[TYPE] 8-K
[DESCRIPTION]FORM 8-K
<PAGE> 1
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
Date of Report (Date of earliest event reported): May 22, 1998
INTERNATIONAL META SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
Delaware 000-17945 33-0146747
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation
or organization)
7718 Wood Hollow Drive, Suite 150
Austin, Texas 78731
(Address of principal executive office)
Issuer's telephone number: 512-795-8825
Item 5 Other Events
International Meta Systems, Inc. (the "Company"), is filing herewith the
Monthly Operating Report of Debtor-in-Possession for the Period ended April 30,
1998, that the Company filed with the United States Bankruptcy for the Western
District of Texas, Austin Division, on May 22, 1998, in connection with the
Company's ongoing proceeding under chapter 11 of the U.S. Bankruptcy Code (Case
No. 98-10782FM).
Item 7 Financial Statements and Exhibits
(c) Exhibits
99.1 Monthly Operating Report
1
<PAGE> 2
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 hereunto duly authorized.
INTERNATIONAL META SYSTEMS, INC.
Date: May 27, 1998 /s/ Lee Hoevel
--------------- -------------------------------
Lee Hoevel, President
2
<PAGE> 1
UNITED STATES BANKRUPTCY COURT
WESTERN DISTRICT OF TEXAS
AUSTIN DIVISION
CASE NAME: INTERNATIONAL META SYSTEMS, INC. Petition Date: 3/2/98
CASE NUMBER: 98-10782-FM
CORRECTED
MONTHLY OPERATING REPORT SUMMARY FOR MONTH APRIL YEAR 1998
<TABLE>
<CAPTION>
MONTH 3/31/98 4/30/98
<S> <C> <C>
REVENUES (MOR-6) $115,000.00 $115,000.00
INCOME BEFORE INT, DEPREC./TAX (MOR-6) ($367,164.36) ($378,805.85)
NET INCOME (LOSS)(MOR-6) ($467,008.95) ($396,838.17)
PAYMENTS TO INSIDERS (MOR-9) $ 26,058.82 $ 23,147.05
PAYMENTS TO PROFESSIONALS (MOR-9) 0 0
TOTAL DISBURSEMENTS (MOR-8) $369,679.46 $495,545.85
</TABLE>
***The original of this document must be filed with the United States Bankruptcy
Court and a copy must be sent to the United States Trustee***
<TABLE>
<CAPTION>
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXP.
DATE
- -------------------------------------- -----
<S> <C> <C>
CASUALTY YES(X)NO( ) 5-1-99
LIABILITY YES(X)NO( ) 5-1-99
VEHICLE YES( )NO( ) n/a
WORKER'S YES(X)NO( ) 5/1/99
OTHER: Medical,
Disability YES(X)NO( ) 7/1/98 TO 6/1/99
Dental, Life, D&O
</TABLE>
CIRCLE ONE
Are all accounts receivable being collected within terms? Yes No X
Are all post-petition liabilities, including taxes, being paid within terms?
Yes X No
Have any pre-petition liabilities been paid? Yes X No
If so, describe
Small balances of withheld payroll taxes paid inadvertently by payroll
processing company
Are all funds being deposited into DIP bank accounts? Yes X No
Were any assets disposed of outside the normal course of business? Yes No X
If so, describe
Are all U.S. Trustee Quarterly Fee Payments current? Yes X No
What is the status of your Plan of Reorganization? Pending
I certify under penalty of perjury that the following complete Monthly Operating
Report (MOR), consisting of MOR-1 through MOR-9 plus attachments, is true and
correct.
SIGNED /S/ Terry Kearns
-----------------------------
(ORIGINAL SIGNATURE)
TITLE Controller
-----------------------------
ATTORNEY NAME: ERIC J. TAUBE
FIRM: HOFFMAN & TAUBE, L.L.P.
ADDRESS: 100 CONGRESS AVENUE, SUITE 1600
CITY, STATE, ZIP: AUSTIN, TEXAS 78702
TELEPHONE: (512) 472-5997
FAX: (512) 472-5248
MOR-1
<PAGE> 2
CASE NAME: INTERNATIONAL META SYSTEMS, INC. CASE NUMBER: 98-10782-FM
COMPARATIVE BALANCE SHEETS
<TABLE>
<CAPTION>
FILING DATE* MARCH 31, 1998 APRIL 30, 1998
ASSETS 3/2/98
<S> <C> <C> <C>
CURRENT ASSETS
Cash $ 1,979 $ 8,528 $ 18,910.25
Accounts Receivable, Net $ 596,612 $ 591,943 $ 588,915.19
Inventory: Lower of Cost of Market 0 0 0
Prepaid Expenses $ 229,444 $ 138,685 $ 123,174.81
Investments 0 0 0
Other $ 91,340 0 0
TOTAL CURRENT ASSETS $ 919,375 $ 739,156 $ 731,000.25
PROPERTY, PLANT&EQUIP,@COST $2,345,826 $2,361,303 $2,427,558.19
Less Accumulated Depreciation $ 933,624 $ 999,868 $1,036,792.90
NET BOOK VALUE OF PP & E $1,412,202 $1,361,435 $1,390,765.29
OTHER ASSETS:
1. Tax Deposits 0 0 0
2. Investments in Subs 0 0 0
3. Pending Software Lease Deposit $ 250,000 $ 250,000 $ 250,000
4. Patents $ 130,151 $ 104,644 $ 102,808
TOTAL ASSETS $2,711,728 $2,455,235 $2,474,573.54
</TABLE>
*Per SCHEDULES and STATEMENT OF AFFAIRS--correction pending
MOR-2 Revised:6/14/96
<PAGE> 3
CASE NAME: INTERNATIONAL META SYSTEMS, INC. CASE NUMBER: 98-10782-FM
COMPARATIVE BALANCE SHEETS
<TABLE>
<CAPTION>
LIABILITIES & OWNERS FILING DATE* MARCH 31, APRIL 30
EQUITY 3/2/98 1998 1998
<S> <C> <C> <C>
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 0 $ 293,242 $ 698,716
PRE-PETITION LIABILITIES:
Notes Payable-Secured $ 3,392,544 $ 3,392,544 $3,392,544
Priority Debt $ 192,043 $ 191,769 $ 191,769
Federal Income Tax $ 997 0 0
FICA/Withholding $ 261 0 0
Unsecured Debt $ 4,379,292 $ 4,379,292 $4,379,292
Other 0 0 0
TOTAL PRE-PETITION LIABILITIES $ 7,965,137 $ 7,963,605 $7,963,605
TOTAL LIABILITIES $ 7,965,137 $ 8,256,847 $8,662,321
OWNER'S EQUITY (DEFICIT):
PREFERRED STOCK 0 0 0
COMMON STOCK $ 3,965 $ 3,965 $ 3,965
ADDITIONAL PAID-IN CAPITAL $19,027,008 $18,945,226 $18,956,517
RETAINED EARNINGS: Filing Date ($24,284,382) ($24,284,382) ($24,284,382)
RETAINED EARNINGS: Post Filing Date 0 (467,009) $ (863,847)
TOTAL OWNER'S EQUITY (NET WORTH) ($5,253,409) ($5,801,612) ($6,187,747)
TOTAL LIABILITIES &
OWNER'S EQUITY $ 2,711,728 $ 2,455,235 $ 2,474,574
</TABLE>
*Per SCHEDULES and STATEMENT OF AFFAIRS--correction pending
MOR-3 Revised:6/14/96
<PAGE> 4
CASE NAME: INTERNATIONAL META SYSTEMS, INC. CASE NUMBER: 98-10782-FM
SCHEDULE OF POST-PETITION LIABILITIES
<TABLE>
<CAPTION>
March 31 April 30
1998 1998
<S> <C> <C>
TRADE ACCOUNTS PAYABLE $ 16,558 $ 12,500
- ----------------------
TAX PAYABLE:
Federal Payroll Taxes 0 0
State Payroll & Sales 0 0
Ad Valorem Taxes 0 0
Other Taxes $ 1,063 $ 1,063
TOTAL TAXES PAYABLE $ 1,063 $ 1,063
SECURED DEBT POST-PETITION $210,420 $600,420
ACCRUED INTEREST PAYABLE $ 28,093 $ 7,365
*ACCRUED PROFESSIONAL FEES: $ 23,490 $ 29,428
OTHER ACCRUED LIABILITIES:
1. Deferred Compensation $ 846 $ 846
2. Accrued Vacation $( 4,169) $ 9,099
3. Accrued Payroll $ 16,941 $ 37,995
TOTAL POST-PETITION
LIABILITIES (MOR-3) $293,242 $698,716
--------------------------------------- ---------
</TABLE>
*Payment Requires Court Approval.
MOR-4 Revised:6/14/96
<PAGE> 5
CASE NAME: INTERNATIONAL META SYSTEMS, INC. CASE NUMBER: 98-10782-FM
AGING OF POST-PETITION LIABILITIES
April 30, 1998
<TABLE>
<CAPTION>
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES AD-VALOREM, OTHER
OTHER TAXES
<S> <C> <C> <C> <C> <C> <C>
0-30 $453,955 $12,500 0 0 $1,063 $441,455
31-60 $244,761 0 0 0 0 $243,698
61-90 0 0 0 0 0 0
91+ 0 0 0 0 0 0
TOTAL $698,716 $12,500 0 0 $1,063 $685,153
</TABLE>
AGING OF ACCOUNTS RECEIVABLE
<TABLE>
<CAPTION>
MONTH MARCH 31, 1998 APRIL 30, 1998
<S> <C> <C>
0-30 DAYS $ 85,531 $ 82,503
31-60 DAYS 0 0
61-90 DAYS 0 0
91 + DAYS $506,412 $506,412
TOTAL $591,943 $588,915
</TABLE>
MOR-5
<PAGE> 6
CASE NAME: INTERNATIONAL META SYSTEMS, INC. CASE NUMBER: 98-10782-FM
STATEMENT OF INCOME (LOSS)
<TABLE>
<CAPTION>
MONTH March 31, 1998 April 30, 1998 Filing to Date
-------------- -------------- --------------
<S> <C> <C> <C>
REVENUES (MOR-1) $ 115,000.00 $115,000.00 $230,000.00
TOTAL COST OF REVENUES 0 0 0
GROSS PROFIT $ 115,000.00 $115,000.00 $230,000.00
OPERATING EXPENSES:
Selling & Marketing $ 5,848.55 $ 8,413.50 $ 14,262.05
General &
Administrative $ 37,610.93 $ 78,000.05 $115,610.98
Insiders Compensation $ 24,076.92 $ 23,076.92 $ 47,153.84
Professional Fees $ 23,490.31 $ 5,938.00 $ 30,428.31
Other (attach list) $ 391,137.65 $378,377.38 $769,515.03
TOTAL OPERATING EXPENSES $ 482,164.36 $493,805.85 $975,970.21
INCOME BEFORE INT,
DEPR/TAX (MOR-1) ($367,164.36) ($378,805.85) ($745,970.21)
INTEREST EXPENSE $ 28,093.19 ($ 20,728.45) $ 7,364.74
DEPRECIATION $ 71,751.40 $ 38,760.77 $110,512.17
OTHER (INCOME) EXPENSE* 0 0 0
OTHER ITEMS** 0 0 0
TOTAL INT, DEPR &
OTHER ITEMS $ 99,844.59 $ 18,032.32 $117,876.91
NET INCOME BEFORE TAXES ($467,008.95) ($396,838.17) ($863,847.12)
FEDERAL INCOME TAXES 0 0 0
NET INCOME (LOSS)(MOR-1) ($467,008.95) ($396,838.17) ($863,847.12)
</TABLE>
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6 Revised:6/14/96
<PAGE> 7
International Meta Systems, Inc.-Details for MOR-6, Other Operating Expenses
<TABLE>
<CAPTION>
ITEM Mar. 31, 1998 April 30, 1998
---- ------------- --------------
<S> <C> <C>
Technical Salaries $203,232.19 $227,500.78
Technical Consultants 49,870.50 $ 84,662.75
Employee Benefit - Insurance 19,857.64 $ 20,736.68
Employee Benefit - Options** 10,703.00 $ 10,703.00
Employee Benefit - Payroll Taxes 14,742.59 $ 19,810.10
Amortize Prepaid Maintenance** 92,731.73 $ 14,964.07
--------- -----------
Total to MOR-6(Other Oper. Exp.) $391,137.65 $378,377.38
</TABLE>
** = Non-cash item
<PAGE> 8
STATEMENT OF OPERATIONS - MOR 6 WORKSHEET
<TABLE>
<S> <C> <C> <C>
Selling & Marketing Amount
M. Jordan expenses $ 70.11
B. Young Salary $ 3,846.16
E. Catiglioni Salary $ 3,192.32
Accrued Salaries $ 1,461.76
Accrued Vacation $ (156.85)
---------- $ 8,413.50
Insiders Compensation
M. Jordan Salary $ 4,615.40
L. Hoevel Salary $10,000.00
H. Potash Salary $ 8,461.52
---------- $23,076.92
Professional Fees $ 5,938.00
General & Administrative
Payroll Processing $ 130.98
401K Fees $ 179.00
Bank Service Fees $ 53.14
Consultants G&A $19,804.00
Business Entertaiment $ 73.80
Travel (less M. Jordan exp) $10,576.31
Rent $10,372.64
Equipment Rental $ 2,111.34
Telephone $ 4,362.73
Utilities $ 7,186.78
Furniture Rental $ 501.20
Insurance $ 2,556.64
Office Supplies
(Less 70.11-M.Jordan) $ 4,029.08
Bankruptcy Fees $ 3,750.00
Postage/Freight (Note: refund
netted out against expense) $ (78.05)
Recruiting & Hiring $12,390.46
Taxes - Other 0
----------- $78,000.05
Other
Technical Salaries
Salaries Dept. 100 G&A $40,361.55
Dept. 200 $37,965.24
Dept. 301 $63,818.41
Dept. 302 $49,299.69
Dept. 303 $19,057.33
Dept. 304 $35,460.08
Dept. 400 $12,958.79
---------- $258,921.09
Less: Insiders Comp. $(23,076.92)
Less: Sales & Marketing $ (8,343.39)
------------ $227,500.78
Technical Consultants $84,662.75
Employee Benefit-Insurance $20,736.68
Employee Benefit-Options $10,703.00
Employee Benefit-Payroll Taxes $19,810.10
Amortize Prepaid Maintenance $14,964.07
---------- $150,876.60
-----------
$378,377.38
</TABLE>
MOR-6 WORKSHEET
<PAGE 9>
CASE NAME: INTERNATIONAL META SYSTEMS, INC. CASE NUMBER: 98-10782-FM
<TABLE>
<CAPTION>
CASH RECEIPTS AND MONTH MONTH FILING TO
DISBURSEMENTS March, 1998 April, 1998 DATE
<S> <C> <C> <C>
1. CASH-BEGINNING OF MONTH $ 1,978.81 $ 8,528
RECEIPTS:
2. CASH SALES $115,000.00 $115,000 $230,000.00
3. COLLECTION OF ACCOUNTS
RECEIVABLE $ 25,000.00 0 $ 25,000.00
4. LOANS & ADVANCES
(attach list) $210,420.08 $390,000 $600,420.08
5. SALE OF ASSETS(1) $ 20,000.00 0 $ 20,000.00
6. OTHER (reimbursements) $ 5,808.57 $ 928 $ 6,736.57
TOTAL RECEIPTS $376,228.65 $505,928 $882,156.65
(Withdrawal) Contribution
by Individual Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL $192,510.73 $168,749 $361,259.73
8. PAYROLL TAXES PAID $ 37,761.80 $ 72,633 $110,394.80
9. SALES, USE & OTHER TAXES
PAID 0 0 0
10. SECURED/RENTAL/LEASES $ 245.00 $ 12,985 $ 13,230.00
11. UTILITIES 0 $ 7,187 $ 7,187.00
12. INSURANCE $ 23,608.85 $ 23,864 $ 47,472.85
13. INVENTORY PURCHASES 0 0 0
14. VEHICLE EXPENSES 0 0 0
15. TRAVEL & ENTERTAINMENT $ 8,563.19 $ 10,650 $ 19,213.19
16. REPAIRS, MAINTENANCE
& SUPPLIES $ 1,206.94 $ 3,799 $ 5,005.94
17. ADMINISTRATIVE & SELLING $ 2,654.97 $ 5,305 $ 7,959.97
18. OTHER (attach list) $103,127.98 $186,624 $289,751.98
TOTAL DISBURSEMENTS FROM
OPERATIONS $369,679.46 $491,796 $861,475.46
19. PROFESSIONAL FEES 0 0 0
20. U.S. TRUSTEE FEES 0 $ 3,750 $ 3,750.00
21. OTHER REORGANIZATION
EXPENSES (attach list) 0 0 0
TOTAL DISBURSEMENTS $369,679.46 $495,546 $865,225.46
22. NET CASH FLOW $ 6,549.19 $ 10,382 $ 16,931.19
23. CASH-END OF MONTH (MOR-2) $ 8,528.00 $ 18,910
</TABLE>
MOR-7 *Applies to Individual debtor's only. Revised:6/14/96
(1) Sold pre-petition: This reflects receipt of balance due on account.
<PAGE> 10
<TABLE>
<CAPTION>
Case Name: INTERNATIONAL META SYSTEMS, INC.
Case Number 98-10782-FM
MOR-7 Worksheet Attachments
---------------------------
<S> <C> <C> <C>
Actual
------
Cash Sales
- ----------
ZSP $115,000.00
Sale of Assets 0
- --------------
Collection of A/R 0
- -----------------
Loans & Advances
- ----------------
IPIQ-loans $390,000.00
Other
- -----
J. Hesson Cobra pymnt $ 571.01
U.S. Postmaster $ 357.09 $ 928.10
Total Receipts $505,928.10
- ---------------
Net Disbursements
- -----------------
Net Payroll $168,748.50
Payroll taxes $ 72,633.06
-----------
$241,381.56
Secured/Retail/Lease
GE Capital/copier
lease $ 223.00
Inter-Tel/phone
lease $ 1,462.21
Walltech/furniture
lease $ 390.46
Aramark - rental $ 35.67
Aaron Rents Furniture $ 501.20
Rent $ 10,372.64 $ 12,985.18
Utilities $ 7,186.78
Insurance $ 23,864.33
Travel & Enter. $ 10,650.11
Repairs, maint., supplies $ 3,799.47
Admin. & Selling
Interwest Transfer-
stock fee 0
Payroll Processing
Fee Paychex $ 130.98
M. Jordan expenses $ 578.76
401K Service Charge $ 179.00
Bank Service Charges $ 53.14
Telephone/Fax $ 4,362.73 $ 5,304.61
Total Miscellaneous
Other
Consultants $ 98,588.75
Recruiting & Hiring
Fees $ 12,390.46
Employee Relocation
Loans 0
Silvaco-software $75,644.60 $186,623.81 $491,795.85
---------- -----------
U.S. Trustee-Qrtly filing $ 3,750.00
TOTAL NET DISBURSEMENTS $495,545.85
- ----------------------- -----------
Net Cash Flow $ 10,382.25
- ------------- -----------
</TABLE>
<PAGE> 11
CASE NAME: INTERNATIONAL META SYSTEMS, INC. CASE NUMBER 98-10782-FM
CASH ACCOUNT RECONCILIATION
MONTH OF April, 1998
<TABLE>
<CAPTION>
BANK NAME Bank One Bank One
<S> <C> <C> <C>
ACCOUNT NUMBER #1826551242 #1826551234
ACCOUNT TYPE OPERATING OTHER FUNDS* TOTAL
- ------------ ---------- ------------ -----
BANK BALANCE $108,043.67 $ (20.14) $108,023.53
DEPOSIT IN TRANSIT 0 0 0
OUTSTANDING CHECKS $ 89,113.28 $ 89,113.28
ADJUSTED BANK BALANCE$ 18,930.39 (20.14) $ 18,910.25
BEGINNING CASH-PER
BOOKS $ 8,528.00 0 $ 8,528.00
RECEIPTS $390,928.10 $ 115,000.00 $505,928.10
TRANSFERS BETWEEN
ACCOUNTS $115,000.00 $(115,000.00) 0
(WITHDRAWAL)
CONTRIBUTION-BY
INDIVIDUAL DEBTOR
MFR-2
CHECKS/OTHER
DISBURSEMENTS $495,525.71 $ 20.14 $495,545.85
ENDING CASH-
PER BOOKS $ 18,930.39 $ (20.14) $ 18,910.25
</TABLE>
*Cash Collateral Account
MOR-8 Revised:6/14/96
<PAGE> 12
CASE NAME: INTERNATIONAL META SYSTEMS, INC. CASE NUMBER: 98-10782-FM
PAYMENTS TO INSIDERS AND PROFESSIONALS
Of the total disbursements shown for the month, list the amount paid to insiders
(as defined in Section 101(30)(A)-(F) of the U.S. Bankruptcy Code) and the
professionals. Also, for insiders identify the type of compensation paid (e.g.,
salary, commission, bonus, etc.) (Attach additional pages as necessary.)
<TABLE>
<CAPTION>
INSIDERS: NAME/POSITION/COMP TYPE MONTH MONTH
March 1998 April, 1998
<S> <C> <C>
1. Lee W. Hoevel/President/Salary $10,000.00 $10,000.00
2. Hanan Potash/V.P./Salary $ 8,461.52 $ 8,461.52
3. Malcolm Jordan/V.P./Salary $ 5,615.40 $ 4,615.40
4. Malcolm Jordan/V.P./Expense
Reimbursement $ 1,981.90 $ 70.11
5.
6.
TOTAL INSIDERS (MOR-1) $26,058.82 $23,147.05
</TABLE>
<TABLE>
<CAPTION>
PROFESSIONALS MONTH
NAME/ORDER DATE
<S> <C>
1. F/N 1.
TOTAL PROFESSIONALS (MOR-1)
</TABLE>
MOR-9 Revised: 6/14/96
F/N 1. Expenses of $30,428.31 have accrued but were not paid in this period.
Retainer was paid pre-petition.
