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UNITED STATES
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
DECEMBER 8, 1997
Date of Report (Date of earliest event reported)
SOUND SOURCE INTERACTIVE, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-28604 95-4264046
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
26115 Mureau Road, Suite B, Calabasas, California 91302-3126
(Address of principal executive offices) (Zip Code)
(818) 878-0505
Registrant's telephone number, including area code
2985 Hillcrest Drive, Suite A, Westlake Village, California 91362
(Former name or former address, if changed since last report.)
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ITEM 5. OTHER EVENTS
The Company is filing herewith an unaudited condensed consolidated balance
sheet as of October 31, 1997 and an unaudited condensed consolidated statement
of operations for the month of October 1997, to update its consolidated
financial statements previously on file.
ITEM 7. FINANCIAL STATEMENTS
The unaudited condensed consolidated balance sheet as of October 31, 1997
and the unaudited condensed consolidated statement of operations for the month
of October 1997 filed herewith have been prepared by the Company based upon what
the Company deemed to be proper assumptions and therefore do not include all
information and notes necessary for a fair presentation of financial position,
results of operations, and cash flows in conformity with generally accepted
accounting principles. The unaudited condensed consolidated balance sheet and
unaudited condensed consolidated statement of operations include the accounts of
Sound Source Interactive, Inc. and its wholly owned subsidiary (collectively
referred to as the Company). The operating results for the month of October 1997
are unaudited and are not necessarily an indication of the results to be
expected for the full fiscal quarter ending December 31, 1997. The results of
operations as reported for the month of October 1997 should be read in
conjunction with the consolidated historical financial statements and the
footnotes thereto included in the Company's Annual Report on Form 10-KSB for the
fiscal year ended June 30, 1997, and the most recent interim financial
information reported on Form 10-QSB for the three-month period ended
September 30, 1997.
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SOUND SOURCE INTERACTIVE, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEET
OCTOBER 31, 1997
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ASSETS
Current Assets:
Cash and cash equivalents $ 127,330
Accounts receivable - net 1,686,903
Inventory - net 292,769
Prepaid royalties 1,554,911
Prepaid expenses 71,088
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Total current assets 3,733,001
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Property and equipment - net 377,120
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TOTAL ASSETS $ 4,110,121
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 1,138,596
Accrued compensation and related taxes 243,708
Accrued royalties 1,627,347
Current portion of capital lease obligations 8,388
Deferred revenues 12,000
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Total current liabilities 3,030,039
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Capital lease obligations, net of current portion 901
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Stockholders' Equity:
Common stock - $.001 par value,
20,000,000 shares authorized
4,412,099 shares issued and
outstanding 4,412
Warrants 1,104,925
Additional paid-in capital 13,542,258
Accumulated deficit (13,572,414)
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Total stockholders' equity 1,079,181
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,110,121
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SOUND SOURCE INTERACTIVE, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE ONE MONTH ENDED OCTOBER 31, 1997
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Net sales $ 1,236,966
Cost of sales 577,602
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Gross profit 659,364
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Operating costs and expenses:
Marketing and sales 132,566
Compensation in connection with common
stock and common stock options issued
for services rendered 29,365
Other general and administrative 146,028
Research and development 84,475
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Total operating costs and expenses 392,434
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Operating income 266,930
Other income 932
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Net income $ 267,862
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Net income per common share $ .06
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Weighted average number of common shares
outstanding 4,546,956
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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.
Sound Source Interactive, Inc.
By /s/ Ulrich E. Gottschling
Ulrich E. Gottschling, President,
Chief Operating Officer, Chief Financial
Officer, Treasurer, Secretary And Director
Date: December 8, 1997
