UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: September 30, 1999
IWI HOLDING LIMITED
-----------------------
(Name of Issuer)
Oakmont Centre, 1010 Executive Court, Suite 300, Westmont, Illinois 60559
---------------------------------------------------------------------------
(Address of Issuer)
Registrant's telephone number, including area code: 630-887-2388
BVI 0-25108 None
- -------------------------------- -------------------------- -----------------
(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation or organization) Identification Number)
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or 40-F.)
Form 20-F X Form 40-F
------- -------
(Indicate by check mark whether the registrant by furnishing the
information contained in this form is also hereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934)
Yes No X
------ ---------
(If "Yes" is marked, indicate below whether the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- .
--------
IWI HOLDING LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
-------------------------------- -------------------------------
1999 1998 1999 1998
-------------- --------------- -------------- --------------
Net Sales $ 2,886 $ 5,242 $ 5,705 $ 9,929
Cost of Sales 2,003 3,893 4,024 7,482
-------------- --------------- -------------- --------------
Gross Profit (Loss) 883 1,349 1,681 2,447
Selling, general and administrative expenses 1,071 1,799 2,149 3,469
-------------- --------------- -------------- --------------
Loss from Operations (188) (450) (468) (1,022)
Interest Expense 38 135 79 261
-------------- --------------- -------------- --------------
Loss before Income Taxes (226) (585) (547) (1,283)
Income taxes (benefit) - 1 - (21)
-------------- --------------- -------------- --------------
Net Loss $ (226) $ (586) $ (547) $ (1,262)
============== =============== ============== ==============
Net Loss per Common Share $ (0.09) $ (0.23) $ (0.21) $ (0.49)
============== =============== ============== ==============
Weighted Average Number of
Common Shares Outstanding 2,554,700 2,554,700 2,554,700 2,554,700
============== =============== ============== ==============
IWI HOLDING LIMITED
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
June 30 December 31
------------------- -----------------
1999 1998
------------------- -----------------
ASSETS
Current Assets
Cash $ 50 $ 82
Accounts Receivable, Less Allowances for Doubtful
Accounts of $297 in 1999 and $280 in 1998 898 1,749
Inventories 3,704 3,686
Prepaid Expenses 134 107
-------------- ---------------
Total Current Assets 4,786 5,624
-------------- ---------------
Property and Equipment 2,842 2,623
Less Accumulated Depreciation (1,836) (1,678)
-------------- ---------------
Property and Equipment - Net 1,006 945
-------------- ---------------
Total Assets $ 5,792 $ 6,569
============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Line of Credit $ 1,269 $ 1,217
Notes Payable 75 125
Accounts Payable, Trade 1,317 1,655
Accounts Payable to Affiliated Company 1,546 1,423
Accrued Liabilities 717 734
-------------- ---------------
Total Current Liabilities 4,924 5,154
-------------- ---------------
Shareholders: Equity:
Preferred Stock, $1 Par Value; 5,000,000 Shares
Authorized; 3,644,880 Shares Issued and Outstanding 3,645 3,645
Common Stock, No Par Value; 10,000,000 Shares
Authorized; 2,554,700 Shares Issued and Outstanding
Additional Paid in Capital 12,466 12,446
Retained Earnings (15,223) (14,676)
-------------- ---------------
Total Shareholders' Equity 868 1,415
-------------- ---------------
Total Liabilities and Shareholders' Equity $ 5,792 $ 6,569
============== ===============
IWI HOLDING LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS
(In Thousands)
(Unaudited)
Six Months Twelve Months
Ended Ended
6/30/99 12/31/98
---------------------- -----------------
Cash Flows From Operating Activities:
Net Loss $ (547) $ (2,709)
Adjustments to reconcile net income loss to net
cash used on operating activities:
Depreciation and amortization 158 252
Loss on sale of assets - 7
Provision for doubtful accounts 48 177
(Gain) loss on assets held for disposal - (110)
Changes in operating assets and liabilities:
Accounts receivable 803 1,432
Accounts receivable from affiliated companies - -
Inventories (18) 2,340
Prepaid expenses (27) 38
Accounts payable trade (338) (512)
Accounts payable to affiliated companies 123 187
Accrued liabilities (17) (174)
---------------- ----------------
Net cash provided (used in) operating activities: 185 928
---------------- ----------------
Investing activities:
Purchases of property and equipment (219) (11)
Proceeds from sale of equipment - 5
Proceeds from sale of assets held for disposal - 500
---------------- ----------------
Net cash generated (used in) investing activities (219) 494
---------------- ----------------
Cash Flows from Financing Activities
Borrowings from notes payable to employees (50) 125
Proceeds from (payments on) lines of credit, net 52 (1,503)
Payments on notes payable to shareholders and
payable to affiliates - -
Repurchase of common stock - -
---------------- ----------------
Net cash provided by (used in) financing activities 2 (1,378)
---------------- ----------------
Net increase (decrease) in cash (32) 44
Cash at beginning of year/period 82 38
---------------- ----------------
Cash at End of Period $ 50 $ 82
================ ================
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 -- Basis of Presentation
The unaudited condensed consolidated financial statements of IWI Holding Limited
have been prepared in accordance with generally accepted accounting principles
for interim financial information and pursuant to the requirements for reportin
on Form 6-K. Accordingly, they do not include all the information and footnotes
required by generally accepted accounting principles for complete financial
statements. However, such information reflects all adjustments (consisting
solely of normal recurring adjustments) which are, in the opinion of management,
necessary for a fair statement of results for the interim periods. Results show
for interim periods are not necessarily indicative of the results to be obtained
for a full fiscal year. These interim financial statements should be read in
conjunction with the audited financial statements and notes thereto included in
the Company Form 20-F for the fiscal year ended December 31, 1998.
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.
IWI HOLDING LIMITED
/s/ Joseph K. Lau
-------------------------------------
Joseph K. Lau
President and Chief Executive Officer
Date: September 29, 1999