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
Quarter ended March 31, 2000
PEAKSOFT MULTINET CORP.
-----------------------
(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 May 16, 2000
(Signature) By: /s/ Tim Metz
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Tim Metz
President/CEO
Page 1 of 10
<PAGE>
PEAKSOFT MULTINET CORP.
Second Quarter Report
For the three months ended March 31, 2000
Page 2 of 10
<PAGE>
LETTER TO SHAREHOLDERS
The second quarter 2000 will be remembered as a key turning point in the
development of the Company's small business community portal located
http://www.peak.com/.
Pursuant to an agreement reported on February 9, 2000, PeakSoft Multinet Corp.
will transfer, pending shareholder and regulatory approval, the "peak.com"
trademark, computer and office equipment and the other assets that are used to
develop and to display the site to the Company's subsidiary, Peak.Com Inc.
IncuLab.com, Inc., a New York based technology and internet incubator, will
acquire 100% of the shares of Peak.Com Inc. in exchange for IncuLab shares
valued at USD 3.9 million. The Company is also proposing to invest another USD
$1 million by way of a private placement to acquire additional IncuLab shares.
Upon shareholder and regulatory approval, this agreement will satisfy the
capital requirements needed to meet the Company's goals for the small business
portal.
During this last quarter, the Company selected Google Inc. to provide internet
search capabilities for the peak.com web site. Google was evaluated as most
benefiting peak.com's members with the fastest, most efficient and accurate web
searching capability. Searchbutton.com was selected to provide searches within
peak.com's communities and business libraries.
The Company also completed a co-marketing agreement with HotOffice which will
provide the members of peak.com the ability to create web-based intranet and
virtual offices on the web.
The commercial fisheries vertical community located at
http://www.peak.com/pcommunities/nwfish/index.ddp was announced as live on March
24, 2000. PeakSoft, along with the Kodiak Chamber of Commerce, will provide the
commercial fishing industry with business and research libraries, industry news,
business tools and forums. This community was unveiled at the annual ComFish
convention in Alaska and was met with great reviews.
On April 25, 2000, I was appointed President, Chief Executive Officer and
Chairman of the Board. Mr. Foster will serve as a consultant to the Company
focusing on e-business activities for PeakSoft and Peak.com. This change in
leadership will not effect the agreement with IncuLab or any other initiatives
in which the Company is currently engaged.
We invite you to become a member at http://www.peak.com/ and to begin to reap
the many benefits that this site has to offer.
Sincerely,
/s/ Tim Metz
- ---------------------------
Tim Metz
President/CEO
May 16, 2000
Page 3 of 10
<PAGE>
Consolidated Balance Sheet (in Canadian dollars)
(Prepared by Management - Unaudited)
March 31, 2000 and 1999
- --------------------------------------------------------------------------------
2000 1999
$ $
- --------------------------------------------------------------------------------
Assets
Current Assets:
Cash 104,031 154,777
Accounts receivable 19,773 192,698
Inventories - 42,494
Prepaids and deposits 20,481 26,286
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144,285 416,255
Capital assets 55,196 95,011
Investment in InfoBuild - 284,000
- --------------------------------------------------------------------------------
199,481 795,266
================================================================================
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities 473,592 688,439
Notes Payable 2,378,569 444,143
Interest payable 200,915 86,908
Current portion of obligations under
capital leases 8,050 27,075
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3,061,127 1,246,565
Obligations under capital leases - 6,329
Shareholders' Equity:
Share capital 9,019,260 9,449,523
Accumulated deficit 11,880,906 9,907,151
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(2,861,646) (457,628)
- --------------------------------------------------------------------------------
199,481 795,266
================================================================================
Page 4 of 10
<PAGE>
Consolidated Statement of Operations and Deficit (in Canadian dollars)
(Prepared by Management - Unaudited)
March 31, 2000 and 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Quarter Quarter Six Months Six Months
Ended Ended Ended Ended
March 31, March 31, March 31, March 31,
2000 1999 2000 1999
$ $ $ $
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sales 17,945 138,950 59,778 286,979
Cost of goods sold 1,942 3,545 3,864 11,641
- ---------------------------------------------------------------------------------------------------------------
16,003 135,405 55,914 275,338
Operating Expenses:
General and administration 296,737 247,726 624,634 546,785
Selling and marketing 26,524 83,377 64,828 175,101
Research and development 25,194 82,453 51,316 161,135
Amortization 7,978 13,789 16,195 26,530
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356,434 427,345 756,973 909,551
- ---------------------------------------------------------------------------------------------------------------
Earnings (loss) before the undernoted (340,431) (291,940) (701,059) (634,213)
Interest on short-term notes (76,059) (77,231) (126,569) (77,231)
Debt settlement with creditors 14,605 - 37,443 -
- ---------------------------------------------------------------------------------------------------------------
Earnings (loss) from operations (401,885) (369,171) (790,186) (711,444)
- ---------------------------------------------------------------------------------------------------------------
Loss 401,885 369,171 790,186 711,444
Accumulated deficit, beginning of period 11,479,021 9,537,980 11,090,720 9,195,707
- ---------------------------------------------------------------------------------------------------------------
Accumulated deficit, end of period 11,880,906 9,907,151 11,880,906 9,907,151
===============================================================================================================
Loss per common share 0.11 0.09 0.21 0.18
</TABLE>
Page 5 of 10
<PAGE>
Statement of Changes in Financial Position (in Canadian dollars)
(Prepared by Management - Unaudited)
March 31, 2000 and 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Quarter Quarter Six Months Six Months
Ended Ended Ended Ended
March 31, March 31, March 31, March 31,
2000 1999 2000 1999
$ $ $ $
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cash provided by (used in):
Operations:
Net earnings (loss) (401,885) (369,171) (790,186) (711,444)
Items not involving cash:
Amortization 7,978 13,789 16,195 26,530
Change in non-cash operating
working capital (30,106) (573,711) (179,990) (413,271)
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(424,013) (929,093) (953,980) (1,098,185)
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Financing:
Repayments of notes payable (346) - (6,881) -
Increase (decrease) in
Obligation under capital
leases - (12,373) (1,897) (22,310)
Issuance of notes payable 428,059 444,143 946,979 444,143
Issuance of share capital 63,816 668,296 63,816 823,899
-----------------------------------------------------------------------------------
491,528 1,100,066 1,002,016 1,245,732
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Investments:
Purchase of capital assets - (10,536) - (15,594)
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- ---------------------------------------------------------------------------------------------
Increase (decrease) in cash position 67,515 160,437 48,036 131,953
Cash, beginning of period 36,516 (5,660) 55,995 22,824
- ---------------------------------------------------------------------------------------------
Cash, end of period 104,031 154,777 104,031 154,777
=============================================================================================
</TABLE>
Page 6 of 10
<PAGE>
SECOND QUARTER REVIEW
The second quarter of fiscal year 2000 shows a continuation of expense
reductions in most areas of operation. Overall operating expenses decreased from
CDN $427,345 for the quarter ended March 31, 1999 to CDN $356,434 in the
comparable quarter in 2000, a decrease of 17%, mainly because of significant
cost reductions in marketing and research and development. Loss for the second
quarter increased from CDN $369,171 for the quarter ended March 31, 1999 to CDN
$401,885 in the comparable quarter in 2000, an increase of 8%, largely due to a
decrease in sales.
General and administrative expenses increased from CDN $247,726 for the quarter
ended March 31, 1999 to CDN $296,737 in the comparable period in 2000, an
increase of CDN $49,011. This increase of 17% is mostly comprised of travel
expenses associated with the agreement with IncuLab (as discussed in the letter
to shareholders) as well as the costs of our small business community portal,
http://www.peak.com/ going live.
Selling and marketing expenses decreased from CDN $83,377 for the quarter ended
March 31, 1999 to CDN $26,524 in the comparable period in 2000, a decline of CDN
$56,853. This decrease of 68% was primarily due to management's continued
expense reductions along with the developmental stage of its planned new
products and services during the first quarter fiscal year 2000, while
continuing to focus on e-commerce/partnering as the preferred method of
software distribution.
Research and development expenses declined from CDN $82,453 for the quarter
ended March 31, 1999 to CDN $25,194 in the comparable period in 2000, a decrease
of CDN $57,259 or 69%. This decline was due to reductions in personnel and
associated costs
During the quarter, the Company received USD $295,000 in operating capital.
Subsequent to the end of the first quarter, the Company received an additional
USD $95,000, both of which were supported by promissory notes.
Page 7 of 10
<PAGE>
SIX MONTH REVIEW
The six months ending March 31, 2000 shows a continuation of expense cutbacks in
most areas of operation. Overall operating expenses decreased from CDN $909,551
for the six months ending March 31, 1999 to CDN $756,973 in the comparable
period in 2000, a decrease of 17%, mainly because of significant cost reductions
in marketing and research and development. Loss for the six months increased
from CDN $711,444 for the six months ended March 31, 1999 to CDN $790,186 in the
comparable period in 2000. This 10% increase was largely due to a decrease in
sales.
General and administrative expenses increased from CDN $546,785 for the six
months ended March 31, 1999 to CDN $624,634 in the comparable period in 2000, an
increase of CDN $77,849 or 12%. This increase is mostly comprised of continued
professional and consulting services involved with the development of our small
business community portal, http://www.peak.com/, as well as the news and
editorial expenses incurred with the web site going live. An increase in travel
expenses due to the agreement with IncuLab was also realized.
Selling and marketing expenses decreased from CDN $175,101 for the six months
ended March 31, 1999 to CDN $64,828 in the comparable period in 2000, a decline
of CDN $110,273. This decrease of 63% 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 $161,135 for the six months
ended March 31, 1999 to CDN $51,316 in the comparable period in 2000, a decrease
of CDN $109,819 or 68%. This decline was due to reductions in personnel and
associated costs.
During the six months, the Company received USD $645,000 in operating capital.
Page 8 of 10
<PAGE>
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.
Through the second quarter ending March 31, 2000, 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 9 of 10
<PAGE>
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/
--------------------
Investor Relations
PeakSoft Multinet Corp.
(360) 752-1100
mailto:[email protected]
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Stock Listing
PeakSoft Multinet Corp. common stock is traded on the Canadian Venture
Exchange under symbol PKS.V 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
Tim Metz Tim Metz
Chairman of the Board President & CEO
Colin Morse Calvin Patterson
Director Corporate Counsel
Peter Janssen
Director
Simon Arnison
Director
Page 10 of 10
