UNITED STATES
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 March 31, 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 0-14273
INTEGRATED SPATIAL INFORMATION SOLUTIONS, INC.
(Exact name of registrant as specified in its charter)
COLORADO 84-0868815
(State or other jurisdiction of (I.R.S. Employer
- ------------------------------- ----------------
incorporation or organization) Identification No.)
13119 Professional Drive, Jacksonville, FL 32225
------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(904) 220-4747
--------------
(Registrant's telephone number, including area code)
--------------------------------------------------------------------------
(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. [X] Yes [ ] No
11,496,571 Common Shares were outstanding as of March 31, 1999.
Number of pages in this report is 13.
<PAGE>
Table of Contents
Part I, Financial 3
Consolidated Balance Sheet 3
Consolidated Statement of Operations 5
Consolidated Statements of Cash Flow 6
Notes to Consolidated Financial Statements 7
Management Discussion and Analysis 9
Part II Other Information 12
Signature Page 13
2
<PAGE>
Part 1
Financial Statements
Integrated Spatial Information Solutions, Inc., and Subsidiary
Condensed and Consolidated Balance Sheet
(Unaudited)
March 31, 1999
--------------
Assets
Current:
Cash and Cash Equivalents $ 281,180
Accounts receivable (net of allowance) 2,058,728
Land and building, held for resale, net 1,067,144
Restricted cash 100,000
Prepaid expenses and other 135,136
------------
Total current assets 3,642,188
------------
Property and Equipment:
Land and building under capital lease - related party 1,866,667
Equipment and furniture 477,995
Leased assets 289,234
------------
2,633,896
Less accumulated depreciation (546,212)
------------
Net property and equipment 2,087,684
------------
Other Assets
Goodwill, net of accumulated amortization 4,792,403
Other 82,795
------------
Total other assets 4,875,198
------------
$ 10,605,070
------------
See accompanying notes to financial statements
3
<PAGE>
Integrated Spatial Information Solutions, Inc., and Subsidiary
Condensed and Consolidated Balance Sheet
(Unaudited)
March 31, 1999
--------------
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable - current portion $ 893,281
Obligations under capital leases - related party - current 153,906
Accounts payable 954,627
Accrued expenses 724,227
Deferred revenue 196,740
Client prepayment 237,914
------------
Total current liabilities 3,160,695
------------
Long-term liabilities:
Notes payable, less current maturities 314,032
Obligations under capital leases - related party 1,878,355
------------
Total long-term liabilities 2,192,387
------------
Total liabilities 5,353,082
------------
Commitments and Contingencies
Stockholders' Equity
Cumulative convertible preferred stock,
$.001 par value, 20,000,000 shares authorized,
590 shares issued and outstanding 1
Common stock, no par value, 2,000,000,000
shares authorized, 11,958,123 shares issued
and outstanding 12,635,423
Additional paid-in capital 3,760,549
Accumulated deficit (11,143,985)
------------
Total stockholders' equity 5,251,988
------------
$ 10,605,070
------------
See accompanying notes to financial statements
4
<PAGE>
<TABLE>
<CAPTION>
Integrated Spatial Information Solutions, Inc., and Subsidiary
Condensed and Consolidated Statements of Operations
(Unaudited)
Six months ended Three months ended
March 31, March 31,
---------------------------- ---------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues $ 3,965,879 $ 3,674,381 $ 1,910,811 $ 1,873,452
Cost of sales
Salaries and employee benefits 2,558,684 2,481,372 1,255,311 1,209,978
Direct contract costs 630,267 621,424 281,569 296,373
Other operating costs 1,229,879 1,744,672 595,521 921,531
------------ ------------ ------------ ------------
Total costs and expenses 4,418,830 4,847,468 2,132,401 2,427,882
------------ ------------ ------------ ------------
Operating loss (452,951) (1,173,087) (221,590) (554,430)
Other income (expense):
Interest expense (289,784) (198,653) (158,424) (103,947)
Other income 1,264 77,099 761 120,613
Gain on litigation settlement 414,312 -- 414,312 --
------------ ------------ ------------ ------------
Total other income (expense) 125,792 (121,554) 256,649 16,666
------------ ------------ ------------ ------------
Net income (loss) from continuing operations (327,159) (1,294,641) 35,059 (537,764)
Income (loss) from discontinued operations -- (41,802) -- 68,157
------------ ------------ ------------ ------------
Net income (loss) (327,159) (1,336,443) 35,059 (469,607)
------------ ------------ ------------ ------------
Preferred stock dividends (24,482) (14,910) (12,241) --
Deemed preferred stock dividends -- (83,333) -- --
------------ ------------ ------------ ------------
Income (loss) attributable to common stockholders $ (351,641) $ (1,434,686) $ 22,818 $ (469,607)
------------ ------------ ------------ ------------
Basic income (loss) per common share:
Income (loss from continuing operations attributable
to common stockholders (.03) (.14) -- (.05)
Income (loss) from discontinued operations -- -- -- (.04)
------------ ------------ ------------ ------------
Income (loss) attributable to common stockholders (.03) (.15) -- (.04)
------------ ------------ ------------ ------------
Weighted average number of shares of common stock outstanding 11,694,988 9,395,562 11,932,481 10,481,942
------------ ------------ ------------ ------------
Diluted income (loss) per common share:
Income (loss) from continuing operations attributable
to common stockholders (.03) (.14) -- (.05)
Income (loss) from discontinued operations -- -- -- (.04)
------------ ------------ ------------ ------------
Income (loss) attributable to common stockholders (.03) (.15) -- (.04)
------------ ------------ ------------ ------------
Weighted average number of shares of common stock outstanding 11,694,988 9,395,562 20,003,219 10,481,942
------------ ------------ ------------ ------------
See accompanying notes to financial statements
5
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Integrated Spatial Information Solutions, Inc., and Subsidiary
Condensed and Consolidated Statements of Cash Flow
(Unaudited)
For the Six months ended March 31,
----------------------------------
1999 1998
---- ----
Operating activities:
<S> <C> <C>
Net loss $ (327,159) $(1,336,443)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 403,455 384,941
Stock options and warrants issued for services performed 19,886 255,824
Gain on litigation settlement (414,312) --
Gain on sale of assets and miscellaneous (11,304) --
Decrease in land and building held for resale (16,378) --
Write off accumulated depreciation due to discontinued operations -- (129,002)
Decrease in accounts receivable 509,995 188,466
Decrease in accrued settlement liability (64,685) (42,003)
Decrease in other assets 40,778 54,291
Increase (decrease) in accounts payable 272,747 (506,618)
Decrease in accrued expenses (134,097) (209,907)
Increase (decrease) in deferred revenue 83,694 (132,035)
Increase in client prepayments 237,914 --
----------- -----------
Net cash generated (used) by operating activities 600,534 (1,472,486)
----------- -----------
Investing activities:
Purchase (disposition) of equipment (31,436) 2,445
Receipt from sale of assets -- 1,100,000
----------- -----------
Net cash (used) provided by investing activities (31,436) 1,102,445
----------- -----------
Financing activities:
Payments on checks written against future deposits (207,650) (106,332)
Proceeds of borrowings 60,000 --
Payment of debt (195,313) (4327,151)
Issuance of common stock -- 138,643
Issuance of convertible preferred stock -- 212,500
----------- -----------
Net cash used by financing activities (342,963) (182,340)
----------- -----------
Net increase (decrease) in cash 226,135 (552,381)
Cash and cash equivalents, beginning of period 55,045 582,326
----------- -----------
Cash and cash equivalents, end of period $ 281,180 $ 29,945
=========== ===========
See accompanying notes to financial statements
6
</TABLE>
<PAGE>
Integrated Spatial Information Solutions, Inc.
and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) Condensed Consolidated Financial Statements
The condensed consolidated financial statements included herein have been
prepared by the Company without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission. The Company believes that the
disclosures are adequate to make the information presented not misleading. In
the opinion of management, the accompanying unaudited consolidated financial
statements contain all adjustments (consisting only of normal recurring
adjustments) necessary to present fairly the Company's consolidated financial
position as of March 31, 1999, the consolidated results of its operations for
the six-month periods ended March 31, 1999, and 1998 and statements of cash
flows for the six-month periods then ended.
The accounting policies followed by the Company are set forth in the annual
report of September 30, 1998, filed on Form 10-KSB, as amended, and the audited
consolidated financial statements therein with the accompanying notes thereto.
While management believes the procedures followed in preparing these
consolidated financial statements are reasonable, the accuracy of the amounts
are in some respects dependent upon the facts that will exist, and procedures
that will be accomplished by the Company later in the year.
The consolidated results of operations for the three and six-month period ended
March 31, 1999, are not necessarily indicative of the results to be expected for
the full year ending September 30, 1999.
(2) Accounts Receivable
Accounts receivable contain amounts computed under the cost-to-cost method to
determine percentage of completion as described in the Form 10-KSB for September
30, 1998.
(3) Provision for Income Taxes
At the beginning of the fiscal year the Company had net operating loss
carryforwards of $6.0 million with expirations through 2018. At March 31, 1999,
the amount of the net operating loss carryforward balance is estimated at $6.4
million. The Company expects to incur a minimal amount of alternative minimum
tax for the fiscal year. Since the Company is unable to determine that deferred
tax assets exceeding tax liabilities are more likely than not to be realized, it
will record a valuation allowance equal to the excess deferred tax assets at
fiscal year end.
(4) Litigation
During the quarter, the Company and the Defense Logistics Agency settled the
appeal of reprocurement costs for a deminimis amount. As a result, after
consideration of related legal costs, the Company has reduced the previously
recorded reserve and recorded income of $414,312. (See also Item 3, Legal
Matters, and Note 5, Litigation, to the financial statements in Form 10-KSB, as
amended, for September 30, 1998.)
(5) Lease Obligations
The Company leases various equipment as well as facilities under capital leases
that expire through the year 2011 as noted in Note 7 to the Financial Statements
in Form 10-KSB, as amended, September 30, 1998.
7
<PAGE>
(6) Subsequent Events
On April 9, 1999 the Company completed the sale of its real property in
Franktown, Colorado.
7. Accounting for Preferred Stock Convertible at a Discount to the Market.
The prior year statement of operations gives effect for a discount of 25% of the
common stock which would result and be deemed to be additional dividend to the
holders of the Company's 6% convertible preferred stock sold on October 14,
1997. That convertible preferred stock was convertible into common stock at a
25% discount to the five day average market price of the common stock
immediately preceding the conversion date which was lower than the five day
average market price at the date of placement. This difference, $83,333 for the
prior year first quarter, on the first possible date of conversion is an imputed
discount and is deemed to be additional dividend available to the holders of the
preferred stock which reduced prior year first quarter income available to
common stock shareholders. Accordingly, it was deducted from cumulative net
income to arrive at net income attributable to common shareholders. All of the
convertible preferred stock from the October 1997 placement has since been
converted into common stock.
8. Earnings Per Share.
Earnings per share are calculated in accordance with the provisions of Statement
of Financial Accounting Standard No. 128 --"Earnings per Share" (SFAS Nor. 128).
SFAS No. 128 provides for the calculation of "Basic" and "Diluted" earnings per
share. Basic earnings per share includes no dilution for unissued shares and is
computed by dividing income or loss available to common shareholders by the
weighted average number of common shares outstanding for the period. Diluted
earnings per share reflects the potential dilution attributable to the potential
issue of additional securities that could share in the earnings of an entity and
known as fully diluted earnings per share. No computation of diluted loss per
share is displayed when such computation would result in a reduced net loss per
share for a period.
Calculation of basic and diluted earnings per share for the periods presented
are displayed below:
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
----------------------------- -----------------------------
March 1999 March 1998 March 1999 March 1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Basic Earnings (loss) per common share:
Numerator:
Income (loss) from
continuing operations $ (327,159) $ (1,294,641) $ 35,069 $ (537,784)
Income (loss) from dis-
continued operations -- (41,802) -- 68,157
Preferred stock dividends (24,482) (14,910) (12,241) --
Deemed preferred
stock dividends -- (83,333) -- --
------------ ------------ ------------ ------------
Income (loss) attributable to
common shareholders $ (351,641) $ (1,434,686) $ 22,818 $ (469,607)
============ ============ ============ ============
Denominator:
Weighted average common
shares outstanding 11,094,988 9,395,562 11,932,481 10,481,942
============ ============ ============ ============
Per share amounts:
Income (loss) from
continuing operations $ (0.03) $ (0.14) $ -- $ (0.05)
Income (loss) from dis-
continued operations -- -- -- 0.01
------------ ------------ ------------ ------------
8
<PAGE>
Basic earnings (loss) $ (0.03) $ (0.15) $ -- $ (0.04)
============ ============ ============ ============
Diluted earnings (loss) per common share:
Numerator
Income (loss) from
continuing operations $ (327,159) $ (1,294,641) $ 35,069 $ (537,784)
Income (loss) from dis-
continued operations -- (41,802) -- 68,157
------------ ------------ ------------ ------------
Income (loss) attributable to
common shareholders $ (351,641) $ (1,434,686) $ 22,818 $ (469,607)
============ ============ ============ ============
Denominator:
Weighted average common
shares outstanding 11,094,988 9,395,562 11,932,481 10,481,942
Effect of dilutive securities:
Stock options -- -- 4,672,096 --
Warrants -- -- 1,495,416 --
Conversion of convertible
preferred stock outstanding -- -- 1,903,226 --
------------ ------------ ------------ ------------
Weighted average of common
Shares and assumed conver-
sions outstanding 11,694,988 9,395,562 20,003,219 10,481,942
============ ============ ============ ============
Per share amounts:
Income (loss) from
continuing operations $ (0.03) $ (0.14) $ -- $ (0.05)
Income (loss) from dis-
continued operations -- -- -- 0.01
------------ ------------ ------------ ------------
Income (loss) attributable to
common shareholders $ (0.03) $ (0.15) $ -- $ (0.04)
============ ============ ============ ============
</TABLE>
PART 1, ITEM 2: MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OPERATIONS
Forward-Looking Statements. This quarterly report contains certain
forward-looking statements that describe the future business, prospects, actions
and possible results of Integrated Spatial Information Solutions, Inc. (the
"Company") and the expectations of the Company and its management which are not
historical facts and therefore constitute forward-looking statements as
contemplated in the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Such statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
set forth. As a result, there also can be no assurance that the forward-looking
statements included herein will prove to be accurate or that the objectives and
plans of the Company will be achieved.
Financial Condition:
Liquidity. Cash increased $226,135 to a total of $281,180 from $55,045 at
September 30, 1998. The increase was primarily from increased cash generated
from operations.
Presently, the Company has working capital of approximately $481,493 versus
negative working capital of $1,493,458 a year prior. The primary reason for this
improvement is the reclassification of $1,076,371 to current assets representing
the Company's real property in Franktown, Colorado in light of the lessee's
exercise of his purchase option. The Company and the lessor completed the
transaction subsequent to the end of this reporting period. In addition,
renegotiation of a note resulting in $314,032 reclassified to long term
liabilities and the net effect of the litigation settlement eliminating $414,312
of a previously recorded reserve further improved working capital.
9
<PAGE>
The Company's current ratio of total current assets to current liabilities
increased to 1.15:1 from .60:1 a year ago although it represented a slight
decrease from 1.20:1 at September 30, 1998.
As a result of losses from operations and limited working capital, the Company's
ability to timely meet payment due dates could be in question. Management's plan
to continue the operation of the Company includes: negotiation of an asset based
line of credit, the negotiation of a credit facility for additional acquisition
and operating capital needs; and raising funds through additional debt or equity
instruments, of which there can be no assurance. The Company further believes it
will experience increased cashflows from new contract awards on which revenue
producing work has begun; and that it will curb the cost of operations coupled
with an additional contingency plan to generate further cost reductions and
improved cash flows to insure the viability of the Company.
Capital Resources. During the fourth quarter of the prior fiscal year the
Company sold a total of 700 shares of convertible preferred stock in a private
offshore transaction which resulted in net funding of approximately $463,000.
On February 9, 1999 the Company was verbally advised by a representative of the
lending institution the institution was withdrawing its previous commitment
letter for a line of credit . The Company is in discussions with two other
institutions for asset based source of working capital. The Company has
established strong relations with investment banking entities. Accordingly,
management believes it may be able to secure a credit facility large enough to
support its near term acquisition program and required working capital.
The Company's long-term liquidity requirements may be significant in order to
implement its acquisition plans. There can be no guarantee sufficient funds can
be secured to achieve these plans.
Results of Operations:
First Half of Fiscal Year 1999
Revenue for the first half of FY 1999 amounted to $3,965,879 and was generated
entirely by the Company's operating subsidiary whose primary activity is in the
area of geographic information systems. This revenue reflects an increase of 8%
over the first half of the prior fiscal year.
Total consolidated costs and expenses reached $4,418,830 or 122.2% of revenue.
Approximately $759,463 of this amount was related to parent company general and
administrative costs, down from $1,079,840 during the prior year period. Of the
parent company amount, approximately $196,000 represented acquisition
amortization expense. The remainder was related to the subsidiary's GIS
operations and reflects a significant decrease from the costs for the same
period of the prior year. The decline in GIS related costs resulted from
management actions to control costs in response to the current level of revenue
generation.
Interest expense increased over that of the prior year by $91,131 as a result of
increased interest costs related to the Company's Franktown real property, which
has been subsequently sold (see Note 6, Subsequent Events, above). Accordingly,
interest expense is expected to decrease in the ensuing quarter.
There were no transactions from discontinued operations during the period
Second Quarter of Fiscal Year 1999
Revenue of $1,910,811 for the second quarter of FY 1999 resulted entirely from
the Company's operating subsidiary, PlanGraphics, Inc., engaged in geographic
information systems activities. This level of current quarter revenue represents
an increase of two percent over the same period of the prior year.
10
<PAGE>
The Company's total costs and expenses were $2,132,401 or 111.6% of revenue.
This represented a decrease of $295,481 from the prior year; an improvement of
12.2 %. This amount reflects approximately $386,010 in reductions to other
operating costs and a 5% reduction to direct contract costs. These reductions
are partially offset by slight increases in salaries and employee benefits.
The operating loss decreased by $332,840 to $221,590 from last fiscal year's
second quarter total of $554,430 reflecting management's efforts to improve
operations.
Interest expense increased over that of the prior year by $54,477 as a result of
an increased rate of interest connected with the new mortgage on the Company's
former manufacturing facility.
Other income decreased from the prior year amount reflecting the absence of
certain nonrecurring credits.
There were no transactions from discontinued operations during the period.
First Half of Fiscal Year 1998
Revenue for the first half of FY 1998 amounted to $3,674,381 and was generated
entirely by the Company's GIS operating subsidiary and is not comparable with
restated revenue of nil for the first half of the prior fiscal year. This level
of revenue reflected a decline of about 27% from the subsidiary's revenue for
the same period of the prior year. This decline from the subsidiary's prior year
level of operations for the same period resulted from the winding down of a
significant long-term contract and a delay in the commencement of work on
replacement contract activity.
Total consolidated costs and expenses reached $4,847,471 or 131.9% of revenue.
Approximately $1,079,840 was related to parent company general and
administrative costs and was not comparable to reported costs for the prior year
which resulted from discontinued operations of the Company. Of this amount,
approximately $257,363 was related to actions resulting from acquisition
activities; and $196,000 of acquisition amortization expenses were also
recorded. The balance was related to GIS operations and reflected a decrease
from the costs for the same period, a year prior which were not publicly
reported. The decline in GIS related costs resulted from management actions to
reduce staffing and operating costs in response to the temporary decline in
revenue.
Interest expense increased over that of the prior year by $128,889 as a result
of the interest costs added from the GIS subsidiary acquired late in the fourth
quarter of FY 1997. However, trend analysis of both parent and subsidiary
interest expenses for the current period compared to interest expenses for the
same period of FY 1997 reveals a decrease of 78% for the parent company due to
certain leased manufacturing equipment costs no longer occurring because of the
divestiture of manufacturing assets and due to the retirement of the SBA-held
note and a decrease of about 15% in subsidiary generated interest expenses
resulting from retirement of certain debt.
Other expense increased over the prior year total primarily due to acquisition
expenses.
Discontinued operations total reflected a decrease in expenses related to the
discontinued manufacturing operations.
Second Quarter of FY 1998.
Revenue for the second quarter of FY 1998 amounted to $1,873,452 and was
generated entirely by the Company's GIS operating subsidiary and was not
comparable with restated revenue of nil for the second quarter of the prior
fiscal year (Fiscal year 1997). This level of quarterly revenue reflects a
decline of approximately 25% from the subsidiary's revenue for the same period
of the prior year. This decline from the subsidiary's prior year level of
operations for the same quarter resulted from the winding down of a significant
long-term contract and a delay in the commencement of work on replacement
contract activity. It was, however, a very slight increase over the previous
quarter revenue.
11
<PAGE>
Total consolidated costs and expenses for the Company reached $2,427,882 or
129.6% of revenue. Approximately $314,100 was related to parent company general
and administrative costs and was not comparable to reported costs for the prior
year which resulted from discontinued operations of the Company. Of this amount,
approximately $125,000 was related to actions resulting from acquisition
activities and $98,000 was attributable to amortization of acquisition expenses.
The balance, $1,965,000, was related to GIS operations and reflected a decrease
from the costs for the same period of the prior year prior and were not publicly
reported. The decline in GIS related costs resulted from management actions to
reduce staffing and operating costs in response to the temporary decline in
revenue.
Interest expense had increased over that of the prior year by $64,333 as a
result of the interest costs added from the GIS subsidiary acquired late in the
fourth quarter of FY 1997. However, trend analysis of both parent company
interest ($6,452) and subsidiary interest ($88,254) for the current quarter
compared to interest expenses for the same period of FY 1997 reveals a decrease
of 78% for the parent company due to certain leased equipment costs no longer
occurring because of the divestiture of manufacturing assets and due to the
retirement of SBA-held note and a decrease of 15% in subsidiary generated
interest expenses resulting from retirement of certain debt.
Other expense increased over the prior year total primarily due to acquisition
related expenses.
Discontinued operations total reflects a decrease in expenses related to the
discontinued manufacturing operations.
Contract Backlog
The Company's has reported a backlog of GIS contracts and work assignments
totaling approximately $6.5 million compared to $8.0 million of uncompleted work
in the backlog for the prior year.
PART II- OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
See Note 4.
ITEM 2. CHANGES IN SECURITIES
During the current quarter, a holder of convertible preferred stock submitted
100 shares of preferred stock for which the Company issued 461,552 shares of
common stock in exchange. The holder has 590 shares of convertible preferred
stock remaining.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not Applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not Applicable.
ITEM 5. OTHER INFORMATION.
Not Applicable.
12
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8K.
Exhibits filed since the beginning of the current quarter:
Exhibit 10.6 Executive Employment Agreement between the Company and Robert S.
Vail, filed as part of Form 10-KSB on January 13, 1999.
Reports on Form 8-K filed since the beginning of the current quarter:
Not applicable.
SIGNATURE
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.
Integrated Spatial Information Solutions, Inc.
Dated: May 16, 1999 /S/ Fred Beisser
------------ -----------------
Frederick G. Beisser
Vice President-Finance & Administration,
Secretary & Treasurer and Principal Financial
Accounting Officer
13
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 281,180
<SECURITIES> 0
<RECEIVABLES> 2,058,728
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,642,188
<PP&E> 2,633,896
<DEPRECIATION> (546,212)
<TOTAL-ASSETS> 10,605,070
<CURRENT-LIABILITIES> 3,160,095
<BONDS> 0
0
0
<COMMON> 12,635,423
<OTHER-SE> (7,383,436)
<TOTAL-LIABILITY-AND-EQUITY> 10,605,070
<SALES> 0
<TOTAL-REVENUES> 3,965,879
<CGS> 0
<TOTAL-COSTS> 4,418,830
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (289,784)
<INCOME-PRETAX> (327,129)
<INCOME-TAX> (327,129)
<INCOME-CONTINUING> (327,129)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (327,159)
<EPS-PRIMARY> (.03)
<EPS-DILUTED> (.03)
</TABLE>
