8-K 1 bank8k.txt 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): April 9, 2003 VITALLABS, INC. (Exact name of registrant as specified in its charter) Nevada 000-20598 75-2293489 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 12547 66th Street North Largo Florida 33773 (Address of principal executive offices Zip Code) Registrant's telephone number, including area code: 727 538-2274 1375 South Fort Harrison Ave., Clearwater Florida 33756 (Former name or former address, if changed since last report) Item 1. Changes in Control of Registrant. NOT APPLICABLE Item 2. Acquisition or Disposition of Assets. NOT APPLICABLE Item 3. Bankruptcy or Receivership. On April 9, 2003, Med Tech Labs, Inc. (the Debtor in possession) filed a petition for relief under Chapter 11 of the federal bankruptcy laws in the United States Bankruptcy Court for the Middle District of Florida, Tampa Division, Case No. 03-07255-8G1. Med Tech Labs, Inc, is a wholly owned subsidiary of VitalLabs, Inc. (the registrant) Med Tech Labs, Inc. is substantially all of the assets or business of the registrant. Item 4. Changes in Registrant's Certifying Accountants. NOT APPLICABLE Item 5. Other Events and Regulation FD Disclosure. NOT APPLICABLE Item 6. Resignation of Registrant's Directors. NOT APPLICABLE Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. 8. Change in Fiscal Year. NOT APPLICABLE 9. Item FD Disclosure. Item 10. Amendments to the Registrant's Code of Ethics, or Waiver of a Provision of the Code of Ethics. NOT APPLICABLE 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. VitalLabs, INC. By /s/ Thomas W. Kearney, CFO Thomas W. Kearney, CFO (Principal financial and accounting officer) May 1, 2003

Year Ended December 31, ------------------------- 2001 2000 ------------------------- Revenues $ 11,245,885 $ 9,614,018 Cost of revenues 6,040,566 4,077,349 -------------- ------------- Gross profit 5,205,319 5,536,669 General and administrative expenses 6,846,192 5,800,716 -------------- ------------- Loss from operations (1,640,873) (264,047) -------------- ------------- Other income (expense): Other income (expense) 42,107 (19,372) Interest expense (300,782) (126,341) Payroll tax penalties (190,284) Lawsuit settlement (100,000) -------------- ------------- (448,959) (245,713) -------------- ------------- Net loss $ (2,089,832) $ (509,760) ============== ============= The accompanying notes are an integral part of the financial statements.

Additional Common Stock Paid-In Accumulated Treasury Stock --------------------- ----------------- Shares Amount Capital Deficit Shares Amount Total ------------------------------------------------------------------------------ Issuance of common stock 1,750 $ 1,750 $ 268,250 $ 270,000 Excess purchase price of acquisition of related company's assets and liabilities (69,276) (69,276) Net loss $ (509,760) (509,760) -------------------------------------------------------------------------------- Balance, December 31, 2000 1,750 1,750 198,974 (509,760) (309,036) Issuance of common stock for services 5,000 5,000 53,545 58,545 Acquisition of treasury stock 750 $(10,000) (10,000) Net loss (2,089,832) (2,089,832) -------------------------------------------------------------------------------- Balance, December 31, 2001 6,750 $ 6,750 $ 252,519 $(2,599,592) 750 $(10,000) $(2,350,323) ================================================================================ The accompanying notes are an integral part of the financial statements.

Year Ended December 31, ---------------------------- 2001 2000 ---------------------------- Operating activities Net loss $ (2,089,832) $ (509,760) ---------------------------- Adjustments to reconcile net loss to net cash used by operating activities: Depreciation and amortization 313,589 176,912 Common stock issued for services 58,545 (Increase) decrease in: Accounts receivable (662,599) (388,515) Other receivables 99,157 (99,158) Inventory (120,644) (98,246) Prepaid assets (18,313) (2,957) Other assets 18,904 (47,969) Increase (decrease) in: Accounts payable 378,448 653,907 Accrued liabilities (19,258) 270,776 Accrued payroll liabilities 1,308,319 ---------------------------- Total adjustments 1,356,148 464,750 ---------------------------- Net cash used by operating activities (733,684) (45,010) ---------------------------- Investing activities Acquisition of property and equipment (20,525) (223,382) Payment for non-compete agreement (10,000) Acquisition of Medical Technology Laboratories, Inc. (1,000,000) Cash acquired on acquisition of Med Services of America, Inc. 4,057 ---------------------------- Net cash used by investing activities (20,525) (1,229,325) ---------------------------- Financing activities Issuance of common stock 270,000 Net proceeds on line of credit 312,000 Proceeds from notes payable and notes to stockholders 748,105 1,419,134 Payment on notes payable and on capital lease obligations (375,851) (211,006) Net advances to related parties (62,904) (42,166) Acquisition of treasury stock (10,000) ---------------------------- Net cash provided by financing activities 611,350 1,435,962 ---------------------------- Net (decrease) increase in cash (142,859) 161,627 Cash at beginning of year 161,627 0 ---------------------------- Cash at end of year $ 18,768 $ 161,627 ============================ The accompanying notes are an integral part of the financial statements.

Year Ended December 31, --------------------------- 2001 2000 ---------------------------- Supplemental disclosures of cash flow information and noncash investing and financing activities: Cash paid for interest during the year $ 284,923 $ 96,023 ============================ On February 23, 2000, the Company entered into an agreement to purchase the assets and liabilities of Medical Technology Laboratories, Inc. (the "Lab") in a business combination accounted for as a purchase. The Company acquired all assets and liabilities of the Lab by paying $1,000,000 and assuming approximately $608,000 in debt. This agreement was effective as of January 1, 2000. In connection with the acquisition, liabilities assumed were as follows: Fair value of assets acquired $ 1,608,291 Cash paid for assets 1,000,000 ------------ Liabilities assumed $ 608,291 ============ The Company also acquired the assets and liabilities of Med Services of America, Inc. ("Med Services") in January 2000 from a stockholder. Med Services is primarily engaged in providing diagnostic medical testing services to nursing homes throughout central Florida. In the acquisition, the Company assumed debt of $96,733 and acquired assets totaling $27,457. The total cost of the acquisition exceeded the carrying value of the related company's net assets by $69,276. In accordance with accounting principles generally accepted in the United States of America, this excess was applied against the capital contributed by the stockholder. During the years ended December 31, 2001 and 2000, the Company acquired equipment with a fair value of approximately $237,000 and $85,000, respectively, by incurring obligations under capital leases. The accompanying notes are an integral part of the financial statements. 6

Historical -------------------------------- Med-Tech Pro Forma Pro Forma Labs, Inc. Vitallabs, Inc. Adjustments As Adjusted ------------- ---------------- ------------ ------------- Assets Current assets: Cash $ 18,768 $ 58 $ 18,826 Accounts receivable, net 1,843,038 1,843,038 Inventory 218,890 218,890 Prepaid expenses 21,270 21,270 ------------- ---------------- ------------ ------------- Total current assets 2,101,966 58 2,102,024 ------------- ---------------- ------------ ------------- Property and equipment, net 1,005,852 3,009 1,008,861 Other Assets 253,786 163 (37,008) (1) 216,941 ------------- ---------------- ------------ ------------- $ 3,361,604 $ 3,230 $ 3,327,826 ============= ================ ============ ============= Liabilities and Stockholders' Deficit Current Liabilities Accounts payable and accrued expenses $ 1,606,790 $ 131,255 $ 1,738,045 Note payable 809,165 34,061 843,226 Notes payable, stockholders and related parties 1,229,935 1,229,935 Current portion of accrued payroll liabilities 834,097 834,097 Due to related parties 37,008 (37,008) (1) Current portion of capital lease obligations 60,268 - 60,268 Net liabilities of discontinued operations, including related party of $31,171 29,781 29,781 ------------- ---------------- ------------ ------------- Total current liabilities 4,540,255 232,105 4,735,352 ------------- ---------------- ------------ ------------- Long-term liabilities: Accounts payable, long-term 224,034 - 224,034 Accrued payroll liabilities, net of current portion 474,222 - 474,222 Notes payable, net of current portion 226,000 - 226,000 Notes payable, stockholders and related parties, net of current portion 75,000 - 75,000 Capital lease obligations, net of current portion 172,416 - 172,416 ------------- ---------------- ------------ ------------- Total long-term liabilities 1,171,672 - 1,171,672 ------------- ---------------- ------------ ------------- Common stock payable - 58,700 58,700 Stockholders' Equity Preferred stock - 175 175 Common stock 6,750 15,145 (14,254) (2) 8,208 (6,750) (3) 7,317 (3) Additional Paid in Capital 252,519 22,610,467 14,254 (2) (46,689) (22,923,929) (3) Accumulated deficit (2,599,592) (22,913,362) 22,913,362 (2,599,592) ------------- ---------------- ------------ ------------- (2,340,323) (287,575) (2,637,898) Treasury stock, at cost (10,000) 10,000 - ------------- ---------------- ------------ ------------- Total stockholders' deficit (2,350,323) (287,575) (2,637,898) $ 3,361,604 $ 3,230 $ 3,327,826 ============= ================ ============ ============= (1) Eliminate intercompany accounts. (2) The Company's Board of Directors approved a 1 for 17 reverse stock split. (3) On April 5, 2002, the stockholders of MedTech Labs, Inc. exchanged all of their stock for a controlling interest in the stock of Vitallabs, Inc. (formerly Monogram Pictures, Inc.) As such, the stockholders of MedTech Labs, Inc. gained control of Vitallabs, Inc. in a business combination, which is accounted for as a reorganization of the Company.

Historical* -------------------------------- Med-Tech Pro Forma Pro Forma Labs, Inc. Vitallabs, Inc. Adjustments As Adjusted ------------- ---------------- ------------ ------------- Revenues $ 11,245,885 $ - $ 11,245,885 Cost of revenues 6,040,566 - 6,040,566 ------------- ---------------- ------------ ------------- Gross profit 5,205,319 - 5,205,319 General and administrative expenses 6,846,192 2,565,783 9,411,975 ------------- ---------------- ------------ ------------- Loss from operations (1,640,873) (2,565,783) (4,206,656) ------------- ---------------- ------------ ------------- Other income (expenses) (448,959) (448,959) ------------- ---------------- ------------ ------------- Net loss from continuing operations $ (2,089,832) $ (2,565,783) $ (4,655,615) ============= ================ ============ ============= Loss per share $ - $ (0.49) $ (1.15) ============= ================ ============ ============= Weighted average common shares outstanding - 5,226,828 (1,174,039) 4,052,789 ============= ================ ============ ============= *The above statements of operations do not include the discontinued operations of Medical Discounts Limited, Inc. and General Personnel Mangement, Inc., which were reported in the Vitallabs, Inc. December 31, 2001 Form 10KSB.

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