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) 24th day of January, 2002
SPECTRE INDUSTRIES INC.
(Exact name of registrant as specified in its charter)
Nevada
(State or other jurisdiction of incorporation)
0-30573
(Commission File Number)
91-2041523231612
(IRS Employer Identification No.)
#6 - 260 E. Esplanade, North Vancouver, British Columbia CANADA V7L 1A3
(Address of principal executive offices and Zip Code)
Registrant's telephone number, including area code (604) 984-0400
Item 2. Acquisition of Assets
<R>On September 4, 2001, the Registrant completed the acquisition of 54% of the issued and outstanding shares of Auto Photo Kiosk GmbH. ("APK"), a German corporation, pursuant to a partnership agreement (the "Agreement"), between the Registrant and the three other shareholders of APK (the "Shareholders), Joachim Zweifel, Gerhild Voigtlaender, both businesspersons resident in Germany, and Vending Concept GmbH, a private corporation located in Switzerland. Under the terms of the Agreement, the Registrant obtained its interest in APK in consideration for the payment of 27,000 Euros, or approximately $23,000.
The Registrant and the Shareholders incorporated APK for the purposes of providing for the purchase, sale, distribution and rental or operation of automated photo kiosks and related products in major public access areas, primarily in Germany.
The Registrant has also agreed to loan a total of up to 264,000 Euros to APK (the "Loan"), subject to pro-rata contributions by the APK Shareholders. The Loan is to bear interest at 1% per annum above prime at the European Central Bank, redeemable on six months notice no earlier than December 31, 2003. The Agreement and the Loan were ratified by the board of directors of the Registrant on January 24, 2002.</R>
Item 6. Resignation of Registrants Directors
Effective immediately, Frederick Posse has resigned as the Secretary of the Registrant and has resigned from the Registrant's Board of Directors.
Item 7. Financial Statements and Exhibits
Financial Statements of Business Acquired
<R>Audited consolidated financial statements for the year ended December 31, 2001 (incorporated by reference from our Annual Report on Form 10-KSB filed on April 16, 2002). </R>
Pro Forma Financial Information
<R>
SPECTRE INDUSTRIES, INC.
CONDENSED COMBINED PRO FORMA FINANCIAL STATEMENTS
Effective September 4, 2001, Spectre Industries, Inc. (the Company) purchased 54% of the equity of AutoPhotoKiosk GmbH. (APK), a German corporation, by being one of the original incorporators of APK. Per the partnership agreement the Company's investment in APK consisted of $27,000 Euros or $23,922 US Dollars.
The Company has also agreed to loan a total of $264,000 Euros or approximately $233,904 US Dollars. The loan bears an interest rate of 1% per annum above the prime rate at the European Central Bank, redeemable on six months notice no earlier than December 31, 2003.
SPECTRE INDUSTRIES, INC. |
||||||||||||||
CONDENSED COMBINED PRO FORMA BALANCE SHEET |
||||||||||||||
Spectre* |
APK |
Combined |
Pro Forma |
|||||||||||
as of |
as of |
Historical |
Pro Forma |
Combined |
||||||||||
Dec. 31, 2001 |
Dec. 31, 2001 |
Spectre & APK |
Adjustments |
Spectre & APK |
||||||||||
ASSETS |
||||||||||||||
Current Assets: |
||||||||||||||
Cash |
$309,268 |
$28,068 |
$337,336 |
$ - |
$337,336 |
|||||||||
Accounts receivable other |
103,953 |
- |
103,953 |
- |
103,953 |
|||||||||
Accounts receivable other - Related party |
4,506 |
20,320 |
24,826 |
- |
24,826 |
|||||||||
Other receuvable |
20,320 |
- |
20,320 |
- |
20,320 |
|||||||||
Fixed assets, net |
575 |
98,932 |
99,507 |
- |
99,507 |
|||||||||
Total Current Assets |
438,622 |
147,320 |
585,942 |
- |
585,942 |
|||||||||
Other Assets: |
||||||||||||||
Goodwill |
290,677 |
- |
290,677 |
290,677 |
||||||||||
Investment - APK |
23,922 |
- |
23,922 |
(23,922) |
(1) |
- |
||||||||
Note receivable - APK |
73,567 |
- |
73,567 |
(73,567) |
(2) |
- |
||||||||
Deposits |
- |
12,684 |
12,684 |
- |
12,684 |
|||||||||
Total Other Assets |
388,166 |
12,684 |
400,850 |
(97,489) |
303,361 |
|||||||||
TOTAL ASSETS |
$826,788 |
$160,004 |
$986,792 |
$(97,489) |
$889,303 |
|||||||||
LIABILITIES AND STOCKHOLDERS' |
||||||||||||||
EQUITY (DEFICIT) |
||||||||||||||
Current Liabilities: |
||||||||||||||
Accounts payable |
$3,356 |
$50,140 |
$53,496 |
$ - |
$ 53,496 |
|||||||||
Accounts payable - related party |
49,244 |
- |
49,244 |
- |
49,244 |
|||||||||
Accrued liabilities |
8,438 |
8,625 |
17,063 |
- |
17,063 |
|||||||||
Total Current Liabilities |
61,038 |
58,765 |
119,803 |
- |
119,803 |
|||||||||
Long-Term Liabilities: |
||||||||||||||
Notes payable - Related Party |
67,033 |
23,116 |
90,149 |
- |
90,149 |
|||||||||
Notes Payable - Spectre Industries, Inc. |
- |
73,567 |
73,567 |
(73,567) |
(2) |
- |
||||||||
Total Long-Term Liabilities |
67,033 |
96,683 |
163,716 |
(73,567) |
90,149 |
|||||||||
Total Liabilities |
128,071 |
155,448 |
283,519 |
(73,567) |
209,952 |
|||||||||
Minority Interest: |
- |
- |
- |
2,095 |
(3)(4)(5) |
2,095 |
||||||||
Stockholders' Equity: |
||||||||||||||
Common stock |
20,655 |
44,300 |
64,955 |
(44,300) |
(1)(3) |
20,655 |
||||||||
Additional paid-in capital |
11,893,095 |
- |
11,893,095 |
- |
11,893,095 |
|||||||||
Currency adjustment |
(1,108) |
497 |
(611) |
(228) |
(5) |
(839) |
||||||||
Retained deficit |
(11,213,925) |
(40,241) |
(11,254,166) |
18,511 |
(4) |
(11,235,655) |
||||||||
Total Stockholders' Equity |
698,717 |
4,556 |
703,273 |
(26,017) |
677,256 |
|||||||||
TOTAL LIABILITIES AND |
||||||||||||||
STOCKHOLDERS' EQUITY (DEFICIT) |
$826,788 |
$160,004 |
$986,792 |
$(97,489) |
$889,303 |
|||||||||
____________________________ |
||||||||||||||
* |
Reflects Spectre Industries, Inc.'s consolidated balances without APK |
|||||||||||||
(1) |
Reflects the elimination of Spectre Industries, Inc.'s investment in APK |
|||||||||||||
(2) |
Reflects the elimination of Spectre Industries, Inc.'s loan to APK |
|||||||||||||
(3) |
Reflects the minority interest in the equity of APK |
|||||||||||||
(4) |
Reflects the minority interest in APK's net loss for the year ended December 31, 2001 |
|||||||||||||
(5) |
Reflects the minorty interest in the currency translation from APK |
SPECTRE INDUSTRIES, INC. |
|||||||||||||
CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS |
|||||||||||||
Spectre Ind., Inc.* |
APK |
Pro Forma |
|||||||||||
Year Ended |
Year Ended |
Combined |
Pro Forma |
Combined |
|||||||||
Dec. 31, 2001 |
Dec. 31, 2001 |
Spectre & APK |
Adjustments |
Spectre & APK |
|||||||||
REVENUES |
$ 1,079,500 |
$ 3,158 |
$ 1,082,658 |
$ - |
$1,082,658 |
||||||||
COST OF SALES |
969,172 |
4,235 |
973,407 |
- |
973,407 |
||||||||
Gross Margin |
110,328.00 |
(1,077) |
109,251 |
- |
109,251 |
||||||||
EXPENSES |
|||||||||||||
Depreciation |
97,206 |
2,650 |
99,856 |
- |
99,856 |
||||||||
Consulting |
216,948 |
- |
216,948 |
216,948 |
|||||||||
General and administrative expenses |
292,260 |
36,514 |
328,774 |
- |
328,774 |
||||||||
Total Expenses |
606,414 |
39,164 |
645,578 |
- |
645,578 |
||||||||
Loss from Operations |
(496,086) |
(40,241) |
(536,327) |
- |
(536,327) |
||||||||
OTHER INCOME (EXPENSE) |
|||||||||||||
Other income |
4,178 |
- |
4,178 |
- |
4,178 |
||||||||
Interest expense |
(7,177) |
- |
(7,177) |
- |
(7,177) |
||||||||
Interest income |
19,877 |
- |
19,877 |
- |
19,877 |
||||||||
Total Other Income (Expense) |
16,878 |
- |
16,878 |
- |
16,878 |
||||||||
LOSS BEFORE MINORITY INTEREST IN |
|||||||||||||
LOSS OF CONSOLIDATED SUBSIDIARIES |
(479,208) |
(40,241) |
(519,449) |
- |
(519,449) |
||||||||
Minority interest in loss of consolidated subsidiaries |
- |
- |
- |
18,511 |
18,511 |
||||||||
NET LOSS |
(479,208) |
(40,241) |
(519,449) |
- |
(500,938) |
||||||||
OTHER COMPREHENSIVE LOSS |
|||||||||||||
Foreign currency translationadjustments |
(413) |
496 |
83 |
- |
83 |
||||||||
Total Other Comprehensive Loss |
(413) |
496 |
83 |
- |
83 |
||||||||
TOTAL OTHER COMPREHENSIVE LOSS |
$ (479,621) |
$ (39,745) |
$ (519,366) |
$ - |
$(500,855) |
||||||||
Basic loss per share: |
|||||||||||||
Basic loss per share |
$ (0.02) |
$ (0.91) |
$ (0.03) |
$ (0.02) |
|||||||||
Weighted average shares outstanding |
20,655,860 |
44,300 |
20,700,160 |
20,655,860 |
Exhibits
10.1 Partnership Agreement, effective date January 24, 2002 between Spectre Industries Inc., Joachim Zweifel, Gerhild Voigtlaender, and Vending Concept GmbH (incorporated by reference on our Form 8-K filed on February 12, 2002).
10.2 Loan Agreement, effective date January 24, 2002 between Spectre Industries Inc. and Auto Photo Kiosk GmbH. (incorporated by reference on our Form 8-K filed on February 12, 2002). </R>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Spectre Industries Inc.
/s/ Ian S. Grant
Ian S. Grant, President & Chief Executive Officer
Date: April 22, 2002