Status as of 03/03/2000:
I have been delaying my status report in hopes of being able to include details of a news item. That event hasn't completed yet, so I'll go ahead and provide our current status now, and save the news for a future status report.
Our stock symbol, "PINC", had an "E" appended to it on Friday, 2/11/00, in accordance with the OTCBB Eligibility Implementation Schedule. This was due to our failure to satisfy eligibility requirements with respect to filing SEC reports. The problem was, and still is, getting the auditors to sign off on our financials.
We had originally planned on filing our Form 10-SB with the SEC in late November. At that time, we would have filed with the most recent quarter's financials, which would have been data as of 09/30/99. However, because of the delays caused by insufficient historical information from an inactive subsidiary, the auditors have been unable to complete the audit. This situation has been an ongoing frustration. We would have had to file the Form 10-SB by February 21st for the audit of 09/30/99 to be accepted by the SEC. Since the auditors didn't think they would be able to gather the required information and get it to the lawyers in time to file by that date, we made the decision in mid-February to have them focus their efforts on the full Fiscal Year 1999 annual audit, which was already in progress. The auditors already have all the information they need from our Planet City Software, Inc. subsidiary in Sedona. The situation with the missing data from the inactive subsidiary continues to be a hindrance to the entire process. We are working on that problem.
A minor delay was caused when the audit firm's employee who was handling our account left their company. A new person was immediately assigned to our account in mid-February. Thus far, she has been much more responsive to our needs.
Because of the lack of audited financials, our lawyers will not be able to file the Form 10-SB with the SEC in time for them to review and accept it prior to our eligibility determination date of 3/8/00. Thus, our stock will soon be on the "Pink Sheets". This is an unfortunate situation for Planet City shareholders, but it is not disastrous. It is only a temporary condition, and we will do all we can to get back on the OTCBB as soon as possible. We spent many thousands of dollars with auditors and lawyers, and a lot of effort trying to get this filed on time. We didn't get it done. The filing is expected to occur by the end of March, assuming we can take care of an outstanding issue. It will then be up to the SEC to review the filing and ask for more information, or provide a "no comment" letter. After we receive that letter, we can apply for relisting on the OTCBB.
Being "on the Pinks" does not mean that a stock cannot be traded. A discussion on "Pink Sheets" and the new NQB trading system can be found at: otcbbinfo.com . Some of the free online quote systems won't be able to provide stock price for issues on the Pink Sheets. But, there are some that do, like the CNBC site: host.cnbc.com. The "E" will be removed from our symbol when we are moved to the Pink Sheets.
On the business front ...
Our Planet City Software, Inc. (PCSI) Web Services Division continues to be fully engaged and profitable, with future projects pending.
We are planning to attend the Computer Associates (CA) Regional User's Group meeting in March to help CA promote their Security Products for e-Commerce. We intend to cross-promote our Web Services capabilities and other software solutions to the client contacts made at that meeting.
I continue to examine two separate joint venture possibilities for the proper involvement, if any, by PCSI. And, I have been reviewing potential acquisition candidates that become available. Some have been interesting, and a couple would have been good matches if we had been larger and financially able to take on the additional risks inherent with acquisitions. But, none have fit our current situation as a young startup company in our early growth period. Thus, we will continue to review candidates as they are presented to us.
Planet City is planning to enter the Wireless Personal Digital Assistant (WPDA) marketplace. The business market for wireless handhelds is huge. The hardware is being improved rapidly, thus creating expanded capabilities for future software solutions. To help secure our position in this exciting growth industry, we are working on forming alliances with other vendors of software and services interested in that same marketplace. The 3Com (NASDAQ: COMS) spin-off IPO of PALM is expected to focus a lot of attention in this area.
We are also planning on entering the Application Service Provider (ASP) market. The ASP concept is quickly changing the way Internet software solutions are marketed. An ASP is basically an ISP (Internet Service Provider), with its web site management and hosting capabilities, combined with the software development capabilities of an application solution provider. The solution provider (Planet City) develops a client specific application, but develops it in a manner that allows it to be easily modified and extended. The client will get a customized application at a reasonable cost in exchange for a long term revenue sharing agreement. The completed application will then "belong" to Planet City and be marketed to other clients who need a similar application. Planet City will then have additional application customization prospects, as well as the opportunity to cross-sell our other products and services to a larger client base. The revenue opportunities are tremendous. We are looking to partner with one of many existing ISPs and one or more client firms with specific application needs.
An application currently being considered for our entry to the ASP market would also require WPDA functionality. This would be an excellent opportunity for us to enter both the handheld and ASP markets at the same time.
We have several current business opportunities in various stages of consideration. I hope to have some positive news to report on them soon.
A disclaimer statement follows my sign off.
Regards,
Terry E. Dennis, President & CEO
Planet City Corp (OTC BB: PINC)
Certain of the statements contained herein which are not historical facts are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. Any such forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. In addition to the general difficulties inherent in forecasting future operating results, particularly in a rapidly changing global economy, other factors can affect performance. Those factors include, but are not limited to, competitive forces, fluctuations in operating results, reliance on industry standards, dependence on new products, risks associated with acquisitions, intellectual property protection and disputes, economic fluctuations, staff turnover, and naturally occurring phenomena. |
