SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Amendment No. 1 to
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): MAY 3, 2001
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INNOFONE.COM, INC.
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(Exact name of registrant as specified in its charter)
NEVADA
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(State or other jurisdiction of incorporation)
0-31949 98-020313
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(Commission File Number) (I.R.S. Employer Identification No.)
600 NORTH PINE ISLAND ROAD, SUITE 450, PLANTATION, FLORIDA 33324
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (954) 315-0341
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(NOT APPLICABLE)
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(Former name or former address, if changed since last report)
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS; and
ITEM 5. OTHER EVENTS
On May 9, 2001, Innofone.com, Inc. (the "Company") filed a current
report on Form 8-K announcing that its operating subsidiary, Innofone Canada
Inc. (the "Subsidiary"), had been adjudged bankrupt by a Judge of the Bankruptcy
and Insolvency Division of the Superior Court of Quebec, District of Montreal.
In accordance with Item 7(a)(4) of Form 8-K, the Company did not include the
required pro forma financial information with that report on Form 8-K. Item 7
herein supplements the earlier filing by providing the required pro forma
financial information.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA INFORMATION AND EXHIBITS
(a) Financial statements of business acquired:
Not applicable.
(b) Pro forma financial information:
The unaudited pro forma financial information required pursuant to
Regulation S-X is filed herewith beginning on page 2.
(c) Exhibits
None.
INNOFONE.COM, INCORPORATED
Pro Forma Balance Sheet
(Stated in United States dollars)
(unaudited)
March 31, 2001.
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March 31, 2001 Adjustments March 31, 2001
(previously reported) (note 1) Pro Forma
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Assets
Current assets:
Cash and cash equivalents $ -- 578 $ 578
Accounts receivable 591,700 (577,451) 14,249
Prepaid expenses and deposits 56,098 (54,873) 1,225
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647,798 16,052
Fixed assets 297,268 (297,268) --
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$ 945,066 $ 16,052
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Liabilities and Shareholders' Deficiency
Current liabilities:
Bank indebtedness $ 48,884 (48,884) --
Accounts payable and accrued liabilities 1,934,550 (1,834,038) 100,512
Advances from ultimate shareholders 553,879 (400,044) 153,835
Convertible debt 500,000 -- 500,000
Obligation under capital lease 1,073 (1,073) --
Current portion of long-term debt 67,334 (67,334) --
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3,105,720 754,347
Convertible debt 766,000 766,000
Shareholders' deficiency:
Share capital:
Common shares 4,707,682 -- 4,707,682
Preferred shares 2,500 -- 2,500
Additional paid-in capital 7,082,162 -- 7,082,162
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11,792,344 -- 11,792,344
Deficit (14,737,612) 1,422,359 (13,315,253)
Accumulated other comprehensive income 18,614 -- 18,614
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(2,926,654) (1,504,295)
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$ 945,066 16,052
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See accompanying notes to pro forma financial statements.
2
INNOFONE.COM, INCORPORATED
Pro Forma Income Statement
(Stated in United States dollars)
Unaudited
For the nine months ended March 31, 2001
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March 31, March 31,
2001 Adjustments 2001
(previously reported) (note 1) Pro Forma
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Revenue $ 1,386,095 (1,384,974) $ 1,121
Cost of sales 966,668 (966,668) --
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Gross profit 419,427 (418,306) 1,121
Selling, general and administrative expenses 2,915,049 (2,401,794) 513,255
Amortization 109,408 (109,408) --
Additional interest 138,400 -- 138,400
Compensation cost of options 24,240 -- 24,240
Interest on long term debt and bank charges 31,660 (30,812) 848
Loss on investment 165,000 (165,000) --
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3,383,757 (2,707,014) 676,743
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Net loss (2,964,330) 2,618,708 (675,622)
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Basic net loss per common share $ (0.13) $ (0.03)
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Weighted average number of common
shares outstanding 23,176,500 23,176,500
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See accompanying notes to pro forma financial statements.
3
INNOFONE.COM, INCORPORATED
Pro Forma Income Statement
(Stated in United States dollars)
(Unaudited)
For the year ended June 30, 2000
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June 30, June 30,
2000 Adjustments 2000
(previously reported) (note 1) Pro Forma
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Revenue $ 736,127 (735,706) $ 421
Cost of sales 528,603 (528,603) --
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Gross profit 207,524 (207,103) 421
Selling, general and administrative expenses 2,309,523 (2,153,237) 156,286
Amortization 94,585 (94,585) --
Additional interest 1,312,750 -- 1,312.750
Compensation cost for options 2,728,130 -- 2,728,130
Interest on long-term debt and bank charges 25,083 (23,458) 1,625
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6,470,071 (2,271,280) 4,198,791
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Net loss 6,262,547 4,198,370
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Basic net loss per common share $ (0.50) $ (0.33)
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Weighted average number of common
shares outstanding 12,542,976 12,542,976
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See accompanying notes to pro forma financial statements.
4
INNOFONE.COM, INCORPORATED
Notes to Pro Forma Financial Statements
(Stated in United States dollars)
(Unaudited)
For the nine months ended March 31, 2001
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IInnofone.com, Incorporated (the "Company") is incorporated under the laws of
the State of Nevada. The Company, through its legal subsidiary Innofone Canada
Inc. ("Innofone Canada"), operated in Canada in the telecommunications business
of providing long distance telephone services, cellular services and internet
services until May 3, 2001 as described below.
1. BASIS OF PRESENTATION:
The unaudited pro forma balance sheet has been prepared by management
to give effect to the effective disposition of the assets of Innofone
Canada as at March 31, 2001 as a result of it being deemed bankrupt on
May 3, 2001. The pro forma income statement has been adjusted to
exclude the operations of Innofone Canada commencing from July 1,
1999. These pro forma adjustments reflect only direct costs and assets
and liabilities of Innofone Canada. On February 26, 2001, a Petition
for a Receiving Order ("Petition") under the Bankruptcy and Insolvency
Act (Canada) was filed by 9024-9574 Quebec Inc. against Innofone
Canada Inc. The effect of issuing a Receiving Order against Innofone
Canada Inc. could render the company bankrupt as determined by the
bankruptcy courts. On April 11, 2001, Innofone Canada filed a Notice
of Intent to File a Proposal ("NOI") to its creditors, and
subsequently filed a cash flow statement with the bankruptcy
authorities. The effect of filing the NOI staid the hearing of the
petition, and gave the company time to consider how it intended to
restructure its debt. On May 2, 2001, the company attended a hearing
at which a creditor was filing a motion to have the stay of the NOI
lifted and have Innofone Canada declared bankrupt. The company was
unsuccessful in defeating the motion and on May 3, 2001, Innofone
Canada Inc. was declared bankrupt. The trustee, Raymond Chabot Inc. is
in the process of liquidating the assets of Innofone Canada Inc.
As a result of the bankruptcy of Innofone Canada, the Company has lost
control of the assets of its legal subsidiary. These pro forma
financial statements have been prepared to give effect to the
disposition of the operating assets of Innofone Canada.
5
INNOFONE.COM, INCORPORATED
Notes to Consolidated Financial Statements
(Stated in United States dollars)
(Unaudited)
For the nine months ended March 31, 2001
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1. BASIS OF PRESENTATION (CONTINUED)
During the period from January 15, 2001 to May 3, 2001, Innofone
Canada Inc. was delayed in billing all of its customers for long
distance, cellular and internet services rendered. The Trustee has now
rendered these bill runs and has paid the claims of Innofone Canada's
secured and preferred creditors, leaving funds to be disbursed to the
unsecured creditors. Innofone.com, Incorporated is a major unsecured
creditor and has submitted a claim in the amount of CDN$5,481,467.27
representing approximately 2/3 of the total unsecured claims against
Innofone Canada. At this time it cannot be determined the extent of
any recoveries that may be available to Innofone.com, Inc. from the
realization of the disposition of the assets of Innofone Canada Inc.
6
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amended report to be signed on its behalf by the
undersigned hereunto duly authorized.
INNOFONE.COM, INC.
Date: July 9, 2001 By: /s/ Richard G. Quinney
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Richard G. Quinney
Chief Financial Officer