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): July 29, 2011

 

 

GREENMAN TECHNOLOGIES, INC.

(Exact name of Registrant as Specified in its Charter)

 

DELAWARE

(State or Other Jurisdiction of Incorporation)

 

1-13776   71-0724248
(Commission File Number)   (I.R.S. Employer Identification Number)

 

7 Kimball Lane

Lynnfield Massachusetts 01940

(Address of Principal Executive Offices, including Zip Code)

 

(781) 224-2411

(Registrant’s Telephone Number, including Area Code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation to the registrant under any of the following provisions:

 

□ 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))

 

 
 

Item 2.01 Completion of Acquisition or Disposition of Assets

 

On August 1, 2011, Green Tech Products, Inc. (“Green Tech Products”), an Iowa corporation and a wholly owned subsidiary of GreenMan Technologies, Inc. (the “Company”), completed the sale of substantially all of the assets used in Green Tech Products’ molded recycled rubber products business (the “Assets”) to Irish Knight Holdings, L.L.C. (the “Buyer”), an Iowa limited liability company co-owned by Timothy Mahoney and Ernest Knight, two former senior managers of Green Tech Products. The sale was made pursuant to an Asset Purchase Agreement dated as of June 13, 2011 between Green Tech Products and the Buyer. The Purchase Agreement was previously filed as an exhibit to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 15, 2011.

 

The consideration for the purchase of the Assets consists of (i) the assumption by the Buyer of substantially all of Green Tech Products’ liabilities, which were approximately $1,600,000 million at June 30, 2011; (ii) a $50,000 stock inventory credit toward the purchase of products and services from the Buyer, which credit may be applied during the first nine months after completion of the sale; and (iii) a promissory note in the principal amount of $100,000, which bears interest at the rate of 6% per annum and is payable in increasing monthly installments over a period of 60 months.

 

Green Tech Products retained a $100,000 product warranty reserve and potential liabilities associated with certain pending litigation. In addition, at the closing of the transaction, the Company agreed to indemnify one of the co-owners of the Buyer against any expenses he may incur in connection with the retained litigation.

 

Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.

 

On August 1, 2011, the Company filed a Certificate of Amendment to its Restated Certificate of Incorporation with the Secretary of State of the State of Delaware to increase the number of authorized shares of its common stock from 60,000,000 to 100,000,000 shares.

 

Item 5.07 Submission of Matters to a Vote of Security Holders 

 

On July 29, 2011, the Company held a Special Meeting of Stockholders, at which the Company’s stockholders approved the sale of the Assets described in Item 2.01, above, and the increase in the number of authorized shares of the Company’s Common Stock described in Item 5.03, above. The final voting results of each of these matters were as follows:

 

1.  Approval of the sale of substantially all of Green Tech Products’ Assets:

 

  Votes   Broker
Votes For Against Abstentions

Non-Votes

 

21,742,006 142,920 2,385 8,828,119

 

2.  Approval of the increase in the number of authorized shares of the Company’s Common Stock:

 

  Votes   Broker
Votes For Against Abstentions

Non-Votes

 

29,475,450 1,206,493 33,487 N/A

 

 
 

Item 7.01.  Regulation FD Disclosure

 

On August 2, 2011, the Company issued a press release announcing the completion of the sale of the Assets described in Item 2.01, above. A copy of the press release is furnished with this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

 

The information contained in Item 7.01 of this Current Report on Form 8-K (including Exhibit 99.1) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise be subject to the liabilities of that section. The information in this Item 7.01 (including Exhibit 99.1) shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, except as otherwise expressly stated in such filing.

 

Item 9.01.  Financial Statements and Exhibits

 

(b) Pro Forma Financial Information.

 

General Information

 

The following unaudited pro forma consolidated financial information sets forth the pro forma consolidated results of operations of the Company for the three and nine months ended June 30, 2011 and 2010 and the pro forma consolidated financial position of the Company as of June 30, 2011 as if we had sold the assets of Green Tech Products for their estimated fair value of $150,000.

 

The unaudited pro forma consolidated results of operations for the three and nine months ended June 30, 2011 and 2010 have been derived from the Company’s historical consolidated financial information and give effect to the following transaction as if it had occurred on October 1, 2010 (the earliest period presented). In addition, the unaudited pro forma consolidated balance sheet as of June 30, 2011 has been derived from the Company’s historical consolidated financial information and gives effect to the following transaction as if it had occurred on October 1, 2010:

 

Transaction — On June 13, 2011 we entered into an agreement to sell, subject to shareholder approval, substantially all of the assets of Green Tech Products, Inc. to Irish Knight Holdings, L.L.C., a company co-owned by two of Green Tech Products’ senior managers. Pursuant to the terms of the agreement, Irish Knight Holdings agreed to purchase substantially all of Green Tech Products’ assets, assume substantially all of its liabilities (less a $100,000 product warranty reserve) and provide $150,000 of additional consideration in the form of a promissory note and inventory credits.

 

The unaudited pro forma consolidated financial information has been prepared in accordance with Article 11 of Regulation S-X and should be read in conjunction with the Company’s historical audited consolidated financial statements.

 

The unaudited pro forma consolidated financial information does not purport to represent what the Company’s consolidated results of operations or consolidated financial position would have been if this transaction had occurred on the date indicated and are not intended to project the Company’s consolidated results of operations or consolidated financial position for any future period or date.

 

The unaudited pro forma adjustments are based on estimates and certain assumptions that the Company believes are reasonable. The unaudited consolidated pro forma adjustments and primary assumptions are described in the accompanying notes herein.

 
 

GREENMAN TECHNOLOGIES, INC.

Pro Forma Unaudited Consolidated Balance Sheet

As of June 30, 2011

 

 

   GreenMan
Historical
Consolidated
(1a)
  Disposal of
Molded Rubber Product Business
(1b)
  Disposal
Pro Forma
Adjustments
(1b)
     Pro Forma
Consolidated

ASSETS                         
Cash  $512,839   $264,419   $—          $248,420 
Certificates of deposit, restricted   565,000    —      —           565,000 
Accounts receivable, net   738,242    214,800    —           523,442 
Inventory   1,006,920    748,457              258,463 
Note and Inventory Credit Receivable   —      —      150,000    (1c)   150,000 
Other current assets   1,025,086    32,319    —           992,767 
Total current assets   3,848,087    1,259,995    150,000         2,738,092 
Property, plant and equipment   769,932    346,710    —           423,222 
Other assets   1,630,742    150    —           1,630,592 
Total assets  $6,248,761   $1,606,855   $150,000        $4,791,906 
                          
LIABILITIES AND STOCKHOLDERS’ EQUITY                         
Accounts Payable  $1,324,419   $381,112   $—          $943,307 
Accrued expenses and other liabilities   1,495,939    808,329    100,000    (1c)   787,610 
Notes payable, current   2,264,967    209,357    —           2,055,610 
Notes payable, related party, current   319,353    —      —           319,353 
Obligations under lease settlement, current   68,518    —      —           68,518 
Total current liabilities   5,473,196    1,398,798    100,000         4,174,398 
Notes payable, non-current   306,096    208,889    —           97,207 
Obligations under lease settlement, non-current   505,540    —      —           505,540 
Convertible notes payable   1,531,410    —      —           1,531,410 
Total liabilities   7,816,242    1,607,687    100,000         6,308,555 
                          
Preferred stock   —      —      —           —   
Common stock   361,732    —      —           361,732 
Additional paid in capital   40,014,362    —      —           40,014,362 
Common shares held as collateral   (20,000)   —      —           (20,000)
Accumulated deficit   (41,923,575)   (832)   50,000    (1c)   (41,872,743)
Total stockholders’ equity   (1,567,481)   (832)   50,000         (1,516,649)
Total liabilities and stockholders’ equity  $6,248,761   $1,606,855   $150,000        $4,791,906 

 

 

See the accompanying notes to the unaudited pro forma consolidated financial information.

 

 
 

GREENMAN TECHNOLOGIES, INC.

Pro Forma Unaudited Consolidated Statement of Operations

Three Months Ended June 30, 2011

 

 

   GreenMan Historical
Consolidated
(1a)
  Disposal of
Molded Rubber Product Business
(1b)
  Disposal
Pro Forma
Adjustments
(1b)
  Pro Forma
Consolidated

Net sales  $1,152,613   $610,241   $—     $542,372 
Cost of sales   980,385    471,241    —      509,144 
Gross profit   172,228    139,000    —      33,228 
Operating expenses:                    
Selling, general and administrative   1,037,781    297,990    —      739,791 
Research and development   393,698    —      —      393,698 
    1,431,479    297,990    —      1,133,489 
Operating loss   (1,259,251)   (158,990)   —      (1,100,261)
Other income (expense):                    
Interest and financing expense, net   (239,677)   (7,381)   —      (232,296)
Other, net   (50,971)   2    —      (50,973)
Other expense, net   (290,648)   (7,379)   —      (283,269)
Net loss from continuing operations before income taxes   (1,549,899)   (166,369)   —      (1,383,530)
Income tax benefit   322,393    —      —      322,393 
Net loss  $(1,227,506)  $(166,369)  $—     $(1,061,137)
                     
Net loss per share –basic and diluted  $(0.04)  $—     $—     $(0.03)
                     
Weighted average shares outstanding –basic   34,058,326    34,058,326   $—      34,058,326 

 

 

See the accompanying notes to the unaudited pro forma consolidated financial information.

 

 
 

GREENMAN TECHNOLOGIES, INC.

Pro Forma Unaudited Consolidated Statement of Operations

Three Months Ended June 30, 2010

 

 

   GreenMan Historical
Consolidated
(1a)
  Disposal of
Molded Rubber Product Business
(1b)
  Disposal
Pro Forma
Adjustments
(1b)
  Pro Forma
Consolidated

Net sales  $309,723   $276,909   $—     $32,814 
Cost of sales   369,270    175,993    —      193,277 
Gross (loss) profit   (59,547)   100,916    —      (160,463)
Operating expenses:                    
Selling, general and administrative   1,092,025    340,942    —      751,083 
Research and development   169,451    —      —      169,451 
    1,261,476    340,942    —      920,534 
Operating loss   (1,321,023)   (240,026)   —      (1,080,997)
Other income (expense):                    
Interest and financing expense, net   2,900    (8,027)   —      10,927 
Other, net   (16,240)   —      —      (16,240)
Other expense, net   (13,340)   (8,027)   —      (5,313)
Net loss  $(1,334,363)  $(248,053)  $—     $(1,086,310)
                     
Net loss per share –basic and diluted  $(0.04)  $(0.01)  $—     $(0.03)
                     
Weighted average shares outstanding –basic and diluted   33,113,310    33,113,310    —      33,113,310 

 

 

See the accompanying notes to the unaudited pro forma consolidated financial information.

 

 
 

GREENMAN TECHNOLOGIES, INC.

Pro Forma Unaudited Consolidated Statement of Operations

Nine Months Ended June 30, 2011

 

 

   GreenMan Historical
Consolidated
(1a)
  Disposal of
Molded Rubber Product Business
(1b)
  Disposal
Pro Forma
Adjustments
(1b)
  Pro Forma
Consolidated

Net sales  $2,858,659   $1,438,164   $—     $1,420,495 
Cost of sales   2,896,190    1,393,919    —      1,502,271 
Gross (loss) profit   (37,531)   44,245    —      (81,776)
Operating expenses:                    
Selling, general and administrative   3,356,316    980,154    —      2,376,162 
Impairment loss   423,250    273,650    —      149,600 
Research and development   907,231    —      —      907,231 
    4,686,797    1,253,804    —      3,432,993 
Operating loss   (4,724,328)   (1,209,559)   —      (3,514,769)
Other income (expense):                    
Interest and financing expense, net   (514,678)   (21,759)   —      (492,919)
Other, net   (102,044)   8,905    —      (110,949)
Other expense, net   (616,722)   (12,854)   —      (603,868)
Net loss from continuing operations before income taxes   (5,341,050)   (1,222,413)   —      (4,118,637)
Income tax benefit   322,393    —      —      322,393 
Net loss  $(5,018,657)  $(1,222,413)  $—     $(3,796,244)
                     
Net loss per share –basic and diluted  $(0.15)  $(0.04)  $—     $(0.11)
                     
Weighted average shares outstanding –basic   33,719,346    33,719,346    —      33,719,346 

 

 

See the accompanying notes to the unaudited pro forma consolidated financial information.

 

 
 

GREENMAN TECHNOLOGIES, INC.

Pro Forma Unaudited Consolidated Statement of Operations

Nine Months Ended June 30, 2010

 

 

   GreenMan Historical
Consolidated
(1a)
  Disposal of
Molded Rubber Product Business
(1b)
  Disposal
Pro Forma
Adjustments
(1b)
  Pro Forma
Consolidated

Net sales  $997,583   $803,391   $—     $194,192 
Cost of sales   1,394,835    593,681    —      801,154 
Gross (loss) profit   (397,252)   209,710    —      (606,962)
Operating expenses:                    
Selling, general and administrative   3,619,916    983,563    —      2,636,353 
Research and development   460,964    —      —      460,964 
    4,080,880    983,563    —      3,097,317 
Operating loss   (4,478,132)   (773,853)   —      (3,704,279)
Other income (expense):                    
Interest and financing expense, net   (1,999)   (26,265)   —      24,266 
Other, net   (168,955)   261    —      (169,216)
Other expense, net   (170,954)   (26,004)   —      (144,950)
Net loss  $(4,649,086)  $(799,857)  $—     $(3,849,229)
                     
Net loss per share –basic and diluted  $(0.14)  $(0.02)  $—     $(0.12)
                     
Weighted average shares outstanding –basic and diluted   33,093,208    33,093,208    —      33,093,208 

 

 

See the accompanying notes to the unaudited pro forma consolidated financial information.

 

 
 

GREENMAN TECHNOLOGIES, INC.

Notes to Condensed Interim Consolidated Financial Statements

(Unaudited)

 

 

I.   Adjustments to unaudited pro forma consolidated balance sheet

 

(a)   GreenMan Technologies, Inc.

Represents the historical unaudited consolidated balance sheet as of June 30, 2011.

 

(b)   Molded Rubber Product Business

Represents the elimination of the Molded Rubber Product Business’ assets and liabilities, as reflected in the historical unaudited consolidated balance sheet of the Company as of June 30, 2011.

 

(c)   Pro forma Adjustments

To record the estimated net proceeds the Company will receive from selling the assets and liabilities of the Molded Rubber Products Business.

 

II.   Adjustments to unaudited pro forma consolidated statements of operations

 

a)   GreenMan Technologies, Inc.

Represents the historical unaudited consolidated statement of operations for the three and nine months ended June 30, 2011 and 2010.

 

b)   Molded Rubber Product Business

Represents the elimination of Molded Rubber Product Business’ revenues and expenses as reflected in the historical consolidated statement of operations of the Company for the three and nine months ended June 30, 2011 and 2010.

 

 

 
 

(d)  Exhibits.

 

The following exhibits are filed with this report:

 

Exhibit  No.  Exhibit Description
   
3.1 Restated Certificate of Incorporation of GreenMan Technologies, Inc., as amended.
   
10.1 Promissory Note dated August 1, 2011, issued by Irish Knight Holdings, L.L.C.
   
10.2 Indemnification Agreement dated August 1, 2011 between GreenMan Technologies, Inc. and Timothy Mahoney.
   
99.1 Press release issued by GreenMan Technologies, Inc., dated August 2, 2011.

 

 

 
 

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.

 

GREENMAN TECHNOLOGIES, INC.

(Registrant)

 

 

By: /s/ Charles E. Coppa          

Charles E. Coppa

Chief Financial Officer

 

Date: August 4, 2011