<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-C
REPORT BY ISSUER OF SECURITIES QUOTED ON NASDAQ
INTERDEALER QUOTATION SYSTEM
FILED PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 AND RULE 13a-176
OR 15d-17 THEREUNDER
GSE Systems, Inc.
-------------------------------------------------
(Exact name of issuer as specified in charter)
8930 Stanford Blvd., Columbia MD 21045
-------------------------------------------------
(Address of principal executive offices)
(410) 312-3700
-------------------------------------------------
(Issuer's telephone number, including area code)
I. CHANGE IN NUMBER OF SHARES OUTSTANDING
Indicate any change (increase or decrease) of 5% or more in the number
of shares outstanding.
1. Title of security: COMMON STOCK
----------------------------------------------------------
2. Number of shares outstanding before the change: 4,225,000
-----------------------------
3. Number of shares outstanding after the change: 5,065,700
------------------------------
4. Effective date of change: May 22, 1996
---------------------------------------------------
5. Method of change.
Specify method (such as merger, acquisition, exchange, distribution,
stock split, reverse split, acquisition of stock for treasury, etc.):
MERGER
------------------------------------------------------------------
Give brief description of transaction: The Company acquired all of
---------------------------------
the outstanding shares of capital stock of Erudite Software &
------------------------------------------------------------------
Consulting, Inc. in exchange for 840,700 shares of the
------------------------------------------------------------------
Company's Common Stock.
------------------------------------------------------------------
Date June 4, 1996 /s/ Dev Ganesan
---------------------- ------------------------------------
Vice President, Finance & Accounting
(Officer's signature & title)
