SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 30, 1998
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Cornerstone Internet Solutions Company
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(Exact name of registrant as specified in its charter)
Delaware 1-13360 22-3272662
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
584 Broadway, Suite 509, New York, New York 10012
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(Address of principal executive offices)
Registrant's telephone number, including area code: (212) 343 3920
N/A
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(Former name or former address, if changed since last report.)
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Item 5. Other Events.
As of November 30, 1998, Cornerstone Internet Solutions
Company (the "Company") had over $2,000,000 in net tangible assets and,
accordingly, the Company believes it is in compliance with the net tangible
asset requirements of The Nasdaq Stock Market.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(c) Exhibits.
99.1 Balance sheet of the Company as of November 30, 1998.
Such balance sheet is unaudited and is based on
information from the books and records of the Company
and certain information and footnote disclosures
normally included in financial statements prepared in
accordance with generally accepted accounting
principles have been omitted.
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SIGNATURE
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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.
CORNERSTONE INTERNET SOLUTIONS COMPANY
Dated: December 30, 1998 By:/s/ Kenneth Gruber
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Name: Kenneth Gruber
Title: Chief Financial Officer
and Secretary
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Cornerstone Internet Solutions Company and Subsidiaries
Consolidated Balance Sheet
<TABLE>
<CAPTION>
November 30 May 31
1998 1998
ASSETS (unaudited)
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<S> <C> <C>
Current Assets
Cash and cash equivalents 1,751,800 $ 392,200
Investments 318,500 167,400
Accounts receivable, net 769,800 343,700
Other Receivables 60,800 100,000
112,200 269,300
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Total current assets 3,013,100 1,272,600
Affiliation rights, net 205,400 219,200
Property and equipment, net 378,500 485,900
Other 106,300 69,200
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$ 3,703,300 $ 2,046,900
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 509,500 $ 538,100
Accrued restructuring expenses 31,000 95,400
Accrued payroll and related expenses 345,100 202,800
Other accrued expenses 365,300 410,300
Deferred revenue 3,300 9,300
Current maturities of long-term debt 106,900 99,500
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Total current liabilities 1,361,100 1,355,400
Long-term debt 50,300 106,400
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Total liabilities 1,411,400 1,461,800
Stockholders' Equity
Preferred Stock $.01 par value, 2,000,000 shares authorized;
Class A 0 and 340 shares issued and outstanding
at 11/30/98 and 5/31/98 -- --
Class B 2,000 shares issued and outstanding at
November 30,1998, and May 31, 1998 20 20
Class C 540 and 6,260 shares issued and outstanding at
November 30, 1998, and May 31, 1998 10 100
Class D 7320 and 0 shares issued and outstanding at
November 30, 1998, and May 31, 1998 100
Common Stock $.01 par value, 50,000,000 shares authorized; 11,574,895 and
9,441,117 issued and outstanding at November 30, 1998, and May 31, 1998
respectively 115,700 94,400
Additional paid-in capital 33,777,290 30,222,480
Unrealized Gain on marketable equity securities 318,500 167,400
Accumulated deficit (31,919,700) (29,899,300)
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Total stockholders' equity 2,291,900 585,100
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$ 3,703,300 $ 2,046,900
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</TABLE>
Note: The November 30, 1998 Balance Sheet has been prepared in accordance with
the instructions to Form 10-QSB and in the opinion of management contains all
adjustments. (consisting of only normal recurring entries), necessary to present
fairly the financial position of Cornerstone Internet Solutions Company, (the
"Company") as of November 30, 1998. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with generally
accepted accounting principles have been omitted.
The above balance sheets financial statements should be read in conjustion with
the Company's financial statements and related notes in the May 31, 1998 Annual
Report on Form 10-KSB.
