-----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, WPZx6vorULS1VwlQY/HB9+Y6bcNdrGRTvuF5dj/8A30RQ52m5kpb+K1O4yNkEJf1 D6065avsjYgZs4Bc5K4FJQ== 0000891554-95-000220.txt : 19951219 0000891554-95-000220.hdr.sgml : 19951219 ACCESSION NUMBER: 0000891554-95-000220 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951031 FILED AS OF DATE: 19951218 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: 95602491 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, 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 October 31, 1995 - ----------------------- ------------------------------- Common Stock, par value 15,806,698 $.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, 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 nine and three months ended October 31, 1995 are not necessarily indicative of the results for the entire fiscal year. MULTI SOLUTIONS, INC. BALANCE SHEETS
October 31, January 31, 1995 1995 (Unaudited) ----------- ----------- ASSETS CURRENT ASSETS Cash $ 64,823 $ 18,342 Accounts Receivable (net of allowance of $23,169 and $37,063 respectively) 32,664 95,791 Prepaid expenses and other current assets 37,132 17,310 ----------- ----------- 134,619 113,101 FURNITURE AND EQUIPMENT Research and Development Equipment 368,381 259,907 Office furniture and other equipment 111,550 10,052 ----------- ----------- 479,931 269,959 Less: Accumulated Depreciation (475,652) (263,693) ----------- ----------- 4,279 6,266 OTHER ASSETS Capitalized software development costs 1,880,604 1,613,516 Less accumulated amortization (1,137,062) (886,605) ----------- ----------- 743,542 726,911 ----------- ----------- $ 882,440 $ 864,620 =========== ===========
MULTI SOLUTIONS, INC BALANCE SHEETS
October 31, January 31, 1995 1995 (Unaudited) ----------- ----------- LIABILITIES AND STOCKHOLDERS' DEFICIENCY CURRENT LIABILITIES Loan payable to bank $ 44,404 $ 53,729 Accrued payroll 86,080 31,190 Payroll and other taxes payable 80,390 78,607 Accounts Payable 385,901 414,303 Deferred compensation due officer/shareholders 570,382 371,713 Accrued officer compensation 288,078 152,246 Deferred Revenues 182,962 289,391 Loans from Officers 1,400 22,000 ----------- ----------- 1,639,597 1,413,179 DEFERRED REVENUES - net of current portion 18,737 200,885 ----------- ----------- STOCKHOLDERS' DEFICIENCY Common stock, authorized 30,000,000 shares $.001 par value, issued and outstanding 9,983,979 respectively 15,807 15,807 Additional paid-in capital, net of deferred 8,420,537 8,420,537 compensation $357 and $2,150 respectively (9,212,238) (9,185,789) ----------- ----------- Accumulated deficit (775,894) (749,445) ----------- ----------- $ 882,440 $ 864,619 =========== ===========
MULTI SOLUTIONS, INC STATEMENTS OF OPERATIONS (Unaudited)
Nine Months Ended Three Months Ended October 31, October 31, 1995 1994 1995 1994 ----------- ----------- ----------- ----------- REVENUES License fees $ 505,868 $ 151,492 $ 117,722 $ 85,814 Maintenance fees 414,409 389,384 133,646 318,604 Consulting and Other fees 40,507 36,008 28,312 13,961 ----------- ----------- ----------- ----------- Total revenues 960,784 576,884 279,680 418,379 EXPENSES Software development and technical support 236,764 349,567 83,373 81,338 Selling and administrative 746,548 492,738 253,898 195,360 ----------- ----------- ----------- ----------- Total expenses 983,312 842,305 337,271 276,698 ----------- ----------- ----------- ----------- Income (Loss) from operations (22,528) (265,421) (57,591) 141,681 OTHER (EXPENSE) Interest Expense (3,921) (3,994) (1,300) (1,465) Total other (expense) (3,921) (3,994) (1,300) (1,465) NET INCOME (LOSS) $ (26,449) $ (269,415) $ (58,891) $ 140,216 =========== =========== =========== =========== Weighted average shares outstanding 9,189,000 8,882,905 9,189,000 9,502,035 =========== =========== =========== =========== Income (Loss) per share Nil $ (0.04) Nil $ 0.01 =========== =========== =========== ===========
MULTI SOLUTIONS, INC. STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended October 31, 1995 1994 --------- --------- Cash flows from operating activities Net Income (loss) $ (26,449) $(269,415) Adjustments to reconcile net Income (loss) to net cash provided (used) by operating activities Depreciation and amortization 252,443 180,872 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 63,127 121,601 Decrease in prepaid expenses and other current assets (19,822) (672) Increase (decrease) in accrued payroll 54,890 32,477 (Decrease) in payroll and other taxes payable 1,783 (154,816) Increase (decrease) in accounts payable and accrued expenses (28,402) 94,992 (Decrease) increase in accrued officer compensation 135,832 84,453 Increase in Deferred Compensation 198,669 180,092 Increase (decrease) in deferred revenues (106,429) 47,252 Increase (decrease) in long term deferred revenues (182,148) -- --------- --------- Net cash provided (used) by operating activities 343,494 316,836 Cash flows from investing activities Loan to officers 39,500 Capitalized software development costs (267,088) (223,571) --------- --------- Net cash used in investing activities (267,088) (184,071) Cash flows from financing activities Net repayments under loan and line of credit ageements (9,325) (265,165) Payment of line of credit (20,600) Amortization of Stock Grants Issuance of Common Stock -- 98,946 --------- --------- Net cash provided by (used) In financing activities (29,925) (166,219) NET INCREASE (DECREASE) IN CASH 46,481 (33,454) Cash at beginning of year 18,342 33,454 Cash at end of year $ 64,823 $ -- ========= =========
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations nine months Ended October 31, 1995 Compared to nine months Ended October 31, 1994 and three months ended October 31, 1995 compared to three months ended October, 31 1994 Revenues for the current nine months of fiscal year 1995 increased $383,900 or 66.5% compared with the comparable period of the prior year. Revenues for the three month period decreased $138,699 compared with the comparable period of the prior year. The increase in revenues for the nine month period 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 nine month period was 100.2% compared with 146% for the comparable period of the prior year. Operating expense as a percent of revenues for the current three month period was 121% compared with 66% for the prior year. The decrease in operating expenses, for the nine month period, 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 $22,528 for the current nine month period decreased $242,893 compared with the comparable period of the prior year. Operating Loss, before other income (expense) $57,591 for the current three month increased $199,272 compared with the operating income of 141,681 for the comparable period of the prior year. Other income (expense) for the current nine month period was ($3,921) as compared with ($3,994) for the comparable period of the prior year. For the current nine month period, net loss of $26,449 or ($.00) cents per share was incurred compared with a net loss of $269,415 or ($.04) cents per share a decrease of $242,966. For the current three month period, a net loss of $58,891 or .00 cents per share was incurred compared with net income of $140,216 in the comparable period for the prior year. Major Customers In the first nine months of 1995, IBM accounted for 47.19% of total revenues. In the first nine months of 1994, IBM accounted for 13.9% of revenues. Liquidity and Capital Resources At October 31, 1995 the Company had a negative working capital position of $1,504,978 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 SOFT, INC. Dated: December 13, 1995 By: /s/ Charles J. Lombardo ____________________________________ Charles J. Lombardo, Chief Executive Officer, Chief Financial Officer and Treasurer EX-27 2 FDS
5 9-MOS JAN-31-1996 OCT-31-1995 64,630 0 55,833 23,169 0 134,426 479,931 (475,652) 882,440 1,639,597 0 15,807 0 0 775,894 882,440 505,568 960,784 0 0 3,921 0 3,921 (26,449) 0 (26,449) 0 0 0 (26,449) 0 0
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