-----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, L3hloS/+DICS6zUmuImwVEzwR65BBSSCwa0x20woMNUW+3KPMFMtJ/qJ12m3ClMT U5x5YFFsC5IKA7/AzTrvjA== 0000891554-95-000198.txt : 19951120 0000891554-95-000198.hdr.sgml : 19951120 ACCESSION NUMBER: 0000891554-95-000198 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950731 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: 95594038 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, 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 July 31, 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 six and three months ended July 31, 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 six and three months ended July 31, 1995 are not necessarily indicative of the results for the entire fiscal year. Multi Solutions, Inc and Subsidiary CONSOLIDATED BALANCE SHEETS July 31, January 31, 1995 1995 (Unaudited) ----------- ----------- ASSETS CURRENT ASSETS Cash $ 79,243 $ 18,342 Accounts receivable( net of allowance of $32,880 and $37,063 respectively) 32,422 95,791 Prepaid expenses and other current assets 30,524 17,310 ----------- ----------- 142,189 131,443 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 (475,243) (473,666) ----------- ----------- 4,689 6,266 OTHER ASSETS Capitalized software and development costs 1,791,574 1,613,516 Less accumulated amortization (1,049,124) (886,605) ----------- ----------- 742,450 726,911 $ 889,328 $ 864,620 =========== =========== Multi Solutions, Inc. and Subsidiary CONSOLIDATED BALANCE SHEETS July 31, January 31, 1995 1995 LIABILITIES AND STOCKHOLDERS' DEFICIENCY (Unaudited) ----------- ----------- CURRENT LIABILITIES Notes payable $ 47,604 $ 53,729 Accrued payroll 77,323 31,190 Payroll and other taxes payable 73,093 78,607 Accounts payable and accrued expenses 382,810 414,303 Deferred Compensation due officers/shareholders 504,159 371,713 Accrued Officer Compensation 245,537 152,246 Deferred revenues 244,952 289,391 Loans from officers 1,400 22,000 ----------- ----------- 1,576,878 1,413,179 DEFERRED REVENUES-Net of Current Portion 29,453 200,886 STOCKHOLDERS' DEFICIENCY Common stock, authorized 40,000,000 shares $ .001 Par Value Issued and outstanding: 15,806,898 (1995) and 15,257,198 respectively 15,807 15,807 Additional paid-in capital 8,420,537 8,420,537 Accumulated deficit (9,153,347) (9,185,789) ----------- ----------- (717,003) (749,445) $ 889,328 $ 864,620 =========== =========== Multi Solutions, Inc. and Subsidiary CONSOLIDATED STATEMENTS OF OPERATIONS
Six Months Ended Three Months Ended July 31, July 31, 1995 1994 1995 1994 ------------ ------------ ------------ ------------ Revenues License fees $ 388,146 $ 44,250 $ 245,088 $ 16,790 Maintenance Revenue 280,763 70,780 151,906 57,934 Consulting and other fees 12,195 170,614 9,906 16,797 ------------ ------------ ------------ ------------ Total revenues 681,104 285,644 406,900 91,521 Operating expenses Software development and technical support 153,391 268,229 78,921 173,486 Selling and administrative expenses 492,650 308,114 245,659 105,946 ------------ ------------ ------------ ------------ Total expenses 646,041 576,343 324,580 279,432 Income (Loss) from operations 35,063 (290,699) 82,320 (187,911) Other Income (Expenses) Interest expense (2,621) (11,196) (1,638) (4,932) ------------ ------------ ------------ ------------ NET INCOME (LOSS) $ 32,442 $ (301,895) $ 80,682 $ (192,843) ============ ============ ============ ============ Weighted average number of shares outstanding 15,846,240 15,257,198 15,846,240 15,257,198 ============ ============ ============ ============ Loss per share NIL $ (0.02) NIL $ (0.01) ============ ============ ============ ============
MULTI -SOFT, INC. STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended July 31, 1995 1994 --------- --------- Cash flows from operating activities Net Income (loss) $ 32,442 $(301,895) Adjustments to reconcile net Income (loss) to net cash provided (used) by operating activities Depreciation and amortization 164,096 121,355 Common stock issued as compensation to employees -- Discount to investors -- Changes in assets and liabilities Due to / from Multi Solutions -- (Increase) decrease in accounts receivable 63,369 259,349 Decrease in prepaid expenses and other current assets (13,214) (6,106) Increase (decrease) in accrued payroll 46,133 (7,811) (Decrease) in payroll and other taxes payable (5,514) -- Increase (decrease) in accounts payable and accrued expenses (31,494) (75,135) (Decrease) increase in accrued officer compensation 93,291 -- Increase in Deferred Compensation 132,446 -- Increase (decrease) in deferred revenues (44,439) 88,118 Increase (decrease) in long term deferred revenues (171,432) -- --------- --------- Net cash provided by operating activities 265,684 77,875 Cash flows from investing activities Capital Expenditures net of disposition (1,339) Capitalized software development costs (178,058) (156,340) --------- --------- Net cash used in investing activities (178,058) (157,679) Cash flows from financing activities Net repayments under loan and line of credit ageements (26,725) 46,350 --------- --------- Net cash provided by (used ) In financing activities (26,725) 46,350 NET INCREASE (DECREASE) IN CASH 60,901 (33,454) Cash at beginning of year 18,342 33,454 Cash at end of year $ 79,243 $ -- ========= =========
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Six months Ended July 31, 1995 Compared to six monhts Ended July 31, 1994 and three months ended July 31, 1995 compared to three months ended July, 31 1994 Revenues for the current six months of fiscal year 1995 increased $395,460 or 138.4% compared with the comparable period of the prior year. Revenues for the three month period increased $315,379 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. The current second quarter also reflects the recognition of $150,000 of the prior years Long Term Deferred Revenue. Operating expenses as a percent of revenues for the six month period was 94.8% compared with 201.7% for the comparable period of the prior year. Operating expense as a percent of revenues for the current three month period was 79.7%compared with 305.3% for 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. The operating income, before other income (expense) of $35,063 for the current six month period increased $326,762 compared with the comparable period of the prior year. Operating Income, before other income (expense) of $82,320 for the current three month increased $270,231compared with comparable period of the prior year. Other income (expense) for the current six month period was ($2,621) as compared with ($11,196) for the comparable period of the prior year. The decrease is attributable to the special discount granted to investors in the prior year which did not occur in the current period. For the current six month period , net income of $32,442 or ($.00) cents per share was incurred compared with a net loss of ($301,895) or ($.02) cents per share an increase of $334,337. For the current three month period, a net income of $80,682 or $.00 cents per share was incurred compared with a loss of ($192,843) in the comparable period for the prior year an increase of $273,525. Major Customers In the first six months of 1995, IBM accounted for 47.19% of total revenues. In the first six months of 1994, IBM accounted for 10.7% and Exxon accounted for 11.3%. Liquidity and Capital Resources At July 31, 1995, the Company had a negative working capital position of ($1,434,689); 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 --
5 6-MOS JAN-31-1996 JUL-31-1995 79,243 0 65,302 32,880 0 142,189 479,932 475,243 889,328 1,576,878 0 15,807 0 0 (732,810) 889,328 388,146 681,104 0 153,391 0 0 2,621 32,442 0 32,442 0 0 0 32,442 0.00 0.00
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