SECURITES AND 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 Date of earliest event reported
July 17, 2001 May 4, 2001
CARDIOTECH INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
000-28034
(Commission File Number)
Massachusetts 04-3186647
(State or other (IRS Employer
jurisdiction of Identification No.)
incorporation)
78E Olympia Avenue
Woburn, MA 01801
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (781) 933-4772
The purpose of this report is to amend the CardioTech International, Inc.
Current Report on Form 8-K dated May 18, 2001 relative to the acquisition of
CMED Catheter and Disposables Technology, Inc. ("CDT"). Included in this
amendment are Item 2, financial statements of business acquired (Item 7(a)) and
pro forma financial information (Item 7(b)).
Item 2. Acquisition or Disposition of Assets
On May 4, 2001, CardioTech International, Inc., a Massachusetts corporation
("Cardiotech"), completed the acquisition of all the shares of CMED Catheter and
Disposables Technology, Inc., a Minnesota corporation ("CDT"), from Colorado
Medtech, Inc., a Colorado corporation ("Medtech") pursuant to an Acquisition
Agreement dated as of April 30, 2001, by and among Cardiotech, CDT and Medtech.
CDT is an original equipment manufacturer; supplier of specialized
disposable medical devices to medical device companies from concept to finished
packaged, sterile product; and uses its experience in the design, development,
prototyping and manufacturing to provide turnkey contract services. CDT's
facility is ISO 9001 and EN 46001 certified and includes a "Class 10,000" clean
room.
The consideration paid by Cardiotech to Medtech was $1,300,000 in a cash
payment, $130,000 of which was placed into escrow pursuant to the terms of the
agreement. The cash consideration used in the purchase came from Cardiotech's
working capital. In connection with the transaction, Cardiotech acquired net
assets of CDT having a book value of approximately $375,000. Additionally, the
Company incurred transaction costs of approximately $130,000. The acquisition
will be accounted for in accordance with the purchase method of accounting.
Accordingly the Company will allocate the excess purchase price over net assets
acquired at their fair market value to identifiable intangible assets and
goodwill. Operations of CDT will be included in CardioTech's operations from the
date of the acquisition.
The description contained herein of the transaction is qualified in its
entirety by reference to the Acquisition Agreement (Exhibit 2.1), and a copy of
CardioTech's press release announcing the purchase (Exhibit 99.1), copies of
which were previously filed in CardioTech's Current Report on Form 8-K dated May
18, 2001, and are incorporated herein by reference.
1.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Financial statements of business acquired.
TABLE OF CONTENTS
Page
----
Independent Auditor's Report 3.
Balance Sheet as of March 31, 2001 4.
Statement of Operations for the 12 Months Ended March 31, 2001 5.
Statement of Parent Company's Investment and Other Comprehensive
Loss for the 12 Months Ended March 31, 2001 6.
Statement of Cash Flows for the 12 Months Ended March 31, 2001 7.
Notes to Financial Statements 8.
2.
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To CMED Catheter and Disposables Technology, Inc.:
We have audited the accompanying balance sheet of CMED Catheter and Disposables
Technology, Inc. (the Company) (a Minnesota corporation and wholly owned
subsidiary of Colorado Medtech, Inc.) as of March 31, 2001 and the related
statement of operations, parent company's investment and other comprehensive
loss and cash flows for the 12 months ended March 31, 2001. 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 audit.
We conducted our audit in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the
audit 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 audit provides 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 CMED Catheter and Disposables
Technology, Inc. as of March 31, 2001 and the results of its operations and its
cash flows for the 12 months ended March 31, 2001 in conformity with accounting
principles generally accepted in the United States.
/s/ Arthur Andersen LLP
Boston, Massachusetts
July 6, 2001
3.
CMED CATHETER AND
DISPOSABLES TECHNOLOGY, INC.
(A Wholly Owned Subsidiary of Colorado Medtech, Inc.)
Balance Sheet
as of March 31, 2001
ASSETS
Current Assets:
Cash and cash equivalents $ 95,020
Accounts receivable, net of allowance of approximately $40,000 661,706
Inventory 67,915
Prepaid expenses and other current assets 757
---------
Total current assets 825,398
---------
Property and Equipment, at cost:
Manufacturing and office equipment 231,539
Computer equipment 128,020
Leasehold improvements 38,019
---------
397,578
Less-Accumulated depreciation and amortization 312,083
---------
85,495
---------
Investments 33,750
---------
$944,643
=========
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable $ 58,213
Accrued expenses 173,308
Customer deposits 199,187
---------
Total current liabilities 430,708
---------
Commitments and Contingencies (Note 4)
Equity:
Parent company investment 523,935
Accumulated other comprehensive loss (10,000)
---------
513,935
---------
Total liabilities and equity $944,643
=========
The accompanying notes are an integral part of these financial statements.
4.
CMED CATHETER AND
DISPOSABLES TECHNOLOGY, INC.
(A Wholly Owned Subsidiary of Colorado Medtech, Inc.)
Statement of Operations
for the 12 Months Ended March 31, 2001
Revenues $ 2,391,691
Cost of Revenues 1,675,940
------------
Gross Profit 715,751
------------
Operating Expenses:
Selling, general and administrative 595,263
Goodwill impairment 1,321,656
------------
Total operating expenses 1,916,919
------------
Loss from operations (1,201,168)
Other Income 16,507
------------
Net Loss Before Income Taxes Benefit (1,184,661)
Income Taxes Benefit 450,000
------------
Net Loss $ (734,661)
============
The accompanying notes are an integral part of these financial statements.
5.
CMED CATHETER AND
DISPOSABLES TECHNOLOGY, INC.
(A Wholly Owned Subsidiary of Colorado Medtech, Inc.)
Statement of Parent Company's Investment and Other
Comprehensive Loss
for the 12 Months Ended March 31, 2001
NET ACCUMULATED
PARENT OTHER
COMPANY COMPREHENSIVE TOTAL COMPREHENSIVE
INVESTMENT INCOME (LOSS) EQUITY LOSS
Balance, March 31, 2000 $ 1,758,736 $ 26,000 $1,784,736
Net activity with parent company (500,140) - (500,140)
Unrealized loss on available-for-sale
investment, net of applicable taxes - (36,000) (36,000) $ (36,000)
Net loss (734,661) - (734,661) (734,661)
------------ --------------- ----------- ---------------
Comprehensive loss for the year
ended March 31, 2001 $ (770,661)
===============
Balance, March 31, 2001 $ 523,935 $ (10,000) $ 513,935
============ =============== ===========
The accompanying notes are an integral part of these financial statements.
6.
CMED CATHETER AND
DISPOSABLES TECHNOLOGY, INC.
(A Wholly Owned Subsidiary of Colorado Medtech, Inc.)
Statement of Cash Flows
For the 12 Months Ended March 31, 2001
Cash Flows from Operating Activities:
Net loss $ (734,661)
Adjustments to reconcile net loss to net cash provided by operating activities-
Depreciation and amortization 56,672
Goodwill impairment 1,321,656
Noncash tax effect of unrealized loss on investment 24,630
Changes in current assets and liabilities:
Accounts receivable (146,931)
Unbilled revenue 64,957
Inventory 43,023
Prepaid expenses and other current assets 10,539
Accounts payable (35,013)
Accrued expenses (128,969)
Customer deposits 106,437
-----------
Net cash provided by operating activities 582,340
-----------
Cash Flows from Investing Activities:
Purchases of property and equipment (22,845)
-----------
Cash Flows from Financing Activities:
Change in parent company investment (500,140)
-----------
Net Increase in Cash and Cash Equivalents 59,355
-----------
Cash and Cash Equivalents, beginning of period 35,665
-----------
Cash and Cash Equivalents, end of period $ 95,020
===========
The accompanying notes are an integral part of these financial statements.
7.
CMED CATHETER AND
DISPOSABLES TECHNOLOGY, INC.
(A Wholly Owned Subsidiary of Colorado Medtech, Inc.)
Notes to Financial Statements
March 31, 2001
(1) OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES
CMED Catheter and Disposables Technology, Inc. (CDT or the Company) was
incorporated in April 1986. CDT specializes in the custom development and
manufacture of unique medical disposable products and the sale of custom
equipment for the manufacture of these products. On May 4, 2001, CardioTech
International, Inc. (Cardiotech), a Massachusetts corporation, completed
the acquisition of all the shares of CDT, from Colorado Medtech, Inc.
(CMED), a Colorado corporation, pursuant to an Acquisition Agreement dated
as of April 30, 2001, by and among Cardiotech, CDT and CMED. The
consideration paid by Cardiotech to CMED was $1,300,000 in a cash payment,
$130,000 of which was placed into escrow for a period of 12 months pursuant
to the terms of the agreement. In connection with this transaction,
Cardiotech acquired certain assets and assumed certain liabilities of CDT.
CDT was a wholly owned subsidiary of Colorado Medtech, Inc. (CMED or
Parent), a public company. These financial statements have been derived
from the consolidated financial statements and accounting records of CMED
using the historical results of operations and historical basis of the
assets and liabilities of CDT. Management believes the assumptions
underlying the financial statements are reasonable. However, the financial
statements included herein may not necessarily reflect CDT's results of
operations, financial position and cash flows in the future or what its
results of operations, financial position and cash flows would have been
had CDT been a stand-alone company during the periods presented.
The financial statements have been prepared in accordance with accounting
principles generally accepted in the United States and include all accounts
that are directly attributable to CDT. Certain of CMED's assets that
benefited more than one of its business segments have not been included in
the accompanying financial statements. However, an allocation of costs
attributable to these assets has been included in the accompanying
statement of operations (see Note 3). CMED uses a centralized approach to
cash management and the financing of its consolidated operations. Changes
in the parent company's investment represent any funding required from CMED
for working capital or capital expenditure requirements after giving effect
to CDT's transfers of its cash flows from operations to or from CMED along
with the recognition of a tax benefit used by the Parent filing taxes on a
consolidated basis (see Note 2).
The accompanying financial statements reflect the application of certain
significant accounting policies as described in this note and elsewhere in
the accompanying financial statements and notes.
(a) CASH EQUIVALENTS
Cash equivalents are stated at cost, which approximates fair market
value, and have maturities of 90 days or less at the date of purchase.
(b) INVESTMENTS
Investments consist of marketable equity securities, which are
classified as available-for-sale and, accordingly, are carried at fair
market value with unrealized gains and losses reflected in other
comprehensive income (loss).
(c) CONCENTRATIONS OF CREDIT RISK, SIGNIFICANT CUSTOMERS AND LIMITED
SUPPLIERS
The financial instruments that potentially subject CDT to
concentrations of credit risk are cash and accounts receivable. CDT
has no significant off-balance-sheet concentrations such as foreign
8.
CMED CATHETER AND
DISPOSABLES TECHNOLOGY, INC.
(A Wholly Owned Subsidiary of Colorado Medtech, Inc.)
exchange contracts, options contracts or other foreign hedging
arrangements. CDT's cash holdings are held in accredited financial
institutions.
For the 12 months ended March 31, 2001, three customers, each of which
contributed more than 10% of revenues, accounted for an aggregate of
61% of revenues. As of March 31, 2001, two customers accounted for an
aggregate of 65% of CDT's accounts receivable balance.
(d) INVENTORIES
Inventories are stated at the lower of cost (first-in, first out) or
market and consist primarily of raw materials at March 31, 2001.
(e) DEPRECIATION AND AMORTIZATION
CDT provides for depreciation and amortization using the straight-line
method and charges to operations amounts estimated to allocate the
cost of the assets over their estimated useful lines, as follows:
ESTIMATED
USEFUL LIFE
Manufacturing and office equipment 5 years
Computer equipment 3 years
Leasehold improvements Life of lease
(f) LONG-LIVED ASSETS
Statement of Financial Accounting Standards (SFAS) No. 121, Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to
Be Disposed Of, requires the Company to continually evaluate whether
events or circumstances have occurred that indicate that the estimated
useful life of its long-lived assets may warrant revision or that the
carrying value of these assets may be impaired. To compute whether
assets have been impaired, the estimated gross cash flows for the
estimated remaining useful life of the assets are compared to the
carrying value. To the extent that the gross cash flows are less than
the carrying value, the assets are written down to the estimated fair
value of the asset.
During the 12 months ended March 31, 2001, due to the continual
operating losses incurred at CDT and the departure of certain key
members of CDT management, the Company evaluated the carrying value of
its goodwill. The evaluation compared the expected future undiscounted
cash flows from CDT to the carrying amount of the goodwill. Based upon
this analysis, it was determined that expected future cash flows from
CDT were negative; therefore, the entire carrying amount of goodwill
was written off as an impairment charge.
(g) REVENUE RECOGNITION
CDT recognizes revenue for nonproprietary products upon shipment of
the related products and recognizes revenues for engineering contract
services as work is performed on a time-and-materials basis and
contract requirements are met provided there is evidence of an
arrangement, the fee is fixed or determinable and collectibility is
probable. Unanticipated losses on engineering contracts are provided
for, in full, when determinable. Customer deposits represent cash
received in advance of revenue recognition.
9.
CMED CATHETER AND
DISPOSABLES TECHNOLOGY, INC.
(A Wholly Owned Subsidiary of Colorado Medtech, Inc.)
(h) ACCUMULATED OTHER COMPREHENSIVE LOSS
CDT applies Financial Accounting Standards Board (FASB) SFAS No. 130,
Reporting Comprehensive Income, and presents such information in the
statement of parent company's investment. The Company's change in
unrealized gain (loss) on available-for-sale investment represents the
single component of accumulated other comprehensive loss of $10,000 at
March 31, 2001.
(i) FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying amounts of CDT's financial instruments, which include
cash equivalents, accounts receivable, accounts payable and accrued
expenses, approximate their fair value.
(j) USE OF ESTIMATES
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management
to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
(k) DISCLOSURES ABOUT SEGMENTS OF AN ENTERPRISE
SFAS No. 131, Disclosures about Segments of an Enterprise and Related
Information, establishes standards for reporting information regarding
operating segments and establishes standards for related disclosures
about products and services and geographic areas. Operating segments
are identified as components of an enterprise about which separate
discrete financial information is available for evaluation by the
chief operating decision maker, or decision making group, in making
decisions regarding resource allocation and assessing performance. To
date, CDT has viewed its operations and manages its business as
principally one operating segment.
10.
CMED CATHETER AND
DISPOSABLES TECHNOLOGY, INC.
(A Wholly Owned Subsidiary of Colorado Medtech, Inc.)
(2) INCOME TAXES
CDT provides for income taxes in accordance with the pro-rate method under
SFAS No. 109, Accounting for Income Taxes. Income tax provisions (benefit)
have been included in the accompanying statement of operations as if CDT
had a tax-sharing arrangement with CMED. However, as CDT was included with
CMED's consolidated income tax returns, income tax payments and deferred
tax items were the responsibility of CMED. Accordingly, tax assets and
liabilities attributable to CDT have been included in the parent company
investment in the accompanying balance sheet.
(3) RELATED PARTY TRANSACTIONS
As indicated in Note 1, CDT was a wholly owned subsidiary of CMED;
consequently, these financial statements have been derived from the
consolidated financial statements and accounting records of CMED and
reflect significant assumptions and allocations.
The statement of operations includes expenses that are allocated to the
Company by the Parent. These expenses include, among other things, support
services such as financial, computer, legal, sales, marketing, customer
support, accounting and executive management advisory functions, as well as
rent and administrative costs. The Company recorded expenses of $66,096
relating to these allocations in the 12 months ended March 31, 2001, which
the Company believes represents arm's-length costs and which are included
in selling, general and administrative in the accompanying statement of
operations.
(4) COMMITMENTS & CONTINGENCIES
The Company is, from time to time, subject to claims arising in the
ordinary course of business. While the outcome cannot be predicted with
certainty, management does not expect these matters to have a material
adverse effect on the consolidated results of operations and financial
condition of the Company.
11.
(b) Pro forma financial information.
TABLE OF CONTENTS
Page
----
Unaudited Pro Forma Condensed Combined Balance Sheet as of March 31, 2001 13.
Unaudited Pro Forma Condensed Combined Statement of Operations for the
12 Months Ended March 31, 2001 14.
Notes to Unaudited Pro Forma Condensed Combined Financial Information 15.
The accompanying pro forma condensed combined financial information are
prepared to illustrate the estimated effects of CardioTech International, Inc.'s
(the "Company" or "CardioTech") acquisition of CMED Catheter and Disposables
Technology, Inc. ("CDT"), accounted for under the purchase method of accounting.
The pro forma condensed combined balance sheet combines CardioTech's March 31,
2001 consolidated balance sheet with CDT's March 31, 2001 balance sheet and
gives effect to the pro forma transactions as if they occurred on March 31,
2001, the last day of the Company's most recently completed fiscal year. The
pro forma condensed consolidated statement of operations for the 12 months ended
March 31, 2001 combines CardioTech's and CDT's historical results for the
respective period and gives effect to the pro forma transactions as if they
occurred on April 1, 2000.
Based on the timing of the closing of the transaction, the finalization of
the integration plans and other factors, the final purchase adjustments may
differ materially from those presented in the pro forma condensed combined
financial information. A final appraisal of the intangibles will be performed as
of the closing date and the allocation adjusted accordingly. The effect of these
adjustments on the results of operations will depend on the nature and amount of
the assets or liabilities adjusted.
The unaudited pro forma condensed combined financial information does not
purport to represent what the consolidated financial position or results of
operations actually would have been if the acquisition, in fact, had occurred on
March 31, 2001 or on April 1, 2000 or to project the consolidated financial
position or results of operations as of any future date or any future period.
CardioTech is developing plans for integration of CDT and has not determined if
there will be any cost savings. This information should be read in conjunction
with historical consolidated financial statements of CardioTech and CDT,
including the related notes and other financial information.
12.
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
MARCH 31, 2001
HISTORICAL
----------------------- PRO FORMA
CARDIOTECH CDT ADJUSTMENTS PRO FORMA
(1) (2) (3) COMBINED
------------ --------- ------------- ------------
ASSETS
Current Assets:
Cash and cash equivalents $ 5,110,000 $ 95,000 $ (1,430,000) (B) (C) $ 3,775,000
Accounts receivable 152,000 662,000 - 814,000
Inventory 74,000 68,000 - 142,000
Other current assets 63,000 1,000 - 64,000
------------ --------- ------------- ------------
Total current assets 5,399,000 826,000 (1,430,000) 4,795,000
Property and equipment, net 330,000 85,000 - 415,000
Cash in escrow 712,000 - - 712,000
Other non-current assets, net 810,000 34,000 - 844,000
Acquired intangibles - - 916,000 (A) 916,000
------------ --------- ------------- ------------
Total Assets $ 7,251,000 $945,000 $ (514,000) $ 7,682,000
============ ========= ============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 382,000 $ 58,000 $ - $ 440,000
Accrued expenses 345,000 174,000 - 519,000
Deferred revenues 92,000 199,000 - 291,000
------------ --------- ------------- ------------
Total Current Liabilities 819,000 431,000 - 1,250,000
Long-term obligations 378,000 - - 378,000
------------ --------- ------------- ------------
Total Liabilities 1,197,000 431,000 - 1,628,000
------------ --------- ------------- ------------
Stockholders' Equity:
Common stock 85,000 - - 85,000
Additional paid-in capital 14,680,000 - - 14,680,000
Net parent company investment - 524,000 (524,000) (D) -
Accumulated deficit (8,226,000) - - (8,226,000)
Accumulated other comprehensive loss - (10,000) 10,000 (D) -
Notes receivable from officers and consultants (445,000) - - (445,000)
------------ --------- ------------- ------------
6,094,000 514,000 (514,000) 6,094,000
Less: Treasury stock, at cost (40,000) (40,000)
------------ --------- ------------- ------------
6,054,000 514,000 (514,000) 6,054,000
------------ --------- ------------- ------------
Total Liabilities and Stockholders' Equity $ 7,251,000 $945,000 $ (514,000) $ 7,682,000
============ ========= ============= ============
13.
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENT OF OPERATIONS
FOR THE 12 MONTHS ENDED MARCH 31, 2001
HISTORICAL
--------------------------
CARDIOTECH CDT PRO FORMA PRO FORMA
(1) (2) ADJUSTMENTS COMBINED
------------ ------------ ------------- ------------
Total Revenues $ 1,543,000 $ 2,392,000 $ - $ 3,935,000
------------ ------------ ------------- ------------
Expenses:
Cost of revenues 914,000 1,676,000 - 2,590,000
Research and development 410,000 - - 410,000
Selling, general and administrative 1,736,000 595,000 - 2,331,000
Goodwill impairment - 1,322,000 (1,322,000) (E) -
Amortization of acquired intangibles - - 183,000 (E) 183,000
------------ ------------ ------------- ------------
3,060,000 3,593,000 (1,139,000) 5,514,000
------------ ------------ ------------- ------------
Loss from operations (1,517,000) (1,201,000) 1,139,000) (1,579,000)
Other income 7,222,000 16,000 - 7,238,000
------------ ------------ ------------- ------------
Net income (loss) before benefit
for income taxes 5,705,000 (1,185,000) 1,139,000 5,659,000
Income taxes benefit - 450,000 (450,000) (F) -
------------ ------------ ------------- ------------
Net income (loss) $ 5,705,000 $ (735,000) $ 689,000 $ 5,659,000
============ ============ ============= ============
Net income (loss) per share:
Basic $ 0.67
============
Diluted $ 0.60
============
Shares used in computing net income
(loss) per share:
Basic 8,424,374
============
Diluted 9,393,742
============
14.
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
NOTE 1. BASIS OF PRESENTATION
The unaudited pro forma condensed combined statements of operations for the
12 months ended March 31, 2001 give effect to the acquisition as if the
transaction had occurred at the beginning of the period presented. The unaudited
pro forma condensed combined balance sheet of March 31, 2001 gives effect to the
acquisition as if it had occurred on March 31, 2001. The unaudited pro forma
condensed combined financial information is based upon a preliminary calculation
of the purchase price and a preliminary purchase price. The unaudited
information will change based upon the actual closing.
Below is a table of the estimated purchase price:
Total
----------
Estimated purchase price:
Cash paid $1,300,000
Estimated acquisition-related fees and expenses 130,000
----------
Total estimated purchase price $1,430,000
==========
Below is a table of the preliminary purchase price allocation:
Total
----------
Estimated purchase price allocation:
Net tangible assets acquired $ 514,000
Acquired intangibles 916,000
----------
Total estimated purchase price allocation $1,430,000
==========
NOTE 2. PRO FORMA ADJUSTMENTS
Adjustments to record the purchase of CDT on the March 31, 2001 unaudited
pro forma condensed combined balance sheet are as follows:
(A) To record acquired intangibles of $916,000.
(B) To record payment of acquirsition related expenses of $130,000.
(C) To record cash paid at acquisition of $1,300,000.
(D) To eliminate equity accounts of CDT.
Adjustments to record amortization of acquired intangibles in the
unaudited pro forma condensed combined statement of operations for the 12 months
ended March 31, 2001:
(E) Elimination of previous goodwill and related amortization and
amortization of acquired intangibles as a result of this
transaction of $183,000.
(F) Elimination of CDT Income tax benefit.
15.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
CardioTech International, Inc. has duly caused this report to be signed on its
behalf by the undersigned thereto duly authorized.
Date: July 17, 2001 CARDIOTECH INTERNATIONAL, INC.
By: /s/ Michael Szycher
--------------------------
Michael Szycher, Ph.D.
Chief Executive Officer
16.