UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 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): November 11, 2010



NUVILEX, INC.

(Exact name of registrant as specified in its charter)



Nevada

333-68008

62-1772151

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification No.)


7702 E. Doubletree Ranch Rd, Suite #300, Scottsdale, AZ


85541

(Address of Principal Executive Offices)

(Zip Code)


Registrant's telephone number, including area code (480) 348-8050


EFOODSAFETY.COM, INC.

 (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 (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))





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Section 4 - Matters Related to Accountants and Financial Statements


Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review


In conjunction with the preparation of the Form 10-K for Nuvilex, Inc. (the “Company”) for the fiscal year ending April 30, 2010, the Company’s officers and directors discussed its previous accounting treatment of the acquisition of Freedom-2 Holdings, Inc. (as acquired in the fiscal year ending April 30, 2009)with its new independent registered public accounting firm, M&K CPA’s PLLC, as well its previous independent registered public accounting firm, Gruber & Company LLC.  On or about November 11, 2010, the Company determined that the accounting of the acquisition was not in conformity with the purchase method of accounting required under generally accepted accounting principles.  Specifically, the Company did not record the value of the acquired assets and liabilities at fair market (see adjustments, below).  The application of the purchase method of accounting necessitated the Company’s restatement of its April 30, 2009 balance sheet, results of operations and cash flows for the year then ended. As part of this reevaluation the Company obtained a third party valuation analysis and purchase price allocation of the Freedom-2 Holdings, Inc. acquisition, which management used to assist in determining the fair value of the transaction. This restatement also resulted in the restatement of the interim financial reports for the quarters ended July 31, 2009, October 31, 2009, and January 31, 2010, all of which have been restated in subsequent filings.  Accordingly, the financial reports as originally filed for these periods should not be relied upon.  An analysis of the restated April 30, 2009 balance sheet, results of operations and cashflows for the year ended April 30, 2009 is as follows.


2


 

 

April 30, 2009

 

As Reported

Adjustment

 

As Restated

   Cash

 $            603,727

 $                     -   

 

 $            603,727

   Marketable securities

                 31,185

                        -   

 

                 31,185

   Accounts receivable - net

               156,312

                        -   

 

               156,312

   Inventory

               117,095

                        -   

 

               117,095

   Prepaid expenses

               214,418

                        -   

 

               214,418

   Current portion of loan receivable

                 60,000

                        -   

 

                 60,000

         Total Current Assets

            1,182,737

                        -   

 

            1,182,737

 

 

 

 

 

Property, plant and equipment - net

            2,643,875

             (152,745) 

1

            2,491,130

Goodwill

            2,113,412

                33,141

4

            2,146,553

Intangible assets

               857,025

             (682,981)

2,3

               174,044

Other non-current assets

 

 

 

 

  Loan receivable, net of current portion

                 45,000

                        -   

 

                 45,000

          Total Assets

 $         6,842,049

 $          (802,585)

 

 $         6,039,464

 

 

 

 

 

Current Liabilities

 

 

 

 

   Accounts payable

 $            209,942

 $                     -   

 

 $            209,942

   Accrued expenses

               223,459

                        -   

 

               223,459

   Current portion of long-term debt

               485,395

              135,000

7

               620,395

   Debt discount

                        -   

             (123,904)

5,8

             (123,904)

          Total Current Liabilities

               918,796

                11,096

 

               929,892

 

 

 

 

 

Long-term Liabilities

 

 

 

 

   Long-term debt

            1,929,690

                52,475

9,10

            1,982,165

   Tenant deposits

                   3,987

                        -   

 

                   3,987

          Total Liabilities

            2,852,473

                63,571

 

            2,916,044

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

   Preferred stock

                          1

              999,999

11

            1,000,000

   Common stock

                 24,517

                     144

6

                 24,661

   Additional paid in capital

          33,197,848

             (819,063)

6,7,11

          32,378,785

   Comprehensive income

                   8,910

                        -   

 

                   8,910

   Stock not yet issued

               250,000

                        -   

 

               250,000

   Accumulated deficit

        (29,491,700)

          (1,047,236)

6

        (30,538,936)

          Total Stockholders' Equity

            3,989,576

             (866,156)

 

            3,123,420

          Total Liabilities and Stockholders'
           Equity

 $         6,842,049

 $          (802,585)

 

 $         6,039,464

 

 

 

 

 

 

 

 

 

 

 

For the Twelve Months Ended April 30, 2009

 

As Reported

Adjustment

 

As Restated

Revenues

$            653,134

$                     -

 

$       653,134

Cost of revenues

427,410

-

 

427,410

Gross profit

225,724

-

 

225,724

 

 

 

 

 

Expenses:

 

 

 

 

    Sales and marketing

594,342

-

 

594,342

    Research and development

473,514

-

 

473,514

    General and administrative

5,199,963

134,836

3,6,10

5,334,799

            Total operating expenses

6,267,819

134,836

 

6,402,655

Net loss from operations

(6,042,095)

(134,836)

 

(6,176,931)

 

 

 

 

 

Other income (expense)

 

 

 

 

     Interest income

14,651

-

 

14,651

     Dividend income

3,862

-

 

3,862

     Gain on sale of marketable securities

9,133

-

 

9,133

  Impairment loss recognized for fixed assets

-

(857,024)

3

(857,024)

 

     Interest expense

(27,175)

(9,296)

10

(36,471)

          Total other income (expense)

471

(866,320)

 

(865,849)

Net loss

$       (6,041,624)

$       (1,001,156)

 

$       (7,042,780)

 

 

 

 

 

Loss per share

 

 

 

 

     Basic and diluted

$                (0.03)

 

 

$                (0.03)

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

     Basic and diluted

227,949,900

 

 

201,914,344



3



 

 

For the Year Ended April 30,

 

 

As Reported

 

Adjustment

 

As Restated

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

 $       (6,041,624)

 

 $       (1,001,156)

 

 $       (7,042,780)

Adjustments used to reconcile net loss to net cash

 

 

 

 

 

 

      provided by (used in) operating activities:

 

 

 

 

 

 

      Stock issued to retained earnings

 

                        -   

 

               (46,080)

 6

(46,080)

      Comprehensive income

 

                  8,910

 

                        -   

 

                  8,910

      Depreciation and amortization

 

                28,830

 

                    (165)

 1,2

                28,665

      Common stock issued for services

 

                71,000

 

              181,080

 5,6

              252,080

      Loss on disposal of fixed assets

 

                        -   

 

                        -   

 

                        -   

      Abandonment of intangible asset

 

                  6,378

 

                        -   

 

                  6,378

      Loan receivable accrued interest

 

                 (6,875)

 

                        -   

 

                 (6,875)

      Loss on impairment of assets

 

                        -   

 

              857,025

3

              857,025

      Net amortization of discount/premium

 

                        -   

 

                 (1,800)

10

                 (1,800)

      Change in assets and liabilities:

 

 

 

 

 

 

           (Increase) decrease in accounts receivable

 

              223,484

 

                        -   

 

              223,484

           (Increase) decrease in inventory

 

              172,470

 

                        -   

 

              172,470

           (Increase) decrease in prepaid expenses

 

           4,464,625

 

                        -   

 

           4,464,625

           Increase (decrease) in accounts payable

 

             (299,194)

 

                        -   

 

             (299,194)

           Increase (decrease) in accrued expenses

 

              194,124

 

                        -   

 

              194,124

           Increase in debt discount

 

                        -   

 

             (123,904)

 7

             (123,904)

           Increase (decrease) in short term debt

 

                        -   

 

              135,000 

 5

              135,000

           (Decrease) in deferred revenue

 

                 (7,500)

 

                        -   

 

                 (7,500)

                  Net cash used in operating activities

 

          (1,185,372)

 

                        -   

 

          (1,185,372)

Cash flows from investing activities:

 

 

 

 

 

 

     Cash proceeds from acquisition of Freedom2

 

                  7,592

 

                        -   

 

                  7,592

    Collection of loan receivable

 

                15,000

 

                        -   

 

                15,000

     Purchase of fixed assets

 

                 (5,080)

 

                        -   

 

                 (5,080)

     Proceeds from or (purchase) of marketable securities

 

               (31,185)

 

                        -   

 

               (31,185)

                 Net cash provided by (used in) investing activities

 

               (13,673)

 

                        -   

 

               (13,673)

Cash flows from financing activities:

 

 

 

 

 

 

      Cash received for stock not issued

 

              250,000

 

                        -   

 

              250,000

      Proceeds from borrowings

 

                61,629

 

                        -   

 

                61,629

      Repayment of debt

 

               (22,398)

 

                        -   

 

               (22,398)

                 Net cash provided by financing activities

 

              289,231

 

                        -   

 

              289,231

Net decrease in cash and cash equivalents

 

             (909,814)

 

 

 

             (909,814)

Cash and cash equivalents at beginning of period

 

           1,513,541

 

 

 

           1,513,541

Cash and cash equivalents at end of period

 

 $           603,727

 

 

 

 $           603,727

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

 

 

 

 

   Franchise and income taxes

 

 $               2,200

 

 

 

 $               2,200

   Cash paid for interest

 

 $             26,508

 

 

 

 $             26,508

   Stock issued for acquisition

 

 $        2,265,634

 

 

 

 $        2,265,634



4


1.

A change in value from the originally recorded book value of $2,644,437 in Freedom-2 Holdings, Inc. property, plant and equipment to fair value of $2,489,571. The adjustment of Freedom-2 Holdings, Inc. property, plant and equipment generated a reversal of $2,120 in Q4 depreciation expense for the same assets. The depreciation reversal is reflected in a decrease in general and administrative expenses.

2.

The addition of $176,000 of intangible assets acquired from Freedom-2 Holdings, Inc. Related amortization expense of $1,956 was recorded for the fourth quarter.

3.

Impairment of $857,025 in intangible assets. The impairment is charged to impairment loss recognized for acquired and intangible assets. See Note – 8 Goodwill and Intangible Assets.

4.

A net increase to goodwill as a result in the change to fair value for property, plant & equipment, certain liabilities and the addition of the intangible assets.

5.

An increase in short term debt of $135,000 and general & administrative expenses for the issuance of a convertible note to Kurt Mussina for unpaid severance.

6.

On February 3, 2006, 1,440,000 Common Stock were issued to a shareholder and not placed on the Company’s registry.  The shares are valued at $46,080 ($0.32/share). The share issuance was charged to retained earnings. The shares were issued without registration under the Securities Act of 1933, as amended, in reliance upon the exemption afforded by Section 4(2) of that Act. No underwriters were involved.

7.

Pursuant to the beneficial conversion provisions of the Mussina note (see item 4), a debt discount of $135,000 was charged to additional paid in capital in the amount of $135,000.

8.

Amortization of $11,096 of the debt discount is charged to interest expense for the month of April 2009.

9.

A net increase to long term debt as a result of adjusting certain liabilities to fair value.

10.

A net decrease to long term debt for the amortization of the discount and premium which resulted from recording the mortgage and license fee payables at fair value.

11.

A reclass of $999,999 from APIC to preferred stock in order to show the full value of the convertible preferred stock outstanding.

Total assets for the period ending April 30, 2009 were decreased, pursuant to the above restatements, to $6,039,464 from $6,842,049.


Results of operations for the year ended April 30, 2009 of the above restatements increased the net loss attributable to Common Stockholders by $1,001,156 for a total loss attributable to Common Stockholders for the year then ended of $7,042,780 or ($0.03 per share).


The Company’s Board of Directors and Officers discussed the restatement and reviewed the proposed changes with the Company’s prior independent auditors, Gruber & Company, who reissued their audit opinion for the year ended April 30, 2009 based on the restated numbers.  The Company’s Board of Directors and Officers discussed the restatement and reviewed the proposed changes with the Company’s new independent auditors, M&K CPA’s and requested letter from its auditors addressing their agreement with the revised financial statements.  The auditors reviewed the prior accountant work papers, and the restated financial statements, and determined that the restated financial statements could be relied upon.  A copy of the auditor letter is attached hereto.



5


Section 9 – Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

Exhibit No.

Document

Location

16.1


Letter dated April 26, 2011, from M & K CPAS, PLLC to the Securities and Exchange Commission.

Filed herewith


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.


                             

 NUVILEX, INC.

                                  

              (Registrant)


Date: April 26, 2011

                                              

                                           

/s/ Patricia Gruden

                                            

Patricia Gruden

Interim Chief Financial Officer



6