U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PUSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the QUARTERLY PERIOD ended MARCH 31, 2005
OR
[ ] TRANSITION REPORT PUSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM __________________ TO ________________________
Commission File Number: 000-29217
ACCESSPOINT CORPORATION
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(Name of Small Business Issuer in its Charter)
Nevada 95-4721385
---------------------------------------- ------------------------------------
(State or Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
3030 S. VALLEY BLVD. SUITE 190
LAS VEGAS, NEVADA, 89102 89102
---------------------------------------- ------------------------------------
(Address of Principle Executive Offices) (Zip Code)
702 809 0206
-------------------------------------------------------------
(Issuer's Telephone Number, Including Area Code)
Securities Registered Pursuant to Section 12(b) of the Exchange Act:
None
Securities Registered Pursuant to Section 12(g) of the Exchange Act:
Common Stock, $0.001 Par Value
The number of the Company's shares of Common Stock outstanding as of March
31, 2005 was 18,971,230.
Transitional Small Business Disclosure Format (check one): Yes [ ] No [ X ]
Accesspoint Corporation
Form 10-QSB QUARTERLY Report
FOR THE FIRST QUARTER ENDED MARCH 31, 2005
TABLE OF CONTENTS
Forward-Looking Statements
PART I
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis or Plan of Operation
Item 3. Controls and Procedures
PART II
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
Signatures
2
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Form 10-QSB contains forward-looking statements about the business,
financial condition and prospects of the Company that reflect assumptions made
by management and management's beliefs based on information currently available
to it. We can give no assurance that the expectations indicated by such
forward-looking statements will be realized. If any of management's assumptions
should prove incorrect, or if any of the risks and uncertainties underlying such
expectations should materialize, the Company's actual results may differ
materially from those indicated by the forward-looking statements.
The key factors that are not within the Company's control and that may have
a direct bearing on operating results include, but are not limited to, the
acceptance by customers of the Company's products and services, the Company's
ability to develop new products and services cost-effectively, the ability of
the Company to raise capital in the future, the development by competitors of
products or services using improved or alternative technology, the retention of
key employees and general economic conditions.
There may be other risks and circumstances that management is unable to
predict. When used in this Form 10-QSB, words such as, "believes," "expects,"
"intends," "plans," "anticipates" "estimates" and similar expressions are
intended to identify forward-looking statements, although there may be certain
forward-looking statements not accompanied by such expressions. All
forward-looking statements are intended to be covered by the safe harbor created
by Section 21E of the Securities Exchange Act of 1934.
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ACCESSPOINT CORPORATION
(A DEVELOPMENT STAGE COMPANY)
FINANCIAL STATEMENTS
MARCH 31, 2005
TABLE OF CONTENTS
Balance Sheets 4
Statements of Operations 5
Statements of Cash Flows 6
Notes to Financial Statements 7-9
3
ACCESSPOINT CORPORATION
BALANCE SHEETS
(unaudited)
ASSETS
------
March 31, December 31,
2005 2004
------------- -------------
Current Assets
Cash $ 39,812 $ 6,277
Accounts receivable, net of allowance
for doubtful accounts $19,574 and $0
for March 31, 2005 and December 31,
2004, respectively 64,566 155,978
Chase receivable 3,560 --
------------- -------------
Total Current Assets 107,938 162,255
------------- -------------
Other Assets
Note receivable - Merchant Billing
Services 250,000 --
Chase clearing account 55,624 --
Deposits -- 255,001
------------- -------------
Total Other Assets 305,624 255,001
------------- -------------
Total Assets $ 413,562 $ 417,256
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities
Accounts payable $ 642,027 $ 581,047
Accrued liabilities 524,820 565,070
Bentley lawsuit settlement 465,000 480,000
Merchant loss reserve 2,778 2,778
Capitalized leases 475,324 500,074
Notes payable 165,000 165,000
Related party notes and payables 205,795 113,545
------------- -------------
Total Current Liabilities 2,480,744 2,407,514
------------- -------------
Stockholders' Equity
Preferred Stock, $.001 par value,
5,000,000 shares authorized, 543,600
shares issued and outstanding at March 31,
2005 and December 31, 2004, respectively 543 543
Common stock, $.001 par value, 25,000,000
shares authorized, 18,971,230 issued and
outstanding at March 31, 2005 and December
31, 2004, respectively 18,971 18,971
Additional paid in capital 14,619,710 14,619,710
Accumulated (deficit) (16,706,406) (16,629,482)
------------- -------------
Total Stockholders' (Deficit) (2,067,182) (1,990,258)
------------- -------------
Total liabilities and
Stockholders' Equity $ 413,562 $ 417,256
============= =============
Refer to notes to the financial statements
4
ACCESSPOINT CORPORATION
STATEMENT OF OPERATIONS
(UNAUDITED)
Three Months Ended
-------------------------------
March 31, March 31,
2005 2004
Income from discontinued operations:
Sales, net $ 521,276 $ 2,675,779
Cost of Sales 392,037 1,966,561
------------- -------------
Gross Profit 129,239 709,218
Management Fees 66,500 --
Marketing expense 3,185 --
Selling Expenses -- 5,961
General and administrative expenses 136,552 352,007
------------- -------------
Income ( loss ) from discontinued operations (76,998) 351,250
------------- -------------
Other ( Income ) Expense :
Forgiveness of debt -- (436,032)
Interest income (75) (7,549)
Penalties -- 27,603
Amortization of deferred financing costs -- 128,473
Miscellaneous expense -- 45,000
Bad Debt -- --
Interest expense -- 61,895
------------- -------------
Total other ( Income ) expense (75) (180,610)
------------- -------------
Income ( Loss ) before income taxes (76,923) 531,860
Provision for income taxes -- --
------------- -------------
Net income ( Loss ) from discontinued
operations $ (76,923) $ 531,860
============= =============
Net income ( loss ) per share from
discontinued operations - Basic and
diluted $ (0.00) $ 0.03
============= =============
Weighted average number of shares
Basic and diluted 18,971,230 18,971,230
============= =============
Refer to notes to the financial statements
5
ACCESSPOINT CORPORATION
STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
------------------
March 31, March 31,
2005 2004
--------- ---------
CASH FLOWS FROM DISCONTINUED OPERATIONS,
Net (loss) income $ (76,923) $ 531,860
Adjustments to reconcile net income (loss) to net
cash used or provided by operating activities:
Amortization -- 128,473
Depreciation -- 19,036
Changes in assets and liabilities:
Decrease (increase) in receivables 87,852 (127,955)
Increase in other current assets -- (4,555)
Increase in clearing account (55,624) (26,996)
Decrease (increase) in prepaid expenses 5,001 (19,242)
(Decrease) increase in accounts
payable and accrued expenses 20,729 (140,943)
Decrease in accrued payroll taxes -- (424,634)
Increase in bank overdraft -- 46,138
--------- ---------
Total adjustments 57,958 (550,678)
--------- ---------
Net cash provided by (used) in
discontinued operations (18,965) (18,818)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on capital leases (24,750) (7,270)
Payments on line of credit -- (17,438)
Increase in notes payable -- 15,133
Payment on settled lawsuit (15,000) --
Loans from related parties 92,250 --
--------- ---------
Net cash used in financing
activities (52,500) (9,575)
--------- ---------
Net change in cash 33,535 (28,393)
--------- ---------
Cash at beginning of period 6,277 28,393
--------- ---------
Cash at end of period $ 39,812 $ --
========= =========
Refer to notes to the financial statements
6
ACCESSPOINT CORPORATION
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004
NOTE A - NATURE OF OPERATIONS
--------------------
Accesspoint Corporation (subsequently referred to as "Accesspoint", the
"Company" or "We") was incorporated as Accesspoint Corporation in Nevada in
1995.
Until February 2005 the Company's business consisted of processing
electronic and credit card payments. In accordance with an agreement dated
January 1, 2005 that took effect as of February 28, 2005, the Company sold its
Merchant Portfolio, its remaining source of income, to Merchants Billing
Services, Inc. for $1,564,000, the amount owed to Merchants Billing Services,
Inc. and Ameropa, Inc.
Mr. Barber is the principal owner of Merchants Billing Services, Inc.
and Ameropa, Inc. ("Ameropa"). Ameropa is a Bahamas corporation. Ameropa owned
two Bermuda corporations, Internet Online Services, Inc. ("IOS") and Network
Integrated Systems, Ltd. ("NIS"). Mr. Barber and two colleagues agreed to
provide funding to Accesspoint. Although IOS and Ameropa advanced funds from
time to time. The amount owed Merchants Billing Services, Inc. and Ameropa at
December 31, 2004 was $1,564,000. In addition, the Company loaned Merchant
Billing Services $250,000. The loan is non-interest bearing and due on demand.
During the year 2004 additional books of business had been sold in
order to raise funds to pay off debt.
Since December 31, 2004 the Company is effectively in a "wind down"
mode of operations. The accompanying financials statements reflect that all
revenues and expenses are now from discontinued operations. Eventually, after
completing the wind down of operations, the Board of Directors will begin the
process of looking for possible merger or acquisition opportunities. At that
time, the Company will be accounted for as being a development stage company.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
------------------------------------------
Unaudited Interim Financial Information
---------------------------------------
The accompanying financial statements have been prepared by Accesspoint
Corporation, ("Accesspoint", the "Company" or "We") pursuant to the rules and
regulations of the Securities and Exchange Commission (the "SEC") Form 10-QSB
and Item 310 of regulation S-B, and generally accepted accounting principles for
interim financial reporting. These financial statements are unaudited and, in
the opinion of management, include all adjustments (consisting of normal
recurring adjustments and accruals) necessary for a fair presentation of the
balance sheets, operations results, and cash flows for the periods presented.
Operating results for the three months ended March 31, 2005 are not necessarily
indicative of the results that may be expected for the year ending December 31,
2005, or any future period. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with generally
accepted accounting policies have been omitted in accordance with the rules and
regulations of the SEC. These financial statements should be read in conjunction
with the audited financial statements and accompanying notes, included in the
Company's Annual Report for the year ended December 31, 2004.
NOTE C - GOING CONCERN
-------------
The accompanying financial statements, which have been prepared in
conformity with Accounting principles generally accepted in the United States of
America, contemplates the continuation of the Company as a going concern.
The Company sold off and discontinued its business in February 2005 and
became a shell company with no operations and limited financial and other
resources. Such matters raise substantial doubt about the Company's ability to
continue as a going concern.
Management's plans with respect to these conditions are to search for
operating opportunities through business combinations or mergers. In the
interim, the Company will require minimal overhead, and key administrative and
management functions will be provided by stockholders. Accordingly, the
accompanying financials statements have been presented under the assumption that
the Company will continue as a going concern.
7
NOTE D - LITIGATION AND CONTINGENCIES
----------------------------
The Company is subject to various claims and legal proceedings covering
a wide range of matters that arise in the ordinary course of its business
activities. Listed below are only those matters considered to be material to the
Company by management and its counsel.
CITICORP - During 2001 the Company vacated office facilities it had
leased under an operating lease agreement in Chicago, Illinois. The
lessor subsequently filed suit against the Company for the remaining
amount of unpaid rent and other various expenses. A judgment was filed
against the Company in the amount of $95,000. As of December 31, 2004
the Company has accrued for the liability in full on its Balance Sheet.
No payments have been made.
BENTLEY PROMISSORY NOTES - Various family trusts related to James W.
Bentley, a former Director of the Company, have filed three related
actions seeking to collect in excess of $500,000 in promissory notes
allegedly due. These cases have been consolidated with the case of
Bentley v. Barber, et al (see below) and have been settled as of August
30, 2004.
MERCHANTSWAREHOUSE.COM - This is a claim against PSI for breach of an
independent sales agent agreement. The claim is disputed. The matter
was submitted to arbitration and was heard by the arbitrator. The
arbitrator made an interim award of $296,720 and denied the Company's
counterclaim. The Company is directed to pay the agent residuals
according to the terms of the Company's agreement with the agent. The
Company has made all payments to the agent since the date of the award.
On November 7, 2003, Merchantswarehouse.com obtained a judgment
consistent with the arbitrator's award. The Company is presently
assessing the advisability of an appeal. The amount of the award has
been accrued.
CIT COMMUNICATIONS CO. ("CIT") - CIT, an equipment lessor, claims that
we defaulted on an equipment lease. A request for entry of default was
submitted on July 8, 2004. It is expected that a default judgment
against the Company will be entered soon. The total amount of any
potential judgment for the value of the equipment has been accrued.
FOLEY HOAG - This is a claim against PSI by a Boston law firm which
worked on the MerchantWarehouse.com case for fees it says remain
unpaid. The firm is seeking $48,000 in principal, plus interest, fees
and costs. The firm has advised the Company that it has filed suit in
Massachusetts, but the Company has yet to be served.
GLOBAL ATTORNEYS NETWORK CO. - This is an action filed on behalf of an
equipment lessor on a defaulted lease. In April 2003 the matter was
settled for $16,900. This amount has been accrued. No payments have
been made.
FOSTER TEPPER - This is an action recently brought by a former attorney
for the Company for approximately $63,000 in legal fees, which are
allegedly due and payable. The Company has accrued $37,000 for this
matter. Trial is scheduled to start August 30, 2004
ACCESS HOLDINGS LIMITED PARTNERSHIP - This is a lawsuit brought on
behalf of two holders of Company stock who claim the Company has
violated a prior settlement agreement and that they are therefore
entitled to the return of approximately 4.1 million shares of Company
stock, which they had previously surrendered to the Company per that
agreement. This case has been consolidated with the case of Bentley v.
Barber, et al (see below) and was settled on August 30, 2004.
8
BENTLEY V. WILLIAM R. BARBER, ET AL. - On March 22, 2002, James Bentley
("Plaintiff"), a shareholder of the Company, filed a shareholder derivative
lawsuit against the Company and several individual defendants. The parties have
settled this lawsuit as of August 30, 2004. The settlement amount reached is for
$750,000, discountable to $500,000 if the Company pays Bentleys in strict
accordance to the following schedule: $250,000 paid from the Chase Merchant
Services deposit and $5,000 monthly, beginning August 30, 2004 thru November 30,
2005 with a balloon payment of $170,000 due on December 30, 2005. The terms of
the settlement include the dismissal of all lawsuits related to the Bentleys,
recognition of the $500,000 in promissory notes payable to Bentleys previously
converted in the June 26, 2002 settlement agreement (included in the $750,000
settlement amount), and in consideration for the forgiveness of the NIS line of
credit due to Ameropa, the Bentleys agree to release any and all security,
restrictions and limitations on their stock and cause the issuance of 52% of the
Company's stock to Barber or his designate.
ROYCAP - As of September 30, 2003 the Company was in default on its
loan agreement with Roycap for repayment of a $450,000 loan, plus accrued
interest, which was due on October 16, 2001. In June 2002, Roycap filed a formal
suit on its claim. In the second quarter of 2002, the Company entered into a
settlement agreement wherein it stipulated to entry of a $730,000 judgment.
Subsequently, in March 2004, Roycap agreed to accept a lump sum payment of
$250,000 and a promissory note for $50,000, payable in installments of $2,000
per month. The lump sum was paid, but the note is in default.
MOCERI LEASING CO. - this is an action by an equipment lessor on a
defaulted lease. In August 2003, the Company entered into a structured
settlement agreement for a total payout of $30,000 payable in 20 installments
through April of 2005. The Company is no longer current on these payments.
BAS MULDER - This is a lawsuit filed by the former owner and employee
of Black Sun Graphics, Inc. ("BSG"), claiming damages in excess of $430,000
related to the purchase of BSG by the Company. During 2003, the Company entered
into a structured settlement agreement calling for the payments totaling $45,000
payable over 20 months and was making payments until October 2004. The amount
owed as of December 31, 2004 is included in accrued liabilities.
AMERICAN CAPITAL GROUP - This is an action by an equipment lessor on a
defaulted lease. A judgment was filed against the Company on December 28, 2004
in the amount of $73,578, which is included in accrued liabilities at December
31, 2004. No payments have been made.
The company has ceased accruing interest expense on its litigation
settlements since there is significant doubt as to whether the Company will ever
pay such interest. Such amounts will only be included when such payments become
measurable and payment becomes probable. Total unrecorded interest expense at
March 31, 2005 was approximately $14,000.
NOTE E - RELATED PARTY TRANSACTIONS
--------------------------
The Company have in the past entered into a number of relationships
that fit the definition provided by Statement of Financial Accounting Standards
No. 57, "Related Party Disclosures". An entity that can control or significantly
influence the management or operating policies of another entity to the extent
one of the entities may be prevented from pursuing its own interests.
However as of March 31, 2005, there were no related party relationships
existing between the Company, its shareholders, officers and directors except
for loans from related party shareholders and a receivable of $250,000 due to
Accesspoint from Merchants Billing Services, as part of the merchant portfolio
sale transaction.
NOTE F - CAPITAL STOCK
-------------
The Board of Directors approved an increase in the number of authorized
shares of the Company's $0.001 par value common stock from 25,000,000 shares to
50,000,000 shares. The articles of incorporation have not yet been changed to
reflect this increase in authorized shares.
9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction
with the financial statements and related notes contained elsewhere in this
document. The discussion contained herein relates to the financial statements,
which have been prepared in accordance with GAAP.
THE DISCUSSION IN THIS SECTION AND OTHER PARTS OF THIS REGISTRATION STATEMENT
CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS SUCH AS STATEMENTS OF THE COMPANY'S
PLANS, OBJECTIVES, EXPECTATIONS AND INTENTIONS. THESE STATEMENTS INVOLVE RISKS
AND UNCERTAINTIES. THEY ARE MADE AS OF THE DATE OF THIS REPORT, AND THE COMPANY
ASSUMES NO OBLIGATION TO UPDATE THEM.
RESULTS OF OPERATIONS
---------------------
The Company's business is currently winding down its operations which
consists of processing electronic and credit card payments. In accordance with
an agreement dated January 1, 2005 and amended February 28, 2005 the Company
sold its Merchant Portfolio, its only remaining source of income, to Merchants
Billing Services, Inc. for $1,500,000, which is the amount owed to Merchants
Billing Services, Inc. and Ameropa, Inc.
As stated in Note A to the financial statements, the Company is
currently in a "wind down" mode of operations. The financial statements reflect
that all income and expense incurred since December 31, 2004 is from
discontinued operations. The Board of Directors has not yet decided on a future
course of action for the Company. Eventually the Board of Directors will begin
the process of looking for a possible merger or acquisition target. When this
process begins, the Company will then be accounted for as being in a development
stage.
A. RESULTS OF DISCONTINUED OPERATIONS
There were no revenues from continuing operations. Discontinued
operations consists of $521,276 in revenues, $392,037 in cost of sales, $66,500
in management fees, $3,185 in marketing fees, and $136,552 in general expenses.
LIQUIDITY AND CAPITAL RESOURCES
--------------------------------
The Company had $39,812 at March 31, 2005, as compared to cash of
$6,277 at December 31, 2004.
The Company had negative working capital at March 31, 2005. The Company
will be entirely dependent upon its limited available financial resources to
implement its business objectives. The Company cannot ascertain with any degree
of certainty the capital requirements for the execution of its business plan. In
the event that the Company's limited financial resources prove to be
insufficient to implement the Company's business plan , the Company may be
required to seek additional financing.
10
ITEM 3. CONTROLS AND PROCEDURES.
Our President and Treasurer/Chief Financial Officer (the "Certifying
Officer") is responsible for establishing and maintaining disclosure controls
and procedures and internal controls and procedures for financial reporting for
the Company. The Certifying Officer has designed such disclosure controls and
procedures and internal controls and procedures for financial reporting to
ensure that material information is made known to him, particularly during the
period in which this report was prepared. The Certifying Officer has evaluated
the effectiveness of the Company's disclosure controls and procedures and
internal controls and procedures for financial reporting as of March 31, 2004
and believes that the Company's disclosure controls and procedures and internal
controls and procedures for financial reporting are effective based on the
required evaluation. There have been no significant changes in internal controls
or in other factors that could significantly affect internal controls subsequent
to the date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS-
The Company is subject to various claims and legal proceedings covering
a wide range of matters that arise in the ordinary course of its
business activities. Listed below are only those matters considered to
be material to the Company by management and its counsel.
CITICORP - During 2001 the Company vacated office facilities it had
leased under an operating lease agreement in Chicago, Illinois. The
lessor subsequently filed suit against the Company for the remaining
amount of unpaid rent and other various expenses. A judgment was filed
against the Company in the amount of $95,000. As of December 31, 2004
the Company has accrued for the liability in full on its Balance Sheet.
No payments have been made.
BENTLEY PROMISSORY NOTES - Various family trusts related to James W.
Bentley, a former Director of the Company, have filed three related
actions seeking to collect in excess of $500,000 in promissory notes
allegedly due. These cases have been consolidated with the case of
Bentley v. Barber, et al (see below) and have been settled as of August
30, 2004.
MERCHANTSWAREHOUSE.COM - This is a claim against PSI for breach of an
independent sales agent agreement. The claim is disputed. The matter
was submitted to arbitration and was heard by the arbitrator. The
arbitrator made an interim award of $296,720 and denied the Company's
counterclaim. The Company is directed to pay the agent residuals
according to the terms of the Company's agreement with the agent. The
Company has made all payments to the agent since the date of the award.
On November 7, 2003, Merchantswarehouse.com obtained a judgment
consistent with the arbitrator's award. The Company is presently
assessing the advisability of an appeal. The amount of the award has
been accrued.
CIT COMMUNICATIONS CO. ("CIT") - CIT, an equipment lessor, claims that
we defaulted on an equipment lease. A request for entry of default was
submitted on 7/8/04. It is expected that a default judgment against the
Company will be entered soon. The total amount of any potential
judgment for the value of the equipment has been accrued.
FOLEY HOAG - This is a claim against PSI by a Boston law firm which
worked on the MerchantWarehouse.com case for fees it says remain
unpaid. The firm is seeking $48,000 in principal, plus interest, fees
and costs. The firm has advised the Company that it has filed suit in
Massachusetts, but the Company has yet to be served.
GLOBAL ATTORNEYS NETWORK CO. - This is an action filed on behalf of an
equipment lessor on a defaulted lease. In April 2003 the matter was
settled for $16,900. This amount has been accrued. No payments have
been made.
11
FOSTER TEPPER - This is an action recently brought by a former attorney
for the Company for approximately $63,000 in legal fees, which are
allegedly due and payable. The Company has accrued $37,000 for this
matter. Trial is scheduled to start August 30, 2004
ACCESS HOLDINGS LIMITED PARTNERSHIP - This is a lawsuit brought on
behalf of two holders of Company stock who claim the Company has
violated a prior settlement agreement and that they are therefore
entitled to the return of approximately 4.1 million shares of Company
stock, which they had previously surrendered to the Company per that
agreement. This case has been consolidated with the case of Bentley v.
Barber, et al (see below) and was settled on August 30, 2004.
BENTLEY V. WILLIAM R. BARBER, ET AL. - On March 22, 2002, James Bentley
("Plaintiff"), a shareholder of the Company, filed a shareholder
derivative lawsuit against the Company and several individual
defendants. The parties have settled this lawsuit as of August 30,
2004. The settlement amount reached is for $750,000, discountable to
$500,000 if the Company pays Bentleys in strict accordance to the
following schedule: $250,000 paid from the Chase Merchant Services
deposit and $5,000 monthly, beginning August 30, 2004 thru November 30,
2005 with a balloon payment of $170,000 due on December 30, 2005. The
terms of the settlement include the dismissal of all lawsuits related
to the Bentleys, recognition of the $500,000 in promissory notes
payable to Bentleys previously converted in the June 26, 2002
settlement agreement (included in the $750,000 settlement amount), and
in consideration for the forgiveness of the NIS line of credit due to
Ameropa, the Bentleys agree to release any and all security,
restrictions and limitations on their stock and cause the issuance of
52% of the Company's stock to Barber or his designate
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matter was submitted to a vote of security holders, through the
solicitation of proxies or otherwise, during the quarter ended March 31,
2005.
ITEM 5. OTHER INFORMATION
None.
12
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits
The following Exhibits are incorporated herein by reference or are filed
with this report as indicated below.
Exhibit No. Description
----------------------------------
21.00 *List of Subsidiaries
* Incorporated by reference from the exhibit to the Annual Report on Form
10-KSB filed by us on April 16, 2001
Exhibit 31 CERTIFICATION OF CHIEF EXECUTIVE OFFICER
AND CHIEF FINANCIAL OFFICER PURSUANT
TO SECTION 302 OF THE SARBANES-OXLEY ACT
Exhibit 32 CERTIFICATION OF CHIEF EXECUTIVE OFFICER
AND CHIEF FINANCIAL OFFICER PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT
b. Reports on Form 8-K. Report dated February 4, 2005 Other events.
Reporting results of shareholders' meeting Dec. 7, 2004.
13
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
Dated: May 18, 2005 ACCESSPOINT CORPORATION
By /S/ MIKE SAVAGE
------------------------------
Mike Savage,
Chief Executive Officer, President
And Chief Financial Officer
Pursuant to the requirements of the Securities Act of 1934, this report
has been signed by the following persons in the capacities and on the dates
indicated:
Signature Title Date
------------------------- ---------------------------------- ---------------
/S/ JOE BYERS Director May 18, 2005
-------------------------
Joe Byers
/S/ MIKE SAVAGE Director May 18, 2005
-------------------------
Mike Savage
14