-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LM6QAMEHHUlyOOTOMrZh5BLk1lWe0Z481rP2Q7NR3Ht68pcw7RBCzlPDllxV/Flv 15YSd7fjJCCdwOVfJ4ijkQ== 0000891554-95-000197.txt : 19951120 0000891554-95-000197.hdr.sgml : 19951120 ACCESSION NUMBER: 0000891554-95-000197 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950430 FILED AS OF DATE: 19951116 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MULTI SOLUTIONS INC CENTRAL INDEX KEY: 0000723733 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 222418056 STATE OF INCORPORATION: NJ FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-12162 FILM NUMBER: 95594037 BUSINESS ADDRESS: STREET 1: 4262 US ROUTE 1 STREET 2: SUITE 2 CITY: MONMOUTH JUNCTION STATE: NJ ZIP: 08852 BUSINESS PHONE: 9083299200 MAIL ADDRESS: STREET 1: 4262 US HIGHWAY 1 STREET 2: SUITE 2 CITY: MONMOUTH JUNCTION STATE: NJ ZIP: 08852-1905 10QSB 1 QUARTERLY REPORT SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 1995 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from____ to_____ Commission File Number: 0-12162 MULTI SOLUTIONS, INC (Exact name of small business issuer as specified in its charter) NEW JERSEY 22-2418056 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 4262 US Route 1, Monmouth Junction, New Jersey 08852 (Address of principal executive offices) Issuer's telephone number, including area code:(908) 329-9200 Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- --- Indicate the number of shares outstanding of each of the issuer's classes of Common Stock, as of the latest practicable date. Class Outstanding at April 30, 1995 - ----------------------- ------------------------------ Common Stock, par value 15,806,898 $.001 per share PART I. FINANCIAL INFORMATION Item 1. Financial Statements The accompanying financial statements are unaudited for the interim periods, but include all adjustments (consisting only of normal recurring accruals) which management considers necessary for the fair presentation of results for the three months ended April 30, 1995. Moreover, these financial statements do not purport to contain complete disclosure in conformity with generally accepted accounting principles and should be read in conjunction with the Company's audited financial statements at, and for the fiscal year ended January 31, 1995. The results reflected for the three months ended April 30, 1995 are not necessarily indicative of the results for the entire fiscal year. Multi Solutions, Inc and Subsidiary CONSOLIDATED BALANCE SHEETS April 30, January 31, 1995 1995 (Unaudited) ----------- ----------- ASSETS CURRENT ASSETS Cash $ -- $ 18,342 Accounts receivable(net of allowance of $32,880 and $37,063 respectively) 116,411 95,791 Prepaid expenses and other current assets 21,457 17,310 ----------- ----------- 137,868 131,443 FURNITURE AND EQUIPMENT, AT COST Research and development equipment 368,382 368,382 Office furniture and other 111,550 111,550 ----------- ----------- 479,932 479,932 Less accumulated depreciation and amortization 474,098) (473,666) ----------- ----------- 5,834 6,266 OTHER ASSETS Capitalized software and development costs 1,702,546 1,613,516 Less accumulated amortization (965,639) (886,605) ----------- ----------- 736,907 726,911 $ 880,609 $ 864,620 =========== =========== Multi Solutions, Inc. and Subsidiary CONSOLIDATED BALANCE SHEETS April 30, January 31, 1995 1995 LIABILITIES AND STOCKHOLDERS' DEFICIENCY (Unaudited) ----------- ----------- CURRENT LIABILITIES Notes payable $ 50,695 $ 53,729 Accrued payroll 53,079 31,190 Payroll and other taxes payable 77,706 78,607 Accounts payable and accrued expenses 403,690 414,303 Deferred Compensation due officers/shareholders 437,935 371,713 Accrued Officer Compensation 194,788 152,246 Deferred revenues 267,332 289,391 Loans from officers 2,900 22,000 ----------- ----------- 1,488,125 1,413,179 DEFERRED REVENUES-Net of Current Portion 190,169 200,886 STOCKHOLDERS' DEFICIENCY Common stock, authorized 40,000,000 shares $ .001 Par Value Issued and outstanding: 15,806,898 (1995) and 15,257,198 (1994) Respectively 15,807 15,807 Additional paid-in capital 8,420,537 8,420,537 Accumulated deficit (9,234,029) (9,185,789) ----------- ----------- (797,685) (749,445) $ 880,609 $ 864,620 =========== =========== Multi Solutions, Inc. and Subsidiary CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended April 30, 1995 1994 ------------ ------------ Revenues License fees $ 143,058 $ 27,460 Maintenance Revenue 128,857 12,846 Consulting and other fees 2,289 153,817 ------------ ------------ Total revenues 274,204 194,123 Operating expenses Software development and technical support 74,470 94,743 Selling and administrative expenses 246,991 202,168 ------------ ------------ Total expenses 321,461 296,911 Loss from operations (47,257) (102,788) Other Income (Expenses) Interest expense (983) (6,264) Loss on Disposal of leasehold improvements Special discount to investors Other income ------------ ------------ NET LOSS $ (48,240) $ (109,052) ============ ============ Weighted average number of shares outstanding 15,846,240 15,226,807 ============ ============ Loss per share NIL NIL ============ ============ Multi Solutions, Inc. and Subsidiary CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended April 30, 1995 1994 --------- --------- Cash flows from operating activities Net loss $ (48,240) $(109,052) Adjustments to reconcile net loss to net cash provided (used) by operating activities Depreciation and amortization 79,466 60,858 Common stock issued as compensation to officers -- -- Discount to investors -- -- Changes in assets and liabilities Decrease (increase) in accounts receivable (20,620) 96,428 (Increase) decrease in prepaid expenses and other current assets (4,147) (4,282) Increase in accrued payroll 21,889 (34,460) (Decrease) in payroll and other taxes payable (901) -- Increase (decrease) in accounts payable and accrued expenses (10,612) (100,054) Increase (decrease) in accrued officer compensation 42,540 -- Increase in deferred compensation 66,222 -- (Decrease) increase in deferred revenues (22,059) 95,118 Increase (decrease) in long term deferred revenues (10,716) -- --------- --------- Net cash provided by operating activities 92,822 4,556 Cash flows from investing activities Capitalized software development cost (89,030) (93,441) Net cash used in investing activities (89,030) (93,441) --------- --------- Cash flows from financing activities Net (repayments) borrowings under loan and line of credit ageements (22,134) 55,431 --------- --------- Net cash provided by (used in) financing activities (22,134) 55,431 Net (decrease) in cash (18,342) (33,454) Cash at beginning of year 18,342 33,454 Cash at end of year $ -- -- ========= =========
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Three months Ended April 30, 1995 Compared to three months ended April 30, 1994 Revenues for the current three months of fiscal year 1995 increased 80,081 or 41.2% compared with the comparable period of the prior year. The increase in revenues is attributable to increased license and maintenance fees as a result of customer requests for product updates, technical assistance and support. Operating expenses as a percent of revenues for the three month period was 117.2% compared with 153.% for the comparable period of the prior year. The decrease in operating expenses as a percent of revenues was primarily attributable to the higher revenue volume and a reduction in technical support salaries,offset by an increase in Selling and Administrative expenses. The operating loss, before other income (expense) of $47,257 for the current three month period decreased $55,531 compared with the comparable period of the prior year. Other income (expense) for the current three month period was ($983) as compared with ($6264) for the comparable period of the prior year. For the current three month period , a net loss of $48,240 or ($.00) cents per share was incurred compared with a net loss of ($109,052) or ($.00) cents per share an decrease of $60,812. Major Customers In the first three months of 1995, IBM accounted for 31.25% of total revenues. In the first three months of 1994, American International Group accounted for 12% of total revenues. Liquidity and Capital Resources At April 30, 1995, the Company had a negative working capital position of ($1,350,257); and has been experiencing cash flow problems. Management of the company has taken various steps to correct this situation. Overhead costs have been cut drastically as a result of staff reductions and curtailment of all outside marketing and advertising costs. In addition, senior staff salaries were reduced and executive officers' salaries were partly deferred. Secondly, Multi Soft broadened its product base into the Windows environment and has made its Windows based products easier to learn and use. Multi Soft has entered into an International Software Licensing Agreement with IBM which grants IBM the non-exclusive rights and license to market an extended runtime version of Multi Soft's WCL product as an IBM logo product. This IBM EXTENDED VERSION of Multi Soft's WCL is named IMS Client Server(TM) for Windows. It provides remote presentation support for IMS. Multi Soft and IBM also have entered into International Marketing Agreements to market Multi Soft's WCL Toolkit under the name IMS Client Server Toolkit(TM) for Windows in the United States, Puerto Rico, the Asian Pacific Region, Europe, the Middle East and Africa and Canada. In addition, in September 1994, Multi Soft entered into an International Software Licensing Agreement with IBM's Personal Communications 3270 division ("P-Comm"). This agreement allows IBM to logo and market a P-Comm specific version of both the Toolkit and Runtime of Multi Soft's WCL(TM). Pursuant to this agreement, the Company will receive a minimum of $75,000 per quarter over a two year period representing minimum advances against royalties. It is Multi Soft's intent to remain a technology provider and search out multiple distribution channels, rather than to try and grow via an expensive direct sales force. This allows the focus to stay on technology, with a low overhead cost for each distribution channel used. However, if the Company obtains additional funds from operations or otherwise, it plans to expand in-house marketing activities by advertising in trade publications and by conducting targeted mailing. Dividend Policy The Company has not declared or paid any dividends on its common stock since its inception and does not anticipate the declaration or payment of cash dividends in the foreseeable future. The Company intends to retain earnings, if any, to finance the development and expansion of its business. Future dividend policy will be subject to the discretion of the Board of Directors and will be contingent upon future earnings, if any, the Company's financial condition, capital requirements, general business conditions and other factors. Therefore, there can be no assurance that dividends of any kind will ever be paid. Effect of Inflation Management believes that inflation has not had a material effect on its operations for the periods presented. PART II - OTHER INFORMATION Item 1. Exhibits and Reports on Form 8-K (a) Exhibits 27. Financial Data Schedule (b) Reports on Form 8-K SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registration has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. MULTI SOLUTIONS, INC. Dated: November 3, 1995 By: /s/ Charles J. Lombardo ----------------------------------------- Charles J. Lombardo, Chief Executive Officer, Chief Financial Officer and Treasurer EX-27 2 FDS --PERIOD ENDED 4/30/95
5 3-MOS JAN-31-1996 APR-30-1995 0 0 149,291 32,880 0 137,868 479,932 474,098 880,609 1,488,125 0 15,807 0 0 (813,492) 880,609 143,058 274,204 0 74,470 0 0 983 (48,240) 0 (48,240) 0 0 0 (48,240) 0.00 0.00
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