
or purchase shares, obligations, warrants, or other securities of the Company.
Item 5. Interests of Named Experts and Counsel
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Not Applicable.
Item 6. Indemnification of Directors and Officers
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Section 1746 of the Pennsylvania Business Corporation Law of 1988, as
amended ("BCL"), authorizes a Pennsylvania corporation to indemnify its
officers, directors, employees and agents under certain circumstances against
expenses and liabilities incurred in legal proceedings involving such persons
because of their holding or having held such positions with the Company and to
purchase and maintain insurance of such indemnification. The Company's By-laws
substantively provide that the Company will indemnify its officers, directors,
employees and agents to the fullest extent provided by Section 1746 of the BCL.
Section 1713 of the BCL permits a Pennsylvania corporation, by so
providing in its By-laws, to eliminate the personal liability of a director for
monetary damages for any action taken unless the director has breached or failed
to perform the duties of his office and the breach or failure constitutes
self-dealing, willful misconduct or recklessness. In addition, no such
limitation of liability is available with respect to the responsibility or
liability of a director pursuant to any criminal statute or for the payment of
taxes pursuant to Federal, state or local law. The Company's By-laws eliminate
the personal liability of the directors to the fullest extent permitted by
Section 1713 of the BCL.
Item 7. Exemption from Registration Claimed
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Not applicable.
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Item 8. Exhibits
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The following Exhibits are filed as part of this Registration
Statement:
5 Opinion of Lurio & Associates
23.1 Consent of Lurio & Associates (included in the opinion filed as
Exhibit 5 hereto)
23.2 Consent of Ernst & Young LLP, Independent Auditors
28 Consulting Agreement between Jerome M. Wenger and USA Technologies,
Inc. dated December 1, 1996
Item 9. Undertakings
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The undersigned Registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made,
a post-effective amendment to this Registration Statement:
(i) to include any prospectus required by Section 10(a)(3) of the
Securities Act of 1933;
(ii) to reflect in the prospectus any facts or events arising after
the effective date of the registration statement (or most recent post-effective
amendment thereof) which, individually or together, represent a fundamental
change in the information in the registration statement; and
(iii) to include any material information with respect to the plan
of distribution not previously disclosed in the registration statement or any
material change to such information in the registration statement.
Except that, subparagraph (i) and (ii) of this paragraph do not apply
provided that the information required in a post-effective amendment is
incorporated by reference from periodic reports filed by the issuer under the
Securities Exchange Act of 1934.
(2) That for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be treated as a
new registration statement relating to the securities offered herein, and shall
treat the offering of such securities at that time as the initial bona fide
offering thereof.
(3) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the termination of
the offering.
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(4) That for purposes of determining any liability under the Securities
Act of 1933, each filing of the registrant's annual report pursuant to Section
13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where
applicable, each filing of an employee benefit plan's annual report pursuant to
Section 15(d) of the Securities Exchange Act 1934) that is incorporated by
reference in the registration statement shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering
thereof.
(5) Insofar as indemnification for liabilities arising under the
Securities Act of 1933, as amended, may be permitted to directors, officers and
controlling persons of the Registrant pursuant to the foregoing provisions, or
otherwise, the Registrant has been advised that in the opinion of the Securities
and Exchange Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the event that a claim
for indemnification against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by a director, officer or controlling
person of the Registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the Registrant will, unless in
the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will
be governed by the final adjudication of such issue.
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SIGNATURES
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Pursuant to the requirements of the Securities Act of 1933, as amended,
the Registrant certifies that it has reasonable grounds to believe that it meets
all of the requirements for filing Form S-8 and has duly caused this
Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in Wayne, Pennsylvania, on March 27, 1997.
USA TECHNOLOGIES, INC.
By: /s/ George R. Jensen, Jr.
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George R. Jensen, Jr.,
President and Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the date indicated.
Signature Title Date
--------- ----- ----
/s/ George R. Jensen, Jr. Chairman of the Board, March 27, 1997
- ----------------------------- President and Chief
George R. Jensen, Jr. Executive Officer,
(Principal
Executive Officer)
/s/ Stephen P. Herbert Vice President, March 27, 1997
- ----------------------------- Director
Stephen P. Herbert
/s/ Keith L. Sterling Vice President, March 27, 1997
- ----------------------------- Director
Keith L. Sterling
/s/ Leland P. Maxwell
- ----------------------------- Vice President, Chief March 27, 1997
Leland P. Maxwell Financial Officer
- ----------------------------- Director March , 1997
William W. Sellers
/s/ Peter G. Kapourelos Director March 27, 1997
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Peter G. Kapourelos
/s/ Henry B. duPont Smith Director March 27, 1997
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Henry B. duPont Smith
/s/William Van Alen, Jr. Director March 27, 1997
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William L. Van Alen, Jr.
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EXHIBIT INDEX
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Exhibit No. Description Page No.
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5 Opinion of Lurio & Associates
23.1 Consent of Lurio & Associates
(included in the opinion filed
as Exhibit 5 hereto)
23.2 Consent of Ernst & Young LLP,
Independent Auditors
28 Consulting Agreement between
Jerome M. Wenger and USA
Technologies dated December
1, 1996
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EXHIBIT 5
March 27, 1997
USA Technologies, Inc.
200 Plant Avenue
Wayne, PA 19087
Attn: Mr. George R. Jensen, Jr., President
Re: USA Technologies, Inc. -
Registration Statement on Form S-8
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Dear Mr. Jensen:
We have acted as counsel to USA Technologies, Inc., a Pennsylvania
corporation (the "Company"), in connection with a Registration Statement on Form
S-8, filed with the Securities and Exchange Commission on the date hereof (the
"Registration Statement"). The Registration Statement covers 160,000 shares of
Common Stock of the Company issuable to Jerome M. Wenger pursuant to a
Consulting Agreement between the Company and Jerome M. Wenger dated December 1,
1996 (the "Consulting Agreement").
In rendering this opinion, we have examined (i) the Articles of
Incorporation, as amended, and By-laws of the Company; (ii) the resolutions of
the Board of Directors evidencing the corporate proceedings taken by the Company
to authorize the issuance of the Common Stock pursuant to the Registration
Statement; (iii) the Registration Statement (including all exhibits thereto);
(iv) The Consulting Agreement; and (v) such other documents as we have deemed
appropriate or necessary as a basis for the opinion hereinafter expressed.
In rendering the opinion expressed below, we assumed the authenticity
of all documents and records examined, the conformity with the original
documents of all documents submitted to us as copies and the genuineness of all
signatures.
Based upon and subject to the foregoing, and such legal considerations
as we deem relevant, we are of the opinion that, when sold as contemplated by
the Registration Statement and the Consulting Agreement, the Common Stock will
be legally issued, fully paid and nonassessable.
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USA Technologies, Inc.
March 27, 1997
Page 2
We hereby consent to the filing of this opinion as an Exhibit to the
Registration Statement.
Sincerely,
/s/ LURIO & ASSOCIATES
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LURIO & ASSOCIATES
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EXHIBIT 23.2
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement (Form
S-8 No. 33-00000) pertaining to the registration of 160,000 shares of Common
Stock of USA Technologies, Inc. of our report dated August 9, 1996, except for
Note 12 as to which the date is September 10, 1996 with respect to the financial
statements of USA Technologies, Inc. included in its Annual Report (Form 10-KSB)
for the year ended June 30, 1996, filed with the Securities and Exchange
Commission.
/s/ Ernst & Young LLP
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Ernst & Young LLP
Philadelphia, Pennsylvania
March 27, 1997
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EXHIBIT 28
December 1, 1996
Mr. Jerome M. Wenger
The Next Super Stock
Two Wisconsin Circle, Suite 700
Chevy Chase, Maryland 20815
Dear Jerry:
This is to acknowledge and confirm the following terms of our
Consulting Agreement. We are very pleased to be a client of yours again.
(1) You are actively involved in providing financial relations,
consulting and advisory services to clients.
(2) The Company hereby engages you and you hereby agree to render
financial public relations, consulting and advisory services to the Company,
including promoting the Company to an established base of radio listeners around
the country. It is understood and agreed that none of your services shall be in
connection with the offer or sale of any securities of the Company in a capital
raising transaction.
(3) Compensation
(a) The Company shall issue to you in consideration for providing
the financial, public relations, consulting and advisory services set forth
herein a total of 160,000 shares of fully vested, nonassessable, free trading
Common Stock of the Company. Upon the effective date of the registration
statement described in Paragraph 3(b) below, the Company shall issue such stock
to you as follows:
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December 31, 1996 (or, if later, the date of filing
of the Form S-8 Registration Statement) 40,000
January 31, 1997 (or, if later, the date of filing
of the Form S-8 Registration Statement) 40,000
February 28, 1997 (or, if later, the date of filing 40,000
of the Form S-8 Registration Statement)
March 31, 1997 40,000
These issuances of the Company's stock shall be the only consideration that you
are entitled to under this Consulting Agreement.
(b) Promptly after the date of this Consulting Agreement, the
Company will cause a registration statement on Form S-8 to be filed with the
Securities and Exchange Commission for the purpose of registering 160,000 shares
of Common Stock of the Company issuable to you pursuant to Paragraph 3(a) above.
(4) This Consulting Agreement shall be for a term of four months
commencing December 1, 1996 and terminating March 31, 1997. Any renewal or
extension of this Consulting Agreement shall be upon a new written agreement
signed by each of the parties.
(5) You will not directly or indirectly disclose to any other person,
firm or corporation, nor use for your own benefit during or after the term of
this Consulting Agreement, any trade secrets or other information designated as
confidential by the Company which is acquired by you in the course of performing
services hereunder. Trade secrets can include, but are not limited to, products
or services under development, production methods and processes, sources of
supply, customer lists, marketing plans, information concerning the filing or
pendency of patent applications and information concerning the issuance of any
securities of the Company.
(6) In performing your duties as set forth in this Consulting
Agreement, you shall abide by all applicable laws, including federal and state
securities laws, and shall make all disclosures required by such laws, including
disclosures required as a result of you entering into this Consulting Agreement
with the Company and in connection with your radio broadcasts.
(7) You hereby represent that you have obtained all licenses or
registrations required in order to perform the services set forth in the
Consulting Agreement. You also hereby represent that you are not prohibited from
entering into this Consulting Agreement or from performing your obligations
hereunder by any law, regulation, contract, decree, order or agreement.
(8) You and the Company hereby acknowledge that you are an independent
contractor. You shall not hold yourself out as, nor shall you take any action
from which others might infer, that you are a partner, agent or joint venturer
of the Company.
(9) This Consulting Agreement sets forth the entire understanding of
the parties relating to the subject matter hereof, and supersedes and cancels
any prior communications, understandings and agreements between the parties.
This Consulting Agreement cannot be modified or changed, nor can any of its
provisions be waived, except by written agreement signed by all parties.
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(10) This Consulting Agreement shall be governed by the laws of the
Commonwealth of Pennsylvania. Any dispute arising out of this Consulting
Agreement shall be adjudicated in the courts of the Commonwealth of Pennsylvania
or in the federal courts located within the Commonwealth of Pennsylvania.
Jerry, please indicate your acceptance of the terms of this Consulting
Agreement by signing and dating below where indicated and returning it to me.
USA TECHNOLOGIES, INC.
By: /s/ George R. Jensen, Jr.
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George R. Jensen, Jr.
President and Chief Executive Officer
ACCEPTED:
/s/ Jerome M. Wenger
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Jerome Maxwell Wenger
