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
Date of Report (Date of earliest event reported): February 29, 2000
PaperClip Software, Inc.
(Exact name of registrant as specified in its charter)
Delaware 0-26598 22-3137907
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) Number)
611 Route 46, Hasbrouck Heights, New Jersey 07604
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (201) 329-6300
NOT APPLICABLE
(Former name or former address, if changed since last report.)
<PAGE>
Item 4. Changes in Registrant's Certifying Accountant
(a) Previous independent accountant
The Company has dismissed Arthur Andersen LLP ("Andersen")as
the Company's independent public accountants. The decision
to dismiss was approved by the Board of Directors of the
Company.
Andersen's report on the financial statements of the Company
for each of the previously audited financial statements for
December 31, 1996 and 1995 did not contain any adverse
opinion or disclaimer of opinion, and was not qualified or
modified as to uncertainty, audit scope or accounting
principle.
In connection with the audits by Andersen of the Company's
financial statements for 1996 and 1995, there were no
disagreements with Andersen on any matter of accounting
principles or practices, financial statement disclosure, or
auditing scope or procedure, which disagreements, if not
resolved to the satisfaction of Andersen, would have caused
Andersen to make reference to the subject matter of the
disagreements in connection with its audit report with
respect to financial statements of the Company for 1996 and
1995. The term "disagreement" is utilized in accordance
with Instruction 4 to Item 304 of Regulation S-K.
During the two most recent fiscal years, and the subsequent
interim period through February 29, 2000 there were no
"reportable events", as that term is defined in Item 304
(a)(1)(v) of Regulation S-K.
The Company has provided Andersen with a copy of this
Report, and has requested that Andersen furnish the Company
with a letter addressed to the Securities and Exchange
Commission stating whether it agrees with the statements
made by the Company. Such letter is attached hereto as
Exhibit 16.
(b) New independent accountant
The Company has selected Sobel & Co.,LLC as the Company's
independent public accountants. The decision to change
auditors was approved by the Board of Director's of the
Company.
During the three most recent fiscal years and the subsequent
interim period through February 29, 2000, neither the
Company nor anyone on behalf of the Company consulted
regarding either the application of accounting principles to
a specified transaction, either completed or proposed, or
the type of audit opinion that might be rendered on the
financial statements of the Company or any matter that was
either the subject of a disagreement, within the meaning of
Item 304(a)(1)(iv) of Regulation S-K, or any reportable
event, as that term is defined in Item 304 (a)(1)(v) of
Regulation S-K.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, as amended, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.
PAPERCLIP SOFTWARE, INC.
By:/S/William Weiss
Name: William Weiss
Title: Chief Executive Officer
Date: March 1, 2000
Exhibit 16
February 29, 2000
Securities and Exchange Commission
450 Fifth Street, N. W.
Washington, D.C. 20549
Commissioners:
We have read the statements made by Paperclip Software, Inc., which we
understand will be filed with the Commission, pursuant to Item 4 of
Form 8-K, as part of the Company's Form 8-K report dated February 29,
2000. We agree with the statements concerning our Firm in such Form
8-K.
Very truly yours
/s/ Arthur Andersen LLP
