8-K 1 form8k030602.txt FORM 8-K - 03/06/02 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 Date of Report (Date of earliest event reported): March 6, 2002 VIZACOM INC. (Exact name of registrant as specified in its charter) Delaware 1-14076 22-3270045 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification Number) 3512 Veterans Memorial Highway Bohemia, New York 11716 (Address of principal executive offices) (Zip Code) (631) 981-5500 (Registrant's telephone number, including area code) Item 5. Other Events. ------------ On March 1st, 2002, SpaceLogix, Inc., a wholly-owned subsidiary of Vizacom, Inc., entered into a Solutions Provider Agreement with MCIWorldcom (NASDAQ: WCOM). SpaceLogix will provide professional services for certain clients that either currently or in the future will house, locate, or co-locate their data in MCIWorldcom's data centers worldwide. SpaceLogix's engineers will size, configure, and manage technical solutions for such e-commerce and legacy systems, based upon the stated service level agreements. In return, SpaceLogix will receive compensation for referrals to MCIWorldcom based on criteria set forth in its agreement with MCIWorldcom. In addition, SpaceLogix will be eligible for discounts on certain software and hardware sold through MCIWorldcom. 2 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: March 8, 2002 VIZACOM INC. By: /s/ Alan W. Schoenbart ---------------------- Alan W. Schoenbart Chief Financial Officer 3

ASSETS Current Assets Cash $ 308,335 Accounts receivable 25,000 Subscriptions receivable 5,902 Notes receivable 250,000 ------------- Total current assets $ 589,237 ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable and accrued expenses $ 104,143 ------------- Total current liabilities 104,143 ------------- Commitments and contingencies Shareholders' Equity Preferred Stock Series A, $.01 par value; authorized 1,500,000 shares; issued and outstanding 903,000 shares 9,030 Series B, $.01 par value; authorized 1,500,000 shares; no shares issued - Common stock, $.01 par value; authorized 5,000,000 shares; issued 25,000 shares; subscribed 900,402 shares 9,254 Additional paid-in capital 790,895 Deficit (320,983) ------------ Total 488,196 Less: Subscriptions receivable 3,102 ------------- Total shareholders' equity 485,094 ------------ Total liabilities and shareholder's equity $ 589,237 ============

Net sales $ 25,000 Operating expenses 345,983 ------------- Net loss $ (320,983) =============

Number of Number of Shares - Series A Additional Less: Shares - Common Series A Preferred Paid-In Subscriptions Common Stock Stock Preferred Stock Stock Capital Deficit Receivable Total ------------ --------- ----------- ----------- --------- -------------- ------- Balance, April 26, 2001 - $ - - $ - $ - $ - $ - $ - Common stock subscribed 900,428 9,004 - - - - - 9,004 Less: Subscriptions receivable - - - - - - (3,102) (3,102) Issuance of Series A preferred stock, net of offering costs of $127,825 - - 903,000 9,030 766,145 - - 775,175 Issuance of common stock 25,000 250 - - 24,750 - - 25,000 Net loss - - - - - (320,983) - (320,983) ------------ --------- --------- ---------- ---------- ------------ --------- Balance, September 30, 2001 925,428 $ 9,254 903,000 $ 9,030 $ 790,895 $(320,983) $ (3,102) $485,094 ============ ========= ========= ========= ========== ========== ============ =========

OPERATING ACTIVITIES Net loss $ (320,983) Adjustments to reconcile net loss to net cash used in operating activities Changes in operating assets and liabilities Accounts receivable (25,000) Accounts payable and accrued expenses 104,143 -------------- Net cash used in operating activities (241,840) -------------- INVESTING ACTIVITIES (250,000) -------------- NOTES RECEIVABLE (250,000) -------------- NET CASH USED IN INVESTING ACTIVITIES FINANCING ACTIVITIES Proceeds from sale of stock, net of offering costs of $127,825 800,175 -------------- Net cash provided by financing activities 800,175 -------------- Net increase in cash 308,335 Cash - beginning - -------------- Cash - end $ 308,335 ============== Supplemental Information Interest paid $ - Income taxes paid $ -

HISTORICAL AS OF SEPTEMBER 30, 2001 PRO FORMA ---------------------------- VIZACOM SPACELOGIX NOTES ADJUSTMENTS PRO FORMA ----------------------------------------------------------------- (UNAUDITED) (AUDITED) (UNAUDITED) ASSETS Current assets: Cash and cash equivalents $ 191,056 $ 308,335 (a) $ 450,000 $ 958,395 (e) 9,004 Receivables - Trade, less allowances 1,198,356 25,000 - 1,223,356 Subscriptions 5,902 (e) (5,902) - Other 62,207 - 62,207 Notes, current portion 418,549 250,000 (b) 400,000 418,549 (d) (650,000) Inventories 304,609 - 304,609 Restricted cash 150,000 - 150,000 Prepaid expenses and other current assets 143,719 143,719 --------------------------- -------------------------- Total current assets 2,468,496 589,237 203,102 3,260,835 Property and equipment, net 221,931 - 221,931 Goodwill, net of accumulated amortization 1,767,420 (g) 3,822,804 5,590,224 Other intangibles, net of accumulated amortization 3,046,097 - 3,046,097 Deferred consulting costs 921,826 - 921,826 Note receivable, long term 384,734 - 384,734 Other assets 63,609 - 63,609 --------------------------- -------------------------- Total assets $ 8,874,113 $ 589,237 $ 4,025,906 13,489,256 =========================== ========================== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Bank note payable $ 1,214,172 $ - $ 1,214,172 Related party notes and other related party liabilities 1,036,525 - 1,036,525 Bridge loan payable, net of unamortized debt discount (b) 40,000 (d) (650,000) (g) 610,000 Current portion of long-term debt and capital lease obligations 239,528 - 239,528 Accounts payable 1,845,890 104,143 - 1,950,033 Accrued liabilities 1,499,434 (g) 150,000 1,649,434 Income taxes payable (f) 166,000 166,000 Sales and value-added taxes payable 3,837 - 3,837 --------------------------- -------------------------- Total current liabilities 5,839,386 104,143 316,000 6,259,529 Related party notes, long term 126,685 126,685 Long-term debt and capital lease obligations, less current maturities 4,623 4,623 --------------------------- -------------------------- Total liabilities 5,970,694 104,143 316,000 6,390,837 --------------------------- -------------------------- Commitments and contingencies Stockholders' equity: Preferred stock Series A 9,030 (a) 450,000 - (g) (9,030) Preferred stock Series B (g) (450,000) Common stock, par value $.001 per share, 60,000,000 shares authorized, 4,574,177 (pro forma) 2,404 9,254 (b) 200 4,574 (g) (7,284) Additional paid-in capital 72,635,550 790,895 (b) 359,800 76,748,380 (g) 2,962,135 15 Accumulated deficit (69,548,375) (320,983) (c) - (69,548,375) (f) (166,000) (g) 486,983 Subscriptions receivable (3,102) (e) 3,102 - Accumulated other comprehensive loss (95,765) (95,765) Unamortized debt discount in excess of bridge loan (80,000) (g) 80,000 - Treasury stock, 310 shares, at cost (10,395) (10,395) --------------------------- -------------------------- Total stockholders' equity 2,903,419 485,094 3,709,906 7,098,419 --------------------------- -------------------------- Total liabilities and stockholders' equity $ 8,874,113 $ 589,237 $4,025,906 13,489,256 ============================ ==========================

Entries ------------------------------------- Vizacom SpaceLogix Pro Forma ------------------------------------- Cash $ 400,000 $ (400,000) $ - Note receivable $ 400,000 $ 400,000 Bridge loans, $400,000, less $360,000 unamortized debt discount $ 40,000 $ 40,000 Common stock $ 200 $ 200 Additional paid in capital $ 359,800 $ 359,800

HISTORICAL NINE MONTHS ENDED SEPTEMBER 30, 2001 PRO FORMA ---------------------------- VIZACOM SPACELOGIX NOTES ADJUSTMENTS PRO FORMA ------------------------------------------------------------ (UNAUDITED) (AUDITED) (UNAUDITED) Net sales $ 10,800,513 $ 25,000 $10,825,513 Cost of sales 9,164,147 - 9,164,147 ---------------------------- -------------------------- Gross profit 1,636,366 25,000 1,661,366 Selling, general and administrative expenses 4,450,988 345,983 4,796,971 Restructuring expenses 187,584 187,584 Amortization of goodwill, business processes and - methodologies, workforce, and customer lists 964,777 (c) 964,777 Realized loss (gain) on marketable securities 85,226 85,226 Interest and other expense, net of other income 201,802 201,802 ---------------------------- -------------------------- 5,890,377 345,983 - 6,236,360 ---------------------------- -------------------------- Loss from continuing operations $ (4,254,011) $ (320,983) (b) $ - $(4,574,994) ============================ ========================== Basic and diluted income per share $ (2.19) (b) $ (1.11) ============= ============ Shares used to compute net income per share - basic and diluted 1,940,993 (a) 2,170,000 4,110,993 ============= =========================

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