United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of earliest event reported
VFINANCE, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE
(STATE OR OTHER JURISDICTION OF INCORPORATION OF ORGANIZATION)
1-11454-03 58-1974423
------------------------ ---------------
(COMMISSION FILE NUMBER) (I.R.S. ID)
3010 North Military Trail, Suite 300 Boca Raton, FL
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
33431
(ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE
(561) 981-1000
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under
any of the following provisions (see General Instruction A.2. below):
[_] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
GENERAL EXPLANATION
The purpose of this report is to amend the Registrant's Current Report on Form
8-K dated May 11, 2006 that was filed with the Securities and Exchange
Commission on May 16, 2006 (the "Initial Report") which reported on its
acquisition of certain assets of Sterling Financial Investment Group, Inc. and
Sterling Financial Group of Companies, Inc. This report amends the Initial
Report so as to provide the financial information required pursuant to Items
9.01(b) of Form 8-K. All other items of the Inital Report are unchanged and are
incorporated herein by reference.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements of Business Acquired.
Not applicable
(b) Pro Forma Financial Information.
-2-
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
In accordance with Item 9.01(b)(1) of Form 8-K, the pro forma financial
information required by Item 9.01(b) of Form 8-K is set forth below.
The unaudited pro forma consolidated financial information of the Company
is based on and should be read in conjunction with the audited consolidated
financial statements and notes thereto appearing in the Company's Annual Report
on Form 10-K for the year ended December 31, 2005. The accompanying unaudited
pro forma condensed consolidated statements of operations for the six months
ended June 30, 2006 and 2005 and the for the year ended December 31, 2005 are
presented as if the asset acquisition discussed in Item 2.01 hereof had been
completed as of January 1, 2005.
In the opinion of management, the accompanying unaudited pro forma
condensed consolidated financial statements include all material adjustments
necessary to reflect, on a pro forma basis, the impact of such disposition and
acquisition on the historical financial information of the Company. The
adjustments are described in the notes to the unaudited pro forma condensed
consolidated financial information and are set forth in the "Pro Forma
Adjustments" column.
The unaudited pro forma condensed consolidated financial information has
been presented for informational purposes only and is not indicative of any
future results of operations or the results that might have occurred if the
acquisition had actually been completed on the indicated dates.
-3-
VFINANCE, INC
Unaudited Pro Forma Statement of Operations
For the year ended December 31, 2005
vFinance Sterling Pro Forma Adjustments Pro Forma
------------------ ---------------- ------------------------------------
Revenues:
Commissions - agency $ 15,941,221 $ 3,472,565 $ - $ 19,413,786
Trading profits 4,177,402 6,272,274 - 10,449,676
Success fees 2,006,016 - - 2,006,016
Other brokerage related income 2,837,589 209,709 - 3,047,298
Consulting fees 523,644 - - 523,644
Other 503,010 - - 503,010
------------------ ---------------- ---------------- ------------------
Total revenues 25,988,882 9,954,548 - 35,943,430
------------------ ---------------- ---------------- ------------------
Operating expenses:
Compensation, commissions and benefits 20,293,940 7,537,989 - 27,831,929
Clearing and transaction costs 3,017,243 803,515 - 3,820,758
General and administrative costs 2,752,786 1,163,853 - 3,916,639
Occupancy and equipment costs 743,295 1,638 - 744,933
Depreciation and amortization 299,604 - 681,200 980,804
Stock based compensation 19,412 - - 19,412
------------------ ---------------- ---------------- ------------------
Total operating expenses 27,126,280 9,506,995 681,200 37,314,475
------------------ ---------------- ---------------- ------------------
Income (loss) from operations (1,137,398) 447,553 (681,200) (1,371,045)
Income tax benefit (provision) -
Net income (loss) $(1,137,398) $ 447,553 $ (681,200) $(1,371,045)
================== ================ ================ ==================
Net income (loss) per share: basic and diluted $ (0.03) $ (0.05) $ (0.03)
================== ================ ==================
Weighted average shares outstanding:
basic and diluted 40,049,654 13,000,000 53,049,654
================== ================ ==================
The pro forma adjustment represents amortization expense related to the acquired customer relationship intangible asset,
which has been assigned a useful life of five years.
-4-
VFINANCE, INC
Unaudited Pro Forma Statement of Operations
For the six months ended June 30, 2006
vFinance Sterling Pro Forma Adjustments Pro Forma
---------------- --------------- ----------------------------------
Revenues:
Commissions - agency 9,524,835 1,259,971 - 10,784,806
Trading profits 4,004,032 2,295,419 - 6,299,451
Success fees 2,850,548 - - 2,850,548
Other brokerage related income 1,546,037 203,977 - 1,750,014
Consulting fees 303,026 - - 303,026
Other 352,836 - - 352,836
---------------- --------------- ---------------- ---------------
Total revenues 18,581,314 3,759,367 - 22,340,681
---------------- --------------- ---------------- ---------------
Operating expenses:
Compensation, commissions and benefits 14,208,788 3,194,837 - 17,403,625
Clearing and transaction costs 2,007,589 300,078 - 2,307,667
General and administrative costs 1,344,319 189,511 - 1,533,830
Occupancy and equipment costs 554,957 26,991 - 581,948
Depreciation and amortization 407,055 - 340,600 747,655
Stock based compensation 236,029 - - 236,029
---------------- --------------- ---------------- ---------------
Total operating expenses 18,758,737 3,711,417 340,600 22,810,754
---------------- --------------- ---------------- ---------------
Income (loss) from operations (177,423) 47,950 (340,600) (470,073)
Income tax benefit (provision) - - - -
Net income (loss) $(177,423) $ 47,950 $ (340,600) $(470,073)
================ =============== ================ ===============
Net income (loss) per share: basic and diluted $ (0.00) $ (0.03) $ (0.01)
================ ================ ===============
Weighted average shares outstanding:
basic and diluted 43,717,293 13,000,000 56,717,293
================ ================ ===============
The pro forma adjustment represents amortization expense related to the acquired customer relationship intangible asset, which
has been assigned a useful life of five years.
-5-
VFINANCE, INC
Unaudited Pro Forma Statement of Operations
For the six months ended June 30, 2005
vFinance Sterling Pro Forma Adjustment Pro Forma
----------------- -------------- --------------------- -------------
Revenues:
Commissions - agency 7,401,588 1,808,258 - 9,209,846
Trading profits 2,423,861 3,842,826 - 6,266,687
Success fees 1,005,401 - - 1,005,401
Other brokerage related income 1,397,770 12,208 - 1,409,978
Consulting fees 387,144 - - 387,144
Other 237,985 - - 237,985
----------------- -------------- ---------------- ----------------
Total revenues 12,853,749 5,663,292 - 18,517,041
----------------- -------------- ---------------- ----------------
Operating expenses:
Compensation, commissions and benefits 9,946,936 4,124,517 - 14,071,453
Clearing and transaction costs 1,523,343 381,878 - 1,905,221
General and administrative costs 1,109,647 689,620 - 1,799,267
Occupancy and equipment costs 360,366 1,383 - 361,749
Depreciation and amortization 134,799 - 340,600 475,399
Stock based compensation 2,647 - - 2,647
----------------- -------------- ---------------- ----------------
Total operating expenses 13,077,738 5,197,398 340,600 18,615,736
----------------- -------------- ---------------- ----------------
Income (loss) from operations (223,989) 465,894 (340,600) (98,695)
Income tax benefit (provision) - - - -
Net income (loss) $ (223,989) $465,894 $ (340,600) $ (98,695)
================= ============== ================ ================
Net income (loss) per share: basic and diluted $ (0.01) $ (0.03) $ (0.00)
================= ================ ================
Weighted average shares outstanding:
basic and diluted 39,815,966 13,000,000 52,815,966
================= ================ ================
The pro forma adjustment represents amortization expense related to the acquired customer relationship intangible asset,
which has been assigned a useful life of five years.
-6-
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.
Dated: December 29, 2006
vFinance, Inc.
By: /s/ Alan Levin
---------------------------
Name: Alan Levin
Title: Interim Chief Financial Officer
End of Filing
- 7 -