SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K/A
AMENDMENT NO. 1 TO CURRENT REPORT ON FORM 8-K FOR REPORT DATED JULY 20, 2000
PURSUANT SECTION 13 OF 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the periods ended June 30, 2000.
Interruption Television Inc.
--------------------------
(Exact name of small business as specified in its charter)
Nevada 033-22264-FW 33-0840184
--------------------- ------------- ----------------
(State or other jurisdiction Commission File (IRS Employer
of incorporation or organization) Number Identification No.)
43A Tanjong Pagar Road
Singapore 088464
----------------------
(Address of principal executive offices)
(011)(65) 327 1090
------------------
(Issuer's telephone number)
Time Financial Services, Inc.
1040 East Katella, Street, Suite B-1, Orange, California, 92806
-----------------------------------------------------------------
Former Name or Former address
1
The Registrant has previously filed its Current Report on Form 8-K, dated July
20, 2000, without certain financial information required by Item 7 of such Form
8-K. The Registrant hereby amends the Current Report on Form 8-K to file such
financial information. Item 7, subparagraph (a) of the Report dated July 20,
2000, is hereby amended to read as follows:
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
A. FINANCIAL STATEMENTS OF INTERRUPTION TELEVISION PTE LTD
1. Report of Sim Guan Seng & Co. auditors of
Interruption Television Pte Ltd.
2. Balance Sheet as of June 30, 2000
3. Profit and loss accounts for the two years ended June
30, 2000 and 1999
4. Cash flow statements for the two years ended June 30,
2000 and 1999 (UNAUDITED)
5. Statement of Shareholders Equity for the two years
ended June 30, 2000 and 1999 (UNAUDITED)
6. Notes to Financial Statements
B. UNAUDITED FINANCIAL INFORMATION OF INTERRUPTION TELEVISION PTE LTD
1. Balance Sheet as of June 30, 2000 (UNAUDITED AND
RECONCILED TO US GAAP)
2. Profit and loss accounts for the two years ended June
30, 2000 and 1999 (UNAUDITED AND RECONCILED TO US
GAAP)
3. Cash flow statements for the two years ended June 30,
2000 and 1999 (UNAUDITED)
4. Statement of Shareholders Equity for the two years
ended June 30, 2000 and 1999 (UNAUDITED)
2
SIGNATURES
Pursuant to the requirements of the Exchange Act, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Interruption Television Pte. Limited
(Registrant)
Date: October 30, 2001 /S/ Danny McGill
----------------------------------
Danny McGill, President and CEO
Date: October 30, 2001 /S/ Jeffrey Lim
----------------------------------
Jeffrey Lim, Director
3
INTERRUPTION TELEVISION PTE LTD
FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2000
16 Sept 2000
AUDITOR'S REPORT TO THE MEMBERS OF
INTERRUPTION TELEVISION PTE LTD
(INCORPORATED IN SINGAPORE)
We have audited the accompanying balance sheet of Interruption Television Pte
Ltd as of 30 June 2000, and the profit and loss account for the period then
ended. These financial statements are the responsibility of the Company's
directors. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with Singapore Standards on Auditing. 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 the
directors and 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:
a. The financial statements are properly drawn up in accordance
with the provisions of the Companies Act, Cap. 50 and
Statements of Accounting Standard and so as to give a true and
fair view of:
a. The state of affairs of the Company as of 30 June 2000 and of
the results of the Company for the period then ended; and
b. The other matters required by Section 201 of the Act to be
dealt with in the financial statements.
b. The accounting and other records, and the registers required
by that Act to be kept by the Company have been properly kept
in accordance with the provisions of that Act.
/s/ Sim Guan Seng & Co.
-----------------------
Sim Guan Seng & Co
Certified Public Accountant
Singapore
4
INTERRUPTION TELEVISION PTE LTD
(Incorporated in the Republic of Singapore)
BALANCE SHEET - 30 JUNE 2000
(Expressed in Singapore Dollars)
Note 2000
---
SHARE CAPITAL AND RESERVES
Share capital 3 $ 557,592
Accumulated (losses) profits (900,701)
----------------
$ (343,109)
================
Represented by:
Fixed assets 4 $ 48,578
Deferred expenditure 5 721,210
CURRENT ASSETS
Cash $ 174,388
Trade debtors 6 177,661
Other debtors, deposits and prepayment 7 27,181
Amount due from a director 8 275,601
----------------
$ 654,831
----------------
Less
CURRENT LIABILITIES
Bank overdraft $ -
Trade creditors 9 374,712
Other creditors and accrual 10 31,876
Progress billings 9,653
Loans from third parties (secured) 11 513,187
Amount due to a shareholder 12 7,300
Provision for taxation 140,000
----------------
$ 1,076,728
----------------
NET CURRENT (LIABILITIES) ASSETS $ (421,897)
NON-CURRENT LIABILITIES
Loan from ITV, Inc. 13 (691,000)
----------------
$ (343,109)
================
Shareholders Equity as shown on the
financial statements $ (343,109)
Material variation in balance sheet -
reclassification of amount due from a
director to additional paid in capital, a
component of shareholders equity. (275,601)
----------------
Shareholders equity according to
generally accepted accounting principles in
the United States $ (618,710)
================
5
INTERRUPTION TELEVISION PTE LTD
(Incorporated in the Republic of Singapore)
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 30 JUNE 2000
(Expressed in Singapore Dollars)
Note 2000 1999
---- ------------------ -----------------
(LOSS) PROFIT BEFORE TAXATION 15 $ (1,260,566) $ 564,452
TAXATION 16 10,000 (150,000)
------------------ -----------------
(LOSS) PROFIT AFTER TAXATION $ (1,250,566) $ 414,452
Accumulated profits (losses), at beginning of year 349,865 (64,587)
------------------ -----------------
Accumulated (losses) profits, at end of year $ (900,701) $ 349,865
================== =================
The accompanying notes form an integral part of and should be read in
conjunction with these accounts.
6
INTERRUPTION TELEVISION PTE LTD
(Incorporated in the Republic of Singapore)
NOTES TO THE ACCOUNTS - 30 JUNE 2000 AND 1999
(Expressed in Singapore Dollars)
These notes form an integral part of and should be read in conjunction with the
accompanying accounts.
1. PRINCIPAL ACTIVITIES
The principal activities of the Company are to provide talent for media
industries and produce commercials and television programs. There have
been no significant changes in the nature of these activities during
the year.
During the financial period, the Company changed its financial year-end
from 31 March 2000 to 30 June 2000.
Subsequent to the end of financial year, the Company became a
wholly-owned subsidiary company of Interruption Television Inc., a
company incorporated in Nevada.
2. SIGNIFICANT ACCOUNTING POLICIES
a) Basis of accounting
The accounts have been prepared in accordance with the historical cost
convention.
b) Foreign currency transactions
Foreign currency transactions are converted at exchange rates
approximating those ruling at transaction dates. Foreign currency
monetary assets and liabilities as at year-end are converted at rates
of exchange approximating those ruling at that date. Exchange
differences are recognised in the profit and loss account currently.
c) Taxation
The tax expense is determined on the basis of tax effect accounting
using the liability method and it is applied to all significant timing
differences which arise from the differences in accounting and tax
treatment of certain income and expense items. A deferred tax benefit
is not recognised in the accounts unless there is reasonable
expectation of realisation.
7
d) Depreciation
Depreciation is calculated using the straight-line method so as to
write off the fixed assets over their estimated useful lives as
follows:
No of years
-----------
Office equipment 5
Furniture and fixtures 5
Leasehold improvements 5
Fully depreciated assets are retained in the accounts until they are no
longer in use. Any gain or loss on disposal of fixed assets is
recognised in the profit and loss account currently.
e) Revenue recognition
Income from production of commercials is recognised upon the delivery
of the commercials and acceptance by customers.
Income from licensed programs is recognised upon commencement of
licence period which generally coincides with the customer's
acceptance.
f) Deferred expenditure
Deferred expenditure comprises materials, direct labour,
subcontractors' cost and an appropriate proportion of production
overheads. These expenditure are amortised over 5 years commencing from
the date of commercial production.
Any deferred expenditure that cannot reasonably be expected to be
recovered from related future revenue is written-off to the profit and
loss account.
8
3. SHARE CAPITAL
2000 1999
---- ----
Authorised Share Capital
------------------------
2,000,000 (1999: 100,000) ordinary shares of $1.00 each $ 2,000,000 $ 100,000
============== ============
Issued and fully paid
---------------------
Balance at beginning of year $ 92 $ 6
Issue of 557,500 (1999: 86) ordinary shares of $1.00 each 557,500 86
-------------- ------------
Balance at end of year $ 557,592 $ 92
============== ============
During the financial year, the Company increased its authorised capital
from $100,000 divided into 100,000 ordinary shares of $1.00 each to
$2,000,000 divided into 2,000,000 ordinary shares of $1.00 each. The
Company then issued 557,500 ordinary shares of $1.00 each at par for
cash to provide for working capital.
4. FIXED ASSETS
Furniture
Office and Leasehold
Cost equipment fixtures Improvements Total
---- --------- -------- ------------ -----
At 1.4.1999 $ 22,711 $ 22,843 $ 4,314 $ 49,868
Additions 20,848 - - 20,848
Disposals - - - -
--------------- -------------- --------------- ---------------
At 30.6.2000 $ 43,559 $ 22,843 $ 4,314 $ 70,716
=============== ============== =============== ===============
Accumulated depreciation
------------------------
At 1.4.1999 $ 3,428 $ 3,847 $ 719 $ 7,994
Depreciation
for the year 8,712 4,569 863 14,144
Disposals - - - -
--------------- -------------- --------------- ---------------
At 30.6.2000 $ 12,140 $ 8,416 $ 1,582 $ 22,138
=============== ============== =============== ===============
Depreciation
for 1999 $ 4,970 $ 3,847 $ 719 $ 9,536
=============== ============== =============== ===============
Net book value
--------------
Prior Year $ 19,283 $ 18,996 $ 3,595 $ 41,874
=============== ============== =============== ===============
Current Year $ 31,419 $ 14,427 $ 2,732 $ 48,578
=============== ============== =============== ===============
9
5. DEFERRED EXPENDITURE
2000 1999
---- ----
Balance at beginning of period $ 206,758 $ -
Current year 514,452 206,758
------------- --------------
Balance at end of period $ 721,210 $ 206,758
============= ==============
6. TRADE DEBTORS
This amount is arrived at after provision for bad debts of $16,872
(1999: Nil).
7. OTHER DEBTORS, DEPOSITS AND PREPAYMENT
2000 1999
---- ----
Other debtors $ 8,126 $ 5,100
Deposits 18,980 11,472
Prepayment - 401
------------- --------------
$ 27,181 $ 16,973
============= ==============
8. AMOUNT DUE FROM A DIRECTOR
This amount is unsecured, interest-free and with no fixed term of
repayment.
9. TRADE CREDITORS
Included in trade creditors is $24,486 (1999: Nil) owing from a company
in which one of the directors has an interest.
10. OTHER CREDITORS AND ACCRUAL
2000 1999
---- ----
Other creditors $ 25,076 $ 68,837
Accrual 6,800 8,897
------------- --------------
$ 31,876 $ 77,734
============= ==============
10
11. LOANS FROM THIRD PARTIES (SECURED)
These loans are interest-free and secured by the assignment of the
company's book debts.
12. AMOUNT DUE TO A SHAREHOLDER
This amount is unsecured, interest-free and with no fixed term of
repayment.
13. LOAN PAYABLE TO ITV, INC.
This amount is unsecured, interest free and with no fixed term of
repayment.
14. DEFERRED TAXATION
2000 1999
---- ----
Balance at beginning of year $ 10,000 $ -
Transfer (to) from profit and
loss account (Note 14) (10,000) 10,000
------------- --------------
Balance at end of year $ - $ 10,000
============= ==============
15. The (loss_ profit before taxation was determined after charging
(crediting) the following items:
2000 1999
---- ----
$ $
Auditors renumeration 4,000 3,000
Bad debts written off 5,100 -
Depreciation of fixed assets 14,144 9,536
Directors' renumeration 122,500 146,000
Loss (gain) on exchange 857 (17,709)
Provision for bad debts 16,872 -
Rental of premises 86,933 27,891
Rental of equipment 14,030 27,000
(Gain) on disposal of fixed assets - (2,903)
11
16. TAXATION
The income tax expense comprises:
2000 1999
---- ----
Current taxation - current year $ - $ (140,000)
Deferred taxation - current year (Note 12) 10,000 (10,000)
------------- ------------
$ 10,000 $ (150,000)
============= ============
There was no current year tax payable as the Company was in a tax loss
position.
At balance sheet date, the Company has unutilised capital allowances
and unabsorbed tax losses amounting to approximately $25,000 (1999:
Nil) and $900,000 (1999: Nil) which are available for offsetting
against future profits subject to agreement by the Comptroller of
Income Tax.
Deferred tax benefit has not been recognised in respect of these
capital allowances and tax losses due to uncertainty of realisation.
17. OPERATING LEASE COMMITMENTS
At balance sheet, the Company has the following outstanding lease
commitments in respect of its office premise payable approximately as
follows:
2000 1999
---- ----
Within one year $ 10,000 $ 67,000
After one year (10,000) 28,000
----------- -----------
$ - $ 95,000
=========== ===========
12
18. PRIOR YEAR'S COMPARATIVES
The prior year's comparatives were from 1 April 1998 to 31 March 1999.
Certain prior year's comparatives have been reclassified to conform
with current year's presentation.
19. RECONCILIATION TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN THE
UNITED STATES (UNAUDITED)
The financial statements have been prepared accordance with the
provisions of the Companies Act, Cap. 50 and Statements of Accounting
Standard ("SAS") of Singapore. Financial statements prepared in
accordance with SAS do not materially differ from statements prepared
in accordance with U.S. GAAP except in the manner of presentation and
the treatment of certain transactions with officers and shareholders.
The following unaudited balance sheet, unaudited profit and loss
statement, unaudited statement of cash flows and unaudited statement of
stockholders' equity have been adjusted or reconciled to present the
financial information in accordance with U.S. GAAP.
13
INTERRUPTION TELEVISION PTE LTD
UNAUDITED FINANCIAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2000
INTERRUPTION TELEVISION PTE LTD
(Incorporated in the Republic of Singapore)
BALANCE SHEET - 30 JUNE 2000
RECONCILED TO US GAAP
(Expressed in Singapore Dollars)
Note 2000
----
SHARE CAPITAL AND RESERVES
Share capital 3 $ 557,592
Accumulated (losses) profits (900,701)
----------------
$ (343,109)
================
Represented by:
Fixed assets 4 $ 48,578
Deferred expenditure 5 721,210
CURRENT ASSETS
Cash $ 174,388
Trade debtors 6 177,661
Other debtors, deposits and prepayment 7 27,181
Amount due from a director 8 275,601
----------------
$ 654,831
----------------
Less
CURRENT LIABILITIES
Bank overdraft $ -
Trade creditors 9 374,712
Other creditors and accrual 10 31,876
Progress billings 9,653
Loans from third parties (secured) 11 513,187
Amount due to a shareholder 12 7,300
Provision for taxation 140,000
----------------
$ 1,076,728
----------------
NET CURRENT (LIABILITIES) ASSETS $ (421,897)
NON-CURRENT LIABILITIES
Loan from ITV, Inc. 13 (691,000)
----------------
$ (343,109)
================
Shareholders Equity as shown on the financial statements $ (343,109)
Material variation in balance sheet -
reclassification of amount due from a
director to additional paid in capital, a
component of shareholders equity. (275,601)
----------------
Shareholders equity according to generally
accepted accounting principles in
the United States $ (618,710)
================
14
INTERRUPTION TELEVISION PTE LTD
(Incorporated in the Republic of Singapore)
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 30 JUNE 2000
ADJUSTED AND RECONCILED TO US GAAP
(Expressed in Singapore Dollars)
Note 2000 1999
---- ----------------- ---------------
REVENUE $ 277,849 $ 1,304,934
Production costs (787,671) (335,198)
Payroll costs (91,335) (74,371)
Depreciation of fixed assets (14,144) (9,536)
Administrative expenses (411,265) (321,377)
----------------- ---------------
(LOSS) PROFIT BEFORE TAXATION $ (1,260,566) $ 564,452
TAXATION 14 10,000 (150,000)
----------------- ---------------
(LOSS) PROFIT AFTER TAXATION 15 $ (1,250,566) $ 414,452
Accumulated profits (losses), at beginning of year 349,865 (64,587)
----------------- ---------------
Accumulated (losses) profits, at end of year $ (900,701) $ 349,865
================= ===============
Net (loss) income as shown in the
financial statements $ (1,250,566) $ 414,452
Items having an effect on reported income - -
----------------- ---------------
Net (loss) income according to
generally accepted accounting
principles in the United States $ (1,250,566) $ 414,452
================= ===============
15
INTERRUPTION TELEVISION INC
---------------------------------------------------
STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED)
-----------------------------------------------------------
FOR THE YEAR ENDED JUNE 30, 2000
(Amounts expressed in Singapore Dollars)
Retained Total Stockholders
Due from earnings Equity/
Common Stock Director (deficit) (Deficit)
------------ ------------ --------------- ----------------- ------------------
Shares Par Value
------------ ------------
Beginning balance 6 $ 6 $ $ (64,587) $ (64,581)
Issuance of common stock at
par value 86 86
Net income 414,452 414,452
------------ ------------ --------------- ----------------- ------------------
Balance at June 30, 1999 92 92 349,865 349,865
Issuance of common stock at
par value 557,500 557,500
Net loss (1,250,566) (1,250,566)
------------ ------------ --------------- ----------------- ------------------
Balance at June 30, 2000 557,592 $ 557,592 $ $ (900,701) $ (343,109)
============ ============ =============== ================= ==================
Adjustment to US GAAP (275,601) (275,601)
--------------- ------------------
Balance at June 30, 2000 (U.S.
GAAP) 557,592 557,592 $ (275,601) $ (900,701) $ (618,710)
============ ============ =============== ================= ==================
16
INTERRUPTION TELEVISION PTE LTD
(Incorporated in the Republic of Singapore)
CASH FLOW STATEMENT
(UNAUDITED)
FOR THE YEAR ENDED 30 JUNE 2000 AND 1999
2000 1999
---- ----
Note
----
CASH FLOW FROM OPERATING ACTIVITIES
(Loss) profit before taxation $(1,260,566) $ 564,452
Adjustment for:
Gain on disposal of fixed assets - (2,903)
Provision for bad debts 16,872 -
Depreciation of fixed assets 14,144 9,536
------------ ------------
Operating (loss) profit before working capital changes $(1,229,550) $ 571,085
Decrease (increase) in operating assets:
Trade debtors 119,103 (585,396)
Other debtors, deposits and prepayments (2,553) (13,609)
Increase (decrease) in operating liabilities:
Trade creditors 87,632 181,768
Other creditors and accrual 34,428 62,719
Progress billings (20,000) 20,000
Deferred taxation (10,000) 0
Bank overdraft (1,711) 1,711
------------ ------------
Net cash (used in) generated from operating activities $(1,017,545) $ 238,278
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets $ (20,848) $ (45,689)
Capitalized production costs (615,013) (206,758)
Proceeds from disposal of fixed assets - 5,595
------------ ------------
Net cash generated from (used in) investing activities $ (635,861) $ (246,852)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares $ 557,500 $ 86
Amount due from director 199,820 (75,806)
Loans from third parties and shareholders 641,876 71,311
------------ ------------
Net cash generated from financing activities $ 1,399,196 $ (4,409)
------------ ------------
NET INCREASE (DECREASE) IN CASH $ 82,419 $ (12,983)
CASH AT BEGINNING OF YEAR 480 13,463
------------ ------------
CASH AT END OF YEAR $ 82,899 $ 480
============ ============
The accompanying notes form an integral part of and should be read in
conjunction with these accounts.
17