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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 12B-25
NOTIFICATION OF LATE FILING
Commission File Number: 0-24418
(Check One)
[X] Form 10-K and Form 10-KSB Form [ ] 11-K
[ ] Form 20-F [ ] Form 10-Q and Form 10-QSB [ ] Form N-SAR
For the period ended January 31, 1999
[ ] Transition Report on Form 10-K and Form 10-KSB
[ ] Transition Report on Form 20-F
[ ] Transition Report on Form 11-K
[ ] Transition Report on Form 10-Q and Form 10-QSB
[ ] Transition Report on Form N-SAR
For the transition period ended _____________
Nothing in this form shall be construed to imply that the Commission has
verified any information contained herein.
If the notification relates to a portion of the filing checked above,
identify the item(s) to which the notification relates:_________________________
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PART I
REGISTRANT INFORMATION
Full name of registrant: SystemSoft Corporation
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Former name if applicable:
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Address of principal executive office (Street and Number):
One Innovation Drive
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City, State and Zip Code: Natick, MA 01760
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PART II
RULE 12b-25(b) AND (c)
If the subject report could not be filed without unreasonable effort or
expense and the registrant seeks relief pursuant to Rule 12b-25(b), the
following should be completed. (Check box if appropriate.)
|X| (a) The reasons described in reasonable detail in Part III of this form
could not be eliminated without unreasonable effort or expense;
|X| (b) The subject annual report, semi-annual report, transition report on
Form 10-K, 10-KSB, 20-F, 11-K or Form N-SAR, or portion thereof will be filed on
or before the 15th calendar day following the prescribed due date; or the
subject quarterly report or transition report on Form 10-Q, 10-QSB, or portion
thereof will be filed on or before the fifth calendar day following the
prescribed due date; and
[ ] (c) The accountant's statement or other exhibit required by
Rule 12b-25(c) has been attached if applicable.
PART III
NARRATIVE
State below in reasonable detail the reasons why Form 10-K, 10-KSB, 11-K,
20-F, 10-Q, 10-QSB, N-SAR or the transition report or portion thereof could not
be filed within the prescribed time period. (Attach extra sheets if needed).
On March 23, 1999, the Company filed a voluntary petition for relief under
Chapter 11 of the United States Bankruptcy Code. On April 14, 1999, the Company
filed a no-action request with the Commission, requesting that the Company be
allowed to file modified Exchange Act reports pursuant to Staff Legal Bulletin
No. 2 ("Modified Reports"). If the Commission grants the Company's no-action
request, the Company intends to file a Modified Report in lieu of its Annual
Report on Form 10-K as soon as practicable in accordance with Staff Legal
Bulletin No. 2; however, it is possible that such Modified Report will not be
filed within 15 calendar days following the prescribed due date of the Company's
Annual Report on Form 10-K. If the Commission denies the Company's no-action
request, the Company anticipates that its Annual Report on Form 10-K will not be
timely filed or, alternatively, that such Form 10-K will not be filed at all. In
response to Part IV of this Form 12b-25, the Company has attached certain
unaudited year-end financial statements.
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PART IV
OTHER INFORMATION
(1) Name and telephone number of person to contact in regard to this
notification.
Jeffrey R. Wakely, Vice President, Finance (508) 651-0088
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(Name) (Area Code and Telephone Number)
(2) Have all other periodic reports required under Section 13 or 15(d) or
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 report(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
If so: attach an explanation of the anticipated change, both narratively
and quantitatively, and, if appropriate, state the reasons why a reasonable
estimate of the results cannot be made.
Please see the attached unaudited year-end financial statements.
SystemSoft Corporation
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(Name of Registrant as Specified in Charter)
Has caused this notification to be signed on its behalf by the undersigned
thereunto duly authorized.
Date: April 29, 1999 By: /s/ Jeffrey R. Wakely
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Jeffrey R. Wakely, Vice President, Finance
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SystemSoft Corporation
Consolidated Balance Sheet
January 31, 1999
<TABLE>
<CAPTION>
01/31/99 01/31/98 Change
<S> <C> <C> <C>
ASSETS:
Current Assets:
Cash and cash equivalents ........................................... $ 695,903 $ 10,763,795 ($10,067,892)
Restricted cash ..................................................... 400,000 0 400,000
Accounts receivable net ............................................. 646,044 6,328,056 (5,682,012)
Prepaid Royalties ................................................... 0 3,373,154 (3,373,154)
Other current assets ................................................ 870,279 2,727,359 (1,857,080)
------------ ------------ ------------
Total current assets .............................................. 2,612,226 23,192,364 (20,580,138)
Property and equipment, net ......................................... 1,301,194 6,807,338 (5,506,144)
Purchased software & software development, net ...................... 651,331 3,559,399 (2,908,068)
------------ ------------ ------------
Total assets ...................................................... $ 4,564,751 $ 33,559,101 ($28,994,350)
============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable .................................................... 1,929,337 1,086,991 842,346
Line of Credit - SVB ................................................ 258,227 0 258,227
Accrued expenses .................................................... 1,432,288 1,965,995 (533,707)
Income Taxes Payable ................................................ 447,501 118,875 328,626
Accrued commissions, compensation & benefits ........................ 1,126,593 2,037,380 (910,787)
Accrued royalties ................................................... 3,518,066 3,559,316 (41,250)
Deferred revenue .................................................... 986,957 628,613 358,344
------------ ------------ ------------
Total current liabilities ......................................... 9,698,969 9,397,170 301,799
Deposits ............................................................... 185,270 217,327 (32,057)
Stockholders' equity (deficit):
Common stock ........................................................ 272,876 268,074 4,802
Additional paid-in capital .......................................... 83,627,587 83,328,395 299,192
Less treasury stock ................................................. (427,187) (427,187) 0
Accumulated Other Comprehensive Income .............................. (537,691) (744,100) 206,409
Accumulated deficit ................................................. (88,255,075) (58,480,580) (29,774,495)
------------ ------------ ------------
Total stockholders' equity ........................................ (5,319,490) 23,944,602 (29,264,092)
------------ ------------ ------------
Total liabilities and stockholders' equity (deficit) .............. $ 4,564,749 $ 33,559,099 ($28,994,350)
============ ============ ============
</TABLE>
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SystemSoft Corporation
Consolidated Statement of Operations
For the Twelve Months Ending January 31, 1999
<TABLE>
<CAPTION>
Year to Date
Actual
<S> <C>
Revenues:
Royalties ................................................ $ 6,311,921
Source code fees ......................................... 800,919
Engineering services ..................................... 1,220,681
Other .................................................... (3,300)
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Total revenues ........................................ 8,330,221
Cost of revenues:
Custom engineering ....................................... 1,751,671
Technical documentation .................................. 230,280
Product royalties ........................................ 1,000,116
Amortization of purchased license fees ................... 1,421,511
Amortization of capitalized development cost ............. 272,024
Label expenses ........................................... 77,028
NRE other costs .......................................... 352,980
Packaged product costs ................................... 30,977
Other .................................................... 277,693
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Total cost of revenue ................................. 5,414,280
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Gross margin ............................................. 2,915,941
Operating expenses:
Research and development ................................. 7,649,804
QA ....................................................... 1,674,354
Sales .................................................... 3,901,312
Marketing ................................................ 3,103,770
General and administrative ............................... 6,870,185
Restructuring charge ..................................... 9,183,305
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Total operating expenses .............................. 32,382,730
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Income from operations ..................................... (29,466,789)
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Interest income .......................................... 127,645
Interest expense ......................................... 135,637
Gain (loss) on sale of fixed assets ...................... 69,530
Foreign exchange gain (loss) ............................. (11,826)
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Income before provision for income taxes ................... (29,417,077)
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Provision for income taxes ................................. 357,419
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Net income ................................................. (29,774,496)
============
Foreign currency translation ............................... (537,691)
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Total comprehensive income ................................. ($30,312,187)
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</TABLE>
