SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN
PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF
1934
For the month of December 2003
ON TRACK INNOVATIONS
LTD.
(Name of Registrant)
Z.H.R. Industrial Zone, P.O. Box 32, Rosh-Pina, Israel, 12000
(Address of
Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes o No x
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
ON TRACK INNOVATIONS LTD.
6-K ITEM
On November 28, 2003, On Track Innovations Ltd. filed a report on Form 6-K disclosing, among other information, its unaudited financial results for the nine months ended September 30, 2003. The following unaudited Statements of Changes in Shareholders’ Equity and Consolidated Statements of Cash Flows disclose additional information with respect to such nine-month period and should be read together with the information disclosed in the November 28, 2003 filing.
2
ON TRACK INNOVATIONS LTD.
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
US Dollars in thousands
| Number of shares |
Share capital |
Additional paid-in capital |
Deferred stock compensation |
Accumulated other comprehensive income |
Accumulated deficit |
Total shareholders' equity | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance as of January 1, 2002 | |||||||||||||||||||||||
| (audited) | 1,589,311 | $ | 47 | $ | 44,823 | $ | (541 | ) | $ | 37 | $ | (29,996 | ) | $ | 14,370 | ||||||||
| Deferred stock compensation | - | - | 2,182 | (2,182 | ) | - | - | - | |||||||||||||||
| Exercise of options | 227,845 | 5 | - | - | - | - | 5 | ||||||||||||||||
| Amortization of deferred stock | |||||||||||||||||||||||
| Compensation | - | - | - | 1,608 | - | - | 1,608 | ||||||||||||||||
| Stock options granted to consultants | - | - | 1,058 | - | - | - | 1,058 | ||||||||||||||||
| Beneficial conversion feature on | |||||||||||||||||||||||
| convertible notes | - | - | 42 | - | - | - | 42 | ||||||||||||||||
| Warrants issued in connection with the | |||||||||||||||||||||||
| issuance of convertible notes | - | - | 42 | - | - | - | 42 | ||||||||||||||||
| Other comprehensive income - foreign | |||||||||||||||||||||||
| currency translation adjustments | - | - | - | - | 164 | - | 164 | ||||||||||||||||
| Net loss | - | - | - | - | - | (6,248 | ) | (6,248 | ) | ||||||||||||||
| Balance as of December 31, 2002 | |||||||||||||||||||||||
| (audited) | 1,817,156 | 52 | 48,147 | (1,115 | ) | 201 | (36,244 | ) | 11,041 | ||||||||||||||
| Deferred stock compensation | - | - | 1,798 | (1,798 | ) | - | - | - | |||||||||||||||
| Amortization of deferred stock | |||||||||||||||||||||||
| Compensation | - | - | - | 1,399 | - | - | 1,399 | ||||||||||||||||
| Deferred compensation paid in cash | - | - | (766 | ) | 766 | - | - | - | |||||||||||||||
| Stock options granted to consultants | - | - | 820 | - | - | - | 820 | ||||||||||||||||
| Exercise of options | 677,252 | 15 | 136 | - | - | - | 151 | ||||||||||||||||
| Issuance of ordinary shares, net | 231,818 | 5 | 275 | - | - | - | 280 | ||||||||||||||||
| Warrants issued in connection with the | |||||||||||||||||||||||
| issuance of ordinary shares | - | - | 357 | - | - | - | 357 | ||||||||||||||||
| Beneficial conversion feature on | |||||||||||||||||||||||
| convertible notes | - | - | 183 | - | - | - | 183 | ||||||||||||||||
| Warrants issued in connection with | |||||||||||||||||||||||
| issuance of convertible notes | - | - | 183 | - | - | - | 183 | ||||||||||||||||
| Issuance expenses | - | - | (266 | ) | - | - | - | (266 | ) | ||||||||||||||
| Conversion of a loan to warrants | - | - | 465 | - | - | - | 465 | ||||||||||||||||
| Other comprehensive income - foreign | |||||||||||||||||||||||
| currency translation adjustments | - | - | - | - | 76 | - | 76 | ||||||||||||||||
| Net loss | - | - | - | - | - | (3,669 | ) | (3,669 | ) | ||||||||||||||
| Balance as of September 30, 2003 | |||||||||||||||||||||||
| (unaudited) | 2,726,226 | $ | 72 | $ | 51,332 | $ | (748 | ) | $ | 277 | $ | (39,913 | ) | $ | 11,020 | ||||||||
3
ON TRACK INNOVATIONS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
US Dollars in thousands
| For the nine months ended September 30 |
For the year ended December 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2003 |
2002 |
2002 | |||||||||
| (Unaudited) | |||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
| Net loss | $ | (3,669 | ) | $ | (4,206 | ) | $ | (6,248 | ) | ||
| Adjustments required to reconcile net loss to | |||||||||||
| net cash used in operating activities: | |||||||||||
| Amortization of deferred stock compensation | 1,399 | 1,639 | 1,608 | ||||||||
| Stock options granted to consultants | 820 | - | 1,058 | ||||||||
| Loss on sale of property and equipment | - | 40 | 40 | ||||||||
| Amortization of intangible assets | 141 | 114 | 161 | ||||||||
| Depreciation | 1,012 | 624 | 897 | ||||||||
| Amortization of beneficial conversion feature | |||||||||||
| on convertible notes | 32 | - | 3 | ||||||||
| Accrued severance pay, net | (16 | ) | (42 | ) | - | ||||||
| Minority interest | - | 19 | 19 | ||||||||
| Decrease in deferred revenues | (716 | ) | - | - | |||||||
| Changes in operating assets and liabilities: | |||||||||||
| Decrease in marketable bonds held for trading, net | 675 | 301 | 282 | ||||||||
| Decrease (increase) in trade receivables | 272 | 75 | 1,363 | ||||||||
| Decrease (increase) in other receivables and prepaid | |||||||||||
| Expenses | (243 | ) | 55 | 331 | |||||||
| Decrease in inventories | 58 | 716 | 1,104 | ||||||||
| Increase (decrease) in trade payables | 289 | (537 | ) | (1,263 | ) | ||||||
| Decrease in other current liabilities | (63 | ) | (492 | ) | (497 | ) | |||||
| Net cash used in operating activities | (9 | ) | (1,694 | ) | (1,142 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
| Proceeds from sale of property and equipment | - | 14 | 14 | ||||||||
| Purchase of property and equipment | (154 | ) | (748 | ) | (793 | ) | |||||
| Net cash used in investing activities | (154 | ) | (734 | ) | (779 | ) | |||||
4
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
| Decrease in short-term bank credit, net | (24 | ) | (27 | ) | (1,109 | ) | |||||
| Proceeds from long-term bank loans | 650 | 372 | 372 | ||||||||
| Repayment of long-term bank loans | (1,573 | ) | (1,219 | ) | (1,630 | ) | |||||
| Exercise of options | 138 | - | 5 | ||||||||
| Proceeds from issuance of convertible notes | 258 | - | 166 | ||||||||
| Proceeds from issuance of shares | 637 | - | - | ||||||||
| Proceeds from issuance of warrants in connection with | |||||||||||
| the issuance of convertible notes | 183 | - | 42 | ||||||||
| Proceeds allocated to beneficial conversion | |||||||||||
| feature on convertible notes | 183 | - | 42 | ||||||||
| Issuance expenses | (78 | ) | - | - | |||||||
| Net cash provided by (used in) financing activities | 374 | (874 | ) | (2,112 | ) | ||||||
| Effect of exchange rate changes on cash | 2 | - | 148 | ||||||||
| INCREASE (DECREASE) IN CASH AND CASH | |||||||||||
| EQUIVALENTS | 213 | (3,302 | ) | (3,885 | ) | ||||||
| CASH AND CASH EQUIVALENTS AT THE | |||||||||||
| BEGINNING OF THE PERIOD | 2,145 | 6,030 | 6,030 | ||||||||
| CASH AND CASH EQUIVALENTS AT THE END | |||||||||||
| OF THE PERIOD | $ | 2,358 | $ | 2,728 | $ | 2,145 | |||||
5
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, thereunto duly authorized.
| ON TRACK INNOVATIONS LTD. (Registrant) BY: /S/ Oded Bashan —————————————— Oded Bashan President, Chief Executive Officer and Chairman |
Date: December 11, 2003