8-K 1 proterion_8k.txt FORM 8-K UNITED STATES 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) May 22, 2003 Proterion Corporation ------------------------------------------------------ (Exact Name Of Registrant As Specified In Its Charter) Delaware ---------------------------------------------- (State or Other Jurisdiction of Incorporation) 0-14617 61-0708419 ------------------------ ------------------------------------ (Commission File Number) (I.R.S. Employer Identification No.) One Possumtown Road, Piscataway, NJ 08854-2103 ---------------------------------------- ---------- (Address of Principal Executive Offices) (Zip Code) (732) 987-8200 ---------------------------------------------------- (Registrant's Telephone Number, Including Area Code) N/A ------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Item 7. Financial Statements and Exhibits. (c) Exhibits. Exhibit Number Description ------ ---------------------------------------------------- 99.1 Press release dated May 22, 2003 of Proterion Corporation (the "Company") announcing its operating results for the first quarter ended March 31, 2003. Item 9. Regulation FD Disclosure (Information Furnished in this Item 9 is Furnished Under Item 12). On May 22, 2003, the Company issued a press release announcing its operating results for the first quarter ended March 31, 2003. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein in its entirety by reference. Limitation on Incorporation by Reference. The information furnished in this Item 9 (which is being furnished under Item 12) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing. Cautionary Note Regarding Forward-Looking Statements. Except for historical information contained in the press release attached as an exhibit hereto, the press release contains forward-looking statements which involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. Please refer to the cautionary note in the press release regarding these forward-looking statements. SIGNATURE --------- 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. Dated: May 27, 2003 PROTERION CORPORATION By /s/ PAUL MANGANO --------------------------------- Paul Mangano, President and Chief Operating Officer EXHIBIT INDEX Exhibit Number Description ------ ---------------------------------------------------- 99.1 Press release dated May 22, 2003 of Proterion Corporation announcing its operating results for the first quarter ended March 31, 2003.

Pro Forma Adjustments Pro Forma for Sale Adjustments of Assets/ Pro Forma Pro Forma for Assumption Adjustments Adjustments Capital of for Use of for Lease Historical Infusion Liabilities Proceeds Transaction Pro Forma (a) (b) (c) (d) ----------- ----------- ----------- ----------- ----------- ---------- ASSETS (in thousands) Current Assets Cash $ 710 $ - $ 15,300 $ (12,544) $ (2,536) $ 930 Restricted Cash - - 1,700 - - 1,700 Receivables - less allowance for doubtful 7,051 - (5,207) - - 1,844 accounts Inventory 7,346 - (6,257) - - 1,089 Prepaid expenses and other current assets 895 - (861) - - 34 -------- -------- -------- ---------- --------- --------- Total current assets 16,002 - 4,675 (12,544) (2,536) 5,597 -------- -------- -------- ---------- --------- --------- Property, plant and equipment 17,159 - (9,377) - (6,855) 927 Less accumulated depreciation and 11,982 - (8,882) - (2,832) 268 amortization -------- -------- -------- ---------- --------- --------- Property, plant and equipment, net 5,177 - (495) - (4,023) 659 Goodwill 5,539 - - - - 5,539 Intangibles (net of accumulated amortization) 38 - (38) - - - Deferred financing cost 98 - - (98) - - Other assets 398 - (252) - (141) 5 -------- -------- -------- ---------- --------- --------- Total Assets $ 27,252 $ - $ 3,890 $ (12,642) $ (6,700) $ 11,800 ======== ======== ======== ========== ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY) Current Liabilities Short-term bank borrowings $ 9,437 $ (100) $ - $ (9,337) $ - $ - Current maturities of long-term debt 1,275 - (25) (963) (270) 17 Current maturities affiliate debt 750 - - (250) - 500 Note payable - landlord - - - - 750 750 Accounts payable 4,191 - (3,569) - - 622 Borrowings against accounts receivable 864 - - - - 864 Accrued liabilities 3,973 (400) (2,295) 740 - 2,018 -------- -------- -------- ---------- --------- --------- Total current liabilities 20,490 (500) (5,889) (9,810) 480 4,771 -------- -------- -------- ---------- --------- --------- Non-current liabilities Long-term debt 4,356 - (92) - (4,233) 31 Other long-term liabilities 121 - (111) - - 10 -------- -------- -------- ---------- --------- --------- Total Liabilities 24,967 (500) (6,092) (9,810) (3,753) 4,812 Series B Preferred Stock 1,500 311 - (667) - 1,144 Shareholders' Equity Common stock, par value of $.01 277 - - - 11 288 Additional paid-in capital 37,179 189 - - 407 37,775 Accumulated deficit (36,862) - 9,982 (1,974) (3,365) (32,219) Accumulated other comprehensive income 191 - - (191) - - -------- -------- -------- ---------- --------- --------- Total shareholders' equity 785 189 9,982 (2,165) (2,947) 5,844 -------- -------- -------- ---------- ---------- --------- Total Liabilities and Shareholders' Equity $ 27,252 $ - $ 3,890 $ (12,642) $ (6,700) $ 11,800 ======== ======== ======== ========== ========== =========

Pro Forma Pro Forma Adjustments for Adjustments to Additional Exclude Rheology Expenses for Business Life Sciences Historical (e) Business Pro Forma (f)(h) ------------------- ------------------- ------------------ ------------------- Sales $ 31,313 $ (25,583) $ - $ 5,730 Cost of sales 18,887 (15,277) - 3,610 --------- ---------- --------- ---------- Gross profit 12,426 (10,306) - 2,120 Operating expense 15,521 (13,496) 1351 3,376 --------- ---------- --------- ---------- Operating income/(loss) (3,095) 3,190 (1,351) (1,256) Interest (expense) net (1,375) 1,373 - (2) Foreign currency gain/(loss) (518) 485 - (33) --------- ---------- --------- ---------- Income/(loss) before income tax (4,988) 5,048 (1,351) (1,291) Income tax (expense)/benefit (5) 5 - - --------- ---------- --------- ---------- Net income/(loss) $ (4,993) $ 5,053 $ (1,351) $ (1,291) ========= ========== ========= ========= Net loss per share - basic and diluted $ (0.21) $ (0.05) ========= ========= Average number of shares outstanding - basic and diluted (g) 23,963 25,078 ========= ========

Pro Forma Pro Forma Adjustments for Adjustments to Additional Exclude Rheology Expenses for Business Life Sciences Historical (e) Business Pro Forma (f)(h) ------------------- ------------------- ------------------ ------------------ Sales $ 21,447 $ (17,232) $ - $ 4,215 Cost of sales 12,950 (9,969) - 2,981 --------- ---------- --------- ---------- Gross profit 8,497 (7,263) - 1,234 Operating expense 10,816 (9,234) 949 2,531 --------- ---------- --------- ---------- Operating Income/(loss) (2,319) 1,971 (949) (1,297) Interest (expense) net (944) 933 - (11) Foreign currency gain/(loss) 51 (97) - (46) --------- ---------- --------- ---------- Income/(loss) before income tax (3,212) 2,807 (949) (1,354) Income tax expense 81 - - 81 --------- ---------- --------- ---------- Net income/(loss) $ (3,131) $ 2,807 $ (949) $ (1,273) ========= ========= ========= ========== Net loss per share - basic and diluted $ (0.13) $ (0.05) ========= ========= Average number of shares outstanding - basic and diluted (g) 24,923 26,028 ========= =========

(Dr) (Cr) ------- ------- Cash $15,300 Cash held in escrow 1,700 Accounts receivable $5,207 Inventory 6,257 Prepaid expenses and other current assets 861 Property plant and equipment 9,377 Accumulated depreciation 8,882 Intangibles 38 Other assets 252 Current maturities of long-term debt 25 Accounts payable 3,569 Accrued liabilities 2,295 Long-term debt 92 Other long term liabilities 111 Gain on sale of assets (1) 9,982

(Dr) (Cr) ------- ------- Cash $12,544 Deferred financing costs 98 Short term bank borrowings $9,337 Current maturities of long term debt 963 Current maturities of affiliate debt 250 Accrued liabilities(2) 740 Expense - ANC Management Corp. (1) 450 Expense - Legal, professional, other (1) 717 Expense - Taxes (1) 500 Expense - Severance (1) 400 Expense - Financing Costs (1) 98 Series B Preferred Stock 667

Proceeds to landlord to terminate lease Cash at closing $2,536,000 Cash due in six months 500,000 Cash due in 12 months 250,000 ---------- Total cash payment $3,286,000 Stock issued to landlord 650,000 shares @ .50 per share 325,000 Reset warrants (1) 464,160 shares @ .20 per share 93,000 ---------- Total value of stock to be issued 418,000 ---------- Total consideration 3,704,000 Total lease obligation 4,503,000 ---------- Gain on settlement $ 799,000 Write off net book value of lease asset (4,023,000) Write off prepaid rent (141,000) -------------- Net loss on lease transaction (2) (3,365,000)

(Dr) (Cr) ------- ------- Cash $2,536 Property, plant and equipment 6,855 Accumulated depreciation $2,832 Other assets 141 Current maturities of long term debt 270 Note payable - Landlord 750 Long term debt 4,233 Common stock 11 Additional paid in capital 407 Loss on lease transaction 3,365

Filing Compare · PROTERION CORP