SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES ACT OF 1934
For the quarterly period ended September 30, 1998
Commission file number 1-10751
OBJECTSOFT CORPORATION
(Exact Name of Small Business Issuer as Specified in Its Charter)
DELAWARE 22-3091075
(State of incorporation) (IRS Employer ID number)
CONTINENTAL PLAZA III, 433 HACKENSACK AVENUE
HACKENSACK, NJ 07601
(Address of Principal Executive Offices)
(201)343-9100
(Issuer's Telephone Number Including Area Code)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X No ___ .
(Applicable only to Corporate Issuers)
Indicate the number of shares outstanding of each of the issuer's classes of
common equity, as of the last practicable date.
Class November 13, 1998
Common Stock, $.0001 par value 4,564,898
Transitional Small Business Disclosure Format (check one):
Yes ___ No X
<PAGE>
OBJECTSOFT CORPORATION
INDEX
Page #
Part I. Financial Information
Item 1.Financial statements
Condensed Balance Sheets- 1
September 30, 1998 and December 31, 1997
Condensed Statements of Operations
Three Months and the Nine Months Ended
September 30, 1998 and 1997 2
Condensed Statements of Cash Flows
for the Nine Months Ended
September 30, 1998 and 1997 3
Notes to Condensed Financial Statements 4
Item 2.Management's Discussion and Analysis
or Plan of Operation 6
Part II Other Information
Item 2. Change in Securities and Use of Proceeds 13
Item 4. Submission of Matters to a Vote of
Security Holders 13
Item 5. Other information 14
Item 6.Exhibits and reports on Form 8-K 14
Signature 15
Exhibit index 16
Exhibit 27 Article 5 Financial Data Schedule 17
<PAGE>
PART I Financial information
<TABLE>
OBJECTSOFT CORPORATION
CONDENSED BALANCE SHEETS -- SEPTEMBER 30, 1998 (Unaudited) AND DECEMBER 31, 1997
<CAPTION>
September December
30, 1998 31, 1997
------------ ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $66,657 $209,455
Marketable securities 100,000 915,938
Accounts receivable 191,269 364,859
Prepaid expenses and other
current assets 366,345 235,150
Notes receivable-
officer/ shareholder 440,000 440,000
Note receivable - other 151,333 25,000
------------ ------------
Total current assets 1,315,604 2,190,402
Equipment, at cost, net of
accumulated depreciation 436,608 384,071
Capitalized software 30,821 78,231
Other assets 22,174 70,847
------------ ------------
T O T A L 1,805,207 $2,723,551
============ ============
LIABILITIES
Current liabilities
Current portion of long-term debt $10,265 $8,686
Current portion of obligations
under capital lease 10,057 27,348
Accounts payable 415,910 296,658
Accrued expenses 211,019 84,560
Other current liabilities 8,018 2,163
------------ ------------
Total current liabilities 655,269 419,415
------------ ------------
Long-term debt 17,205 5,413
Obligations under capital lease 20,557 25,475
------------ ------------
Total Liabilities 693,031 450,303
------------ ------------
STOCKHOLDERS' EQUITY
Preferred stock, $100 liquidating value,
issued and outstanding 9,360 shares 936,000
Common stock, $.001 par value; authorized
20,000,000 shares; issued and outstanding
4,082,676 shares at December 31, 1997,
and 4,564,898 at September 30, 1998 456 408
Additional paid-in capital 7,108,821 6,942,862
Accumulated deficit (6,933,101) (4,670,022)
------------ ------------
Total stockholders' equity 1,112,176 2,273,248
------------ ------------
T O T A L $1,805,207 $2,723,551
============ ============
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<TABLE>
OBJECTSOFT CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE AND THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND SEPTEMBER 30, 1997
UNAUDITED
<CAPTION>
Three months ended Nine Months Ended
September 30 September 30 September 30 September 30
1998 1997 * 1998 1997 *
------------ ------------ ----------- ------------
<S> <C> <C> <C> <C>
Sales and services $ 29,710 $ 149,263 $ 133,412 $ 439,204
------------ ------------ ----------- ------------
Expenses:
Cost of sales and services 156,273 204,295 517,984 628,953
Research and development 135,304 175,167 435,345 462,775
General and administrative 503,282 396,206 1,407,875 1,281,989
------------ ------------ ----------- ------------
Total expenses 794,859 775,668 2,361,204 2,373,717
------------ ------------ ----------- ------------
Loss from operations (765,149) (626,405) (2,227,792) (1,934,513)
------------ ------------ ----------- ------------
Other income(expense):
Realized and unrealized gain(loss) on
marketable securities 1,000 (5,935)
Interest and dividend income 12,184 53,282 59,390 137,954
Interest expense (2,607) (3,428) (8,742) (10,396)
Provision for loss on loan receivable (50,000) (200,000)
------------ ------------ ----------- ------------
Total other income (expense) 10,577 (146) 44,713 (72,442)
------------ ------------ ----------- ------------
NET (LOSS) $ (754,572) $ (626,551) $ (2,183,079) $ (2,006,955)
============ ============ =========== ============
BASIC AND DILUTED NET (LOSS) PER SH $ (0.17) $ (0.15) $ (0.50) $ (0.49)
============ ============ =========== ============
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 4,564,898 4,082,219 4,329,969 4,061,643
============ ============ =========== ============
* Reclassified to conform to current year's presentation
</TABLE> -2-
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<TABLE>
OBJECTSOFT CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997 - (UNAUDITED)
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30,
1998 1997
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net (loss) $ (2,183,079) $ (2,006,955)
Adjustments to reconcile net loss to net cash (used in) operating activities:
Depreciation and amortization 273,887 260,435
Provision for loss on loan receivable 200,000
Stock options issued for services rendered 4,000
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable 173,590 (217,939)
(Increase) decrease in other current assets (131,195) 21,691
Decrease in note receivable- other 25,000
Decrease in other assets 48,673 44,687
Increase in accounts payable 119,252 122,253
Increase in accrued expenses and
other liabilities 132,314 25,159
------------ ------------
Net cash used in operating activities (1,541,558) (1,546,669)
------------ ------------
Cash flow from investing activities:
Capital expenditures (250,565) (94,381)
Capitalized software and courseware (28,449) (47,157)
Sale (purchase) of marketable securities 815,938 (1,589,601)
Loan receivable Interactivisions,Inc. (250,000)
Increase in notes receivable officer shareholder (440,000)
------------ ------------
Net cash provided by (used in) investing activi 536,924 (2,421,139)
------------ ------------
Cash flow from financing activities
Proceeds from issuance of stock in
private placement 870,674
Proceeds from exercise of warrants
and issuance of 60,000 shares 60,000
Principal payments on obligations
under capital leases (39,712) (29,944)
Proceeds from long-term debt 30,874
------------ ------------
Net cash provided by financing activities 861,836 30,056
------------ ------------
NET INCREASE (DECREASE) IN CASH (142,798) (3,937,752)
Cash, beginning of period 209,455 4,039,358
------------ ------------
Cash, end of period 66,657 101,606
============ ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest expense paid 8,742 10,396
============ ============
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OBJECTSOFT CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
SEPTEMBER 30, 1998
NOTE A -- BASIS OF PRESENTATION
The accompanying unaudited condensed financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information, the instructions to Form 10-QSB and item 310 (b) of Regulation SB.
Accordingly, they do not include all the information and footnotes required by
generally accepted accounting principles for complete financial statements. In
the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for fair presentation have been included. For
further information, refer to the Financial Statements and footnotes thereto
included in the Company's Form 10-KSB (for the year ended December 31, 1997) as
filed with the Securities and Exchange Commission.
NOTE B -- LOSS PER SHARE
Basic and diluted net loss per share was computed based on the weighted average
number of shares of common stock outstanding during the period.
NOTE C -- FINANCING
On May 13, 1998 (the "Subscription Date"), the Company entered into the Private
Equity Line of Credit Agreement, which was further amended, ( the "Financing
Agreement"), with several investors (the "Investors") which provided for a
commitment to fund up to $7,100,000 to the Company. As of the Subscription Date
the Investors purchased 444,444 shares of the Company's Common Stock (the
"Initial Shares") for $900,000 and received Warrants to purchase an aggregate of
18,000 shares of Common Stock. In addition, the Company issued to the Placement
Agent 37,778 shares of Common Stock and Warrant A to purchase an additional
9,000 shares. The Financing Agreement provided for "reset rights" pursuant to
which, in case the market price of the Company's Common Stock fell below a
certain level, on certain repricing dates, the Investors would receive
additional shares of Common Stock.
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<PAGE>
The Financing Agreement also provided for the Investors to purchase Series C
Convertible Preferred Stock (the "Preferred Shares") for $1,200,000. As of
September 29, 1998, the Investors purchased 9,000 Preferred Shares for $900,000
(the "Proceeds") and the Placement Agent received 360 Preferred Shares. In an
amendment to the Financing Agreement, the aformentioned reset rights were
eliminated and, the Investors and the Placement Agent received an aggregate of
$664,000 out of the Proceeds, in lieu thereof.
On October 29, 1998, the Company issued an additional 1,000 Preferred Shares for
$100,000, and expects to issue an additional 2,000 Preferred Shares for $200,000
by December 31, 1998, which would complete the sale of the Preferred Shares
pursuant to the
Financing Agreement.
Each Preferred Share may be converted into Common Shares at a conversion rate
determined by dividing $100, the purchase price per Preferred Share, by the
conversion price, which is the lesser of (a) .85 times the average Closing Bid
Price (as defined in the Certificate of Designation of the Preferred Shares) of
the Common Stock for the five trading days ending on the day prior to the
conversion of the Preferred Shares, or (b) $2.5313.
In addition, pursuant to a "Put Option", the Company may from time to time,
subject to the fulfillment of various conditions,
cause the Investors to purchase additional Common Stock at 85% of the Market
Price, as defined in the Financing Agreement, which could potentially produce
proceeds of up to $5,000,000. As of November 10, 1998, the Company did not meet
all of the conditions for exercise of the Put Option and it is uncertain when
the conditions will be fulfilled.
-5-
<PAGE>
OBJECTSOFT CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN
OF OPERATION
PART II
Special Note Regarding Forward-Looking Statements
A number of statements contained in this report are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995 that
involve risks and uncertainties
that could cause actual results to differ materially from those expressed or
implied in the applicable statements. These risks and uncertainties include but
are not limited to: historical and potential future operating losses;
uncertainty of additional financing; limited operating history; accumulated
deficit; recent establishment of new business divisions; recent change of
operating focus; dependence on new untested product; risks related to consulting
and training services; uncertainty of product development; vulnerability to
technological factors; year 2000 problem; the uncertainty of market acceptance
of the Company's product; competition; possible difficulty in complying with
government contract requirements; dependence on certain third parties and on the
Internet; limited customer base; risk of potential manufacturing difficulties;
risk of requirements to comply with government regulations; potential liability
for information and content disseminated throughout the network; dependence on
key personnel and proprietary technology; risk of system failure, security risks
and liability risks; the Company's vulnerability to rapid industry change and
technological obsolescence; the limited nature of its product life; the unproven
status of the Company's products in widespread commercial use, including the
risks that the Company's current and future products may contain errors that
would be difficult to detect and correct; uncertainties with respect to the
Company's business strategy; NASDAQ maintenance requirements; possible delisting
of securities from NASDAQ, penny stock regulations; general economic conditions,
and other risks described elsewhere herein and in the Company's Form 10-KSB for
the fiscal year ended December 31, 1997, in the Company's Post-Effective
Amendment No. 2 to the Registration Statement on Form SB-2 filed with the
Securities and Exchange Commission on August 12, 1998, and in the Company's
Registration Statement on Form S-3 which was declared effective by the
Securities and Exchange Commission on September 29, 1998.
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<PAGE>
Results of Operations
Three Months and Nine Months Ended September 30, 1998
Compared With Three Months and Nine Months
Ended September 30, 1997
The results of operations for the nine months and three months ended September
30, 1998 are not necessarily indicative of the results that may be expected for
any other interim period or for the fiscal year ending December 31, 1998.
Net sales and services income for the three months ended September 30, 1998, as
compared to the three months ended September 30, 1997, decreased by $119,553 or
80% to $29,710 from $149,263. Net sales and services income for the nine months
ended September 30, 1998, as compared to the nine months ended September 30,
1997, decreased by $305,792 or 70% to $149,263 from $439,204.
The Company's decreased sales and services income resulted from a decrease in
revenues from development and training due to the redirection of the Company's
resources to transactional fee-based products and services. In addition, there
was a decrease in rental income due to the completion of the original contract
with the City of New York, and an extension of the contract with the City of New
York which resulted in a reduction in the rental of five kiosks from $30,090 to
$9,700 per month, through September 30,
1999, which will be used to recover the incremented costs associated with
providing services for the extended period. The above decreases were offset, in
part, by an increase in revenues due to the sale of equipment and revenues
derived from advertising on the Company's kiosks.
Cost of sales and services for the three months ended September 30, 1998 as
compared to the three months ended September 30, 1997, decreased by $48,022 or
24% to $156,273 from $204,295. Cost of sales and services for the nine months
ended September 30, 1998 as compared to the nine months ended September 30,
1997, decreased by $110,969 or 18% to $517,984 from $628,953. The decreases were
due to the redirection of the Company's resources to transactional fee-based
products, which were offset, in part, by an increase in costs related to the
sale of equipment and normal increases in expenses.
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<PAGE>
Cost of sales and services exceeded sales and services income due to fixed costs
incurred in the sale and services of initial units installed in San Francisco,
fixed costs associated with the sale of a small number of units, and set up
costs incurred in generating initial advertising revenue. Management expects
that as the number of installed kiosks will increase, the incremental costs as a
percentage of sales will decline. The ratio of costs to sales will therefore be
more favorable.
Research and development expenses for the three months ended September 30, 1998
as compared to the three months ended September 30, 1997, decreased by $39,863
or 23% to $135,304 from $175,167. Research and development expenses for the nine
months ended September 30, 1998 as compared to the nine months
ended September 30, 1997, decreased by $27,430 or 6% to $435,345 from $462,775.
This was due to a decrease in personnel devoted to research and development.
General and administrative expenses for the three months ended September 30,
1998 as compared to the three months ended September 30, 1997, increased by
$107,076 or 27% to $503,282 from $396,206. This was due principally to increases
in personnel costs, consulting and professional fees. General and administrative
expenses for the nine months ended September 30, 1998 as compared to the nine
months ended September 30, 1997, increased by $125,886 or 10% to $1,407,875 from
$ 1,281,989. This was due principally to increases in personnel expenses in the
first quarter of 1998.
Other income for the three months ended September 30, 1998 as compared to the
three months ended September 30, 1997, increased by $10,723 to $10,577 from
($146) for the three months ended September 30, 1997. Other income for the nine
months ended September 30, 1998 as compared to the nine months ended September
30, 1997, increased by $117,155 to $44,713 from ($72,442). Investment income, in
1998, was lower than in 1997 due to the utilization of cash and investments to
fund operations. Additionally, during 1997, other income was reduced as a result
of the $200,000 provision for loss on a loan receivable.
-8-
<PAGE>
The net loss for the three months ended September 30, 1998 as compared to the
three months ended September 30, 1997, increased by $128,021 or 20% to $754,572
from $626,551. The net loss for the nine months ended September 30, 1998 as
compared to the nine months ended September 30, 1997, increased by $176,124 or
9% to $2,183,079 from $2,006,955 for the nine months ended September 30, 1997.
This was due to lower revenues due to the renegotiation of the New York City
contract partly offset by a provision for loan receivable in 1997.
Liquidity and Capital Resources
The Company provides IPAT and Internet-based services. Beginning in mid-1994,
the Company changed its focus from consulting and training services to
transactional, fee-based and advertising-supported products and services. The
Company's SmartStreet(TM) IPATs were introduced in July 1996. The Company has
not recognized any significant income to date from the SmartStreet (TM) IPAT
rentals. Although the Company anticipates that it will begin to recognize
greater revenues from the SmartStreet (TM) IPATs during 1998 and 1999, it cannot
predict the actual timing or amount of such revenues. For the nine months ended
September 30, 1998, the Company incurred a net loss of $2,183,079. The
accumulated deficit increased to $6,933,101, as the Company continues to incur
operating losses as expenses exceed revenue. The Company expects to report
losses for the year ended December 31, 1998. To date, the Company has installed
seven IPATs in the City of New York and thirteen IPATs in other locations and
realized increased revenues from advertising on the kiosks. The Company will
continue to incur substantial losses unless and until it significantly increases
the number of IPATs placed in the City of New York and other locations, and
realizes increased revenues from advertising. The Company has working capital of
$660,335 as of September 30, 1998 as compared to $1,770,987 as of December 31,
1997, or a decrease of $1,110,652. Capitalized expenditures and capitalized
software amounted to $ 279,014.
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<PAGE>
The Company's management believes that the combination of cash on hand and
operating cash flow, together with proceeds from the sale of equity securities,
will provide sufficient liquidity to meet the Company's cash flow requirements
at least until December 31, 1998. Continuing operations thereafter will depend
on cash flow operations and the ability to raise additional funds through
equity, debt or other financing. There can be no assurance , however, that such
funds will be available.
The Company is actively seeking to expand its presence to New York City and also
provide IPATs to other municipalities, states and government agencies and to
organizations in the private sector. The Company is also working on a version of
its SmartSign
(TM) IPATs that can be sold to retail stores, and which the Company believes
has the potential to be sold to certain national chains. The Company began
deriving revenues from advertising in May 1998 from contracts signed March 1998,
and the Company is endeavoring to increase the revenue base. In addition, the
Company will seek to derive transaction fees in connection with the use of
kiosks by the public to obtain documents or certain other services, although, so
far, transaction revenues have been minimal. The amount of future transaction
and advertising revenues, if any, will depend on user and advertiser acceptance
of the IPATs.
On May 13, 1998 (the "Subscription Date"), the Company entered into the Private
Equity Line of Credit Agreement, which was further amended, ( the "Financing
Agreement") with several investors (the "Investors") which provided for a
commitment to fund up to $7,100,000 to the Company. As of the Subscription Date
the Investors purchased 444,444 shares of the Company's Common Stock (the
"Initial Shares") for $900,000 and received Warrants to purchase an aggregate of
18,000 shares of Common Stock. In addition, the Company issued to the Placement
Agent 37,778 shares of Common Stock and Warrant A to purchase an additional
9,000 shares. The Financing Agreement provided for "reset rights" pursuant to
which, in case the market price of the Company's Common Stock fell below a
certain level, on certain repricing dates, the Investors would receive
additional shares of Common Stock.
-10-
<PAGE>
The Financing Agreement also provided for the Investors to purchase Series C
Convertible Preferred Stock (the "Preferred Shares") for $1,200,000. As of
September 29, 1998, the Investors purchased 9,000 of Preferred Shares for
$900,000 (the "Proceeds") and the Placement Agent received 360 shares of
Preferred Shares. In an amendment to the Financing Agreement, the aformentioned
reset rights were eliminated and, the Investors and the Placement Agent received
an aggregate of $664,000 out of the Proceeds, in lieu thereof.
On October 29, 1998, the Company issued an additional 1,000 Preferred Shares for
$100,000, and expects to issue an additional 2,000 Preferred Shares for $200,000
by December 31, 1998, which would complete the sale of the Preferred Shares
pursuant to the
Financing Agreement.
Each Preferred Share may be converted into Common Shares at a conversion rate
determined by dividing $100, the purchase price per Preferred Share, by the
conversion price, which is the lesser of (a) .85 times the average Closing Bid
Price (as defined in the Certificate of Designation of the Preferred Shares) of
the Common Stock for the five trading days ending on the day prior to the
conversion of the Preferred Shares, or (b) $2.5313.
In addition, pursuant to a "Put Option", the Company may from time to time,
subject to the fulfillment of various conditions,
cause the Investors to purchase additional Common Stock at 85% of the Market
Price, as defined in the Financing Agreement, which could potentially produce
proceeds of up to $5,000,000. As of November 10, 1998, the Company did not meet
all of the conditions for exercise of the Put Option and it is uncertain when
the conditions will be fulfilled.
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<PAGE>
The Company anticipates that its working capital requirements and its operating
expenses will significantly increase should the Company expand production and
sales of IPATs. The timing of increases of expenses, and the amount of the
working capital consumed by operations, marketing and roll-out expenses, will
impact the magnitude and timing of the Company's cash requirements. To meet any
additional working capital needs, the
Company intends to use funds from operations and to complete additional
financing. Although the Company's management believes that additional funding
arrangements are available, the execution of any such arrangements will depend
on timing, market conditions and available terms. However, there can be no
assurance that the Company can or will obtain sufficient funds from closing
additional financing on terms acceptable to the Company.
The rate of inflation was insignificant during the quarter ended September 30,
1998. The Company continually reviews its cost in relation to the pricing of its
products and services.
Year 2000 Issues
Many currently installed computer systems and software products are
coded to accept only two digit entries in the date code field. Beginning in the
year 2000, these date code fields will need to accept four digit entries to
distinguish the twenty-first century dates from the twentieth century dates. The
Company uses software and related technologies that will be affected by the
"Year 2000 Issue". The Company began the process of identifying the changes
required to their computer programs and hardware during 1996. The Company
believes that all of its major programs and hardware are Year 2000 compliant. To
date, the Company has not incurred any significant amount relating to the
assessment, identification and remediation of the Company's major programs and
hardware with respect to the Year 2000 Issue. The Company believes that it will
not incur any significant costs between now and January 1, 2000 to resolve Year
2000 issues. The Company has initiated formal communications with all of its
significant suppliers and customers to determine the extent to which the Company
is vulnerable to those third parties' failure to remediate their own Year 2000
Issue. However, there can be no assurance that other companies' computer systems
and applications on which the Company's operations rely will be timely
converted, or that any such failure to convert by another company would not have
a material adverse effect on the Company's systems and operations. Furthermore,
there can be no assurance that the software that the Company uses which has been
designed to be Year 2000 compliant contains all necessary date code changes.
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<PAGE>
PART II
OTHER INFORMATION
Item 2. Change in Securities and Use of Proceeds
Reference is made to Item 2 of Form 10QSB for the quarter ended June 30,
1998. All proceeds from the company's initial public offering in November, 1996,
has been used as set forth in above-mentioned Form 10QSB.
Item 4. Submission of Matters to a Vote of Security Holders.
On July 9, 1998, at the Company's annual meeting of stockholders, the
stockholders of the Company approved the following matters:
First, the election of Messrs. George J. Febish and Daniel E. Ryan as
Class II directors of the Company to serve until the Annual Meeting of
stockholders scheduled to be held in the year 2000 and until their successors
are elected and qualified. There were 4,268,528 votes cast for the election of
each of George J. Febish and Daniel E, Ryan and 23,400 votes were withheld.
Second, the approval of amendments to the Company's 1996 Stock Option
Plan (the "1996 Stock Option Plan") to increase the number of shares which may
be issued thereunder from 250,000 to 750,000 shares and to eliminate the
Non-Employee Director formula option grants and certain provisions relating
thereto currently set forth in the 1996 Stock Option Plan. There were 2,209,638
votes cast for the matter, 64,500 votes cast against the matter, 22,600
abstentions and 1,995,190 broker non-votes.
Third, the approval of the issuance of the Company's securities pursuant
to a Private Equity Line of Credit Agreement among the Company, Settondown
Capital International Ltd. and the investors referred to therein, dated as of
May 13, 1998. There were 2,202,438 votes cast for the matter, 40,500 votes cast
against the matter, 53,800 abstentions and 1,995,190 broker non-votes.
Fourth, the ratification and approval of the appointment of Richard A.
Eisner & Company, LLP as the Company's independent accountants for the fiscal
year ending December 31, 1998. There were
4,240,928 votes cast for the matter, 9,500 votes cast against the matter and
41,500 abstentions.
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<PAGE>
Item 5. Other Information.
On October 7, 1998, the Company announced the introduction of FastTake, an
interactive kiosk for searching for and displaying plot summaries, identifying
information about videos and viewing of video trailers. In addition to its
powerful database, FastTake has the ability to offer reviews, provide plot
summaries and hold up to 500 movie trailers. FastTake is designed as a retail
selling tool which provides consumers with the information required to make
purchasing and rental decisions as well as transactions. For retailers,
FastTake creates an affordable way to move inventory without an increase in
workforce.
FastTake rents for a retail list price of $399 per month, and is expected to
ship in volume in the first quarter of 1999. On November 16th, the Company
announced that it is adding a new Internet-supported electronic commerce
feature, which will allow in-store ordering of up to 160,000 titles for direct
delivery to the customer or for pick-up at the store. The Company plans to add
e-commerce capabilities early in the second quarter of 1999.
Installation and field service will be provided by IBM Corporation.
The Company believes that FastTake represents an important additional
direction for the Company by adding a private sector dimension, as compared to
the public sector that comprised the bulk of the Company's sales to date.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits -
Exhibit 27- Financial Data Schedule
(b) Reports on Form 8-K
The Company filed no reports on Form 8-K during the
quarter ended September 30, 1998.
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<PAGE>
SIGNATURE
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 thereunto duly authorized.
OBJECTSOFT CORPORATION
BY /s/ David E. Y. Sarna
David E. Y. Sarna, Co-Chief
Executive Officer and Secretary
November 16, 1998
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OBJECTSOFT CORPORATION
Exhibit Index
Exhibit Number Page #
27 Financial Data Schedule 17
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
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0
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</TABLE>
