UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 31, 2005
Deli Solar (USA), Inc.
(formerly Meditech Pharmaceuticals, Inc.)
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(Exact name of registrant as specified in its charter)
Nevada 000-12561 95-3819300
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(State of Incorporation) (Commission File No.) (IRS Employer
Identification No.)
558 Lime Rock Road, Lime Rock, Connecticut 06039
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(Address of principal execute offices, including zip code)
(860)435-7000
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(Registrant's telephone number, including area code)
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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[_] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
On June 14, 2005, Deli Solar (USA), Inc. (the "Company") filed a Current
Report on Form 8-K. The pro forma consolidated financial statements of Meditech
Pharmaceuticals Inc. in that 8-K contained some errors in the trial balances of
Meditech and of Deli Solar (BVI). The Meditech balance sheet included a
recording of cash and receivables received from the private placement
transaction. The Deli Solar (BVI) trial balance incorrectly included income of
its subsidiary, Deli Solar (PRC), for the period from acquisition to date, as if
it had been recorded using the equity method. The Company is filing this Current
Report on Form 8-K/A to correct those erroneously recorded transactions. The
Company is also filing this Current Report on Form 8-K/A to present the
recapitalization of Deli Solar (BVI), which includes the effects of the private
placement that took place concurrently with the acquisition of Meditech by Deli
Solar (BVI), as well as an explanation of the private placement and subsequent
reverse stock split.
ITEM 9.01 Financial Statements and Exhibits
INDEX TO FINANCIAL STATEMENTS
MEDITECH PHARMACEUTICALS, INC.
(PRO-FORMA FINANCIAL STATEMENTS)
PRO-FORMA CONSOLIDATED BALANCE SHEET F-1
(UNAUDITED), MARCH 31, 2005.
PRO-FORMA STATEMENTS OF OPERATIONS F-2
(UNAUDITED)FOR THE YEAR
ENDED DECEMBER 31, 2004.
PRO-FORMA STATEMENTS OF OPERATIONS F-3
(UNAUDITED) FOR THE THREE MONTHS
ENDED MARCH 31, 2005.
NOTES TO UNAUDITED PRO-FORMA F-4
CONSOLIDATED FINANCIAL STATEMENTS.
2
MEDITECH PHARMACEUTICALS INC.
PRO-FORMA CONSOLIDATED BALANCE SHEET (UNAUDITED)
MARCH 31, 2005
BVI Private Consolidating Pro-forma
Assets Meditech Deli Solar Placement Entries Consolidated
------------- ---------------- --------------- ---------------- ---------------
Current assets
Cash and cash equivalents $ - $ 1,093,994 $ 5,184,630 $ - $ 6,278,624
Trade accounts receivable - 255,049 255,049
Allowances for doubtful accounts - (88,600) - - (88,600)
------------- ---------------- --------------- ---------------- ---------------
Net trade accounts receivable - 166,449 - - 166,449
Prepaid expenses - 384,164 384,164
Related party receivable - - -
Inventories - 487,470 - - 487,470
------------- ---------------- --------------- ---------------- ---------------
Total current assets - 2,132,077 5,184,630 - 7,316,707
Property, plant and equipment
Buildings - 1,575,401 1,575,401
Machinery and equipment - 42,236 42,236
Vehicles - 61,474 61,474
Computer equipment - 5,818 5,818
Office equipment - 3,512 3,512
Construction in progress - 1,030,199 - - 1,030,199
------------- ---------------- --------------- ---------------- ---------------
Total - 2,718,640 - - 2,718,640
Accumulated depreciation - (131,391) - - (131,391)
------------- ---------------- --------------- ---------------- ---------------
Net property, plant and equipment - 2,587,249 - - 2,587,249
Prepaid land lease - 67,715 - - 67,715
Total other assets - 67,715 - - 67,715
------------- ---------------- --------------- ---------------- ---------------
Total assets $ - $ 4,787,041 $ 5,184,630 $ - $ 9,971,671
============= ================ =============== ================ ===============
Liabilities and stockholders' equity
Current liabilities
Trade accounts payable $ - $ 67,431 $ - $ - $ 67,431
Related party payable - 320,679 320,679
Other payables - 254,607 254,607
Accrued expenses - 668 668
Deposits - 4,962 4,962
Short-term notes payable - 533,213 - - 533,213
------------- ---------------- --------------- ---------------- ---------------
Total current liabilities - 1,181,560 - - 1,181,560
Stockholders' equity
Common stock 359 50,000 - (44,214) 6,145
Additional paid in capital (359) - 5,184,630 44,214 5,228,485
Retained earnings - 3,555,481 - - 3,555,481
------------- ---------------- --------------- ---------------- ---------------
Total stockholders' equity - 3,605,481 5,184,630 - 8,790,111
------------- ---------------- --------------- ---------------- ---------------
Total Liabilities and stockholders' equity $ - $ 4,787,041 $ 5,184,630 $ - $ 9,971,671
============= ================ =============== ================ ===============
See notes to unaudited pro-forma consolidated financial statements.
F-1
MEDITECH PHARMACEUTICALS INC.
PRO-FORMA STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE YEAR ENDED DECEMBER 31, 2004
BVI Consolidating Pro-forma
Assets Meditech Deli Solar Entries Consolidated
------------- ---------------- --------------- ----------------
Sales revenues $ - $ 9,380,246 $ - $ 9,380,246
Cost of goods sold - 6,633,836 - 6,633,836
------------- ---------------- --------------- ----------------
Gross profit - 2,746,410 - 2,746,410
Operating expenses
Advertising - 249,084 - 249,084
Other selling expenses - 86,217 - 86,217
Salaries and benefits - 170,008 - 170,008
Depreciation - 31,471 - 31,471
Other general and administrative 307,936 118,739 - 426,675
------------- ---------------- --------------- ----------------
Total operating expenses 307,936 655,519 - 963,455
------------- ---------------- --------------- ----------------
Net operating income (307,936) 2,090,891 - 1,782,955
Other income (expense)
Interest income 70 - - 70
Interest expense (43) (43)
Gain on asset disposal - (3,971) - (3,971)
Other - 50,148 - 50,148
------------- ---------------- --------------- ----------------
Total other income (expense) 70 46,134 - 46,204
------------- ---------------- --------------- ----------------
Net income before taxes (307,866) 2,137,025 - 1,829,159
Taxes - - - -
------------- ---------------- --------------- ----------------
Net income $ (307,866)$ 2,137,025 $ - $ 1,829,159
============= ================ =============== ================
Pre-split Post-split
Basic EPS $ 0.05 $ 0.30
--------------- ----------------
Diluted EPS $ 0.04 $ 0.23
--------------- ----------------
Denominator for basic EPS 36,850,589 6,145,290
--------------- ----------------
Denominator for diluted EPS 48,164,903 8,031,009
--------------- ----------------
See notes to unaudited pro-forma consolidated financial statements.
F-2
MEDITECH PHARMACEUTICALS INC.
PRO-FORMA STATEMENTS OF OPERATIONS (UNAUDITED)
MARCH 31, 2005
BVI Consolidating Pro-forma
Assets Meditech Deli Solar Entries Consolidated
------------- ---------------- --------------- ----------------
Sales revenues $ - $ 1,199,033 $ - $ 1,199,033
Cost of goods sold - 950,114 - 950,114
------------- ---------------- --------------- ----------------
Gross profit - 248,919 - 248,919
Operating expenses
Advertising - 60,067 - 60,067
Other selling expenses - 6,704 - 6,704
Salaries and benefits - 28,966 - 28,966
Depreciation - 7,221 - 7,221
Other general and administrative 44,041 28,567 - 72,608
------------- ---------------- --------------- ----------------
Total operating expenses 44,041 131,525 - 175,566
------------- ---------------- --------------- ----------------
Net operating income (44,041) 117,394 - 73,353
Other income (expense)
Interest income 23 - - 23
Interest expense (10,857) (10,857)
Gain on debt forgiveness 2,278,158 - (2,278,158) -
------------- ---------------- --------------- ----------------
Total other income (expense) 70 (10,857) (2,278,158) (10,834)
------------- ---------------- --------------- ----------------
Net income before taxes 2,234,140 106,537 (2,278,158) 62,519
Taxes - - - -
------------- ---------------- --------------- ----------------
Net income $ 2,234,140 $ 106,537 $ (2,278,158)$ 62,519
============= ================ =============== ================
Pre-split Post-split
Basic EPS $ - $ 0.01
--------------- ----------------
Diluted EPS $ - $ 0.01
--------------- ----------------
Denominator for basic EPS 36,850,589 6,145,290
--------------- ----------------
Denominator for diluted EPS 48,164,903 8,031,009
--------------- ----------------
See notes to unaudited pro-forma consolidated financial statements.
F-3
MEDITECH PHARMACEUTICALS INC.
NOTES TO UNAUDITED PRO-FORMA CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2005
1. BASIS OF PRESENTATION
The unaudited pro-forma consolidated financial statements include the accounts
of Meditech Pharmaceuticals, Inc. ("Meditech") and Deli Solar Holding Ltd. ("BVI
Deli Solar"). Meditech acquired 100% of the outstanding stock of BVI Deli Solar
in a stock exchange on March 31, 2005 by issuing 24,407,784 shares of common
stock (4,067,964 post-split). The transaction was accounted for as a
recapitalization of BVI Deli Solar with the capital structure of Meditech. Prior
to that, BVI Deli Solar acquired Bazhou Deli Solar Energy Heating Co., Ltd.
("Bazhou Deli Solar") in a transfer of entities under common control, wherein
the prior owners of Bazhou Deli Solar incorporated BVI Deli Solar by investing
registered capital of $50,000 and then transferring their ownership in Bazhou
Deli Solar to BVI Deli Solar in exchange for promissory notes. In a transfer of
entities under common control the transaction is presented as if it had occurred
at the beginning of the first period presented. Thus, the resultant financial
statements will be primarily those of BVI Deli Solar combined with Bazhou Deli
Solar, adopting the capital structure of Meditech.
Meditech is the registrant, a Nevada company incorporated on March 21, 1983.
Meditech has a fiscal year end of May 31. The balance sheet of Meditech on
February 28, 2005, as filed with Form 10-QSB, contained no assets and no
liabilities. The balance sheet of Meditech as of February 28, 2005 is presented
in the pro-forma consolidated balance sheet. The statement of operations of
Meditech for the year ended May 31, 2004, as filed with Form 10-KSB is presented
in the pro-forma consolidated statement of operations for the year ended
December 31, 2004. The statement of operations of Meditech for the three months
ended February 28, 2005, as filed with Form 10-QSB is presented in the pro-forma
consolidated statement of operations for the three months ended March 31, 2005.
During the three months ended February 28, 2005, Meditech had no operations
other than general and administrative expenses. The income from debt forgiveness
will be non-recurring, and has therefore been eliminated on pro-forma
consolidation.
BVI Deli Solar was incorporated in the British Virgin Islands on June 10, 2004,
for the purpose of acquiring and holding Bazhou Deli Solar, and has no other
operations. The consolidated unaudited balance sheet of BVI Deli Solar as of
March 31, 2005 is included in the pro-forma consolidated balance sheet. BVI Deli
Solar's audited consolidated statement of operations for the year ended December
31, 2004 is included in the pro-forma consolidated statement of operations for
the year ended December 31, 2004, and its unaudited consolidated statement of
operations for the three months ended March 31, 2005 is included in the
pro-forma consolidated statement of operations for the three months ended March
31, 2005.
F-4
MEDITECH PHARMACEUTICALS INC.
NOTES TO UNAUDITED PRO-FORMA CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2005
1. BASIS OF PRESENTATION (Continued)
Bazhou Deli Solar was incorporated on August 19, 1997 in the People's Republic
of China (the PRC), and is in the business of manufacturing and selling solar
energy heaters, heating stoves, related accessories, and other solar energy
products within the PRC.
2. CONSOLIDATING ENTRIES
The consolidating entries on the pro-forma consolidated balance sheet agree
common stock to the post-acquisition common shares outstanding multiplied by par
value, with adjustments being made against additional paid in capital accounts.
The consolidating entries on the pro-forma consolidated statement of operations
for the three months ended March 31, 2005 eliminate the effect of a
non-recurring gain on debt forgiveness.
3. PRIVATE PLACEMENT
In conjunction with the acquisition transaction, the Company consummated a
private placement wherein it issued 10,285,740 shares of common stock (1,714,290
post-split) and 5 year warrants to purchase an additional 10,285,740 (1,714,290
post-split) common shares at an exercise price of $0.64167 per share ($3.85
post-split) for gross proceeds of $6,000,015 less costs of issuance of $815,385.
In connection with the private placement the Company issued 1,028,574 (171,429
post-split) 5 year warrants to financial advisors, making outstanding warrants
for a total of 11,314,314 common shares (1,885,719 post-split).
4. SUBSEQUENT REVERSE STOCK SPLIT
Subsequent to the acquisition the Company effected a 1:6 reverse stock split.
The effects of the reverse split have been applied to the pro-forma balance
sheet.
F-5
5. EARNINGS PER SHARE
A reconciliation of the numerators and denominators used in calculating
pre-split and post-split basic and diluted earnings per share is contained in
the following table.
Pre-split Post-split
2005 2004 2005 2004
--------------- ---------------- --------------- --------------
NUMERATOR FOR BASIC AND DILUTED EPS
Net income to common stockholders $ 62,519 $ 1,829,159 $ 62,519 $ 1,829,159
=============== ================ =============== ==============
DENOMINATORS FOR BASIC AND DILUTED EPS
Common stock and outstanding at recapitalization 25,836,797 25,836,797 4,309,658 4,309,658
Add: Common stock issued in private placement 11,013,792 11,013,792 1,835,632 1,835,632
DENOMINATORS FOR BASIC EPS 36,850,589 36,850,589 6,145,290 6,145,290
=============== ================ =============== ==============
Add: Outstanding stock warrants 11,314,314 11,314,314 1,885,719 1,885,719
DENOMINATORS FOR DILUTED EPS 48,164,903 48,164,903 8,031,009 8,031,009
=============== ================ =============== ==============
EPS - Basic $ - $ 0.05 $ 0.01 $ 0.30
EPS - Diluted $ - $ 0.04 $ 0.01 $ 0.23
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F-6
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 hereunto duly authorized.
Date: May 10, 2006 Deli Solar (USA), Inc.
----------------------
(Registrant)
By: /s/ Deli Du
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Deli Du
President and Chief Executive
Officer
9