-----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, FlyuCPd/Q8QmYW/Bgi9UOiJPn4RCXF6LYOqrCcJIbhQq7+K8+Fjn/ZFYDKyepKP3 kGrf+8pB4UaOxzF1whMqBQ== 0000891554-96-000598.txt : 19960917 0000891554-96-000598.hdr.sgml : 19960917 ACCESSION NUMBER: 0000891554-96-000598 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960731 FILED AS OF DATE: 19960916 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: 96630619 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 July 31, 1996 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 July 31, 1996 ----- ---------------------------- Common Stock, par value 17,881,898 $.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 July 31, 1996. 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, 1996. The results reflected for the three and six months ended July 31, 1996 are not necessarily indicative of the results for the entire fiscal year. Multi Solutions, Inc and Subsidiary CONSOLIDATED BALANCE SHEETS
July 31, January 31, 1996 1996 (Unaudited) ----------- ----------- ASSETS CURRENT ASSETS Cash $ 156,432 $ 89,575 Accounts receivable( net of allowance of $28,932 and $37,063 respectively) 103,971 100,428 Prepaid expenses and other current assets 13,532 13,532 ----------- ----------- 273,935 203,535 FURNITURE AND EQUIPMENT, AT COST Research and development equipment 4,158 259,907 Office furniture and other 17,968 10,053 ----------- ----------- 22,126 269,960 Less accumulated depreciation and amortization (7,185) (266,066) ----------- ----------- 14,941 3,894 OTHER ASSETS Capitalized software and development costs 1,606,217 1,980,130 Less accumulated amortization (937,397) (1,256,153) ----------- ----------- 668,820 723,977 $ 957,696 $ 931,406 =========== ===========
Multi Solutions, Inc. and Subsidiary CONSOLIDATED BALANCE SHEETS
July 31, January 31, 1996 1996 LIABILITIES AND STOCKHOLDERS' DEFICIENCY (Unaudited) ----------- ----------- CURRENT LIABILITIES Notes payable $ 34,119 $ 41,099 Accrued payroll -- 30,285 Payroll and other taxes payable 53,355 74,993 Accounts payable and accrued expenses 147,521 216,554 Deferred Compensation due officers/shareholders 649,144 636,605 Accrued Officer Compensation 126,681 110,016 Deferred revenues 289,556 309,792 Loans from officers -- -- ----------- ----------- 1,300,376 1,419,344 DEFERRED REVENUES-Net of Current Portion -- 8,022 STOCKHOLDERS' DEFICIENCY Common stock, authorized 40,000,000 shares $ .001 Par Value Issued and outstanding: 17,806,898 (1996) and 17,881,898 respectively 17,882 17,807 Additional paid-in capital 8,582,212 8,578,537 Minority Interest 154,466 Accumulated deficit (9,097,240) (9,092,304) ----------- ----------- (342,680) (495,960) $ 957,696 $ 931,406 =========== ===========
Multi Solutions, Inc. and Subsidiary CONSOLIDATED STATEMENTS OF OPERATIONS
Six Months Ended Three Months Ended July 31, July 31, 1996 1995 1996 1995 ------------ ------------ ------------ ------------ Revenues License fees $ 254,066 $ 388,146 $ 168,197 $ 245,088 Maintenance Revenue 312,384 280,763 152,631 151,906 Consulting and other fees 17,757 12,195 17,530 9,906 ------------ ------------ ------------ ------------ Total revenues 584,207 681,104 338,358 406,900 Operating expenses Software development and technical support 171,244 153,391 86,920 78,921 Selling and administrative expenses 413,093 492,650 202,680 245,659 ------------ ------------ ------------ ------------ Total expenses 584,337 646,041 289,600 324,580 Income (Loss) from operations (130) 35,063 48,758 82,320 Other Income (Expenses) Interest expense (4,806) (2,621) (3,782) (1,638) ------------ ------------ ------------ ------------ Total Other (Expenses) (4,806) (2,621) (3,782) (1,638) NET INCOME (LOSS) (4,936) 32,442 44,976 80,682 ============ ============ ============ ============ Weighted average number of shares outstanding 17,844,398 15,846,240 17,844,398 15,846,240 ============ ============ ============ ============ Loss per share $ -- $ -- $ -- $ -- ============ ============ ============ ============
MULTI -SOLUTIONS, INC. STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended July 31, 1996 1995 --------- --------- Cash flows from operating activities Net Income(loss) $ (4,936) $ 32,442 Adjustments to reconcile net Income (loss) to net cash provided (used) by operating activities Depreciation and amortization Common stock issued as compensation to employees 172,270 164,096 Discount to investors Changes in assets and liabilities (Increase) decrease in accounts receivable (3,543) 63,369 Decrease in prepaid expenses and other current assets -- (13,214) Increase (decrease) in accrued payroll (30,285) 46,133 (Decrease) in payroll and other taxes payable (21,638) (5,514) Increase (decrease) in accounts payable and accrued expenses (69,033) (31,494) (Decrease) increase in accrued officer compensation 16,665 93,291 Increase in Deferred Compensation 12,539 132,446 Increase (decrease) in deferred revenues (20,236) (44,439) Increase (decrease) in long term deferred revenues (8,022) (171,432) --------- --------- Net cash provided by operating activities 43,781 265,684 Cash flows from investing activities Capital Expenditures net of disposition (12,074) Capitalized software development costs (116,086) (178,058) --------- --------- Net cash used in investing activities (128,160) (178,058) Cash flows from financing activities Net repayments under loan and line of credit ageements (6,980) (26,725) Issuance of stock 3,750 Minority Interest 154,466 --------- --------- Net cash provided by (used ) In financing activities 151,236 (26,725) NET INCREASE (DECREASE) IN CASH 66,857 60,901 Cash at beginning of period 89,575 18,342 Cash at end of period $ 156,432 $ 79,243 ========= =========
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Six and three months ended July 31, 1996 compared to six and three months ended July 31, 1995 Revenues for the current six months of fiscal year 1996 decreased $96,897or 14.2% compared with the comparable period of the prior year. Revenues for the three month period July 31, 1996 decreased $68,542 compared with the comparable period of the prior year. The decrease in revenues for the current six and three month period is attributable to the recognition of $150,000 of long term deferred revenue, in the prior three and six month period which did not reoccur in the current period. Without giving effect to long term deferred revenue , Multi Soft would have experience a $53,103 and $81,458 increase for the six and three month period of July, 1996 respectively. Operating expenses as a percent of revenues for the six month period was 100.% compared with 94.8.% for the comparable period of the prior year. Operating expense as a percent revenues for the current three month period was 85.6% compared with 79.7% for the prior year. The increase in operating expenses as a percent of revenues was primarily attributable to the consolidation of NetCast, Inc. the companys new subsidiary which consisted primarily of expenses and no revenue. Operating income (loss) , before other income (expense) of $(130) for the current six month period decreased $35,193 compared with the comparable period of the prior year. For the current three month period operating income (loss), before other income decreased $33,562 . Exluding the 150,000 deferred revenue from July 31, 1995 the company would have experienced an increase of $114,807 and $116,438 for the current six and three month periods respectively. For the current six month period , a net loss of $(4,936) was incurred compared with a net income of $32,442 an decrease of $37,378. For the current three month period a net income of $44,976 compared with net income from the prior period of $80,682 represents a decrease of $35,706. As previously stated, without giving effect to the long term deferred revenue recognized during period ending July 31, 1995 the company would have experienced an increase of $112,622 and $114,294 for the current six and three month periods respectively. Multi Solutions issued 75,000 shares of common stock to certian parties in lieu of indebtedness in the amount of $3,750. Major Customers In the first six months of 1996, IBM accounted for 17.19% of total revenues. In the first six months of 1995, IBM accounted for 47.19% of total revenues. Liquidity and Capital Resources At July 31, 1996, the Company had a negative working capital position of ($1,026,441) and has been experiencing cash flow problems. The cash flow defficiency derives from certain outstanding receivables that remain uncollected coupled with normal fluctuations in sales. 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 ,the company's 55.7% owned subsidiary, Multi Soft Inc. 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 ServerTM 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 ToolkitTM for Windows in the United States, Puerto Rico, the Asian Pacific Region, Europe, the Middle East 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 WCLTM. 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. In 1995 Multi Soft, Inc. entered a joint developement and marketing agreement with Bellcore to develop and Market a Sun Solaris Unix version of its WCL product. The agreement provides that Bellcore pay Multi soft for developing an extension of its WCL product ot the Sun Solaris Unix environment. Also, it provides for a joint marketing agreement in which both companies will share marketing 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 6. Exhibits and Reports on Form 8-K (a) Exhibits 27. Financial Data Schedule (b) Reports on Form 8-K None 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:September 11, 1996 By: /s/Charles J. Lombardo -------------------------- Charles J. Lombardo, Chief Executive Officer, Chief Financial Officer and Treasurer EX-27 2 FDS
5 6-MOS JAN-31-1996 JUL-31-1996 156,432 0 132,903 28,932 0 273,935 22,126 (7,185) 957,696 1,300,376 0 0 0 17,882 9,097,240 957,696 254,066 584,207 0 584,337 0 0 4,806 (4,936) 0 (4,936) 0 0 0 (4,936) .00 .00
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