<PAGE> 1
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarter Ended September 30, 2000
or
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from to
Commission file number
-----------
---------------------------
ADVANCED SYSTEMS INTERNATIONAL, INC.
(Exact name of small business Issuer as specified in its charter)
NEVADA 13-3953047
(State of other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
25300 Telegraph Rd., Suite 455, Southfield, MI 48034
(Address of principal executive offices)
(248) 263-0000
(Issuer's telephone number)
-----------------------------
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 .
Shares of the Registrant's Common Stock, par value $.001 per share, outstanding
as of September 30, 2000: 14,686,541
<PAGE> 2
ADVANCED SYSTEMS INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
(Unaudited)
---------------------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash
Unrestricted $ 707,526 $ 297,300
Restricted - 148,247
---------------------------------
707,526 445,547
Accounts Receivable
Trade
Billed (Net of Allowance of $25,426 at September 30, 2000 and December 31, 1999) 1,573,708 308,094
Unbilled 1,697,903 1,000,686
Other 3,613 23,532
---------------------------------
3,275,224 1,332,312
Inventory 40,579 39,229
Prepaid Expenses 107,342 114,369
---------------------------------
TOTAL CURRENT ASSETS 4,130,671 1,931,457
PROPERTY & EQUIPMENT - AT COST
Computer Equipment 284,615 254,451
Office Equipment 76,689 80,245
Leasehold Improvements 69,348 69,348
---------------------------------
430,652 404,044
Less Accumulated Depreciation and Amortization 246,786 178,726
---------------------------------
TOTAL PROPERTY & EQUIPMENT 183,866 225,318
OTHER ASSETS
Deposits 28,069 32,836
Software Development Costs, less accumulated amortization of $177,858 and $88,929 at September 30,
2000 and December 31, 1999, respectively. 177,861 266,790
Sundry 2,612 8,210
---------------------------------
TOTAL ASSETS $ 4,523,079 $ 2,464,611
=================================
LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Note Payable - Bank $ 1,496,962 $ 250,000
Current Maturities of Long-Term Obligations 246,820 18,647
Current Maturities of Long-Term Obligations To Related Parties 513,322 814,489
Customer Deposits 537,193 840,778
Accounts Payable 859,994 880,473
Accrued Liabilities
Payroll and Payroll Taxes 287,824 134,520
Interest and Other 77,924 43,763
Professional Fees 43,226 99,711
---------------------------------
408,974 277,994
TOTAL CURRENT LIABILITIES 4,063,265 3,082,381
LONG TERM OBLIGATIONS, LESS CURRENT MATURITIES - 5,232
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred Stock - $.001 Par Value; authorized, 10,000,000
shares; none issued and outstanding - -
Common Stock - $.001 par value; authorized, 20,000,000
shares; 14,686,541 and 11,947,815 shares issued and outstanding
at September 30, 2000 and December 31, 1999, respectively. 14,807 11,948
Additional paid-in capital 9,732,823 5,957,054
Accumulated Deficit (9,287,816) (6,592,004)
---------------------------------
459,814 (623,002)
---------------------------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) $ 4,523,079 $ 2,464,611
=================================
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements
<PAGE> 3
ADVANCED SYSTEMS INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
<TABLE>
<CAPTION>
Additional
Common Paid-In Accumulated
Stock Capital Deficit Total
-------------- ---------------- ----------------- ---------------
<S> <C> <C> <C> <C>
Balance at January 1, 1998 $ 8,137 $ 2,866,744 $ (4,070,317) $ (1,195,436)
Issuance of 2,194,082 Shares of Stock 2,194 1,888,875 - 1,891,069
Conversion of Debentures and Interest to
899,840 shares of stock 900 674,000 - 674,900
Foreclosure on Loan Receivable -- stockholder
(72,917 shares) (73) (72,844) - (72,917)
Net Loss - - (1,489,675) (1,489,675)
-------------- ---------------- ----------------- ---------------
Balance at December 31, 1998 11,158 5,356,775 (5,559,992) (192,059)
Issuance of 790,143 shares of stock 790 600,279 - 601,069
Net Loss - - (1,032,012) (1,032,012)
-------------- ---------------- ----------------- ---------------
Balance at December 31, 1999 11,948 5,957,054 (6,592,004) (623,002)
Issuance of 2,738,726 shares of stock 2,859 3,775,769 - 3,778,628
Net Loss - - (2,695,812) (2,695,812)
----------------------------------------------------------------------------
Balance at September 30, 2000 (Unaudited) $ 14,807 $ 9,732,823 $ (9,287,816) $ 459,814
============================================================================
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements
<PAGE> 4
ADVANCED SYSTEMS INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended September 30,
2000 1999
---------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Earnings (Loss) $ (2,695,812) $ 702,917
Adjustments to Reconcile net earnings (loss) to net cash (used in) provided
by operating activities
Depreciation and Amortization 162,587 128,837
Change in Assets & Liabilities
Increase in Accounts Receivable (1,942,912) (1,654,772)
Increase in Inventories (1,350) (8,193)
Decrease in Deposits 4,767 29,456
Decrease (Increase) in Prepaid Expenses 7,027 (77,097)
(Decrease) Increase in Accounts Payable (20,479) 455,672
Increase in Accrued Liabilities 130,980 266,802
(Decrease) Increase in Customer Deposits (303,585) 304,521
---------------------------------
Net Cash (Used in) Provided by Operating Activities (4,658,777) 148,143
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Property and Equipment (26,608) (115,923)
Increase in Software Development Costs - (59,524)
---------------------------------
Net Cash Used in Investing Activities (26,608) (175,447)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Issuance of Obligations 1,746,962 250,000
Repayment of Obligations (277,059) (626,450)
Proceeds from Issuance of Obligations to Related Parties 498,333 170,000
Repayment of Related Party Obligations (799,500) (219,500)
Proceeds from Issuance of Common Stock 3,778,628 293,536
---------------------------------
Net Cash Provided by (Used in) Financing Activities 4,947,364 (132,414)
---------------------------------
NET INCREASE (DECREASE) IN CASH 261,979 (159,718)
CASH AT JANUARY 1 445,547 225,491
---------------------------------
CASH AT SEPTEMBER 30 $ 707,526 $ 65,773
=================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash Paid During the Period for Interest $ 145,614 $ 115,256
=================================
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements
<PAGE> 5
ADVANCED SYSTEMS INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended September 30, Nine Months Ended September 30,
2000 1999 2000 1999
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues $ 1,443,388 $ 2,132,808 $ 5,269,850 $ 6,097,443
Cost of Revenues 66,662 298,212 146,360 695,046
----------------------------------------------------------------------------
Gross Profit 1,376,726 1,834,596 5,123,490 5,402,397
Operating Expenses
Sales & Marketing 621,885 579,997 2,177,062 1,452,229
Research & Development 417,920 334,787 1,137,787 755,801
Customer Support 654,692 353,966 1,699,928 1,041,411
General & Administrative 605,218 516,975 1,686,612 1,324,699
Stock Option Compensation 30,875 - 924,195 -
----------------------------------------------------------------------------
2,330,588 1,785,726 7,625,584 4,574,140
----------------------------------------------------------------------------
Earnings(Loss) From Operations (953,862) 48,870 (2,502,094) 828,257
Other Expense
Interest Expense 48,938 27,646 193,718 125,340
----------------------------------------------------------------------------
Net Earnings(Loss) $ (1,002,800) $ 21,224 $ (2,695,812) $ 702,917
============================================================================
Earnings(Loss) Per Share - basic $ (0.07) $ - $ (0.20) $ 0.06
Earnings(Loss) Per Share - diluted $ (0.07)* $ - $ (0.20)* $ 0.04
</TABLE>
* Common stock equivalents are not included in calculation due to their
anti-dilutive effect.
The accompanying notes are an integral part of these consolidated financial
statements
<PAGE> 6
MANAGEMENT'S DISCUSSION AND ANALYSIS
SUMMARY
The information in this section should be read together with the
consolidated, unaudited, interim financial statements that are included
elsewhere in this Form 10-QSB. Those interim financial statements include all
adjustments, which we have deemed necessary in order to make them not
misleading.
Advanced Systems International, Inc. (AdSys) and the Industry are
experiencing a "software project initiative slowdown" as evidenced by results of
the three-month period ended September 30, 2000. It has been the Company's
experience that "Fortune 1000" IT Managers are continuing to focus efforts
towards assessing their e-business initiatives, causing a continued delay in
purchasing decisions. AdSys is confident that its new product offerings that
track production activities, materials, fulfillment and ever-critical labor data
address this focus and will therefore be included in customers e-business
initiatives. Currently, AdSys is identifying opportunities for growth, including
the negotiation of strategic partnerships and joint ventures that will enable it
to broaden competitive opportunities, shorten sales cycles and improve
deliverables. The Company is expecting further penetration into industries such
as airlines, automotive supply, food processing, entertainment, furniture
manufacturing, paper and forestry products, and other manufacturing sectors.
AdSys has identified a significant opportunity to provide comprehensive
labor and inventory data within the high growth business to business (B2B)
market. Building on its proven labor management technology, AdSys has expanded
its product offering to include a web based tool set that tracks critical
production inventory, fulfillment and labor data in real-time to support the
cost efficient streamlined supply chain and E-business initiatives of its
customers. ATServer is a registered trademark of AdSys; we also claim common-law
and pending trademark rights in ATLink.
RESULTS OF OPERATIONS - RESULTS OF NINE MONTH PERIODS ENDED SEPTEMBER 30, 2000
AND SEPTEMBER 30, 1999
REVENUES
The Company experienced a decrease in revenues to $5,269,850 for the
nine months ended September 30, 2000, from $6,097,443 for the nine
months ended September 30, 1999, a decrease of $827,593 or 14%. The
Company attributes this decrease to a strong 1999 fueled by Y2k
preparation, and the widely held belief that Customer IT Managers are
currently prioritizing e-business initiatives, therefore delaying
purchasing decisions. AdSys had a net loss of $2,695,812 for the nine
months ended September 30, 2000 as compared with net earnings of
$702,917 for the nine months ended September 30, 1999, a difference of
$3,398,729. This difference is largely attributable to the decrease in
revenue described above, an increase in compensation and related
benefits due to increased employee infrastructure for delivering large
contract accounts, and large non-cash compensation expense related to
the vesting of employee stock options.
ATServer-related revenue amounted to $4,905,507 and $5,809,201 for the
nine months ended September 30, 2000 and 1999, respectively, a decrease
of $903,694 or 16%.
ATLink-related revenue grew to $364,344 from $288,243, an increase of
$76,101 or 26% in the nine months ended September 30, 2000 and 1999,
respectively.
GROSS PROFIT
The Company had gross profit of $5,123,490 (97% of total revenues) and
$5,402,397 (89% of total revenues) for the nine months ended September
30, 2000 and 1999 respectively. This represents a decrease in gross
profit of $278,907 or 5%. This decrease is due primarily to lower
revenue and different sales mix for the nine months ended September 30,
2000 compared to the nine months ended September 30, 1999, i.e. Revenue
for the nine months ended September 30, 2000 had a much smaller
hardware content of ($147,283), giving rise to $96,379 in Cost of Goods
Sold, whereas hardware sales for the nine months ended September 30,
1999 were $627,569 had a corresponding $364,575 in Cost of Goods
Sold.
ATServer-related gross profit was $4,796,181 (98% of ATServer revenue)
and $5,126,074 (88% of ATServer revenue) for the nine months ended
September 30, 2000 and 1999, respectively, a decrease of $329,893 or
6%. This decrease is due primarily to decreased ATServer revenue and
smaller hardware and outside consultant expenses within the Cost of
Goods Sold.
ATLink-related gross profit was $327,309 (90% of ATLink revenue) and
$276,322 (96% of ATLink revenue) for the nine months ended September
30, 2000 and 1999, respectively, an increase of $50,987 or 18%. This
increase is due primarily to increased ATLink revenue.
OPERATING EXPENSES
Sales and Marketing. Sales and marketing expenses increased to
$2,177,062 for the nine month period ended September 30, 2000, from
$1,452,229 for the nine month period ended September 30, 1999, an
increase of $724,833. The increase was attributable to AdSys' hiring of
additional sales personnel and a restructuring of compensation to a
higher base salary and a revised commission structure, and is reflected
by an increase in Compensation and Related Benefits of $461,429. Costs
of traveling increased to $292,246 for the nine months ended September
30, 2000 from $135,399 for the nine months ended September 30, 1999, an
increase of $156,847.
Research and Development. Research and development expenses
increased to $1,137,787 for the nine month period ended September 30,
2000, from $755,801 for the nine month period ended September 30, 1999,
an increase of $381,986. The increase is due almost entirely to an
expansion of our development team, whose work focuses on enhancing the
ATServer, LABORVIEW.com, and ATLink products, accounting for an
increase of $422,595 in research and development expenses.
Customer Support. Customer Support expenses increased to
$1,699,928 for the nine month period ended September 30, 2000, from
$1,041,411 for the nine month period ended September 30, 1999, a
difference of $658,517. This increase is due almost entirely to
additional headcount in this department and a corresponding increase in
compensation and related benefits of $553,652.
General and Administrative. General and administrative
expenses increased to $1,686,612 for the nine months ended September
30, 2000, from $1,324,699 for the nine month period ended September 30,
1999, an increase of $361,913. This increase is due to primarily to an
increase in compensation and related benefits of $65,826, an increase
in computer related costs of $105,486 (procuring infrastructure needs
such as servers, printers, peripherals, etc.), and an increase in
professional costs of $52,383.
Stock Option Compensation. Stock option compensation expenses
were $924,195 for the nine months ended September 30, 2000. There were
no stock option expenses recorded for the nine months ended September
30, 1999. This change, which did not affect cash, was incurred as a
result of the vesting of stock options.
<PAGE> 7
LIQUIDITY AND CAPITAL RESOURCES
In November, 2000, the Company modified its existing arrangement with
National City Bank to restructure the long-term nature to short-term and to
provide for more interim reporting. Through this arrangement the Company borrows
against accounts receivable to address liquidity needs pending customer
payments. The maximum currently available to us under this arrangement, in which
we are required to pay interest-monthly at the Bank's Base Rate plus 1%, (10.5%
as of November 15, 2000) is $2.0 million. As of November 15, 2000, we had drawn
a balance of approximately $1.8 million under this facility. We have also
borrowed $250,000 from the same bank as a short-term loan, with principal and
interest (also accruing at the Bank's Base Rate plus 1% (10.5% at November 15,
2000) due monthly.
In November of 2000, the Company signed a letter of intent to enter
into a commitment for a 1 year financing arrangement for $1.2 million from a
private investor. The investor will receive monthly interest payments of 12%, as
well as 50,000 warrants. The warrants have a 2 year exercise period, with a
$1.00 exercise price. The Company expects this agreement to be finalized by the
end of November, 2000.
During the second quarter of 1999, we established an equipment leasing
relationship with Primex, a private lending company. As of October 31, 2000,
we had leased equipment with an outstanding balance of $80,852 owing to Primex.
On May 2, 2000, we executed an equity placement of $2.0 million with a
private investor. Terms of this arrangement were 1,111,111 shares issued at
$1.80/share, with 300,000 warrants to be exercised over the ensuing two years at
$2.25 (100,000 warrants), $2.50 (100,000 warrants), and $2.75 (100,000
warrants). These funds are being used for working capital as well as funding the
repayment of the private financing and bridge financing noted below.
In November, 1999 we entered into a commitment for a 1 year financing
arrangement for up to $1.0 million from a private investor, of which $250,000
was borrowed in November of 1999, and another $250,000 was borrowed in December,
1999. The investor will receive a 10% fee on advances and quarterly interest
payments of 12%, as well as warrants to acquire 1 share for every dollar
advanced under this term loan. The warrants have a 2 year exercise period, with
a $.75 exercise price for the first year, and a $1.00 exercise price for the
second year.
Although we believe that operations, together with the financing
described above, will yield sufficient liquidity, no assurance can be given that
additional sources of capital will not be required. The Company would consider
working with the equity markets based on an acceptable strike price and certain
business conditions. Circumstances in which we would consider raising additional
capital include a desire for a stronger capital base, investment in product
development, acquisitions of companies with synergistic value, resource
procurement based on a definable implementation schedule or backlog, and/or
office space expansion. The extent to which such additional financing is
available will affect the level to which AdSys pursues these discretionary
growth actions.
<PAGE> 8
Advanced Systems International, Inc.
Notes to Consolidated Financial Statements
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions for Form 10-QSB and Article 10
of Regulation S-X. Accordingly, they do not contain all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
solely of normal recurring adjustments) considered necessary for a fair
presentation have been included. For further information, please refer to the
consolidated financial statements and footnotes thereto included in the
Company's Annual Report on Form 10-KSB, for the year ended December 31, 1999.
The results of operations for the three and nine month periods ended September
30, 2000 are not necessarily indicative of the results to be expected for the
full year.
NOTE B - INDUSTRY SEGMENTS
The Company's operations by business segment for the nine months ended September
30, 2000 is as follows (unaudited):
<TABLE>
<CAPTION>
Labor B2B Segment
Management e-Business Totals
-----------------------------------------------
<S> <C> <C> <C>
Revenues $ 4,905,507 $ 364,343 $ 5,269,850
Interest Expense 137,077 56,641 193,718
Depreciation and Amortization - 88,929 88,929
Net Loss (1,397,779) (332,784) (1,730,563)
Assets 3,607,010 177,861 3,784,871
Expenditures for Assets - - -
RECONCILIATION TO CONSOLIDATED AMOUNTS
NET LOSS
Net Loss for Reportable Segments $(1,730,563)
Unallocated Corporate Expenses (965,249)
----------------
$(2,695,812)
================
ASSETS
Total Assets for Reportable Segments $ 3,784,871
Corporate Assets 738,208
----------------
$ 4,523,079
================
<CAPTION>
Segment Consolidated
OTHER SIGNIFICANT ITEMS Totals Adjustments Totals
------------------------------------------------
<S> <C> <C> <C>
Depreciation and Amortization $88,929 $74,385 $163,314
Expenditures for Assets - 26,607 26,607
</TABLE>
<TABLE>
<CAPTION>
Long-Lived
GEOGRAPHIC INFORMATION Revenues Assets
-------------------------------
<S> <C> <C>
United States $ 4,864,813 $ 364,339
Canada 405,037 -
-------------------------------
$ 5,269,850 $ 364,339
===============================
</TABLE>
<PAGE> 9
Advanced Systems International, Inc.
Notes to Consolidated Financial Statements
NOTE B - INDUSTRY SEGMENTS (continued)
The Company's operations by business segment for the three months ended
September 30, 2000 is as follows (unaudited):
<TABLE>
<CAPTION>
Labor B2B Segment
Management e-Business Totals
--------------------------------------------------
<S> <C> <C> <C>
Revenues $ 1,383,173 $ 60,215 $ 1,443,388
Interest Expense 41,778 7,160 48,938
Depreciation and Amortization - 29,643 29,643
Net Loss (805,538) (141,191) (946,729)
Assets 3,607,010 177,861 3,784,871
Expenditures for Assets - - -
RECONCILIATION TO CONSOLIDATED AMOUNTS
NET LOSS
Net Loss for Reportable Segments $ (946,729)
Unallocated Corporate Expenses (56,071)
----------------
$(1,002,800)
================
ASSETS
Total Assets for Reportable Segments $ 3,784,871
Corporate Assets 738,208
----------------
$ 4,523,079
================
<CAPTION>
Segment Consolidated
OTHER SIGNIFICANT ITEMS Totals Adjustments Totals
----------------------------------------------
<S> <C> <C> <C>
Depreciation and Amortization $ 29,643 $ 25,759 $ 55,402
Expenditures for Assets - 5,227 5,227
<CAPTION>
Long-Lived
GEOGRAPHIC INFORMATION Revenues Assets
----------------------------------------
<S> <C> <C>
United States $ 1,289,270 $ 364,339
Canada 154,118 -
----------------------------------------
$ 1,443,388 $ 364,339
========================================
</TABLE>
<PAGE> 10
Advanced Systems International, Inc.
Notes to Consolidated Financial Statements
NOTE B - INDUSTRY SEGMENTS (continued)
The Company's operations by business segment for the nine months ended September
30, 1999 is as follows (unaudited):
<TABLE>
<CAPTION>
Labor B2B Segment
Management e-Business Totals
-------------------------------------------------
<S> <C> <C> <C>
Revenues $ 5,816,958 $ 280,485 $ 6,097,443
Interest Expense 125,340 - 125,340
Depreciation and Amortization - 56,700 56,700
Net Earnings (Loss) 947,405 (176,857) 770,548
Assets 2,514,694 299,019 2,813,713
Expenditures for Assets - - -
RECONCILIATION TO CONSOLIDATED AMOUNTS
NET EARNINGS
Net Earnings for Reportable Segments $ 770,548
Unallocated Corporate Expenses (67,631)
------------------
$ 702,917
==================
ASSETS
Total Assets for Reportable Segments $ 2,813,713
Corporate Assets 107,925
------------------
$ 2,921,638
==================
<CAPTION>
Segment Consolidated
OTHER SIGNIFICANT ITEMS Totals Adjustments Totals
--------------------------------------------
<S> <C> <C> <C>
Depreciation and Amortization $ 56,700 $ 67,652 $ 124,352
Expenditures for Assets - 115,923 115,923
<CAPTION>
Long-Lived
GEOGRAPHIC INFORMATION Revenues Assets
--------------------------------------------
<S> <C> <C>
United States $ 4,859,291 $ 545,517
Canada 1,238,152 -
--------------------------------------------
$ 6,097,443 $ 545,517
============================================
</TABLE>
<PAGE> 11
Advanced Systems International, Inc.
Notes to Consolidated Financial Statements
NOTE B - INDUSTRY SEGMENTS (continued)
The Company's operations by business segment for the three months ended
September 30, 1999 is as follows (unaudited):
<TABLE>
<CAPTION>
Labor B2B Segment
Management e-Business Totals
---------------------------------------------------
<S> <C> <C> <C>
Revenues $ 1,974,170 $ 158,638 $ 2,132,808
Interest Expense 27,646 - 27,646
Depreciation and Amortization - 28,350 28,350
Net Earnings (Loss) 110,127 (65,348) 44,779
Assets 2,514,694 299,019 2,813,713
Expenditures for Assets - - -
RECONCILIATION TO CONSOLIDATED AMOUNTS
NET EARNINGS
Net Earnings for Reportable Segments $ 44,779
Unallocated Corporate Expenses (23,555)
----------------
$ 21,224
================
ASSETS
Total Assets for Reportable Segments $ 2,813,713
Corporate Assets 107,925
----------------
$ 2,921,638
================
<CAPTION>
Segment Consolidated
OTHER SIGNIFICANT ITEMS Totals Adjustments Totals
------------------------------------------------
<S> <C> <C> <C>
Depreciation and Amortization $ 28,350 $ 23,555 $ 51,905
Expenditures for Assets - 479,335 479,335
<CAPTION>
Long-Lived
GEOGRAPHIC INFORMATION Revenues Assets
--------------------------------------------
<S> <C> <C>
United States $ 1,804,425 $ 545,517
Canada 328,383 -
--------------------------------------------
$ 2,132,808 $ 545,517
============================================
</TABLE>
<PAGE> 12
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
None.
Item 2. CHANGES IN SECURITIES
None.
Item 3. DEFAULTS UPON SENIOR SECURITIES
None.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
Items. OTHER INFORMATION
None.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27. Financial Data Schedule
(b) Reports on Form 8-K
None.
<PAGE> 13
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Advanced Systems International, Inc.
(the "Registrant")
Date: November 20, 2000 /s/ Robert C. DeMerell
Robert C. DeMerell
Chief Financial Officer (Principal
Financial and Accounting Officer)
<PAGE> 14
Exhibit Index
Exhibit No. Description
27 Financial Data Schedule
