8-K 1 maxus8k032204.txt 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 22, 2004 MAXUS TECHNOLOGY CORPORATION (Exact Name of Registrant as Specified in Its Charter) Delaware (State or Other Jurisdiction of Incorporation) 000-26337 82-0514605 (Commission File Number) (I.R.S. Employer Identification Number) 18300 Sutter Boulevard, Morgan Hill, California 95037 (Address of Principal Executive Offices) (Zip Code) (408) 782-2005 (Registrant's Telephone Number, Including Area Code) MEDINEX SYSTEMS, INC. (Former Name or Former Address, if Changed Since Last Report) Not Applicable INFORMATION INCLUDED IN REPORT ON FORM 8-K Item 5. Other Events. ------------ At the Annual Meeting of Shareholders (the "Annual Meeting") held on March 22, 2004, Michele Whatmore, Charles Whatmore, David Smith, James Ross and William E. Thomson were elected as directors of the Company, and Schwartz Levitsky Feldman, LLP was approved as the Company's auditor for the current fiscal year. The Company's shareholders also approved the Company's 2004 Stock Option Plan. In addition, the Company's shareholders approved of changing the Company's name to Maxus Technology Corporation, which such action was effected by the Company filing an Amended Certificate of Incorporation with the Secretary of State of the State of Delaware. As a result of the Company's name change, a new trading symbol was issued by the NASD. Shares of the Company's common stock will be traded on the OTC Bulletin Board under the symbol "MXUS," effective as of the opening of business April 7, 2004. Shares of the Company's common stock will no longer be traded on the OTC Bulletin Board under the symbol "MNXS." -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. MAXUS TECHNOLOGY CORPORATION By: /s/ Michele Whatmore --------------------------- Michele Whatmore, President Date: April 7, 2004 -3-

The following table shows, as of November 19, 2003 and after giving effect to the Stock Exchange, the "beneficial ownership" of Medinex's Common Stock of (i) each director, (ii) each executive officer, (iii) all executive officers and directors of the Company as a group and (iv) each person who owns more than 5% of the outstanding Common Stock. Except as otherwise set forth below, the address of each of the persons listed below is c/o Medinex Systems, Inc., 18300 Sutter Boulevard, Morgan Hill, California 95037. ------------------------------------------------------------------------------------- Percent Number Note ------------------------------------------------------------------------------------- Michelle Whatmore--Director, President 27.05% 5,734,704 1, 2, 5 ------------------------------------------------------------------------------------- David Smith--Chief Executive Officer 19.82% 4,203,360 1 ------------------------------------------------------------------------------------- James Ross--Chief Financial Officer * 160,000 1, 5 ------------------------------------------------------------------------------------- Gary Powers--Chief Operations Officer 1.18% 250,000 1, 5 ------------------------------------------------------------------------------------- All directors and officers as a group (4 persons) 48.80% 10,348,064 1 ------------------------------------------------------------------------------------- 741257 Alberta Ltd. 9.02% 1,911,568 1, 3, 5 ------------------------------------------------------------------------------------- 746459 Alberta Ltd. 9.02% 1,911,568 1, 4, 5 -------------------------------------------------------------------------------------

SUMMARY FINANCIALS The following financial summary is that of the Subsidiaries for each of the referenced periods. This summary should be read in conjunction with the financial statements provided in Item 7 of this Current Report and the notes thereto. Twelve Twelve Months Months Nine Months Nine Months Ended Ended Ended Ended November November August 31, 2003 August 31, 2002 30, 2002 30, 2001 (Unaudited) (Unaudited) (Audited) (Audited) --------------- --------------- --------------- --------------- Statement of Operations Data (in thousands of U.S. Dollars) Sales $ 2,744 $ 2,523 $ 3,276 $ 3,805 Cost of Goods Sold 1,717 1,968 2,351 2,404 --------------- --------------- --------------- --------------- Gross Profit 1,028 555 925 1,401 =============== =============== =============== =============== Advertising, Promotion, Selling, General and Administrative, Interest, Depreciation and Taxes 1,324 859 1,182 1,096 Net Income (Loss) (280) (253) (237) 330 Comprehensive Net Income (Loss) (305) (253) (237) 319 Cash Flow Data (in thousands of U.S. Dollars) Operations (384) (522) (633) 682 Investing (247) (468) (658) (5) Financing 615 795 1,128 (489) Effect of Exchange Rate Changes 5 (7) Net Cash Increase (Decrease) (11) (194) (163) 181

SUMMARY COMPENSATION TABLE (All Amounts in U.S. Dollars) ------------------------------------------------------------------------------------------------------------------------------------ Annual Compensation Long-Term Compensation --------------------------------------- Awards Payouts --------------------------------------------------------------------- -------------------------- ------------ ------------ Securities Other Annual Restricted Underlying All Other Name and Salary Bonus Compensa-tion Stock Options/ LTIP Compensa- Principal Position Year ($) ($) ($) Award(s) SARs (#) Payouts ($) tion ($) ------------------ ---- --- --- --- --------- -------- ----------- -------- ($) ------------------- ---------------------- ------------- -------------- ------------ ------------- ------------ ------------ 2003(1) $38,282 None None N/A N/A N/A $4,814 (4) Michelle Whatmore 2002 41,762 None None - - - 4,816 (4) 2001 41,762 $137,244 None - - - 4,735 (4) ------------------- ---------------------- ------------- -------------- ------------ ------------- ------------ ------------ 2003(1) None N/A N/A N/A N/A N/A N/A David Smith (2) 2002 None - 2001 None - - ------------------- ---------------------- ------------- -------------- ------------ ------------- ------------ ------------ 2003(1) $39,484 (3) None N/A N/A N/A N/A N/A James Ross 2002 11,390 (3) 2001 None ------------------- ---------------------- ------------- -------------- ------------ ------------- ------------ ------------ 2003(1) $5,315 None N/A N/A N/A N/A N/A Gary Powers 2002 None 2001 None ------------------- ---------------------- ------------- -------------- ------------ ------------- ------------ ------------

901133 ALBERTA LTD. Consolidated Statements of Cash Flows For the years ended November 30, 2002 and 2001 (Amounts expressed in US Dollars) 2002 2001 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) earnings (237,403) 330,325 Adjustments for items not affecting cash Amortization 45,476 20,367 Gain on disposition of property and equipment (297) (486) Write-down of marketable securities 3,038 1,686 (Increase) decrease in accounts receivable (141,706) 47,981 (Increase) decrease in inventory 5,079 (4,311) Increase in prepaid expenses (13,772) (42) Increase (decrease) in accounts payable and accrued liabilities (244,533) 257,414 Increase (decrease) in income taxes (49,304) 29,118 ---------- ---------- Net cash provided by (used in) operating activities (633,422) 682,052 ---------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions of property and equipment (658,070) (3,685) Proceeds from disposition of property and equipment -- 954 Purchase of marketable securities -- (2,612) ---------- ---------- Net cash used in investing activities (658,070) (5,343) ---------- ---------- CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from (repayments of) due to related corporations 444,410 (513,769) Proceeds from (repayments of) long-term debt 424,362 (3,574) Increase (decrease) in bank indebtedness 90,565 (63,922) Decrease in loan receivable 8,052 2,836 Decrease in loan receivable from related individuals 160,966 89,822 ---------- ---------- Net cash provided by (used in) financing activities 1,128,355 (488,607) ---------- ---------- EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES 213 (7,057) ---------- ---------- NET (DECREASE) INCREASE IN CASH (162,924) 181,045 Cash, beginning of year 210,341 29,296 ---------- ---------- CASH, END OF YEAR 47,417 210,341 ========== ========== INCOME TAXES PAID 9,386 48,076 ========== ========== INTEREST PAID 13,823 1,527 ========== ==========

901133 ALBERTA LTD. Consolidated Statements of Changes in Stockholder's Equity (Deficiency) For the years ended November 30, 2002 and 2001 (Amounts expressed in US dollars) Class A Common Class A Accumulated Stock Common Retained Other Number of Stock Earnings Comprehensive Comprehensive Shares Amount (Deficit) Income (loss) Loss ------------- ------------- ------------- ------------- ------------- $ $ $ $ $ Balance as of November 30, 2000 100 63 85,924 -- -- Dividends (note 14) -- -- (261,086) -- -- Foreign currency translation -- -- -- (10,518) (10,518) Net income for the year -- -- 330,325 330,325 -- ------------- ------------- ------------- ------------- ------------- Balance as of November 30, 2001 100 63 155,163 319,807 (10,518) Foreign currency translation -- -- -- (328) (328) Net loss for the year -- -- (237,403) (237,403) -- ------------- ------------- ------------- ------------- ------------- Balance as of November 30, 2002 100 63 (82,240) (237,731) (10,846) ============= ============= ============= ============= =============

901133 ALBERTA LTD. Notes to Consolidated Financial Statements November 30, 2002 and 2001 (Amounts expressed in US Dollars) 1. GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd) f) Inventory Inventory is recorded at the lower of cost and fair market value. Cost is determined on the first-in first-out basis. g) Long-Term Financial Instruments The fair value of each of the Corporation's long-term financial assets and debt instruments is based on the amount of future cash flows associated with each instrument discounted using an estimate of what the Corporation's current borrowing rate for similar instruments of comparable maturity would be. It is of the management's opinion that the Corporation is not exposed to significant interest rate risk, credit risk or currency risks arising from these financial instruments. h) Property, Plant and Equipment Property, plant and equipment are recorded at cost and amortized on the basis of their estimated useful lives at the undernoted rates and methods, except for land, which has been recorded at cost: Automobile 30% declining balance Building 40 years straight-line, $100,000 residual value Utility building 20 years straight-line, $10,000 residual value Computer hardware 30% declining balance Computer software 100% declining balance Equipment, furniture and fixture 20% declining balance

901133 ALBERTA LTD. Notes to Consolidated Financial Statements November 30, 2002 and 2001 (Amounts expressed in US Dollars) 8. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities are comprised of the following: 2002 2001 $ $ Trade payable 234,919 128,808 Accrued liabilities 8,525 356,749 ----------- ----------- 243,444 485,557 =========== =========== 9. LONG-TERM DEBT 2002 2001 $ $ a) Long-term debt consist of the following: Business Development Bank of Canada mortgage, interest at bank prime plus 0.75% per annum monthly payments of $1,800 and final payment of $2,000 plus interest, due March 15, 2018, secured by first mortgage on the land and buildings in Rimbey, Alberta. Also secured by a General Security Agreement provided by the Corporation providing first security interest in all present and after acquired personal property 279,873 -- Business Development Bank of Canada loan, interest at Bank prime plus 1.75% per annum monthly payments of $2,700 plus interest, until March 15, 2008, secured by a General Security Agreement provided by the Corporation providing a security interest in all present and after-acquired personal property, subject only to existing personal property registrations and with a first specific charge on the equipment being purchased with this financing 124,601 -- General Motors Acceptance Corporation Conditional Sales Contract, interest at 11.0% per annum, monthly payments of principal and interest of $400 until September 6, 2005. The automobile financed by this loan is held as security for the loan 11,244 14,960

901133 ALBERTA LTD. Notes to Consolidated Financial Statements November 30, 2002 and 2001 (Amounts expressed in US Dollars) 9. LONG-TERM DEBT (cont'd) HSBC Bank Canada High Performance Auto Loan, interest at 6.95% per annum, monthly payments of principal and interest totaling $369, until October 29, 2007 with $7,500 remaining unpaid. The automobile financed by this loan is held as security for the loan 23,679 -- ------- ------- 439,397 14,960 Less: Current portion 58,675 3,319 ------- ------- 380,722 11,641 ======= ======= b) The estimated principal repayments on long-term debts in each of the next five fiscal years are as follows: 2003 $ 58,675 2004 60,589 2005 60,027 2006 53,954 2007 32,093 2008 and thereafter 174,059 -------------- $ 439,397 ============== c) Interest expense related to long-term debt was $12,327 ($1,465 in 2001). 10. DUE TO RELATED CORPORATIONS The amounts due to related corporations are non-interest bearing, have no specific repayment terms and are not expected to be repaid prior to December 1, 2004. The fair value of the loan has been estimated by discounting future cash flows using an estimated rate of 7% per annum. The fair value of the amounts is $481,289. 15 901133 ALBERTA LTD. Notes to Consolidated Financial Statements November 30, 2002 and 2001 (Amounts expressed in US Dollars) 11. CAPITAL STOCK Authorized An unlimited number of the following class of shares Class A Common shares, voting Class B Common shares, voting Class C and D shares whose rights and privileges are to be determined at the time of issuance. Issued 2002 2001 $ $ 100 Class A Common shares 63 63 ========== ========== 12. COMPREHENSIVE INCOME (LOSS) The components of comprehensive income (loss) are as follows: 2002 2001 $ $ Net income (loss) (237,403) 330,325 Foreign currency translation (328) (10,518) ---------- ---------- COMPREHENSIVE INCOME (LOSS) (237,731) 319,807 ========== ========== The foreign currency translation adjustments are not currently adjusted for income taxes as the Corporation is located in Canada and the adjustments relate to the translation of the financial statements from Canadian dollars into United States dollars, which are done as disclosed in note 1(j). The accumulated other comprehensive loss of the Corporation consists solely of foreign exchange translation adjustments. 16 901133 ALBERTA LTD. Notes to Consolidated Financial Statements November 30, 2002 and 2001 (Amounts expressed in US Dollars) 13. INCOME TAXES 2002 2001 $ $ a) Current 9,386 49,117 ========= ========= b) Current income taxes consist of: 2002 2001 $ $ Amounts calculated at basic Canadian Federal and Provincial Rates (45,000) 75,000 Increase (decrease) resulting from: Other difference -- (25,883) Permanent difference 54,386 -- 9,386 49,117 ========= =========

901133 ALBERTA LTD. Interim Consolidated Statements of Cash Flows For the nine month periods ended August 31, 2003 and August 31, 2002 (Amounts expressed in US Dollars) (Unaudited) For the For the nine month nine month period ended period ended August 31, August 31, 2003 2002 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Net loss (280,102) (253,037) Adjustments for items not affecting cash Amortization 99,228 39,803 Write-down of marketable securities -- 3,040 (Increase) decrease in accounts receivable (21,494) 42,471 Increase in inventory (82,550) (3,996) Increase in prepaid expenses (22,705) (1,551) Decrease in accounts payable and accrued liabilities (85,392) (299,660) Increase (decrease) in income taxes recoverable 8,646 (49,423) ------------ ------------ Net cash used in operating activities (384,369) (522,353) ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions of property, plant and equipment (246,884) (467,747) ------------ ------------ Net cash used in investing activities (246,884) (467,747) ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from related parties 96,865 574,262 Proceeds from long-term debt 209,727 176,651 Increase in bank indebtedness 308,204 23,935 Decrease in loan receivable -- 20,027 ------------ ------------ Net cash provided by financing activities 614,796 794,875 ------------ ------------ EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES 5,355 386 ------------ ------------ NET DECREASE IN CASH (11,102) (194,839) Cash, beginning of period 47,417 210,341 ------------ ------------ CASH, END OF PERIOD 36,315 15,502 ============ ============ INCOME TAXES PAID -- 36,053 ============ ============ INTEREST PAID 45,074 7,261 ============ ============

901133 ALBERTA LTD. Interim Consolidated Statements of Changes in Stockholder's Deficiency For the nine month period ended August 31, 2003 and the year ended November 30, 2002 (Amounts expressed in US dollars) (Unaudited) Class A Common Class A Stock Common Retained Accumulated Comprehensive Number of Stock Earnings Comprehensive Other Shares Amount (Deficit) Income (loss) Loss ------------- ------------- ------------- ------------- ------------- $ $ $ $ $ Balance as of November 30, 2001 100 63 155,163 -- (10,518) Foreign currency translation -- -- -- (328) (328) Net loss for the year -- -- (237,403) (237,403) -- ------------- ------------- ------------- ------------- ------------- Balance as of November 30, 2002 100 63 (82,240) (237,731) (10,846) Foreign currency translation -- -- -- (25,278) (25,278) Net loss for the nine-month period ended August 31, 2003 -- -- (280,102) (280,102) -- ------------- ------------- ------------- ------------- ------------- Balance as of August 31, 2003 100 63 (362,342) (305,380) (36,124) ============= ============= ============= ============= =============

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