UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
- ----- SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: March 31, 2000
-------------------
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: 0-17118
-------------------------
Mark Solutions, Inc.
---------------------------------
(Exact Name of Registrant as Specified in Its Charter)
Delaware 11-2864481
--------------- -----------------
(State or Other Jurisdiction (I.R.S. Employer
of Incorporation) Identification No.)
Parkway Technical Center
1515 Broad Street
Bloomfield, New Jersey 07003
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (973) 893-0500
----------------------------
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report
Indicate by check whether 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 registrant was required to
file such reports), and (2) has been subject to such filing requirements for the
past 90 days. Yes X No
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
Common Stock, as of the latest practicable date:
Common Stock, $ .01 par value: 7,279,571 shares outstanding as of May 15, 2000.
The registrant is obligated to issue up to an additional 69,500 shares of Common
Stock, which have not been issued due to prohibitions on beneficial ownership.
<PAGE>
MARK SOLUTIONS, INC.
Form 10-Q
for
Quarter Ended March 31, 2000
Index
Part I. Financial Information Page No.
Item 1. Financial Statements
Consolidated Balance Sheets as of
March 31, 2000 and June 30, 1999. . . 3-4
Consolidated Statements of Operations
for the Nine Months and Three Months Ended
March 31, 2000 and 1999 . . . . . . . . 5
Consolidated Statements of Cash Flows
for the Nine Months Ended March 31,
2000 and 1999 . . . . . . . . . . . . . . . 6
Notes to Consolidated Financial Statements . . . 7-8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations. 9-12
Part II. Other Information
Item 2. Changes in Securities and Use of Proceeds . . . 13
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . 13
Signatures 13
2
<PAGE>
Mark Solutions, Inc. and Subsidiaries
Consolidated Balance Sheets
<TABLE>
<CAPTION>
Asset
March 31, 2000 June 30, 1999
-------------- -------------
<S> <C> <C> <C> <C>
Current Assets:
Cash and cash equivalents $ 502,709 $ 298,167
Note receivable 224,844 250,000
Accounts receivable 4,353,050 4,744,459
Costs and estimated earnings in excess of
billings on uncompleted contracts 452,612 1,006,955
Deferred tax asset 548,477 500,000
Prepaid expenses 32,295 64,706
----------- ----------
Total Current Assets 6,113,987 6,864,287
Property and equipment, net 1,389,300 1,224,110
Other Assets:
Cost in excess of net assets
of business acquired less accumulated
amortization of $804,768 and $647,313 at
March 31, 2000 and June 30, 1999,
respectively 244,923 402,378
Deferred tax asset - 500,000
Other assets 90,804 79,939
----------- ----------
Total Other Assets 335,727 982,317
--------- -----------
Total Assets $7,839,014 $9,070,714
========== =========
</TABLE>
3
<PAGE>
Mark Solutions, Inc. and Subsidiaries
Consolidated Balance Sheets
<TABLE>
<CAPTION>
Liabilities and Stockholders' Equity
March 31, 2000 June 30, 1999
----------------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
Current Liabilities:
Accounts payable $2,776,739 $3,617,608
Current maturities of long-term debt 490,882 365,000
Current portion of obligations under capital leases 109,186 87,292
Due to related parties 34,311 177,977
Notes payable to officers/stockholders 200,000 375,000
Deferred revenues - 655,874
Litigation settlement 250,000 300,000
Accrued liabilities 167,108 253,299
----------- -----------
Total Current Liabilities 4,028,226 5,832,050
Other Liabilities:
Long-term debt excluding current maturities 14,133 369,961
Long-term portion of obligations under capital leases 115,794 135,017
Convertible notes 950,000 -
------------ -----------
Total Other Liabilities 1,079,927 504,978
Commitments and Contingencies - -
Stockholders' Equity:
Common stock, $.01 par value, 50,000,000
shares authorized, 6,858,873 and 5,525,296
shares issued and outstanding at March 31, 2000
and June 30, 1999, respectively 68,589 55,253
Preferred stock, $1.00 par value, $10 liquidation
value; 5,000,000 shares authorized:
Series A; authorized and issued 122,000 shares;
-0- and 24,000 outstanding at March 31, 2000
and June 30, 1999 respectively - 24,000
Series B; authorized and issued 153,000
shares; -0- and 6,000 outstanding at March
31, 2000 and June 30, 1999 respectively - 6,000
Series D; authorized and issued 20,000 shares;
20,000 and -0- outstanding at March
31, 2000 and June 30, 1999 respectively 20,000 -
Additional paid-in capital 36,191,083 34,432,927
Deficit (33,666,905) (31,916,792)
Accumulated other comprehensive income 168,796 183,000
Treasury stock, at cost; 17,500 shares at
March 31, 2000 and June 30, 1999 (50,702) (50,702)
------------ ------------
Total Stockholders' Equity 2,730,861 2,733,686
---------- ----------
Total Liabilities and Stockholders' Equity $7,839,014 $9,070,714
========== ==========
</TABLE>
4
<PAGE>
Mark Solutions, Inc. and Subsidiaries
Consolidated Statement of Operations
<TABLE>
<CAPTION>
Nine Months Nine Months Three Months Three Months
Ended Ended Ended Ended
March 31, 2000 March 31, 1999 March 31, 2000 March 31, 1999
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Revenues:
Sales $ 11,917,198 $ 5,573,978 $ 3,370,496 $ 2,637,461
------------------ --------------------- ----------------- ----------------
Costs and Expenses:
Cost of sales 9,013,121 3,500,422 3,837,156 2,352,575
General, and
administrative expenses 2,095,446 1,823,328 695,382 732,161
Marketing costs 1,274,132 722,675 523,544 304,756
Software costs 1,033,263 895,548 325,293 345,269
Amortization expense 157,455 157,455 52,485 52,485
Litigation settlement 275,000 2,000 - -
------------------ --------------------- ----------------- ----------------
Total Costs and Expenses 13,848,417 7,101,428 5,433,860 3,787,246
------------------ --------------------- ----------------- ----------------
Operating Income(Loss) (1,931,219) (1,527,450) (2,063,364) (1,149,785)
------------------ --------------------- ----------------- ----------------
Other Income (Expenses):
Interest income 76,273 51,458 55,199 7,143
Other income 124,220 -- 124,220
Interest expense (169,387) (37,500) (49,967) (16,736)
Loss on sale of securities - (6,216) - (6,216)
Imputed Interest expense on
convertible debentures - (109,667) - (54,833)
------------------ --------------------- ----------------- ----------------
31,106 (101,925) 129,452 (15,809)
------------------ --------------------- ----------------- ----------------
Income before Income Tax Benefit $ (1,900,113) $ (1,629,375) $ (1,933,912) $ (1,165,594)
Income Tax Benefit 150,000 1,200,000 1,200,000
------------------ --------------------- ---------------- ----------------
Net Income(Loss) $ (1,750,113) $ (429,375) $ (1,933,912) $ 34,406
=================== ==================== ================ ================
Basic Earnings(Loss) Per Share $ (0.30) $ (0.09) $ (0.31) $ 0.01
=================== ==================== ================= ================
Fully Dilutes Income(Loss)Per Share $ (0.30) $ (0.09) $ (0.31) $ 0.01
=================== ==================== ================= ================
Weighted Average Number of
Basic Shares Outstanding 5,835,964 4,800,758 6,307,144 4,752,898
=================== ==================== ================= ================
Weighted Average Number of
Fully Diluted Shares Outstanding 5,835,964 4,800,758 6,307,144 5,515,044
=================== ==================== ================= ================
Dividends Paid $ - $ - $ - $ -
=================== ==================== ================= ================
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
Mark Solutions, Inc. and Subsidiaries
Consolidated Statements of Operations
Nine Months Nine Months
Ended Ended
March 31, 2000 March 31, 1999
------------------ -------------------
<S> <C> <C>
Cash Flows From Operating Activities:
Net loss $(1,750,113) $ (429,375)
Adjustments to reconcile net loss to net cash
used for operating activities:
Depreciation and amortization 454,243 312,819
Deferred Imputed interest on convertible debentures - 109,667
Securities issued for services 235,270 -
Securities issued for litigation 250,000 -
Deferred tax asset 451,523 (1,200,000)
(Increase) decrease in assets:
Restricted cash - 1,234,005
Accounts Receivable 391,409 (1,628,972)
Notes Receivable 25,156 (250,000)
Inventory - (380,988)
Billing in excess of contract revenue recognized 554,343 (528,227)
Other current assets 32,411 110,909
Other assets (10,865) (32,871)
Increase (decrease) in liabilities:
Accounts payable (840,869) 1,270,856
Due to related parties (143,666) 98,249
Deferred revenue (655,874) -
Litigation settlement payable 50,000 -
Customer deposits - 83,506
Accrued liabilities (86,191) (15,317)
Net adjustments to reconcile net loss to
----------- ----------
net cash provided by (used for)operating activities 606,890 (816,364)
Net Cash Provided by (Used for)
----------- ----------
Operating Activities 1,143,223 (1,245,739)
----------- ----------
Cash Flows From Investing Activities:
Acquisition of property and equipment (477,758) (508,867)
Net Cash (Used for)
----------- ----------
Investing Activities (477,758) (508,867)
----------- ----------
Cash Flows From Financing Activities:
Collection of subscriptions receivable - 1,231,000
Proceeds from sale of stock 260,000 -
Proceeds from warrant conversions 1,024,323 -
Increase in short term borrowing - 425,000
Proceeds of equipment loans less repayments (227,275) (11,223)
Repayment of notes payable officer (175,000) -
Proceeds from convertible debentures 950,000 -
Deposit on stock repurchase - (222,000)
Debt issue costs - (109,667)
Payment of stock related costs (6,525) (25,169)
Purchase of treasury stock - (50,702)
----------- ----------
Net Cash Provided by Financing Activities 1,825,523 1,237,239
----------- ----------
Net increase(decrease) in Cash 204,542 (517,367)
Cash and Cash Equivalents at Beginning of Period 298,167 564,577
----------- ----------
Cash and Cash Equivalents at End of Period $ 502,709 $ 47,210
=========== ==========
</TABLE>
6
<PAGE>
Mark Solutions, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Note 1 INTERIM FINANCIAL INFORMATION
The consolidated balance sheet of the Company as of March 31, 2000, the
consolidated statement of operations for the nine months and three months
ended March 31, 2000 and 1999 and the consolidated statements of cash flows
for the nine months ended March 31, 2000 and 1999 are unaudited and have
been prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form 10-Q
and Rule 10-01 of Regulation S-X. In the opinion of management, all
adjustments (which include only normal recurring accruals) necessary to
present fairly the financial position, results of operations and cash flows
have been included.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. The June 30, 1999 balance sheet
data is derived from the audited consolidated financial statements. The
attached financial statements should be read in connection with the
consolidated financial statements and notes hereto included in the
Company's Annual Report on Form 10-K for the year ended June 30, 1999.
Certain reclassifications have been made to the current and prior year
amounts to conform to the current period presentation.
Note 2 INVENTORIES
Basic earnings (loss) per common share is computed by dividing the net
earnings by the weighted average number of shares of common stock
outstanding during the period. Dilutive earnings per share gives
effect to stock options and warrants which are considered to be dilutive
common stock equivalents.
Note 4 CONVERTIBLE DEBENTURES
On April 14, 2000, Mark effected a $2,250,000 private placement (the
"Private Placement") to three investors, considering of (i) $2,250,000
two-year principal amount convertible notes (the "Convertible Notes") and
(ii) warrants to purchase 450,000 shares of Common Stock (the "Warrants").
As partial consideration, the investors exchanged $1,250,000 in short-term
debt for $1,250,000 principal amount of Convertible Notes and 250,000
Warrants.
7
<PAGE>
Mark Solutions, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Note 3 SEGMENT INFORMATION
The Company's two industry segments are modular steel cells for the
corrections industry and software applications for the medical industry.
The following is a summary of selected consolidated financial information
for the Company's industry segments:
<TABLE>
<CAPTION>
Modular
Steel Medical Intersegment
Products Products Charges Total
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Nine Months Ended March 31, 2000
Revenues $10,309,574 $ 1,607,624 $ - $11,917,198
Interest income 586,448 964 (511,139) 76,273
Interest expense 160,850 519,676 (511,139) 169,387
Depreciation and amortization 219,205 77,583 157,455 454,243
Segment pre-tax profit 573,336 (2,315,994) (157,455) (1,900,113)
Segment assets 17,355,631 1,206,195 (10,722,812) 7,839,014
Capital expenditures 228,991 248,767 - 477,758
Nine Months Ended March 31, 1999
Revenues $ 4,622,834 $ 951,144 $ - $ 5,573,978
Interest income 420,697 968 (370,207) 51,458
Interest expense 140,596 217,074 (210,503) 147,167
Depreciation and amortization 83,169 72,195 157,455 312,819
Segment pre-tax profit 226,092 (1,525,903) (329,564) (1,629,375)
Segment assets 13,620,247 790,371 (7,807,382) 6,603,236
Capital expenditures 303,058 205,809 - 508,867
</TABLE>
The following table presents revenues by country based on the location of
the use of the product or service:
3/31/00 3/31/99
-------- --------
United States $10,548,043 $ 5,045,581
Norway 667,000 -
Korea 135,524 -
Spain 257,263 296,275
United Kingdom 228,768 150,667
Turkey 80,600 81,455
Ireland 145,000 -
----------- -----------
$11,917,198 $ 5,573,978
=========== ===========
The following table presents long-lived assets by country based on the
location of the assets:
3/31/00
-------
United States $ 955,346
United Kingdom 433,954
-----------
$ 1,389,300
===========
8
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
General
Mark's results of operations, liquidity, and working capital position have
been historically impacted by sporadic sales of its principal products, modular
steel cells and IntraScan II PACS software.
Mark's modular steel cell is an alternative to traditional construction
methods, and penetration into the construction market has met resistance
typically associated with an unfamiliar product. Accordingly, Mark has been, and
will continue to be, subject to sales fluctuations until its modular cell
technology obtains broader acceptance in the construction market. Based on the
increase in the number of projects being designed for steel cells, management
believes its cells are receiving greater market acceptance as a viable
alternative to concrete. Mark continues to promote it steel cells to the
architectural, engineering, and construction communities by making sales
presentations, participating in trade shows, conducting selected direct mail
campaigns and engaging in other marketing activities.
Mark has increased its steel cell marketing expenditures to more
aggressively pursue projects and to persuade the construction industry to
increase the use of steel cells. Mark believes this investment has been
successful to date and is necessary to achieve profitability. Mark will continue
to review its overhead and personnel expenses based on operating results and
prospects.
Mark is continually bidding on and soliciting joint venture opportunities
regarding construction projects. For its fiscal year ending June 30, 2000 Mark
expects to bid on approximately $10,000,000 in cell projects which are specified
steel only, and $5,000,000, which include steel as an equal to concrete.
Revenues from any major project would substantially improve Mark's operating
results and cash flow, although no assurances can be given that any of these
projects will be awarded to Mark.
For the nine months ended March 31, 2000, Mark was awarded $9,838,000 of
the $10,600,000 in correctional cell projects it bid on, lost $300,000 and
remains under consideration for the balance of the projects.
MarkCare markets the IntraScan II PACS software as part of comprehensive
PACS proposals made by MarkCare's strategic partners. MarkCare's principal
marketing partner is Data General Corporation, a subsidiary of EMC Corporation.
In response to increased interest from its strategic partners and prospective
customers, MarkCare accelerated its development and marketing efforts. Sales of
the IntraScan II PACS software began to generate material revenues in the fiscal
year ended June 30, 1999 and management expects these revenues to increase
during fiscal 2000 although no assurances can be given in this regard. If the
IntraScan marketing plan is successful, management believes
9
<PAGE>
that the revenues will be more constant then those presently generated by
modular steel cell sales, and will reduce fluctuations in Mark's consolidated
results of operations and financial condition.
Results of Operations
The substantial majority of Mark's operating revenues for the reported
periods were derived from the sale of its modular steel cells. For the three
months ended March 31, 2000, modular steel cells represented 89.4% of total
operating revenue. Management believes that the sale of cells will continue to
represent a majority of Mark's operating revenues through June 30, 2000.
Revenues from sales for the three months ended March 31, 2000, increased
27.8% to $3,370,496 from $2,637,461 for the comparable period. This increase is
attributable to additional modular steel cell projects.
Cost of sales for the three months ended March 31, 2000, consisting of
materials, labor and fixed factory overhead expense increased by 70.0% to
$3,998,243 from $2,352,575 for the comparable period. Cost of sales as a
percentage of revenues was 118.6% for the three months ended March 31, 2000 as
compared to 89.2% for the prior comparable period. This increase is due to labor
overruns on several projects being manufactured simultaneously to meet
deadlines. In addition, Mark recorded a significant charge for installation on
one project due to unforeseen site conditions. These installation costs were
estimated at $250,000, as compared to actual costs running approximately
$700,000. Mark is attempting to recoup some of these cost overruns from its sub
contractor.
General and administrative expenses for the three months ended March 31,
2000, decreased 5.0% to $695,382 from $732,161 for the comparable period. The
decrease is attributable to a reduction in general overhead costs and the
reallocation of resources to marketing and development.
Marketing costs for the three months ended March 31, 2000, increased 71.8%
to $523,544 from $304,756 for the comparable period. This increase in due to the
expanded marketing efforts for its two products, modular steel cells and
IntraScan II PACS software.
Software costs for the three months ended March 31, 2000 related to
IntraScan II PACS, decreased 5.8% to $325,293 from $345,269 for the comparable
period. Mark has stabilized its development costs and has focused working
capital on marketing its IntraScan II PACS software and related items in
response to increased interest from distributors and potential customers.
Revenues from sales for the nine months ended March 31, 2000, increased
113.8% to $11,917,198 from $5,573,978 for the comparable period. This increase
is attributable to increases in both modular steel cell and IntraScan II PACS
10
<PAGE>
software projects. For the nine months ended March 31, 2000, modular steel cells
represented 86.5% of total operating revenue.
Cost of sales for the nine months ended March 31, 2000, consisting of
materials, labor and fixed factory overhead expense increased by 157.5% to
$9,013,121 from $3,500,422 for the comparable period. Cost of sales as a
percentage of revenues was 75.6% for the nine months ended March 31, 2000 as
compared to 62.8% for the prior comparable period. This increase is due to labor
overruns on several projects being manufactured simultaneously to meet
deadlines. In addition, Mark recorded a significant charge for installation on
one project due to unforeseen site conditions. These installation costs were
estimated at $250,000, as compared to actual costs running approximately
$700,000. Mark is attempting to recoup some of these cost overruns from its sub
contractor.
General and administrative expenses for the nine months ended March 31,
2000, increased 14.9% to $2,095,446 from $1,823,328 for the comparable period.
The increase is attributable to the additional staffing in response to sales
growth and prospects in both business segments.
Marketing costs for the nine months ended March 31, 2000, increased 76.3%
to $1,274,132 from $722,675 for the comparable period. This increase is due to
the expanded marketing efforts for its two products, modular steel cells and
IntraScan II PACS software.
Software costs for the nine months ended March 31, 2000 related to
IntraScan II PACS, increased 15.4% to $1,033,263 from $895,548 for the
comparable period. Mark has stabilized its development costs and has focused
working capital on marketing its IntraScan II PACS software and related items in
response to increased interest from distributors and potential customers.
Liquidity and Capital Resources
Mark's working capital requirements result principally from staff and
management overhead, office expense and marketing efforts. Mark's working
capital requirements have historically exceeded its working capital from
operations due to sporadic sales. Accordingly, Mark has depended on and, absent
continued improvements in operations, will depend on new capital in the form of
equity or debt financing to meet its working capital deficiencies, although no
assurances can be given that such financing will be available. Mark believes its
present available working capital from existing contracts and from anticipated
contracts is sufficient to meet its operating requirements through December 31,
2000. If Mark requires additional capital, it will continue to principally look
to private sources.
Mark did not maintain any inventory at March 31, 2000 and June 30, 1999.
While Mark presently does not have any material commitments for capital
expenditures, management believes that its working capital requirements for
inventory and other manufacturing related costs will significantly increase with
increases in product orders.
11
<PAGE>
For the nine months ended March 31, 2000, Mark had negative cash flow from
operating activities of $1,143,223, most of which is attributable to the net
operating loss sustained for the period.
For the nine months ended March 31, 2000, Mark had negative cash flow from
investing activities of $477,758, all of which is attributable to the purchase
of property and equipment. Mark has no present intention of making any
acquisition, which would have a material negative or positive effect on cash
flow.
For the nine months ended March 31, 2000, financing activities provided
$1,825,523 in cash, principally due to the proceeds from stock sales, the
exercise of warrants and the sale of convertible debentures.
Cash and cash equivalents increased from $298,167 at June 30, 1999 to
$502,709 at March 31, 2000 due to proceeds from stock and debenture sales;
warrant exercises, offset by a loss from operations. Working capital increased
to $2,085,761 at March 31, 2000 from $1,032,237 at June 30, 1999 primarily due
to proceeds from stock and debenture sales; warrant exercises, offset by
operating losses.
Forward Looking Statements
Except for the historical information contained herein, the matters
discussed in this report are forward looking statements under the federal
securities law. These statements are based on current plans and expectations of
Mark and involve risks and uncertainties that could cause actual future
activities and results of operations to be materially different from those set
forth in the forward-looking statements. Important factors that could cause
actual results to differ include whether cell and PACS projects are awarded to
Mark and the timing of their completion, timely collection of receivables,
meeting current and future financial requirements, competition and changes in
PACS related technology.
Year 2000 Disclosure
After an evaluation and analysis of its operations, including its financial
and operational computer systems applications, Mark has concluded no material
adverse effect on its operations will occur due to Year 2000 software failures.
To the extent modifications are required, management believes the related costs
will not materially affect Mark's financial position.
12
<PAGE>
PART II
OTHER INFORMATION
Item 2. Changes in Securities and Use of Proceeds
On March 2, 2000, Mark agreed to reduce the exercise price of warrants to
purchase 343,750 shares of Common Stock from $6.00 to $2.00 per share and
warrants to purchase 62,500 from $3.00 to $2.00 per share. All of the warrants
were subsequently exercised.
In January 2000, an investor notified Mark of his intention to exercise an
option to purchase 20,000 shares of preferred stock each convertible into Common
Stock at $10.00 per preferred share divided by 75% of the trading price and
warrants to purchase 25,000 shares of Common Stock at $6.00 per share. On
January 19, 2000, Mark agreed to issue 100,000 shares of Common Stock in lieu of
the convertible preferred stock and also issued the warrants.
In February 2000, Mark issued 186,500 shares of Common Stock to ten
persons and entities as compensation for services rendered or material provided.
Each of the foregoing transactions was effected in reliance on the
registration exemption provided by Section4 (2) of the Securities Act as not
involving a public offering due to the limited nature of the offering and the
individuals' relationship with Mark.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit No. Exhibit Description
27.1 Financial Data Schedule
(b) Reports on Form 8-K for the Quarter ending March 31, 2000
Date of Report Item Reported
April 14, 2000 5. Other events
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed by the undersigned thereunto
duly authorized.
Date: May 15, 2000
MARK SOLUTIONS INC.
By:/s/ Michael Nafash
-----------------------
Chief Financial Officer
13
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000807397
<NAME> Mark Solutions, Inc.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> MAR-31-2000
<CASH> 502,709
<SECURITIES> 0
<RECEIVABLES> 4,577,894
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 6,113,987
<PP&E> 3,871,762
<DEPRECIATION> 2,485,978
<TOTAL-ASSETS> 7,839,014
<CURRENT-LIABILITIES> 4,028,226
<BONDS> 115,935
0
20,000
<COMMON> 68,589
<OTHER-SE> 2,642,272
<TOTAL-LIABILITY-AND-EQUITY> 2,730,861
<SALES> 11,917,198
<TOTAL-REVENUES> 11,917,198
<CGS> 9,013,121
<TOTAL-COSTS> 13,848,417
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 169,387
<INCOME-PRETAX> (1,900,113)
<INCOME-TAX> (150,000)
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,750,113)
<EPS-BASIC> (.30)
<EPS-DILUTED> (.30)
</TABLE>
