FORM 12b-25
NOTIFICATION OF LATE FILING
Form 10-Q For The Period Ended October 31, 1998
Part I - Registrant Information
Finet Holdings Corporation
505 Sansome Street, #1420
San Francisco, CA. 94111
Part II - Rules 12b-25 (b) and (c)
(a) The reasons for the delay in filing as described in reasonable
detail in Part III of this form could not be eliminated without
unreasonable effort or expense;
(b) As the fifth calendar day following the prescribed date falls
on a Sunday, the subject quarterly report on Form 10-QSB will be filed on
or before Monday December 21, 1998;
(c) The primary reason the subject report cannot be filed in a
timely manner is the time required by the Registrant to complete the
preparation and review of the consolidated financial statements upon
which to base its report.
Part III - Narrative
A series of events have combined to cause a delay in Registrant's
preparation and review of consolidated financial statements upon which to
base and file its Form 10-QSB for the second fiscal quarter ended October
31, 1998. These events include:
1. The Registrant acquired Mical Mortgage, Inc. ("Mical") of San
Diego, CA on May 19, 1998, early in its first fiscal quarter. Mical was
known to have been having financial and operating difficulties. Upon
assuming operational control of Mical, the magnitude of such difficulties
was determined to be materially greater than anticipated and to require
additional internal review to assure an appropriate basis for corrective
action and reporting thereon.
2. Certain of these reviews and related corrective accounting and
reporting actions were only recently completed. An amended Form-10QSB/A
for the Registrant's first fiscal quarter ended July 31, 1998 was filed
on December 4, 1998 and an amended Form-8K/A providing Mical pro forma
data and audited financial statements was filed on December 7, 1998.
3. Completion of these amendments was required before a Form 10-
QSB for the subsequent fiscal quarter ended October 31, 1998 could be
prepared. These activities consumed much of the time normally allocated
to current period financial statement and report preparation.
For the reasons noted above, delays in closing and reviewing the
Registrant's accounting books has prevented completion of the quarterly
report in the time allowed.
Part IV - Other Information
(1) Name and telephone number of person to contact in regard to
this notification
Mr. Jan Hoeffel (415) 263-5420
(2) Have all other periodic reports required under section 13 or
15(d) of the Securities Exchange Act of 1934 or section 30 of the
Investment Company Act of 1940 during the preceding 12 months or for such
shorter period that the registrant was required to file such report(s)
been filed? If the answer is no, identify reports(s).
[ X ] Yes [ ] No
(3) Is it anticipated that any significant change in results of
operations from the corresponding period for the last fiscal year will be
reflected by the earnings statements to be included in the subject report
or portion thereof?
[ X ] Yes * [ ] No
* The changes in results of operations from the corresponding period
of the prior fiscal year, which have yet to be determined, result
primarily from the fact that three acquisitions were completed during the
intervening time period. The quantitative differences will be reflected
in the Form 10-QSB when filed.
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FINET HOLDINGS CORPORATION
has caused this notification to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: December 15, 1998 By: /s/ Mark L. Korell
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Mark L. Korell, Chairman and CEO
