SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________________
FORM 8-K/A
Amendment No. 1
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 19, 2002
--------------
TRANSPORTATION LOGISTICS INT'L, INC.
----------------------------------------------------
(Exact name of Registrant as Specified in its Charter)
Colorado 0-25319 84-1191355
------------------------------ --------- --------------------
(State of Incorporation) (Commission File (IRS Employer
Number) Identification No.)
136 Freeway Drive, East Orange, NJ 07018
----------------------------------------
(Address of principal executive offices)
(973) 266-7020
-----------------------------
Registrant's Telephone Number
Amendment No. 1
This amendment is being filed to include the Pro Forma Financial
Statements
Item 5. Sale of Transportation Logistics Int'l (UK) Ltd.
On April 19, 2002 the Registrant sold all of the capital stock of its
subsidiary, Transportation Logistics Int'l (UK) Ltd. ("TLI/UK"). The
purchasers were James Thorpe, David Paul Parsons, Lisa Marie Thorpe and
Valerie Ann Usher. Messrs. Thorpe and Parsons and Ms. Thorpe had transferred
TLI/UK to the Registrant in 1999 in exchange for shares of the Registrant's
common stock. Messrs. Thorpe and Parsons and Ms. Usher are employees of
TLI/UK. In addition, Mr. Thorpe had been a member of the Board of Directors
and President of the Registrant from 1999 until April 19, 2002, when his
resignation from those positions became effective.
The purchase price given by the purchasers consisted of (a) $35,000 to be
paid between November 2002 and April 2003 and (b) 940,867 shares of the
Registrant's common stock, which were surrendered by Mr. Thorpe. The purchase
price was determined to be the fair market value of TLI/UK by negotiations
between the Registrant and the purchasers. In addition, the parties exchanged
general releases of claims and liabilities.
As part of the transaction, TLI/UK and the purchasers agreed that if
within the next two years they participate in the Translogistics Network or
in any similar cooperative global network of logistics providers, then 50% of
the profits they derive from the network during the next five years will be
paid to the Registrant.
EXHIBITS
Pro Forma Financial Statements
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.
TRANSPORTATION LOGISTICS INT'L, INC.
Dated: July 1, 2002 By:/s/ Michael Margolies
------------------------
Michael Margolies
Chief Executive Officer
* * * * * * * * * * * * * * * * * * * *
EXHIBIT - Pro Forma Financial Statements
Transportation Logistics Int'l Inc. and Subsidiaries
Unaudited Proforma Combined Balance Sheet
March 31, 2002
March 31, 2002 Proforma March 31, 2002
Actual Adjustments Proforma
------------------------------------------------
Assets
Current Assets
Cash and equivalents $ - $ - $ -
Accounts receivable, net of
allowance for doubtful
accounts 1,278,221 1,278,221
Note receivable 35,000 (1) 34,999
Prepaid expenses 46,087 - 46,087
-----------------------------------------
Total Current Assets 1,324,308 35,000 1,359,308
-----------------------------------------
Property and equipment, net of
accumulated depreciation 304,194 - 304,194
-----------------------------------------
Goodwill and customer lists,
net of accumulated amortization 102,711 (78,000)(1) 24,710
-----------------------------------------
Other Assets
Security deposits 61,500 - 61,500
Other assets 208,807 - 208,807
-----------------------------------------
Total Other Assets 270,307 - 270,307
Total Assets $ 2,001,520 $ (43,000) $ 1,958,520
=========================================
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable and accured
expenses $ 918,218 $ - $ 918,218
Convertible debenture 200,000 - 200,000
Note payable to bank 413,002 - 413,002
Current maturities of long-term
debt 145,000 - 145,000
Income taxes payable 7,446 - 7,446
------------------------------------------
Total Current Liabilities 1,683,666 - 1,683,666
------------------------------------------
Loan payable 789,791 - 789,791
------------------------------------------
Total Liabilities 2,473,457 - 2,473,457
------------------------------------------
Commitments and Contingencies - - -
Stockholders' Equity
Preferred stock, $.01 par value;
5,000,000 shares authorized ,
and 0 shares issued and
outstanding - - -
Common Stock, no par value;
50,000,000 shares authorized,
31,159,205 shares issued and
outstanding 3,007,892 - 3,007,892
Additional paid-in capital -
stock options 36,748 - 36,748
Retained earnings (2,283,516) (27,276) (1) -
Accumulated other comprehensive
income (loss) (54,706) 50,137 (1) (4,570)
Less: treasury stock (456,675) (65,861) (1) (522,537)
Consulting services to be
provided (721,680) - (721,680)
-----------------------------------------
Total Stockholders' Equity (471,937) (43,000) (514,937)
-----------------------------------------
Total Liabilities and
Stockholders' Equity $2,001,520 $ (43,000) $1,958,520
=========================================
(1) To record proceeds to be received from the Sale and record the
elimination of certain assets and stockholder's equity accounts as a
result of the sale.
Transportation Logistics Int'l Inc. and Subsidiaries
Unaudited Proforma Combined Statement of Operations
Three Months Ended March 31, 2002
Three Months Three Months
Ended Proforma Ended
March 31, 2001 Adjustments March 31, 2002
Actual Proforma
-------------------------------------------------
Operating Revenues $3,533,480 $(858,842) (1) $2,674,638
Direct Operating Expenses 2,496,468 (668,848) (2) 1,827,620
--------------------------------------------
Gross Profit 1,037,012 (189,994) 847,018
Operating Expenses
Selling, general and
administrative 848,174 (162,846) (3) 685,328
Stock issued for consulting
services 24,920 - 24,920
Depreciation and amortization 58,272 - 58,272
-------------------------------------------
Total Operating Expenses 931,366 (162,846) 768,520
-------------------------------------------
Operating Income 105,646 (27,148) 78,498
Other Income (Expense)
Interest expense (11,985) - (11,985)
-------------------------------------------
Total Other Income (Expense) (11,985) - (11,985)
-------------------------------------------
Income Before Income Taxes 93,661 (27,148) 66,513
Provision (Benefit) for Income
Taxes - - -
-------------------------------------------
Income Before Minority Interest 93,661 (27,148) 66,513
Minority Interest (35,280) - (35,280)
-------------------------------------------
Net Income $ 58,381 $ (27,148) $ 31,233
===========================================
Earnings Per Share
Income from continuing
operations $ - $ - $ -
-------------------------------------------
Basic and diluted earnings
per share $ - $ - $ -
===========================================
Weighted Average Number of
Common Shares Outstanding
Basic 25,412,881 25,412,881 25,412,881
Diluted 25,412,881 25,412,881 25,412,881
(1) To reflect the decrease in operating revenue resulting from the
disposition on TLI, UK net sales in the quarter ended March 31, 2002.
(2) To reflect the decrease in direct operating expenses asociated with the
elimination of TLI, UK's operating revenue in adjustment (1).
(3) To reflect the reduction in selling, general and administrative expenses
resulting from the disposition of TLI, UK.
Transportation Logistics Int'l Inc. and Subsidiaries
Unaudited Proforma Combined Statement of Operations
For the Year Ended December 31, 2001
For the Year Ended For the Year Ended
December 31, 2001 Proforma December 31, 2001
Actual Adjustments Proforma
---------------------------------------------------
Operating Revenues $10,368,968 $(2,289,505) (1) $8,079,463
Direct Operating Expenses 8,031,619 (1,732,132) (2) 6,299,487
---------------------------------------------
Gross Profit 2,337,349 (557,373) 1,779,976
---------------------------------------------
Operating Expenses
Selling, general and
administrative 2,666,749 (484,571) (3) 2,182,178
Depreciation and amortization 254,484 - 254,484
Stock issued for consulting
services 446,775 - 446,775
Provisions for impairment to
assets 802,674 - 802,674
--------------------------------------------
Total Operating Expenses 4,170,682 (484,571) 3,686,111
--------------------------------------------
Operating Loss (1,833,333) (72,802) (1,906,135)
Other Income (Expense)
Interest income 5,678 - 5,678
Interest expense (59,152) - (59,152)
--------------------------------------------
Total Other Income (Expense) (53,474) - (53,474)
Loss Before Income Taxes (1,886,807) (72,802) (1,959,609)
Benefit (Provision) for
Income Taxes - - -
--------------------------------------------
Net Loss $(1,886,807) $ (72,802) $(1,959,609)
============================================
Earning (Loss) Per Share
Loss from continuing
operations $ (0.09) $ - $ (0.09)
--------------------------------------------
Basic and diluted earnings
per share $ (0.09) $ - $ (0.09)
============================================
Weighted Average Number of
Common Shares Outstanding
Basic 21,624,816 21,624,816 21,624,816
Diluted 21,624,816 21,624,816 21,624,816
(1) To reflect the decrease in operating revenue resulting from the
disposition on TLI, UK net sales in the quarter ended March 31, 2002.
(2) To reflect the decrease in direct operating expenses asociated with the
elimination of TLI, UK's operating revenue in adjustment (1).
(3) To reflect the reduction in selling, general and administrative expenses
resulting from the disposition of TLI, UK.