8-K 1 a2044877z8-k.txt FORM 8-K 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 March 30, 2001 -------------- Date of Report (Date of earliest event reported) ESYNCH CORPORATION ------------------ (Exact name of Registrant as specified in its charter) Delaware 0-26790 87-0461856 -------- ------- ---------- (State or other (Commission File Number) (IRS Employer jurisdiction of Identification Incorporation) No.) 15502 Mosher Avenue Tustin, CA 92710 ------------------------ (Address of principal executive offices) (Zip Code) (714) 258-1900 -------------- (Registrant's telephone number, including area code) Not applicable ---------------- (Former name or address, if changed since last report.) Item 5. Other Events On March 30, 2001 eSynch Corporation (the "Company") issued a Press Release announcing that following the completion of due diligence, the boards of directors of both the Company and Streamedia Communications Inc. have independently decided that the Planned Merger of the companies announced on January 24, 2001 would not be completed. 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. ESYNCH CORPORATION Date: April 4, 2001 By: /s/ Thomas C. Hemingway --------------------------- Thomas C. Hemingway, Chief Executive Officer EXHIBIT INDEX -------------

~~Total~~Exhibit ~~Preferred~~No. ~~Stock~~Description ~~Common~~of ~~Stock~~Exhibit ~~Additional Stockholders'~~ -----------~~------~~ ------------------- ~~Paid~~-~~in Unearned Accumulated Equity Shares Amount Shares Amount Capital Compensation Deficit (Deficit)~~ --~~----~~ ---------- ---------- ------- ----------- ----------- ------------ ----------- Balance - December 31, 1998 - - 6,889,829 $ 6,889 $ 2,941,895 $ - $ (5,651,254) $(2,702,470) Shares issued for cash - - 75,000 75 149,925 - - 150,000 Shares issued for services - - 972,500 972 99.1,698,378 - - 1,699,350 Acquisition of Kiss Software Corporation - - 1,428,134 1,429 3,964,142 - - 3,965,571 Acquisition of Oxford Media Corporation - - 450,000 450 719,550 - - 720,000 Shares issued in settlement of suit - - 9,303 9 31,517 - - 31,526 Shares issued for notes receivable, satisfied through the conversion of notes and services - - 235,377 236 485,833 - - 486,069 Compensation related to the grant of stock options - - - - 3,358,050 (~~3,358,050~~1) -Press -Release ~~Amortization~~announcing ofPlanned ~~unearned~~Merger ~~compensation~~with -Streamedia -Communications - - - 2,975,309 - 2,975,309 Exercise of warrants - - 17,000 17 26,733 - - 26,750 Conversion of notes payable and related accrued interest - - 228,322 229 583,998 - - 584,227 Conversion of redeemable Series I preferred stock - - 199,999 200 879,799 - - 879,999 Issuance of Series J convertible preferred stock and 196,875 warrants, net of $237,500 offering costs 275Inc.0 ~~1,582,870~~dated -January ~~- 804~~24,~~630~~ ~~- - 2,387,500 Issuance of Series K preferred stock and 112,500 warrants, net of $100,000 offering costs 157~~2001.5 ~~- - - 1,400,000 - - 1,400,000 Amortization of discount on Series I preferred stock as a preferred dividend - - - - - -~~ 99.4(~~279,999~~2) ~~(279,999)~~Press ~~Amortization~~Release ofannouncing ~~discount~~termination onof ~~Series~~Planned JMerger ~~preferred~~dated ~~stock~~March ~~as a preferred dividend - 835~~30,~~742~~ - - - - (835,742) - Preferred dividends accrued - - - - - - (62,324) (62,324) Net Loss - - - - - - (8,677,493) (8,677,493) ------ ---------- ---------- ------- ----------- ------------ ------------- ----------- Balance - December 31, 1999 4322001.~~5 $2,418,612 10,505,464 $10,506 $17,044,450 $ (382,741) $ (15,506,812) $ 3,584,015 ====== ========== ========== ======= =========== ============ ============= ===========~~

-------- (1) Incorporated by reference to the like-numbered exhibit to the Company's Form 8-K filed January 26, 2001. (2) Incorporated by reference to the like-numbered exhibit to the Company's Form 10-KSB filed April 2, 2001.

Total Preferred Stock Common Stock Additional Stockholders' ----------------- ------------------- Paid-in Unearned Accumulated Equity Shares Amount Shares Amount Capital Compensation Deficit (Deficit) ------ ---------- ---------- ------- ----------- ----------- ------------ ----------- Balance - December 31, 1999 432.5 $2,418,612 10,505,464 $10,506 $17,044,450 $ (382,741) $(15,506,812) $ 3,584,015 Shares issued for cash - - 325,330 325 644,910 - - 645,235 Shares issued for services - - 292,000 292 977,430 - - 977,722 Shares issued in settlement of suit - - 12,000 12 96,988 - - 97,000 Shares issued for settlement of debt - - 20,000 20 - - - 20 Compensation related to the grant of stock options - - - - 2,223,315 (2,223,315) - - Amortization of unearned compensation - - - - - 2,212,976 - 2,212,976 Exercise of warrants and options - - 1,138,129 1,138 122,902 - 124,040 Issuance of Series K preferred stock and 37,500 warrants 55.0 - - - 400,000 - - 400,000 Cash received for rights to warrants - - - - 15,000 - - 15,000 Conversion of Series J preferred stock (135.5) (1,355,000) 500,287 500 1,354,500 - - - Conversion of Series K preferred stock (131.0) (1,310,000) 441,547 442 1,309,558 - - - Issuance of Series L preferred stock 168.0 803,993 - - 746,507 - - 1,550,500 Amortization of discount on Series J preferred stock as a preferred dividend - 206,388 - - - - (206,388) - Amortization of discount on Series K preferred stock as a preferred dividend - 2,000,000 - - - - (2,000,000) - Amortization of discount on Series M preferred stock as a preferred dividend - 796,007 - - - - (796,007) - Additional value of warrants and beneficial conversion feature on modified redeemable Series M preferred stock - - - - 1,817,627 - (1,817,627) - Value of warrants and beneficial conversion feature issued in connection with convertible debentures - - - - 702,941 - - 702,941 Value of warrants issued in connection with bridge notes - - - - 232,258 - - 232,258 Value of warrants issued in connection with the related party patents acquisition, includes additional compensation related the modification of the warrants - - - - 12,631,390 - - 12,631,390 Additional value allocated to modified warrants - - - - 37,875 - - 37,875 Preferred dividends accrued - - - - - - (323,672) (323,672) Net Loss - - - - - - (24,042,383) (24,042,383) ----- ---------- ----------- -------- ------------ ------------- ------------ ------------ Balance - December 31, 2000 389.0 $3,560,000 13,234,757 $ 13,235 $ 40,357,651 $ (393,080)$(44,692,889) $ (1,155,083) ===== ========== =========== ======== ============ ============= ============ ============

Options Outstanding -------------------------------------------------- 2000 1999 ------------------------ ------------------------ Weighted- Weighted- Average Average Exercise Exercise Shares Price Shares Price ----------- ----------- ----------- ----------- Outstanding at beginning of year 2,863,434 $ 1.18 1,221,675 $ 1.45 Granted 2,540,000 2.90 2,078,187 1.00 Forfeited (156,053) 1.49 (419,428) 1.05 Exercised (1,260,326) 1.00 (17,000) 1.57 ----------- ----------- Outstanding at end of year 3,987,055 2.52 2,863,434 1.18 =========== =========== Options exercisable at end of year 3,025,803 2.63 2,376,416 1.20 =========== =========== Weighted-average fair value of options granted during year $ 3.19 $ 0.90 =========== ===========

Outstanding Exercisable --------------------------------------------- ---------------------------- Weighted-Average Range of Number Remaining Weighted-Average Number Weighted-Average Exercise Prices Outstanding Contractual Life Exercise Price Exercisable Exercise Price --------------- ----------- ---------------- -------------- ----------- --------------- $ 0.25-0.50 81,900 7.32 years $ 0.25 81,900 $ 0.25 0.90-1.30 1,661,500 6.87 1.07 1,071,499 0.97 1.50-2.00 88,750 1.09 1.82 88,750 1.82 2.11-3.00 104,905 7.08 2.30 104,905 2.30 3.63 2,040,000 9.57 3.63 1,668,749 3.63 42.50-45.00 10,000 0.50 43.75 10,000 43.75 ----------- ----------- $ 0.25-45.00 3,987,055 8.12 2.52 3,025,803 2.63 =========== ===========

Options Outstanding -------------------------------------------------- 2000 1999 ------------------------ ------------------------ Weighted- Weighted- Average Average Exercise Exercise Shares Price Shares Price ----------- ----------- ----------- ----------- Outstanding at beginning of year 900,000 $ 1.13 - $ - Granted 1,540,000 2.07 900,000 1.13 Cancelled (1,000,000) 0.07 - - Exercised - - - - ----------- ----------- Outstanding at end of year 1,440,000 2.83 900,000 1.13 ----------- ----------- Options exercisable at end of year 1,290,000 2.70 800,000 1.14 =========== =========== Weighted-average fair value of options granted during year $ 9.47 $ 1.57 =========== ===========

Outstanding Exercisable --------------------------------------------- ---------------------------- Weighted-Average Range of Number Remaining Weighted-Average Number Weighted-Average Exercise Prices Outstanding Contractual Life Exercise Price Exercisable Exercise Price --------------- ----------- ---------------- -------------- ----------- --------------- $ 0.01 75,000 5.00 years $ 0.01 -- $ 1.00 - 1.25 900,000 4.93 1.04 900,000 1.04 2.00 40,000 4.62 2.00 40,000 2.00 3.50 - 4.50 75,000 4.70 3.83 75,000 3.83 6.50 - 9.50 350,000 3.09 7.89 275,000 7.93 ---------- ----------- $ 0.01- 9.50 1,440,000 4.47 2.83 1,290,000 2.70 ========== ===========

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