[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): June 17, 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 June 30, 1998, that the Company filed with the United States
Bankruptcy for the Western District of Texas, Austin Division, on
July 21, 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
<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: 7/29/98 /s/ Lee Hoevel
--------------- ----------------------------------
Lee Hoevel, President
<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
MONTHLY OPERATING REPORT SUMMARY FOR MONTH JUNE YEAR 1998
<TABLE>
<CAPTION>
MONTH 3/31/98 4/30/98 5/30/98 6/30/98
<S> <C> <C> <C> <C>
REVENUES (MOR-6) $115,000.00 $115,000.00 $90,000.00 0
INCOME BEFORE INT,
DEPREC./TAX (MOR-6) ($367,164.36) ($378,805.85) ($370,659.95) ($440,620.97)
NET INCOME (LOSS)(MOR-6) ($467,008.95) ($396,838.17) ($417,008.29) ($490,292.83)
PAYMENTS TO INSIDERS (MOR-9) $ 26,058.82 $ 23,147.05 $23,301.92 $ 25,257.61
PAYMENTS TO PROFESSIONALS
(MOR-9) 0 0 0 0
TOTAL DISBURSEMENTS (MOR-8) $369,679.46 $495,545.85 $430,940.22 402,731.20
</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( ) 1/1/99 TO 7/1/99
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 in March
Are all funds received 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, APRIL 30, MAY 31, JUNE 30,
ASSETS 3/2/98 1998 1998 1998 1998
<S> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash $ 1,979 $ 8,528 $ 18,910.25 $ 35,441.57 $ 84,685.33
Accounts Receivable,
Net $ 596,612 $ 591,943 $ 588,915.19 $ 585,448.19 $ 591,685.03
Inventory: Lower
of Cost or Market 0 0 0 0 0
Prepaid Expenses $ 229,444 $ 138,685 $ 123,174.81 $ 111,209.20 $ 95,645.12
Investments 0 0 0 0 0
Other $ 91,340 0 0 0 0
TOTAL CURRENT
ASSETS $ 919,375 $ 739,156 $ 731,000.25 $ 732,098.96 $ 772,015.48
PROPERTY, PLANT&
EQUIP,@COST $2,345,826 $2,361,303 $2,427,558.19 $2,451,035.09 $2,451,035.09
Less Accumulated
Depreciation $ 933,624 $ 999,868 $1,036,792.90 $1,071,891.94 $1,107,696.91
NET BOOK VALUE OF
PP & E $1,412,202 $1,361,435 $1,390,765.29 $1,379,143.15 $1,343,338.18
OTHER ASSETS:
1. Tax Deposits 0 0 0 0 0
2. Investments in
Subs 0 0 0 0 0
3. Pending Software
Lease Deposit $ 250,000 $ 250,000 $ 250,000 $ 250,000.00 $ 250,000.00
4. Patents $ 130,151 $ 104,644 $ 102,808 $ 100,972.16 $ 99,136.32
TOTAL ASSETS $2,711,728 $2,455,235 $2,474,573.54 $2,462,214.27 $2,464,489.98
</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 MAY 31 JUNE 30,
EQUITY 3/2/98 1998 1998 1998 1998
<S> <C> <C> <C> <C> <C>
LIABILITIES:
POST-PETITION
LIABILITIES (MOR-4) 0 $ 293,242 $ 698,716 $1,092,661 $ 1,576,199
PRE-PETITION LIABILITIES:
Notes Payable-Secured $3,392,544 $ 3,392,544 $3,392,544 $3,392,544 $ 3,392,544
Priority Debt $ 192,043 $ 191,769 $ 191,769 $ 191,769 $ 191,769
Federal Income Tax $ 997 0 0 0 0
FICA/Withholding $ 261 0 0 0 0
Unsecured Debt $ 4,379,292 $ 4,379,292 $4,379,292 $4,382,420 $ 4,382,420
Other 0 0 0 0 0
TOTAL PRE-PETITION
LIABILITIES $ 7,965,137 $ 7,963,605 $7,963,605 $7,966,733 $ 7,966,733
TOTAL LIABILITIES $ 7,965,137 $ 8,256,847 $8,662,321 $9,059,394 $ 9,542,932
OWNER'S EQUITY (DEFICIT):
PREFERRED STOCK 0 0 0 0 0
COMMON STOCK $ 3,965 $ 3,965 $ 3,965 $ 3,965 $ 3,965
ADDITIONAL PAID-IN
CAPITAL $19,027,008 $18,945,226 $18,956,517 $18,967,778 $ 18,978,481
RETAINED EARNINGS:
Filing Date ($24,284,382)($24,284,382) ($24,284,382)($24,287,510) ($24,289,740)
RETAINED EARNINGS:
Post Filing Date 0 ($467,009) $ (863,847) ($1,281,413) ($ 1,771,148)
TOTAL OWNER'S EQUITY
(NET WORTH) ($5,253,409) ($5,801,612) ($6,187,747)($6,597,180) ($ 7,078,442)
TOTAL LIABILITIES &
OWNER'S EQUITY $ 2,711,728 $ 2,455,235 $ 2,474,574 $ 2,462,214 $ 2,464,490
</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 May 31 June 30
1998 1998 1998 1998
<S> <C> <C> <C> <C>
TRADE ACCOUNTS PAYABLE $ 16,558 $ 12,500 $ 11,407 $ 5,000
- ----------------------
TAX PAYABLE:
Federal Payroll Taxes 0 0 0 $ 835
State Payroll & Sales 0 0 0 0
Ad Valorem Taxes 0 0 0 0
Other Taxes $ 1,063 $ 1,063 $ 1,063 $ 1,063
TOTAL TAXES PAYABLE $ 1,063 $ 1,063 $ 1,063 $ 1,898
SECURED DEBT POST-PETITION $210,420 $600,420 $ 955,892 $1,406,892
ACCRUED INTEREST PAYABLE $ 28,093 $ 7,365 $ 16,778 $ 28,809
*ACCRUED PROFESSIONAL FEES: $ 23,490 $ 29,428 $ 35,619 $ 55,837
OTHER ACCRUED LIABILITIES:
1. Deferred Compensation $ 846 $ 846 $ 846 $ 846
2. Accrued Vacation $( 4,169) $ 9,099 $ 22,242 $ 24,196
3. Accrued Payroll $ 16,941 $ 37,995 $ 48,814 $ 52,721
TOTAL POST-PETITION
LIABILITIES (MOR-3) $293,242 $698,716 $1,092,661 $1,576,199
--------------------------------------- --------- ---------- ----------
</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
June 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 $ 483,537 $5,000 $835 0 0 $ 477,702
31-60 $ 393,945 0 0 0 0 $ 393,945
61-90 $ 453,955 0 0 0 0 $ 453,955
91+ $ 244,761 0 0 0 $1,063 $ 243,698
TOTAL $1,576,198 $5,000 $835 0 $1,063 $1,569,300
</TABLE>
AGING OF ACCOUNTS RECEIVABLE
<TABLE>
<CAPTION>
MONTH MARCH 31, 1998 APRIL 30, 1998 MAY 31, 1998 June 30, 1998
<S> <C> <C> <C> <C>
0-30 DAYS $ 85,531 $ 82,503 $ 79,036 $ 85,273
31-60 DAYS 0 0 0 0
61-90 DAYS 0 0 0 0
91 + DAYS $506,412 $506,412 $506,412 $506,412
TOTAL $591,943 $588,915 $585,448 $591,685
</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, April 30, May 31, June 30, Filing
1998 1998 1998 1998 to Date
---------- --------- -------- ------------ ----------
<S> <C> <C> <C> <C> <C>
REVENUES (MOR-1) $ 115,000.00 $115,000.00 $90,000.00 0 $ 320,000.00
TOTAL COST OF
REVENUES 0 0 0 0 0
GROSS PROFIT $ 115,000.00 $115,000.00 $90,000.00 0 $ 320,000.00
OPERATING EXPENSES:
Selling &
Marketing $ 5,848.55 $ 8,413.50 $ 6,227.98 $ 8,343.88 $ 28,833.91
General &
Administrative $ 37,610.93 $ 78,000.05 $ 76,718.72 $ 49,040.38 $ 241,370.08
Insiders
Compensation $ 24,076.92 $ 23,076.92 $ 23,301.92 $ 24,693.84 $ 95,149.60
Professional Fees $ 23,490.31 $ 5,938.00 $ 6,190.80 $ 20,217.48 $ 55,835.79
Other (attach list)$ 391,137.65 $378,377.38 $348,220.53 $ 338,325.39 $1,456,060.95
TOTAL OPERATING
EXPENSES $ 482,164.36 $493,805.85 $460,659.95 $ 440,620.97 $1,877,250.33
INCOME BEFORE INT,
DEPR/TAX (MOR-1) ($367,164.36) ($378,805.85)($370,659.95) ($440,620.97) ($1,557,250.33)
INTEREST EXPENSE $ 28,093.19 ($ 20,728.45) $ 9,413.46 $ 12,031.05 $ 28,809.25
DEPRECIATION $ 71,751.40 $ 38,760.77 $ 36,934.88 $ 37,640.81 $ 185,087.86
OTHER (INCOME)
EXPENSE* 0 0 0 0 0
OTHER ITEMS** 0 0 0 0 0
TOTAL INT, DEPR &
OTHER ITEMS $ 99,844.59 $ 18,032.32 $ 46,348.34 $ 49,671.86 $ 213,897.11
NET INCOME BEFORE
TAXES ($467,008.95) ($396,838.17) ($417,008.29) ($490,292.83) ($1,771,147.44)
FEDERAL INCOME TAXES 0 0 0 0 0
NET INCOME (LOSS)
(MOR-1) ($467,008.95) ($396,838.17) ($417,008.29) ($490,292.83) ($1,771,147.44)
</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 June 30, 1998
---- ------------
<S> <C>
Technical Salaries
Dept. 100 $32,135.83
Dept. 200 $32,907.99
Dept. 301 $64,603.20
Dept. 302 $43,311.09
Dept. 303 $17,261.01
Dept. 304 $14,674.73
Dept. 400 $12,922.20
---------- $217,816.05
Less: Insiders Comp. $ 23,576.92
Less: Sales & Marketing $ 6,863.39
------------ $187,375.74
Contract Engineers $87,068.50
Employee Benefit-Insurance $22,169.37
Employee Benefit-Options* $10,703.00
Employee Benefit-Payroll Taxes $15,245.52
Amortize Prepaid Maintenance* $15,763.26
---------- $150,949.65
-----------
$338,325.39
*Non-cash items
</TABLE>
MOR-6 WORKSHEET
<PAGE 9>
CASE NAME: INTERNATIONAL META SYSTEMS, INC. CASE NUMBER: 98-10782-FM
<TABLE>
<CAPTION>
CASH RECEIPTS AND MONTH MONTH MONTH MONTH FILING TO
DISBURSEMENTS March, 1998 April, 1998 May 1998 June 1998 DATE
<S> <C> <C> <C> <C> <C>
1. CASH-BEGINNING
OF MONTH $ 1,979 $ 8,528 $ 18,910 $ 35,442 $ 1,979
RECEIPTS:
2. CASH SALES $115,000 $115,000 $ 90,000 0 $ 320,000
3. COLLECTION OF
ACCOUNTS RECEIVABLE $ 25,000 0 0 0 $ 25,000
4. LOANS & ADVANCES
attach list) $210,420 $390,000 $355,473 $ 451,000 $1,406,892
5. SALE OF ASSETS(1) $ 20,000 0 0 0 $ 20,000
6. OTHER (attach list) $ 5,808 $ 928 $ 1,999 $ 975 $ 9,710
TOTAL RECEIPTS $376,228 $505,928 $447,472 $ 451,975 $1,781,603
Withdrawal) Contribution
by Individual Debtor MFR-2*
- ---------------------------------------------------------------------------
DISBURSEMENTS:
7. NET PAYROLL $192,511 $168,749 $149,640 $ 152,482 $ 663,382
8. PAYROLL TAXES
PAID $ 37,762 $ 72,633 $ 68,066 $ 68,492 $ 246,953
9. SALES, USE &
OTHER TAXES PAID 0 0 $ 1,992 0 $ 1,992
10.SECURED/RENTAL/
LEASES $ 245 $ 12,985 $ 12,654 $ 14,277 $ 40,161
11. UTILITIES 0 $ 7,187 $ 5,413 $ 5,440 $ 18,040
12. INSURANCE $ 23,609 $ 23,864 $ 24,398 $ 27,637 $ 99,508
13. INVENTORY PURCHASES 0 0 0 0 0
14. VEHICLE EXPENSES 0 0 0 0 0
15. TRAVEL &
ENTERTAINMENT $ 8,563 $ 10,650 $ 12,786 $ 9,044 $ 41,043
16. REPAIRS, MAINT-
ENANCE & SUPPLIES $ 1,207 $ 3,799 $ 3,419 $ 2,692 $ 11,117
17. ADMINISTRATIVE &
SELLING $ 2,655 $ 5,305 $ 9,452 $ 5,452 $ 22,864
18. OTHER (attach
list) $103,127 $186,624 $143,120 $ 117,216 $ 550,087
TOTAL DISBURSEMENTS
FROM OPERATIONS $369,679 $491,796 $430,940 $ 402,731 $1,695,146
19. PROFESSIONAL FEES 0 0 0 0 0
20. U.S. TRUSTEE FEES 0 $ 3,750 0 0 $ 3,750
21. OTHER REORGANIZATION
EXPENSES (attach list) 0 0 0 0 0
TOTAL DISBURSEMENTS $369,679 $495,546 $430,940 $ 402,731 $1,698,896
22. NET CASH FLOW $ 6,549 $ 10,382 $ 16,531 $ 49,244 $ 82,707
23. CASH-END OF MONTH
(MOR-2) $ 8,528 $ 18,910 $ 35,442 $ 84,686 $ 84,686
</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>
Details for MOR-7 June, 1998
<CAPTION>
Case Name: INTERNATIONAL META SYSTEMS, INC.
Case Number 98-10782-FM
<S> <C> <C> <C>
Actual
------
Cash Sales
----------
$ 0.00
Sale of Assets 0.00
--------------
Collection of A/R 0.00
-----------------
Loans & Advances
----------------
IPIQ-loans $451,000.00
Other
-----
Hesson-Smith/Cobra $ 715.15
ADP Payroll processing
credit $ 259.81 $974.96
Total Receipts $451,974.96
---------------
Net Disbursements
-----------------
Net Payroll $152,482.22
Payroll taxes $ 68,492.18 $220,974.40
-----------
Sales, Use & Other
Taxes Paid $0.00
Secured/Retail/Lease
Dahill Industries/
equip. lease $ 162.38
Inter-Tel/phone
equip. lease $ 1,462.21
GE Capital/equip.
lease $ 223.00
Walltech/furniture
rental $ 390.46
Pitney Bowes/
meter rental $ 184.63
Dell Financial Srvcs/
equip lease $ 1,079.01
Rent $ 10,775.59 $ 14,277.28
Utilities $ 5,439.50
Insurance $ 27,637.33
Travel & Enter. $ 9,043.84
Repairs, maint., supplies $ 2,691.67
Admin. & Selling
Outside Services-PR $ 101.14
Payroll Processing
Fee Paychex $ 331.06
Marketing/Selling $ 1,379.35
401K Service Charge $ 341.69
Bank Service Charges $ $0.00
Telephone/Fax $ 3,298.36 $ 5,451.60
Other
Contract Employees $101,724.00
Recruiting & Hiring $ 2,191.58
Employee Relocation
Loans $ 13,300.00
Software/Hardware
Purchases $0.00 $117,215.58
---------- -----------
U.S. Trustee-Qrtly
filing 0.00
TOTAL NET DISBURSEMENTS $402,731.20
----------------------- -----------
Net Cash Flow $ 49,243.76
------------ -----------
</TABLE>
<PAGE> 11
CASE NAME: INTERNATIONAL META SYSTEMS, INC. CASE NUMBER 98-10782-FM
CASH ACCOUNT RECONCILIATION
MONTH OF June, 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 $139,497.59 $ 0 $139,497.59
DEPOSIT IN TRANSIT $ $ 0 $ 0
OUTSTANDING CHECKS $ 54,812.26 $ 54,812.26
ADJUSTED BANK BALANCE $ 84,685.33 $ 0 $ 84,685.33
BEGINNING CASH-PER
BOOKS $ 35,441.57 $ 0 $ 35,441.57
RECEIPTS $451,974.96 $ 0 $451,974.96
TRANSFERS BETWEEN
ACCOUNTS $ 0 $ 0 $ 0
(WITHDRAWAL)
CONTRIBUTION-BY
INDIVIDUAL DEBTOR
MFR-2
CHECKS/OTHER
DISBURSEMENTS $402,731.20 $ 0 $402,731.20
ENDING CASH-
PER BOOKS $ 84,685.33 $ 0 $ 84,685.33
</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 MONTH MONTH
March 1998 April, 1998 May, 1998 June 1998
<S> <C> <C> <C> <C>
1. Lee W. Hoevel/President/Salary $10,000.00 $10,000.00 $10,000.00 $10,000.00
2. Hanan Potash/V.P./Salary $ 8,461.52 $ 8,461.52 $ 8,461.52 $ 8,461.52
3. Malcolm Jordan/V.P./Salary $ 5,615.40 $ 4,615.40 $ 4,840.40 $ 5,115.40
4. Malcolm Jordan/V.P./Expense
Reimbursement $ 1,981.90 $ 70.11 $ 0 $ 563.77
5. Lee Hoevel/Pres/Expense
Reimbursement 0 0 0 $ 823.79
6. Hanan Potash/V.P./Expense
Reimbursement 0 0 0 $ 293.13
TOTAL INSIDERS (MOR-1) $26,058.82 $23,147.05 $23,301.92 $25,257.61
</TABLE>
<TABLE>
<CAPTION>
PROFESSIONALS MONTH
NAME/ORDER DATE
<S> <C>
1.
TOTAL PROFESSIONALS (MOR-1)
</TABLE>
MOR-9 Revised: 6/14/96
