-----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, SVrn32Qbvc/wb99CArZeeglFHsVJSbjJNhXNKEcVW8DcgiGJ5HHDggkoXfFBMsJq TLKtS28FRDMjN/2L8Ybz9Q== 0001012709-99-000482.txt : 19990716 0001012709-99-000482.hdr.sgml : 19990716 ACCESSION NUMBER: 0001012709-99-000482 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990430 FILED AS OF DATE: 19990715 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: SEC FILE NUMBER: 000-12162 FILM NUMBER: 99665276 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 MULTI SOLUTIONS, INC - 10-QSB 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 April 30, 1999 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: (732) 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 April 30, 1999 - ----------------------- ----------------------------- Common Stock, par value 18,813,398 $.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 three months ended April 30, 1999. Moreover, these consolidated 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 consolidated financial statements at, and for the fiscal year ended January 31, 1999. The results for the three months ended April 30, 1999 are not necessarily indicative of the results for the entire fiscal year. Multi Solutions, Inc. ( the "company") owns 52% of Multi Soft, Inc's common stock. The companies financial statements are consolidated with Multi soft and its other subsidiary, NetCast, Inc. which is currently in the development stage. MULTI SOLUTIONS,INC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS April 30 ,1999 and January 1999
1999 1999 ----------- ----------- ASSETS CURRENT ASSETS Cash $ 20,276 $ 18,420 Accounts Receivable (net of allowance of $43,783 and $43,783 respectively) 124,705 132,316 Prepaid expenses and other current assets 9,676 13,385 ----------- ----------- 154,657 164,121 FURNITURE AND EQUIPMENT Research and Development Equipment & Software 63,526 63,526 Office furniture and other equipment 20,474 20,474 ----------- ----------- 84,000 84,000 Less: Accumulated Depreciation (17,579) (16,780) ----------- ----------- 66,421 67,220 Organizational costs 2,415 2,415 Less: Accumulated Amorization (1,135) (968) ----------- ----------- 1,280 1,447 OTHER ASSETS Capitalized software development costs 1,344,122 1,607,505 Less accumulated amortization (542,398) (809,915) ----------- ----------- 801,724 797,590 Intangibles 200 200 ----------- ----------- $ 1,024,282 $ 1,030,578 =========== ===========
MULTI SOLUTIONS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS April 30, 1999 and January 31, 1999
LIABILITIES AND STOCKHOLDERS' 1999 1999 DEFICIENCY ----------- ----------- CURRENT LIABILITIES Loan payable to bank $ -- $ 796 Note Payable 6,565 6,565 Accrued payroll 19,265 -- Payroll and other taxes payable 28,096 19,480 Accounts Payable 181,430 196,416 Accrued officer compensation 231,390 198,057 Deferred Revenues 160,327 187,648 ----------- ----------- 627,073 608,962 Deferred compensation due officer /shareholders 586,605 586,605 STOCKHOLDERS' DEFICIENCY Common stock, authorized 40,000,000 shares $.001 par value, issued and outstanding 18,814 18,814 18,813,398 (1999) and 18,813,398 (1999) Additional paid-in capital, 8,663,240 8,661,197 Accumulated deficit (8,871,450) (8,845,000) ----------- ----------- (189,396) (164,989) $ 1,024,282 $ 1,030,578 =========== ===========
MULTI SOLUTIONS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Period Ended April 30, 1999 and April 30, 1998 1999 1998 ------------ ------------ REVENUES License fees $ 59,724 $ 77,112 Maintenance fees 113,537 152,264 Consulting and Other fees 15,518 -- ------------ ------------ Total revenues 188,779 229,376 EXPENSES Software development and technical support 57,192 46,155 Selling and administrative 164,598 160,336 ------------ ------------ Total expenses 221,790 206,491 ------------ ------------ Income (loss) from operations (33,011) 22,885 OTHER INCOME (EXPENSE) Other Revenues -- -- Interest Expense -- 620 ------------ ------------ Total other income -- 620 Net Income (Loss) $ (33,011) $ 22,265 ============ ============ Weighted average shares outstanding 18,813,398 18,266,898 ============ ============ Income (Loss) per share a a ============ ============ (a) less then $.01 per share MULTI SOLUTIONS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Period ended April 30, 1999 and April 1998
1999 1998 ----------- ----------- Cash flows from operating activities Net Income $ (33,011) $ 22,265 Adjustments to reconcile net income (loss) to net cash provided by operating activities Depreciation and amortization 57,596 47,785 Common stock issued to Solutions Changes in assets and liabilities Accounts receivable 7,611 (73,561) Prepaid expenses and other current assets 3,709 (17,000) Accrued payroll 19,265 51,354 Payroll and other taxes payable 8,616 (14,952) Note Payable -- (1,790) Accounts payable and accrued expenses (14,986) 18,186 Accrued officer compensation 33,333 49,999 Deferred revenues (27,321) (38,355) ----------- ----------- Net cash provided by operating activities 54,812 43,931 Cash flows from investing activities Capital expenditures Capitalized software development costs (60,928) (73,267) ----------- ----------- Net cash used in investing activities (60,928) (73,267) Cash flows from financing activities Net repayments under loan and line of credit ageements (796) (2,728) Losses in excess of investment in subsidiaries 6,725 2,207 Amorization of Stock Grants 2,043 333 Issuance of capital stock -- -- ----------- ----------- Net cash provided by financing activities 7,972 (188) ----------- ----------- NET INCREASE (DECREASE) IN CASH 1,856 (29,524) Cash at beginning of year 18,420 29,524 ----------- ----------- Cash at end of year $ 20,276 $ -- =========== ===========
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND ---------------------------------------------------------------------- RESULTS OF OPERATIONS --------------------- Results of Operations - --------------------- Three months ended April 30, 1999 compared to three months ended April 30, 1998 - ------------------------------------------------------------------------------- Revenues for the current three months of fiscal year 1999 decreased $40,597 or 17.7% compared with the comparable period of the prior year. The decrease in revenues for the three month period is primarily attributable to a decrease in maintenance revenues of $56,115 or 24.5%. This is attributable to cancellations of maintenance agreements with customers of Multi Soft whom have been paying for monthly maintenance and support. The decrease is partially offset by an increase in Consulting and Other Fees. Operating expenses as a percent of revenues for the three month period was 117.5% compared with 90.0% for the comparable period of the prior year. The higher level of expenses in the current three month period, in addition to the lower level of revenues for the current three month period accounts for the percentage increase. The increase in the three month period is a result of a increase in Selling and Administrative expenses of 4,262 or 2.7%. Also, software development increased for the current three month period in the amount of $11,037 or 24%. The increase is attributed amortization of capital costs that were not amortized in the prior period but were amortized in the current period. The operating income loss, before other income expense of $(30,011) for the current three month period decreased $55,896 compared with the comparable period of the prior year. For the current three month period , a net loss of $(30,011) was incurred, compared with a net income of $22,265 of a decrease of $55,276. Major Customers - --------------- In the first three months of 1999, IBM accounted for 11% of total revenues. In the first three months of 1998, IBM accounted for 20% of total revenues. Liquidity and Capital Resources - ------------------------------- At April 30, 1999, the Company had a negative working capital position of ($472,416) 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 52.% 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. During the summer Multi Soft plans to introduce a new product which extends its present product line into the internet. 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. As of November 1996, the contract with IBM was extend for two more years and IBM is paying Multi Soft monthly maintenance and 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 Multi Soft 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. Year 2000 - --------- Many companies systems experience problems handling dates beyond the year 1999. The companies products are not directly impacted by this problem. In particular, year 2000 issues are transparent to WCL. WCL simply transports data between the 3270/5250 presentation space and the client application. WCL does no formatting of any data, including dates. This is handled by the client developement tool such as VB,PB and VC++. Therefore, Year 2000 issues must be addressed by these development tools, not WCL. In addition, The Company's INFRONT and QuickFRONT product have built in support for theYear 2000. Any date functions that use 2 positions for the year, the SETUPSL command can be used to handle the year 2000. Effect of Inflation - ------------------- Management believes that inflation has not had a material effect on its operations for the periods presented. Cautionary Statement - -------------------- This Form 10-KSB contains certain forward-looking statements regarding , among other things, the anticipated financial and operating results of the company. For this purpose, forward-looking statements are any statements contained herein that are not statements of historical fact and include , but are not limited to, those preceded by or that include the words, "believes," "expects," "anticipated," or similar expressions. In connection with the safe harbor provisions of the Private Securities Litigation Reform act of 1995, the Company is including this cautionary statement identifying important factors that could cause the company's actual results to differ materially from those projected in forward looking statements made by, or on behalf of, the company. These factors, many of which are beyond the control of the company and include the Company's ability to, (I) continue as a going concern, (ii) continue to receive royalties from its existing licensing and consulting arrangements(iii) develop additional marketable software and technology, (iv) compete with larger, better capitalized competitors, and reverse ongoing liquidity and cash flow problems. 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. Date June 22, 1999 By:______________________________ Charles J. Lombardo, Chief Executive Officer, Chief Financial Officer and Treasurer EX-27 2 FINANCIAL DATA SCHEDULE
5 3-MOS JAN-31-1999 APR-30-1999 20,276 0 124,705 (43,783) 0 154,657 84,000 (17,579) 1,024,449 636,186 0 18,814 0 0 (198,342) 1,024,449 59,724 188,778 0 57,192 173,711 0 0 33,011 0 33,011 0 0 0 33,011 0 0
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