-----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, JanCL8KGdXCP/oyP590v+m2L2b4YlfLooWV+UuUyUIkCSx5/ofPl4rwAvCJB9ddj nEZlv3514GueHg300EW2rA== 0000891554-96-000954.txt : 19961216 0000891554-96-000954.hdr.sgml : 19961216 ACCESSION NUMBER: 0000891554-96-000954 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961031 FILED AS OF DATE: 19961213 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: 96680374 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, 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 October 31, 1996 Common Stock, par value 17,881,898 $.001 per share PART I. FINANCIAL INFORMATION Item 1. Financial Statements The accompanying consolidated 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 months ended October 31, 1996. The financial statements are presented on a consolidated basis, with Multi Soft, Inc a 55.7% owned subsidiary and NetCast ,Inc a 77% owned subsidiary. 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 nine months ended October 31, 1996 are not necessarily indicative of the results for the entire fiscal year. MULTI SOLUTIONS, INC. CONSOLIDATED BALANCE SHEETS October 31, January 31, 1996 1996 (Unaudited) ----------- ----------- ASSETS CURRENT ASSETS Cash $ 31,988 $ 89,575 Accounts receivable (net of allowance of $28,932 and $37,063 respectively) 85,723 100,428 Prepaid expenses and other current assets 17,032 13,532 ----------- ----------- 134,743 203,535 FURNITURE AND EQUIPMENT Research and development equipment 11,241 259,907 Office furniture and other equipment 16,703 10,053 ----------- ----------- 27,944 269,960 Less: Accumulated Depreciation (7,736) (266,066) ----------- ----------- 20,208 3,894 OTHER ASSETS Capitalized software development costs 1,762,943 1,980,130 Less accumulated amortization (1,023,019) (1,256,153) ----------- ----------- 739,924 723,977 Mailing Lists, Trademarks 200,000 $ 1,094,875 $ 931,406 =========== =========== MULTI SOLUTIONS, INC. CONSOLIDATED BALANCE SHEETS October 31, January 31, 1996 1996 (Unaudited) ----------- ------------ LIABILITIES AND STOCKHOLDERS' DEFICIENCY CURRENT LIABILITIES Loan payable to bank $ 29,259 $ 41,099 Accrued payroll -- 30,285 Payroll and other taxes payable 50,401 74,993 Accounts Payable 188,885 216,554 Deferred compensation due officer/shareholders 655,355 636,605 Accrued officer compensation 134,962 110,016 Deferred Revenues 204,039 309,792 ----------- ----------- 1,262,901 1,419,344 DEFERRED REVENUES - net of current portion 8,022 ----------- ----------- STOCKHOLDERS' DEFICIENCY Common stock,$.001 par value authorized 40,000,000 issued and outstanding: 17,881,898 and 17,806,898 respectivley 17,882 17,807 Additional paid-in capital, 8,582,212 8,578,537 Minority interest 350,954 -- Accumulated deficit (9,119,074) (9,092,304) ----------- ----------- (168,026) (495,960) $ 1,094,875 $ 931,406 =========== =========== = MULTI SOLUTIONS, INC CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Nine Months Ended Three Months Ended October 31, October 31, 1996 1995 1996 1995 ------------ ------------ ------------ ------------ REVENUES License fees $ 328,693 $ 505,868 $ 74,627 $ 117,722 Maintenance fees 487,491 414,409 175,107 133,646 Consulting and other fees 48,204 40,507 30,446 28,312 ------------ ------------ ------------ ------------ Total revenues 864,388 960,784 280,180 279,680 EXPENSES Software development and technical support 256,866 236,764 85,622 83,373 Selling and administrative 627,173 746,548 214,079 253,898 ------------ ------------ ------------ ------------ Total expenses 884,039 983,312 299,701 337,271 ------------ ------------ ------------ ------------ Loss from operations (19,651) (22,528) (19,521) (57,591) OTHER EXPENSE Interest Expense (7,119) (3,921) (2,313) (1,300) Total other expense (7,119) (3,921) (2,313) (1,300) NET LOSS $ (26,770) $ (26,449) $ (21,834) $ (58,891) ============ ============ ============ ============ Weighted average shares outstanding 17,844,398 15,846,240 17,844,398 15,846,240 ============ ============ ============ ============ Loss per share NIL NIL NIL NIL ============ ============ ============ ============
MULTI -SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended October, 31 1996 1995 --------- --------- Cash flows from operating activities Net $ (26,770) $ (26,449) Adjustments to reconcile net Income (loss) to net cash provided by operating activities Depreciation and amortization 258,443 252,443 Changes in assets and liabilities (Increase) decrease in accounts receivable 14,705 63,127 Increase in prepaid expenses and other current assets (3,500) (19,822) Increase (decrease) in accrued payroll (30,285) 54,890 (Decrease) in payroll and other taxes payable (24,592) 1,783 Increase (decrease) in accounts payable and accrued expenses (27,669) -28402 (Decrease) increase in accrued officer compensation 24,946 135,832 Increase in Deferred Compensation 18,750 198,669 Increase (decrease) in deferred revenues (105,753) (106,429) Increase (decrease) in long term deferred revenues (8,022) (182,148) --------- --------- Net cash provided by operating activities 90,253 343,494 Cash flows from investing activities Capitalized expenditures net of disposition (220,304) Capitalized software development costs (270,400) (267,088) --------- --------- Net cash used in investing activities (490,704) (267,088) Cash flows from financing activities Net repayments under loan and line of credit ageements (11,840) (9,325) Payment of line of credit (20,600) Minority Interest 350,954 Issuance of Common Stock 3,750 --------- --------- Net cash provided by (used ) In financing activities 342,864 (29,925) NET INCREASE (DECREASE) IN CASH (57,587) 46,481 Cash at beginning of year 89,575 18,342 Cash at end of year $ 31,988 $ 64,823 ========= =========
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Nine and three months ended October 31, 1996 compared to nine and three months ended October 31, 1995 Revenues of $864,388 for the current nine months of fiscal year 1996 decreased $96,396 or 10.0% compared with the comparable period of the prior year. Revenues of $280,180 for the three month period ending October 31, 1996 increased $500 compared with the comparable period of the prior year. The decrease in revenues for the current nine month period is attributable to the recognition of $150,000 of long term deferred revenue, in the prior nine month period which did not reoccur in the current period. Without giving effect to long term deferred revenue , Multi Soft,Inc. would have experience a $53,604 increase in revenues for the nine month period ending October 31, 1996. Operating expenses as a percent of revenues for the nine month period was 102% compared with 102% for the comparable nine month period. Operating expense as a percent of revenues for the current three month period was 107% compared with 121% for the prior year. The decrease in operating expenses as a percent of revenues over the current three months was primarily attributable to a curtailment of legal and outside consulting fees. Operating loss , before other income expense of $19,651 for the current nine month period decreased $2,877 compared with the comparable period of the prior year. For the current three month period operating loss, before other expense decreased $38,070. Excluding the $150,000 deferred revenue from the prior nine month period, the company would have experienced an increase of $152,877 for the current nine month periods ending October 31, 1996. For the current nine month period , a net loss of $26,770 was incurred compared with a net loss of $26,449 a increase of $321. For the current three month period a net loss of $21,834 compared with net loss from the prior period of $58,891 representing a decrease of $37,057. Without giving effect to the long term deferred revenue recognized during period October 31, 1995 the Company would have experienced an increase of $149,679 for the current nine month period.. Multi Solutions issued 75,000 shares of common stock to certain parties in lieu of indebtedness in the amount of $3,750. Major Customers In the first nine months of 1996, IBM accounted for 29.5% of total revenues. In the first nine months of 1995, IBM accounted for 49.17% of total revenues. Liquidity and Capital Resources At October 31, 1996, the Company had a negative working capital position of $1,128,158 and has been experiencing cash flow problems. The cash flow deficiency derives from certain outstanding receivable 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 maintenance of $25,000 per month plus royalties. In 1995 Multi Soft, Inc. entered a joint development 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 for 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: December 11 , 1996 By:__________________________________________ Charles J. Lombardo, Chief Executive Officer, Chief Financial Officer and Treasurer EX-27 2 FDS
5 9-MOS JAN-31-1996 OCT-31-1996 31,988 0 85,723 28,932 0 134,743 20,208 7,736 1,094,875 1,262,901 0 0 0 17,882 (168,026) 1,094,875 328,693 864,388 0 884,039 7,119 0 7,119 (26,770) 0 (26,770) 0 0 0 (26,770) 0 0
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