UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 16, 2003
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Avitar, Inc.
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(Exact name of registrant as specified in its chapter)
Delaware 1-15695 06-1174053
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
65 Dan Road, Canton, MA 02021
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (781) 821-2440
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(Former name or former address, if changed since last report)
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Item 7. Financial Statements and Exhibits
(b) Pro forma financial information.
In regard to the sale of the assets of the subsidiary, United States Drug
Testing Laboratories, Inc. ("USDTL") reported in Item 2 on the Form 8-K filed on
December 17, 2003, the following unaudited pro forma condensed consolidated
financial statements are filed with this report:
Pro forma Condensed Consolidated Balance Sheet at
September 30, 2003 F-1
Pro forma Condensed Consolidated Statement of
Operations for the Year Ended September 30, 2003 F-2
The pro forma condensed consolidated balance sheet of the Company as of
September 30, 2003 reflects the financial position of the Company after giving
effect to the disposition of the business and net assets, excluding cash, of its
USDTL subsidiary and assume the disposition took place on September 30, 2003.
The pro forma condensed consolidated statement of operations for the year ended
September 30, 2003 assumes the disposition took place on September 30, 2002, and
is based on the operations of the Company for the year ended September 30, 2003.
The unaudited pro forma condensed consolidated financial statements have
been prepared by the Company based upon assumptions deemed appropriate by it.
These statements are not necessarily indicative of the future financial position
or results of operations or actual results that would have occurred had the
transaction been in effect as of the dates presented. The unaudited pro forma
condensed consolidated financial statements should be read in conjunction with
the Company's historical financial statements and related notes. Furthermore,
the historical amounts as of September 30, 2003 and for the year then ended are
unaudited and therefore are subject to further adjustment upon finalization of
the Company's year-end audit. For the purposes of this pro forma presentation,
the USDTL amounts included in the historical amounts are not presented as a
discontinued operation.
Pro Forma Financial Information
Avitar, Inc. and Subsidiaries
Pro Forma Consolidated Balance Sheet
September 30, 2003
(Unaudited)
Pro Forma Adjustments
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Historical USDTL (a) Other (b) Pro Forma
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,130,919 $ - $ 500,000 $ 1,630,919
Accounts receivable, net 723,016 205,455 517,561
Inventories 256,928 7,000 249,928
Prepaid expenses and other current assets 167,096 10,198 156,898
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Total current assets 2,277,959 222,653 500,000 2,555,306
PROPERTY AND EQUIPMENT, net 294,999 57,682 237,317
GOODWILL, net 623,172 385,052 - 238,120
OTHER ASSETS 381,331 4,136 377,195
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Total Assets $ 3,577,461 $ 669,523 $ 500,000 $ 3,407,938
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LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Notes payable $ 337,853 $ - $ 337,853
Accounts payable 1,261,130 112,087 1,149,043
Accrued expenses 1,511,183 35,329 1,475,854
Deferred income 212,750 - 212,750
Current portion of long-term debt 13,023 2,476 10,547
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Total current liabilities 3,335,939 149,892 - 3,186,047
LONG TERM DEBT, LESS CURRENT PORTION 1,241,406 19,631 1,221,775
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Total liabilities 4,577,345 169,523 - 4,407,822
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REDEEMABLE CONVERTIBLE PREFERRED STOCK 700,000 - - 700,000
COMMITMENTS - - - -
STOCKHOLDERS' DEFICIT:
Series B, C and D convertible preferred stock, $.01 par value;
authorized 5,000,000 shares; 137,202 shares issued and outstanding 1,371 - - 1,371
Common Stock, $.01 par value; authorized 200,000,000 shares; 0
88,868,196 shares issued and outstanding 888,683 - - 888,683
Additional paid-in capital 45,974,947 - - 45,974,947
Accumulated deficit (48,564,885) 500,000 500,000 (48,564,885)
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Total stockholders' deficit (1,699,884) 500,000 500,000 (1,699,884)
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Total Liabilities and Stockholders' Deficit $ 3,577,461 $ 669,523 $ 500,000 $ 3,407,938
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(a) To eliminate the assets and liabilities, excluding cash, included in the
Company's USDTL business as of September 30, 2003.
(b) To reflect the exchange of cash ($500,000) for the net assets of USDTL,
excluding cash ($27,403). The $500,000 contingent portion of the selling
price will be recorded as revenue when received
F-1
Pro Forma Financial Information
Avitar, Inc. and Subsidiaries
Pro Forma Consolidated Statements of Operations
For the Year Ended September 30,2003
(Unaudited)
Pro Forma Adjustments
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Historical UDSTL (a) Other Pro Forma
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SALES $ 6,245,031 $ 1,647,006 $ - $ 4,598,025
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OPERATING EXPENSES
Cost of sales 4,296,160 863,077 - 3,433,083
Selling, general and administrative expenses 4,373,427 770,382 - 3,603,045
Research and development expenses 764,982 0 - 764,982
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Total operating expenses 9,434,569 1,633,459 - 7,801,110
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INCOME (LOSS) FROM OPERATIONS (3,189,538) 13,547 - (3,203,085)
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OTHER INCOME (EXPENSE)
Interest expense and financing costs (1,752,841) (5,338) - (1,747,503)
Other income, net 25,278 8,574 - 16,704
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Total other expense, net (1,727,563) 3,236 - (1,730,799)
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INCOME (LOSS) BFORE CUMULATIVE EFFECT OF A
CHANGE IN ACCOUNTING PRINCIPLE (4,917,101) 16,783 - (4,933,884)
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BASIC AND DILUTED LOSS PER SHARE APPLICABLE
TO COMMON SHAREHOLDERS BEFORE CUMULATIVE
EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE $ (0.10) $ - $ - $ (0.10)
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WEIGHTED AVERAGE
NUMBER OF COMMON SHARES OUTSTANDING 63,228,778 - - 63,228,778
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(a) To eliminate the revenues and expenses of the Company's USDTL business for
the year ended September 30, 2003
F-2
Item 7. Financial Statements and Exhibits (continued)
(c) Exhibits.
99.1 Press Release issued on December 31, 2003.
Item 12. Results of Operations and Financial Condition.
See Item 7(b), Pro forma financial information and the Press Release
attached hereto as Exhibit 99.1.
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.
Avitar, Inc.
(Registrant)
Date: December 31, 2003 /s/ Jay Leatherman, CFO
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(Signature)*