SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________
Form 8-K/A
Current Report
Pursuant to Section 13 or 15(d) of
Securities Exchange Act of 1934
Date of report: December 8, 2003
(Date of earliest event reported)
Commission file number 000-26213
Arc Communications Inc.
(Exact Name of Registrant as specified in its charter)
New Jersey 22-3201557
(State of Incorporation) (IRS Identification No.)
788 Shrewsbury Avenue
Tinton Falls, New Jersey 07724
732/219-1766
(Registrant's Address, including ZIP Code and telephone number)
Explanatory Note
The undersigned registrant hereby amends its Current Report on Form 8-K
filed on December 23, 2003 to provide the financial statements required by Item
7(b) of Form 8-K.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits:
(b) Pro Forma Financial Statements of the Registrant.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Company has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Arc Communications Inc.
-----------------------
(Registrant)
By: /s/ Peter Bordes
----------------------------
Peter Bordes
Chairman and
Chief Executive Officer
Date: February 23, 2004
Arc Communications, Inc.
Pro Forma Balance Sheet
September 30, 2003
Pro Forma
Arc RoomLinx Adjustments Pro Forma
---------- ------------ ---------- -----------
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents $ 30,000 30,000
Accounts Receivable- net 235,000 255,000 490,000
Inventory 48,000 48,000
Prepaid Expenses 18,000 18,000
Other Receivables 2,000 2,000
Due from sale of continuing professional segment 100,000 100,000
0
---------- ------------ ---------- -----------
Total Current Assets 367,000 321,000 - 688,000
---------- ------------ ---------- -----------
PROPERTY AND EQUIPMENT-NET 98,000 291,000 389,000
OTHER ASSETS
Security Deposits 16,000 16,000
---------- ------------ ---------- -----------
Total Other Assets 114,000 291,000 0 405,000
---------- ------------ ---------- -----------
TOTAL ASSETS $ 481,000 $ 612,000 - 1,093,000
========== ============ ========== ===========
LIABILITIES AND STOCKHOLDERS EQUITY (CAPITAL DEFICIENCY)
CURRENT LIABILITIES
Line of Credit $ 126,000 126,000
Accounts Payable and Accrued Expenses 287,000 547,000 834,000
Deferred revenue 44,000 44,000
Due to related parties 71,000 110,000 (182,000) 1 (1,000)
Current portion of obligations under capital lease 217,000 217,000
Loans payable 70,000 70,000
---------- ------------ ---------- -----------
Total Current Liabilities 484,000 988,000 (182,000) 1,290,000
---------- ------------ -----------
Convertible debentures, net of current portion 360,000 (360,000) 1
---------- ------------ ---------- -----------
Total Current Liabilities 484,000 1,348,000 (542,000) 1,290,000
---------- ------------ ---------- -----------
Preferred Stock, Stated Value $.20; 5,000,000 Shares Authorized;
Issued and Outstanding 720,000 Shares
144,000 144,000
Common Stock, $.001 Par Value, Authorized 45,000,000 shares
(250,000,000 pro forma, issued and outstanding
14, 984,459 shares; pro forma 59,937,836 shares 15,000 15,000 30,000 2 60,000
Additional Paid in Capital 1,428,000 4,516,000 542,000 1 4,866,000
- -
(30,000) 2
(1,590,000)3
Accumulated Deficit (1,590,000) (5,267,000) 1,590,000 3 (5,267,000)
---------- ------------ ---------- -----------
EQUITY (CAPITAL DEFICIENCY) (3,000) (736,000) 542,000 (197,000)
---------- ------------ ---------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $ 481,000 612,000 - 1,093,000
========== ============ ========== ===========
Arc Communications, Inc
Pro Forma Statement of Operations
For the Nine Months Ended September 30, 2003
Pro Forma
Arc RoomLinx Adjustments Pro Forma
------------ ------------ ------------ ------------
REVENUES
System sales and installation $ 1,085,000 1,085,000
Service, maintenance and usage 348,000 348,000
Multimedia 638,000 (638,000)a
------------ ------------ ------------ ------------
Total Revenue 638,000 1,433,000 (638,000) 1,433,000
------------ ------------ ------------ ------------
COSTS AND EXPENSES
System sales, installation and service 928,000 928,000
Operating Costs 125,000 (125,000)a 0
Selling, General and Administrative 472,000 382,000 (372,000)a 482,000
Development 430,000 430,000
Depreciation and Amortization 51,000 82,000 (51,000)a 82,000
------------ ------------ ------------ ------------
Total Costs and Expenses 648,000 1,822,000 (548,000) 1,922,000
------------ ------------ ------------ ------------
OTHER EXPENSES
Foreign exchange 60,000 60,000
Interest Expense 12,000 (12,000)a 0
Non-cash financing costs 48,000 48,000
------------ ------------ ------------ ------------
Total Other Expense 12,000 108,000 (12,000) 108,000
------------ ------------ ------------ ------------
LOSS FROM CONTINUING OPERATIONS (22,000) (497,000) (78,000) (597,000)
============ ============
Preferred stock dividend imputed (13,000) (13,000)
------------ ------------
Loss from comtinuing operations
attributable to common stockhaolders (35,000) (610,000)
============ ============
Weighted Average Number of Shares Outstanding 14,984,000 44,952,000 b 59,936,000
BASIC AND DILUTED
LOSS PER COMMON SHARE (0.00) (0.01)
============ ============
NOTES TO PRO FORMA FINANCIAL STATEMENTS
September 30, 2003
1. Prior to the consummation of the merger, the RoomLinx convertible
debentures and due from related parties will be converted to RoomLinx
common stock
2. All outstanding shares of RoomLinx common stock will be converted into
44,953,377 shares of the Company's common stock (subject to an adjustment
for Arc common stock issued after September 30, 2003).
3. Elimination of the Company's accumulated deficit since the transaction will
be accounted for as a reverse acquisition whereby RoomLinx will be the
accounting acquirer.
a. In connection with the merger, the Company will liquidate its current
operations accordingly; all income and non-corporate expenses have
been eliminated.
b. The weighted average shares outstanding have been adjusted to reflect
the shares to be issued as a result of the merger transaction, shares
issued in the private placement and as a result of the exercise of
stock options.
Arc Communications, Inc.
Pro Forma Balance Sheet
December 31, 2002
Pro Forma
Arc RoomLinx Adjustments Pro Forma
------------ -------------- ------------- --------------
ASSETS
CURRENT ASSETS
Accounts Receivable- net 126,000 199,000 325,000
Prepaid Expenses 1,000 15,000 16,000
Assets of discontinued operations 16,000 (16,000) 1 0
------------ -------------- ------------- --------------
Total Current Assets 143,000 214,000 (16,000) 341,000
------------ -------------- ------------- --------------
PROPERTY AND EQUIPMENT-NET 142,000 358,000 500,000
OTHER ASSETS
Security Deposits 15,000 15,000
------------ -------------- ------------- --------------
Total Other Assets 157,000 358,000 0 515,000
------------ -------------- ------------- --------------
TOTAL ASSETS $ 300,000 $ 572,000 (16,000) 856,000
============ ============== ============= ==============
LIABILITIES AND STOCKHOLDERS EQUITY (CAPITAL DEFICIENCY)
CURRENT LIABILITIES
Line of Credit $ 295,000 295,000
Due to offiers/stockholders 74,000 74,000
Accounts Payable and Accrued Expenses 294,000 279,000 573,000
Deferred revenue 70,000 70,000
Due to related parties 123,000 (123,000) 2 -
Current portion of obligations under capital lease 179,000 179,000
Liabilites of discontinued operations 83,000 (83,000) 1 -
------------ -------------- ------------- --------------
Total Current Liabilities 746,000 651,000 (206,000) 1,191,000
Long term portion of obligations under capital lease 8,000 8,000
Convertible debentures, net of current portion 200,000 (200,000) 2 0
------------ -------------- ------------- --------------
Total Liabilities 746,000 859,000 (406,000) 1,199,000
------------- --------------
Preferred Stock, Stated Value $.20; 5,000,000 Shares Authorized;
Issued and Outstanding 720,000 Shares
144,000 144,000
Common Stock, $.001 Par Value, Authorized 45,000,000 shares
(250,000,000 pro forma, issued and outstanding
14, 984,459 shares; pro forma 59,937,836 shares 15,000 15,000 30,000 3 60,000
Additional Paid in Capital 1,428,000 4,468,000 323,000 2 4,223,000
- -
(30,000) 3
67,000 1
(2,033,000) 4
Accumulated Deficit (2,033,000) (4,770,000) 2,033,000 4 (4,770,000)
------------ ------------- --------------
EQUITY (CAPITAL DEFICIENCY) (446,000) (287,000) 390,000 (343,000)
------------ -------------- ------------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $ 300,000 572,000 (16,000) 856,000
============ ============== ============= ==============
Arc Communications, Inc
Pro Forma Statement of Operations
For the Year Ended December 31, 2002
Pro Forma
Arc RoomLinx Adjustments Pro Forma
----------- ----------- ----------- -----------
REVENUES
System sales and installation $ 305,000 305,000
Service, maintenance and usage 313,000 313,000
Multimedia 1,057,000 (1,057,000)a
----------- ----------- ----------- -----------
Total Revenue 1,057,000 618,000 (1,057,000) 618,000
----------- ----------- ----------- -----------
COSTS AND EXPENSES
System sales, installation and service 356,000 356,000
Operating Costs 102,000 (102,000)a 0
Selling, General and Administrative 1,319,000 324,000 (1,099,000)a 544,000
Development 493,000 493,000
Depreciation and Amortization 105,000 150,000 (105,000)a 150,000
----------- ----------- ----------- -----------
Total Costs and Expenses 1,526,000 1,323,000 (1,306,000) 1,543,000
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSES)
Forgiveness of Debt 37,000 37,000
Loss on disposal of capital assets (26,000) (26,000)
Foreign exchange 22,000 22,000
Interest income 2,000
Interest Expense (27,000) (27,000)a 0
Non-cash financing costs 37,000 (65,000) (65,000)
----------- ----------- ----------- -----------
Total Other Expense 12,000 (32,000) (27,000) (32,000)
LOSS FROM CONTINUING OPERATIONS (457,000) (737,000) 222,000 (957,000)
Benefit for income taxes 15,000 (15,000)a
----------- ----------- ----------- -----------
LOSS FROM CONTINUING OPERATIONS (442,000) (737,000) 207,000 (957,000)
=========== ===========
Preferred stock dividend imputed (13,000) (13,000)
----------- -----------
Loss from comtinuing operations
attributable to common stockhaolders (455,000) (970,000)
=========== ===========
Weighted Average Number of Shares
Outstanding 14,775,000 44,953,000 b 59,728,000
BASIC AND DILUTED
LOSS PER COMMON SHARE (0.03) (0.02)
=========== ===========
NOTES TO PRO FORMA FINANCIAL STATEMENTS
December 31, 2002
1. Elimination of the assets and liabilities attributable to the discontinued
operations.
2. Prior to the consummation of the merger, the RoomLinx convertible
debentures and due from related parties will be converted to RoomLinx
common stock
3. All outstanding shares of RoomLinx common stock will be converted into
44,953,377 shares of the Company's common stock (subject to an adjustment
for Arc common stock issued after December 31, 2002).
4. Elimination of the Company's accumulated deficit since the transaction will
be accounted for as a reverse acquisition whereby RoomLinx will be the
accounting acquirer.
a. In connection with the merger, the Company will liquidate its current
operations accordingly; all income and non-corporate expenses have
been eliminated.
b. The weighted average shares outstanding have been adjusted to reflect
the shares to be issued as a result of the merger transaction, shares
issued in the private placement and as a result of the exercise of
stock options.