UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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) FEBRUARY 28, 2003
APPLIED DIGITAL SOLUTIONS, INC.
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(Exact name of registrant as specified in its charter)
Missouri 000-26020 43-1641533
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
400 Royal Palm Way, Suite 410, Palm Beach, Florida 33480
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 561-805-8000
ITEM 5. OTHER EVENTS
Required payment not made by Company under the IBM Credit Agreement.
Under the terms of the Third Amended and Restated Term Credit
Agreement (the "IBM Credit Agreement") with IBM Credit Corporation, Applied
Digital Solutions, Inc. (the "Company") was required to repay IBM Credit
Corporation $29.8 million of the $77.2 million outstanding principal balance
currently owed to them, plus $16.4 million of accrued interest and expenses
(totaling approximately $46.2 million), on or before February 28, 2003. The
Company did not make such payment by February 28, 2003, and IBM Credit
Corporation today notified the Company that it must make such payment on or
prior to March 6, 2003. The Company continues to discuss with IBM Credit
Corporation an amendment to the IBM Credit Agreement. No assurance can be
given that the Company will be successful in these discussions.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
APPLIED DIGITAL SOLUTIONS, INC.
(Registrant)
Date: March 3, 2003 By: /s/ EVAN C. MCKEOWN
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Evan C. McKeown
Vice President and Chief Financial Officer
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