UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE THREE MONTHS ENDED MARCH 28, 2003
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: 001-14753
INTERNATIONAL SMART SOURCING, INC.
(Exact Name of Small Business Issuer as specified in its charter)
Delaware 11-3423157
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
320 Broad Hollow Road
Farmingdale, NY 11735
(Address of principal executive offices)
(631) 293-4650
(Issuer's telephone number)
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 for 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 May 19, 2003, the Registrant had 3,777,384 shares of its Common Stock,
$0.001 par value, issued and outstanding.
INTERNATIONAL SMART SOURCING, INC. AND SUBSIDIARIES
FORM 10-QSB
MARCH 28, 2003
INDEX
Page
Number
------
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements (unaudited)
Condensed Consolidated Balance Sheet 1
Condensed Consolidated Statements of Operations 2
Condensed Consolidated Statements of Cash Flows 3
Notes to Consolidated Financial Statements 4-8
Item 2 - Management's Discussion and Analysis or Plan of Operation 9-11
Item 3 - Controls and Procedures 11
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings 12
Item 2 - Changes in Securities and Use of Proceeds 12
Item 3 - Defaults upon Senior Securities 12
Item 4 - Submission of Matters to a Vote of Security Holders 12
Item 5 - Other Information 12
Item 6 - Exhibits and Reports on Form 8-K 12
SIGNATURE 13
INTERNATIONAL SMART SOURCING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
MARCH 28, 2003
ASSETS
------
CURRENT ASSETS:
Cash $ 379,713
Accounts receivable - net of allowance for
doubtful accounts of $12,536 1,367,336
Inventories 1,360,250
Prepaid expenses and other current assets 216,132
----------
TOTAL CURRENT ASSETS 3,323,431
Property and equipment - net 430,985
Investments 84,142
---------
$ 3,838,558
=========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 1,122,179
Deferred revenue 24,490
Line of credit and accrued interest 1,013,222
Current portion of long tem debt (including $62,018 to officer/stockholders) 202,599
Current portion of obligations under capital leases 33,585
---------
TOTAL CURRENT LIABILITIES 2,396,075
Long term debt (including $228,978 to officer/stockholders) - less current portion 320,620
Obligations under capital leases 49,183
---------
TOTAL LIABILITIES 2,765,878
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred Stock, $0.001 par value, 1,000,000 shares authorized,
no shares issued or outstanding -
Common Stock, $0.001 par value, 10,000,000 shares authorized,
issued and outstanding 3,777,384 3,777
Additional paid-in capital 8,045,937
Accumulated deficit (6,977,034)
----------
TOTAL STOCKHOLDERS' EQUITY 1,072,680
---------
$ 3,838,558
=========
See notes to condensed consolidated financial statements.
1
INTERNATIONAL SMART SOURCING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
------------------------------------
March 28, March 29,
2003 2002
----------------- ----------------
NET SALES $ 3,099,907 $ 2,313,363
COST OF GOODS SOLD 1,993,445 1,593,188
----------------- ----------------
GROSS PROFIT 1,106,462 720,175
----------------- ----------------
OPERATING EXPENSES
Selling and shipping 195,768 222,976
General and administrative 672,860 738,743
----------------- ----------------
TOTAL OPERATING EXPENSES 868,628 961,719
----------------- ----------------
INCOME (LOSS) FROM OPERATIONS 237,834 (241,544)
Interest and other income 2,300 2,063
Interest and other expenses (36,038) (20,100)
----------------- ----------------
NET INCOME (LOSS) $ 204,096 $ (259,581)
================= ================
NET INCOME (LOSS) PER SHARE - BASIC AND DILUTED
Basic $ 0.05 $ (0.07)
================= ================
Diluted $ 0.05 $ (0.07)
================= ================
WEIGHTED AVERAGE COMMON SHARES
Basic 3,777,384 3,760,934
================= ================
Diluted 4,090,706 3,760,934
================= ================
See notes to condensed consolidated financial statements.
2
INTERNATIONAL SMART SOURCING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Three Months Ended
---------------------------
March 28, March 29,
2003 2002
--------- ---------
Cash flows from operating activities:
Net income (loss) $ 204,096 $ (259,581)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Provision for doubtful accounts 12,189 -
Depreciation and amortization 51,175 45,575
Inventory obsolescence 7,369 -
Amortization 2,435 6,555
Changes in assets and liabilities:
Accounts receivable (282,647) (7,729)
Inventories 103,763 (152,101)
Prepaid expenses and other current assets 37,822 112,131
Other assets - (40,832)
Accounts payable and accrued expenses (136,989) 216,743
Deferred revenue (12,653) (147,781)
------- --------
Total adjustments (217,536) 32,561
-------- ------
Net cash used in operating activities (13,440) (227,020)
------- --------
Cash flows from investing activities:
Note receivable from related parties - 8,217
Expenditures for property and equipment (10,424) (8,748)
------- ------
Net cash used in investing activities: (10,424) (531)
------- ------
Cash flows from financing activities:
Capital lease repayments (11,826) (11,368)
Net proceeds from borrowings - 288,516
Principal payments and repayment of loans (41,324) (28,132)
------- -------
Net cash (used in) provided by financing activities (53,150) 249,016
------- -------
(Decrease) increase in cash (77,014) 21,465
Cash - beginning of period 456,727 146,478
------- -------
Cash - end of period $ 379,713 $ 167,943
======= ========
See notes to condensed consolidated financial statements.
3
INTERNATIONAL SMART SOURCING, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 28, 2003
(UNAUDITED)
1. BASIS OF PRESENTATION AND GOING CONCERN
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting
principles for interim financial statements and with the instructions
to Form 10-QSB. Accordingly, they do not include all of the
information and disclosures required for annual financial statements.
These financial statements should be read in conjunction with the
consolidated financial statements and related footnotes included in
International Smart Sourcing, Inc. and Subsidiaries (the "Company")
annual report on Form 10-KSB for the year ended December 27, 2002.
In the opinion of the Company's management, all adjustments
(consisting of normal recurring accruals) necessary to present fairly
the Company's financial position as of March 28, 2003 and the results
of operations and cash flows for the three month periods ended March
28, 2003 and March 29, 2002 have been included.
The results of operations for the three month periods ended March 28,
2003, are not necessarily indicative of the results to be expected for
the full year ended December 26, 2003.
The accompanying consolidated financial statements have been prepared
assuming that the Company will continue as a going concern. The
Company has not complied with its credit line's minimum tangible net
worth covenant. In addition, the bank that provided the Company with
its credit facility was closed by the Connecticut Banking Department
on June 27, 2002, with the F.D.I.C. assuming receivership of the
failed bank. This condition raises substantial doubt about the
Company's ability to continue as a going concern. Management's plans
with respect to this matter include, replacing their financing
arrangement through an alternative lending institution, raising
additional funds through equity or debt financing and continuing to
achieve profitable operations. The Company is in discussions with
various financial institutions to replace its line of credit. In the
interim, the F.D.I.C. has continued to service the Company's credit
facility, although it is uncertain at this time what the ultimate
disposition of the facility will be. The accompanying consolidated
financial statements do not include any adjustments that might be
necessary should the Company be unable to continue as a going concern.
4
2. RECENT ACCOUNTING PRONOUNCEMENTS
- In December 2002, the Financial Accounting Standards Board, "FASB"
issued Statement of Financial Accounting Standards, ("SFAS") No. 148,
"Accounting for Stock-Based Compensation - Transition and Disclosure -
an amendment of FASB Statement No. 123." SFAS No. 148 amends SFAS No.
123, "Accounting for Stock-Based Compensation," to provide alternative
methods of transition for a voluntary change to the fair value based
method of accounting for stock-based employee compensation. In
addition, SFAS No. 148 amends the disclosure requirements of SFAS No.
123 to require prominent disclosures in both annual and interim
financial statements about the method of accounting for stock-based
employee compensation and the effect of the method used on reported
results. The disclosure requirements apply to all companies for fiscal
years ending after December 15, 2002. The interim disclosure
provisions are effective for financial reports containing financial
statements for interim periods beginning after December 15, 2002. The
adoption of SFAS No. 148 is not expected to have a material impact on
the Company's consolidated financial statements
As permitted under SFAS No. 123, the Company continues to apply the
Accounting Principals Board Opinion No. 25, "Accounting for Stock
Issued to Employees." As required under SFAS No. 148, the following
table presents pro forma net income (loss) and basic and diluted
earnings per share as if the fair value-based method had been applied
to all awards.
Three Months Ended
-----------------------------------------
March 28, 2003 March 29, 2002
------------------ ------------------
Net income (loss) as reported $ 204,096 $ (259,581)
Less: total stock-based employee compensation expense
determined under fair value method, net of related tax
effects 154,157 125,127
------------------ ------------------
Pro Forma net income (loss) $ 49,939 $ (384,708)
================== ==================
Net income (loss) per share:
Basic earnings per share as reported $ 0.05 $ (0.07)
Pro Forma basic earnings per share $ 0.01 $ (0.10)
Diluted earnings per share as reported $ 0.05 $ (0.07)
Pro Forma diluted earnings per share $ 0.01 $ (0.10)
- In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement
133 on Derivative Instruments and Hedging Activities." The statement
amends and clarifies accounting for derivative instruments, including
certain derivatives instruments embedded in other contracts and for
hedging activities under SFAS 133. This Statement is effective for
contracts entered into or modified after June 30, 2003, except as
stated below and for hedging relationships designated after June 30,
2003. The guidance should be applied prospectively. The provisions of
this Statement that relate to SFAS 133 Implementation Issues that have
been effective for fiscal quarters that began prior to June 15, 2003,
should continue to be applied in accordance with respective effective
dates. In addition, certain provisions relating to forward purchases
or sales of when-issued securities or other securities that do not yet
exist, should be applied to existing contracts as well as new
contracts entered into after June 30, 2003. The adoption of SFAS No.
149 is not expected to have an impact on the Company's financial
statements.
5
2. MAJOR CUSTOMERS
During the three months ended March 28, 2003 and March 29, 2002, two
customers accounted for approximately 59% and 7%, respectively of the
Company's sales. The United States government accounted for
approximately 59% of the Company's outstanding accounts receivable as
of March 28, 2003.
3. INVENTORIES
Inventories consist of the following at March 28, 2003:
Raw Materials $ 54,269
Work in Process 51,558
Finished Goods 899,149
Components 355,274
-------------------
$ 1,360,250
===================
4. SELLING AND SHIPPING
The Company classifies shipping and handling costs as a component of
selling and shipping expenses. Shipping and handling costs were
approximately $118,930 and $126,978 for the three months ended March
28, 2003 and March 29, 2002, respectively. The Company does not
separately charge these costs to its customers.
5. RELATED PARTY SALES
Sales during the three months ended March 28, 2003 and March 29, 2002
included approximately $ 84,544 and $ 74,678, respectively to another
company owned by three officer/stockholders of the Company. Gross
profit on such sales was approximately $13,636 and $ 11,912 for the
three months ended March 28, 2003 and March 29, 2002, respectively.
Accounts receivable from the related company was approximately $23,390
at March 28, 2003.
6. LINE OF CREDIT
In April 2001, the Company entered into a revolving line of credit
agreement with a bank that provided for a maximum borrowing of up to
$1,500,000, subject to certain conditions, at an interest rate of
prime, which was 4.25% at March 28, 2003, plus 1.75%. The loan is
secured by substantially all assets of the Company and is
unconditionally guaranteed by three officers/stockholders, each
limited to $250,000.
The bank that provided the Company with the above credit facility was
closed by the Connecticut Banking Department on June 27, 2002, with
the F.D.I.C. assuming receivership of the failed bank. Management's
plans with respect to this matter include, replacing the financing
arrangement through an alternative lending institution, raising
additional funds through equity or debt financing and continuing to
achieve profitable operations. The F.D.I.C. has continued to service
the Company's credit facility. The Company is in discussions with
various financial institutions to replace the line of credit. The
balance outstanding on the line of credit at March 28, 2003, including
accrued interest, amounted to $1,013,222.
On March 6, 2003, the Company contacted the F.D.I.C. regarding their
outstanding loan. The Company paid the accrued interest totaling
$29,275 to avoid being put into a pooling group, which could
ultimately result in the loan being sold. The Company is in
discussions with various financial institutions to replace its line of
credit. There is no guarantee that these discussions will secure a new
line of credit. In the interim, the F.D.I.C. has continued to service
the Company's credit facility, although it is uncertain at this time
what the ultimate disposition of the facility will be.
6
7. SEGMENT AND GEOGRAPHIC INFORMATION
The Company views its operations as principally two segments. The
first is manufacturing and distribution of plastic components. The
second is outsourcing of manufacturing. The segments share a common
workforce and office headquarters, which preclude an allocation of all
overhead components. Overhead items that are specifically identifiable
to a particular segment are applied to such segment. The Company's
segment information for the three months ended March 28, 2003 and
March 29, 2002 are as follows:
Manufacturing Corporate
and and
Distribution Outsourcing Other Consolidated
---------------- -------------- -------------- ----------------
Three Months ended March 28, 2003
Sales to Unaffiliated Customers $ 2,462,292 $ 637,615 $ - $ 3,099,907
Cost of Goods Sold 1,525,649 467,796 - 1,993,445
Gross Profit 936,643 169,819 - 1,106,462
Gross Profit % 38.0% 26.6% - 35.7%
Interest and Other Income 2,300 - - 2,300
Interest and Other Expenses 20,306 2,345 13,387 36,038
Depreciation and Amortization 37,932 12,030 3,648 53,610
Segment Assets 2,672,843 981,408 184,307 3,838,558
Long Lived Asset Expenditures 10,424 - - 10,424
Segment Net Income (Loss) $ 356,204 $ (117,822) $ (34,286) $ 204,096
Manufacturing Corporate
and and
Distribution Outsourcing Other Consolidated
---------------- -------------- -------------- ----------------
Three Months ended March 29, 2002
Sales to Unaffiliated Customers $ 1,789,896 $ 521,967 $ 1,500 $ 2,313,363
Cost of Goods Sold 1,193,798 399,327 63 1,593,188
Gross Profit 596,098 122,640 1,437 720,175
Gross Profit % 33.3% 23.5% 95.8% 31.1%
Interest Income and Other Income - 2,063 - 2,063
Interest and Other Expenses 5,482 2,801 11,817 20,100
Depreciation and Amortization 36,881 11,601 3,648 52,130
Segment Assets 2,440,838 990,248 103,589 3,534,675
Long Lived Asset Expenditures 8,748 - $ - 8,748
Segment Net Income (Loss) $ 29,392 $ (199,790) $ (89,183) $ (259,581)
7
8. INCOME TAXES
No provision has been made for federal and state income taxes for the
three months ended March 28, 2003 as a result of the utilization of
the Company's net operating loss carryforwards. The Federal and State
tax benefit resulting from the utilization of the operating loss
carryforwards approximates $90,000.
The Company has a net operating loss carryforward for tax purposes
totaling approximately $6,675,000 at March 28, 2003 expiring between
the years 2011 through 2023. Tax benefits from utilization of NOL
carryforwards, will be recorded at such time, and to such extent, they
are assured beyond a reasonable doubt. As such, the resulting
estimated deferred tax assets of approximately $2,241,000 as of March
28, 2003, has been offset by a corresponding valuation allowance.
9. INCOME PER SHARE
The following table sets forth the components used in the computation
of basic and diluted earnings per share:
Three Months Ended
---------------------------------------
March 28, 2003 March 29, 2002
----------------- -----------------
Numerator:
Net income (loss) $ 204,096 $ (259,581)
================= =================
Denominator:
Weighted average shares 3,777,384 3,760,934
----------------- -----------------
Effect of dilutive securities:
Employee stock options 294,199 -
Stock warrants 19,123 -
----------------- -----------------
313,322 -
----------------- -----------------
Denominator for diluted earnings per
share-adjusted weighted average
shares after assumed conversions 4,090,706 3,760,934
================= =================
8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
RESULTS OF OPERATIONS
For the three months ended March 28, 2003 compared to the three months ended
March 27, 2002.
NET SALES
Net sales for the three month-period ended March 28, 2003 were $3,099,907
compared to sales of $2,313,363 for the three-month period ended March 29, 2002.
The increase of $785,544 or 34.0% was attributed to an increase of orders
through the contract with the Defense Supply Center in Philadelphia (DSCP), and
increase of sales for our subsidiary International Plastic Technologies, Inc.
("IPT").
GROSS PROFITS
The Company realized an overall gross profit margin percentage for the
three-month period ended March 28, 2003 of 35.7%, as compared to 31.1%
experienced during the three month period ended March 29, 2002. This increase of
4.6%, can be attributed to the increase in sales prices to the Defense Supply
Center of Philadelphia (DSCP) as well as an increase due to more commercial,
non-military product being manufactured in China for our subsidiary Electronic
Hardware Corp. ("EHC").
OPERATING EXPENSES
Selling and Shipping
Selling and shipping expenses for the three-months ended March 28, 2003 were
$195,768 as compared to $222,976 for the three-months ended March 29, 2002. The
decrease of $27,208 or 12.2% for the period is primarily attributable to a
decrease in consulting fees and advertising expenses.
General, and Administrative Expenses
General and administrative expenses for the three months ended March 28, 2003
were $672,860 as compared to $716,191 for the three months ended March 29, 2002.
The decrease of $43,331 or 6.1% for the period is primarily attributable to a
decrease in staff.
LIQUIDITY AND CAPITAL RESOURCES
The Company's liquidity needs arise from working capital requirements, capital
expenditures, and principal and interest payments. Historically, the Company's
primary source of liquidity has been cash flow generated internally from
operations. Because the cash flow was insufficient to meet the Company's cash
needs, the Company supplemented its cash needs with bank borrowings and long
term equipment financing. The Company's cash decreased to $379,713 on March 28,
2003 from $456,727 on December 29, 2002.
9
Cash flow used in operating activities was $13,440 for the three-months ended
March 28, 2003 on net income of $204,096. The increase in accounts receivable is
the result of increased sales to the Defense Supply Center of Philadelphia
(DSCP). The decrease in inventory is the result of a combination of a write-off
of obsolete inventory and a reduction of inventory in transit from China. The
decrease in prepaid expenses and other current assets is a result of the
expensing of deposits placed and costs associated with tooling and production
orders in process that were completed at March 28, 2003. Cash used in investing
activities for the three-month period ended March 28, 2003 was $10,424, which
consisted of cash for the purchase of machinery and equipment.
Net cash used in financing activities for the three-month period ended March 28,
2003 was $53,150. Cash of $41,324 was used to make principal payments on loans
payable and $11,826 was used to make capital lease repayments.
The bank that provided the Company with its revolving line of credit was closed
by the Connecticut Banking Department on June 27, 2002, with the F.D.I.C.
assuming receivership of the failed bank. The balance outstanding on the line of
credit at March 28, 2003, including accrued interest, amounted to $1,013,222. In
the interim, the F.D.I.C. has continued to service the Company's credit
facility, although it is uncertain at this time what the ultimate disposition of
the facility will be.
On March 6, 2003, the Company contacted the F.D.I.C. regarding their outstanding
loan. The Company paid the accrued interest totaling $29,275 to avoid being
placed into a pooling group, which could ultimately result in the loan being
sold.
The Company is in discussions with various financial institutions to replace the
line of credit. In March 2003, the Company contacted a broker who specializes in
obtaining lines of credit. While there is no guarantee that this engagement will
secure a new line of credit, it is the opinion of management that the Company
will be able to obtain a new line of credit.
In the event that the Company is unable to find other sources of credit or
working capital, operations of the Company would have to be limited.
The auditors' report on the Company's financial statements, in our annual Form
10-KSB, included an explanatory paragraph about the Company's ability to
continue as a going concern. The Company expects that current cash flows from
operations will be sufficient to fund its operations and meet its debt service
obligation for the remainder of the fiscal year ending December 26, 2003.
However, as of May 19, 2003, the Company is in default of a financial covenant
and had approximately $1,000,000 outstanding on its bank line of credit, and the
F.D.I.C. has capped the advances at this amount. In addition, management is
seeking to raise additional funds through additional debt and/or equity
financing, although there is no assurance it will be successful in securing such
financing. If the Company is not successful, the Company may need to make
certain reductions in its operations to maximize its available cash resources
until additional funds can be raised. These matters raise substantial doubt
about the Company's ability to continue in business as a going concern.
10
CAUTIONARY FACTORS REGARDING FUTURE OPERATING RESULTS
The matters discussed in this form 10-QSB other than historical material are
forward-looking statements. Any such forward-looking statements are based on
current expectations of future events and are subject to risks and uncertainties
which could cause actual results to vary materially from those indicated. Actual
results could differ due to a number of factors, including negative developments
relating to unforeseen order cancellations or push outs, the Company's strategic
relationships, the impact of intense competition and changes in our industry.
The Company assumes no obligation to update any forward-looking statements as a
result of new information or future events or developments.
ITEM 3. Controls and Procedures
The Company's Chief Executive Officer and Chief Financial Officer have evaluated
the Company's disclosure controls and procedures (as such term is defined in
Rule 13a-14 (c) under the Exchange Act) as of a date within 90 days of the date
of this Form 10-QSB. Based upon such evaluation, the Company's Chief Executive
Officer and Chief Financial Officer have concluded that such controls and
procedures are effective to ensure that the information required to be disclosed
by the Company in the reports it files under Exchange Act is gathered, analyzed
and disclosed with adequate timeliness. There have been no significant changes
in the Company's internal controls subsequent to the date of the evaluation
described above.
11
PART II OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
The bank that provided the Company with its revolving line of credit was closed
by the Connecticut Banking Department on June 27, 2002, with the F.D.I.C.
assuming receivership of the failed bank. The balance outstanding on the line of
credit at March 28, 2003, including accrued interest, amounted to $1,013,222. In
the interim, the F.D.I.C. has continued to service the Company's credit
facility, although it is uncertain at this time what the ultimate disposition of
the facility will be.
On March 6, 2003, the Company contacted the F.D.I.C. regarding their outstanding
loan. The Company paid the accrued interest totaling $29,275 to avoid being
placed into a pooling group, which could ultimately result in the loan being
sold.
The Company is in discussions with various financial institutions to replace the
line of credit. In March 2003, the Company contracted a broker who specializes
in obtaining lines of credit. While there is no guarantee that this engagement
will secure a new line of credit, it is the opinion of management that the
Company will be able to obtain a new line of credit.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 5. OTHER INFORMATION
On May 8, 2003, the Company engaged the services of Marcum & Kliegman LLP as the
auditor of record.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibits:
99.1
99.2
99.3
Reports on 8-K:
No reports were filed on Form 8K during the quarter ended March 28, 2003.
12
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.
INTERNATIONAL SMART SOURCING, INC.
May 19, 2003 /S/David Kassel
- ----------------- ---------------------------
Date David Kassel
Chairman and Chief Executive Officer
May 19, 2003 /S/David Hale
- ----------------- --------------------------------
Date David Hale
Acting Chief Financial Officer