SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
October 31, 1997
Date of Report (Date of earliest event reported)
ELECTRONICS COMMUNICATIONS CORP.
(Exact name of Registrant as specified in its Charter)
Delaware 1-13764 11-2649088
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(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) Number)
10 Plog Road, Fairfield, New Jersey 07004
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(Address of principal executive offices) (Zip Code)
(201) 808-8862
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Registrant's telephone number, including area code
None
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
During the month of October 1997, an aggregate $2,300,000 in principal
amount of the registrants 8% Cumulative Convertible Debentures were
converted into an aggregate 2,248,114 shares of common stock, $.60 par
value. Also during the month of October 1997, former officers and
directors and a current director converted $272,360 of notes payable
(of which $162,360 was payable at September 30, 1997) into 209,508
shares of common stock. As a result of such conversion, the
registrant's total stockholders equity increased from a negative
($244,399) at September 30, 1997 to a positive $2,217,969 on a proforma
basis.
Item 7. Financial Statements.
Unaudited proforma balance sheet at Septembe 30, 1997 with footnotes.
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ELECTRONICS COMMUNICATIONS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
PROFORMA
SEPTEMBER 30, SEPTEMBER 30,
1997 1997
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(UNAUDITED) (UNAUDITED)
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CURRENT ASSETS
Cash ........................................................... $ 127,725 $ 127,725
Accounts Receivable
(Net of $466,774 Allowance for Doubtful
Accounts at September 30, 1997 ............................. 339,197 339,197
Inventories .................................................... 63,351 63,351
Loan Receivable ................................................ 114,560 114,560
Paging & Two-Way Radio Assets Held for Sale .................... 3,117,768 3,117,768
Prepaid Expenses ............................................... 109,202 109,202
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TOTAL CURRENT ASSETS .............................. 3,871,803 3,871,803
============ ============
PROPERTY AND EQUIPMENT
Property and Equipment ......................................... 415,221 415,221
Accumulated Depreciation ....................................... (220,419) (220,419)
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NET PROPERTY AND EQUIPMENT .............................. 194,802 194,802
============ ============
OTHER ASSETS
PCS Licenses .................................................. 21,188,375 21,188,375
Marketing Service Contract .................................... 673,459 673,459
Deferred Debenture Costs ...................................... 325,000 325,000
Deferred PCS License Costs .................................... 367,628 367,628
Security Deposits and Other Assets ............................ 139,850 139,850
Deferred Registration Costs ................................... 75,418 75,418
Deferred PCS Costs............................................. 24,616 24,616
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TOTAL OTHER ASSETS .............................. 22,794,346 22,794,346
============ ============
TOTAL ASSETS .............................. $ 26,860,951 $ 26,860,951
============ ============
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ELECTRONICS COMMUNICATIONS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
PROFORMA
SEPTEMBER 30 SEPTEMBER 30,
1997 1997
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(UNAUDITED) (UNAUDITED)
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CURRENT LIABILITIES
Accounts Payable ............................................... $ 3,103,605 $ 3,103,605
Notes Payable - Other .......................................... 176,621 176,621
Current Portion of Bank Note ................................... 90,224 90,224
Current Portion of Obligations Under Capital Leases ............ 837,165 837,165
Current Portion of Long Term Debt .............................. 46,277 46,277
Accrued Expenses ............................................... 227,491 227,491
Accrued Interest ............................................... 1,440,673 1,440,673
Customer Deposits .............................................. 22,854 22,854
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TOTAL CURRENT LIABILITIES .............................. 5,944,910 5,944,910
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LONG TERM LIABILITIES
Notes Payable to Stockholders .................................. 0 162,360
Notes Payable................................................... 16,792,258 16,792,258
8% Convertible Debentures ...................................... 1,466,111 3,766,111
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TOTAL LONG TERM LIABILITIES ...................................... 18,258,369 20,720,729
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Minority Interest ................................................ 439,703 439,703
STOCKHOLDERS' EQUITY
Preferred Stock, par value $.01 per share, 8,000,000 authorized,
4,000,000 Series B Non-Voting Convertible Shares issued and
outstanding at September 30, 1997............................ 40,000 40,000
Common Stock, par value $.60 per share, 40,000,000
authorized, issued and outstanding
1,065,765 at September 30, 1997.............................. 2,114,033 639,460
Additional Paid-In Capital ..................................... 21,515,250 20,527,463
Retained Deficit................................................ (15,445,613) (15,445,613)
Subscription Receivable ........................................ (6,000,000) (6,000,000)
Notes Receivable arising from Common Stock Purchase
Warrants Sold .................................................. (5,701) (5,701)
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TOTAL STOCKHOLDERS' EQUITY .............................. 2,217,969 (244,391)
============ ============
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ....................... $ 26,860,951 $ 26,860,951
============ ============
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NOTE - 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The registrant herein incorporates the footnotes pertaining to its balance sheet
from its quarterly report as amended on Form 10-QSB/A for the quarter ended
September 30, 1997.
NOTE - 2 DEBENTURE CONVERSION
During October 1997, investors in the Regulation S Private Placement Offering
converted $2,300,000 of Convertible Debentures into 2,248,114 shares of common
stock.
NOTE - 3 NOTES PAYABLE TO STOCKHOLDERS
During October 1997 former officers and directors and a current director
converted $272,360 of notes payable (of which $162,360 was payable at September
30, 1997) into 209,508 shares of common stock.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has caused this report to be signed on its behalf by the
undersigned thereto duly authorized.
Date: December 4, 1997 By: /s/Joseph Rosio
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Name: Joseph Rosio
Title: President
