Delaware
|
|
02-0545879
|
(State
or other jurisdiction
of
incorporation or organization)
|
|
(I.R.S.
Employer
Identification
No.)
|
Title
of each class
|
|
Name
of each exchange on which registered
|
None
|
|
None
|
Yes
o
|
|
No
x
|
Yes
o
|
|
No
x
|
Yes
o
|
|
No
x
|
Large
Accelerated Filer o
|
Accelerated
Filer o
|
Non-accelerated
Filer o
|
Smaller
reporting company x
|
Yes
o
|
|
No
x
|
|
Page
|
||
PART
I
|
|
|
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Item 1.
|
Business
|
3
|
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Item 1.A.
|
Risk
Factors
|
10
|
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Item 1.B.
|
Unresolved
Staff Comments
|
13
|
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Item 2.
|
Properties
|
13
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Item 3.
|
Legal
Proceedings
|
13
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Item 4.
|
Submission
of Matters to a Vote of Securities Holders
|
13
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PART
II
|
|||
Item 5.
|
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
14
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Item 6.
|
Selected
Financial Data
|
16
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Item 7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operation
|
16
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Item 7A.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
19
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Item 8.
|
Financial
Statements and Supplementary Data
|
20
|
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Item 9.
|
Changes
in and Disagreements With Accountants on Accounting and Financial
Disclosure
|
37
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Item 9A(T).
|
Controls
and Procedures
|
37
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Item 9B.
|
Other
Information
|
38
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PART
III
|
|||
Item 10.
|
Directors,
Executive Officers and Corporate Governance
|
38
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Item 11.
|
Executive
Compensation
|
40
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Item 12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
41
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Item 13.
|
Certain
Relationships and Related Transactions, and Director
Independence
|
41
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Item 14.
|
Principal
Accounting Fees and Services
|
41
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PART
IV
|
|||
Item 15.
|
Exhibits,
Financial Statement Schedules
|
42
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||
SIGNATURES | 43 | ||
INDEX
TO EXHIBITS
|
44
|
· |
Can
be provided in customized multiple configurations and types,
creating buildings of various types; educational facilities, medical
centers, office buildings; one-story or up to three-story, buildings,
classrooms, and as many variations as the client needs and
dictates;
|
· |
Exceeds
minimum American Society of Heating, Refrigerating and Air-Conditioning
Engineers (“ASHRAE”) Indoor Quality
Standards;
|
· |
A
truly relocatable building, if so
desired;
|
· |
Exterior
compatibility with the site and existing
buildings;
|
· |
Attractive
leasing and lease-purchase options;
|
· |
Can
be integrated with conventional construction and/or other modular
building
components;
|
· |
One
unit, entire building or complex;
|
· |
Sustainable
(“green”) building solutions;
|
· |
Have
solved previous conception and perception problems of modular
construction; and
|
· |
Design,
fabricate and install with a one-stop single source of responsibility
firm
- minimizing a client's coordination and communication efforts between
a
multitude of professionals and
vendors.
|
· |
The
current K-12 classroom facilities in the state of Florida are
as
follows:
|
Permanent
classrooms
|
133,528
|
|||
18,858
|
||||
Total
classrooms
|
152,386
|
·
|
The
total gross square feet of all K-12 facilities in the state of
Florida is
360.1 million.
|
·
|
The
average age of K-12 facilities in the state of Florida
are:
|
·
|
Low
of 15 years for Collier County
|
·
|
High
of 37 years for Jefferson County
|
·
|
An
average of 25 years throughout the state of
Florida
|
·
|
The
estimated annual requirements for the current K-12 facilities are
$664
million.
|
·
|
Based
on 2% replacement value applied to year 2000 inventory - State
Funding
Only
|
· |
The
estimated five year needs for K-12 are as
follows:
|
·
|
Projected
five year Full Time Equivalency ("FTE") growth in K-12: 190,408
students
|
·
|
Approximately
7,616 new classrooms required before the Class Size Amendment and
Pre-K
|
·
|
The
possibility exists that classroom numbers could increase by more
than 25%,
depending on the effect of impacts provided for in the Class Size
Amendment to the State Constitution and the current Pre-K legislation
recently passed.
|
|
K-12
|
Colleges
|
Universities
|
Total
|
|||||||||
Deferred
maintenance
|
3,400
|
255
|
1,200
|
4,855
|
|||||||||
Renovation/Rebuilding
|
2,270
|
487
|
260
|
3,017
|
|||||||||
Remodeling
|
1,591
|
449
|
780
|
2,820
|
|||||||||
New
construction
|
12,438
|
1,144
|
1,560
|
15,142
|
|||||||||
TOTAL
|
19,699
|
2,335
|
3,800
|
25,834
|
|||||||||
Source:
K-12 5 year work plans. CC & SUS capital improvement
plans
|
|
K-12
|
Colleges
|
Universities
|
Total
|
|||||||||
Deferred
maintenance
|
5,950
|
446
|
2,100
|
8,496
|
|||||||||
Renovation/Rebuilding
|
3,973
|
852
|
455
|
5,280
|
|||||||||
Remodeling
|
2,784
|
786
|
1,365
|
4,935
|
|||||||||
New
construction
|
21,767
|
2,002
|
2,730
|
26,499
|
|||||||||
TOTAL
|
34,474
|
4,086
|
6,650
|
45,210
|
|||||||||
Source:
K-12 5 year work plans. CC & SUS capital improvement
plans
|
Square
Footage
|
|||||||||||||
Total Acres |
Office
|
Operations
|
Total
|
||||||||||
Corporate
Offices
|
|
||||||||||||
1
Melbourne, Florida
|
2,200
|
2,200
|
|||||||||||
Manufacturing
Facility
|
|||||||||||||
2
Orlando, Florida
|
4
|
1,600
|
-
|
1,600
|
1
|
This
office is leased through May 31, 2012.
|
|||||
2
|
This
land space was leased through December 31, 2007. It is
presently occupied
on a month-to-month
basis.
|
(1)
|
Approved
the merger of the Company's wholly-owned subsidiary with
and into NCSI
including the issuance of 4,334,429 shares of the Company's
common stock
to the shareholders of NCSI:
|
|
(2)
|
Approved
a 1-for-10 reverse stock split of the Company's issued
and outstanding
shares:
|
|
(3)
|
Approved
the change in the Company's name from K-2 Digital, Inc.,
to
ABCC.
|
2007
|
2006
|
||||||||||||||||||||||||
4th
|
3rd
|
2nd
|
1st
|
4th
|
3rd
|
2nd
|
1st
|
||||||||||||||||||
Qtr.
|
|
Qtr.
|
|
Qtr.
|
|
Qtr.
|
|
Qtr.
|
|
Qtr.
|
|
Qtr.
|
|
Qtr.
|
|||||||||||
High
|
$
|
1.74
|
$
|
2.01
|
$
|
1.20
|
$
|
1.80
|
$
|
0.90
|
$
|
0.80
|
$
|
1.20
|
$
|
1.60
|
|||||||||
Low
|
$
|
0.40
|
$
|
0.35
|
$
|
0.50
|
$
|
0.50
|
$
|
0.46
|
$
|
0.51
|
$
|
0.60
|
$
|
0.50
|
|||||||||
Close
|
$
|
0.95
|
$
|
1.19
|
$
|
0.56
|
$
|
0.60
|
$
|
0.60
|
$
|
0.51
|
$
|
0.80
|
$
|
0.60
|
#
Of Shares Granted
|
|
|
|
|
|
||||||||
|
|
That
Have Not Been
|
|
|
|
Expiration
|
|
|
|
||||
Date
of agreement
|
|
Exercised
|
|
Agreement
Price
|
|
Date
|
|
Status
|
|||||
12/9/1997
|
500
|
$
|
17.50
|
12/9/2007
|
EXPIRED
|
||||||||
1/16/2001
|
2,500
|
$
|
8.13
|
1/15/2006
|
EXPIRED
|
||||||||
4/14/2000
|
500
|
$
|
58.13
|
4/14/2010
|
|
||||||||
4/14/2000
|
1,700
|
$
|
50.00
|
4/14/2010
|
|
||||||||
12/9/1997
|
500
|
$
|
17.50
|
12/9/2007
|
EXPIRED
|
||||||||
12/9/1997
|
500
|
$
|
17.50
|
12/9/2007
|
EXPIRED
|
||||||||
6/16/1999
|
500
|
$
|
25.63
|
6/16/2009
|
|
||||||||
4/1/2000
|
125
|
$
|
58.13
|
4/1/2010
|
|
||||||||
12/9/1997
|
1,000
|
$
|
17.50
|
12/9/2007
|
EXPIRED
|
||||||||
12/9/1997
|
500
|
$
|
17.50
|
12/9/2007
|
EXPIRED
|
||||||||
6/16/1999
|
500
|
$
|
25.63
|
6/16/2009
|
|||||||||
Total
Issued
|
8,825
|
||||||||||||
Average
|
|||||||||||||
Purchase
Price
|
|||||||||||||
Total
Current
|
3,325
|
$
|
19.16
|
#
Of Shares Granted
|
|
||||||||||||
|
That
Have Not Been
|
|
Expiration
|
|
|||||||||
Date
of agreement
|
Exercised
|
Agreement
Price
|
Date
|
Status
|
|||||||||
12/1/2000
|
100
|
$
|
10.9380
|
12/1/2010
|
|||||||||
4/14/2000
|
24,600
|
$
|
50.0000
|
4/14/2010
|
|||||||||
1/2/2001
|
10,000
|
$
|
7.5000
|
1/2/2011
|
|||||||||
4/27/2007
|
20,000
|
$
|
0.8500
|
4/27/2017
|
|||||||||
4/27/2007
|
10,000
|
$
|
0.8500
|
4/27/2017
|
|||||||||
4/27/2007
|
10,000
|
$
|
0.8500
|
4/27/2017
|
|||||||||
7/7/1999
|
1,000
|
$
|
25.0000
|
7/7/2009
|
|||||||||
6/1/2000
|
500
|
$
|
54.3750
|
6/1/2010
|
|||||||||
12/1/2000
|
500
|
$
|
10.9380
|
12/1/2010
|
|||||||||
10/22/1998
|
40,000
|
$
|
15.0000
|
10/22/2008
|
|||||||||
6/1/2000
|
500
|
$
|
54.3750
|
6/1/2010
|
|||||||||
3/15/2001
|
5,000
|
$
|
6.5620
|
3/15/2011
|
|||||||||
7/7/1999
|
1,000
|
$
|
25.0000
|
7/7/2009
|
|||||||||
6/1/2000
|
500
|
$
|
54.3750
|
6/1/2010
|
|||||||||
8/19/2002
|
4,000
|
$
|
0.5000
|
8/19/2012
|
|||||||||
12/9/1997
|
500
|
$
|
17.5000
|
12/9/2007
|
EXPIRED
|
||||||||
10/1/1999
|
750
|
$
|
29.3750
|
10/1/2009
|
|||||||||
6/1/2000
|
500
|
$
|
54.3750
|
6/1/2010
|
|||||||||
4/27/2007
|
10,000
|
$
|
0.8500
|
4/27/2017
|
|||||||||
Total
Issued
|
139,450
|
Average
|
|||||||||||||
Purchase
Price
|
|||||||||||||
|
|||||||||||||
Total
Current
|
|
|
138,950
|
|
$
|
15.68
|
|
|
|
|
|
|
|
·
|
contains
a description of the nature and level of risks in the market
for penny
stocks in both public offerings and secondary
trading;
|
·
|
contains
a description of the broker's or dealer's duties to the
customer and of
the rights and remedies available to the customer with
respect to a
violation to such duties or other requirements of Securities'
laws;
contains a brief, clear, narrative description of a dealer
market,
including bid and ask prices for penny stocks and the significance
of the
spread between the bid and ask price;
|
·
|
contains
a toll-free telephone number for inquiries on disciplinary
actions;
|
·
|
defines
significant terms in the disclosure document or in the
conduct of trading
in penny stocks; and
|
·
|
contains
such other information and is in such form, including language,
type, size
and format, as the Commission shall require by rule or
regulation.
|
·
|
bid
and offer quotations for the penny stock;
|
·
|
the
compensation of the broker-dealer and its salesperson
in the
transaction;
|
·
|
the
number of shares to which such bid and ask prices apply,
or other
comparable information relating to the depth and liquidity
of the marker
for such stock; and
|
·
|
monthly
account statements showing the market value of each penny
stock held in
the customer's account.
|
·
|
Revenue
recognition
|
·
|
Product
warranty reserve
|
·
|
Allowance
for uncollectible accounts
|
·
|
Title
and risk of ownership have passed to the
customer;
|
·
|
The
Company has obtained a written fixed purchase
commitment;
|
·
|
The
customer has requested in writing the transaction be
on a bill and hold
basis;
|
·
|
The
customer has provided a delivery
schedule;
|
·
|
All
performance obligations related to the sale have been
completed;
|
·
|
The
modular unit has been processed to the customer’s specifications, accepted
by the customer and made ready for shipment;
and
|
·
|
The
modular unit is segregated and is not available to
fill other
orders.
|
Page
|
||||
|
|
|||
Report
of Independent Registered Public Accounting Firm
|
21
|
|||
Consolidated
Financial Statements
|
||||
Consolidated
Balance Sheets as of December 31, 2007 and 2006
|
22
- 23
|
|||
Consolidated
Statements of Operations for the Year Ended December 31, 2007
and
2006
|
24
|
|||
Consolidated
Statements of Stockholders’ Equity for the Year Ended December 31, 2007
and 2006
|
25
|
|||
Consolidated
Statements of Cash Flows for the Year Ended December 31, 2006
and
2006
|
26
- 27
|
|||
Notes
to Consolidated Financial Statements
|
28
- 36
|
ACCELERATED
BUILDING CONCEPTS CORPORATION
|
|
f/k/a
K2 DIGITAL, INC.
|
|
and
SUBSIDIARIES
|
|
Consolidated
Balance Sheets
|
|
December
31,
|
2007
|
2006
|
||||||
ASSETS
|
|||||||
Current
Assets
|
|||||||
Cash
|
$
|
394
|
$
|
458,652
|
|||
Accounts
Receivable, Net
|
39,606
|
385,098
|
|||||
Prepaid
Expenses
|
44,773
|
20,473
|
|||||
Total
Current Assets
|
84,773
|
864,223
|
|||||
Property,
Plant and Equipment, Net
|
500,350
|
620,046
|
|||||
Total
Assets
|
$
|
585,123
|
$
|
1,484,269
|
See
accompanying notes to consolidated financial statements.
|
ACCELERATED
BUILDING CONCEPTS CORPORATION
|
|
f/k/a
K2 DIGITAL, INC.
|
|
and
SUBSIDIARIES
|
|
Consolidated
Balance Sheets
|
|
December
31,
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
2007
|
2006
|
||||||
Current
Liabilities
|
|||||||
Notes
Payable, Current Portion
|
$
|
647,941
|
$
|
1,257,924
|
|||
Accounts
Payable and Accrued Expenses
|
843,328
|
688,842
|
|||||
Accrued
Payroll and Taxes
|
192,939
|
234,656
|
|||||
Billings
in Excess of Costs on Uncompleted Contracts
|
38,010
|
650,771
|
|||||
Deferred
Revenue
|
98,206
|
-
|
|||||
Total
Current Liabilities
|
1,820,424
|
2,832,193
|
|||||
Noncurrent
Liabilities
|
|||||||
Notes
Payable, Noncurrent Portion
|
622,918
|
442,265
|
|||||
Total
Noncurrent Liabilities
|
622,918
|
442,265
|
|||||
Total
Liabilities
|
2,443,342
|
3,274,457
|
|||||
Stockholders'
Equity
|
|||||||
Series
A convertible preferred stock, voting, $0.01 par value,
1,000,000
|
|||||||
shares
authorized, 1,000,000 shares issued and outstanding
|
-
|
10,000
|
|||||
Series
B convertible preferred stock, voting, $0.315 par value,
1,000,000
|
|||||||
shares
authorized, 606,944 shares issued and outstanding
|
-
|
191,794
|
|||||
Series
C convertible preferred stock, voting, $0.555 par value,
100,000
|
|||||||
shares
authorized, 90,000 shares issued and outstanding
|
-
|
50,000
|
|||||
Series
D convertible preferred stock, voting, $0.665 par value,
500,000
|
|||||||
shares
authorized, 424,225 shares issued and outstanding
|
-
|
282,000
|
|||||
Common
stock, $0.1 par value, 24,000,000 shares authorized;
7,718,465
|
|||||||
shares
issued, 7,676,723 shares outstanding
|
771,844
|
-
|
|||||
Common
stock, $0.01 par value, 30,000,000 shares authorized,
1,600,000
|
|||||||
shares
issued and outstanding
|
-
|
485
|
|||||
Additional
Paid In Capital
|
12,099,150
|
199,980
|
|||||
Subscriptions
Receivable
|
(250,000
|
)
|
(57
|
)
|
|||
Treasury
Stock
|
(819,296
|
)
|
-
|
||||
Distributions
|
-
|
(158,283
|
)
|
||||
Accumulated
Deficit
|
(13,659,917
|
)
|
(2,366,107
|
)
|
|||
Total
Stockholders' Equity
|
(1,858,219
|
)
|
(1,790,188
|
)
|
|||
Total
Liabilities and Stockholders' Equity
|
$
|
585,123
|
$
|
1,484,269
|
|||
See
accompanying notes to consolidated financial
statements.
|
ACCELERATED
BUILDING CONCEPTS CORPORATION
|
|
f/k/a
K2 DIGITAL, INC.
|
|
and
SUBSIDIARIES
|
|
Consolidated
Statements of Operations
|
|
For
the Years Ended December 31,
|
2007
|
2006
|
||||||
Sales
|
$
|
1,964,509
|
$
|
6,678,617
|
|||
Cost
of Sales
|
1,511,514
|
4,783,727
|
|||||
Gross
Profit (Loss)
|
452,995
|
1,894,890
|
|||||
Operating
Expenses
|
878,217
|
1,440,797
|
|||||
Income
From Operations
|
(425,222
|
)
|
454,093
|
||||
Interest
Income / (Expense), Net
|
(172,371
|
)
|
(243,145
|
)
|
|||
Income
(Loss) Before Extraordinary Item
|
(597,593
|
)
|
210,948
|
||||
Extraordinary
Item - Theft
|
-
|
325,000
|
|||||
Net
Loss After Extrordinary Item
|
$
|
(597,593
|
)
|
$
|
(114,052
|
)
|
|
Basic
and diluted based upon
|
|||||||
5,804,849
weighted average
|
|||||||
shares
outstanding
|
$
|
(0.10
|
)
|
||||
Basic
and diluted based upon
|
|||||||
5,024,465
weighted average
|
|||||||
shares
outstanding
|
$
|
(0.020
|
)
|
||||
See
accompanying notes to consolidated financial
statements.
|
ACCELERATED
BUILDING CONCEPTS CORPORATION
|
|
f/k/a
K2 DIGITAL, INC.
|
|
and
SUBSIDIARIES
|
|
Consolidated
Statements of Stockholders' Equity
|
|
For
the Year Ended December 31, 2007
|
|
|
|
|
|
|
|
Additional
|
|
|
|
|
Total
|
|||||||||||||||||||||||||
|
|
|
|
|
Common
Stock
|
Paid-in
|
Subscriptions
|
|
Accumulated
|
Treasury
|
Shareholders'
|
||||||||||||||||||||||||||
|
Series
A
|
Series
B
|
Series
C
|
Series
D
|
Shares
|
Amount
|
Capital
|
Receivable
|
Distributions
|
Deficit
|
Stock
|
Equity
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Balance,
January 1, 2006
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
-
|
$
|
325
|
$
|
-
|
$
|
-
|
$
|
(158,283
|
)
|
$
|
(2,252,055
|
)
|
$
|
-
|
$
|
(2,410,013
|
)
|
|||||||||||
|
|||||||||||||||||||||||||||||||||||||
Issuance
of Series A
|
10,000
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
10,000
|
|||||||||||||||||||||||||
Issuance
of Series B
|
-
|
191,794
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
191,794
|
|||||||||||||||||||||||||
Issuance
of Series C
|
-
|
-
|
50,000
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
50,000
|
|||||||||||||||||||||||||
Issuance
of Series D
|
-
|
-
|
-
|
282,000
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
282,000
|
|||||||||||||||||||||||||
Issuance
of Common Stock
|
-
|
-
|
-
|
-
|
-
|
160
|
199,980
|
-
|
-
|
-
|
-
|
200,140
|
|||||||||||||||||||||||||
Subscriptions
Receivable
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(57
|
)
|
-
|
-
|
-
|
(57
|
)
|
|||||||||||||||||||||||
Net
(loss)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(114,052
|
)
|
-
|
(114,052
|
)
|
|||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||
Balance,
December 31, 2006
|
$
|
10,000
|
$
|
191,794
|
$
|
50,000
|
$
|
282,000
|
1,600,000
|
$
|
485
|
$
|
199,980
|
$
|
(57
|
)
|
$
|
(158,283
|
)
|
$
|
(2,366,107
|
)
|
$
|
-
|
$
|
(1,790,188
|
)
|
||||||||||
|
|||||||||||||||||||||||||||||||||||||
Conversion
of Preferred Stock
|
(10,000
|
)
|
(191,794
|
)
|
(50,000
|
)
|
(282,000
|
)
|
2,121,169
|
21,212
|
512,582
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Recapitalization
|
-
|
-
|
-
|
-
|
1,303,296
|
480,747
|
10,794,988
|
57
|
158,283
|
(10,696,216
|
)
|
(819,296
|
)
|
(81,437
|
)
|
||||||||||||||||||||||
Issuance
of Common Stock
|
-
|
-
|
-
|
-
|
250,000
|
25,000
|
225,000
|
(250,000
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Conversion
of Debt
|
-
|
-
|
-
|
-
|
2,000,000
|
200,000
|
300,000
|
-
|
-
|
-
|
-
|
500,000
|
|||||||||||||||||||||||||
Conversion
of Debt
|
-
|
-
|
-
|
-
|
300,000
|
30,000
|
45,000
|
-
|
-
|
-
|
-
|
75,000
|
|||||||||||||||||||||||||
Conversion
of Debt
|
-
|
-
|
-
|
-
|
144,000
|
14,400
|
21,600
|
-
|
-
|
-
|
-
|
36,000
|
|||||||||||||||||||||||||
Net
(Loss)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(597,593
|
)
|
-
|
(597,593
|
)
|
|||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||
Balance,
December 31, 2007
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
7,718,465
|
$
|
771,844
|
$
|
12,099,150
|
$
|
(250,000
|
)
|
$
|
-
|
$
|
(13,659,916
|
)
|
$
|
(819,296
|
)
|
$
|
(1,858,218
|
)
|
See
accompanying independent auditors report and notes to consolidated
financial statements.
|
ACCELERATED
BUILDING CONCEPTS CORPORATION
|
|
f/k/a
K2 DIGITAL, INC.
|
|
and
SUBSIDIARIES
|
|
Consolidated
Statements of Cash Flows
|
|
For
the Years Ended December 31,
|
2007
|
2006
|
||||||
Cash
Flows From Operating Activities:
|
|||||||
Net
Loss
|
$
|
(597,593
|
)
|
$
|
(114,052
|
)
|
|
Adjustments
to Reconcile Net Loss to Net
|
|||||||
Cash
Used By Operating Activities:
|
|||||||
Depreciation
and Amortization
|
124,821
|
114,430
|
|||||
Loss
on Sale of Property, Plant and Equipment
|
4,340
|
-
|
|||||
Changes
in Assets and Liabilities:
|
|||||||
Accounts
Receivable, Net
|
345,492
|
(25,149
|
)
|
||||
Prepaid
Expenses and Other Current Assets
|
(24,300
|
)
|
(20,473
|
)
|
|||
Accounts
Payable, Accrued Expenses and Taxes Payable
|
112,769
|
(1,176,640
|
)
|
||||
Costs
and Estimated Billings in Excess of Billings on
|
|||||||
Uncompleted
Contracts
|
(612,761
|
)
|
650,771
|
||||
Deferred
Revenue
|
98,206
|
-
|
|||||
Net
Cash Used In Operating Activities
|
(594,026
|
)
|
(571,113
|
)
|
|||
Cash
Flows From Investing Activities:
|
|||||||
Proceeds
from Sale of Property, Plant and Equipment
|
84,977
|
-
|
|||||
Acquisition
of Property, Plant and Equipment
|
(94,442
|
)
|
(592,385
|
)
|
|||
Net
Cash Used In Investing Activities
|
(9,465
|
)
|
(592,385
|
)
|
|||
Cash
Flows From Financing Activities:
|
|||||||
Issuance
of Common Stock
|
-
|
200,140
|
|||||
Stock
Subscriptions Receivable
|
-
|
(57
|
)
|
||||
Issuance
of Preferred Stock - Series A
|
-
|
10,000
|
|||||
Issuance
of Preferred Stock - Series B
|
-
|
191,794
|
|||||
Issuance
of Preferred Stock - Series C
|
-
|
50,000
|
|||||
Issuance
of Preferred Stock - Series D
|
-
|
282,000
|
|||||
Recapitalization
due to Merger
|
(81,437
|
)
|
-
|
||||
Issuance
of Notes Payable
|
227,693
|
||||||
Repayment
of Notes Payable and Line of Credit
|
(46,023
|
)
|
807,496
|
||||
Net
Cash Provided By Financing Activities
|
100,233
|
1,541,373
|
|||||
Net
Increase (Decrease) in Cash
|
(458,258
|
)
|
377,875
|
||||
Cash
at Beginning of Year
|
458,652
|
80,777
|
|||||
Cash
at End of Period
|
$
|
394
|
$
|
458,652
|
See
accompanying notes to consolidated financial statements.
|
ACCELERATED
BUILDING CONCEPTS CORPORATION
|
|
f/k/a
K2 DIGITAL, INC.
|
|
and
SUBSIDIARIES
|
|
Consolidated
Statements of Cash Flows
|
|
For
the Years Ended December 31, 2007 and 2006
|
|
(Continued)
|
Supplemental
Disclosure of Cash Flow Information:
|
|||||||
Cash
paid during the period for interest
|
$
|
172,371
|
$
|
243,145
|
|||
Taxes
Paid
|
$
|
-
|
$
|
-
|
On
September 13, 2007 the Company converted $611,000 of debt assumed
in the
acquisition of New Century
Structures, Inc. for 2,444,000 shares of its common stock at
$0.25 per
share.
|
|
|
|
On October 29, 2007 the Company entered into a stock subscription agreement to sell 250,000 shares of its common stock at $1.00 per share. As of December 31, 2007, the balance remains unpaid. | |
On
August 9, 2007, the Company's outstanding shares of Series A,
B, C and D
preferred stock were converted into common stock.
|
|
See
accompanying notes to consolidated financial statements.
|
September
30, 2007
|
||||||||||
As
|
As
|
|||||||||
Reported
|
Adjustments
|
Restated
|
||||||||
Liabilities
|
||||||||||
Current
Liabilities
|
||||||||||
Notes
Payable, Current Portion
|
$
|
510,181
|
$
|
-
|
$
|
510,181
|
||||
Accounts
Payable and Accrued Expenses
|
727,688
|
-
|
727,688
|
|||||||
Accrued
Payroll and Taxes
|
224,113
|
-
|
224,113
|
|||||||
Deferred
Revenue
|
98,206
|
-
|
98,206
|
|||||||
Total
Current Liabilities
|
1,560,188
|
-
|
1,560,188
|
|||||||
Noncurrent
Liabilities
|
||||||||||
Notes
Payable, Noncurrent Portion
|
752,384
|
-
|
752,384
|
|||||||
Total
Noncurrent Liabilities
|
752,384
|
-
|
752,384
|
|||||||
Total
Liabilities
|
2,312,572
|
-
|
2,312,572
|
|||||||
Stockholders'
Equity
|
||||||||||
Common
Stock
|
71,351
|
-
|
71,351
|
|||||||
Distributions
|
(158,283
|
)
|
158,283
|
-
|
||||||
Additional
Paid In Capital
|
9,840,614
|
(208,229
|
)
|
9,632,385
|
||||||
Subscription
Receivable
|
-
|
-
|
-
|
|||||||
Treasury
Stock
|
(819,296
|
)
|
-
|
(819,296
|
)
|
|||||
Accumulated
Other Comprehensive Income
|
25,722
|
(25,722
|
)
|
-
|
||||||
Accumulated
Deficit
|
(10,474,629
|
)
|
75,668
|
(10,398,961
|
)
|
|||||
Total
Stockholders' Equity
|
(1,514,521
|
)
|
-
|
(1,514,521
|
)
|
|||||
Total
Liabilities and Stockholders' Equity
|
$
|
798,051
|
$
|
-
|
$
|
798,051
|
Three
Months Ended September 30, 2007
|
Three
Months Ended September 30, 2006
|
||||||||||||||||||
As
|
As
|
As
|
As
|
||||||||||||||||
Reported
|
Adjustments
|
Restated
|
Reported
|
Adjustments
|
Restated
|
||||||||||||||
Sales
|
$
|
110,972
|
$
|
-
|
$
|
110,972
|
$
|
10,281
|
$
|
1,986,736
|
$
|
1,997,017
|
|||||||
Cost
of Sales
|
265,699
|
-
|
265,699
|
-
|
1,877,392
|
1,877,392
|
|||||||||||||
Gross
Profit
|
(154,727
|
)
|
-
|
(154,727
|
)
|
10,281
|
109,344
|
119,625
|
|||||||||||
Operating
Expenses
|
142,504
|
-
|
142,504
|
15,101
|
208,937
|
224,038
|
|||||||||||||
Income
from Operations
|
(297,231
|
)
|
-
|
(297,231
|
)
|
(4,820
|
)
|
(99,593
|
)
|
(104,413
|
)
|
||||||||
Interest
Income / (Expense), Net
|
(55,164
|
)
|
-
|
(55,164
|
)
|
-
|
(33,436
|
)
|
(33,436
|
)
|
|||||||||
Net
Loss
|
$
|
(352,395
|
)
|
$
|
-
|
$
|
(352,395
|
)
|
$
|
(4,820
|
)
|
$
|
(133,029
|
)
|
$
|
(137,849
|
)
|
||
Comprehensive
Loss:
|
|||||||||||||||||||
Net
Loss
|
$
|
(352,395
|
)
|
$
|
-
|
$
|
(352,395
|
)
|
$
|
(4,820
|
)
|
$
|
(133,029
|
)
|
$
|
(137,849
|
)
|
||
Other
Comprehensive Loss,
|
|||||||||||||||||||
unrealized
gain (loss) on available-
|
|||||||||||||||||||
for-sale
security
|
-
|
-
|
-
|
(480
|
)
|
480
|
-
|
||||||||||||
Realized
holding gain (loss) arising
|
|||||||||||||||||||
during
the period
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Comprehensive
Loss
|
$
|
(352,395
|
)
|
$
|
-
|
$
|
(352,395
|
)
|
$
|
(5,300
|
)
|
$
|
(132,549
|
)
|
$
|
(137,849
|
)
|
||
Net
Income (Loss) Per Share:
|
|||||||||||||||||||
Basic
and diluted based upon
|
|||||||||||||||||||
5,502,639
weighted average
|
|||||||||||||||||||
shares
outstanding
|
$
|
(0.05
|
)
|
$
|
(0.01
|
)
|
$
|
(0.06
|
)
|
||||||||||
Basic
and diluted based upon
|
|||||||||||||||||||
5,024,465
weighted average
|
|||||||||||||||||||
shares
outstanding
|
$
|
(0.001
|
)
|
$
|
(0.03
|
)
|
$
|
(0.03
|
)
|
||||||||||
Note:
The weighted average shares outstanding has been
corrected.
|
Nine
Months Ended September 30, 2007
|
Nine
Months Ended September 30, 2006
|
||||||||||||||||||
As
|
As
|
As
|
As
|
||||||||||||||||
Reported
|
Adjustments
|
Restated
|
Reported
|
Adjustments
|
Restated
|
||||||||||||||
Sales
|
$
|
1,789,643
|
$
|
(28,662
|
)
|
$
|
1,760,981
|
$
|
42,198
|
$
|
5,485,113
|
$
|
5,527,311
|
||||||
Cost
of Sales
|
1,314,469
|
-
|
1,314,469
|
-
|
4,327,693
|
4,327,693
|
|||||||||||||
Gross
Profit
|
475,174
|
(28,662
|
)
|
446,512
|
42,198
|
1,157,420
|
1,199,618
|
||||||||||||
Operating
Expenses
|
693,801
|
(104,330
|
)
|
589,471
|
64,106
|
749,185
|
813,291
|
||||||||||||
Income
from Operations
|
(218,627
|
)
|
75,668
|
(142,959
|
)
|
(21,908
|
)
|
408,235
|
386,327
|
||||||||||
Interest
Income / (Expense), Net
|
(127,125
|
)
|
-
|
(127,125
|
)
|
-
|
(186,806
|
)
|
(186,806
|
)
|
|||||||||
Net
Loss
|
$
|
(345,752
|
)
|
$
|
75,668
|
$
|
(270,084
|
)
|
$
|
(21,908
|
)
|
$
|
221,429
|
$
|
199,521
|
||||
Comprehensive
Loss:
|
|||||||||||||||||||
Net
Loss
|
$
|
(345,752
|
)
|
$
|
75,668
|
$
|
(270,084
|
)
|
$
|
(21,908
|
)
|
$
|
221,429
|
$
|
199,521
|
||||
Other
Comprehensive Loss,
|
|||||||||||||||||||
unrealized
gain (loss) on available-
|
|||||||||||||||||||
for-sale
security
|
-
|
-
|
-
|
2,400
|
(2,400
|
)
|
-
|
||||||||||||
Realized
holding gain (loss) arising
|
|||||||||||||||||||
during
the period
|
(10,078
|
)
|
10,078
|
-
|
-
|
-
|
-
|
||||||||||||
Comprehensive
Loss
|
$
|
(355,830
|
)
|
$
|
85,746
|
$
|
(270,084
|
)
|
$
|
(19,508
|
)
|
$
|
219,029
|
$
|
199,521
|
||||
Net
Income (Loss) Per Share:
|
|||||||||||||||||||
Basic
and diluted based upon
|
|||||||||||||||||||
5,185,608
weighted average
|
|||||||||||||||||||
shares
outstanding
|
$
|
(0.05
|
)
|
$
|
-
|
$
|
(0.05
|
)
|
|||||||||||
Basic
and diluted based upon
|
|||||||||||||||||||
5,804,849
weighted average
|
|||||||||||||||||||
shares
outstanding
|
$
|
(0.004
|
)
|
$
|
0.034
|
$
|
0.03
|
||||||||||||
Note:
The weighted average shares outstanding has been
corrected.
|
Nine
Months Ended September 30, 2007
|
||||||||||
As
|
As
|
|||||||||
Reported
|
Adjustments
|
Restated
|
||||||||
Cash
Flows From Operating Activities:
|
||||||||||
Net
Loss
|
$
|
(345,752
|
)
|
$
|
75,668
|
$
|
(270,084
|
)
|
||
Adjustments
to Reconcile Net Income to Net
|
||||||||||
Cash
Used By Operating Activities:
|
||||||||||
Depreciation
and Amortization
|
93,143
|
-
|
93,143
|
|||||||
Stock
Based Compensation
|
5,540
|
(5,540
|
)
|
-
|
||||||
Realized
Gain on Sale of Available-for-Sale Security
|
(22,131
|
)
|
22,131
|
-
|
||||||
Conversion
of Convertible Preferred Securities
|
(165,000
|
)
|
165,000
|
-
|
||||||
Assumed
Notes Payable in Acquisition, Net
|
790,686
|
(790,686
|
)
|
-
|
||||||
Distributions
Acquired in Acquisition
|
(158,283
|
)
|
158,283
|
-
|
||||||
Accumulated
Deficit Acquired in Acquisition
|
(2,366,108
|
)
|
2,366,108
|
-
|
||||||
Decrease
(Increase) In:
|
||||||||||
Accounts
Receivable, Net
|
(119,571
|
)
|
385,098
|
265,527
|
||||||
Note
Receivable, Net
|
4,500
|
(4,500
|
)
|
-
|
||||||
Investment
in Available-for-Sale Security
|
18,100
|
(18,100
|
)
|
-
|
||||||
Prepaid
Expenses and Other Current Assets
|
(49,904
|
)
|
20,473
|
(29,431
|
)
|
|||||
Increase
(Decrease) In:
|
||||||||||
Accounts
Payable, Accrued Expenses and Taxes Payable
|
879,292
|
(825,267
|
)
|
54,025
|
||||||
Billings
in Excess of Costs on Uncompleted Contracts
|
-
|
(650,771
|
)
|
(650,771
|
)
|
|||||
Deferred
Revenue
|
98,206
|
-
|
98,206
|
|||||||
Net
Cash Used In Operating Activities
|
(1,337,282
|
)
|
897,897
|
(439,385
|
)
|
|||||
Cash
Flows From Investing Activities:
|
||||||||||
Acquisition
of Property, Plant and Equipment
|
(717,945
|
)
|
620,046
|
(97,899
|
)
|
|||||
Net
Cash Used In Investing Activities
|
(717,945
|
)
|
620,046
|
(97,899
|
)
|
|||||
Cash
Flows From Financing Activities:
|
||||||||||
Gross
Proceeds from Sale of Available-for-Sale Security
|
20,000
|
(20,000
|
)
|
-
|
||||||
Recapitalization
due to Merger
|
-
|
(81,437
|
)
|
(81,437
|
)
|
|||||
Issuance
of Notes Payable
|
499,337
|
(308,036
|
)
|
191,301
|
||||||
Repayment
of Notes Payable
|
(27,458
|
)
|
-
|
(27,458
|
)
|
|||||
Additional
Paid-in Capital
|
1,493,874
|
(1,493,874
|
)
|
-
|
||||||
Net
Cash Provided By Financing Activities
|
1,985,753
|
(1,903,347
|
)
|
82,406
|
||||||
Net
Increase (Decrease) in Cash
|
(69,474
|
)
|
(385,404
|
)
|
(454,878
|
)
|
||||
Cash
at Beginning of Year
|
73,248
|
385,404
|
458,652
|
|||||||
Cash
at End of Period
|
$
|
3,774
|
$
|
-
|
$
|
3,774
|
||||
Supplemental
Disclosure of Cash Flow Information:
|
||||||||||
Cash
paid during the period for interest
|
$
|
129,098
|
$
|
-
|
$
|
129,098
|
||||
Taxes
Paid
|
$
|
-
|
$
|
-
|
$
|
-
|
Useful
|
December
31,
|
December
31,
|
||||||||
Life
|
|
2007
|
|
2006
|
||||||
Facility
|
20
|
$
|
182,078
|
$
|
72,688
|
|||||
Capital
Improvements
|
5
|
55,610
|
55,610
|
|||||||
Machinery
& equipment
|
5
|
347,971
|
228,681
|
|||||||
Heavy
equipment
|
7
|
107,156
|
-
|
|||||||
Vehicles
and trailers
|
4
|
7,000
|
10,000
|
|||||||
Computer
equipment
|
3
|
449
|
450
|
|||||||
Furniture
and fixtures
|
5
|
25,773
|
25,773
|
|||||||
726,038
|
393,202
|
|||||||||
Less:
accumulated depreciation
|
(225,688
|
)
|
-
|
|||||||
Net
property and equipment
|
$
|
500,350
|
$
|
393,202
|
||||||
Due
|
December
31,
|
December
31,
|
||||||||
Date
|
2007
|
2006
|
||||||||
Avante
Holding Group, Inc.
|
July
2008
|
$
|
296,469
|
$
|
551,129
|
|||||
Regions
Bank
|
June
2012
|
458,851
|
499,337
|
|||||||
Caterpillar
Financial Services Corporation
|
July
2008
|
5,638
|
18,979
|
|||||||
Caterpillar
Financial Services Corporation
|
July
2009
|
31,502
|
50,692
|
|||||||
Bank
of America
|
February
2013
|
100,000
|
100,000
|
|||||||
Bridge
Note (1)
|
August
2008
|
128,000
|
-
|
|||||||
Wells
Fargo
|
September
2011
|
24,493
|
99,112
|
|||||||
Weaver
Precast of Florida, LLC
|
December
2009
|
225,906
|
340,691
|
|||||||
1,270,859
|
1,659,940
|
|||||||||
Less:
Current portion
|
647,941
|
1,217,675
|
||||||||
Total
long-term debt
|
$
|
622,918
|
$
|
442,265
|
||||||
(1)
Multiple individuals.
|
2008
|
$
|
48,000
|
||
2009
|
48,000
|
|||
2010
|
48,000
|
|||
2011
|
48,000
|
|||
2012
|
20,000
|
|||
Total
Lease Obligations
|
$
|
212,000
|
Year
Ended
|
|||||||
December
31,
|
|||||||
2007
|
2006
|
||||||
OPERATING
REVENUE
|
|||||||
Manufacturing
|
$
|
1,964,509
|
$
|
6,678,617
|
|||
Leasing
|
-
|
-
|
|||||
Consolidated
Totals
|
$
|
1,964,509
|
$
|
6,678,617
|
|||
INCOME
(LOSS) FROM OPERATIONS (1)
|
|||||||
Manufacturing
|
$
|
(344,508
|
)
|
$
|
210,948
|
||
Leasing
|
-
|
-
|
|||||
Corporate
|
(80,714
|
)
|
-
|
||||
Consolidated
Totals
|
$
|
(425,222
|
)
|
$
|
210,948
|
||
IDENTIFIABLE
ASSETS
|
|||||||
Manufacturing
|
$
|
585,123
|
$
|
1,484,269
|
|||
Leasing
|
-
|
-
|
|||||
Corporate
|
-
|
-
|
|||||
Consolidated
Totals
|
$
|
585,123
|
$
|
1,484,269
|
|||
DEPRECIATION
AND AMORTIZATION
|
|||||||
Manufacturing
|
$
|
124,821
|
$
|
114,430
|
|||
Leasing
|
-
|
-
|
|||||
Corporate
|
-
|
-
|
|||||
Consolidated
Totals
|
$
|
124,821
|
$
|
114,430
|
|||
(1)
Does not reflect the Extraordinary Loss of $325,000.
|
Year
Ended
|
|||||||
December
31,
|
|||||||
2007
|
2006
|
||||||
Numerator
|
|||||||
Net
Loss
|
$
|
(597,593
|
)
|
$
|
(114,052
|
)
|
|
Denominator
|
|||||||
Basic
and diluted
|
|||||||
Weighted
average common shares outstanding
|
5,804,849
|
5,024,465
|
|||||
Denominator
in basic calculation
|
5,804,849
|
5,024,465
|
|||||
Basic
and diluted net income (loss) per share
|
$
|
(0.10
|
)
|
$
|
(0.02
|
)
|
|
For
the Year Ended
|
|||||||
December
31,
|
|||||||
2007
|
2006
|
||||||
Tax
expense (benefit) at the statutory rate of 35%
|
$
|
(209,158
|
)
|
$
|
(39,918
|
)
|
|
State
income taxes, net of federal income tax
|
-
|
-
|
|||||
Change
in valuation allowance
|
209,158
|
39,918
|
|||||
Total
|
$
|
-
|
$
|
-
|
December
31,
|
||||
2007
|
||||
Deferred
tax assets:
|
||||
Net
operating loss carryforward - 2006 and prior (1)
(2)
|
$
|
8,114,052
|
||
Net
operating loss carryforward - 2007
|
597,593
|
|||
Total
net operating loss carryforward
|
$
|
8,711,645
|
||
Total
deferred tax assets
|
$
|
8,711,645
|
||
Less
valuation allowance
|
(8,711,645
|
)
|
||
Total
deferred tax assets
|
$
|
-
|
(1)
|
As
of December 31, 2006, the Company had net operating loss carryforwards
of
approximately $8.0 million for federal and state income tax purposes,
which are available to reduce future taxable income and will
expire
through 2025 if not utilized. In addition, a 2001 impairment
charge
related to the investment in available-for-sale securities of
approximately $130,000, net of approximately $1,277,000 deducted
(for tax
purposes) during the subsequent years for subsequent sales, is
not
deductible until the securities are sold. The future tax benefits
associated with the net operating loss carryforwards and impairment
charge
were the primary components of an estimated $3.3 million deferred
tax
asset at December 31, 2006. A valuation allowance has been established
for
the entire amount of the deferred tax asset since its realization
is
considered unlikely. Further, a change in the ownership of a
majority of
the fair market value of the Company's common stock (such as
the change in
ownership that would occur in the contemplated transaction discussed
in
Note 1) could significantly delay or limit the utilization of
net
operating loss carryforwards.
|
(2)
|
For
2006 and prior, $8.0 million relates to K2 Digital, Inc. prior
to the
merger whereas $114,052 relates to NCSI for
2006.
|
NAME
|
AGE
|
POSITION
|
HELD
POSITION SINCE
|
|||
Joseph
J. Sorci (2)
|
51
|
Chairman,
Chief Executive Officer
|
10-Aug-07
|
|||
Bruce
Harmon (1)
|
49
|
Director,
Audit Chairman, Interim Chief Financial Officer
|
10-Aug-07
|
|||
Brian
Gromlich (1)
|
49
|
Director
|
10-Aug-07
|
|||
Thomas
Amon (2)
|
60
|
Secretary,
Director
|
10-Aug-07
|
|||
Ralph
A. Henry (1)
|
56
|
Director
|
10-Aug-07
|
|||
Gina
L. Bennett (2)
|
39
|
Director
|
10-Aug-07
|
|||
(1)
Directors term expires 2008.
|
||||||
(2)
Directors term expires 2009.
|
Nonqualified
|
||||||||||||||||||||||||||||
Name
and
|
Non-Equity
|
Deferred
|
||||||||||||||||||||||||||
Principal
|
Stock
|
Option
|
Incentive
Plan
|
Compensation
|
All
Other
|
|||||||||||||||||||||||
Position
|
Year
|
|
Salary
(1)
|
|
Bonus
|
|
Awards
|
|
Awards
|
|
Compensation
|
|
Earnings
|
|
Compensation
|
|
Total
|
|||||||||||
Joseph
J. Sorci (2)
(6)
|
2007
|
$
|
-
|
$
|
-
|
$
|
36,000
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
36,000
|
|||||||||||
Chairman
and CEO
|
2006
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||||||
|
||||||||||||||||||||||||||||
Bruce
Harmon (3)
|
2007
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||||||
Director
and Interim CFO
|
2006
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||||||
|
||||||||||||||||||||||||||||
Ralph
A. "Hank" Henry (4)
|
2007
|
$
|
2,885
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2,885
|
|||||||||||
Director
and COO
|
2006
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||||||
|
||||||||||||||||||||||||||||
Gina
L. Bennett (5)
|
2007
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||||||
Director
and COO
|
2006
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
(1)
The amounts reflected in the above table do not include any amounts
for
perquisites and other personal benefits extended to the named executive
officer.
|
|
(2)
Compensation paid is paid to Florida Architects, Inc., as to which
Mr.
Sorci is the CEO and majority shareholder.
|
|
(3)
Mr. Harmon receives no direct compensation for the services provided.
Mr.
Harmon is compensated through the Administrative Consulting
Agreement.
|
|
(4)
Mr. Henry resigned his position as COO of NCSI in January
2006.
|
|
(5)
Ms. Bennett receives no direct compensation for the services provided.
Mr.
Bennett is compensated through the Administrative Consulting
Agreement.
|
|
Ms.
Bennett was the COO of NCSI from January 2006 through June
2007.
|
|
(6)
Stock Awards for Mr. Sorci was the conversion of debt to common
stock.
|
|
Amount
and Nature of
|
|
|||||
Name
and Address of Beneficial Owner (1) (2)
|
Beneficial
Ownership
|
Percent
|
|||||
Joseph
J. Sorci, Chairman and CEO
|
1,267,831
|
16.5
|
%
|
||||
Bruce
Harmon, Director and Interim CFO
|
129,575
|
1.7
|
%
|
||||
Brian
Gromlich
|
-
|
0.0
|
%
|
||||
Thomas
G. Amon, Director and Secretary
|
312,500
|
4.1
|
%
|
||||
Ralph
A. "Hank" Henry, Director
|
107,979
|
1.4
|
%
|
||||
Gina
L. Bennett, Director
|
129,575
|
1.7
|
%
|
||||
Avante
Holding Group, Inc. (3)
|
2,595,254
|
33.8
|
%
|
||||
All
officers and directors as a group
|
1,947,460
|
25.4
|
%
|
1
|
Unless
otherwise noted, the address of each person or entity listed
is c/o
Accelerated Building Concepts Corporation,
2910 Bush Drive, Melbourne, FL 32935.
|
|||||
2
|
Beneficial
ownership is determined in accordance with the rules of the SEC
and
generally includes voting or voting
or investment power with respect to securities. Shares of common
stock
subject to options, warrants or
convertible securities that are currently exercisable or exercisable
within 60 days of December 31, 2007,
|
|||||
are
deemed outstanding for computing the percentage of the person
holding such
options, warrants or convertible
securities but are not deemed outstanding for computing the percentage
of
any other person.
|
||||||
Except
as indicated by footnote and subject to community property laws
where
applicable, the persons named in
the table have sole voting and investment power with respect
to all shares
of common stock shown as beneficially
owned by them.
|
||||||
3
|
Includes
711,104 shares owned by GAMI, LLC which is also owned and controlled
by
Michael W. Hawkins.
|
|||||
Balance
does not include 333,335 and 333,333 shares, respectively, issued
to the
daughter and brother of Michael
W. Hawkins upon conversion of
debt.
|
/s/ Joseph J. Sorci |
April
14, 2008
|
||
Joseph
Sorci, Chief Executive Officer
|
Date
|
/s/
Bruce Harmon
|
April
14, 2008
|
||
Bruce
Harmon, Interim Chief Financial Officer
|
Date
|
/s/
Joseph J. Sorci
|
April
14, 2008
|
||
Joseph
Sorci, Chairman of the Board
|
Date
|
/s/
Bruce Harmon
|
April
14, 2008
|
||
Bruce
Harmon, Audit Committee Chairman, Director
|
Date
|
/s/
Thomas G. Amon
|
April
14, 2008
|
||
Thomas
G. Amon, Director
|
Date
|
/s/
Brian Gromlich
|
April
14, 2008
|
||
Brian
Gromlich, Director
|
Date
|
/s/
Ralph A. “Hank” Henry
|
April
14, 2008
|
||
Ralph
A. “Hank” Henry, Director
|
Date
|
/s/
Gina L. Bennett
|
April
14, 2008
|
||
Gina
L. Bennett, Director
|
Date
|
(1) |
Any
annual report to security holders covering the registrant’s last fiscal
year; and
|
(2) |
Every
proxy statement, form of proxy or other proxy soliciting material
sent to
more than ten of the registrant’s security holders with respect to any
annual or other meeting of security
holders.
|
EXHIBIT
|
||
NUMBER
|
DESCRIPTION
OF DOCUMENT
|
|
3.1
|
Certificate
of Incorporation of the Company*
|
|
3.1(a)
|
Amendment
to Certificate of Incorporation of the Company*
|
|
3.1(b)
|
Amendment
to Certificate of Incorporation of the Company (incorporated by
reference
from the Registrant's Form 10KSB for its fiscal year ended
12/31/00).*
|
|
3.1(c)
|
Amendment
of Certificate of Incorporation of the Company (incorporated by
reference
from the Registrant’s Form 14A filed with the Securities & Exchange
Commission on July 24, 2007).*
|
|
3.2
|
By-laws
of the Company*
|
|
3.2(b)
|
Amendment
to By-laws of the Company*
|
|
4.1
|
Common
Stock Certificate*
|
|
4.2
|
Warrant
Certificate*
|
|
4.4
|
Warrant
Agreement by and between Continental Stock Transfer & Trust Company
and the Company*
|
|
4.5
|
Voting
Agreement among Messrs. Centner, de Ganon, Cleek and
Szollose*
|
|
10.1
|
1996
Stock Incentive Plan and Rules Relating thereto*
|
|
10.2
|
1997
Stock Option Plan (incorporated by reference from the Registrant's
Form
10-KSB for its fiscal year ended 12/31/96).*
|
|
10.3
|
Amendment
to 1997 Stock Option Plan (incorporated by reference from the Registrant's
Form 10-KSB for its fiscal year ended 12/31/00).*
|
|
10.4
|
Consulting
Agreement with Harvey Berlent*
|
|
10.5
|
Employment
Agreement with Matthew G. de Ganon*
|
|
10.6
|
Extension
of Employment Agreement with Matthew G. de Ganon dated November
2, 1998
(incorporated by reference from the Registrant's Form 10-KSB for
its
fiscal year ended 12/31/98).*
|
|
10.7
|
Amendment
to Employment Agreement of Matthew G. de Ganon dated April 14,
2000
(incorporated by reference from the Registrant's Form 10-QSB for
the
quarterly period ended 03/31/00).*
|
|
10.8
|
Employment
Agreement with Douglas E. Cleek*
|
|
10.9
|
Extension
of Employment Agreement with Douglas E. Cleek dated January 15,
1999
(incorporated by reference from the Registrant's Form 10-KSB for
its
fiscal year ended 12/31/98).*
|
|
10.10
|
Employment
Agreement with Gary W. Brown dated April 14, 2000 (incorporated
by
reference from the Registrant's Form 10-QSB for the quarterly period
ended
03/31/00).*
|
|
10.11
|
Restricted
Stock Agreement of Gary W. Brown (incorporated by reference from
the
Registrant's Form 10-QSB for the quarterly period ended
03/31/00).*
|
|
10.12
|
Employment
Agreement with Lynn Fantom dated February 13, 2001 (incorporated
by
reference from the Registrant's Form 10-KSB for its fiscal year
ended
12/31/00).*
|
|
10.13
|
Agreement
of Lease dated as of April 18, 1997, between 30 Broad Associates,
L.P., as
landlord, and the Company, as tenant, relating to 30 Broad Street,
New
York, New York (incorporated by reference from the Registrant's
Form
10-KSB for its fiscal year ended
12/31/00).*
|
10.14
|
Amendment
to Lease dated as of April 1, 1998, between 30 Broad Associates,
L.P., as
landlord, and the Company, as tenant, relating to 30 Broad Street,
New
York, New York (incorporated by reference from the Registrant's
Form
10-KSB for its fiscal year ended
12/31/00).*
|
||
10.15
|
Second
Amendment to Lease dated as of July 10, 2000, between ASC-CSFB
30 Broad,
LLC, as landlord, and the Company, as tenant, relating to 30 Broad
Street,
New York, New York (incorporated by reference from the Registrant's
Form
10-QSB for the quarterly period ended 06/30/00).*
|
||
10.16
|
Common
Stock Purchase Agreement dated as of December 11, 2000 between
the Company
and Fusion Capital Fund II, LLC (incorporated by reference from
the
Registrant's Current Report on Form 8-K filed
12/11/00).*
|
||
10.17
|
Form
of Registration Rights Agreement between the Company and Fusion
Capital
Fund II, LLC (incorporated by reference from the Registrant's Current
Report on Form 8-K filed 12/11/00).*
|
||
10.18
|
Master
Transaction Agreement, dated as of August 20, 2001, between the
Company
and Integrated Information Systems, Inc. (incorporated by reference
from
the Registrant's Current Report on Form 8-K filed
8/30/01).*
|
||
10.19
|
Agreement
and Plan of Merger, dated as of January 15, 2002, by and among
First Step
Distribution Network, Inc. and its shareholders, First Step Acquisition
Corp. and the Company (incorporated by reference from the Registrant's
Current Report on Form 8-K filed 01/17/02).*
|
||
10.20
|
Side
Letter dated April 8, 2002, by and between the Company and First
Step
Distribution
Network,
Inc. (incorporated by reference from the Registrant's Annual Report
on
Form 10-KSB filed 04/16/02).*
|
||
16.1
|
Letter
from Arthur Andersen LLP regarding change in certifying accountant
(incorporated by reference from the Registrant's Current Report
on Form
8-K filed 04/16/02).*
|
||
21.1
|
Subsidiary
List*
|
||
23.1 |
Consent
of Liebman Goldberg & Drogin, LLP
|
||
31.1**
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
|
||
31.2**
|
Certification
of Principal Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
||
Certification
of Chief Executive Officer pursuant to Title 18, United States
Code,
Section 1350 Adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of
2002.
|
|||
32.2**
|
Certification
of Principal Officer pursuant to Title 18, United States Code,
Section
1350 Adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of
2002.
|