UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No.____ )*
Algorhythm Technologies Corporation
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
015868 10 2
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(CUSIP Number)
David Bawarsky, 4330 NW 207th Drive, Miami, FL 33055 (305)625-2332
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(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
July 18, 1997
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [_].
Check the following box if a fee is being paid with the statement [ ]. (A fee is
not required only if the reporting person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class).
(See Rule 13d-7.)
Note: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d-1(a) for other parties to whom copies are to be
sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes.)
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<TABLE>
<CAPTION>
SCHEDULE 13D
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CUSIP No. 015868 10 2 Page 2 of 7 Pages
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<S> <C>
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1 | NAME OF REPORTING PERSON
| S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
|
| Telephonetics International, Inc.
|
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2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)|_|
| (b)|_|
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3 | SEC USE ONLY
|
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4 | SOURCE OF FUNDS*
|
| OO, WC
|
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5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)
|
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6 | CITIZENSHIP OR PLACE OF ORGANIZATION
|
| FL
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Number of | 7 SOLE VOTING POWER 5,677,489 Shares
Shares |
Beneficially |------------------------------------------------------------------------------
Owned by | 8 SHARED VOTING POWER
Each |
Reporting |------------------------------------------------------------------------------
Person | 9 SOLE DISPOSITIVE POWER 5,677,489 Shares
With |
| |------------------------------------------------------------------------------
| 10 SHARED DISPOSITIVE POWER
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11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
| 5,677,489 Shares
|
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12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
|
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13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
| 59.2%
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14 | TYPE OF REPORTING PERSON*
|
| CO
|
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
<PAGE>
SCHEDULE 13D
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CUSIP No. 015868 10 2 Page 3 of 7 Pages
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<S> <C>
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1 | NAME OF REPORTING PERSON
| S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
|
| David Bawarsky
|
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2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)|_|
| (b)|_|
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3 | SEC USE ONLY
|
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4 | SOURCE OF FUNDS*
|
| OO
|
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5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)
|
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6 | CITIZENSHIP OR PLACE OF ORGANIZATION
|
| US
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Number of | 7 SOLE VOTING POWER 1,125,889 Shares
Shares |
Beneficially |------------------------------------------------------------------------------
Owned by | 8 SHARED VOTING POWER 5,677,489 Shares
Each |
Reporting |------------------------------------------------------------------------------
Person | 9 SOLE DISPOSITIVE POWER 1,125,889 Shares
With |
| |------------------------------------------------------------------------------
| 10 SHARED DISPOSITIVE POWER 5,677,489 Shares
|
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11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
| 6,803,378 Shares
|
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12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
|
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13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
| 68.69%
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14 | TYPE OF REPORTING PERSON*
|
| IN
|
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<PAGE>
SCHEDULE 13D
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CUSIP No. 015868 10 2 Page 4 of 7 Pages
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<S> <C>
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1 | NAME OF REPORTING PERSON
| S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
|
| Alan J. Kvares
|
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2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)|_|
| (b)|_|
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3 | SEC USE ONLY
|
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4 | SOURCE OF FUNDS*
|
| N/A
|
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5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)
|
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6 | CITIZENSHIP OR PLACE OF ORGANIZATION
|
| US
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Number of | 7 SOLE VOTING POWER
Shares |
Beneficially |------------------------------------------------------------------------------
Owned by | 8 SHARED VOTING POWER 5,677,489 Shares
Each |
Reporting |------------------------------------------------------------------------------
Person | 9 SOLE DISPOSITIVE POWER
With |
| |------------------------------------------------------------------------------
| 10 SHARED DISPOSITIVE POWER 5,677,489 Shares
|
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11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
| 5,677,489 Shares
|
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12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
|
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13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
| 59.1%
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14 | TYPE OF REPORTING PERSON*
|
| IN
|
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</TABLE>
<PAGE>
CUSIP No. 015868 10 2 Page 5 of 7 Pages
ITEM 1. SECURITY AND ISSUER
Common stock, Algorhythm Technologies Corporation, (formerly known as
DigiMedia USA, Inc. and thereafter Nitros Franchise Corporation) 4330 NW 207th
Drive, Miami, FL 33055.
ITEM 2. IDENTITY AND BACKGROUND
a. Telephonetics International, Inc. A Florida corporation
b. 4330 NW 207th Drive, Miami, FL 33055.
c. Principal business: develops, markets and manufactures products for
audio, video and multimedia related industries.
d. none
e. none
a. David Bawarsky
b. 6184 Vista Linda Lane, Boca Raton, FL 33433
c. President and CEO of Issuer, 4330 NW 207th Drive, Miami, FL 33055
President and along with Alan J. Kvares controlling shareholders of
Telephonetics International, Inc.
d. no
e. no
f. U.S.
a. Alan J. Kvares
b. 4330 NW 207th Drive, Miami, FL 33055
c. CEO and along with David Bawarsky controlling shareholders of
Telephonetics International. Mr. Kvares is also the Secretary of the
Issuer.
d. no
e. no
f. U.S.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
Telephonetics International, Inc. 4,675,889 were acquired from David
Bawarsky (2,600,000 shares) and from Alan J. Kvares (2,075,889) in
exchange for 400,000 shares of Telephonetics International Inc. (200,000
shares to Mr. Bawarsky and to Mr. Kvares). $1,038 was paid out of working
capital for 1,600 shares. 1,000,000 shares were issued to Telephonetics
International Inc. for its subsidiary, Algorhythm Technology, Inc.
David Bawarsky: The shares listed in item 5c were received as a gift.
ITEM 4. PURPOSE OF THE TRANSACTION
The shares were acquired for investment and Telephonetics acquired the
controlling interest represented by the shares of Mr. Bawarsky and Mr.
Kvares though there was no change in actual control as Mr. Bawarsky and
Mr. Kvares are the President and CEO respectively as well as the
controlling shareholders of Telephonetics International, Inc. There was no
change in the management of the Issuer.
<PAGE>
CUSIP No. 015868 10 2 Page 6 of 7 Pages
a. Additional shares may be purchased for investment.
b. no
c. no
d. no
e. no
f. no
g. no
h. no
i. no
j. no
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
a. Telephonetics International, Inc.: 5,677,489 shares - 59.1%
David Bawarsky: 6,803,378 - 68.69% This includes 5,677,489 shares
owned by Telephonetics International, Inc. of whom Mr. Bawarsky is
the President, director and along with Mr. Kvares controlling
shareholders. It also includes options to purchase 300,000 shares.
Alan J. Kvares: 5,677,489 shares - 59.1% which are owned by
Telephonetics International, Inc. of whom Mr. Kvares is CEO,
director and along with Mr. Bawarsky controlling shareholders.
b. Telphonetics International has sole voting and sole dispositive
power of 5,677,489 shares.
David Bawarsky has sole voting and dispositive over 1,125,889 shares
and shared voting and dispositive power of 5,677,489 shares owned by
Telephonetics International, Inc.
Alan J. Kvares has shared voting and dispositive power of 5,677,489
shares owned by Telephonetics International, Inc.
c. Telephonetics International, Inc.: On July 18, 1997 it obtained
4,675,889 shares in an exchange of shares with David Bawarsky and
Alan J. Kvares as set forth in item 3. On July 18, 1997 it purchased
1,000 shares at a price of $.625 per share in the open market. On
July 22, 1997 it purchased 600 shares at a price of $.685 per share
in the open market. On July 23, 1997 it received 1,000,000 shares in
exchange for its subsidiary, Algorhythm Technology, Inc.
David Bawarsky: On July 18, 1997 Mr. Bawarsky received 1,000,000
shares from Jason Sherman as a gift.
d. not applicable
e. not applicable
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE ISSUER
See answer to item 5.
<PAGE>
CUSIP No. 015868 10 2 Page 7 of 7 Pages
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
None
SIGNATURE
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After reasonable inquiry and to the best of the undersigned's knowledge and
belief, the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Date: August 1, 1997 TELEPHONETICS INTERNATIONAL, INC.
By: /s/ David Bawarsky
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Name: David Bawarsky, President
By: /s/ David Bawarsky
-----------------------------------
Name: David Bawarsky
By: /s/ Alan J. Kvares
-----------------------------------
Name: Alan J. Kvares
