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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Amendment No. 2
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): October 13, 2004
Commission File Number: 000-24459
ACCESSTEL, INC.
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(Exact name of registrant)
Utah 59-2159271
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(State of incorporation) (I.R.S. Employer Identification No.)
66 Clinton Road, Fairfield, NJ 07004
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(Address of principal executive offices and zip code)
(973) 882-8861
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(Registrant's telephone number)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
{ } Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
{ } Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a -12)
{ } Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d -2(b))
{ } Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e -4(c))
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1.
Item 2.01. Completion of Acquisition or Disposition of Assets.
On October 13, 2004, Accesstel, Inc. ("we" or the "Company") completed
the acquisition of Global Invest Holdings, Inc., a New Jersey corporation. In
connection with the acquisition of Global Invest from its six stockholders, we
issued them an aggregate of 25,000,000 shares of our common stock.
Item 9.01. Financial Statements and Exhibits.
(b) Pro Forma Financial Information
ACCESSTEL, INC.
PROFORMA CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
On October 13, 2004, Accesstel, Inc. (the Company) acquired all of the capital
stock of Global Invest Holdings, Inc. (Global Invest) in return for 25,000,000
shares of its common stock, which represented 73% of the number of shares of the
Company outstanding after this transaction. The acquisition will be accounted
for as a reverse merger with the Company being treated as the acquired company
and Global Invest being treated as the acquirer. After the completion of the
merger, historic financial and other information of Global Invest will be
presented in all public filings. Under the accounting for a reverse merger, the
liabilities of the Company will be recorded on the books of the continuing
company at their market value which approximates net realizable value, and the
stockholder's equity accounts of Global Invest will be reorganized to reflect
the shares issued in this transaction.
Global Invest is a New Jersey corporation organized November 19, 2003. In
January 2004, it acquired the ownership interests of three operating companies:
Asiatic Industries, LLC, a New Jersey limited liability company which markets
ladies hosiery, underwear, and socks; and two Lebanese companies which
manufacture the products sold by Asiatic Industries, LLC. Prior to 2004, the
three companies had diverse ownership.
The accompanying condensed financial statements illustrate the effect of the
acquisition (proforma) on the financial position of the Company and the results
of its operations. The condensed balance sheet as of September 30, 2004, is
based on the historical balance sheets of Global Invest and the assets and
liabilities of the Company as of that date and assumes the acquisition took
place on that date. The condensed statements of income for the year ended
December 31, 2003, and for the nine month period ended September 30, 2004, are
based on the historical statements of income of the Company and Global Invest
for those periods and assume the acquisition took place on January 1, 2003.
The proforma condensed financial statements may not be indicative of the actual
results of the acquisition. In particular, the proforma condensed financial
statements are based on management's current estimate of the allocation of the
purchase price; the actual allocation may differ.
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2.
The accompanying proforma financial statements should be read in conjunction
with the historical financial statements of the Company and of Global Invest.
A number of relatively small judgments were entered against the Company in the
year 2000, which total approximately $700,000. A former executive of the Company
has indemnified the Company for these liabilities and pledged 200,000 shares of
Company common stock to secure this indemnification. The indemnification calls
for release of the stock on October 12, 2005.
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3.
ACCESSTEL, INC.
PROFORMA CONDENSED STATEMENTS OF INCOME (Unaudited)
YEAR ENDED DECEMBER 31, 2003
Authentic
Asiatic Textile Garment
Accesstel Industries Industries Industries,
Inc. LLC S.A.L. S.A.L. Adjustments Pro-Forma
------------ ---------- ---------- ---------- ------------ ----------
Sales $ -- $5,825,476 $3,173,623 $2,094,669 $ (3,996,299)(1) $7,097,469
Cost of Goods Sold -- 5,039,199 1,427,390 1,637,510 3,996,299(1) 4,107,800
------------ ---------- ---------- ---------- ------------ ----------
Gross Profit -- 786,277 1,746,233 457,159 -- 2,989,669
Operating Expenses 908,492 559,527 1,385,277 300,427 800,000(3) 2,353,723
------------ ---------- ---------- ---------- ------------ ----------
Operating Income (908,492) 226,750 360,956 156,732 800,000 635,946
Other Income and Expense:
Interest expense (2,493) (37,910) (187,560) (47,901) 2,493(4) (273,371)
Other income (expense) (900,000) -- 13,419 (39,457) 900,000(3) (26,038)
------------ ---------- ---------- ---------- ------------ ----------
Income Before Income Taxes (1,810,985) 188,840 186,815 69,374 1,702,493 336,537
Income Taxes -- -- -- 18,267 -- 18,267
------------ ---------- ---------- ---------- ------------ ----------
Net Income $ (1,810,985) $ 188,840 $ 186,815 $ 51,107 $ 1,702,493 $ 318,270
============ ========== ========== ========== ============ ==========
Earnings Per Share $ .01
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Weighted Average Number
of Shares Outstanding 34,236,340
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4.
ACCESSTEL, INC.
PRO FORMA CONDENSED BALANCE SHEETS (UNAUDITED)
SEPTEMBER 30, 2004
Global Invest
Accesstel, Holdings,
Inc. Inc. Adjustments Pro Forma
----------- ----------- ----------- -----------
ASSETS
Cash $ -- $ 28,572 $ 28,572
Accounts receivable, net of
bad debt provision -- 3,894,712 3,894,712
Inventory -- 3,053,912 3,053,912
Prepaid expenses and other assets -- 55,382 55,382
----------- ----------- ----------- -----------
Total current assets -- 7,032,578 7,032,578
Fixed assets, net -- 1,194,426 1,194,426
----------- ----------- ----------- -----------
Total Assets $ -- $ 8,227,004 $ -- $ 8,227,004
=========== =========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $ 34,393 672,561 $ (34,393)(2) $ 672,561
Due to shareholders 52,063 372,305 (52,063)(2) 372,305
Short term bank debt 4,435,609 4,435,609
----------- ----------- ----------- -----------
Total current liabilities 86,456 5,480,475 (86,456) 5,480,475
Long term bank debt -- 1,295,115 1,295,115
Stockholders' equity:
Common stock: authorized shares of
$.001 par value; 34,236,340 shares
issued and outstanding 9,236 119,435 25,000 (5)
(119,435)(6) 34,236
Additional paid in capital 3,818,460 816,595 (25,000)(5)
119,435 (6)
(3,914,152)(7) 901,794
86,456 (2)
Retained earnings (deficit) (3,914,152) 515,384 3,914,152 (7) 515,384
----------- ----------- ----------- -----------
Total stockholders' equity (deficit) (86,456) 1,451,414 86,456 451,414
----------- ----------- ----------- -----------
Total Liabilities and Stockholders' Equity $ -- $ 8,227,004 $ -- $ 8,227,004
=========== =========== =========== ===========
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5.
ACCESSTEL, INC.
PRO FORMA CONDENSED STATEMENTS OF INCOME (UNAUDITED)
SEPTEMBER 30, 2004
Global Invest
Accesstel, Holdings,
Inc. Inc. Adjustments Pro Forma
-------------- -------------- ------------ ------------
Sales $ -- $ 4,644,990 $ 4,644,990
Cost of Goods Sold -- 2,583,507 2,583,507
------------ ------------ ---------- ----------
Gross Profit -- 2,061,483 2,061,483
Operating Expenses 290,063 1,501,056 $ 215,000(3) 1,576,119
------------ ------------ ---------- ----------
Operating Income (290,063) 560,427 215,000 485,364
Other Income Expense:
Interest expense 28,750 232,250 28,750(4) 232,250
------------ ------------ ---------- ----------
Income Before Income Taxes (318,813) 328,177 243,750 253,114
Income Taxes -- 70,000 70,000
------------ ------------ ---------- ----------
Net Income $ (318,813) $ 258,177 $ 243,750 $ 183,114
============ ============ ============ ==========
Earnings Per Share $ .01
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Weighted Average Number of
Shares Outstanding 34,236,340
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6.
ACCESSTEL, INC.
NOTES TO PROFORMA CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
Adjustments to condensed proforma statements of income for the year ended
December 31, 2003:
(1) Elimination of intercompany sales.
(2) Conversion of related party debt to equity, coincident with the
acquisition.
(3) Elimination of selling, general and administrative expenses from
Accesstel, Inc. which would not be required subsequent to the merger
with Global Invest Holdings, Inc. The estimated portion of selling,
general and administrative expenses expected to be incurred are
professional fees relating to the Company being a public filer.
(4) Elimination of the interest expense on related party debt which was
converted to equity coincident with the merger.
(5) Issuance of 25,000,000 shares of $.001 par value in exchange
for the outstanding common stock of Global Invest Holdings, Inc.
(6) Elimination of common stock of Global Invest Holding, Inc.
(7) Elimination of retained deficit of Accesstel, Inc.
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7.
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.
ACCESSTEL, INC.
Dated: January 11, 2005 By: /s/ Ralph Sayad
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Ralph Sayad
Chief Executive Officer