SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act Of 1934
Date of report (date of earliest event reported): April 19, 2007
MAGNITUDE INFORMATION SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
33-20432 75-2228828
(Commission File Number) (IRS Employer Identification No.)
1250 Route 28, Branchburg, New Jersey 08876
(Address of principal executive offices) (Zip Code)
(908) 927-0004
(Registrant's telephone number)
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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2 below):
|_| Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e- 4(c))
Item 1.01. Entry into a Material Definitive Agreement.
On April 18, 2007, Magnitude Information Systems, Inc. (the
"Company") entered into an agreement in principle to hire Eric
Brahms as its Senior Vice President of Operations, commencing on the
earlier of June 1, 2007 or on the date the Company closes its
acquisition of Kiwibox Media, Inc., scheduled for May, 2007. The
Company shall provide Mr. Brahms with an employment agreement for a
three year term, at a base annual salary of $150,000 with
participation in the Company's medical and all other benefit plans,
as well as eligibility to participate in the Company's incentive and
bonus programs as and when developed. Prior to the employment
contract commencement, Mr. Brahms will serve as a consultant to the
Company, effective May 1, 2007, and shall be paid a monthly fee in
the amount of $7,500. Before joining the Company, Mr. Brahms worked
since January, 2002 for WebMD/Medical Manager Corp. and its
successor, Sage Healthcare, in various senior positions, most
recently as the Development Manager, Business Intelligence Group.
Item 8.01. Other Events.
On April 19, 2007, the Company issued a press release in connection with its
agreement to hire Eric Brahms as its Senior Vice President of Operations. The
full text of the Company's press release is attached hereto as Exhibit 99.1 and
is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:
99.1 Press Release, dated April 19, 2007
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.
COMPANY INFORMATION SYSTEMS, INC.
Dated: April 19, 2007 By: /s/ Edward L. Marney
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Edward L. Marney
President and Chief Executive Officer
Exhibit 99.1
Magnitude Hires Executive to Assist in Kiwibox Operations
Branchburg, NJ - April 19, 2007 -- Magnitude Information Systems,
Inc.("Magnitude") (OTC: MAGY.OB) announced today that it has hired Eric Brahms,
a senior level software operations executive, to the position of Senior Vice
President of Operations. "Eric Brahms is an exceptionally, well-rounded
operations officer, with solid systems development and business management
experience", stated Ed Marney, President and Chief Executive Officer of
Magnitude. Mr. Marney continued, "while managing the Business Intelligence unit
at WebMD/Medical Manager (now owned by Sage Software), Eric maintained tight
control of an exceptionally rapid growth phase. His services will be invaluable
to us when we begin the ramp-up of the Kiwibox website following the closing of
the acquisition."
Magnitude signed a definitive agreement to acquire Kiwibox Media, Inc., based in
New York City. Kiwibox Media, Inc. has created a successful Online Social
Network known as Kiwibox.com serving the Teen marketplace. As previously
announced, the closing of the Kiwibox acquisition is scheduled for May, 2007
Online social networks have made numerous headlines over the past few years with
their sticky web-based community features and viral growth patterns. Social
networking sites such as MySpace.com and Facebook.com have reached outstanding
levels of popularity and command valuations well over $1 billion. To date these
sites have focused on users entering college and beyond, leaving the 13-19
demographic untapped. The teenage population, as estimated by the census bureau,
topped out at 34 million in the United States while spending over $175 billion
in 2003 according to Teenage Research Unlimited. Today's teenagers are the first
generation to grow up using the Internet for everything from entertainment and
information, to shopping and communication.
Kiwibox.com has been a leading entertainment focused online social network and
has targeted female teenagers between the ages of 13 - 19 since September 1999.
Kiwibox.com has built its online brand utilizing a unique "For Teens By Teens"
design methodology, and since inception Kwiwbox.com has been an industry leader
in adopting user generated site content. By involving the teen user in the
creation, editing and moderating of content Kiwibox.com has become the online
destination for over 1.8 million registered members and 150,000 unique visitors
monthly. Magnitude intends to leverage its extensive knowledge of user needs and
habits and re-launch an immensely more powerful Kiwibox.com site focused on both
the male and female demographic.
This press release contains certain statements relating to future results, which
are forward-looking statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to differ
materially from either historical or anticipated results, depending on a variety
of factors. Potential factors that could impact results include the general
economic conditions in different countries around the world, fluctuations in
global equity and fixed income markets, exchange rates, rating agency actions,
resolution of pending regulatory investigations and related issues, including
those related to compensation arrangements with underwriters, pension funding,
ultimate paid claims may be different from actuarial estimates and actuarial
estimates may change over time, changes in technology and internet developments,
commercial property and casualty markets and commercial premium rates, the
competitive environment, the actual costs of resolution of contingent
liabilities and other loss contingencies, and the heightened level of potential
errors and omissions liability arising from placements of complex policies and
sophisticated reinsurance arrangements in an insurance market in which insurer
reserves are under pressure. Further information, concerning the Company and its
business, including factors that potentially could materially affect the
Company's financial results, is contained in the Company's filings with the
Securities and Exchange Commission.
Contact: Magnitude Information Systems Inc.
Edward L. Marney, President and Chief Executive Officer
(772) 286-9292