SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Commission File No. 0-28223
Date of Report (Date of earliest event reported): June 25, 2002
ChampionLyte Products, Inc.
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(Exact Name of Registrant as Specified in Its Charter)
Florida 65-0510294
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(State or Other Jurisdiction (I.R.S. Employer
of Incorporation) Identification No.)
1356 N.W. Boca Raton Blvd., Boca Raton, Florida 33432
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(Address of Principal Executive Offices)
(561) 417-6800
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(Registrant's Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events
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As reported in Form 10QSB for the period ending March 31, 2002, the
Company's liquidity at that time was adequate to maintain the Company's
operations for a period of four to six months unless additional capital was
raised by the Company. Since that disclosure, the Company has continued to seek
additional financing from various sources. To date, the Company's efforts in
this regard have been unsuccessful.
The success of the Company's efforts to obtain financing is largely
dependent on the actions of the Company's Series II Preferred Stockholder, US
Bancorp Investments, Inc.("US Bancorp"). US Bancorp has declined to advance
additional capital to the Company. Based on the existing covenants and
restrictions in our agreements with US Bancorp, other entities that might
provide financing to the Company will have to negotiate with US Bancorp on
issues involving dilution, subordination and acceleration. The Company has no
control over those negotiations.
Besides seeking new capital, the Company has taken and continues to
take steps to reduce expenses. Since May 2002, the senior officers of the
Company have deferred all salary and other payments from the Company. The
Company is in the process of renegotiating certain of its agreements with its
co-packers and distributors in an effort to enhance the current cash flow from
the bottling and sale of its products. In addition, the Company continues to cut
back or eliminate other expenses to preserve working capital.
The Company continues to expect to be able to maintain operations
throughout the previously estimated period. However, in the event the Company is
unable to obtain additional financing in the coming months, the Company will
have to curtail operations significantly or find strategic partners with whom to
continue operations.
SIGNATURES
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 thereunto duly authorized.
CHAMPIONLYTE PRODUCTS, INC.
By: /s/ Mark Streisfeld
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Name: Mark Streisfeld
Title: President
Date: June 28, 2002
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