Planet City status as of 7/28/00:
SEC Filing status: Because we are currently a non-reporting public company, our stock is trading on the Pink Sheets, and will remain trading there until we become a Fully Reporting company. That will happen after we receive a "no comment" letter from the SEC following the filing of our SEC Form 10-SB.
We initially prepared the documentation to file the Form 10-SB in December of '99 with data as of September 30, 1999. That would have been well within the requirements of an SEC imposed deadline. However, we did not meet that deadline due to an incomplete corporate audit. The audit could not be completed because financial information from a former subsidiary was not available. We have gone through several frustrating months trying various tactics to either obtain the required data, or to obtain a waiver from the SEC allowing us to omit the data.
A couple of months ago, we obtained authorization from the President of the former subsidiary for the auditors to access the subsidiary's bank records. Since then, we have assisted the auditors in obtaining bank statements and copies of checks to support those statements. We also assisted them in obtaining other supporting data from various other sources, including vendors and suppliers of our former subsidiary. This has been a very time consuming, expensive, and frustrating process.
The auditors produced a first draft of our fiscal '99 audited financial statements and delivered it to us this week. It contains the former subsidiary's financial information consolidated with the rest of our corporate data. The audit firm's senior partner suggested that the subsidiary's data be isolated into a "discontinued operations" category to more fairly represent our corporate results without the influence of the former subsidiary. We have accepted that suggestion, so the audit is being reworked to accommodate that decision. They estimate the final audit should be completed by the end of next week or the beginning of the following week. After the final audit is approved, it will be sent to our lawyers. They will combine it with the rest of the Form 10-SB data and file it all electronically.
If all goes well, our SEC filing will occur around mid-August. The SEC will then review the filing and respond with a "no-comment" letter, or will send us questions that need to be answered. After receipt of the SEC's "no-comment" letter, it should take just a few days to begin trading on the OTC Bulletin Board again.
After we resume trading on the Bulletin Board, our stock price is expected to begin to recover from its current slump. At that time, we will continue our quest to acquire complementary companies and technology that fit within our business model. There are already preliminary discussions in progress with a company that was attractive to us a few months ago when our stock price was higher.
Business status: We recently (Monday, July 17, 2000) announced a strategic alliance with WebAtHand, a wholly owned subsidiary of At Hand, Inc. Our Sedona, AZ subsidiary, Planet City Software, will assist WebAtHand's clients by developing customized wireless mobile applications for their specific requirements.
We have already produced two proposals for wireless project opportunities presented to us by WebAtHand. One project in the construction trade was lost to a startup competitor that underbid us significantly. The other proposal is for a comprehensive multi-phase project in the medical services industry. We have received verbal approval for the first phase and will begin development on it next week.
In addition to the projects mentioned above, we have been invited to bid in August on three other projects from one of WebAtHand's clients. We will also assist WebAtHand's internal technical staff in developing their own vertical market solutions for the wireless handheld environment. We will be working out details of a revenue sharing agreement for the completed solutions.
The strategic alliance with WebAtHand was announced in a Press Release which generated business leads from potential Planet City customers as well as from other companies interested in pursuing a cooperative business relationship with Planet City. We are following up on each of those leads. WebAtHand management also reported that they received a healthy response to the announcement. Any consulting business awarded to WebAtHand will provide project opportunities for Planet City's Software Services and development staff. Likewise, prospects for mobile projects we bid on will be referred to WebAtHand for help with strategic planning, if needed. This alliance will serve both companies well.
In combination with our business partners, we intend to offer attractively priced comprehensive solutions to our mobile prospects that include strategic planning, application development, and subscriber based wireless access to those applications.
We are still waiting to announce a partnership with a public company that provides those wireless access services. The announcement will be released as soon as they get beyond their current business startup challenges. This particular partnership has been in a holding pattern since April.
We recently signed a Memorandum Of Understanding with another public company for a business collaboration that will be announced if and when our exploratory discussions evolve into a permanent partnership. We hope to bring the preliminary discussions to a conclusion by the end of August. If an agreement is reached, Planet City Software will assist the company with the development of a major wireless application in the e-Business arena.
Initial conversations have been held in attempts to ally ourselves with a couple of larger software firms that have technical expertise needs we can fulfill. It is expected the continuation of these discussions will extend out over several weeks before any decision is made on mutually beneficial business arrangements.
The Java/XML application framework we have been developing is now functional. It is a Component Based Development tool which speeds implementation of web applications, and provides the ability to integrate with existing back office systems and Legacy applications through XML. We will use the framework to develop the server side of the mobile applications we build for clients. We will also offer to license it to third party web development firms for use in their own projects. The framework will be the core technology of vertical web applications we develop for ourselves, which will then be offered to clients at a reduced rate through our Application Service Provider (ASP) program.
We have not yet been able to divest ourselves of the Internet Gaming division. The Planet City casino (www.planetcitycasino.com) is for sale to any qualified buyer.
We are entering the next phase of our corporate life with prospects of better results ahead. We have zero debt, exciting new wireless technology presenting opportunities to explore, and a healthy network of business partners to help us succeed.
Thanks to our shareholders for sticking with us through the past several months as we dealt with the SEC filing issues. That challenge should be behind us soon. Your support of our efforts has been truly appreciated, and we hope to reward your loyalty in the future.
A disclaimer statement follows my sign off.
Regards,
Terry E. Dennis, President & CEO
Planet City Corp (OTC: PINC)
planetcity.com
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. |
