From the 10SB12G
Filing Date:
Sep 1 1999 - JAWZ and Y2k
See if you can guess why Im posting this part of the message...
HINT: It reiterates my belief in the success of FLNK and how it affects our company - see RB Post
ragingbull.com
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Excerpt From :
JAWS TECHNOLOGIES INC /NY
Form Type:
10SB12G
Filing Date:
Sep 1 1999
(snip)
YEAR 2000 COMPUTER ISSUES
JAWS, as well as its customers and suppliers and the financial
institu-tions and governmental entities with which it deals, utilize information
systems that will be affected by the date change to the year 2000. Many of
these systems, if not modified or replaced, will be unable to properly recognize
and process date-sensitive information before, on and after January 1, 2000.
STATE OF READINESS
In July, 1998, JAWS organized a year 2000 project team to assess the impact
of the year 2000 issue on its operations, develop plans to address the issue and
implement compliance. The project team developed a company-wide, year 2000
remediation plan which consists of a ten-step process to examine JAWS' own
system and those which JAWS estimated may adversely affect JAWS' systems:
in-house computer equipment;
outside supported network equipment;
bandwidth providers;
in-house software;
outside supported network software;
contractors;
in-house auxiliary equipment;
physical plant;
suppliers; and
liability.
For each of the above-listed systems, JAWS' approach toward becoming year
2000 compliant has been as follows:
(1) In-house computer equipment:
Since inception, JAWS has insisted that all new equipment purchased be certified
to be year 2000 compliant. JAWS has not dealt with legacy equipment for
internal use and will only purchase computer equipment produced by year 2000
compliant manufacturers.
(2) Outside supported network equipment:
JAWS has limited its outside resource affiliations to one company.
FutureLink Distribution Corporation maintains JAWS' network system. JAWS has
requested a full report from this company relative to their compliance.
(3) Bandwidth providers:
JAWS has limited its bandwidth provider to FutureLink Distribution
Corporation.
(4) In-house software:
JAWS' own products have been carefully scrutinized for compliance. JAWS
believes that all in-house software products developed by JAWS meet are year
2000 compliant.
(5) Outside support network software:
JAWS relies on FutureLink Distribution Corporation for all outside software
needs with the strict mandate to only supply year 2000 compliant support
software. A full report has been requested from FutureLink.
(6) Contractors:
No contractors have been engaged to perform programming work. Due to the
nature of JAWS' product line, strict controls are followed to ensure no outside
contractors have access to JAWS' systems, designs and programming.
(7) In-house auxiliary equipment:
All auxiliary equipment used and owned by JAWS is less than 12 months old,
including phone systems, printers and photocopiers. JAWS has requested year
2000 compliance certificates from each manufacturer.
(8) Physical plant:
JAWS currently leases office space in the downtown core of Calgary,
Alberta. A notice requesting year 2000 compliance has been delivered to the
landlord.
(9) Suppliers:
All critical stock items will be in stock prior to the beginning for the
year 2000 thus eliminating inventory pressure for the first quarter of 2000.
(10) Liability:
JAWS has received definitive answers from all insurance carriers with the common
consensus that no liability is covered under JAWS' current policies. JAWS
believes that it has reduced its risk to levels that they do not warrant
additional or special insurance at this time.
ESTIMATED COST OF REMEDIATION
JAWS currently estimates total year 2000 expenditures at approximately
$25,000 of which approximately $5,000 has been expended as of September 30,
1998, to make the required year 2000 modifications and replacements to its own
systems. All modification and maintenance costs, including costs to replace
embedded technology that does not significantly extend the life or improve the
performance of the related asset are expensed as incurred. Costs to purchase
new hardware and software and to replace embedded technology that does
significantly extend the life or improve the performance of the related asset
are capitalized and depreciated over the assets' useful lives. All of these
costs are being funded through internal cash flow. The estimated total
remediation cost does not include any expenditures that may be incurred in
connection with the implementation of the contingency plans, discussed below.
MOST REASONABLY LIKELY WORST-CASE SCENARIO
JAWS currently believes that it will be able to modify or replace its own
affected systems in a timely fashion and minimize detrimental effects on its
operations; however, JAWS' ability is subject to timely assistance by the
vendors of the process-control systems. JAWS has received written assurances
from some, but not all, third parties with respect to their own systems year
2000 issues and is not in a position to reliably predict whether third parties
will experience remediation problems. If JAWS or major third parties fail to
successfully address the year 2000 issue, there could be a material adverse
impact on the business and results of operations of JAWS.
JAWS has not determined the most reasonable worst-case scenario that could
result from any failure by JAWS or third parties to resolve the year 2000 issue.
JAWS will consider this matter in connection with its development of contingency
plans, discussed below. However, the scenario could include a temporary
curtailment or cessation of operations at JAWS' facilities, and a resulting loss
of production, safety and environmental exposure and a temporary inability on
the part of JAWS to process orders and deliver finished software products to
customers on a timely basis are also concerns relating to a worst case scenario.
CONTINGENCY PLANS
JAWS' year 2000 efforts have been devoted primarily to the readiness
program described above. JAWS has not yet developed contingency plans to
address and mitigate the potential risks associated with the most reasonable
worst-case scenario. JAWS' year 2000 program is an ongoing process of
evaluation and planning. Estimates of remediation costs, completion dates as
well as projections of the possible effects of any non-compliance, are subject
to change.
JAWS has not conducted a systematic evaluation of the year 2000 compliance
of its vendors and customers. As a result, it is possible that JAWS' future
performance may be adversely impacted by payment and financial difficulties
experienced by customers, and/or by shipping fulfillment and accounting
difficulties experienced by vendors. JAWS believes that it has sufficient
resources, including cash reserves and inventory supplies, to maintain
operations during delays in payments or supplies of inventories. JAWS is aware
that extended difficulties by larger vendors may have a significant impact;
however, it is unable at this time to anticipate the extent of any impact were
it to occur.
(snip) eom
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