SECURITIES & 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: April 6, 1999 Lotus Pacific, Inc. (Exact name of registrant as specified in its charter) Delaware State of Organization 0-24999 Commission File Number 52-1947160 Employer Identification Number 200 Centennial Avenue, Suite 201, Piscataway, New Jersey 08854 Address of Principal Executive Office (732) 885-1750 Registrant's Telephone Number, Including Area Code Item 2. Disposition of Assets To restructure its business operation, the Company entered into a Stock Purchase Agreement with Clarinet Overseas Ltd. on September 30, 1998. Under the Agreement, the Company sold all of its ownership interests in LPF International Corp. and Richtime Far East Limited. to Clarinet Overseas Ltd., including all assets and liabilities, for an aggregate consideration of $2,500,000 in cash. LPF International Corp. is an apparel fashion designer and a textile fabric wholesaler located in New York, NY and Richtime Far East Ltd. is a subsidiary of LPF International Corp that operated in Hong Kong. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (a) Financial statements of business acquired. Not applicable (b) Pro forma financial information The following condensed pro forma consolidated financial statement of Lotus Pacific, Inc. and Subsidiary gives effect to the disposition of LPF International Corp., a wholly owned subsidiary of the Company, as though it had occurred at June 30, 1998. PRO FORMA CONDENSED BALANCE SHEET As of June 30, 1998 (In Thousands) Pro Forma Pro Forma Actual Adjustments Statement ASSETS ---------- ------------- ----------- Current Assets Cash $ 3,193 $ 1,160 $ 4,353 Accounts Receivable 4,979 (1,246) 3,703 -------- -------- -------- Total current assets 8,172 8,056 Property & Equipment, net 1,359 (76) 1,283 Investment (note 1) 600 600 Intangible Assets 5,440 5,440 -------- -------- Total Assets 16,404 16,242 LIABILITIES & SHAREHOLDERS' EQUITY Current Liabilities Accounts payable 1,756 (173) 1,583 Other current liabilities (note 2) 258 258 -------- -------- Total current liabilities 2,014 1,841 Minority Interest 6,570 6,570 Capital Stock 127 127 Paid-in Capital 10,241 10,241 Retained Earnings (note 3) (2,547) (2,537) -------- -------- Total stockholders' equity 7,821 7,831 Total Liabilities & Stockholders' Equity $ 16,404 $ 16,242 ======== ======== Notes to Pro Forma Condensed Balance Sheet: Note 1. In April, 1997, the Company acquired 100% of the stock of Richtime Far East, Ltd., a Hong Kong corporation, for monetary consideration of $600,000. The Company carries the investment at cost, and Richtime Far East Ltd. is not consolidated with Lotus Pacific, Inc. Note 2. No provision for income taxes has been reflected on the gains applicable to the sale of LPF, since those gains could be offset by the Company's net operating losses (NOLs) incurred in previous years. Note 3. An adjustment has been made for $90,000 of LPF's retained earnings and $100,000 gain on sale of LPF. PRO FORMA CONDENSED STATEMENT OF OPERATIONS For the Quarter Ended September 30, 1998 The following pro forma statement of operations for the quarter ended September 30, 1998 has been prepared to reflect the sale of LPF. The statement is based on the assumption that the sale of LPF was consummated at July 1, 1998, the beginning of the fiscal year of Lotus Pacific, Inc. This pro forma statement of operations should be read in conjunction with other financial statements included elsewhere herein and the Company's annual report 10-K/A, which has been filed with the SEC. Pro Forma Pro Forma (In Thousand dollars) Actual Adjustments Statement ---------- ------------ ----------- Net Sales $ 5,314 $ (2,894) $ 2,420 Cost of Sales 3,953 (2,755) 1,198 -------- --------- -------- Gross Profit 1,361 1,223 Operating Expenses 1,134 (38) 1,096 Operating Income 227 127 Other Income (expenses) (69) (69) Net Income before Minority Interest 158 58 Minority Interest 23 23 Net Income $ 135 $ 35 ======== ======== Earnings Per Share Basic $.00 $.00 ======== ======== Diluted $.00 $.00 ======== ======== Pro forma earnings per share are based on the exercise of all outstanding stock options and warrants, and it is fully diluted. (c) Exhibits. None Signatures Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant had duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized. LOTUS PACIFIC, INC. Date: April 5, 1999 By: /s/ James Yao -------------------------------- James Yao, Chairman of the Board Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following person on behalf of the registrants and in capacities and on the dates indicated. Date: April 5, 1999 By: /s/ John O. Hing ------------------------------------ John O. Hing, Chief Financial Officer