<PAGE>
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED
June 30, 1997
Commission File No 1-13084
BYRON PREISS MULTIMEDIA COMPANY, INC.
- -------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
New York 13-3676574
- ------------------------- ------------------
(State of Incorporation) (I.R.S. Employer
Identification
number)
24 West 25th Street
New York, New York 10010
- ------------------- -------
(Address of principal executive offices) (Zip code)
(212) 989-6252
---------------------------
(Issuer's telephone number)
Check whether the Issuer (1) filed all reports required to be filed by Section
13 or 15 (d) of the Securities Exchange Act of 1934 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
--- ------
The number of shares outstanding of the issuer's class of common equity, as of
the latest practical date is 7,174,438 shares of common stock par value $.001
per share as of August 11, 1997
Page 1 of 16 pages
<PAGE>
BYRON PREISS MULTIMEDIA COMPANY, INC.
FORM 10-QSB
INDEX
PART I FINANCIAL INFORMATION PAGE
Item 1. Financial Statements:
Consolidated Balance Sheet as of June 30, 1997. 3
Consolidated Statements of Operations for three
and six months ended June 30, 1997 and 1996. 4
Consolidated Statements of Changes in Shareholders' Equity
for six months ended June 30, 1997. 5
Consolidated Statement of Cash Flows for the
the six months ended June 30, 1997 and 1996. 6-7
Notes to Consolidated Financial Statements. 8-10
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. 11-13
PART II
Item 4. Submission of Matters to a vote of Security Holders. 14
Item 6. Exhibits & Reports on Form 8-K. 15
Signatures 16
Page 2 of 16 pages
<PAGE>
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
BYRON PREISS MULTIMEDIA COMPANY, INC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
June 30,
1997
--------
(unaudited)
ASSETS
------
CURRENT ASSETS:
Cash and cash equivalents $ 1,455,937
Accounts receivable, net 1,341,643
Inventory, net 53,158
Other current assets 153,763
-----------
Total current assets 3,004,501
PREPUBLICATION COSTS AND RIGHTS PURCHASED,net 1,795,464
EQUIPMENT AND LEASEHOLD IMPROVEMENTS, net 638,244
GOODWILL, net 2,528,787
OTHER ASSETS 101,821
-----------
Total assets $ 8,068,817
===========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 2,142,661
Deferred income 824,592
Current portion of convertible note 301,589
Reserve for product returns 381,727
Note payable - current 64,398
Other current liabilities 315,710
----------
Total current liabilities 4,030,677
ROYALTY PAYABLE 300,000
CONVERTIBLE NOTE (Note 4) 1,480,769
-----------
Total liabilities 5,811,446
SHAREHOLDERS' EQUITY:
Preferred Stock, 5,000,000 shares authorized; 0 shares
issued and outstanding --
Common stock, 30,000,000 shares authorized,
7,174,438 shares issued and outstanding,
$.001 par value 7,174
Additional paid-in capital 13,026,529
Retained deficit (10,776,332)
-----------
Total shareholders' equity 2,257,371
-----------
Total liabilities and shareholders' equity $ 8,068,817
===========
The accompanying notes are an integral part of this balance sheet.
Page 3 of 16 pages
<PAGE>
BYRON PREISS MULTIMEDIA COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
---------- --------- ---------- -----------
NET REVENUES $1,142,646 $1,274,609 $1,715,744 $1,919,300
COST OF REVENUES 1,439,897 1,330,745 2,125,753 1,659,273
--------- --------- --------- ----------
Gross (loss)
profit ( 297,251) ( 56,136) ( 410,009) 260,027
SELLING, GENERAL AND
ADMINISTRATIVE EXP. 1,586,725 1,063,641 2,680,481 1,938,959
RESTRUCTURING
CHARGES 1,437,259 -- 1,437,259 --
--------- ----------- ---------- ----------
Loss from operations 3,321,235 1,119,777 4,527,749 1,678,932
OTHER INCOME, net 17,056 39,108 40,522 92,149
----------- ---------- ----------- ----------
Net loss $ 3,304,179 $1,080,669 $4,487,227 $1,586,783
=========== ========== ========== ==========
NET LOSS PER WEIGHTED
AVERAGE SHARES
OUTSTANDING $ 0.49 $ 0.25 $ $0.82 $ 0.37
=========== ========== ========= =======
WEIGHTED AVERAGE
SHARES OUTSTANDING 6,677,448 4,261,875 5,500,644 4,261,875
=========== ========= ========= =========
The accompanying notes are an integral part of these consolidated statements.
Page 4 of 16 pages
<PAGE>
BYRON PREISS MULTIMEDIA COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 1997
(unaudited)
Additional
Common Paid-in Retained
Stock Capital Deficit Total
------ ---------- --------- -----
BALANCE,
December 31, 1996 $4,262 $10,789,441 $( 6,289,105) $4,504,598
Purchase of
Dolphin, Inc. 400 399,600 400,000
Conversion of
debentures 2,512 1,837,486 1,840,000
Net loss for the
six months ended
June 30,1997 4,487,227 4,487,227
--------- ---------
BALANCE, June 30,1997 $7,174 $13,026,529 $(10,776,332) $2,257,371
====== =========== ============ ==========
The accompanying notes are an integral part of these consolidated statments.
Page 5 of 16 pages
<PAGE>
BYRON PREISS MULTIMEDIA COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
For the six months ended
June 30,
------------------------
1997 1996
------------------------
CASH FLOWS USED IN OPERATING ACTIVITIES:
Net Loss $(4,487,227) $(1,586,783)
Adjustments to reconcile net loss to net
cash provided by operating activities-
Depreciation and amortization:
Fixed assets and organization costs 114,686 28,827
Amortization of goodwill 64,841 --
Prepublication costs and rights purchased 106,423 1,544,756
Restructuring charges 1,437,259
Changes in operating assets and liabilities-
Accounts receivable 939,498 ( 70,525)
Inventory 70,508 41,433
Other assets 27,794 (335,248)
Accounts payable and accrued expenses 199,953 (118,963)
Other current liabilities 48,513 47,321
Reserve for product return 380,627 --
Royalty payable 132,272 --
Deferred income 129,025 773,158
--------- -------
Net cash provided/(used) by operating actv. ( 835,828) 323,976
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale of marketable securities -- 5,455,931
Purchase of marketable securities -- (4,473,221)
Purchase of Dolphin, Inc ( 600,000) --
Prepublication costs and rights purchased ( 323,596) (2,988,810)
Acquisition of fixed assets ( 38,981) ( 60.723)
---------- ----------
Net cash used in investing activities ( 962,577) (2,066,823)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from convertible debenture (net) 1,840,000 --
Fees related to purchase of Dolphin, Inc. ( 64,412) --
Note payable - current 64,398 --
Convertible Note payable 32,358 --
Proceeds from issuance ofcommon stock, net -- ( 85,000)
----------- ----------
Net cash provided by financing actv. 1,872,344 ( 85,000)
----------- ----------
Net (decrease) increase in cash and
cash equivalents 73,939 (1,827,847)
CASH AND CASH EQUIVALENTS, beginning of year 1,381,998 4,593,120
CASH AND CASH EQUIVALENTS, end of period $1,455,937 2,765,273
========== =========
The accompanying notes are an integral part of these consolidated statements.
Page 6 of 16 pages
<PAGE>
BYRON PREISS MULTIMEDIA COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(continued) (Unaudited)
For the six months ended
June 30,
------------------------
1997 1996
------------------------
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the year for -
Taxes $ 11,558 $ 13,250
Interest 45,406 877
----------- ---------
Non-cash Investing and Financing:
Common Stock - Dolphin Acquisition $ 400,000 --
7% Convertible Note - Dolphin Acquisition 1, 750,000 --
Page 7 of 16 pages
<PAGE>
BYRON PREISS MULTIMEDIA COMPANYY, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1997 AND 1996
1. FINANCIAL STATEMENTS
The balance sheet as of June 30, 1997 and the related statements of operations,
statements of changes in shareholders' equity and statement of cash flows for
the periods ended June 30, 1997 have been prepared by the Company, without
audit. In the opinion of management, all adjustments (which include only normal
recurring adjustments) necessary to present fairly its financial position,
results of operations and cash flows as of June 30, 1997 and 1996 have been
made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. It is suggested that these financial statements
be read in conjunction with the December 31,1996 audited financial statements
and notes thereto. The results of operations for the three and six months ended
June 30, 1997 are not necessarily indicative of the operating results for the
full year.
2. Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the
Company and its wholly owned subsidiaries, Dolphin, Inc., Virtual Comics, Inc.,
Byron Preiss Multimedia On-Line Services, Inc. and Byron Preiss Multimedia
Holdings, Inc. Dolphin Inc. was acquired on March 21, 1997 and Virtual Comics,
Inc. was incorporated in the State of Delaware in November 1996. In July 1997
America Online, Inc. entered into a letter of intent regarding its acquisition
of a 19.9% interest in Virtual Comics Inc. Byron Preiss Multimedia On-Line
Services, Inc. and Byron Preiss Multimedia Holdings, Inc., have had no activity.
All significant intercompany accounts and transactions have been eliminated in
consolidation.
3. Restructuring Charges
During the second quarter of 1997, the Company recorded approximately $1,400,000
in restructuring charges. The Company initiated a restructuring plan to respond
to changing market conditions and to reflect the Company's expanded operations
in the education and publishing markets. The Company is reducing its reliance on
development and sale of CD-ROM's for the retail/consumer market. This
restructuring resulted in the write-down of costs associated with the partial
development of certain CD-ROM products which the Company has ceased development
and to a lesser extent the write down of certain of its inventory which is no
longer being actively sold.
4. Convertible Debentures
On February 5, 1997, the Company completed the sale of 8.0% convertible
debentures ("Debentures") due January 31, 1999 in the aggregate principal amount
Page 8 of 16 pages
<PAGE>
of $2,000,000 in reliance upon the exemption from registration under Regulation
S afforded by the Securities Act of 1933. In connection with the sale, the
Company received net proceeds in the amount of approximately $1,840,000
(excluding legal, accounting and other miscellaneous expenses). During April
1997, in accordance with the notices of conversion, the Debentures were
presented to the Company by each holder of Debentures and the Company issued and
delivered 2,512,563 shares of Common Stock representing approximately 35% of the
Company's issued and outstanding shares of Common Stock.
5. Convertible Note
On March 21,1997, the Company acquired all the issued and outstanding
capital stock of Dolphin, Inc., a New Jersey corporation. (See note 6) As part
of the purchase price, the Company issued to the principal shareholder, Andrew
K. Gardner, a $1,750,000 7% Convertible Note due March 1, 2001. The outstanding
principal balance of this Note, together with interest accruing thereon, is
repayable in thirty-nine equal monthly installments of $53,087.35 commencing
January 2, 1998.
6. RELATED PARTY TRANSACTIONS
Byron Preiss, a principal shareholder and CEO of the Company, is also the owner
and CEO of Byron Preiss Visual Publications, Inc. ("BPVP") and co-owner of
General Licensing Company, Inc. and Byron Preiss/Richard Ballantine, Inc. These
companies function as book producers, acquiring licenses from authors and
institutions. Byron Preiss Multimedia Company Inc. has purchased several such
licenses from said companies upon terms, including royalties in certain cases,
which the Company believes are as favorable as the terms which the Company could
have obtained in dealing with unaffiliated parties, and will have the
opportunity to purchase additional licenses under similar terms and conditions.
The Company also contracts public relations and marketing services from
Hilsinger Mendelson, Inc., on a project by project basis, whose president is the
spouse of Byron Preiss.
7. ACQUISITION. On March 21, 1997, the Company acquired all the issued and
outstanding capital stock of Dolphin, Inc., a New Jersey corporation, for total
consideration of $2,750,000 consisting of $600,000 in cash, a $1,750,000 7%
convertible note and 400,000 shares of the Company's common stock valued at
$1.00 per share. The acquisition has been accounted for as a purchase and the
related goodwill is being amortized over ten years. Dolphin is a software
development company serving customers in need of high quality, interactive
education and training software products. Such tailored products are used for
educational and training purposes of students, teachers, researchers, medical
professionals, and workers across a broad foray of industries. (See note 5 to
Financial Statements)
Page 9 of 16 pages
<PAGE>
PROFORMA WITH DOLPHIN, INC.
(unauditied)
The following reflects the financial results if Dolphin, Inc. acquisition had
occurred on January 1, 1997 and 1996.
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
---- ---- ---- ----
Revenues $1,435,892 $1,849,209 $2,008,990 $2,960,025
Loss from operations 1,817,479 880,619 3,123,721 1,308,654
Net loss 3,239,338 845,419 4,498,158 1,221,427
Loss per weighted average
shares outstanding $0.48 $0.18 $0.81) $0.26
Weighted average
shares outstanding 6,726,337 4,661,875 5,524,953 4,661,875
8. SEGMENT INFORMATION. In 1996, due to increased competition in the consumer
software market and increasing consumer demand in the Company's book titles, the
Company changed its strategy from a vertical approach of selling CD-ROMs to
placing more emphasis on its book publishing operations and effectively
segmented its primary operation into interactive multimedia development and book
publishing.
In the table set forth below, information regarding operations for each
of the Company's industry segments as of June 30, 1997 is as follows:
Six months ending June 30, 1997 (000's omitted)
-------------------------------
Interactive
Multimedia Book
Development Publishing Consolidated
----------- ---------- ------------
Net Revenues $ 938 $ 778 $ 1,716
========
Loss from operations 2,292 798 $ 3,090
Restructuring charge (1,304) (134) $ (1,438)
Other income, net 41
--------
Net loss $ 4,487
========
Identifiable assets 7,015 959 $ 7,974
Corporate assets 95
--------
$ 8,069
========
Depreciation and amortization of
equipment and leasehold
improvements $ 85 $30 $115
Capital expenditures $ 29 $10 $ 39
Page 10 of 16 pages
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations:
THREE MONTHS AND SIX MONTHS ENDED JUNE 30 1997 AS COMPARED TO
THREE AMD SIX MONTHS ENDED JUNE 30, 1996
During the second quarter ended June 30, 1997, the Company initiated a
restructuring plan to respond to changing market conditions and to reflect the
Company's expanded operations in the education and publishing markets. The
Company is and continues to reduce its reliability on development and sale of
CD-ROM's for the retail/consumer market unless such titles are co-published or
otherwise underwritten.
Net Revenues: For the three months ended June 30, 1997, the Company
reported net revenues of $1,142,646 as compared to $1,274,609 for the prior
comparable period. For the six month period ending June 30, 1997 the Company
reported net revenues of $1,715,744 as compared to $1,919,300 for the comparable
period a year ago. The small decrease in net revenues for both the three months
and six month periods ended June 30, 1997 when compared to the comparable
periods of a year ago, can be partially attributed to a lesser number of CD-ROM
titles being co-published as well as lower unit sales and lower sales price of
its CD-ROM titles which is slightly offset by an increase in the sales of books
and the inclusion of Dolphin Inc sales in the second quarter. Under the
company's distribution relationship with Simon & Schuster Interactive, during
the second quarter of 1997 the Company released one new CD-ROM title, Twelve
Circus Rings. Interactive Multimedia net revenues accounted for $938,000 or 55%
of net revenues for the six months ended June 30, 1997 as compared to $1,521,732
or 79% of net revenues for the first six months ended June 30, 1996. Books for
the six months ended June 30, 1997 accounted for $778,061 or 45% of net revenues
as compared to $397,568 or 21% of net revenues for the comparable period a year
ago.
Under both the Company's co-publishing and distribution arrangements
with Simon & Schuster, CD-ROM net revenues totalled $318,819 for the six months
ended June 30, 1997 compared to $1,087,896 for the same six month period ended
June 30, 1996.
Under the Company's co-publishing agreement with Putnam Berkley Group,
Inc., book revenues totalled $576,712 for the first six months of 1997 an
increase of 45%, up from $397,568 in the prior comparable period ended June 30,
1996.
Under a co-publishing and distribution arrangements with Pocket Books,
a division of Simon & Schuster, revenues totalled $201,349 for the first six
months ended June 30, 1997. Since this is a new relationships, no books were
completed in the first six months of 1996.
Cost of Revenues. Cost of revenues for the three months ended June 30,
1997 increased to $1,439,897 as compared to $1,330,745 for the same period a
year ago. Cost of revenues for the six months period ended June 30, 1997,
totalled $2,125,753 as compared to $1,659,273 for the comparable period ended
June 30, 1996. The dollar increase in the cost of revenues is principally
attributed to the increase in the number of units of book titles sold during the
quarter as well as the amortization of prepublication costs association with the
Company's
Page 11 of 16 pages
<PAGE>
subsidiary, Virtual Comics, Inc. In 1996 the Company elected to defer certain
development costs and amortize those costs over various periods up to and
including eighteen months.
Selling, General and Administrative Expenses. Selling, general and
administrative expenses for the quarter ended June 30 1997 was $1,586,725 and
for the six months was $2,680,481 as compared to $1,063,641 and $1,938,959
respectively for the prior year comparable periods. The increase in selling,
general and administrative expenses for both the quarter and six months ended
June 30, 1997 is largely attributable to an increase in expenses relating to the
Company's international and domestic financial public relations activities
($173,000), legal expenses associated with the Company's acquisition program
($156,000), amortization of Goodwill associated with the acquisition of Dolphin
Inc. ($72,000) and salaries ($91,000).
Restructing Charge. As discussed above, in the second quarter ended June 30,
1997 the Company initiated a restructuring plan which resulted in a charge of
$1,437,259. The charge includes a write-down of prepublication costs
($1,166,925) and inventory ($270,334) associated with cancelled or older titles
which are no longer being actively marketed.
Other Income. Other income decreased to $17,056 for the three months ended June
30, 1997 as compared to $39,108 for the comparable period and decreased to
$40,522 for the six months ended June 30, 1997 as compared to $92,149 for the
comparable prior year period a year ago due to less funds being available for
investment.
New Accounting Standard. In February 1997, the Financial Accounting Standards
Board issued Statement of Financial Accounting Standards no. 128, "Earnings per
Share." This Statement establishes standards for computing and presenting
earnings per share ("EPS") and applies to all entities with publicly held common
stock or potential common stock. This Statement replaces the presentation of
primary EPS and fully diluted EPS with a presentation of basic EPS and diluted
EPS, respectively. Basic EPS excludes dilution and is computed by dividing
earnings available to common stockholders by the weighted-average number of
common shares outstanding for the period. Similar to fully diluted EPS, diluted
EPS reflects the potential dilution of securities that could share in the
earnings. This statement is not expected to have a material effect on the
Company's reported EPS amounts. This Statement is effective for the Company's
financial statements for the year ending December 31, 1997.
Liquidity and Capital Resources. The Company's balance sheet at June 30,1997
reflects cash and cash equivalents totalling $1,455,937 and accounts receivable
totalling $1,341,643 with total current assets of $3,004,500. Accounts payables
and accrued expenses total $2,142,661, notes payable total $365,987 and other
current liabilities total $315,709. Deferred income of $824,661 which is
expected to be earned in the future, is now included in current liabilities. On
February 5, 1997, the Company completed a financing covering the sale of 8.0%
Convertible Debentures due January 31, 1999 in the aggregate principal amount of
$2,000,000.
Page 12 of 16 pages
<PAGE>
In April 1997, the Debentures were converted into common stock of the Company
(See Note 4 to the Financial Statements). At this time, the Company believes its
existing cash, cash equivalents, anticipated cash flow from operations and from
co-publishing relationships and assuming that the Company receives the balance
of its financing from Vengua Capital Markets, Ltd. will, be adequate to meet the
Company's cash requirements for the balance of 1997. At this time, the Company
is pursuing various potential acquisitions. In order to complete these
acquisitions or to fund the future operations of these acquisitions as well as
to fund on going operation of the Company, the Company will be required to raise
additional capital. There can be no assurance that the Company will generate
sufficient funds from operations or from its co-publishing relationships for the
balance of 1997 and thereafter or that any such financing alternatives will be
available on a timely basis or available on commercially acceptable terms to the
Company.
FORWARD-LOOKING INFORMATION. Statements contained in this Form 10-QSB that are
not historical facts, including, but not limited to, statements found in this
Management's Discussion and Analysis of Financial Condition and Results of
Operations, are forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995 that involve
a number of risks and uncertainties. The actual results of the future events
described in such forward-looking statements in this Form 10-QSB could differ
materially from those stated in such forward-looking statements. Among the
factors that could cause actual results to differ materially are: the Company's
ability to successfully develop, distribute and market titles, increasingly
intense competition in the interactive multimedia development and book
publishing industries and other risks detailed from time to time in the
Company's periodic earnings releases and reports filed with the Securities and
Exchange Commission, as well as the risks and uncertainties discussed in this
Form 10-QSB.
Page 13 of 16 pages
<PAGE>
Item 4.
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Company held its Annual Meeting of Shareholders on June 26, 1997.
Of the 7,174,438 shares of Common Stock entitled to vote at the meeting,
5,680,333 shares of Common Stock were present in person or by proxy and entitled
to vote. Such number of shares represented approximately 79% of the Company's
outstanding shares of Common Stock.
At the meeting, the Company's shareholders approved: (i) the election
of Byron Preiss, James R. Dellomo, Matthew Shapire, Jack Romanos, and Roger
Cooper and; (ii) an amendment to the Company's 1993 Stock Option Plan, as
amended. Proposals 1 and 2 were approved by the Company's Shareholders as
follows:
Votes For Votes Withheld Votes Abstaining
---------- -------------- ----------------
Proposal 1:
Byron Preiss 5,668,033 12,300 0
James R. Dellomo 5,668,033 12,300 0
Matthew Shapiro 5,668,033 12,300 0
Jack Romanos 5,668,033 12,300 0
Roger Cooper 5,668,033 12,300 0
Proposal 2:
Votes For Votes Against Abstained Not Voted
--------- ------------- --------- ---------
5,484,134 68,300 5,500 122,349
Page 14 of 16 pages
<PAGE>
Item 6.
EXHIBITS & REPORTS ON FORK 8-K
a. Exhibits
The following Exhibit is hereby filed as part of this Quarterly Report
on form 10QSB:
Exhibit No. Description
----------- -----------
27.1 Financial Data Schedule
b. Reports on Form 8-K
The Company filed a Current Report on Form 8-K (Date of Event - April
18, 1997) under Item 5 relating to converstion of an aggregate principal amount
of $2,000,000 of the Company's 8% Convertible Debentures due January 31, 1999.
In addition the Company filed an amendment to a Current Report on Form
8-K regarding the acquisition of Dolphin Inc. (Date of Event - March 21, 1997)
Page 15 of 16 pages
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
BYRON PREISS MULTIMEDIA COMPANY, INC.
Date: August 13, 1997 By: /s/ Byron Preiss
-------------------------------------
Byron Preiss, Chief Executive Officer,
President and Executive Officer
Date August 13, 1997 By: /s/ James R. Dellomo
---------------------------------------
James R. Dellomo, Chief
Financial Officer
Page 16 of 16 pages
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary information extracted from the Company's
Consolidated Balance Sheet and Consolidated Statement of Operation and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 1,455,937
<SECURITIES> 0
<RECEIVABLES> 1,341,643
<ALLOWANCES> 0
<INVENTORY> 53,158
<CURRENT-ASSETS> 3,004,501
<PP&E> 638,244
<DEPRECIATION> 0
<TOTAL-ASSETS> 8,068,817
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 7,174
<OTHER-SE> 13,026,529
<TOTAL-LIABILITY-AND-EQUITY> 8,068,817
<SALES> 1,715,744
<TOTAL-REVENUES> 1,715,744
<CGS> 2,125,753
<TOTAL-COSTS> 4,806,234
<OTHER-EXPENSES> 1,437,259
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (4,487,227)
<INCOME-TAX> 0
<INCOME-CONTINUING> (4,487,227)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4,487,227)
<EPS-PRIMARY> (0.82)
<EPS-DILUTED> (0.82)
</TABLE>
