UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 1997
OR
[ ] 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: 0-23952
AVERT, INC.
---------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Colorado 84-1028716
------------------------------ ----------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization
301 Remington, Fort Collins, CO 80524
--------------------------------------
(Address of principal executive offices)
970/484-7722
--------------------------------------------------
(Registrant's telephone number, including area code)
No Change
------------------------------------------------------
(Former name, former address and former fiscal year, if
changed from last report).
Check whether the registrant (1) 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 for such shorter period that the issuer was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.
[X] Yes [ ] No
As of November 12, 1997 the issuer had 3,488,125 shares of Common Stock, no
par value, outstanding.
Transitional Small Business Disclosure Format.
[ ] Yes [X] No
Form 10-QSB
Quarter Ended September 30, 1997
INDEX
PAGE
----
PART I - FINANCIAL INFORMATION
ITEM 1. Financial statements
Unaudited balance sheets............................. 3
Unaudited statements of income....................... 4
Unaudited statements of cash flows................... 5
Notes to unaudited financial statements.............. 6
ITEM 2. Management's Discussion and Analysis or
Plan of Operations................................... 7
PART II - OTHER INFORMATION
ITEMS 1, 2, 3, 4, and 5 Not applicable
ITEM 6........................................................ 12
Signatures.................................................... 13
2
PART I - FINANCIAL INFORMATION
AVERT, INC.
BALANCE SHEETS
ASSETS
SEPTEMBER 30, DECEMBER 31,
1997 1996
------------ -----------
(unaudited)
Current assets:
Cash and cash equivalents ................................................. $ 1,125,100 $ 360,300
Marketable securities ..................................................... 5,288,000 5,576,700
Accounts receivable, net of allowance ..................................... 1,279,100 787,900
Prepaid expenses and other ................................................ 166,500 159,000
----------- -----------
Total current assets ............................................. $ 7,858,700 6,883,900
Property and equipment, net ........................................................ 3,351,500 2,510,900
----------- -----------
Total assets ....................................................................... $11,210,200 $ 9,394,800
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable .......................................................... $ 463,600 $ 464,400
Accrued expenses .......................................................... 583,400 224,600
Deferred revenue .......................................................... 67,200 20,000
----------- -----------
Total current liabilities ........................................ 1,114,200 709,000
Shareholders' equity:
Preferred shares, no par value; authorized
1,000,000 shares; none outstanding ...................................... -- --
Common stock, no par value; authorized
9,000,000 shares; 3,488,125, and 3,446,988
shares issued and outstanding respectively .............................. 5,276,200 4,745,500
Retained earnings ......................................................... 4,819,800 3,940,300
----------- -----------
Total shareholders' equity ....................................... 10,096,000 8,685,800
----------- -----------
Total liabilities and shareholders' equity ......................................... $11,210,200 $ 9,394,800
=========== ===========
See accompanying notes to the financial statements.
3
AVERT, INC.
STATEMENTS OF INCOME
(unaudited)
Three Months Ended Nine Months Ended
Sept 30, Sept 30,
-------------------------- ---------------------------
1997 1996 1997 1996
---- ---- ---- ----
Net revenues:
Search and product fees ................ $ 2,410,500 $ 2,054,900 $ 6,772,300 $ 5,466,800
Interest and other income .............. 113,900 158,900 306,500 367,100
----------- ----------- ----------- -----------
2,524,400 2,213,800 $ 7,078,800 $ 5,833,900
Expenses:
Search and product costs ............... 1,104,800 892,700 3,050,900 2,385,100
Marketing .............................. 325,200 374,100 1,061,600 984,300
General and administrative ............. 327,500 259,400 945,400 774,700
Software development ................... 81,700 91,500 281,500 268,400
Depreciation and amortization .......... 113,200 50,100 291,700 130,600
----------- ----------- ----------- -----------
1,952,400 1,667,800 5,631,100 $ 4,543,100
----------- ----------- ----------- -----------
Income before income taxes ...................... 572,000 546,000 1,447,700 1,290,800
Income tax expense ..................... (224,900) (207,900) (568,300) (491,100)
----------- ----------- ----------- -----------
Net income ...................................... $ 347,100 $ 338,100 $ 879,400 799,700
=========== =========== =========== ===========
Net income per common share ..................... $ .10 $ .10 $ .25 $ .23
=========== =========== =========== ===========
Weighted average common
shares outstanding ..................... 3,502,758 3,422,797 3,574,525 3,423,893
=========== =========== =========== ===========
See accompanying notes to the financial statements.
4
AVERT, INC.
STATEMENTS OF CASH FLOWS
(unaudited)
NINE MONTHS ENDED SEPTEMBER 30
------------------------------
1997 1996
---- ----
Cash Flows From Operating Activities:
Net income ..................................................... $ 879,400 $ 799,700
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization ............................. 291,700 130,600
Bad debt expense .......................................... 19,500 22,500
(Increase)/decrease in marketable securities and
other gains ...................................... 288,700 (76,600)
Changes in operating assets and liabilities:
Accounts receivable .................................. (510,700) (417,500)
Prepaid expenses and other current assets ............ (7,500) 90,200
Other assets ......................................... -- 3,200
Accounts payable ..................................... (800) (48,400)
Accrued expenses ..................................... 239,000 (36,900)
Income taxes payable ................................. 119,700 125,600
Deferred revenue and deposits ........................ 47,200 (5,600)
---------- ---------
Net cash provided by operating activities ................. $ 1,366,200 $ 586,800
Cash Flows from Investing Activities:
Additions to furniture and equipment .......................... (1,132,200) (877,500)
Proceeds from sale of furniture and equipment ................. -- 542,700
---------- ---------
Net cash used in investing activities ................... (1,132,200) (334,800)
---------- ---------
Cash Flows from Financing Activities:
Purchase of Treasury Stock ................................ -- (168,200)
Warrants exercised ............................ 530,800 --
---------- ---------
Net cash provided by (used in) financing activities ..... 530,800 (168,200)
Increase/(Decrease) in Cash and Cash Equivalents ................... 764,800 83,800
Cash and Cash Equivalents, beginning of period ..................... 360,300 159,700
---------- ---------
Cash and Cash Equivalents, end of period ........................... $ 1,125,200 $ 243,500
========== =========
See accompanying notes to the financial statements.
5
AVERT, INC.
NOTES TO FINANCIAL STATEMENTS
The financial information contained herein is unaudited, but includes all
adjustments (consisting of only normal recurring accruals) which, in the opinion
of management, are necessary to present fairly the information set forth. The
financial statements should be read in conjunction with the Notes to Financial
Statements which are included in the Annual Report on Form 10-KSB of the Company
for the year ended December 31, 1996.
The results for interim periods are not necessarily indicative of results
to be expected for the fiscal year of the Company ending December 31, 1997. The
Company believes that the three month report filed on Form 10-QSB is
representative of its financial position, its results of operations and its cash
flows as of and for the periods ended September 30, 1997 and 1996 covered
thereby.
Impact of recently issued accounting standards. Statement of Financial
Accounting Standards 128, "Earnings per Share" and Statement of Financial
Accounting Standards 129 "Disclosure of Information About an Entity's Capital
Structure". Statement 128 provides a different method of calculating earnings
per share than is currently used in accordance with Accounting Principles Board
Opinion 15 "Earnings per Share". Statement 128 provides for the calculation of
"basic" and "diluted" earnings per share. Basic earnings per share includes no
dilution and is computed by dividing income available to common shareholders by
the weighted average number of common shares outstanding for the period. Diluted
earnings per share reflects the potential dilution of securities that could
share in the earnings of an entity, similar to fully diluted earnings per share.
Statement 129 establishes standards for disclosing information about an entity's
capital structure. Statements 128 and 129 are effective for financial statements
issued for periods ending after December 15, 1997. Their implementation is not
expected to have a material effect on the financial statements.
Statement of Financial Accounting Standards 130. "Reporting Comprehensive
Income" and Statement of Financial Accounting Standards 131 "Disclosures About
Segments of an Enterprise and Related Information". Statement 130 establishes
standards for reporting and display of comprehensive income, its components and
accumulated balances. Comprehensive income is defined to include all changes in
equity except those resulting from investments by owners and distributions to
owners. Among other disclosures, Statement 130 requires that all items that are
required to be recognized under current accounting standards as components of
comprehensive income be reported in a financial statement that displays with the
same prominence as other financial statements. Statement 131 supersedes
Statement of Financial Accounting Standards 14 "Financial Reporting for Segments
of a Business Enterprise". Statement 131 establishes standards on the way that
public companies report financial information about operating segments in annual
financial statements and requires reporting of selected information about
operating segments in interim financial statements issued to the public. It also
establishes standards for disclosures regarding products and services,
geographic areas and major customers. Statement 131 defines operating segments
as components of a company about which separate financial information is
available that is evaluated regularly by the chief operating decision maker in
deciding how to allocate resources and in assessing performance.
Statements 130 and 131 are effective for financial statements for periods
beginning after December 15, 1997 and require comparative information for
earlier years to be restated. Because of the recent issuance of these standards,
management has been unable to fully evaluate the impact, if any, the standards
may have on the future financial statement disclosures. Results of operations
and financial position, however, will be unaffected by implementation of these
standards.
6
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Results of Operations
Comparison of quarters ended September 30, 1997 and September 30, 1996
Total net revenues increased from $2,213,800 for the three month period
ended September 30, 1996 to $2,524,400 for the comparable three month period in
1997, or approximately 14.0%. The breakdown of net revenues, exclusive of
product discounts and other miscellaneous income items, is as follows:
Three Months Ended Three Months Ended
September 30, 1997 September 30, 1996 Percent of
----------------------- -------------------------- Increase
Revenues % total Revenues % total (Decrease)
-------- ------- -------- ------- --------
Products:
Workers compensation histories ........ $ 297,600 11.8% $ 354,600 16.0% (16.1)%
Criminal history reports .............. $1,270,200 50.3% $1,114,200 50.3% 14.0%
Previous employment reports/
credit reports ..................... $ 329,500 13.1% $ 246,400 11.1% 33.7%
Motor vehicle driving records ......... $ 251,300 10.0% $ 256,700 11.6% (2.1)%
Other products ........................ $ 123,200 4.9% $ 111,100 5.0% 10.9%
Services ................................ $ 141,600 5.6% $ 79,100 3.6% 79.0%
Interest income ......................... $ 80,100 3.2% $ 76,700 3.5% 4.4%
NET REVENUES ................... $2,524,400 $2,213,800 14.0%
In total dollars, criminal history reports continues to contribute the most
net revenues or any product, representing $1,270,200 in net revenues in the
three month period ended September 30, 1997, as compared to $1,114,200 in the
three month period ended September 30, 1996. The criminal history reports
product line accounted for approximately 50% of total net revenues in the third
quarter 1997, and approximately the same percentage of total net revenues in the
third quarter 1996, and represents a 14% growth. The Company believes there is
an on-going nationwide trend to check prospective employees' criminal records
and it continues to focus on obtaining the quickest, most accurate data
available.
Workers' compensation histories is no longer our second largest product
line in terms of revenues, and has continued to decline as a percentage of net
revenues as previously predicted. In third quarter 1997, workers' compensation
reports represented 11.8% of net revenues, or $297,600 as compared to 16.0% of
net revenues in third quarter 1996, or $354,600. The Company believes it will
continue to decrease as a percentage of total net revenues, though still a
viable product.
The largest product growth of approximately 33.7% continues to be in the
area of Previous Employment/Credit. This product represented $329,500 in the
third quarter 1997, compared to $246,400 in the third quarter 1996. This product
has moved into the second largest product line position, representing 13.1% of
total net revenues in the third quarter 1997, as compared to approximately 11.1%
of total net revenues in the third quarter 1996. Both products making up this
category are quick turnaround products, considered attractive to customers.
Net revenue growth was flat in the area of motor vehicle driving records,
representing approximately 10.6% of total net revenues in the third three month
period of 1997, as compared to 11.6% of total net revenues in the same period of
1996. The revenue generated in third quarter of 1997 was $251,300, and $256,700
in third quarter of 1996.
7
Steady growth occurred in the "Services" area, increasing from
approximately 3.6% of total net revenues in third quarter 1996 to approximately
5.6% of total net revenues in third quarter 1997. This increase is attributable
to increased number of customer setups and Avert Advantage membership, first
implemented in July, 1996. In addition, Avert continues to develop special
services, allowing for customer customization. This section represents $141,600
in revenues in the three month period ended September 30, 1997 as compared to
$79,100 in the three month period ended September 30, 1996.
Total expenses increased from $1,667,800 for the three month period ended
September 30, 1996 to $1,952,400 for the comparable period in 1997 or
approximately 17.0% A breakdown in expenses is as follows:
Three Months Ended Three Months Ended Increase (Decrease)
September 30, 1997 September 30, 1996 % of Revenues
------------------------- ------------------------- ---------------
Expenses % of Revenue Expenses % of Revenue 1997 over 1996
-------- ------------ -------- ------------ --------------
Search and product ...................... $1,104,800 43.8% $ 892,700 40.3% 3.5%
Marketing ............................... 325,200 12.9 374,100 16.9 (4.0)
General and administrative .............. 327,500 13.0 259,400 11.7 1.3
Software development .................... 81,700 3.2 91,500 4.1 (0.9)
Depreciation and amortization ........... 113,200 4.4 50,100 2.3 2.1
---------- ---- ---------- ---- ---
Expenses ....................... $1,952,400 77.3% $1,667,800 75.3% 2.0%
========== ==== ========== ==== ===
Search and product fees increased from approximately 40.3% of total net
revenues for third quarter 1996 to 43.8% of total net revenues for third quarter
1997. With criminal history reports representing a large portion of our product
mix, the Company has experienced an increase in state and county fees required
for report retrieval. In addition, there is a continued belief that the
development of existing couriers and addition of new couriers and improved
methods of retrieval of criminal records has the potential to lower the product
costs. The Company believes that there are enhancements planned in these
specific areas once the new software is completed, that will positively impact
turnaround and ultimately benefit customers, as well as positively impact
efficiencies in this area. See "Liquidity and Capital Resources" below in this
Item for further discussion. Costs associated with the criminal history product
line represent the bulk of this expense category.
In addition, there was an increase in the product costs, (specifically
labor), associated with the Previous Employer Verification product line growth
in third quarter 1997, as compared to third quarter 1996. This product is very
labor intensive, which is considered to be a reason that it is an attractive
product for outsourcing to Avert by its customers.
There was a decrease in marketing expenses when expressed as a percentage
of total net revenues. A large portion of the decrease resulted from the
elimination of outside sales representatives and a re-alignment of in-house
personnel. The department has been revamped to enable more focus on new customer
sales via telemarketing, on-going account management, and successful
implementation of a pilot process designed to accommodate large companies new to
Avert.
There is a continued on-going marketing campaign designed to target lead
generation, marketing communication and market development for both current
customers and new customers. Due to a decrease in the number of trade shows
Avert is attending, there was a decrease in trade show expenses in the third
quarter 1997 as compared to the third quarter 1996. The Company continues to
believe that lead generation can be performed more effectively using other
methods.
There was a small decrease in software development expenses, both as a
percentage of total net revenues, and in total dollars, in the three month
period ended September30, 1997 as compared to the three month period ended
September 30, 1996. The Company also capitalizes certain software development
costs associated with the further development of its internal software system
used in revenue generation. The majority of these development costs are paid to
8
third parties. See "Liquidity and Capital Resources" below in this Item for
further discussion. The depreciation and amortization expenses have increased
from third quarter 1996 to third quarter 1997 as a percentage of total net
revenues, due to the fact that substantial computer hardware purchases were
required for the computer software project Avert has undertaken. In addition,
Phase I of the software began depreciation in the second quarter 1997 resulting
in a $43,600 increase in software depreciation in third quarter 1997 over third
quarter 1996. Phase II of software depreciation was originally expected to begin
in fourth quarter 1997, but has been postponed until first quarter of 1998.
Income before income taxes increased from $572,000 in third quarter 1996 to
$546,000 in third quarter 1997, or approximately 4.8% and represented
approximately 22.7% of total net revenues in 1997 compared to approximately
24.7% in 1996.
Income taxes varied slightly for the combined federal and state statutory
rate of approximately 38.1% in the third quarter 1996 and approximately 39.3% in
the third quarter 1997, resulting in net income of $338,100 or $.10 per share on
3,422,797 shares for the third three months ended September 30, 1996, as
compared to net income of $347,100 or $.10 per share on 3,502,758 shares for the
third three months ended September 30, 1997.
Comparison of nine months ended September 30, 1997 and September 30, 1996
Net revenues increased from $5,833,900 for the nine month period ended
September 30, 1996, to $7,078,800 for the comparable nine month period in 1997
or approximately 21.3%. The breakdown of net revenues, exclusive of product
discounts and other miscellaneous income items, is as follows:
Nine Months Ended Nine Months Ended
September 30, 1997 September 30, 1996 Percent of
----------------------- ------------------------ Increase
Revenues % total Revenues % total (Decrease)
-------- ------- -------- ------- --------
Products:
Workers compensation histories ........ $ 893,900 12.6% $ 964,800 16.5% (7.4)%
Criminal history reports .............. $3,535,700 49.9% $2,982,900 51.1% 18.5%
Previous employment reports/ .......... $ 852,700 12.0% $ 645,200 11.1% 32.2%
credit reports
Motor vehicle driving records ......... $ 773,700 10.9% $ 704,800 12.1% 9.8%
Other products ........................ $ 346,800 4.9% $ 320,100 5.5% 8.3%
Interest income ......................... $ 234,400 3.3% $ 237,700 4.1% (1.4)%
NET REVENUES ................... $7,078,800 $5,833,900 21.3%
Moderate to strong growth in sales of most all of the Company's products
continued during the first nine months of 1997 with the biggest exception being
workers' compensation reports. As predicted, sales of workers' compensation
histories actually decreased approximately 7.4% from the nine month period ended
September 30, 1996 to the same nine month period in 1997. However, it is still
the second largest product line representing $893,900 for nine months of 1997
and $964,800 for nine months of 1996. The Company believes that it will continue
to decrease as a percentage of total revenues.
9
Growth of approximately 18.5% continued in the criminal history product
line representing approximately 49.9% of net revenues in the first nine month
period of 1997 as compared to approximately 51.1% of net revenues in the first
nine month period of 1996. Criminal history reports continues to represent the
most net revenues, representing $3,535,700 in the first nine month period of
1997 as compared to $2,982,900 in the first nine month period of 1996.
The strongest growth occurred in the area of previous employment and credit
reports representing an approximate 32.2% growth from the nine month period
ended September 30 1996 to the nine month period ended September 30 1997. These
products accounted for approximately 12.9% of net revenues in the nine months
ended September 30, 1997 as compared to approximately 11.1% of net revenues in
the same period in 1996.
Other products experienced moderate growth in revenues, representing
approximately 4.9% of total net revenues, and $346,800 in the first nine month
period of 1997 as compared to approximately 5.5% of total net revenues, and
$320,100 in the same period of 1996.
Total expenses increased from $4,543,100 for the nine month period ended
September 30, 1996 to $5,631,100 for the comparable period in 1997. A breakdown
in expenses is as follows:
Nine Months Ended Nine Months Ended Increase (Decrease)
September 30, 1997 September 30, 1996 % of Revenues
----------------------------- -------------------------- ----------------
Expense % of Revenue Expense % of Revenue 1996 over 1995
Search and product ....................... $3,050,900 43.1% $2,385,100 40.9% 2.2%
Marketing ................................ 1,061,600 15.0 984,300 16.9 (1.9)
General and administration ............... 945,400 13.4 774,700 13.3 0.1
Software development ..................... 281,500 4.0 268,400 4.6 (0.6)
Depreciation and amortization ............ 291,700 4.1 130,600 2.2 1.9
---------- ---- ---------- ---- ---
Expenses ........................ $5,631,100 79.6% $4,543,100 77.9% 1.7%
========== ==== ========== ==== ===
Total expenses remained relatively stable, increasing approximately 1.7% as
a percentage of total net revenues, in the first nine month period of 1997 as
compared to the first nine month period of 1996.
Search and product costs increased approximately 2.2% of total net revenues
resulting from the large proportion of criminal history reports, and a
substantial increase in previous employment verifications. The decrease in
Marketing expenses in the nine month period ended September 30, 1997 over the
nine month period ended September 30, 1996 resulted primarily from a decrease in
monies spent for outside sales representatives, lead generation costs and trade
show expenses. Due to the development of new software used in revenue generation
activities and increased computer hardware costs associated with this software,
depreciation and amortization expenses have increased approximately 1.9% of
total net revenues from the nine month period ended September 30, 1996 to the
nine month period ended September 30, 1997. Phase I of the software began
depreciating in the second quarter 1997 and with Phase II software depreciation
expected to begin in first quarter 1998.
Income before income taxes increased from $1,290,800 in the nine month
period ended September 30, 1996, to $1,447,700 in the nine month period ended
September 30, 1997, or approximately 12.2% and represented approximately 20.5%
of net revenues in the first nine months of 1997 compared to approximately
22.13% in the first nine months of 1996.
10
Income taxes varied slightly for the combined federal and state statutory
rate of approximately 38% in the first nine months of 1996 and approximately
39.3% in the first nine months of 1997. This resulted in an increase of net
income of $799,700 or $.23 per share on 3,423,893 shares for the nine months
ended September 30, 1996, to net income of $879,400 or $.25 per share on
3,574,525 shares for the nine months ended September 30, 1997.
Liquidity and Capital Resources
The Company's financial position at September 30, 1997 remained strong with
working capital at that date of $6,743,500 compared to $6,174,900 at December
31,1996. Cash and cash equivalents and marketable securities at September 30,
1997 were $6,413,100 and increased from $5,576,700 at December 31, 1996. Net
cash provided from operations for the nine month period ended September 30, 1997
was $1,366,200 and consisted primarily of net income of $879,400 plus $291,700
in depreciation, a $239,000 increase in accrued expenses, a $510,700 increase in
accounts receivable, and a $288,700 decrease in marketable securities. The
Company had capital expenditures of $1,132,200 for the nine month period ended
September 30, 1997 as compared to $877,500 for the nine months ended September
30, 1996. The majority of the capital expenditures during the nine months ended
September 30, 1997 is attributable to the development of new software and
upgrade of existing software and hardware. The Company has completed Phase I,
the on-line internet ordering system, which integrates all partners, resellers,
and customers on to a common Oracle web server based environment. Phase II of
the project involving internal process improvements, originally scheduled to be
completed in fourth quarter 1997, has been postponed to first quarter 1998. The
budget impact of the postponement is approximately an increase from $1.5 million
originally estimated, to approximately $1.6 million. The majority of these are
costs paid to independent consultants. The Company expects the new software and
upgrade of its existing software to allow the Company to: (1) manage its higher
volume with a lower cost per transaction; (2) introduce new products and
services at a much quicker pace; (3) directly integrate the Company's
information technology systems with strategic partners, suppliers, and large
customers; and (4) maintain the Company's competitive position and provide
leading edge, but safe and proven, technology for its customers. Development and
upgrade of the software will be financed by available cash derived from past or
continued operations. Development and upgrading of the software presently is
expected to be complete in early 1998 with scheduled software releases occurring
prior to that time. In addition, April 30, 1997, there was $530,800 attributable
to the exercise of warrants, which represented 88,125 shares of common stock.
11
PART II - OTHER INFORMATION -
ITEM 1. Legal Proceedings
NONE
ITEM 2. Changes in Securities
NONE
ITEM 3. Defaults Upon Senior Securities
NONE
ITEM 4. Submission of Matters to a Vote of Security Holders
NONE
ITEM 5. Other Information
NONE
ITEM 6. Exhibits and Reports on Form 8-K
(a) NONE
(b) Reports on Form 8-K
The registrant filed the following report on Form 8-K during
the third quarter ended September 30, 1997:
Form 8-K dated September 3, 1997, announcing second quarter
1997 results.
12
SIGNATURES
In accordance with 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.
AVERT, INC.
DATE: November 12, 1997 BY: /s/ Dean A. Suposs
--------------------------------------
Dean A. Suposs, President
DATE: November 12, 1997 BY: /s/ Jamie M. Burgat
--------------------------------------
Jamie M. Burgat, Vice President of
Operations and Chief Financial Officer
13