NPSC closed Friday at .47 up .34 on 218,000...this from 10q filed Feb 12...company has 2.7m shares outstanding..do your own due diligence:
Acquisition of Advertising Agencies
The Company's primary objective is to utilize (1) its experience and
expertise on advising clients on internet strategy and constructing
internet applications, including websites, and (2) its status as a
public company to acquire small to medium sized advertising agencies.
Management believes that such agencies have a need to offer internet
strategy and services to their clients as a part of an integrated
communications program.
By combining a number of agencies in the New York area, the Company
believes economies can be made by centralizing certain administration
and support functions. Together with the ability to offer additional
services (such as internet services) to agency clients management
believes, that the profitability of these agencies can be improved.
In addition, the Company hopes that agencies which are part of a larger
agency group offering a wider range of expertise and a greater depth of
talent will be able to secure bigger accounts, which are expected to be
more profitable.
Management believes that the results achieved in combination with SKC
Advertising, Inc. ("SKC") in gaining new clients, selling Internet-
related services to existing clients and in saving expenses demonstrate
that these benefits can be achieved in practice as well as in theory.
Although the company has acquired one such agency and is conducting
preliminary discussions with several others, there can be no assurance
that any suitable agencies can be found willing to be acquired on terms
acceptable to the Company. Further there can be no assurance that the
additional clients and revenue gained and expenses saved with SKC as a
result of the acquisition can be achieved with other agencies which the
Company may acquire.
Internet Business - NPIL
The Company is engaged in the Internet business through its wholly owned
subsidiary New Paradigm Inter-Link, Inc.("NPIL"). NPIL began operations
in December 1995, and provides Internet services to corporations and other
organizations. Clients include Novartis, the National Multiple Sclerosis
Society and the Association of the Bar of the City of New York. NPIL
provides organizations with the ability to utilize the Company's expertise
to devise strategies for the Internet, and, where appropriate, to create
Web sites. This expertise includes: assembling an appropriate team of
independent design consultants and, if necessary, programmers; designing
the site from both technical and aesthetic perspectives; implementing the
design; and providing Web server hosting services independently from a
customer's own internal network to ensure security.
In the past nine months the initial revenues contracted for a typical site
have risen from $20,000 - $30,000 on completion, to $60,000- $80,000 with
continuing revenues for maintenance and changes throughout the year
increasing from approximately $1,000 - $3,000 to $8,000 - 12,000.
Internet Business-Future Paradigm
The Company intends to market its Internet capabilities through the
strategic relationships which advertising agencies have with their clients
both by acquiring and by forming business alliances with selected
advertising agencies. To this end in fiscal 1998 the company established
Future Paradigm, Inc. and entered into agreements with three Advertising
Agencies to sell each of them 15% of Future Paradigm. Each of the agencies
then agreed to bring the Internet business of their clients to Future
Paradigm where possible. From its inception until September 30, 1998, all
of the business brought to to Future Paradigm was origimated by one of the
three agencies, Beiderman, Kelly, Krimstein & Partners, Inc. (BKK)
(formerly Biederman Kelly & Schaffer, Inc.). Consequently, the other two
agencies agreed to withdraw form Future Paradigm. Through Future Paradigm,
the Company has undertaken or is undertaking Internet related projects
for the following clients: Cadillac Corp. (A General Motors Corp.
subsidiary), Lands' End, New York University School of Continuing
Education and Professional Studies (www.scps.nyu.edu), and ParentTime
(a Time, Inc. subsidiary).
Examples of Web sites created by New Paradigm include:
. New York University - Site for the School of Continuing Education
and Professional Studies: www.scps.nyu.edu
. Novartis - site for its "Program" product: www.programpet.com
. Association of the Bar of the City of New York: www.abcny.org
. National Multiple Sclerosis Society - general website: www.nmss.org
. Smolin Lupin, accountants: corporate Website: www.cpasmolinlupin.com
. Novartis - site for its "Sentinel" product: www.petprotect.com
. Josephthal & Co - corporate Website: www.josephthal.com
Advertising - SKC Advertising, Inc.
On April 1, 1998, the Company acquired certain assets and assumed certain
liabilities of Kapelus & Cipriano, Inc., ("K&C") a Westchester-based
full-service advertising agency, through its wholly owned subsidiary New
Paradigm Acquisition I Co.,Inc. ("NPAC"). NPAC was then renamed SKC
Advertising, Inc. Prominent clients of SKC Advertising, Inc. include Kemwal
Holiday Autos, The Castle at Tarrytown, The Carlton Hotel, New York, and
Tarrytowns Banks, SSB. Since the end of the December Quarter, SKC was
also awarded the account of the Stewart Airport, Newburgh, New York.
The Company achieved its first sale of Internet-related services to
SKC clients. The company intends to pursue other clients for additional
business. Management believes that the Internet capability of
NPIL has significantly enhanced the ability of SKC to win new business.
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