SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K/A AMENDMENT NO. 2 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): February 4, 2005 VASCO DATA SECURITY INTERNATIONAL, INC. (Exact name of registrant as specified in charter) Delaware 000-24389 36-4169320 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 1901 South Meyers Road, Suite 210 Oakbrook Terrace, Illinois 60181 (Address of principal executive offices) (630) 932-8844 (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 (see General Instruction A.2. below): [ ] 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)) Explanatory Note: This Form 8-K/A is filed as an amendment to the Current Report on Form 8-K filed by VASCO Data Security International, Inc. on February 8, 2005 as amended on April 20, 2005. This amendment is being filed solely to add the Independent Auditor's Report which was inadvertently omitted from the previous filing.
SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS ITEM 9.01 - FINANCIAL STATEMENTS AND EXHIBITS (a) Audited financial statements of A.O.S.-Hagenuk B.V. at December 31, 2004, 2003 and 2002, and for each of the three years in the period ended December 31, 2004, are attached as Exhibit 99.3 hereto. (b) Unaudited consolidated pro forma balance sheet as of December 31, 2004 and the unaudited consolidated pro forma statement of operations for the year then ended, including notes thereto, are attached as Exhibit 99.4 hereto. (c) Exhibits Exhibit Number Description ------- ----------------------------------------------------------------------------------------------- 2.2 Consent of Berk Accountants en Belastingadviseurs 99.1 Press Release announcing the acquisition of A.O.S.-Hagenuk dated February 8, 2005 * 99.2 Registration Rights Agreement by and among A.O.S. Holding B.V., Filipan Beheer B.V., Mr. Mladen Filipan, and Pijnenburg Beheer N.V., and VASCO Data Security International, Inc., dated February 4, 2005. * 99.3 Financial Statements 99.4 Unaudited Pro Forma Financial Information * * Filed Previously. 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. Date: May 20, 2005 VASCO Data Security International, Inc. ------------------------------------------------ (Registrant) By: /s/ Clifford K. Bown ------------------------------------------------ Clifford K. Bown Chief Financial Officer
EXHIBIT INDEX Exhibit Number Description - ------- -------------------------------------------------------------------------------------------------------- 2.2 Consent of Berk Accountants en Belastingadviseurs 99.1 Press Release announcing the acquisition of A.O.S. - Hagenuk dated February 8, 2005 * 99.2 Registration Rights Agreement by and among A.O.S. Holding B.V., Filipan Beheer B.V., Mr. Mladen Filipan, and Pijnenburg Beheer N.V., and VASCO Data Security International, Inc. dated February 4, 2005. * 99.3 Financial Statements 99.4 Unaudited Pro Forma Financial Statements * * Filed Previously
EXHIBIT 2.2 CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors VASCO Data Security International, Inc.: We consent to the incorporation by reference in the registration statements (No. 333-62829 on Form S-8 and No. 333-46256 on Form S-3) of our report dated January 31, 2005 relating to the Balance Sheets of AOS-Hagenuk B.V. as of December 31, 2004, 2003 and 2002 and the related Statements of Operations, Cash Flows and Stockholders' Equity for each of the years in the three-year period ended December 31, 2004, which report appears in the May 20, 2005 current report on Form 8-K/A, Amendment No. 2, of VASCO Data Security International, Inc. /s/ BERK Accountants en Belastingadviseurs BERK Accountants en Belastingadviseurs 's-Hertogenbosch The Netherlands May 20, 2005
Exhibit 99.3 INDEPENDENT AUDITOR'S REPORT To the Board of Directors and Participants of AOS-Hagenuk B.V.: We have audited the accompanying Balance Sheets of AOS-Hagenuk B.V. (the "Company") as of December 31, 2002, 2003 and 2004, and the related Statements of Operations, Cash Flows and Shareholders' equity for the years ended December 31, 2002, 2003 and 2004. These financial statements are the reponsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with auditing standards generally accepted in the Netherlands. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements present fairly, in all material aspects, the financial position of the Company as of December 31, 2002, 2003 and 2004, and the results of its operations and its cash flows for each of the year ended December 31, 2002, 2003 and 2004, in conformity with accounting principles generally accepted in the United States of America. 's-Hertogenbosch, The Netherlands January 31, 2005 /s/ A.B.M. Huisman AA /s/ drs. E.W.J.A. van Druten RA
AOS-HAGENUK B.V. BALANCE SHEET (IN EURO'S) December 31, December 31, December 31, 2004 2003 2002 ------------ ------------ ------------ ASSETS CURRENT ASSETS Cash and cash equivalents (E) 690,066 (E)1,333,739 (E) -- Trade accounts receivable 137,418 575,818 337,703 Related party receivables 450,075 -- 662,705 Inventory 58,505 27,269 55,636 Taxes and social security premiums 3,446 4,960 28,722 Prepaid expenses and other current assets 149,678 65,323 188,579 ------------ ------------ ------------ Total current assets 1,489,188 2,007,109 1,273,345 ------------ ------------ ------------ PROPERTY, PLANTS AND EQUIPMENT, AT COST Equipment 138,525 196,017 -- ------------ ------------ ------------ Total property, plants and equipment 138,525 196,017 -- ------------ ------------ ------------ OTHER ASSETS Development expenses, net of accumulated amortization 539,020 544,128 544,536 ------------ ------------ ------------ TOTAL ASSETS (E)2,166,733 (E)2,747,254 (E)1,817,881 ============ ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Banks (E) -- (E) 38,186 (E) 741,842 Advance payments on orders 1,416,932 1,577,331 74,752 Trade accounts payable 32,950 74,562 451,432 Related party payables 21,497 275,062 209,122 Other accrued liabilities 102,994 171,055 31,799 Taxes payable 22,644 145,207 280,306 ------------ ------------ ------------ Total current liabilities 1,597,017 2,281,403 1,789,253 ------------ ------------ ------------ SHAREHOLDERS' EQUITY Share capital, shares of common stock, par value(E) 100 Authorized 900 shares, issued and outstanding 180 18,000 18,000 18,000 Additional paid-in capital 500,000 500,000 -- Retained earnings 51,716 (52,149) 10,628 ------------ ------------ ------------ Total shareholders' equity 569,716 465,851 28,628 ------------ ------------ ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (E)2,166,733 (E)2,747,254 (E)1,817,881 ============ ============ ============ See accompanying notes to the financial statements.
AOS-HAGENUK B.V. STATEMENT OF OPERATIONS (IN EURO'S) For the Years Ended December 31, -------------------------------------------- 2004 2003 2002 ------------ ------------ ------------ REVENUE (E)4,385,101 (E)2,374,537 (E)3,747,817 Cost of revenues 2,585,276 1,174,268 2,685,601 ------------ ------------ ------------ Gross profit 1,799,825 1,200,269 1,062,216 Other operating income -- 172,385 116,881 ------------ ------------ ------------ 1,799,825 1,372,654 1,179,097 ------------ ------------ ------------ OPERATING EXPENSES Selling 814,931 486,935 411,397 Research & Development 679,544 479,533 420,118 Administrative and general expenses 175,510 392,494 302,649 ------------ ------------ ------------ Operating expenses 1,669,985 1,358,962 1,134,164 ------------ ------------ ------------ Operating income 129,840 13,692 44,933 OTHER INCOME (EXPENSE) Interest income 13,053 -- 18 Interest expense (14,978) (80,865) (29,927) ------------ ------------ ------------ Income before provisions for corporate tax 127,915 (67,173) 15,024 Provision for corporate tax 24,050 (4,396) 4,396 ------------ ------------ ------------ Net income (E) 103,865 (E) (62,777) (E) 10,628 ============ ============ ============ See accompanying notes to the financial statements.
AOS-HAGENUK B.V. STATEMENT OF SHAREHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2004, 2003 AND 2002 (IN EURO'S) Aditional Paid-In Paid-In Retained Capital Capital earnings Total ------------ ------------ ------------ ------------ BALANCE, January 1, 2002 (E) -- (E) -- (E) -- (E) -- ============ ============ ============ ============ Share issue 18,000 -- -- 18,000 Net income -- -- 10,628 10,628 ------------ ------------ ------------ ------------ BALANCE, December 31, 2002 18,000 -- 10,628 28,628 ============ ============ ============ ============ Share issue -- 500,000 -- 500,000 Net income -- -- (62,777) (62,777) ------------ ------------ ------------ ------------ BALANCE, December 31, 2003 18,000 500,000 (52,149) 465,851 ============ ============ ============ ============ Net income -- -- 103,865 103,865 ------------ ------------ ------------ ------------ BALANCE, December 31, 2004 (E) 18,000 (E) 500,000 (E) 51,716 (E) 569,716 ============ ============ ============ ============ See accompanying notes to the financial statements.
AOS-HAGENUK B.V. STATEMENT OF CASH FLOWS (IN EURO'S) FOR THE YEARS ENDED DECEMBER 31, -------------------------------------------- 2004 2003 2002 ------------ ------------ ------------ OPERATING ACTIVITIES Net income (E) 103,865 (E) (62,777) (E) 10,628 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 73,312 83,492 -- Changes in assets and liabilities: Inventory (31,236) 28,367 (55,636) Trade accounts receivable and unbilled revenues (94,516) 571,608 (1,217,709) Short term liabilities (684,386) 492,150 1,789,253 ------------ ------------ ------------ Net cash provided by (used in) operating activities (632,961) 1,112,840 526,536 INVESTING ACTIVITIES Purchase of development expenses -- -- (544,536) Purchase of property, plant and equipment (10,712) (279,101) -- FINANCING ACTIVITIES Share issue -- 500,000 18,000 ------------ ------------ ------------ NET DECREASE/INCREASE IN CASH (643,673) 1,333,739 -- ============ ============ ============ MOVEMENTS IN CASH: Balance as at January 1 1,333,739 -- -- Mutation bookyear (643,673) 1,333,739 -- ------------ ------------ ------------ Balance as at December 31 (E) 690,066 (E) 1,333,739 (E) -- ============ ============ ============ See accompanying notes to the financial statements.
AOS - HAGENUK B.V. NOTES TO THE FINANCIAL STATEMENTS (IN EUROS) 1. NATURE OF OPERATIONS The activities of the AOS-Hagenuk B.V. consist mainly of the development and production of smart card products. 2. BASIS OF PRESENTATION The valuation of assets and liabilities and the determination of the result take place on the basis of historical costs. Assets and liabilities are valued at nominal value unless otherwise stated in the notes below. Balance sheet items relating to assets and liabilities in foreign currency are converted at the rates that apply at the end of the financial year, unless the exchange rate risk has been hedged. The exchange rate differences that arise during conversion are credited or charged to the profit and loss account. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES TRADE ACCOUNTS RECEIVABLE The trade accounts receivable are valued at nominal value, where necessary less a bad debt provision. The provision is determined on the basis of an individual assessment of outstanding debts. INVENTORY The stocks are stated at the lower of cost or market value. The inventory costing method is FIFO. PROPERTY, PLANT AND EQUIPMENT The equipment is valued at the purchase cost, less straight-line depreciation based on their anticipated useful economic life. DEVELOPMENT EXPENSES The development expenses are valued at the purchase price, less depreciation based upon the expected sales of end products. Internal hours have not been activated. OTHER ASSETS AND LIABILITIES The other assets and liabilities are valued at nominal value.
AOS - HAGENUK B.V. NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) (IN EUROS) NET TURNOVER The net turnover is the revenue obtained from goods and services supplied to third parties, less any discounts issued and the tax levied on the turnover. OTHER OPERATING INCOME Other operating income relates to grants received, which is accounted for in the year to which it relates. COST OF SALES These costs are determined on the basis of the acquisition price. Also included are the value adjustment of stocks to a lower net realizable value and the addition to or release of the provision made for obsolete stocks. DEPRECIATION The depreciation of development expenses is based upon the expected sales of end products. The depreciation of equipment is based on the following percentages of the acquisition cost:
AOS - HAGENUK B.V. NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) (IN EUROS) The company has a credit-facility with ABN-AMRO bank for the amount of EUR 500.000. which is secured by pledging receivables. The facility has no expiration date. FISCAL UNIT This company has a fiscal unit for corporate tax with AOS Holding B.V. LEASE OBLIGATIONS AND RENT COMMITMENTS RENT OFFICE: The company has a contract to rent the office from January 1, 2004 until December 31, 2005. The total obligation as per December 31, 2004 is EUR 68,728. LEASE VEHICLES: The company has lease obligations at the end of 2004 of EUR 174,510, of which will be released in 2005 EUR 61,260. Future minimum lease payments are as follows: Rent office vehicles ---------- ----------- 2005 (E) 68,728 (E) 61,260 2006 -- 51,150 2007 -- 43,019 2008 -- 19,081 2009 -- -- ---------- ----------- Total (E) 68,728 (E) 174,510 ========== =========== 6. SUBSEQUENT EVENTS On February 4, 2005 Vasco Data Security International, Inc. purchased 100% of the shares of A.O.S. Hagenuk B.V. CURRENT ASSETS 7. TRADE ACCOUNTS RECEIVABLE December 31, ------------------------------------------------ 2004 2003 2002 ---------- ---------- ---------- Trade debtors (E) 137,418 (E) 575,818 (E) 337,703 Provision for bad debts -- -- -- ----------- ----------- ----------- (E) 137,418 (E) 575,818 (E) 337,703 =========== =========== ===========
AOS - HAGENUK B.V. NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) (IN EUROS) 8. RELATED PARTY RECEIVABLES December 31, ------------------------------------------------- 2004 2003 2002 ----------- ------ ----------- AOS Holding B.V. (E) 450,075 (E) -- (E) -- CPS Broadcast Products B.V. -- -- 167,656 B.V. Hagenuk CPS -- -- 495,049 ----------- ----- ----------- (E) 450,075 (E) -- (E) 662,705 =========== ====== =========== Note: 2002 The related party receivables are on behalf of the takeover of activities from CPS Broadcast Products B.V. and B.V. Hagenuk CPS. 2004 AOS-Hagenuk B.V. has financed obligations of AOS Holding B.V. during the year. 9. INVENTORY December 31, ------------------------------------------------ 2004 2003 2002 ---------- ---------- ---------- Raw materials and consumables (E) 58,505 (E) 27,269 (E) 55,636 Inventory obsolescence reserve -- -- -- ---------- ---------- ---------- (E) 58,505 (E) 27,269 (E) 55,636 ========== ========== ========== 10. TAXES AND SOCIAL SECURITY PREMIUMS December 31, ----------------------------------------------- 2004 2003 2002 ---------- ---------- ---------- Industrial insurance board (E) 534 (E) 564 (E) 172 Corporate tax -- 4,396 -- Pension contributions 2,912 -- 1,766 Wage tax -- -- 26,784 --------- --------- ---------- (E) 3,446 (E) 4,960 (E) 28,722 ========= ========= ==========
AOS - HAGENUK B.V. NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) (IN EUROS) PROPERTY, PLANT AND EQUIPMENT 11. EQUIPMENT December 31, ----------------------------------------------- 2004 2003 2002 ----------- ----------- ------ Situation as at 1 January Purchasing cost (E) 279,101 (E) -- (E) -- Accumulated depreciation (83,084) -- -- ----------- ----------- ------ Book value as at 1 January 196,017 -- -- =========== =========== ====== Mutations during the financial year Investments 10,712 279,101 -- Depreciation (68,204) (83,084) -- ----------- ----------- ------ (57,492) 196,017 -- =========== =========== ====== Situation as at 31 December Purchasing cost 289,813 279,101 -- Accumulated depreciation (151,288) (83,084) -- ----------- ----------- ------ Book value as at 31 December (E) 138,525 (E) 196,017 (E) -- =========== =========== ====== OTHER ASSETS 12. DEVELOPMENT EXPENSES December 31, ------------------------------------------------------- 2004 2003 2002 ----------- ----------- ----------- Situation as at 1 January Purchasing cost (E) 544,536 (E) 544,536 (E) -- Accumulated depreciation (408) -- -- ----------- ----------- ----------- Book value as at 1 January 544,128 544,536 -- =========== =========== =========== Mutations during the financial year Investments -- -- 544,536 Depreciation (5,108) (408) -- ----------- ----------- ----------- (5,108) (408) (E) 544,536 =========== =========== =========== Situation as at 31 December Purchasing cost 544,536 544,536 544,536 Accumulated depreciation (5,516) (408) -- ----------- ----------- ----------- Book value as at 31 December (E) 539,020 (E) 544,128 (E) 544,536 =========== =========== ===========
AOS - HAGENUK B.V. NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) (IN EUROS) The development expenses consist of a contribution in the joint development expenses of the PCC810 chip. The development expenses are depreciated by EUR 4 per sold final product in which the chip has been processed. Based on current developments the board expects that there will be sufficient potential for depreciation in the oncoming two years. CURRENT LIABILITIES 13. RELATED PARTY PAYABLES December 31, ------------------------------------ 2004 2003 2002 ---------- ---------- ---------- Pijnenburg Beheer N.V. (E) 21,497 (E)275,062 (E) 78,130 Hagenuk CPS USA Inc. -- -- 130,992 ---------- ---------- ---------- (E) 21,497 (E)275,062 (E)209,122 ========== ========== ========== Note: 2002 Debt to Pijnenburg Beheer N.V. due to applied group costs. Debt to Hagenuk CPS Inc. due to applied marketing costs. 2003 Debt to Pijnenburg Beheer N.V. due to pay off bank debts and profit share. 2004 Debt to Pijnenburg Beheer N.V. due to pay off bank debts and profit share. 14. TAXES AND SOCIAL SECURITY PREMIUMS December 31, ------------------------------------ 2004 2003 2002 ---------- ---------- ---------- V.A.T. (E) 2,386 (E)108,195 (E)275,910 Corporate tax -- -- 4,396 Wage tax 17,093 8,998 -- Pension contributions 3,165 28,014 -- ---------- ---------- ---------- (E) 22,644 (E)145,207 (E)280,306 ========== ========== ========== STATEMENT OF OPERATIONS 15. RENT EXPENSES For the Years Ended December 31, ------------------------------------ 2004 2003 2002 ---------- ---------- ---------- Rent office (E) 70,941 (E) 92,040 (E) 6,275 Rent vehicles 94,241 39,877 -- ---------- ---------- ---------- Total rent expenses (E)165,182 (E)131,917 (E) 6,275 ========== ========== ==========
AOS - HAGENUK B.V. NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) (IN EUROS) 16. OTHER OPERATING INCOME The other operating income consists of grants for a joint European development project. The project was ended in 2003. 17. EXCHANGE GAINS AND LOSSES There are no material exchange gains and losses. 18. CORPORATE TAX For the Years Ended December 31, --------------------------------------- 2004 2003 2002 ---------- ---------- ---------- Corporate tax in fiscal year (E) 24,050 (E) (4,396) (E) 4,396 ========== ========== ========== Statutory tax rate 29-34.5% 29% 29% Differences: - Deduction for investments -2.0% -1.6% - Costs not deductable 2.7% 0.2% - Carry back -23.6% - Carry forward -12.0% Effective tax rate 18.8% 6.5% 29.2% Note: There are no deferred taxes 19. COSTS AND SERVICES PROVIDED BY RELATED PARTIES For the Years Ended December 31, ------------------------------------- 2004 2003 2002 ---------- ---------- ---------- Management fee 1. (E)120,000 (E) 16,250 (E) -- Rent office 2. 70,783 5,790 -- Share in holding costs 3. 26,213 248,108 230,148 Profit share 4. -- 171,966 135,216 Development 5. -- -- 147,204 Marketing 6. -- -- 133,255 Interest (9,300) -- 14,654 ---------- ----------- ---------- (E)207,696 (E) 442,114 (E)660,477 ========== =========== ==========
AOS - HAGENUK B.V. NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) (IN EUROS) 1. CEO mr. Filipan 2. Art of Security B.V. 3. en 4. Pijnenburg Beheer N.V. 5. CPS Broadcast B.V. 6. CPS Hagenuk USA Inc. 20. INTEREST INCOME AND EXPENSE For the Years Ended December 31, -------------------------------------- 2004 2003 2002 ---------- ---------- ---------- INTEREST INCOME Interest bank deposits (E) 3,753 (E) -- (E) 18 Interest AOS Holding B.V 9,300 -- -- ---------- ---------- ---------- (E) 13,053 (E) -- (E) 18 ========== ========== ========== INTEREST EXPENSE Interest and costs bank accounts (E) 14,978 (E) 80,865 (E) 29,927 ---------- ---------- ---------- (E) 14,978 (E) 80,865 (E) 29,927 ========== ========== ========== 21. NET INCOME AOS-HAGENUK B.V. AND HER PREDECESSOR CORPORATIONS For the Years Ended December 31, ---------------------------------------- 2004 2003 2002 ---------- ---------- ---------- AOS-Hagenuk B.V (E)103,865 (E)(62,777) (E) 10,628 ---------- ---------- ---------- (E)103,865 (E)(62,777) (E) 10,628 ========== ========== ========== Note: Hagenuk Smart Card Solutions B.V. is founded at May 17, 2002. As of January 1, 2002 the company took over the smart car activities from her associated companies, B.V. Hagenuk CPS. As at June 25, 2004 Hagenuk Smart Card Solutions B.V. changed her statutory name in AOS-Hagenuk B.V.