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Total Film Group Inc – ‘8-K’ for 7/19/01

On:  Thursday, 1/10/02   ·   For:  7/19/01   ·   Accession #:  912057-2-930   ·   File #:  0-30227

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  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 1/10/02  Total Film Group Inc              8-K:2,7     7/19/01    2:37K                                    Merrill Corp/FA

Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         6     28K 
 2: EX-2.3      Plan of Acquisition, Reorganization, Arrangement,     15     50K 
                          Liquidation or Succession                              


8-K   —   Current Report
Document Table of Contents

Page (sequential) | (alphabetic) Top
 
11st Page   -   Filing Submission
"Item 2. Disposition of Assets
2Item 7. Financial Information and Exhibits
4Item 7B -. Proforma Financial Information
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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): July 19, 2001 TOTAL FILM GROUP, INC. (Exact Name of Registrant as Specified in Charter) DELAWARE 0-30027 13-3851302 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 9107 WILSHIRE BOULEVARD, SUITE 475, BEVERLY HILLS, CA 90210 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (310) 275-8404 ITEM 2. DISPOSITION OF ASSETS In June 2001 Total Creative, Inc. ("Total Creative") and Total Film Group, Inc. ("Total Film") entered into an agreement to sell substantially all of the assets of Total Creative, a wholly owned subsidiary of Total Film, to Viridian Entertainment ("Viridian"), a California corporation controlled by Gerald Green, a former officer and director of Total Film and Total Creative. These assets consisted of the following: equipment, personal property, appurtenances, accessories, furnishings, fixtures, contracts, contract rights, tangible, intangible, and other property owned by Total Creative or installed at the premises in the Beverly Hills, California, office. Viridian will also have the use of the name "Total Creative, Inc." for a period of six months. The sale excludes the leasehold interest and personal property of Total Creative located at the San Francisco, California, office, and any cash or bank accounts of Total Creative. The closing of the sale was completed on July 19, 2001, and was deemed effective as of June 30, 2001. The purchase price paid by Viridian for the assets was $26,000, plus 20% of the net profits for three fiscal years beginning July 1, 2001. The cash portion of the purchase price was placed into an escrow account pending confirmation that all outstanding liabilities and liens
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affecting the assets have been satisfied. Viridian assumed no liabilities of Total Creative in connection with the assets, except for ongoing obligations arising after June 30, 2001. Any liabilities incurred prior to July 1, 2001, and paid by Viridian will be deducted from the escrowed purchase price. The escrowed funds will be released to Total Creative at such time as it is able to provide Viridian reasonable proof that all outstanding liabilities relating to the assets have been satisfied or settled. These liabilities total approximately $421,731, of which Total Film remains liable for approximately $200,000 because of contractual guarantees or other arrangements. Management decided to sell the assets of Total Creative for the cash consideration, plus a percentage of future profits, if any, rather than to cease and liquidate the operations of Total Creative because management believes the consideration would be greater than in a liquidation transaction. Management believes that although the purchaser of the assets is controlled by a former affiliate of Total Film, the transaction was at arms' length because of the divestiture of Mr. Green of any significant ownership or management interest in Total Film and Total Creative in June 2001. Viridian also entered into a three-year sublease agreement with Total Creative and Total Film for the office space previously used by Total Creative. Viridian has the option to cancel the sublease at any time upon six months' written notice. ITEM 7. FINANCIAL INFORMATION AND EXHIBITS (a) Financial Statements of Business Acquired. Not applicable. (b) The Pro Forma Financial Information required by this item is included with this report. (c) Exhibit. [Download Table] Exhibit No. Description Location 2.3 Agreement of Purchase and Sale dated June 29, 2001, by and between the Company and Viridian Entertainment, with addendum. Attached SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. -2-
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Total Film Group, Inc. Date: January 9, 2002 By /s/ Jeffrey Hoffman ---------------------------------- Jeffrey Hoffman, President -3-
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ITEM 7B - PROFORMA FINANCIAL INFORMATION. The following unaudited pro forma condensed consolidated financial statements give effect to the sale by the Company of the assets of TCI and are based on the estimates and assumptions set forth in the notes to the consolidated financial statements.This pro forma information has been prepared using the historical financial statements of each entity and assumes that the sale was consummated on July 1, 2000.The pro forma financial data is provided for comparative purposes only and does not purport to be indicative of the results, which actually would have been obtained if the disposal had been effected on the date indicated. ASSETS [Enlarge/Download Table] Unaudited Pro Forma June 30, 2000 ----------------------------------------------------------------- Consolidated TCI Eliminations Adjusted -------------------- --------------------- --------------------- CURRENT ASSETS Cash and Cash Equivalents $ 448,102 $ (124,143) $ 323,959 Time Certificate of Deposit 20,692 - 20,692 Accounts Receivable, Net of Allowance 1,181,579 (674,315) 507,264 Employees Receivable, Net of Allowance 218,954 (701) 218,253 Deferred Production Costs 103,221 (103,221) - Prepaid Expenses 281,347 (20,450) 260,897 -------------------- --------------------- --------------------- TOTAL CURRENT ASSETS 2,253,895 (922,830) 1,331,065 -------------------- --------------------- --------------------- OTHER ASSETS Film Costs, Net of Amortization 9,495,808 - 9,495,808 Property and Equipment, Net of Depreciation 200,714 (164,738) 35,976 Investment in Meet World Trade 3,745,090 - 3,745,090 Recoverable Production Costs 1,000,000 - 1,000,000 Deposits 538,483 (35,400) 503,083 Goodwill, Net of Amortization 282,186 (282,186) - Capitalized Financing Fee 196,053 - 196,053 -------------------- --------------------- --------------------- 15,458,334 (482,324) 14,976,010 -------------------- --------------------- --------------------- TOTAL ASSETS $ 17,712,229 $ (1,405,154) $ 16,307,075 ==================== ===================== =====================
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LIABILITIES [Enlarge/Download Table] CURRENT LIABILITIES Current Portion of Long -Term Debt $ 4,776,918 $ (12,274) $ 4,764,644 Current Portion of Capital Lease 45,464 (43,221) 2,243 Accounts Payable and Accrued Expenses 1,815,534 (268,903) 1,546,631 Deferred Revenue 227,163 (227,163) - Producer's Fee Payable, Related Party 600,000 - 600,000 -------------------- --------------------- --------------------- TOTAL CURRENT LIABILITIES 7,465,079 (551,561) 6,913,518 -------------------- --------------------- --------------------- LONG-TERM LIABILITIES Long-Term Debt, Net of Current Portion 1,040,931 (40,931) 1,000,000 Capital Lease, Net of Current Portion 57,905 (56,410) 1,495 -------------------- --------------------- --------------------- TOTAL LONG-TERM LIABILITIES 1,098,836 (97,341) 1,001,495 -------------------- --------------------- --------------------- TOTAL LIABILITIES 8,563,915 (648,902) 7,915,013 -------------------- --------------------- --------------------- MINORITY INTEREST IN EQUITY OF CONSOLIDATED SUBSIDIARY 829,550 - 829,550 -------------------- --------------------- --------------------- STOCKHOLDERS' EQUITY Preferred Stock - Par Value $3 per Share; Authorized 1,080,0000 Shares, Issued and Outstanding 738,600 Shares 2,215,800 - 2,215,800 Common Stock, $0.001 Par Value; Authorized 50,000,000 Shares; Issued and Outstanding 12,335,299 Shares 12,336 - 12,336 Additional Paid-in Capital 13,422,193 - 13,422,193 Accumulated Deficit (7,331,565) (756,252) (8,087,817) -------------------- --------------------- --------------------- TOTAL STOCKHOLDERS' EQUITY 8,318,764 (756,252) 7,562,512 -------------------- --------------------- --------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 17,712,229 $ (1,405,154) $ 16,307,075 ==================== ===================== =====================
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[Enlarge/Download Table] Unaudited Pro Forma For the Year Ended June 30, 2001 ----------------------------------------------------------------------- Consolidated TCI Eliminations Adjusted ----------------------- ----------------------- ----------------------- REVENUE Film Production Income $ 1,447,467 $ - $ 1,447,467 Advertising and Marketing Fees 1,873,666 (1,417,905) 455,761 ----------------------- ----------------------- ----------------------- 3,321,133 (1,417,905) 1,903,228 ----------------------- ----------------------- ----------------------- COSTS AND OPERATING EXPENSES Production and Design Costs 1,386,696 (1,042,541) 344,155 Selling, General & Administrative Expenses 11,188,556 (1,286,261) 9,902,295 Depreciation and Amortization 2,006,833 (58,830) 1,948,003 ----------------------- ----------------------- ----------------------- TOTAL COSTS AND OPERATING EXPENSES 14,582,085 (2,387,632) 12,194,453 ----------------------- ----------------------- ----------------------- LOSS BEFORE OTHER INCOME(EXPENSES) (11,260,952) 969,727 (10,291,225) ----------------------- ----------------------- ----------------------- OTHER INCOME(EXPENSE) Interest Income 23,322 - 23,322 Interest Expense (954,602) 18,723 (935,879) Amortization of Placement Fee (5,146,001) - (5,146,001) Loss on Sale of Subsidiary (432,016) 432,016 - Impairment of Investment in Meet World Trade (3,868,956) - (3,868,956) Minority Interest 35,064 - 35,064 Miscellaneous Income 8,347 (5,419) 2,928 ----------------------- ----------------------- ----------------------- TOTAL OTHER INCOME(EXPENSE) (10,334,842) 445,320 (9,889,522) ----------------------- ----------------------- ----------------------- LOSS BEFORE INCOME TAXES (21,595,794) 1,415,047 (20,180,747) Income Taxes (15,928) 800 (15,128) ----------------------- ----------------------- ----------------------- NET LOSS $ (21,611,722) $ 1,415,847 $ (20,195,875) ======================= ======================= ======================= PER SHARE AMOUNTS - BASIC Net Loss $ (1.49) $ 0.10 $ (1.39) ======================= ======================= ======================= WEIGHTED AVERAGE NUMBER OF BASIC COMMON SHARES OUTSTANDING 14,470,487 14,470,487 14,470,487 ======================= ======================= =======================

Dates Referenced Herein   and   Documents Incorporated by Reference

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This ‘8-K’ Filing    Date First  Last      Other Filings
Filed on:1/10/028-K
1/9/023
For Period End:7/19/011
7/1/01128-K
6/30/0116NT 10-K
6/29/012
7/1/004
6/30/00410KSB,  10KSB/A,  8-K,  NT 10-K
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