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, 1995
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:(908) 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, 1995
- ----------------------- ------------------------------
Common Stock, par value 15,806,898
$.001 per share
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
The accompanying 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, 1995.
Moreover, these 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 financial statements
at, and for the fiscal year ended January 31, 1995.
The results reflected for the three months ended April 30, 1995 are not
necessarily indicative of the results for the entire fiscal year.
<PAGE>
Multi Solutions, Inc and Subsidiary
CONSOLIDATED BALANCE SHEETS
April 30, January 31,
1995 1995
(Unaudited)
----------- -----------
ASSETS
CURRENT ASSETS
Cash $ -- $ 18,342
Accounts receivable(net of allowance of
$32,880 and $37,063 respectively) 116,411 95,791
Prepaid expenses and other current assets 21,457 17,310
----------- -----------
137,868 131,443
FURNITURE AND EQUIPMENT, AT COST
Research and development equipment 368,382 368,382
Office furniture and other 111,550 111,550
----------- -----------
479,932 479,932
Less accumulated depreciation and amortization 474,098) (473,666)
----------- -----------
5,834 6,266
OTHER ASSETS
Capitalized software and development costs 1,702,546 1,613,516
Less accumulated amortization (965,639) (886,605)
----------- -----------
736,907 726,911
$ 880,609 $ 864,620
=========== ===========
<PAGE>
Multi Solutions, Inc. and Subsidiary
CONSOLIDATED BALANCE SHEETS
April 30, January 31,
1995 1995
LIABILITIES AND STOCKHOLDERS' DEFICIENCY (Unaudited)
----------- -----------
CURRENT LIABILITIES
Notes payable $ 50,695 $ 53,729
Accrued payroll 53,079 31,190
Payroll and other taxes payable 77,706 78,607
Accounts payable and accrued expenses 403,690 414,303
Deferred Compensation due officers/shareholders 437,935 371,713
Accrued Officer Compensation 194,788 152,246
Deferred revenues 267,332 289,391
Loans from officers 2,900 22,000
----------- -----------
1,488,125 1,413,179
DEFERRED REVENUES-Net of Current Portion 190,169 200,886
STOCKHOLDERS' DEFICIENCY
Common stock, authorized 40,000,000 shares
$ .001 Par Value
Issued and outstanding: 15,806,898 (1995) and
15,257,198 (1994) Respectively 15,807 15,807
Additional paid-in capital 8,420,537 8,420,537
Accumulated deficit (9,234,029) (9,185,789)
----------- -----------
(797,685) (749,445)
$ 880,609 $ 864,620
=========== ===========
<PAGE>
Multi Solutions, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
April 30,
1995 1994
------------ ------------
Revenues
License fees $ 143,058 $ 27,460
Maintenance Revenue 128,857 12,846
Consulting and other fees 2,289 153,817
------------ ------------
Total revenues 274,204 194,123
Operating expenses
Software development and
technical support 74,470 94,743
Selling and administrative expenses 246,991 202,168
------------ ------------
Total expenses 321,461 296,911
Loss from operations (47,257) (102,788)
Other Income (Expenses)
Interest expense (983) (6,264)
Loss on Disposal of leasehold improvements
Special discount to investors
Other income
------------ ------------
NET LOSS $ (48,240) $ (109,052)
============ ============
Weighted average number of shares outstanding 15,846,240 15,226,807
============ ============
Loss per share NIL NIL
============ ============
<PAGE>
Multi Solutions, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended
April 30,
1995 1994
--------- ---------
<S> <C> <C>
Cash flows from operating activities
Net loss $ (48,240) $(109,052)
Adjustments to reconcile net loss to net cash
provided (used) by operating activities
Depreciation and amortization 79,466 60,858
Common stock issued as compensation to officers -- --
Discount to investors -- --
Changes in assets and liabilities
Decrease (increase) in accounts receivable (20,620) 96,428
(Increase) decrease in prepaid expenses and other current assets (4,147) (4,282)
Increase in accrued payroll 21,889 (34,460)
(Decrease) in payroll and other taxes payable (901) --
Increase (decrease) in accounts payable and accrued expenses (10,612) (100,054)
Increase (decrease) in accrued officer compensation 42,540 --
Increase in deferred compensation 66,222 --
(Decrease) increase in deferred revenues (22,059) 95,118
Increase (decrease) in long term deferred revenues (10,716) --
--------- ---------
Net cash provided by operating activities 92,822 4,556
Cash flows from investing activities
Capitalized software development cost (89,030) (93,441)
Net cash used in investing activities (89,030) (93,441)
--------- ---------
Cash flows from financing activities
Net (repayments) borrowings under loan and line of credit ageements (22,134) 55,431
--------- ---------
Net cash provided by (used in) financing activities (22,134) 55,431
Net (decrease) in cash (18,342) (33,454)
Cash at beginning of year 18,342 33,454
Cash at end of year $ -- --
========= =========
</TABLE>
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Results of Operations
Three months Ended April 30, 1995 Compared to three months ended April 30, 1994
Revenues for the current three months of fiscal year 1995 increased 80,081 or
41.2% compared with the comparable period of the prior year. The increase in
revenues is attributable to increased license and maintenance fees as a result
of customer requests for product updates, technical assistance and support.
Operating expenses as a percent of revenues for the three month period was
117.2% compared with 153.% for the comparable period of the prior year. The
decrease in operating expenses as a percent of revenues was primarily
attributable to the higher revenue volume and a reduction in technical support
salaries,offset by an increase in Selling and Administrative expenses.
The operating loss, before other income (expense) of $47,257 for the current
three month period decreased $55,531 compared with the comparable period of the
prior year. Other income (expense) for the current three month period was ($983)
as compared with ($6264) for the comparable period of the prior year.
For the current three month period , a net loss of $48,240 or ($.00) cents per
share was incurred compared with a net loss of ($109,052) or ($.00) cents per
share an decrease of $60,812.
Major Customers
In the first three months of 1995, IBM accounted for 31.25% of total
revenues. In the first three months of 1994, American International Group
accounted for 12% of total revenues.
Liquidity and Capital Resources
At April 30, 1995, the Company had a negative working capital position of
($1,350,257); and has been experiencing cash flow problems.
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, Multi Soft broadened its product base into the
Windows environment and has made its Windows based products easier to learn and
use.
Multi Soft has entered into an International Software Licensing Agreement
with IBM which grants IBM the non-exclusive rights and license to market an
extended runtime version of Multi Soft's WCL product as an IBM logo product.
This IBM EXTENDED VERSION of Multi Soft's WCL is named IMS Client Server(TM) for
Windows. It provides remote presentation support for IMS. Multi Soft and IBM
also have entered into International Marketing Agreements to market Multi Soft's
WCL Toolkit under the name IMS Client Server Toolkit(TM) for Windows in the
<PAGE>
United States, Puerto Rico, the Asian Pacific Region, Europe, the Middle East
and Africa and Canada.
In addition, 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 WCL(TM). 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.
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 the Company
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.
Effect of Inflation
Management believes that inflation has not had a material effect on its
operations for the periods presented.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Exhibits and Reports on Form 8-K
(a) Exhibits
27. Financial Data Schedule
(b) Reports on Form 8-K
<PAGE>
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.
Dated: November 3, 1995
By: /s/ Charles J. Lombardo
-----------------------------------------
Charles J. Lombardo, Chief Executive Officer,
Chief Financial Officer and Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-31-1996
<PERIOD-END> APR-30-1995
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 149,291
<ALLOWANCES> 32,880
<INVENTORY> 0
<CURRENT-ASSETS> 137,868
<PP&E> 479,932
<DEPRECIATION> 474,098
<TOTAL-ASSETS> 880,609
<CURRENT-LIABILITIES> 1,488,125
<BONDS> 0
<COMMON> 15,807
0
0
<OTHER-SE> (813,492)
<TOTAL-LIABILITY-AND-EQUITY> 880,609
<SALES> 143,058
<TOTAL-REVENUES> 274,204
<CGS> 0
<TOTAL-COSTS> 74,470
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 983
<INCOME-PRETAX> (48,240)
<INCOME-TAX> 0
<INCOME-CONTINUING> (48,240)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (48,240)
<EPS-PRIMARY> 0.00
<EPS-DILUTED> 0.00
</TABLE>
