UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended: September 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: 000-27582
SPEEDUS.COM, Inc.
(Exact name of registrant as specified in its charter)
Delaware 13-3853788
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
140 58th Street, Loft 7E
Brooklyn, New York 11220
(Address of principal executive offices) (Zip Code)
718-567-4300
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed
since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 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 |_|
The number of outstanding shares of the registrant's common stock, par value
$.01 per share (the "Common Stock"), as of September 30, 1999 was 19,670,959. .
<PAGE>
SPEEDUS.COM, Inc.
INDEX TO FORM 10-Q
Page(s)
-------
PART I -- FINANCIAL INFORMATION
Management's Discussion and Analysis of
Financial Condition and Results of Operations ........................... 3-6
Financial Statements
Consolidated Balance Sheets as of September 30, 1999 (unaudited)
and December 31, 1998 ............................................. 7
Consolidated Statements of Operations (unaudited) for the
Three Months and Nine Months Ended September 30, 1999 and 1998 .... 8
Consolidated Statements of Cash Flows (unaudited) for the
Nine Months Ended September 30, 1999 and 1998 ..................... 9
Notes to Consolidated Financial Statements
(unaudited) ....................................................... 10-11
PART II -- OTHER INFORMATION
ITEM 1 -- Legal Proceedings ............................................. 12
ITEM 2 -- Changes in Securities ......................................... 12
ITEM 3 -- Defaults Upon Senior Securities ............................... 12
ITEM 4 -- Submission of Matters to a Vote of Security Holders ........... 12
ITEM 5 -- Other
Information ............................................................. 12
ITEM 6 -- Exhibits and Reports on Form 8-K .............................. 12
Signature Page........................................................... 14
2
<PAGE>
PART I - FINANCIAL INFORMATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following discussion and analysis of financial condition and results
of operations should be read in conjunction with the corresponding discussion
and analysis included in the SPEEDUS.COM, Inc. ("SPEEDUS.COM" or the "Company")
Report on Form 10-K for the year ended December 31, 1998.
Information Relating to Forward-Looking Statements
This Management's Discussion and Analysis of Financial Condition and
Results of Operations and other sections of this Quarterly Report contain
"forward-looking statements" within the meaning of Section 27A of the Securities
Act and Section 21E of the Securities Exchange Act of 1934, as amended. These
statements appear in a number of places in this Quarterly Report and include
statements regarding the intent, belief or current expectations of the Company
or its officers with respect to, among other things, the ability of the Company
to service and repay debt, the ability to incur additional debt, as necessary,
to make capital expenditures as well as other factors that may effect the
Company's financial condition or results of operations. Forward-looking
statements may include, but are not limited to, projections of revenues, income
or losses, capital expenditures, plans for future operations, financing needs or
plans, compliance with covenants in loan agreements, plans for liquidation or
sale of assets or businesses, plans relating to products or services of the
Company, assessments of materiality, predictions of future events, and the
ability to obtain additional financing, including the Company's ability to meet
obligations as they become due, and other pending and possible litigation, as
well as assumptions relating to the foregoing. All statements in this Quarterly
Report regarding industry prospects and the Company's financial position are
forward-looking statements. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date hereof.
Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance that such
expectations will prove to have been correct. The Company undertakes no
obligation to publicly release the result of any revisions to these
forward-looking statements that may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.
Results of Operations
From 1992 until November 1998, the Company operated a 49-channel analog
subscription television system in Brooklyn, New York utilizing 1,300 MHz of
spectrum under a LMDS license from the Federal Communications Commission
("FCC"). The Company's LMDS license entitled it to utilize 1,150 MHz of spectrum
in the 28 GHz range covering the New York Primary Metropolitan Statistical Area
("PMSA"), a region which covers the 5 boroughs of New York City as well as the
New York Counties of Westchester, Rockland, and Putnam. Under FCC rules, the
Company has the right to use an additional 150 MHz of spectrum until the first
Ka band satellite is launched, an event not expected to occur prior to 2002.
In November 1998, as a result of the assignment of 850 MHz of spectrum,
the Company discontinued its subscription television service.
On October 12, 1999, the Company assigned to NEXTLINK Communications, Inc.
("NEXTLINK") 150 MHz of the Company's spectrum for a total amount of $20
million. The spectrum transaction does not have an impact on the Company's
Internet Broadband Broadcast System ("IBBS") or on the Company's future business
plans. Pending FCC approval of the license assignment, since July 1999 NEXTLINK
was making monthly payments of approximately $172,000 to the Company.
The Company is using its 300 MHz FCC license and infrastructure to deliver
super high-speed Internet service in the Metro New York area. The Company has
built a full-featured Internet Service Provider ("ISP") and configured its IBBS
to deliver super high-speed Internet service in Metro New York. The service is
being marketed under the service mark SPEED. The SPEED modems are currently only
available from the Company for $350, which along with the $150 installation cost
can now be financed for up to 3 years. Increased signal coverage through
additional Internet Broadcast Stations is crucial to widespread availability of
the SPEED service. The marketing is limited to a pilot roll out and is not
expected to develop into a mass marketing campaign in the immediate future.
3
<PAGE>
On July 9, 1999, NEXTLINK purchased 2 million shares of the Company's
Common Stock at $10 per share for a total equity investment of $20 million. The
stock purchase agreement requires the Company to use its best efforts to cause a
NEXTLINK representative to be elected to the Company's Board of Directors.
Three and Nine Months Ended September 30, 1999 Compared to Three and Nine Months
Ended September 30, 1998
Revenue decreased $659,000 from $1,169,000 for the three months ended
September 30, 1998 to $510,000 for the three months ended September 30,1999 and
decreased $3,404,000 from $3,956,000 for the nine months ended September 30,
1998 to $552,000 for the nine months ended September 30,1999. This decrease is a
result of the discontinuance of the Company's subscription television business
in November 1998 which has historically accounted for substantially all of the
Company's revenues. Revenues for the three and nine months ended September 30,
1999 reflect the early results of the Company's pilot program to connect its
first Internet subscribers and also include approximately $488,000 received from
NEXTLINK pending FCC approval of the license assignment.
Selling, general and administrative expenses decreased $1,747,000 from
$2,871,000 for the three months ended September 30, 1998 to $1,124,000 for the
three months ended September 30, 1999 and decreased $4,582,000 from $8,103,000
for the nine months ended September 30, 1998 to $3,521,000 for the nine months
ended September 30, 1999. These decreases are primarily attributable to the
successful execution of the Company's termination of its subscription television
business, including reduced headcount-related costs as a result of personnel
reductions during the third and fourth quarters of 1998, and the limited, cost
conscious pilot program for its super high-speed Internet business.
Depreciation and amortization decreased $791,000 from $1,495,000 for the
three months ended September 30, 1998 to $704,000 for the three months ended
September 30, 1999 and decreased $2,167,000 from $4,224,000 for the nine months
ended September 30, 1998 to $2,057,000 for the nine months ended September 30,
1999. This decrease was due primarily to the 1998 write off of property and
equipment previously used by the Company in its discontinued subscription
television service.
Stock-based compensation amounted to $205,000 and $410,000 for the three
and nine months ended September 30, 1999, respectively. During the six months
ended June 30, 1999, the Company issued warrants to purchase shares of the
Company's Common Stock and grants of Common Stock with an estimated fair value
aggregating approximately $600,000. This amount is being amortized ratably over
the remainder of the year ending December 31, 1999. Similar transactions during
the year ended December 31, 1998 were not material.
Service costs, primarily fees paid to the providers of television
programming, amounted to $398,000 and $1,519,000 for the three and nine months
ended September 30, 1998, respectively. They are no longer incurred as a result
of the discontinuance of the Company's subscription television business in
November 1998.
Bad debt expense amounted to $861,000 and $1,161,000 for the three and
nine months ended September 30, 1998, respectively. Prior to the termination of
subscription television services in early November 1998, the Company experienced
a high level of service cancellations and a drastic decrease in collections from
subscribers. The Company increased its allowance for bad debts at December 31,
1998 to reflect these developments and reserved the entire balance of accounts
receivable in the amount of $1,020,000 at that time. The Company is considering
several options to vigorously pursue collection of past due accounts.
Collections on these accounts receivable during the three and nine months ended
September 30, 1999 were not material. The Company will generally require
residential subscribers to its high-speed Internet service to provide credit
card information for monthly billings and therefore does not expect any material
exposure for bad debts in the future.
Equity in loss of associated company amounted to $23,000 and $195,000 for
the three and nine months ended September 30, 1999, respectively. The Company
made cash investments in these amounts for a 45% equity interest in SPEEDIA, LLC
which investment is being accounted for under the equity method.
Other income amounted to $420,000 for the nine months ended September 30,
1999. During the nine months ended September 30, 1999, the Company negotiated
settlements with sixteen providers of television programming. As of December 31,
1998, the Company had unpaid amounts due to these entities in the aggregate
amount of $1,049,000. The Company has settled these billings for an aggregate of
$629,000, resulting in a savings
4
<PAGE>
of $420,000. The Company will continue to negotiate settlements with remaining
vendors but there can be no assurance that settlements will be obtained or
obtained on similar terms.
Interest income increased $334,000 from $11,000 for the three months ended
September 30, 1998 to $345,000 for the three months ended September 30, 1999 and
increased $637,000 from $32,000 for the nine months ended September 30, 1998 to
$669,000 for the nine months ended September 30, 1999 since the Company had more
funds available for investment.
Interest expense and financing fees decreased $1,191,000 from $1,196,000
for the three months ended September 30, 1998 to $5,000 for the three months
ended September 30, 1999 and decreased $1,983,000 from $2,001,000 for the nine
months ended September 30, 1998 to $18,000 for the nine months ended September
30, 1999. These decreases are due to the repayment or repurchase of
substantially all of the Company's outstanding debt in the fourth quarter of
1998.
Liquidity and Capital Resources
The Company has recorded operating losses and negative operating cash
flows in each year of its operations since inception, primarily due to the
start-up costs in connection with the commercial roll-out of the Company's
system, slower than anticipated consumer acceptance of the Company's now
discontinued subscription television services and expenses incurred in
connection with the LMDS rulemaking proceeding.
While the Company believes that consummation of the spectrum assignments
in November 1998 and October 1999 and the sale of Common Stock in July 1999 have
provided sufficient liquidity to finance its current level of operations, it
does not expect to have a positive operating cash flow until such time as it
substantially increases its Internet customer base and/or forms a strategic
alliance for use of its Internet capabilities in the future. The lack of
additional capital in the future, if needed, could have a material adverse
effect on the Company's financial condition, operating results and prospects for
growth.
Year 2000 compliance
The "Year 2000" or "Y2K" problem exists because of the potential for
computer programs to recognize a date using "00" as the year 1900 instead of the
year 2000 which could cause disruption of normal business operations.
If not addressed and completed on a timely basis, the Year 2000 problem
could lead to incomplete or inaccurate accounting, billing and customer service
functions with resultant financial loss, legal liability or business
interruption.
The Company has established a project team to address the extent, if any,
to which its systems may be affected by the Year 2000 problem and to establish
procedures to resolve Year 2000 issues. The project team includes Company
personnel and, to the extent necessary, outside consultants. The Company expects
to complete its assessment, as well as modification or replacement of software,
during the fourth quarter of 1999. Costs over the 1998-1999 period are estimated
to be less than $75,000 and substantially all of this amount has been incurred
and expensed through September 30, 1999.
The Company has established that its Internet connectivity systems are
Year 2000 compliant and that the systems remaining subject to completion of
review are involved with accounting and related administrative functions. The
majority of the Company's accounting systems have also been determined to be
Year 2000 compliant. The Company believes that modification or replacement of
the remaining systems, if necessary, would not incur a material cost. During the
fourth quarter of 1999, the Company will be finalizing contingency plans for
processes that could likely be affected by the Year 2000 problem with the
primary focus being unforeseen failures of computer software and hardware.
There are inherent uncertainties as to the extent to which the Year 2000
problem may effect the Company in the future. However, since the Year 2000
problem has been identified on such a broad basis, the Company believes that
significant long-term relationships with vendors and suppliers, including
systems and service providers, in the future course of its business would only
occur after the Company has satisfied itself that such companies are Year 2000
compliant.
5
<PAGE>
While the Company expects that its Year 2000 efforts will be successful,
failure of the Company's computer systems, or the computer systems of vendors
and suppliers that the Company relies or may rely upon, could have a material
adverse effect.
6
<PAGE>
SPEEDUS.COM, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
1999 1998
------------ ------------
(unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $28,374,935 $12,902,085
Due from affiliates 93,111 86,444
Accounts receivable, net of allowance for 23,348
doubtful accounts of $1,019,933 and $290,984 7,499 --
Prepaid expenses and other 3,009 --
------------ ------------
Total current assets 28,478,554 13,011,877
Property and equipment, net of accumulated
depreciation of $7,546,002 and $5,488,766 11,479,069 12,836,368
Other assets 61,573 67,165
------------ ------------
Total assets $40,019,196 $25,915,410
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $836,180 $2,519,345
Accrued liabilities 784,112 807,499
Current portion of notes payable 168,750 168,750
Other current liabilities 90,203 203,812
------------ ------------
Total current liabilities 1,879,245 3,699,406
Notes payable 84,375 168,750
------------ ------------
Total liabilities 1,963,620 3,868,156
Commitments and Contingencies -- --
Stockholders' equity:
Common stock ($.01 par value; 40,000,000
shares authorized; 19,670,959 and 17,131,357
shares issued and outstanding) 196,710 171,314
Preferred stock ($.01 par value; 20,000,000
shares authorized):
Series A Convertible ($1,000 stated value;
10,000 shares authorized; no shares issued -- --
and outstanding)
Additional paid-in-capital 79,362,699 58,794,847
Accumulated deficit (41,503,833) (36,918,907)
------------ ------------
Stockholders' equity 38,055,576 22,047,254
------------ ------------
Total liabilities and stockholders' equity $40,019,196 $25,915,410
============ ============
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
7
<PAGE>
SPEEDUS.COM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
<TABLE>
<CAPTION>
Three months ended September 30, Nine months ended September 30,
------------------------------- -------------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues $509,899 $1,169,434 $552,069 $3,956,456
------------ ------------ ------------ ------------
Expenses:
Selling, general and
administrative 1,123,781 2,870,916 3,521,439 8,102,678
Depreciation and amortization 704,412 1,494,918 2,057,236 4,223,990
Stock-based compensation 205,000 -- 410,000 --
Service costs -- 398,234 -- 1,519,423
Bad debts -- 860,691 -- 1,161,353
------------ ------------ ------------ ------------
Total operating expenses 2,033,193 5,624,759 5,988,675 15,007,444
------------ ------------ ------------ ------------
Operating loss (1,523,294) (4,455,325) (5,436,606) (11,050,988)
Equity in loss of associated
company (23,400) -- (218,400) --
Other income -- -- 419,756 --
Interest income 344,545 10,704 668,601 31,732
Interest expense and financing fees (5,175) (1,196,294) (18,277) (2,000,764)
------------ ------------ ------------ ------------
Net loss $(1,207,324) $(5,640,915) $(4,584,926) $(13,020,020)
============ ============ ============ ============
Per share:
Basic loss per common share $(0.06) $(0.33) $(0.25) $(0.80)
============ ============ ============ ============
Weighted average common shares
outstanding 19,495,785 16,949,075 18,059,899 16,356,501
============ ============ ============ ============
Diluted loss per common share $(0.06) $(0.33) $(0.25) $(0.80)
============ ============ ============ ============
Weighted average common shares
outstanding 19,495,785 16,949,075 18,059,899 16,356,501
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
8
<PAGE>
SPEEDUS.COM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
Nine months ended September 30,
--------------------------------
1999 1998
--------------------------------
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (4,584,926) $(13,020,020)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 2,057,236 4,223,990
Stock based compensation 410,000 --
Equity in loss of associated company 218,400 --
Amortization of placement fees -- 58,149
Provision for doubtful accounts -- 1,160,253
Non-cash increase in notes payable -- 250,000
Changes in assets and liabilities:
Due from affiliates (6,667) 113,142
Accounts receivable (7,499) (570,924)
Prepaid expenses and other 20,339 49,252
Notes receivable -- 171,245
Accounts payable (1,683,165) 2,180,293
Accrued liabilities (23,387) (649,750)
Other current liabilities (113,609) 213,949
Other assets 5,592 22,354
------------ ------------
Net cash used in operating activities (3,707,686) (5,798,067)
------------ ------------
Cash flows from investing activities:
Property and equipment additions (699,937) (1,193,789)
Investment in associated company (218,400) --
------------ ------------
Net cash used in investing activities (918,337) (1,193,789)
------------ ------------
Cash flows from financing activities:
Proceeds from sale of stock 19,750,000 3,501,100
Proceeds from exercise of options and warrants 433,248 --
Repayment of notes payable (84,375) (1,256,215)
Proceeds from notes payable -- 4,691,147
------------ ------------
Net cash provided by financing activities 20,098,873 6,936,032
------------ ------------
Net increase (decrease) in cash
and cash equivalents 15,472,850 (55,824)
Cash and cash equivalents, beginning of period 12,902,085 407,741
------------ ------------
Cash and cash equivalents, end of period $ 28,374,935 $ 351,917
============ ============
Supplemental Cash Flow Disclosures:
Cash paid for interest during the period $ 13,102 $ 517,780
============ ============
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
9
<PAGE>
SPEEDUS.COM, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
The accompanying unaudited consolidated financial statements include the
accounts of SPEEDUS.COM, SPEEDUSNY.COM, L.P. ("SPEEDUSNY"), a limited
partnership, and CellularVision Capital Corporation, the general partner of
SPEEDUSNY and a wholly-owned subsidiary of SPEEDUS.COM. All significant
intercompany accounts and transactions have been eliminated in consolidation.
These financial statements have been prepared in accordance with generally
accepted accounting principles for interim financial information. In the opinion
of management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. These financial
statements do not include all information and notes required by generally
accepted accounting principles for complete financial statements. These
financial statements should be read in conjunction with the Company's 1998
audited consolidated financial statements and notes thereto on Form 10-K.
Operating results for the three and nine months ended September 30, 1999
are not necessarily indicative of the results that may be expected for the year
ending December 31, 1999.
Certain prior year amounts have been reclassified to conform to the
current year's presentation.
2. Related Party Transactions
At December 31, 1997, the Company had outstanding long-term orders with
CellularVision Technology and Telecommunications, L.P. ("CT&T") for the purchase
of equipment in the aggregate amount of approximately $3,200,000, net of
deposits in the aggregate amount of approximately $600,000. Approximately
$1,400,000 of this amount, net of deposits, is represented by set-top converters
and head-end equipment which has been delivered to the Company but have
experienced performance problems, as a result of which CT&T is presently
involved in litigation with the vendor of this equipment. The Company has not
accepted billings for this equipment and no amounts are reflected in the
accompanying financial statements. As a result of discontinuing the subscription
television service, if the Company is ultimately forced to accept and pay for
this equipment, the equipment may have little or no value and would be written
off. Approximately $1,800,000 of this amount, net of deposits, represents
long-term orders which are still outstanding for modems that would be usable by
the Company in its high-speed internet access business.
3. Other Income
During the nine months ended September 30, 1999, the Company negotiated
settlements with sixteen providers of television programming. As of December 31,
1998, the Company had unpaid amounts due to these entities in the aggregate
amount of $1,049,000. The Company has settled these billings for an aggregate of
$629,000, resulting in a savings of $420,000. The Company will continue to
negotiate settlements with remaining vendors but there can be no assurance that
settlements will be obtained or obtained on similar terms.
4. Legal Proceedings
(a) Except as discussed in the next paragraph, there have been no material
developments with respect to the legal proceedings reported in Item 3 or in Note
10 to the consolidated financial statements included in Item 14 of the Company's
report on Form 10-K for the year ended December 31, 1998.
On October 22, 1999, a final judgment was entered in the United States
District Court Southern District of New York dismissing the action brought by
Akcess Pacific Group, LLC ("Akcess") against the Company, SPEEDUSNY and other
defendants in connection with the assignment of spectrum in November 1998 and a
convertible preferred stock issue of the Company that was outstanding at that
time. Akcess has until November 21, 1999 to file a notice of appeal.
(b) The Company has been named in a lawsuit brought in the normal course
of its business in the amount of approximately $240,000, exclusive of expenses.
The Company believes it has substantial defenses to a material
10
<PAGE>
portion of this claim and is prepared to pursue litigation if a reasonable and
structured settlement cannot be reached with the party. In the event an adverse
judgment on this and all similar lawsuits are rendered in the same period, the
aggregate effect could be material to the Company's financial position and it
could have a material effect on operating results in the period in which the
matters are resolved.
5. Subsequent Events
On October 12, 1999, the Company assigned to NEXTLINK Communications, Inc.
("NEXTLINK") 150 MHz of the Company's spectrum for a total amount of $20
million. Pending FCC approval of the license assignment, since July 1999
NEXTLINK was making monthly payments of approximately $172,000 to the Company.
11
<PAGE>
PART II - OTHER INFORMATION
ITEM 1 -- LEGAL PROCEEDINGS
Except as discussed in the next paragraph, since the date of the Company's
report on Form 10-K for the year ended December 31, 1998, there have been no
material developments with respect to the legal proceedings reported in Item 3
or in Note 11 to the financial statements included in Item 14 of such report.
On October 22, 1999, a final judgment was entered in the United States
District Court southern District of New York dismissing the action brought by
Akcess Pacific Group, LLC ("Akcess") against the Company, SPEEDUSNY and other
defendants in connection with the assignment of spectrum in November 1998 and a
convertible preferred stock issue of the Company that was outstanding at that
time. Akcess has until November 21, 1999 to file a notice of appeal.
Note 4 to the accompanying consolidated financial statements is
incorporated herein by reference.
ITEM 2 -- CHANGES IN SECURITIES
None.
ITEM 3 -- DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4 -- SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At its Annual Meeting of shareholders held on September 30, 1999, the
Company submitted the following matters to a vote of its shareholders, all of
which were approved:
1. Election of Directors:
Name of Director Votes For Votes Withheld
---------------- --------- --------------
Shant S. Hovnanian 12,710,079 1,926,983
Vahak S. Hovnanian 12,702,329 1,934,733
Matthew J. Rinaldo 12,705,729 1,931,333
Catherine Petrossian 12,711,154 1,925,908
2. Appointment of PricewaterhouseCoopers LLP as independent auditors of
the Company:
Votes For Votes Against Abstentions
--------- ------------- -----------
14,602,964 22,418 11,680
3. Approval of the Company's 1995 Stock Incentive Plan, as amended to
increase the number of shares of Common Stock available for issuance by 500,000
from 1,250,000 to 1,750,000:
Votes For Votes Against Abstentions
--------- ------------- -----------
12,511,504 2,103,4036 22,522
ITEM 5 -- OTHER INFORMATION
None.
ITEM 6 -- EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits:
27* Financial Data Schedule
12
<PAGE>
b. Current Reports on Form 8-K:
None
* Filed herewith
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SPEEDUS.COM, Inc.
Date: November 15, 1999 By: /s/ Shant S. Hovnanian
Shant S. Hovnanian
Chairman and President
Date: November 15, 1999 By: /s/ Angela M. Vaccaro
Angela M. Vaccaro
Controller and Chief Accounting Officer
14
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 28,374,935
<SECURITIES> 0
<RECEIVABLES> 7,499
<ALLOWANCES> 1,019,933
<INVENTORY> 0
<CURRENT-ASSETS> 28,478,554
<PP&E> 11,479,069
<DEPRECIATION> 7,546,002
<TOTAL-ASSETS> 40,019,196
<CURRENT-LIABILITIES> 1,879,245
<BONDS> 0
0
0
<COMMON> 196,710
<OTHER-SE> 37,858,866
<TOTAL-LIABILITY-AND-EQUITY> 40,019,196
<SALES> 552,069
<TOTAL-REVENUES> 552,069
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 5,988,675
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 18,277
<INCOME-PRETAX> (4,584,926)
<INCOME-TAX> 0
<INCOME-CONTINUING> (4,584,926)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4,584,926)
<EPS-BASIC> (.25)
<EPS-DILUTED> (.25)
</TABLE>
