SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
September 30, 1998
(Date of report)
SYNCRONYS SOFTCORP
(Exact name of registrant as specified in its charter)
Nevada 0-25736
(State or other jurisdiction of incorporation) (Commission file number)
33-0653223
(I.R.S. Employer Identification No.)
3958 Ince Boulevard
Culver City, California 90232
(Address of principal executive offices and zip code)
(310) 842-9203
(Registrant telephone number)
This Form 8-K consists of 12 pages
Page 1 of 12
Item 5. Other Events.
On September 15, 1998 Syncronys Softcorp filed its second Monthly Interim
Statement and Debtor in Possession Operating Report for the period: August 1,
1998 through August 31, 1998. Reports details listed under Item 7 following
this item.
Page 2 of 12
Item 7. Financial Statements and Exhibits.
Office of the United States Trustee
In re: Debtor in Possession Interim Statement
Syncronys Softcorp Statement Number: 2
Debtor For the period From: 1-Aug-98
Chapter 11 Case No: LA98-38413VZ To: 31-Aug-98
CASH ACTIVITY ANALYSIS (Cash Basis Only) General Payroll Tax
Account Account Account
A. Total Receipts per all Prior
Interim Statements $60,213.60 17,100.00 100.00
B. Less: Total Disbursements per all
Prior statements 29,276.48 16,237.22 0
C. Beginning Balance (A less B) 30,937.12 862.78 100.00
D. Receipts during Current Period See separate sheet
TOTAL RECEIPTS THIS PERIOD: 113,519.00 62,000.00 0
E. Balance Available (C plus D) 144,456.12 62,862.78 100.00
F. Less Disbursements during Current Period
(Attach Separate Listing if Necessary)
Date Check No. Payee/Purpose
See separate sheet
TOTAL DISBURSEMENTS THIS PERIOD: 131,636.15 62,245.18 0
G. Ending Balance (E less F) $12,819.97 $617.60 $100.00
H. (1) General Account:
(a) Depository Name and Location: Bank of America, 9453 Culver Bl.
Culver City, CA 90232
(b) Account Number: 15811 07930
(2) Payroll Account:
(a) Depository Name and Location: Bank of America, 9453 Culver Bl.
Culver City, CA 90232
(b) Account Number: 15817 07932
(3) Tax Account:
(a) Depository Name and Location: Bank of America, 9453 Culver Bl.
Culver City, CA 90232
(c) Account Number: 15817 07937
I. Other monies on hand (specify type and location) (i.e. Cert. Of Deposit)
$1,003 - CD, Bank of America 9453 Culver Bl. Culver City, CA 90232
I, Alan Hart, declare under penalty of perjury that the information contained in
The above Debtor in Possession Interim Statement is true and complete to the
best of my knowledge.
Dated: 9/15/1998 /s/Alan Hart
Accountant
Syncronys Softcorp
Debtor in Possession
Page 3 of 12
August 1, 1998 Through August 31, 1998 - Interim Statement
Bank Accounts
Date Type Description General Payroll Tax
Deposits
8/10/98 Deposit Misc. checks 3,761.41
8/10/98 Deposit On Line Sales 7/16/98 - 7/31/98 616.51
8/10/98 Deposit New Loan 100,000.00
8/12/98 Transf Transfer from General
Acc to Payroll Acc 45,000.00
8/13/98 Wire DepGuild Soft Incoming Wire 8,064.50
8/14/98 Deposit Deposit - Ingram Micro & ABC
(Collectio) 1,076.58
8/26/98 CK1043 Transfer from General Acc
to Payroll Acc 17,000.00
Total Receipts this period 113,519.00 62,000.00 0
Less transfers from general account N/A 62,000.00
Total Receipts less transfers $113,519.00 0 0
Disbursements
8/3/98 ED Bank Charges 68.34
8/4/98 CK1012 Rainer Poertner -
expense reimbursement 190.20
8/4/98 CK1013 Digilink - internet services 445.53
8/4/98 CK1014 RJ Young Design -
marketing consulting 1,875.00
8/7/98 CK1015 David Stephenson -
marketing consulting 2,500.00
8/10/98 CK1016 Trader Joe's -
misc. office supplies 109.96
8/10/98 CK1017 Rainer Poertner -
expense reimbursement 670.46
8/11/98 CK1018 Frontier Communications -
phone deposit 1,800.00
8/12/98 Transf Transfer from General Acc
to Payroll Acc 45,000.00
8/13/98 ED Aug 15, 1998 Payroll
Direct Deposits 12,494.68
8/13/98 DR Aug 15, 1998 Payroll
Direct Deposits 15,824.00
8/13/98 DR Aug 15, 1998 Payroll Tax
and W/H Deposit 5,552.46
8/14/98 C1050PR Payroll Check - Taylor 8,408.76
8/17/98 DR 401k for period ending Aug 15, 1998 562.50
8/12/98 CK1019 Void - for Bankruptcy Court
8/12/98 CK1020 Secretary of State -
NV - certificate 15.00
Page 4 of 12
8/12/98 CK1021 Secretary of State -
CA - certificate 6.00
8/13/98 CK1022 Secretary of State -
NV - filing fees 125.00
8/14/98 CK1023 Walter Doyle - Advance
against expenses 1,000.00
8/14/98 CK1024 Walter Doyle - Advance
against expenses 2,000.00
8/17/98 CK1025 Peter Rosen - Advance
against expenses 2,000.00
8/17/98 C1060PR Daniel Taylor's last paycheck 3,246.48
8/17/98 DR Payroll Taxes/withholding
Taylor Aug. 15, 1998 100.38
8/17/98 DR 401k for Taylor - last paycheck 207.70
8/17/98 CK1026 Southwestern Bell -
phone service deposit 225.00
8/18/98 CK1027 David Stephenson -
marketing consulting 2,500.00
8/18/98 CK1028 RJ Young Design -
marketing consulting 3,859.78
8/18/98 CK1029 Dori Calderon -
expense reimbursement 156.25
8/18/98 CK1030 Walter Doyle - Advance
against expenses 1,500.00
8/21/98 CK1031 Walter Doyle - Advance
against expenses 1,000.00
8/19/98 CK1032 Walter Doyle - Advance
against expenses 6,000.00
8/21/98 CK1033 Postmaster of Schaumburg,
IL - postage 500.00
8/21/98 CK1034 Brandi Flores -
expense reimbursement 100.00
8/21/98 CK1035 Frontier Communications -
phone bill 84.91
8/21/98 CK1036 Smart & Final -
misc. office supplies 128.12
8/21/98 CK1037 Southern California Water -
water bill 64.93
8/21/98 CK1038 Southwestern Bell -
phone bill 191.75
8/21/98 CK1039 David Stephenson -
marketing consulting 2,500.00
8/21/98 CK1040 Blue Cross of California -
health insurance 121.42
8/24/98 CK1041 Rainer Poertner -
consulting agreement 6,250.00
8/24/98 CK1042 Daniel Taylor -
consulting agreement 6,250.00
8/26/98 CK1044 Void
8/26/98 CK1045 QRS Software Services -
inventory purchase 673.50
8/26/98 CK1043 Transfer from General Acc
to Payroll Account 17,000.00
Page 5 of 12
8/27/98 CK1046 Walter Doyle -
Advance against expenses 2,500.00
8/28/98 CK1047 Walter Doyle -
Advance against expenses 750.00
8/28/98 CK1048 Thomas Brandon -
Advance against expenses 15,000.00
8/28/98 CK1049 Walter Doyle -
Advance against expenses 1,000.00
8/28/98 DR-PR Payroll Direct Deposit
Aug. 31, 1998 12,662.08
8/31/98 CK1050 David Stephenson -
marketing consulting 2,500.00
8/31/98 CK1051 R.J. Young Design -
marketing consultin 1,875.00
8/31/98 CK1052 Ingram Gore -
customer service consulting 1,100.00
8/31/98 DR-PR Payroll taxes/withholding -
Aug. 31, 1998 3,079.14
8/31/98 DR-PR Paychex Invoice 401K maintenance 107.00
Total Disbursements this period $131,636.15 $62,245.18 0
Less transfers to payroll account $62,000.00 N/A N/A
Total Disbursements less transfers $69,636.15 $62,245.18 0
Page 6 of 12
Office of the United States Trustee
In re: Debtor in Possession Operating Report Page 1 of 3
Syncronys Softcorp Report Number: 2
Debtor For the period From: 1-Aug-98
Chapter 11 Case No: LA98-38413VZ To: 31-Aug-98
1. Profit and Loss Statement (Accrual Basis only)
A. Related to Business Operations:
Gross Sales $ 5,194
Less: Sales Returns and Discounts 0
Net Sales 5,194
Less: Cost of Goods Sold:
Beginning Inventory at Cost 26,994
Add: Purchases 673
Less: Ending Inventory at Cost 26,321
Cost of Goods Sold 673
Gross Profit 4,521
Other Operating Revenues: 0
Less: Operating Expenses:
Officer Compensation 11,250
Salaries and Wages - Other Employees 30,167
Total Salaries and Wages 41,417
Employee Benefits and Pensions 3,068
Payroll Taxes 1,918
Real Estate Taxes 0
Federal and State Income Tax 0
Total Taxes 1,918
Rent and Lease Exp(Real & Personal Property) 0
Interest Expense (Mortgage, Loan, etc.) 0
Insurance 0
Automobile Expense 0
Utilities (Gas, Elect, Water, Phone) 192
Depreciation and Amortization 465
Repairs and Maintenance 181
Advertising 999
Supplies, Office Expenses, copies, etc.) 859
Bad Debts 0
Miscellaneous Operating Expenses: 49,065 (see attached sheet)
Total Operating Expenses 98,164
Net Gain/Loss from Business Operations (93,643)
B. Not Related to Business Operations:
Income:
Interest income 0
Other Non-Operating Revenue (Specify) 0
Gross Proceeds on Sale of Assets 0
Less: Original Cost of Assets plus
Expenses of Sale 0
Net Gain/Loss on Sale of Assets 0
Total Non-Operating Income 0
Expenses Not Related to Business Operations:
Legal and Professional Fees (Specify) 0
Other Non-Operating Expenses (Specify) 0
Total Non-Operating Expenses 0
NET INCOME/LOSS FOR PERIOD $(93,643)
Page 7 of 12
Syncronys Softcorp August 1998 Misc. Operating Expenses
Bank Charges 68.34
Consultants - G&A 25,000.00
Copier Lease 213.43
Corporate Fees 125.00
Courier (233.80)
Dues and Subscriptions 21.00
Postage 500.00
Telephone 3,252.56
Temporary personnel 163.57
Consultants - M&S 19,600.00
Consultants - Public Relations 354.52
Total Misc. Operating Expenses $49,064.62
Page 8 of 12
Debtor in Possession Operating Report No: 2 Page 2 of 3
2. Aging of Accounts Payable and Accounts Receivable (exclude pre-petition
accounts payable):
Accounts Payable Accounts Receivable
Current Under 30 Days $19,282 $ 2,975
Overdue 31 - 60 Days 3,002 0
Overdue 61 - 90 Days 0 0
Overdue 91 - 120 Days 0 0
Overdue Over 121 Days 0 0
TOTAL $22,284 $ 2,975
3. Statement of Status of Payments to Secured Creditors and Lessors:
N/A
4. Tax Liability:
Gross Payroll Expense for Period: $41,417
Gross Sales for Period Subject to Sales Tax: $ 0
Date Paid Amount Paid Post Petition
Taxes Owed
Federal Payroll & Withholding
Taxes 8/19,8/21/98 $3,576 $ 0
State Payroll & Withholding
Taxes 8/19/98 2,077 0
State Sales & use Tax N/A 0 0
Real Property taxes N/A 0 0
5. Insurance Coverage: Carrier/ Amount of Policy Premium
Agent Coverage Exp Date Paid Thru Date
Worker's Compensation ABD $1,000,000 10/20/98 7/15/98
Liability ABD 10,000,000 10/20/98 10/20/98
Fire & Extended Coverage ABD 1,000,000 10/20/98 10/20/98
Property ABD 200,000 10/20/98 10/20/98
Theft ABD 200,000 10/20/98 10/20/98
Life (Beneficiary): N/A
Vehicle ABD 30,000 10/20/98 10/20/98
Other (Specify):
D&O Excess ABD 2,500,000 10/27/98 8/4/98
D&O ABD 2,500,000 10/27/98 8/4/98
Debtor in Possession Operating Report No: 2 Page 3 of 3
Questions:
A. Has the Debtor in Possession provided compensation to any officers,
directors, shareholders, or other principals without the approval of the
Office of the United States Trustee?
: yes Explain:
X : No
Page 9 of 12
B. Has the Debtor in Possession, subsequent to the filing of the petition, made
any payments on its pre-petition unsecured debt, except as has been
authorized by the Court?
: yes Explain:
X : No
7. Statement of Unpaid Professional Fees (Post Petition Amounts Only)
N/A
8. Narrative Report of Significant Events and Events out of the Ordinary Course
of Business: (Attach separate sheet if necessary)
1. On August 11, 1998 the company announced it was able to secure interim
financing.
2. The company announced a new management team.
See press release (attached) from August 11, 1998
9. Quarterly Fees; (This fee must be paid to the United States Trustee every
calendar quarter)
N/A
I, Alan Hart, declare under penalty of perjury that the information contained
in the above Debtor in Possession Operating Report is true and complete to the
best
of my knowledge.
Dated: 9/15/98
/s/Alan Hart
Accountant
Syncronys Softcorp
Debtor in Possession
Page 10 of 12
FOR IMMEDIATE RELEASE (document attached to July 1998 interim statements and
filed with US Trustee's Office.)
August 11, 1998
Contact:
Walter Doyle, 310/842-9203
SYNCRONYS ANNOUNCES
Interim Financing Package and Management Change
Culver City, Calif., --(BUSINESS WIRE)--August 11, 1998 -- Syncronys Softcorp
(OTC BB:SYCR), a leading developer of utility software and exclusive publisher
of SFS(tm), SmartFiles System technology, Tuesday announced that it has secured
financing to assist the reorganization of the company's emergence from Chapter
11 bankruptcy. The company further announced the resignation of Rainer
Poertner, chief executive officer and president, and Daniel Taylor, chairman of
the board and executive vice president of marketing and secretary. Both
previous officers will remain as consultants to management and the new board of
directors during the transition.
The company has appointed three new board members. Management
responsibilities will be assumed by Walter D. Doyle and a professional team of
associates while the reorganization is underway. Doyle has an extensive
background in management of both private and public companies. He has been
appointed Syncronys's chairman of the board and chief executive officer.
Doyle stated that he anticipated the transition and reorganization of Syncronys
would proceed smoothly given the quality of the company's products and staff.
He further stated that he believes the company will emerge with a much stronger
business foundation with an exciting and diversified future.
The new management team will focus on:
* The release of the company's current products in final stages of development.
* The acquisition of other leading-edge software products to broaden the
company's current product line.
* The acquisition of companies whose business is intricately involved in the
Internet and other services related to the company's core products.
* Development of new revenue based upon a mix of software product sales and
Internet services.
* New and alternative (i.e. electronic) distribution of its products, which
will enhance existing distribution channels.
* Expansion of international product licensing and distribution.
* Commitment to increasing shareholder value with an emphasis on future
earnings per share.
The above mix of products, services and philosophy will be instrumental in
creating increased cash flows and operational profits.
Additional information will be provided to shareholders on each of the above
subjects as they become material in the company's day-to-day operations.
General information on Syncronys is also available at www.syncronys.com.
About Syncronys Softcorp
Syncronys Softcorp, with headquarters in Culver City, is the exclusive
publisher of the SFS SmartFiles System technology.
Syncronys' current product line, including UpgradeAID 98, BigDisk and Zipper,
are available at major retail locations across the United States and Canada
such as CompUSA, Computer City and Best Buy, as well as via corporate
resellers, direct marketing, and through OEM channels. Syncronys' products are
also available through the Syncronys online store at www.syncronys.com.
For more information about Syncronys Softcorp products, distribution outside of
the United States and Canada, and for volume discount pricing, call 310/842-
9203, 230. ### Page 11 of 12
SIGNATURES
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.
SYNCRONYS SOFTCORP
(Registrant)
Date: September 30, 1998 By: /S/ Walter D. Doyle
Walter D. Doyle
President/CEO
Page 12 of 12
