I hope all of you are joking about buying a stock, but not knowing what it is.
SYNAPTIX SYSTEMS CORPORATION AND SUBSIDIARY
(dba AFFILIATED RESOURCES CORPORATION)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1998
The Company had been engaged in the development of computer software
equipment during the fiscal year ended June 30, 1998. The Company had
anticipated that it would be able to provide related systems integration and
networking services in connection with the license of its corporate software
products that had been purchased from Swallen Investments Corp. in December
1996. In connection with a management change that occurred in March, the Company
sold the Software Assets to Mobile Link Communications Inc. ("Mobile"), because
it did not have the resources and funding to develop the Software Assets and to
deliver the product to market in a timely manner. The Company retained a five
percent interest in Mobile's gross sales of the Software Assets, beginning with
the fiscal quarter ending June 30, 1998. In the event that gross sales do not
exceed $200,000 by March 2000, the Software Assets will be returned to the
Company. As a result of the management change in March, the Company is being
repositioned to focus on the acquisition of those companies whose product or
service is technically innovative and market proven, but whose market
penetration can be significantly expanded through enhanced marketing or
additional capitalization.
As of September 30, 1998, and subsequent thereto, the Company has had a
working capital deficiency. CobolTexas Inc. is currently negotiating with
domestic and international organizations and governments to enter into contracts
for services to be rendered in connection with its email response system that
uses on-line technology and enables businesses, government and organizations to
solve the year 2000 problems for COBOL and PL1 software over the Internet.
Management is confident that current discussions with investors will yield
additional capital to complete the acquisition of ChemWay Systems, Inc. and
provide sufficient working capital for operations and future acquisitions.
Management believes that ChemWay is uniquely suited to management's business
strategy to focus on the acquisition of those companies whose product or service is technically innovative and market proven, but whose market penetration can be significantly expanded through enhanced marketing or additional capitalization, and believes that acquisitions will generate sufficient revenues and provide an asset base for continued growth.
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