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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): February 26, 1999
CONNECT, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
000-20873 77-0431045
(Commission File No.) (IRS Employer Identification No.)
515 Ellis Street
Mountain View, CA 94043
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (650) 254-4000
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Item 5. Other Events.
In December, 1998, Connect, Inc. (now doing business as ConnectInc.com,
the "Company") was informed by The Nasdaq Stock Market, Inc. ("Nasdaq") that it
did not meet the requirements for the continued listing of its common stock on
The Nasdaq National Market. Specifically, Nasdaq's listing rules require the
Company to maintain net tangible assets of at least $4 million, and the
Company's net tangible assets were $1.1 million as of September 30, 1998. On
January 22, 1999, the Company completed a private placement of 1,538,462 shares
of common stock at $2.60 per share, resulting in gross proceeds of approximately
$4.0 million. As a result of the private placement, the Company's net tangible
assets were increased and the Company believes that as of the date hereof it is
in compliance with the Nasdaq net tangible assets requirements. Attached as
Exhibit 99.1 is an unaudited balance sheet as of January 31, 1999, prepared in
accordance with generally accepted accounting principles, subject to normal
year-end adjustments, reflecting such compliance.
Item 7. Financial Statements and Exhibits.
a. None.
b. None.
c. Exhibits
99.1 Balance Sheet, as of January 31, 1999.
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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.
Connect, Inc.
Dated: February 26, 1999 By: /s/ Greigory Park
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Greigory Park
Vice President of Finance
and Chief Financial Officer
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Exhibit 99.1
Connect, Inc.
BALANCE SHEET
(in thousands)
(Unaudited)
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<CAPTION>
January 31, December 31,
1999 1998
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents.............................................. $ 7,240 $ 3,965
Accounts receivable, less allowances for doubtful accounts of $162 at
January 31, 1999 and $162 at December 31, 1998......................... 665 613
Prepaid expenses and other current assets.............................. 237 212
-------- --------
Total current assets........................................................... 8,142 4,790
Property and equipment, net.................................................... 545 609
Other assets................................................................... 47 54
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Total assets................................................... $ 8,734 $ 5,453
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable.......................................................... $ 794 $ 834
Accounts payable....................................................... 642 699
Accrued payroll and related expenses................................... 174 167
Other accrued liabilities.............................................. 627 856
Deferred revenue....................................................... 200 415
Current portion of extended vendor liabilities......................... 263 283
Obligations under capital leases....................................... -- 8
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Total current liabilities...................................................... 2,700 3,262
Notes payable.......................................................... 227 245
Commitments and contingencies
Stockholders' equity:
Preferred stock: Authorized shares--3,500,000
Issued and outstanding shares--None.................................. -- --
Common stock: $.001 par value
Authorized shares--60,000,000
Issued and outstanding shares--14,780,604 at January 31, 1999 and
13,213,801 at December 31, 1998...................................... 15 13
Additional paid-in capital............................................. 75,456 71,454
Deferred compensation.................................................. (60) (60)
Accumulated deficit.................................................... (69,604) (69,461)
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Total stockholders' equity..................................................... 5,807 1,946
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Total liabilities and stockholders' equity..................................... $ 8,734 $ 5,453
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