Filed Pursuant to 424(b)(3)
Registration No. 333-43258
Prospectus Supplement
(To Prospectus Dated August 10, 2001)
SMARTSERV ONLINE, INC.
1,874,477 Shares of Common Stock
--------------------------------
The purpose of this prospectus supplement is to provide supplemental
information regarding SmartServ Online, Inc. in connection with the offering of
its common stock by the stockholders listed in the prospectus dated August 10,
2001, registration number 333-43258 (the "Prospectus"). This prospectus
supplement is not complete without, and may not delivered or utilized except in
connection with, the Prospectus, including any other amendments or supplements
to the Prospectus. You should read this prospectus supplement and the related
Prospectus carefully before investing in us. Both documents contain information
that you should consider before making your decision.
The following summary financial data is derived from our financial
statements for the nine months ended September 30, 2001 and September 30, 2000.
You should read the following summary financial data in conjunction with the
financial statements and notes to those statements included in the Prospectus
and the Quarterly Report on Form 10-QSB for the quarter ended September 30,
2001.
Nine Months Ended September 30 September 30
(unaudited) (unaudited)
STATEMENT OF OPERATIONS 2001 2000 BALANCE SHEET 2001 2000
---------- ---------- ---------- ------------
Revenues $3,272,827 $2,988,748 Cash and Cash Equivalents $ 9,655,199 $ 21,668,505
Loss from Operations (10,379,599)* (8,006,039)* Working Capital 9,309,460 19,783,186
Net Loss (10,354,078)* (7,438,267)* Total Assets 16,080,375 24,795,612
Basic Loss per Share (1.78) (1.80) Total Liabilities and Deferred Revenues 8,647,283 5,888,223
Diluted Loss per Share (1.78) (1.80) Stockholders' Equity 7,433,092 18,907,389
- ----------------------------------
* Included in such amounts are noncash charges for stock-based compensation costs of $735,015 for the nine months ended September
30, 2001 and $3,974,603 for the nine months ended September 30, 2000.
You should rely only on the information provided in this prospectus
supplement and the related Prospectus. We have not authorized anyone to provide
you with different or additional information.
The "Selling Stockholders" section of the Prospectus, found on pages 33-36
of the Prospectus, is amended by this prospectus supplement. In the "Selling
Stockholders" section of the Prospectus, the Andrew Seybold Group, LLC is listed
as a selling stockholder owning 10,000 shares of our common stock. Since the
date of the Prospectus, the Andrew Seybold Group has distributed 5,000 of those
shares to each of Andrew Seybold and Barney Dewey. Therefore, both Mr. Seybold
and Mr. Dewey replace the Andrew Seybold Group as selling stockholders. The
table of selling stockholders is updated by deleting the Andrew Seybold Group,
LLC and replacing it with the following information:
Shares of Common Stock Shares of Common Stock Beneficial Ownership After Offering
Selling Stockholders Beneficially Owned to be Sold If All Shares Are Sold
-------------------- ------------------ ---------- ----------------------
Andrew Seybold 5,000 5,000 0
Barney Dewey 5,000 5,000 0
Additionally, footnote 5 to the selling stockholder table is deleted.
----------------------------------------
The date of this prospectus supplement is December 28, 2001
S-1