-----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, JaQdlqDd0R4FkD0VXc2CI+W4JSmbS+6iggzp/2/VPpmZ+k5IKtlSF2kgc1/MdXX/ St8by/vsiknBdWg4Hb1ytg== 0000891554-95-000196.txt : 19951120 0000891554-95-000196.hdr.sgml : 19951120 ACCESSION NUMBER: 0000891554-95-000196 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19941031 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: 95594032 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 October 31, 1994 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 October 31, 1994 - ------------------------------------ ------------------------------------ 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 nine and three months ended October 31, 1994. 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 nine and three months ended October 31, 1994 are not necessarily indicative of the results for the entire fiscal year. Multi Solutions, Inc and Subsidiary CONSOLIDATED BALANCE SHEETS October 31, January 31, 1994 1994 (Unaudited) ----------- ----------- ASSETS CURRENT ASSETS Cash $ -- $ 33,454 Accounts receivable( net of allowance of $32,880 and $25,269 respectively) 131,622 253,223 Prepaid expenses and other current assets 13,500 12,828 ----------- ----------- 145,122 299,505 FURNITURE AND EQUIPMENT, AT COST Research and development equipment 368,382 368,382 Office furniture and other 111,550 173,625 ----------- ----------- 479,932 542,007 Less accumulated depreciation and amortization (471,173) (527,477) ----------- ----------- 8,759 14,530 OTHER ASSETS Capitalized software and development costs 2,549,277 2,325,706 Less accumulated amortization (1,800,056) (1,624,955) ----------- ----------- 749,221 700,751 $ 903,102 $ 1,014,786 =========== =========== Multi Solutions, Inc. and Subsidiary CONSOLIDATED BALANCE SHEETS October 31, January 31, 1994 1994 (Unaudited) ----------- ----------- LIABILITIES AND STOCKHOLDERS' DEFICIENCY CURRENT LIABILITIES Notes payable $ 56,250 $ 321,415 Accrued payroll 36,556 30,977 Payroll and other taxes payable 80,000 118,034 Accounts payable and accrued expenses 445,699 371,260 Deferred Compensation due officers/shareholders 340,749 274,942 Accrued Officer Compensation 146,323 16,916 Deferred revenues 340,087 292,835 Loans from officers 39,500 -- ----------- ----------- 1,485,164 1,426,379 DEFERRED REVENUES - Net of Current Portion 243,750 243,750 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 15,257 Additional paid-in capital 8,420,537 8,322,141 Accumulated deficit (9,262,156) (8,992,741) ----------- ----------- (825,812) (655,343) $ 903,102 $ 1,014,786 =========== =========== Multi Solutions, Inc. and Subsidiary CONSOLIDATED STATEMENTS OF OPERATIONS
Nine Months Ended Three Months Ended October 31, October 31, 1994 1993 1994 1993 ------------ ------------ ------------ ------------ Revenues License fees $ 151,492 $ 649,354 $ 85,814 $ 457,754 Maintenance Revenue 389,384 360,648 318,604 142,871 Consulting and other fees 36,008 99,157 13,961 63,700 ------------ ------------ ------------ ------------ Total revenues 576,884 1,109,159 418,379 664,325 Operating expenses Software development and technical support 349,567 514,355 81,338 173,391 Selling and administrative expenses 492,738 622,062 195,360 205,883 ------------ ------------ ------------ ------------ Total expenses 842,305 1,136,417 276,698 379,274 Loss from operations (265,421) (27,258) 141,681 285,051 Other Income (Expenses) Interest income Interest expense (3,994) (36,392) (1,465) (15,800) ------------ ------------ ------------ ------------ (3,994) (36,392) (1,465) (15,800) NET LOSS $ (269,415) $ (63,650) $ 140,216 $ 269,251 ============ ============ ============ ============ Weighted average number of shares outstanding 15,196,415 15,321,000 15,196,415 15,582,198 ============ ============ ============ ============ Loss per share $ (0.02) $ (0.01) $ -- $ (0.02) ============ ============ ============ ============
Multi Solutions, Inc. and Subsidiary CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended October 31, 1994 1993 --------- --------- Cash flows from operating activities Net loss $(269,415) $ (63,650) Adjustments to reconcile net loss to net cash provided (used) by operating activities Depreciation and amortization 180,872 321,817 Common stock issued as compensation to officers -- 58,042 Discount to investors -- -- Changes in assets and liabilities Decrease (increase) in accounts receivable 121,601 (370,047) (Increase) decrease in prepaid expenses and other current assets (672) 3 Increase in accrued payroll 32,477 (129,520) (Decrease) in payroll and other taxes payable (154,816) -- Increase (decrease) in accounts payable and accrued expenses 94,992 (5,470) Increase (decrease) in accrued officer compensat 84,453 -- Increase in deferred compensation 180,092 -- (Decrease) increase in deferred revenues 47,252 (1,000) Increase (decrease) in long term deferred revenues -- -- --------- --------- Net cash provided by operating activities 316,836 (189,825) Cash flows from investing activities Capitalized software development cost (223,571) (125,000) Loan to officer 39,500 (10,500) Capital Expenditures -- 7,653 --------- --------- Net cash used in investing activities (184,071) (127,847) Cash flows from financing activities Net (repayments) borrowings under loan and line of credit ageements (265,165) (13,500) Issuance of Convertable notes in private placement 268,060 Investment in subsidiary by minority shareholders 27,500 Issuance of Stock 98,946 --------- --------- Net cash provided by (used in) financing activities (166,219) 282,060 Net (decrease) in cash (33,454) (35,612) Cash at beginning of year 33,454 45,365 Cash at end of year $ -- $ 9,753 ========= =========
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Nine months Ended October 31, 1994 Compared to Nine monhts Ended October 31, 1993 and three months ended October 31, 1994 compared to three months ended October 31, 1993 Revenues for the current nine months of fiscal year 1994 decreased $532,275 or 47.9% compared with the comparable period of the prior year. Revenues for the three month period decreased $245,946 compared with the comparable period of the prior year. The decrease revenues is attributable to decreased license and maintenance fees. Operating expenses as a percent of revenues for the nine month period was 146% compared with 102.4% for the comparable period of the prior year. Operating expense as a percent of revenues for the current three month period was 66.1%compared with 57.1% for the prior year. The increase in operating expenses as a percent of revenues was primarily attributable to the lower revenue volume. The operating loss, before other income (expense) of $(265,421) for the current nine month period decreased $238,163 compared with the comparable period of the prior year. Operating Income, before other income (expense) $141,681 for the current three month decreased $143,370, compared with comparable period of the prior year. Other income (expense) for the current nine month period was ($3,994) as compared with ($36,392) for the comparable period of the prior year. The decrease is attributable to tax penalties attributed in the prior year not incurred in the current year. For the current nine month period , net loss of $(269,415) or ($.02) cents per share was incurred compared with a net loss of ($63,500) in the prior period or ($.01) cents per share an increase of $205,915. For the current three month period, a net income of $140,216 or .00 cents per share was incurred compared with a income of $269,251 in the comparable period for the prior year an decrease of $129,035. Major Customers In the first nine months of 1994 , IBM accounted for 13.2% of total revenues. In the first nine months of 1993, IBM accounted for 10.7% and Exxon accounted for 11.3%. Liquidity and Capital Resources At October 31, 1994, the Company had a negative working capital position of ($1,340,042); 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 -----END PRIVACY-ENHANCED MESSAGE-----