[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): April 25, 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 March 31, 1998, that the Company filed with the United
States Bankruptcy for the Western District of Texas, Austin Division, on
April 25, 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: /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 MARCH YEAR 1998
<TABLE>
<CAPTION>
MONTH 3/31/98
<S> <C>
REVENUES (MOR-6) $115,000.00
INCOME BEFORE INT, DEPREC./TAX (MOR-6) ($367,164.36)
NET INCOME (LOSS)(MOR-6) ($467,008.95)
PAYMENTS TO INSIDERS (MOR-9) $ 26,058.82
PAYMENTS TO PROFESSIONALS (MOR-9) 0
TOTAL DISBURSEMENTS (MOR-8) $369,679.46
</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( ) 5-1-98
LIABILITY YES(X)NO( ) 5-1-98
VEHICLE YES( )NO( ) n/a
WORKER'S YES(X)NO( ) 5/1/98, 11/20/98
OTHER: Medical, Disability YES(X)NO( ) 5/1/98 TO 1/1/99
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
ASSETS 3/2/98
<S> <C> <C>
CURRENT ASSETS
Cash $ 1,979 $ 8,528
Accounts Receivable, Net $ 596,612 $ 591,943
Inventory: Lower of Cost of Market 0 0
Prepaid Expenses $ 229,444 $ 138,685
Investments 0 0
Other $ 91,340 0
TOTAL CURRENT ASSETS $ 919,375 $ 739,156
PROPERTY, PLANT&EQUIP,@COST $2,345,826 $2,361,303
Less Accumulated Depreciation $ 933,624 $ 999,868
NET BOOK VALUE OF PP & E $1,412,202 $1,361,435
OTHER ASSETS:
1. Tax Deposits 0 0
2. Investments in Subs 0 0
3. Pending Software Lease Deposit $ 250,000 $ 250,000
4. Patents $ 130,151 $ 104,644
TOTAL ASSETS $2,711,728 $2,455,235
</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,
EQUITY 3/2/98 1998
<S> <C> <C>
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 0 $ 293,242
PRE-PETITION LIABILITIES:
Notes Payable-Secured $ 3,392,544 $ 3,392,544
Priority Debt $ 192,043 $ 191,769
Federal Income Tax $ 997 0
FICA/Withholding $ 261 0
Unsecured Debt $ 4,368,242 $ 4,368,242
Other 0 0
TOTAL PRE-PETITION LIABILITIES $ 7,954,087 $ 7,952,555
TOTAL LIABILITIES $ 7,954,087 $ 8,245,797
OWNER'S EQUITY (DEFICIT):
PREFERRED STOCK 0 0
COMMON STOCK $ 3,965 $ 3,965
ADDITIONAL PAID-IN CAPITAL $19,027,008 $18,945,814
RETAINED EARNINGS: Filing Date ($24,273,332) ($24,273,332)
RETAINED EARNINGS: Post Filing Date 0 (467,009)
TOTAL OWNER'S EQUITY (NET WORTH) ($5,242,359) ($5,790,562)
TOTAL LIABILITIES & $ 2,711,728 $ 2,455,235
</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
1998
<S> <C>
TRADE ACCOUNTS PAYABLE $ 16,558
- ----------------------
TAX PAYABLE:
Federal Payroll Taxes 0
State Payroll & Sales 0
Ad Valorem Taxes 0
Other Taxes $ 1,063
TOTAL TAXES PAYABLE $ 1,063
SECURED DEBT POST-PETITION $210,420
ACCRUED INTEREST PAYABLE $ 28,093
*ACCRUED PROFESSIONAL FEES: $ 23,490
OTHER ACCRUED LIABILITIES:
1. Deferred Compensation $ 846
2. Accrued Vacation $( 4,169)
3. Accrued Payroll $ 16,941
TOTAL POST-PETITION LIABILITIES (MOR-3) $293,242
- --------------------------------------- ---------
</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
March 31, 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 $293,242 $16,558 0 0 $1,063 $275,621
31-60 0 0 0 0 0 0
61-90 0 0 0 0 0 0
91+ 0 0 0 0 0 0
TOTAL $293,242 $16,558 0 0 $1,063 $275,621
</TABLE>
AGING OF ACCOUNTS RECEIVABLE
<TABLE>
<CAPTION>
MONTH MARCH 31, 1998
<S> <C>
0-30 DAYS $ 85,531
31-60 DAYS 0
61-90 DAYS 0
91 + DAYS $506,412
TOTAL $591,943
</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
--------------
<S> <C>
REVENUES (MOR-1) $ 115,000.00
TOTAL COST OF REVENUES 0
GROSS PROFIT $ 115,000.00
OPERATING EXPENSES:
Selling & Marketing $ 5,848.55
General & Administrative $ 37,610.93
Insiders Compensation $ 24,076.92
Professional Fees $ 23,490.31
Other (attach list) $ 391,137.65
TOTAL OPERATING EXPENSES $ 482,164.36
INCOME BEFORE INT, DEPR/TAX (MOR-1) ($367,164.36)
INTEREST EXPENSE $ 28,093.19
DEPRECIATION $ 71,751.40
OTHER (INCOME) EXPENSE* 0
OTHER ITEMS** 0
TOTAL INT, DEPR & OTHER ITEMS $ 99,844.59
NET INCOME BEFORE TAXES ($467,008.95)
FEDERAL INCOME TAXES 0
NET INCOME (LOSS)(MOR-1) ($467,008.95)
</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
---- -------------
<S> <C>
Technical Salaries $203,232.19
Technical Consultants 49,870.50
Employee Benefit - Insurances 19,857.64
Employee Benefit - Options** 10,703.00
Employee Benefit - Payroll Taxes 14,742.59
Amortize Prepaid Maintenance** 92,731.73
---------
Total to MOR-6(Other Oper. Exp.) $391,137.65
</TABLE>
** = Non-cash item
<PAGE> 8
CASE NAME: INTERNATIONAL META SYSTEMS, INC. CASE NUMBER: 98-10782-FM
<TABLE>
<CAPTION>
CASH RECEIPTS AND MONTH
DISBURSEMENTS March, 1998
<S> <C>
1. CASH-BEGINNING OF MONTH $ 1,978.81
RECEIPTS:
2. CASH SALES $115,000.00
3. COLLECTION OF ACCOUNTS RECEIVABLE $ 25,000.00
4. LOANS & ADVANCES (attach list) $210,420.08
5. SALE OF ASSETS(1) $ 20,000.00
6. OTHER (attach list) $ 5,808.57
TOTAL RECEIPTS $376,228.65
(Withdrawal) Contribution by Individual Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL $192,510.73
8. PAYROLL TAXES PAID $ 37,761.80
9. SALES, USE & OTHER TAXES PAID 0
10. SECURED/RENTAL/LEASES $ 245.00
11. UTILITIES 0
12. INSURANCE $ 23,608.85
13. INVENTORY PURCHASES 0
14. VEHICLE EXPENSES 0
15. TRAVEL & ENTERTAINMENT $ 8,563.19
16. REPAIRS, MAINTENANCE & SUPPLIES $ 1,206.94
17. ADMINISTRATIVE & SELLING $ 2,654.97
18. OTHER (attach list) $103,127.98
TOTAL DISBURSEMENTS FROM OPERATIONS $369,679.46
19. PROFESSIONAL FEES 0
20. U.S. TRUSTEE FEES 0
21. OTHER REORGANIZATION EXPENSES (attach list) 0
TOTAL DISBURSEMENTS $369,679.46
22. NET CASH FLOW $ 6,549.19
23. CASH-END OF MONTH (MOR-2) $ 8,528.00
</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> 9
<TABLE>
<CAPTION>
Case Name: INTERNATIONAL META SYSTEMS, INC.
Case Number 98-10782-FM
MOR-7 Worksheet Attachments
---------------------------
<S> <C> <C> <C>
Cash Sales
- ----------
ZSP 115,000.00
Sale of Assets
- --------------
Techsearch 20,000.00
Collection of A/R
- -----------------
ZSP 25,000.00
Loans & Advances
- ----------------
IPIQ-loans 210,420.08
Other
- -----
J. Hesson Cobra pymnt 578.56
J. Hesson Cobra pymnt 571.01
Voided Cashier's check 881.50
Pymt by M.Jordan for payroll taxes 3,777.50
5,808.57
TOTAL RECEIPTS 376,228.65
Disbursements
- -------------
Net Payroll 191,883.41
Net Payroll (late clear fr Imp CK) 627.32
192,510.73
Payroll Taxes 37,761.80
Secured/Retail/Lease
GE Capital/copier lease 245.00
Insurance 23,608.85
Travel & Enter. 8,563.19
Repairs, maint., supplies 1,206.94
Admin. & Selling 2,654.97
Other
Consultants 59,806.50
Employee Relocation Loans 26,200.00
Silvaco-software 15,478.00
Interwest Transfer-stock fee 10.00
Payroll Advance - Employee 500.00
Payroll Processing Fee-Paychex 403.00
ADP-payroll software license fee 405.94
401K Service charge 179.00
Bank service charges 145.54
103,127.98
TOTAL DISBURSEMENTS 369,679.46
----------
Net Cash Flow, line 22, MOR-7 6,549.19
</TABLE>
<PAGE> 10
CASE NAME: INTERNATIONAL META SYSTEMS, INC. CASE NUMBER 98-10782-FM
CASH ACCOUNT RECONCILIATION
MONTH OF March, 1998
<TABLE>
<CAPTION>
BANK NAME Bank One --- Bank One
<S> <C> <C> <C> <C> <C>
ACCOUNT NUMBER #1826551242 ALL PRE-PETITION #1826551234
ACCOUNT TYPE OPERATING BANK ACCOUNTS TAX OTHER FUNDS* TOTAL
- ------------ --------- ------------- --- ------------ -----
BANK BALANCE $138,979.46 0 0 $138,979.46
DEPOSIT IN TRANSIT 0 0 0
OUTSTANDING CHECKS $130,451.46 0 $130,451.46
ADJUSTED BANK BALANCE$ 8,528.00 0 0 $ 8,528.00
BEGINNING CASH-PER
BOOKS 0 $ 1,978.81 0 $ 1,978.81
RECEIPTS $216,228.65 $ 115,000.00 $ 45,000.00 $376,228.65
TRANSFERS BETWEEN
ACCOUNTS $161,260.57 $(116,274.57) $(44,986.00) 0
(WITHDRAWAL)
CONTRIBUTION-BY
INDIVIDUAL DEBTOR
MFR-2
CHECKS/OTHER
DISBURSEMENTS $368,961.22 $ 704.24 $ 14.00 $369,679.46
ENDING CASH-
PER BOOKS $ 8,528.00 0 0 $ 8,528.00
</TABLE>
*Cash Collateral Account
MOR-8 Revised:6/14/96
<PAGE> 11
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
<S> <C>
1. Lee W. Hoevel/President/Salary $10,000.00
2. Hanan Potash/V.P./Salary $ 8,461.52
3. Malcolm Jordan/V.P./Salary $ 5,615.40
4. Malcolm Jordan/V.P./Expense Reimbursement $ 1,981.90
5.
6.
TOTAL INSIDERS (MOR-1) $26,058.82
</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 $23,490.31 have accrued but were not paid in this
period. Retainer was paid pre-petition.
