UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2001
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM ___________ TO __________
COMMISSION FILE NUMBER: 0-27697
SOLUTIONNET INTERNATIONAL, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
MINNESOTA 95-4749095
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NUMBER)
1594 CENTRE POINTE DRIVE
MILPITAS, CA 95035
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES INCLUDING ZIP CODE)
TELEPHONE: (408) 934-9748
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
------------
INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS REQUIRED
TO BE FILED BY SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 DURING
THE PRECEDING 12 MONTHS (OR SUCH SHORTER PERIOD THAT THE REGISTRANT WAS REQUIRED
TO FILE SUCH REPORTS), AND (2) HAS BEEN SUBJECT TO SUCH FILING REQUIREMENTS FOR
THE PAST 90 DAYS. YES [X] NO [ ]
AS OF NOVEMBER 10, 2001, 12,618,009 SHARES OF COMMON STOCK, $0.001 PAR VALUE
WERE OUTSTANDING.
[GRAPHIC OMITTED]
TABLE OF CONTENTS
TABLE OF CONTENTS
PART I Financial Information F-1
Item 1. Financial Statements F-2
Item 2. Management's Discussion and Analysis or Plan of Operation 1
PART II Other Information 5
Item 1. Legal Proceedings 5
Item 2. Changes in Securities 5
Item 3. Defaults upon Senior Securities 6
Item 4. Submission of Matters to a vote of Security Holders 6
Item 5. Other Information 6
Item 6. Exhibits and Reports on Form 8-K 6
Signatures 7
i
INDEX TO FINANCIAL STATEMENTS
SOLUTIONNET INTERNATIONAL, INC.
AND SUBSIDIARIES
PAGE
Condensed Consolidated Balance Sheets as of September 30, 2001 (unaudited) and
December 31, 2000 F-3
Condensed Consolidated Statements of Operations for the three month and nine month
periods ended September 30, 2001 and 2000 (unaudited) F-5
Condensed Consolidated Statements of Stockholders' Equity and Comprehensive Loss for the
nine months ended September 30, 2001 (unaudited) F-6
Condensed Consolidated Statements of Cash Flows for the nine month period ended
September 30, 2001 and 2000 (unaudited) F-7
Notes to Condensed Consolidated Financial Statements F-8
F-1
SOLUTIONNET INTERNATIONAL, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(UNAUDITED)
SEPTEMBER 30 DECEMBER 31,
2001 2000
------------ -----------
ASSETS
Current assets:
Cash and cash equivalents $ 74,523 $ 521,808
Accounts receivable - trade, less allowance for doubtful accounts of
$386,197 and $212,780 at September 30, 2001 and December 31, 2000,
respectively 1,176,463 1,418,986
Due from related parties 504,444 585,318
Deposits and other assets 248,799 128,956
------------ -----------
Total current assets 2,004,229 2,655,068
Property, plant and equipment:
294,878 254,187
Less accumulated depreciation and amortization 222,376 157,417
------------ -----------
Net property, plant, and equipment 72,502 96,770
------------ -----------
Software development costs, less accumulated amortization 676,962 773,285
------------ -----------
$ 2,753,693 3,525,123
============ ===========
See accompanying notes to condensed consolidated financial statements.
F-2
SOLUTIONNET INTERNATIONAL INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheet (continued)
(UNAUDITED)
SEPTEMBER 30 DECEMBER 31,
2001 2000
------------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Bank overdraft $ -- 63,819
Current installments of obligations under capital leases 8,827 34,654
Trade accounts payable 425,397 265,165
Accrued expenses 319,026 136,114
Income taxes payable -- 1,843
Deferred revenue 69,326 114,928
Due to related parties 204,600 492,540
----------- -----------
Total current liabilities 1,027,176 1,109,063
Obligations under capital leases, excluding current
installments 22,652 23,079
Deferred income taxes 566 577
----------- -----------
Total liabilities 1,050,394 1,132,719
----------- -----------
Stockholders' equity:
Preferred stock, $0.001 par value, 5,000,000 shares
authorized; none issued and outstanding -- --
Common stock, $0.001 par value, 20,000,000 shares
authorized; 12,618,009 shares issued and outstanding 12,618 12,618
Paid-in capital 2,608,182 2,608,182
Accumulated deficit (978,472) (230,211)
Accumulated other comprehensive income -- foreign currency
translation adjustment 60,971 1,815
----------- -----------
Total stockholders' equity 1,703,299 2,392,404
----------- -----------
$ 2,753,693 3,525,123
=========== ===========
F-3
SOLUTIONNET INTERNATIONAL INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(UNAUDITED) (UNAUDITED)
FOR THE THREE MONTHS FOR THE NINE MONTHS
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
--------------------------- ---------------------------
2001 2000 2001 2000
---------- ---------- ---------- ----------
Revenues:
Software Sales 307,723 620,638 551,196 902,874
Consulting Services 707,111 496,716 1,968,947 1,582,561
---------- ---------- ---------- ----------
Total Revenues 1,014,834 1,117,354 2,520,143 2,485,435
Costs of revenues:
Costs of software sales 115,975 89,939 231,112 188,182
Costs of consulting services 564,368 347,337 1,449,400 1,088,122
Amortization of software development costs 123,542 92,556 350,529 240,774
---------- ---------- ---------- ----------
Total costs of revenues 803,885 529,832 2,031,041 1,517,078
---------- ---------- ---------- ----------
Gross profit 210,949 587,522 489,102 968,357
Operating expenses
Sales and marketing 137,029 174,392 469,925 499,557
General and administrative 151,951 142,238 769,254 337,425
---------- ---------- ---------- ----------
Total operating expenses 288,980 316,630 1,239,179 836,982
---------- ---------- ---------- ----------
Operating income (loss) (78,031) 270,892 (750,077) 131,375
Other income (expense)
Interest income 117 13,537 1,816 13,623
Other income (expense) 0 55 0 (4,673)
---------- ---------- ---------- ----------
Income (loss) before income taxes (77,914) 284,484 (748,261) 140,325
Income tax expense 0 30,313 0 30,313
---------- ---------- ---------- ----------
Net income (loss) (77,914) 254,171 (748,261) 110,012
========== ========== ========== ==========
Basic income (loss) per share (0.01) 0.02 (0.06) 0.01
========== ========== ========== ==========
See accompanying notes to condensed consolidated financial statements.
F-4
SOLUTIONNET INTERNATIONAL, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Stockholders' Equity and Comprehensive Loss
PREFERRED COMMON PAID-IN STOCK SUBSCRIPTION
STOCK STOCK CAPITAL RECEIVABLE
---------- ---------- ---------- ------------------
Balances at December 31, 2000 $ -- 12,618 2,608,182 --
Net loss (unaudited) -- -- -- --
Foreign currency translation gain (unaudited) -- -- -- --
Comprehensive loss (unaudited) -- -- -- --
---------- ---------- ---------- ----------
Balances at September 30, 2001 (unaudited) $ -- 12,618 2,608,182 --
========== ========== ========== ==========
ACCUMULATED
RETAINED OTHER
EARNINGS COMPREHENSIVE TOTAL
(ACCUMULATED INCOME STOCKHOLDERS'
DEFICIT) (LOSS) EQUITY
------------ ------------- -------------
Balances at December 31, 2000 (230,211) 1,815 2,392,404
Net loss (unaudited) (748,261) -- (748,261)
Foreign currency translation gain (unaudited) -- 59,156 59,156
----------
Comprehensive loss (unaudited) -- -- (689,105)
---------- ---------- ----------
Balances at September 30, 2001 (unaudited) (978,472) 60,971 1,703,299
========== ========== ==========
See accompanying notes to condensed consolidated financial statements.
F-5
SOLUTIONNET INTERNATIONAL, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
NINE MONTHS ENDED
SEPTEMBER 30,
---------------------------
2001 2000
---------- ----------
Net income (loss) (748,261) 110,012
Adjustments to reconcile net income (loss) to net cash
used in operating activities:
Depreciation and amortization 418,403 282,036
Change in operating assets:
Accounts receivable - trade 223,038 (667,350)
Deposits and other current assets (122,119) (127,608)
Software development costs (268,519) (435,600)
Trade accounts payable 164,757 (133,237)
Accrued expenses 184,726 69,660
Deferred revenue (43,475) 265,879
Income taxes payable (1,843) 23,262
---------- ----------
Net cash used in operating activities (193,293) (612,946)
---------- ----------
Cash flows from investing activities:
Purchase of equipment (45,396) (51,184)
---------- ----------
Net cash used in investing activities (45,396) (51,184)
Cash flows from financing activities:
Cash overdraft (63,819) (29,296)
Principal payments of capital lease obligations (25,186) 16,177
Borrowing from (payments to) related parties (112,214) 1,469,428
---------- ----------
Net cash provided by (used in) financing activities (201,219) 1,456,309
---------- ----------
Net effect of changes in foreign currency on cash flows (7,377) (531)
---------- ----------
Net increase (decrease) in cash and cash equivalents (447,285) 791,648
Cash and cash equivalents at beginning of period 521,808 13,325
---------- ----------
Cash and cash equivalents at end of period 74,523 804,973
========== ==========
F-6
Note 1 -- Interim Financial Information
The accompanying condensed consolidated financial statements are unaudited, but
include all adjustments (consisting only of normal recurring adjustments) which
are, in the opinion of management, necessary for a fair presentation of the
financial position at such dates and of the operations and cash flows for the
periods then ended. The financial information is presented in a condensed
format, and it does not include all of the footnote disclosures normally
included in financial statements prepared in accordance with accounting
principles generally accepted in the United States of America. Operating
results for the period ended September 30, 2001 are not necessarily indicative
of results that may be expected for the entire year.
The preparation of financial statements requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities and reported amounts of revenue
and expenses during the reporting period. Actual results could differ
materially from such assumptions and estimates.
The accompanying financial statements and related footnotes should be read in
conjunction with the Company's audited financial statements, included in its
December 31, 2000 Form 10SB/A2 filed with the Securities and Exchange
Commission (the "Commission") on September 20, 2001.
F-7
Note 2 -- Revenue Recognition
The Company recognizes revenue in accordance with Statement of Position 97-2
(SOP 97-2), Software Revenue Recognition, SEC Staff Accounting Bulletin 101 (SAB
101), Revenue Recognition and Statement of Position 81-1 (SOP 81-1), Accounting
for Performance of Construction-Type and Certain Production-Type Contracts.
Software Sales
Sales of software directly to end-users include a postcontract customer support
(PCS) component and may require significant custom modifications. In instances
where a significant Company obligation does exist, as may be defined in each
specific agreement, such as technical assistance or customization of the
software, revenue is recognized using the percentage of completion method, as
required under contract accounting. The percentage of completion is calculated
using direct labor hours incurred compared to the total of estimated direct
labor hours. Revenue from software sales without modification is recognized upon
delivery to the customer, providing no significant Company obligations remain
and collection of the resulting receivable is probable.
The Company's products generally include three months of PCS. Fair values have
been apportioned from the entire arrangement fee to account for this element.
The fair values are based on the price the customer has to pay when they require
additional support upon the expiration of the initial three month support
period.
The Company also uses resellers to sell their products. Revenue under reseller
agreements is recognized upon shipment of licenses, providing no significant
Company obligations remain and collectibility is probable. Arrangements with
resellers normally include a PCS element, which consists of telephone support
and onsite support as necessary. As the PCS element is for three months and no
specified upgrades are expressed either implicitly or explicitly, the Company
recognizes revenue related to the PCS component upon delivery of the software.
The Company offers maintenance, on software licenses sold, subsequent to the
expiration of the initial three month PCS period. Such maintenance is provided
under separate agreements. In such cases, maintenance revenue is deferred and
recognized on a pro rata basis over the life of the related maintenance
agreement. The unrecognized portion of maintenance revenue is included in
deferred revenue.
Consulting Services
Revenue from consulting services is recognized using the percentage of
completion method as required under contract accounting. The percentage of
completion is calculated using direct labor hours incurred compared to the total
of estimated direct labor hours.
F-8
ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
OVERVIEW
SolutionNet develops and markets proprietary multi-application IT
solutions. Its proprietary software products include ENet Banking, IDM,
E-Business Kits and EMI for the financial services, telecommunications and
health care markets. Its IT services consist of consulting (generally providing
SolutionNet staff to act as consultants at its customers' facilities) and
developing new software or new functions for existing software applications for
its customers. Revenue from the sale of the software product is recognized upon
delivery to the customer, providing no significant Company obligations remain
and collection of the resulting receivable is probable. In instances where a
significant Company obligation does exist, revenue is recognized using the
percentage of completion method. Revenue from consulting services is recognized
using the percentage of completion method. Revenue under distributor agreements
is recognized upon shipment of the software products providing no significant
Company obligations remain and collectibility is probable. Currently,
SolutionNet markets its products and services in the Asia Pacific region, the
Middle East and India. Future markets for SolutionNet products and services may
include Australia, the United Kingdom and the United States.
RESULTS OF OPERATION - THREE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED WITH THREE
MONTHS ENDED SEPTEMBER 30, 2000
The following tables set forth certain items reflected in our
consolidated statements of operation expressed as a percent of total revenues
for the periods indicated.
THREE MONTHS ENDED SEPTEMBER 30,
2001 2000
Revenues:
Software Sales 30% 56%
Services 70 44
-- --
Total Revenues 100 100
Cost of Revenues:
Cost of Software sales 23 16
Cost of Services 56 31
-- --
Total cost of revenues 79 47
Gross Profit 21 53
Operating expenses:
Sales and marketing 14 16
General and administrative 15 13
-- --
Total operating expenses 29 29
Operating (loss) income (8) 24
Others, net --- ---
(loss) Income before income taxes (8) 24
Income tax provision --- (3)
Net (loss) income (8) 21
1
Revenues: Our total revenues decreased by 9% to $1,014,834 for the
three months ended September 30, 2001 from $1.1 Million for the three months
ended September 30, 2000 and consisted of a decrease in software sales revenue
of $312,915 or 50% and an increase in services revenue of $210,396 or 42%. The
50% decrease in our software sales revenue is primarily a result of an economic
slowdown and delays in customer buying decisions for our ENet Banking product.
The 42% increase in service revenue is a result of growth from both existing and
new customers. For the three months ended September 30, 2001, 93% of the
services revenue was generated from existing customers.
Cost of Revenues: Our cost of software sales has increased $57,021 or
31% on a comparison of the three months ended September 30, 2001 to the three
months ended September 30, 2000. The cost of software sales as a percent of
software sales revenue was 78% for the three months ended September 30, 2001
compared to 29% for the three months ended September 30, 2000. The increase in
cost of software sales was primarily due to the increased amortization of
capitalized product development expenses over the corresponding period in 2000.
Cost of Services for the three months ended September 30, 2001
increased $217,031 or 62% over the three months ended September 30, 2000. Cost
of services as a percent of services revenue was 80% for the three months ended
September 30, 2001 compared to 70% for the three months ended September 30,
2000. The increase in cost of services as a percentage of revenue is primarily
attributed to an increase in personnel engaged in delivering consulting
services.
Operating Expenses: Sales and Marketing expenses consist primarily of
salaries, employee-related benefit costs and commissions of sales and marketing
personnel, travel and entertainment and marketing related expenditures for
exhibitions and trade shows. Sales and marketing expenses for the three months
ended September 30, 2001 were $137,028 as compared to $174,393 for the three
months ended September 30, 2000, which represents a decrease of $37,365 or 21%.
The decrease in sales and marketing expense is primarily a result of reduced
marketing personnel expenses and reduced trade shows and exhibition expenses.
General and administrative expenses consist primarily of salaries and
employee related benefits of management, administration and support staff,
office and rental and professional service fees. General and administrative
expenses were $151,951 for the three months ended September 30, 2001 as compared
to $142,238 for the three months ended September 30, 2000.
2
RESULTS OF OPERATION - NINE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED
WITH NINE MONTHS ENDED SEPTEMBER 30, 2000
The following table sets forth certain items reflected in our
consolidated statements of operation expressed as a percent of total revenues
for the periods indicated.
NINE MONTHS ENDED SEPTEMBER 30,
2001 2000
Revenues:
Software Sales 22% 36%
Services 78 64
-- --
Total Revenues 100 100
Cost of Revenues:
Cost of Software sales 23 18
Cost of Services 58 43
-- --
Total cost of revenues 81 61
Gross Profit 19 39
Operating expenses:
Sales and marketing 19 20
General and administrative 31 14
-- --
Total operating expenses 50 34
Operating (loss) income (31) 5
Others, net --- ---
(loss) Income before income taxes (31) 5
Income tax provision --- (1)
Net (loss) income (31) 4
Revenues: Our total revenues increased by 1% to $2.52 Million for the
nine months ended September 2001 from $2.49 Million for the nine months ended
September 30, 2000 and consisted of a decrease in software sales revenue of
$351,677 or 39% and an increase in services revenue of $386,386 or 24%. The 39%
decrease in our software sales revenue is primarily a result of an economic
slowdown and delays in customer buying decisions for our ENet Banking product.
The 24% increase in services revenue is a result of growth from both existing
and new customers. For the nine months ended September 30, 2001, 65% of the
services revenue was generated from existing customers.
3
Cost of Revenues: Our cost of software sales has increased by $152,688
or 36% on a comparison of the nine months ended September 30, 2001 to the nine
months ended September 30, 2000. The cost of software sales as a percent of
software sales revenue was 106% for the nine months ended September 30, 2001
compared to 48% for the nine months ended September 30, 2000. The increase in
cost of software sales was primarily due to the increased amortization of
capitalized product development expenses over the corresponding period in 2000.
Cost of Services for the nine months ended September 30, 2001 increased
$361,279 or 33% over the nine months ended September 30, 2000. Cost of services
as a percent of services revenue was 74% for the nine months ended September 30,
2001 compared to 69% for the nine months ended September 2000. The increase in
cost of services as a percentage of revenue is primarily attributed to an
increase in personnel engaged in delivering consulting services.
Operating Expenses: Sales and Marketing expenses consist primarily of
salaries, employee-related benefit costs and commissions of sales and marketing
personnel, travel and entertainment and marketing related expenditures for
exhibitions and trade shows. Sales and marketing expenses for the nine months
ended September 30, 20001 were $469,926 as compared to $499,557 for the nine
months ended September 30, 2000, which represents a decrease of $29,631 or 6%.
The small decrease in sales and marketing expense is primarily a result of
lesser expenses spent on promotions, trade shows and exhibition during the
period.
General and administrative expenses consist primarily of salaries and
employee related benefits of management, administration and support staff,
office and rental and professional service fees. General and administrative
expenses were $759,255 for the nine months ended September 30, 2001 as compared
to $337,425 for the nine months ended September 30, 2000, which represents an
increase of $421,830 or 125% year to year. The increase in general and
administrative expense is primarily a result of expansion of the management
team, new operations in the Middle East and increased professional services
fees.
LIQUIDITY AND CAPITAL RESOURCES
We have generally funded our operations through a combination of cash
from operations, borrowings from related parties, and the issuance of shares of
common stock. Net cash provided by (used in) operating activities was $18,499
and ($678,074) for the 9 months ended September 30, 2001 and 2000, respectively.
The increase in cash provided by operations in 2001 was primarily due to
increased collection of accounts receivables.
The principal use of cash for investing activities during the nine
months ended September 30, 2001 and 2000 was for the purchase of computer
equipment.
Net cash provided by (used in) financing activities was ($411,829) and
$1.52 Million for the nine months ended September 30, 2001 and 2000,
respectively. The decrease for the nine months ended September 30, 2001 was due
to no issuance of common stock in the current year and payments related to
related party borrowings.
Most of our revenues are billed in Singapore dollars. We recognize
transaction gains and losses in the period of occurrence. Foreign currency
fluctuations for the nine months ended September 30, 2001 and 2000 did not have
a material impact on income (loss) from operations as
4
currency fluctuations on revenue denominated in a foreign currency were offset
by currency fluctuations on expenses denominated in a foreign currency. There
were no material operating trends or effects on liquidity as a result of
fluctuations in the functional currency. We do not generally use any types of
derivatives to hedge against foreign currency fluctuation, nor do we speculate
in foreign currency. There is no assurance that exchange rate fluctuations may
not cause significant fluctuations in SolutionNet's results of operations.
Inflation did not have a material impact on our revenues or income
(loss) from operations for the nine months ended September 30, 2001 and 2000.
FUTURE CAPITAL NEEDS
Our ability to obtain cash adequate to fund our needs depends generally
on the results of our operations and the availability of financing. Management
believes that cash flow from operations, in conjunction with possible additional
issuances of common stock will be sufficient to fund capital expenditures in the
future. However, there can be no assurance in this regard or that we can
successfully sell our shares of common stock or that the prices we can receive
from the possible sale of our common stock will be favorable to SolutionNet.
FORWARD-LOOKING STATEMENTS
SolutionNet may from time to time provide information including certain
statements included in or incorporated by reference in this Form 10-Q which
constitute forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities and
Exchange Act of 1934, as amended. Those forward-looking statements include the
intent, belief or current expectations of the company and its management.
Prospective investors are cautioned that any such forward-looking statements are
not guarantees of future performance and involve a number of risks and
uncertainties, and that actual results could differ materially from those
indicated by such forward-looking statements. Among the important factors that
could cause actual results to differ materially from those indicated by such
forward-looking statements are: (i) foreign exchange rates, (ii) dependence on
skilled and key personnel, (iii) client concentration, (iv) product risks
including pricing, upgrades and defects, (v) doing business internationally,
(vi) variations in quarterly results, (vii) development by competitors of new or
superior products or services, or entry into the market of new competitors, and
(viii) other risks identified from time to time in the Company's reports and
registration statements filed with the Securities and Exchange Commission.
PART II OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Reference is made to the litigation described in "Part II -- Item 2.
Legal Proceedings" of Amendment No. 2 to the Form 10SB of the Company filed on
September 20, 2001.
ITEM 2. CHANGES IN SECURITIES
None.
5
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Annual Meeting of Shareholders of the Company was held on August
23, 2001 for the purpose of (i) electing two directors to serve until the 2002
Annual Meeting of Shareholders, (ii) approving and adopting the 2001 Equity
Participation Plan for the Company and to reserve for issuance thereunder
1,500,000 shares of the Company's stock; and (iii) ratifying the 1999 amendment
of the Articles of Incorporation changing the corporate name from ETG
International, Inc. to SolutionNet International, Inc.
The results of the election were as follows:
1. ELECTION OF DIRECTORS
VOTES
NAME OF DIRECTOR VOTES FOR WITHHELD
Suresh Venkatachari 7,466,896 41,202
Sampath Seshadri 7,466,896 41,202
2. APPROVAL OF THE 2001 EQUITY PARTICIPATION PLAN
VOTES
VOTES FOR VOTES AGAINST ABSTAINED
7,507,156 552 390
3. RATIFICATION OF 1999 AMENDMENT TO THE ARTICLES OF INCORPORATION
VOTES
VOTES FOR VOTES AGAINST ABSTAINED
7,507,946 2 150
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) EXHIBITS
None
(B) REPORTS ON FORM 8-K
None
6
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SOLUTIONNET INTERNATIONAL, INC.
By: /s/ Suresh Venkatachari
---------------------------------------------
Suresh Venkatachari
President, Chief Executive Officer and Treasurer
(principal executive officer and principal financial
officer)
November 14, 2001
7