UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K/A

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported) April 20, 2018

 

ATTIS INDUSTRIES INC.

(Exact name of registrant as specified in its charter)

 

New York   001-13984   13-3832215
(State or other jurisdiction of   (Commission File Number)     (IRS Employer Identification No.)
incorporation)        

 

12540 Broadwell Road, Suite 2104
Milton, GA 30004

(Address of principal executive offices, including Zip Code)

 

(678) 580-5661
(Registrant's telephone number, including area code)

 

N/A

(Former name or former address, if changed since last report)

 

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:

 

☐ 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 (17CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company    ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐

 

 

 

 

 

 

Explanatory Note

 

As previously reported in a Current Report on Form 8-K filed on April 24, 2018 (the “Initial Form 8-K”), on April 20, 2018, pursuant to the Equity Securities Purchase Agreement dated February 20, 2018 by and among Attis Industries Inc. (formerly known as Meridian Waste Solutions, Inc.) (the “Company”), Attis Operations Inc. (formerly known as Meridian Waste Operations, Inc.) (“Seller”), Meridian Waste Acquisitions, LLC (“Buyer”), a Delaware limited liability company formed by Warren Equity Partners Fund II, and Jeffrey S. Cosman, an officer, director and majority shareholder of the Company, Buyer purchased from Seller all of the membership interests in each of the direct wholly-owned subsidiaries of Seller (the “Acquired Parent Entities”), which constitute the solid waste business, and each such Acquired Parent Entity continues as a wholly-owned subsidiary of Buyer. This Form 8-K/A amends the Initial Form 8-K to include the pro forma financial information required by Item 9.01(b) of Form 8-K and should be read in conjunction with the Initial Form 8-K.

 

Item 9.01. Financial Statements and Exhibits.

 

(b) Pro Forma Financial Information.

 

The unaudited pro forma condensed financial information is filed as Exhibit 99.1 to this Form 8-K/A and incorporated herein by reference.

 

(d) Exhibits:

 

Exhibit No.   Description
     
2.1 ±   Equity Securities Purchase Agreement, dated February 20, 2018, by and among Attis Operations Inc., Attis Industries Inc., Meridian Waste Acquisitions, LLC and Jeffrey S. Cosman (incorporated by reference to the Company’s Current Report on Form 8-K filed with the SEC on February 20, 2018).*
2.2 ±   Amendment No. 1 to the Equity Securities Purchase Agreement, dated March 30, 2018, by and among Attis Operations Inc., Attis Industries Inc., Meridian Waste Acquisitions, LLC and Jeffrey S. Cosman.*
2.3 ±   Amendment No. 2 to the Equity Securities Purchase Agreement, dated April 20, 2018, by and among Attis Operations Inc., Attis Industries Inc., Meridian Waste Acquisitions, LLC and Jeffrey S. Cosman.*
3.1 ±   Certificate of Amendment to Certificate of Incorporation of Attis Industries Inc.
4.1 ±   Warrant to Purchase Stock issued in favor of Meridian Waste Acquisitions, LLC, dated April 20, 2018.
4.2 ±   Second Amended and Restated Credit and Guaranty Agreement dated April 20, 2018 by and among Attis Operations Inc., Mobile Science Technologies, Inc., Attis Healthcare, LLC, Integrity Lab Solutions, LLC, Red X Medical LLC, Welness Benefits, LLC, LGMG, LLC, Attis Industries, LLC, Advanced Lignin Biocomposites LLC, Attis Envicare Medical Waste, LLC, Attis Genetics, LLC, Attis Federal Labs, LLC and Attis Commercial Labs, LLC, Attis Industries Inc. and certain of its subsidiaries, as guarantors, the lenders party thereto from time to time and Goldman Sachs Specialty Lending Group, L.P., as Administrative Agent, Collateral Agent, and Lead Arranger.
4.3 ±   Amended and Restated Term Loan Note issued in favor of Goldman Sachs Specialty Lending Holdings, Inc., in the principal amount of $8,158,333.79, dated April 20, 2018.
4.4 ±   Amended and Restated Pledge and Security Agreement between the grantors party thereto and Goldman Sachs Specialty Lending Group, L.P., dated April 20, 2018.
10.1 ±   Resignation and Executive Employment Agreement Termination Agreement dated April 20, 2018, by and among Attis Industries Inc., Walter H. Hall, Jr. and Jeffrey S. Cosman.
99.1   Pro forma financial statements of Attis Industries Inc. and its subsidiaries at December 31, 2017 and for the year ended December 31, 2017.

  

 

* The Company hereby undertakes to furnish supplementally a copy of any omitted schedule or exhibit to such agreement to the U.S. Securities and Exchange Commission upon request.

 

± Previously filed as an exhibit to the Company’s Current Report on Form 8-K filed on April 24, 2018.

 

  1  

 

 

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: April 26, 2018

 

  ATTIS INDUSTRIES INC.
   
  By:  /s/ Jeffrey S. Cosman
    Name: Jeffrey S. Cosman
    Title: Chief Executive Officer

 

 

2

 

Exhibit 99.1

 

ATTIS INDUSTRIES INC.

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION

 

On April 24, 2018, on April 20, 2018, pursuant to the Equity Securities Purchase Agreement dated February 20, 2018 by and among Attis Industries Inc. (formerly known as Meridian Waste Solutions, Inc.) (the “Company”), Attis Operations Inc. (formerly known as Meridian Waste Operations, Inc.) (“Seller”), Meridian Waste Acquisitions, LLC (“Buyer”), a Delaware limited liability company formed by Warren Equity Partners Fund II, and Jeffrey S. Cosman, an officer, director and majority shareholder of the Company, Buyer purchased from Seller all of the membership interests in each of the direct wholly-owned subsidiaries of Seller (the “Acquired Parent Entities”), which constitute the solid waste business (the “Solid Waste Business”), and each such Acquired Parent Entity continues as a wholly-owned subsidiary of Buyer.

 

The following unaudited pro forma condensed consolidated financial statements have been derived by the application of pro forma adjustments to the Company’s historical consolidated financial statements, which have been presented to give effect to the disposition of the Solid Waste Business. The unaudited pro forma condensed consolidated balance sheet as of December 31, 2017 is presented as if the disposition had occurred as of December 31, 2017. The unaudited pro forma condensed consolidated statement of operations for the year ended December 31, 2017 is presented as if the disposition had occurred on January 1, 2017. The unaudited pro forma condensed consolidated balance sheet and statement of operations for these respective periods are being provided for illustrative purposes only and do not purport to represent what our results of operations or financial position would have been if the transaction had occurred on the dates indicated and are not intended to project our results of operations or financial position for any future period. Any of the factors underlying these estimates and assumptions may change or prove to be materially different and the estimates and assumptions may not be representative of facts that existed upon completion of the disposition.

 

The unaudited pro forma adjustments are based on estimates, available information and certain assumptions that the Company believes are reasonable. The unaudited pro forma condensed consolidated financial statements should be read in conjunction with the historical consolidated financial statements and accompanying notes of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

 

 

 

 

MERIDIAN WASTE SOLUTIONS, INC. AND SUBSIDIARIES

 

UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET

 

 

 

    December 31, 2017     ADJUSTMENTS     NOTES   PRO FORMA  
Assets                      
Current assets:                      
                       
Cash and cash equivalents   $ 400,223       1,300,000     (a)   $ 1,700,223  
Accounts receivable, net of allowance     861,031                   861,031  
Prepaid expenses     334,603                   334,603  
Other current assets     6,450                   6,450  
Current assets held for sale     8,714,497       (8,714,497 )   (b)     -  
                             
Total current assets     10,316,804       (7,414,497 )         2,902,307  
                             
Property, plant and equipment, at cost net of accumulated depreciation     333,499                   333,499  
                             
Other assets:                            
                             
Contract deposits     536,076                   536,076  
Other deposits     162,206                   162,206  
Goodwill     5,279,207                   5,279,207  
Capitalized software     108,767                   108,767  
Patents     3,141,796                   3,141,796  
Customer list, net of accumulated amortization     2,718,300                   2,718,300  
Website, net of accumulated amortization     27,117                   27,117  
                             
Total other assets     11,973,469       -           11,973,469  
                             
Total noncurrent assets held for sale     80,932,386       (80,932,386 )   (b)     -  
                             
Total assets   $ 103,556,158     $ (88,346,883 )       $ 15,209,275  
                             
Liabilities and Shareholders’ Deficit                            
Current liabilities:                            
Accounts payable   $ 1,777,355                 $ 1,777,355  
Accrued expenses     820,458                   820,458  
Notes payable, related parties     6,891                   6,891  
Deferred compensation     -                   -  
Derivative and other fair value liabilities     2,307,363                   2,307,363  
Current portion - capital leases payable     25,999                   25,999  
Current portion - long term debt     8,502,387                   8,502,387  
Current liabilities held for sale     84,227,518       (84,227,518 )   (b)     -  
                             
Total current liabilities     97,667,971       (84,227,518 )         13,440,453  
                             
Long term liabilities:                            
Contingent consideration liability     1,957,226                   1,957,226  
Deferred tax liability     14,337                   14,337  
Deferred rent     53,418                   53,418  
Long term debt, net of current     1,977,707                   1,977,707  
Noncurrent liabilities held for sale     17,307,998       (17,307,998 )   (b)     -  
                             
Total long term liabilities     21,310,686       (17,307,998 )         4,002,688  
                             
Total liabilities     118,978,657       (101,535,516 )         17,443,141  
                             
Preferred Series C stock redeemable, cumulative, stated value $100 per share, par value $.001, 67,361 shares authorized, 35,750 and 0 shares issued and outstanding, respectively     -                 -  
                             
Preferred Series E stock, cumulative, stated value $100 per share, par value $.001, 300,000 shares authorized, 300,000 and 0 shares issued and outstanding, respectively     1,253,476                   1,253,476  
                             
Shareholders’ deficit:                            
Preferred Series A stock, par value $.001, 51 shares authorized, issued and outstanding     -                   -  
Preferred Series B stock, par value $.001, 71,210 shares authorized, 0 and 71,210 issued and outstanding     -                   -  
Preferred Series D stock, cumulative, stated value $100 per share, par value $.001, 141,000 shares authorized, 141,000 and 0 shares issued and outstanding, respectively     531,691                   531,691  
Common stock, par value $.025, 75,000,000 shares authorized, 14,658,979 and 1,712,471 shares issued and 14,647,749 and 1,700,971 shares outstanding, respectively     366,156                   366,156  
Common stock to be issued     720,147                   720,147  
Treasury stock, at cost, 11,500 shares     (224,250 )                 (224,250 )
Additional paid in capital     65,532,467                   65,532,467  
Accumulated deficit     (85,061,593 )     13,188,633      (c)     (71,872,960 )
Total Meridian Waste Solutions, Inc. shareholders’ deficit     (18,135,382 )                 (4,946,749 )
Noncontrolling Interest     1,459,407                   1,459,407  
Total shareholders ‘equity     (16,675,975 )     13,188,633           (3,487,341 )
                             
Total liabilities and shareholders’ deficit   $ 103,556,158     $ 88,346,883         $ 15,209,275  

 

(a) This adjustment represents the receipt of cash consideration at the closing of the transaction, net of $1,700,000 of costs incurred

 

(b) This adjustment reflects the elimination of assets and liabilities attributable to the waste business

 

(c) This adjustment reflects the gain of $13,188,633 arising from the transaction as of April 20, 2018. This estimated gain has not been reflected in the pro forma statement of operations as it is considered to be nonrecurring in nature. No adjustment has been made to the sale proceeds to give effect to any potential post-closing adjustments under the terms of the purchase agreement.

 

 

 

 

MERIDIAN WASTE SOLUTIONS, INC. AND SUBSIDIARIES

 

UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

 

 

 

    Year Ended  December 31, 2017     ADJUSTMENTS     NOTES   PRO FORMA  
Revenue                      
Services   $ 890,258                 $ 890,258  
                             
Total revenue     890,258                   890,258  
                             
Cost and expenses:                            
Operating     691,415                   691,415  
Depreciation and amortization     223,977                   223,977  
Impairment expense     221,146                   221,146  
Selling, general and administrative     13,198,096                   13,198,096  
                             
Total cost and expenses     14,334,634                   14,334,634  
                             
Other income (expenses):                            
Unrealized gain (loss) on change in fair value of derivative and other fair value liabilities     (992,115 )                 (992,115 )
Unrealized gain from change in fair value of contingent consideration     263,458                   263,458  
Gain on extinguishment of debt     2,911,417                   2,911,417  
Interest income     7,644                   7,644  
Interest expense     (620,923 )                 (620,923 )
                             
Total other income (expenses)     1,569,481                   1,569,481  
                             
Loss before income taxes     (11,874,895 )                 (11,874,895 )
                             
Provision for income taxes     (14,337 )                 (14,337 )
                             
Loss from continuing   $ (11,889,232 )               $ (11,889,232 )
                             
Discontinued Operations                            
Loss from operations of discontinued operations   $ (27,148,257 )     27,148,257     (d)     -  
                             
Consolidated Net Loss   $ (39,037,489 )               $ (11,889,232 )
                             
Net loss attributable to noncontrolling interest   $ 123,523                 $ 123,523  
                             
Net loss available to common shareholders   $ (39,161,012 )               $ (12,012,755 )
                             
Deemed dividend related to beneficial conversion feature and accretion of a discount on Series C Preferred Stock   $ (2,115,317 )               $ (2,115,317 )
                             
Stock dividend related to Series C Preferred Stock   $ (135,072 )               $ (135,072 )
                             
Deemed dividend related to issuance of Series D Preferred Stock   $ (531,692 )               $ (531,692 )
                             
Stock dividend related to issuance of Series D Preferred Stock   $ (106,874 )               $ (106,874 )
                             
Deemed dividend related to issuance of Series E Preferred Stock   $ (1,253,476 )               $ (1,253,476 )
                             
Stock dividend related to issuance of Series E Preferred Stock   $ (703,168 )               $ (703,168 )
                             
Net loss attributable to common stockholders   $ (44,006,611 )               $ (16,858,354 )
                             
Earnings per common share (basic and diluted):                            
Loss from continuing operations     (1.77 )                 (1.77 )
Loss from discontinued operations     (2.86 )                 -  
Net loss per common share   $ (4.63 )               $ (1.77 )
                             
Weighted average number of shares outstanding                            
(Basic and Diluted)     9,547,042                   9,547,042  

 

(d) This adjustment reflects the elimination of our waste business, which was classified as discontinued operations