SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the period ending 31 December 1999
PeakSoft Multinet Corp.
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(Translation of registrant's name into English)
1801 Roeder Avenue, Suite 144
Bellingham, WA 98225
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(Address of principal executive offices)
[Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F
[Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes [X] No
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-0-24069
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Signatures: T. W. Metz
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
PeakSoft Multinet Corp
(Registrant)
Date February 25, 2000
(Signature) By: /s/ T.W. Metz
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T.W. Metz
Chief Operating Officer
Page 1 of 9
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PEAKSOFT MULTINET CORP.
First Quarter Report
For period ending December 31, 1999
Page 2 of 9
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LETTER TO SHAREHOLDERS
1999 was a year of change for PeakSoft inasmuch as the Company directed
significant time and resources towards its online small business community
portal located at http://www.peak.com. PeakSoft developed a plan to "facilitate
the formation, growth, and prosperity of small businesses globally through
leading internet communications solutions which empower small businesses to
compile knowledge, and to develop e-commerce and other commercial
relationships."
Through http://www.peak.com, we will provide products, services, information,
and forums (to name a few of our offerings) to the Small Business Community to
assist its members in the task of achieving profitability and prosperity.
Peak.com plans to drive revenues initially from several diverse sources: revenue
sharing, business-to-business (B2B) e-commerce, and advertising.
The Company remains committed to the vertical portal strategy adopted early last
year. We believe this strategy has great potential. Electronic commerce is
growing at a staggering rate, particularly in the business-to-business (B2B)
sector. Peak.com will continue to be the major focus of the Company during the
coming year. New alliances are being formed and existing ones are being
expanded, such as Novell and others. Operating capital continues to be difficult
to obtain. Management is investigating all possible avenues to raise sufficient
operating capital in order to commercialize http://www.peak.com in the shortest
time to the greatest benefit of the shareholders.
The Company expects that the activity level for PeakSoft will continue to
increase with operating expenses in excess of income until the third quarter of
calendar 2000. In order to reduce the overall costs of maintaining its presence
in the retail sales channel, we have entered into agreements with Real Networks,
Inc.; Software Builders, LLC; Peruzzo Informatica in Italy; Softline AG in
Germany; Boomerang Software Inc.; Cyenta, NetSales, Inc. and Group Micro Serve
in Belgium and Luxembourg as well as others.
During this quarter, the beta version of http://www.peak.com was released. We
invite you to visit this site at http://www.peak.com/ and register.
Sincerely yours,
/s/ Timothy W. Metz
- -----------------------------
Timothy W. Metz
Chief Operating Officer
February 10, 2000
Page 3 of 9
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Consolidated Balance Sheet (in Canadian dollars)
(Prepared by Management - Unaudited)
December 31, 1999 and 1998
- --------------------------------------------------------------------------------
1999 1998
$ $
- --------------------------------------------------------------------------------
Assets
Current Assets:
Cash 36,516 -
Accounts receivable 46,682 88,921
Inventories - 43,373
Prepaids and deposits 17,446 21,098
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100,644 153,392
Capital assets 63,030 98,264
Investment in InfoBuild - 284,000
- --------------------------------------------------------------------------------
163,674 535,656
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Liabilities and Shareholders' Equity
Current liabilities:
Bank Indebtedness - 5,660
Accounts payable and accrued liabilities 582,956 1,235,097
Notes Payable 1,950,857 -
Interest payable 139,932 -
Current portion of obligations under
capital leases 13,505 32,950
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2,687,250 1,273,707
Obligations under capital leases - 18,702
Shareholders' Equity:
Share capital 8,955,445 8,781,227
Accumulated deficit 11,479,021 9,537,980
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(2,523,577) (756,753)
- --------------------------------------------------------------------------------
163,674 535,656
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Page 4 of 9
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Consolidated Statement of Operations and Deficit (in Canadian dollars)
(Prepared by Management - Unaudited)
December 31, 1999 and 1998
- --------------------------------------------------------------------------------
1999 1998
$ $
- --------------------------------------------------------------------------------
Sales 41,833 148,029
Cost of goods sold 1,922 8,096
- --------------------------------------------------------------------------------
39,911 139,933
Operating Expenses:
General and administration 327,898 299,059
Selling and marketing 38,303 91,724
Research and development 26,122 78,682
Amortization 8,217 12,741
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400,540 482,206
- --------------------------------------------------------------------------------
Earnings (loss) before the undernoted (360,629) (342,273)
Interest on short-term notes (50,510)
Debt settlement with creditors 22,838
- --------------------------------------------------------------------------------
Earnings (loss) from operations (388,301) (342,273)
- --------------------------------------------------------------------------------
Loss 388,301 342,273
Accumulated deficit, beginning of period 11,090,720 9,195,707
- --------------------------------------------------------------------------------
Accumulated deficit, end of period 11,479,021 9,537,980
================================================================================
Loss per common share 0.10 0.16
Shares Outstanding 3,801,399 2,139,206
Page 5 of 9
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Statement of Changes in Financial Position (in Canadian dollars)
(Prepared by Management - Unaudited)
December 31, 1999 and 1998
- --------------------------------------------------------------------------------
1999 1998
$ $
- --------------------------------------------------------------------------------
Cash provided by (used in):
Operations:
Net earnings (loss) (388,301) (342,273)
Items not involving cash:
Amortization 8,217 12,741
Change in non-cash operating (149,883) 160,440
working capital
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(529,967) (169,092)
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Financing:
Repayments of notes payable (6,535) -
Increase (decrease) in
Obligation under capital leases (1,897) (9,937)
Issuance of notes payable 518,920 -
Issuance of share capital - 155,603
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510,488 145,666
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Investments:
Purchase of capital assets - (5,058)
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- --------------------------------------------------------------------------------
Increase (decrease) in cash position (19,479) (28,484)
Cash, beginning of period 55,995 22,824
- --------------------------------------------------------------------------------
Cash, end of period 36,516 (5,660)
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Page 6 of 9
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Quarterly Review
The first quarter of fiscal year 2000 shows a continuation of expense cutbacks
in most areas of operation. Overall operating expenses decreased from CDN
$482,206 for the quarter ended December 31, 1998 to CDN $400,541 in the
comparable quarter in 1999 mainly because of significant cost reductions in
marketing as well as research and development. Loss from the quarter increased
from CDN $342,273 for the quarter ended December 31, 1998 to CDN $388,301 in the
comparable quarter in 1999. This was largely due to an increase in interest
expense on outstanding promissory notes as well as a decrease in net sales.
During the first quarter of fiscal year 1999, the Company relocated its premises
to its current location. This move had a large impact on operations as it saved
the Company approximately USD $100,000 in operating expenses per year. Under the
terms of the lease agreement on the former premises, the Company remains liable
for the lease payments until the end of the lease, which expires on March 31,
2002. The maximum liability is USD $310,000. During the first quarter of fiscal
year 2000, the Company negotiated a settlement with the former landlord for USD
$50,000, which eliminated the Company's largest liability.
General and administrative expenses increased modestly from CDN $299,059 for the
quarter ended December 31, 1998 to CDN $327,898 in the comparable period in
1999, an increase of CDN $28,839. This increase of 8.8% is mostly comprised of
continued professional and consulting services involved with the development of
our small business community portal, http://www.peak.com.
Selling and marketing expenses decreased from CDN $91,724 for the quarter ended
December 31, 1998 to CDN $38,303 in the comparable period in 1999, a decline of
CDN $53,421. This decrease of 58% was primarily due to management's continued
expense reductions along with the developmental stage of its planned new
products and services, while continuing to focus on e-commerce/partnering as the
preferred method of software distribution.
Research and development expenses declined from CDN $78,682 for the quarter
ended December 31, 1998 to CDN $26,122 in the comparable period in 1999, a
decrease of CDN $52,560 or 67%. This decline was due to reductions in staff and
non-essential expenses.
During the quarter, the Company received USD $350,000 in operating capital.
Subsequent to the end of the first quarter, the Company received an additional
USD $100,000, both of which were supported by promissory notes.
Page 7 of 9
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Year 2000
The Company has conducted a comprehensive review of its computer systems to
identify the systems that could be affected by the "Year 2000" issue and has
developed an implementation plan to resolve the issue. The Year 2000 problem is
the result of computer programs being written using two digits rather than four
to define the applicable year. Time-sensitive software may recognize a date
using "00" as the year 1900 rather than the year 2000. This could result in a
major system failure or the making of miscalculations. The Company completed
modifications to existing software and the conversion to new software. The
Company obtained Year 2000 compliance statements from vendors, suppliers, and
all other third parties that do business with the Company.
Subsequent to the end of the first quarter, the Company has not experienced any
operational problems relating to the "Year 2000" issue.
For the reasons set out above, PeakSoft has not incurred, and does not expect to
incur, any costs relating to the remediation of Y2K issues.
PeakSoft has concluded that it faces no material Y2K implications to its
business operations because its computers and the programs being run on them are
of recent vintage, marketed as being Y2K compliant.
This release may contain forward looking statements as well as historical
information. Forward-looking statements, which are included in accordance
with the "safe harbor" provisions of the "Private Securities Litigation
Reform Act of 1995, may involve known and unknown risks, uncertainties and
other factors that may cause the company's actual results and performance
to be materially different from any results or performance suggested by the
statements in this release. Such statements, and other matters addressed in
this press release, may involve a number of risks and uncertainties
including price competition, technological advances, decreased demand or
diversion to other software solutions.
Page 8 of 9
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CORPORATE INFORMATION
Corporate Headquarters
PeakSoft Multinet Corp.
1801 Roeder Ave., Suite 144
Bellingham, WA 98225
USA
Tel: (360) 752-1100 Fax: (360) 752-0086
http://www.peak.com
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Investor Relations
PeakSoft Multinet Corp.
(360) 752-1100
[email protected]
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Stock Listing
PeakSoft Multinet Corp. common stock is traded on the Alberta Stock
Exchange under symbol PKS and in the US on the OTC:BB under the symbol PEAMF.
Auditor
Gordon K. W. Gee, Chartered Accountant
488-625 Howe Street
Vancouver, BC V6C 2T6
Tel: (604) 689-8815 Fax: (604) 689-8838
Transfer Agent and Registrar
Montreal Trust, Calgary Alberta
Directors Management
Douglas Foster Douglas Foster
Chairman of the Board President & CEO
Colin Morse Tim Metz
Director Chief Operating Officer
Peter Janssen Calvin Patterson
Director Corporate Counsel
Simon Arnison
Director
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