Securities and Exchange Commission
Washington, DC 20549
FORM 8-K Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
August 23, 1996
GREENLAND CORPORATION
(Exact Name of Registrant as specified in its charter)
Nevada
(State or other jurisdiction of incorporation or organization)
017833 87-0439051
(Commission File Number) (I.R.S. Employer Identification Number)
4180 La Jolla Village Drive
Suite 315
La Jolla, CA 92037
(Address and zip code of principal executive offices)
(619) 458-4226
(Registrant's telephone number, including area code)
Item 2. Validity of Assets Related to IVDS Telecommunications Licenses
Management has discovered certain information related to the Interactive Video
and Data Services ("IVDS") telecommunications licenses held by the Company's
wholly-owned ICAN, Inc. subsidiary. The Company currently lists as assets, three
such licenses for Lubbock, Texas, Knoxville, Tennessee, and Olympia, Washington.
The IVDS licenses were acquired by the Company in December, 1995 from Integrated
Communications Access Network, Inc. ("Integrated"). Since the acquisition,
management has considered various strategies related to how the Company would
integrate these assets into its operations and/or sell the licenses to third
parties.
Management has now determined that there may be irregularities related to the
proper transfer of ownership of the licenses, including irregularities on the
transfer of the licenses from the original licensees to Integrated. While
management has not made a final determination of the status of the licenses, the
Company, as of August 22, 1996 has filed suit, in San Diego Superior Court,
against parties that it believes have been legal holders of the licenses or had
fraudulently claimed such status.
While the Company lists the IVDS licenses on its consolidated balance sheet at
this time, pending the outcome of its litigation, the Company may need to write
off the associated assets and corresponding liabilities. The Company has
requested the Court to rescind the transaction. Should the Court decide in favor
of the Company the Company would adjust its consolidated financial statements
accordingly.
Item 7. Financial Statements and Exhibits
(a) Financial Statements.
(a4) Greenland, on its financial reports on Form 10-KSB and 10-QSB, has listed
the IVDS licenses as accounting for assets of $959,432; and associated
liabilities of amounts due to the Federal Communications Commission ("FCC")
of $500,000. To the extent that pending ongoing investigation and
litigation determines these assets to be invalid, then the Company would
need to adjust its financial statements.
Should the Company prevail in its claims in litigation, the assets and
liabilities associated with the IVDS licenses would be removed from the
Company's consolidated balance sheet with the net effect of reducing the
Company's shareholders' equity by approximately $460,000. While the Company
will file its next financial statements at the end of the quarter ending
September 30, 1996 on Form 10-QSB, it is, at this time, undecided as to
whether the Company and its auditors will elect to adjust the Company's
financial statements related to the IVDS licenses at that time.
(c) Exhibits.
None.
Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
GREENLAND CORPORATION
By: /s/ Eric W. Gaer
Eric W. Gaer
President
August 23, 1996
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.
Signature Title Date
/s/ Kevin Smith Chairman of the Board of
Kevin Smith Directors and Chief Executive
Officer August 22, 1996
/s/ Eric W. Gaer President and Chief Operating
Eric W. Gaer Officer August 22, 1996
/s/ Michael H. deDomenico Secretary and Chief Financial
Michael H. deDomenico Officer August 22, 1996