| Connectsoft Communications Corporation | |||
| Proposed Ticker: | CSFT | 11130 N.E. 33rd Place, Suite 250 | |
| Exchange: | NASDAQ-National Market | Bellevue, WA 98004 | |
| Industry: | Manufacturing (SIC Code 3661) | (206) 827-6467 | |
| # of Employees: | 21 | ||
| Type of Shares: | Common Shares | Filing Date: | 9/4/97 | |
| U.S. Shares Filed: | 0 | Filing Price: | - | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $30,480,240 | |
| Primary Shares: | 0 | Expenses: | $1,320,000 | |
| Secondary Shares: | 0 | Shares Out After: |
| Manager | Tier | Phone |
| Hampshire Securities Corporation | Lead Manager | (212) 641-3624 |
| Issuer's Law Firm: | Greenberg Traurig Hoffman Lipoff Rosen & Quentel |
| Bank's Law Firm: | Squadron, Ellenoff, Plesent, Sheinfeld & Sorkin |
| Auditor: | Price Waterhouse |
| Registrar/Transfer Agent: | Continental Stock Transfer & Trust Co |
Dollar amounts in U.S. millions except for per share data | |||||
| 11 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 7/31/97 | 7/31/97 | ||||
| Revenue: | $0.00 | Assets: | $0.38 | ||
| Net Income: | -$2.83 | Curr Assets: | |||
| EPS: | -$0.94 | Liabilities: | $2.21 | ||
| Prior EPS: | -$1.76 | Curr Liabilities: | $0.33 | ||
| Cash Flow/Oper: | $2.14 | Equity: | -$1.83 | ||
| Cash Flow/Fin: | -$0.38 | Cash: | |||
| Cash Flow/Inv: | Working Cap: | -$2.21 | |||
| Business Description |
| The company is developing a unified, intelligent communications system which it is marketing under the name "FreeAgent". FreeAgent is designed to unify communications into a single message box, allow access to that message box through any telephone or PC FreeAgent is being developed to integrate e-mail, voice mail, facsimile, paging, content from the World Wide Web (the "Web") and potentially any other digital data from the Internet, enterprise intranets, private branch exchange ("PBX") telephone systems and the public switched telephone network ("PSTN"). FreeAgent is capable of applying advanced media transformation processes (such as text-to-speech conversion), advanced user interface technologies (such as limited speech recognition) and specified agentry processes (such as automated message and information monitoring), so that a person can send or receive a message between most currently used communications media, using any wireline or wireless telephone on PBX or PSTN systems or any personal computer ("PC") on the Internet or an intranet. For example, e-mail sent from a PC can be heard as voice mail on a telephone and voice mail sent by telephone can be received and listened to on a computer. Similarly, content on Web pages can be listened to on a telephone, as well as read on a computer. FreeAgent was previewed at the Internet World Summer trade show in July 1997 and is expected to be commercially released in December 1997. As part of the continuing development of FreeAgent, the Company intends to incorporate natural language understanding (the ability to convert the spoken word to computer commands) and additional agentry functions (such as automated notification of urgent messages or of changes in stock market prices, or the ability to complete simple transactions such as making airline reservations) into the system. Such changes are being designed to further facilitate the command and control of the FreeAgent system by telephone and to further enhance FreeAgent's functionality and services. |
| Competition |
| Many of the companies with which the Company competes, or which are expected to offer products or services based on alternatives to the Company's technologies, have substantially greater financial resources, research and development capabilities, sales and marketing staffs and distribution channels than the Company. There can be no assurance that products incorporating the Company's technologies will achieve sufficient quality, functionality or cost-effectiveness to compete with existing or future alternatives. Furthermore, there can be no assurance that the Company's competitors will not succeed in developingproducts or services which are more effective and cost less than those based on the Company's or its licensors' technologies, or which render the Company's or its licensors' technologies obsolete. The Company believes that its ability to compete depends on factors both within and outside its control. The principal competitive factors affecting the market for the Company's services and technologies are the availability of the Company's or its licensors' technologies and the products and services of the Company, its licensees and their competitors; the quality, ease of use, performance, architecture and functionality of the products and services developed and marketed by the Company and its licensees; the effectiveness of the Company and its licensees in marketing and distributing their products and services and price. There can be no assurance that the Company will be successful in the face of increasing competition from new technologies or products introduced by existing competitors or by new companies entering the market. |
| Business Plan |
| The company's objective is to become a leader in the development of unified, intelligent communications systems. The company intends to pursue this objective by: (I) Accelerating Its Marketing And Sales Activities, In Both The United States And Abroad, (ii) Licensing Additional Third-Party Software, (iii) Broadening The Company's Engineering Efforts To Develop Additional Capabilities and (iv) Pursuing Strategic Acquisitions Of Selected Businesses and Technologies To Add Value. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to expand marketing and sales activities of FreeAgent in the U.S. and abroad, to enhance the company's ongoing FreeAgent research and development program, including licensing of complementary third party software, to repay indebtedness to AUGI, the company's sole shareholder, and for additional general corporate purposes including potential acquisitions of complementary businesses and technologies. |
| Name of Shareholder | % Owned Before | % Owned After |
| American United Global, Inc. | 100.00% |
| Officer Name | Title | Age |
| Robert M. Rubin | Chairman of the Board of Directors | 57 |
| Howard B. Katz | Executive Vice President, Treasurer and Director | 54 |
| Robert Marcus | President, Chief Executive Officer and Director | 35 |
| Alan Mitchell, Ph.D. | Vice President of Business Development | 53 |
| David Dolson | Vice President of Marketing | 58 |
| Daniel Boerner | Vice President of Product Development | 32 |
| Stephen Oroszlan | Vice President of Sales | 35 |