Securities and Exchange Commission
Washington, D.C. 20549
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)
September 18, 2000
INSYNQ, INC.
(Exact name of registrant as
specified in its charter)
Delaware 0-22814 74-2964608
(State or other (Commission File Number) IRS Employer
(jurisdiction of Identification Number)
incorporation)
1101 Broadway Plaza
Tacoma, Washington 98402
(Address of principal executive offices and zip code)
(253) 284-2000
(Registrant's telephone number,
including area code)
(Former name or former address, if changed since last report)
Item 5. Other Events
On September 18, 2000, we announced a reorganization of our operations,
both in sales and marketing and in our executive management team, which resulted
in a workforce reduction of 17 people - mostly in sales-related positions - in
addition to certain changes to the executive management team. As part of the
corporate reorganization, we consolidated our sales activities into the
corporate headquarters office in Tacoma while retaining two California sales
offices. A redeployment of a national direct sales force is planned in the
future to augment our strategic alliance program. A copy of the press release is
filed as Exhibit 99.1 hereto and is incorporated by reference herein.
In addition to the reorganization, retroactive to September 1, we reduced
salaries and benefits for most members of executive management and certain other
employees until the earlier of November 30, 2000 or the receipt of equity
financing of at least $1 million.
The combination of the reorganization and the salary reductions will reduce
corporate overhead by approximately $100,000 per month.
We promoted James R. Leigh, III, Chief Technology Officer, to the position
of President. Mr. Leigh will serve in both capacities on a going-forward
basis. We also promoted James A. Zachman, Vice President of Business
Development, to the position of Senior Vice President.
On September 19, 2000, DJ Johnson resigned his position as our Chief
Financial Officer, and Stephen C. Smith will be acting as interim Chief
Financial Officer as we conduct a nationwide search for a replacement. A copy of
the press release is filed as Exhibit 99.2 hereto and is incorporated by
reference herein.
We have terminated an agreement with Tricorp Financial, Inc. ("Tricorp")
and a financial advisory agreement with Rosenblum Partners, LLC, the financial
advisor that introduced us to Tricorp, due to Tricorp's failure to perform its
commitment to purchase the first tranche of 1.1 million shares (out of a total
of 2.2 million shares to be purchased) of our common stock at $1.50 per share.
This decision was made after Tricorp's repeated failure to timely fund the
purchase price for the first tranche of shares.. We have turned the matter over
to our legal counsel for further review.
We have also retained Cardinal Capital of Atlanta, Georgia, to assist us in
obtaining funding for the roll out of our marketing program and for additional
working capital.
SIGNATURE
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.
INSYNQ, INC.
Dated: September 27, 2000 By: /s/ John P. Gorst
--------------------------------------
John P. Gorst, Chief Executive Officer
EXHIBIT INDEX
Exhibit No. Description
----------- -----------
99.1* Press Release, dated September 18, 2000.
99.2* Press Release, dated September 22, 2000.
________________
* Filed herewith.