SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------------------- 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) February 29, 1996 Response USA, Inc. Exact name of registrant as specified in charter Delaware			 		0-20770	 	52-1441922 (State or other jurisdiction	 	(Commission		 (IRS Employer of Incorporation)		 	 File Number) Identification No.) 11-K Princess Road, Lawrenceville, NJ		 08648			 (Address of principal executive offices)		 	(Zip Code) Registrant's telephone number, including area code 		(609) 896-4500					 ________________________________________________________________________ (Former name or former address, if changed since last report) Item 2. Acquisition or Disposition of Assets. 	On February 26, 1996, Response USA, Inc. ("the Company"), through its wholly owned subsidiary, United Security Systems, Inc. ("USS"), completed the acquisition of all of the outstanding capital stock of MSG Security Systems, Inc., a Pennsylvania Corporation ("MSG"), in exchange for $404,070.60 (of which $60,160.59 was paid by the issuance of a promissory note bearing interest at the rate of 10% per annum, payable in August (30%), September (30%), and October (40%) 1996). MSG is engaged in the installation, servicing and monitoring of electronic security systems. Substantially all of MSG's assets and liabilities except its monitoring accounts were retained by the former stockholders of MSG. 	On February 26, 1996, The Company, through USS, completed the acquisition of 1,853 electronic security monitoring and leasing accounts and related agreements and outstanding accounts receivable of Monitoring Acquisitions Corp., a Pennsylvania Corporation ("MAC"). In consideration of the acquisition, the Company paid MAC $1,598,347.80 and issued an aggregate of 127,868 shares of the Company's common stock, with certain registration rights. The principal of MAC, Alan B. Lundy, also entered into a non-competition agreement with USS. EXHIBITS Exhibit 1		Asset Purchase Agreement by and among Response USA, Inc., United Security Systems, Inc. and Monitoring Acquisitions Corp. (previously filed). Exhibit 2		Stock Purchase Agreement by and among United Security Systems, Inc., Melvin S. Goldberg and Susan S. Goldberg (previously filed). Exhibit 3		Financial Statements - filed herewith SIGNATURES 	Pursuant to the requirements of the Securities and Exchange act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. 							Response USA, Inc. 							 (registrant) Dated: May 14, 1996				By:/s/ RICHARD M. BROOKS 							 Richard M. Brooks 								 President EXHIBIT 3 	MONITORING ACQUISITION CORPORATION 	FINANCIAL STATEMENTS 	YEAR ENDED JULY 31, 1995 	MONITORING ACQUISITION CORPORATION 	CONTENTS Financial Statements 	PAGE 	Independent Auditors' Report	 1 	Balance Sheet 	 2 	Statement of Operations and Accumulated (Deficit)	 3 	Statement of Cash Flows	 4 	Notes to Financial Statements 	5 - 7 		April 18, 1996 		 Board of Directors MONITORING ACQUISITION CORPORATION Cheltenham, Pennsylvania 		INDEPENDENT AUDITORS' REPORT 	We have audited the accompanying balance sheet of MONITORING ACQUISITION CORPORATION as of July 31, 1995, and the related statement of operations and accumulated (deficit) and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. 	We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. 	In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of MONITORING ACQUISITION CORPORATION as of July 31, 1995 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. 		 /s/ Bush, Levin & Tecosky 		 		 	 Certified Public Accountants 	MONITORING ACQUISITION CORPORATION 	BALANCE SHEET 	JULY 31, 1995 	ASSETS CURRENT ASSETS 	Cash (Note 1) $ 30,142 	Accounts Receivable (Note 1)	 39,805 	Loan Receivable - Individual (Note 2)	 15,000 ------ 		TOTAL CURRENT ASSETS	 84,947 ------ OTHER ASSETS 	Monitoring Contracts (Net of Accumulated 	 Amortization of $76,814) (Note 3)	 1,124,891 	Organization Costs (Net of Accumulated 	 Amortization of $170) (Note 1)	 680 --------- 		TOTAL OTHER ASSETS	 1,125,571 --------- 		TOTAL ASSETS	 $1,210,518 ========= 	LIABILITIES AND STOCKHOLDER'S (DEFICIENCY) CURRENT LIABILITIES 	Current Portion of Long-Term Debt (Note 4)	 $ 252,606 	Note Payable - Related Party (Note 5)	 120,000 	Accrued Expenses	 17,888 	Sales Taxes Payable	 945 	Unearned Income (Note 1)	 61,747 ------- 		TOTAL CURRENT LIABILITIES	 453,186 LONG-TERM DEBT (Net of Current Portion) (Note 4)	 820,269 --------- 		TOTAL LIABILITIES	 1,273,455 --------- STOCKHOLDER'S (DEFICIENCY) 	Common Stock (1000 Shares Authorized; 	 500 Shares Issued and Outstanding; No Par Value)	 500 	Accumulated (Deficit) 	( 63,437) --------- 		TOTAL STOCKHOLDER'S (DEFICIENCY) 	( 62,937) --------- TOTAL LIABILITIES AND STOCKHOLDER'S (DEFICIENCY) $1,210,518 			 ========== 	See Notes to Financial Statements			 	 2 	MONITORING ACQUISITION CORPORATION 	STATEMENT OF OPERATION AND ACCUMULATED (DEFICIT) 	YEAR ENDED JULY 31, 1995 MONITORING INCOME	 $ 258,791 MONITORING, BILLING AND COLLECTIONS	 33,548 ------- GROSS PROFIT	 225,243 ------- OPERATING EXPENSES 	Selling, General and Administrative	 174,595 	Interest	 114,715 ------- 		TOTAL OPERATING EXPENSES	 289,310 ------- (LOSS) - From Operations	 ( 64,067) OTHER INCOME	 630 -------- NET (LOSS) 	( 63,437) ACCUMULATED (DEFICIT): 	Beginning of Year	 - -------- 	End of Year 	($ 63,437) 			 ======== 		 	See Notes to Financial Statements			 	 3 		MONITORING ACQUISITION CORPORATION 	STATEMENT OF CASH FLOWS 	YEAR ENDED JULY 31, 1995 CASH FLOWS FROM OPERATING ACTIVITIES: 	Net (Loss) 	($ 63,437) 	Adjustments to Reconcile Net (Loss) to 	 Net Cash (Used) by Operating Activities: 	 Amortization	 76,984 	 (Increase) in Accounts Receivable	 ( 39,805) 	 (Increase) in Monitoring Contracts	 ( 1,201,705) 	 (Increase) in Organization Costs	 ( 850) 	 Increase in Accrued Expenses	 17,888 	 Increase in Sales Taxes Payable	 945 	 Increase in Unearned Income 	 61,747 ------------ 		NET CASH (USED) BY OPERATING ACTIVITIES 	( 1,148,233) ------------ CASH FLOWS FROM INVESTING ACTIVITIES 	Advance for Loan Receivable - Individual 	( 25,000) 	Payments Received from Loan Receivable - Individual	 10,000 ------------ 		NET CASH (USED) BY INVESTING ACTIVITIES	 ( 15,000) ------------ CASH FLOWS FROM FINANCING ACTIVITIES 	Proceeds from Issuance of Long-Term Debt	 1,200,000 	Payments of Long-Term Debt 	( 127,125) 	Net Proceeds from Note Payable-Related Party	 120,000 	Proceeds from Issuance of Common Stock	 500	 ------------ 		NET CASH PROVIDED BY FINANCING ACTIVITIES	 1,193,375 ------------ NET INCREASE IN CASH	 30,142 CASH BALANCE: 	Beginning of Year	 - ----------- 	End of Year $ 30,142 =========== Note: Cash Paid During the Year for: 		 Interest $ 99,577 	 	See Notes to Financial Statements 	 4 		MONITORING ACQUISITION CORPORATION 	NOTES TO FINANCIAL STATEMENTS 	YEAR ENDED JULY 31, 1995 (1)	Summary of Significant Accounting Policies: 		The significant accounting policies followed by the Company in maintaining accounting records and presenting financial statements are as follows: 		Nature of Business and Concentration of Credit Risk 		The Company commenced business in August, 1994. The Company's operations consist principally of the monitoring and maintenance services of security and fire alarm systems for residential and commercial properties in the Mid-Atlantic states. Accounts receivable are from a large number of customers. 		Cash and Cash Equivalents 		For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. 		Accounting Methods 		Assets, liabilities, revenues and expenses are recognized on the accrual method of accounting. 		 		Revenue Recognition 		The Company recognizes monitoring services as revenue in the accounting period that corresponds to the month for which the service is billed. Monitoring services received or receivable, but not recognized as revenue as of July 31, are recorded as unearned income. 		Accounts Receivable/Allowance for Bad Debts 		For financial reporting purposes, the Company utilizes the allowance method of accounting for doubtful accounts. At July 31, 1995, management estimates that all of the receivables are collectible; therefore, no allowance has been established. 		Organization Costs 		Legal fees associated with the organization of the Corporation are being amortized on the straight line method over 60 months. Amortization expense charged to operations for the year ended July 31, 1995 was $170. 		 5 		MONITORING ACQUISITION CORPORATION 	NOTES TO FINANCIAL STATEMENTS 	YEAR ENDED JULY 31, 1995 (2)	Loan Receivable - Individual 		The loan receivable from an unrelated individual bears interest at 10.5% and is unsecured. Interest income for the year ended July 31, 1995 was $540. (3)	Monitoring Contracts 		The Company purchased twelve packages of monitoring contracts during the year. The contracts are being amortized over a period of 10 years using the straight-line method. Amortization expense was $76,814 for the year ended July 31, 1995. (4)	Long-Term Debt 		The following is a summary of long-term debt at July 31, 1995: 		Notes payable to various individuals, payable 		in monthly installments of $2,938 including 		interest at 18%, maturity date August 1, 		1998, secured by specific alarm accounts 		stated in the installment note agreement. 	$ 165,893 		Notes payable to various individuals, payable 		in monthly installments of $2,783 including 		interest at 15%, maturity dates ranging from 		September 1, 1998 to July 1, 1999, secured by 		specific alarm accounts stated in the installment 		note agreement.	 906,982 --------- 		 Total Long-Term Debt	 1,072,875 		 Less: Current Portion of Long-Term Debt	 252,606 --------- 		 Net Long-Term Debt 	$ 820,269 ========= 			 6 		MONITORING ACQUISITION CORPORATION 	NOTES TO FINANCIAL STATEMENTS 	YEAR ENDED JULY 31, 1995 (4)	Long-Term Debt (Continued) 		Maturities of long-term debt are as follows: 		 July 31, 1996 	$ 252,606 		 1997	 298,426 		 1998	 348,240 		 1999	 173,603 --------- 			$1,072,875	 	 ========= (5)	Note Payable - Related Party 		The note payable to a related party is unsecured and bears interest at 10%. Interest expense for the year ended July 31, 1995 was $1,971. (6)	Income Taxes 		The Company, operating as a C Corporation, sustained a net operating loss of $63,437 which can be carried forward to offset future federal taxable income to the year 2010 and state taxable income to the year 1996. No deferred income taxes existed at July 31, 1995. (7)	Subsequent Events 		On February 29, 1996, the Company entered into an asset purchase agreement, whereby the Company sold certain assets and accounts receivable in exchange for cash of $1,604,446 and shares of the purchaser's common stock valued at $639,339. 		The proceeds from the asset purchase agreement were used to retire all of the Company's outstanding debts. 				 7