I/net, Inc (INNI) - Description of business
I/NET, Inc. (the "Company" or "I/NET") was organized under the laws of the state of Delaware in 1986 under the name of a predecessor corporation. The Company registered its initial public offering with the Securities and Exchange Commission in 1987. The Company provides professional services in the areas of software development and Internet-related consulting for businesses. I/NET also developed and marketed computer software for mid-range computers, including International Business Machine's (IBM) AS/400 model.
The Company has a wholly owned subsidiary, I/NET, Inc. (a Michigan corporation).
I/NETs business consisted of supporting software licenses to various customers employing the IBM AS/400 iSeries computers. The business has been declining over the years, and there are no plans to replace this business.
Subsequent to December 31, 2005, the Company accepted an offer from Tryant, LLC for the acquisition of the Company.
Sources and Availability of Raw Materials and Principal Suppliers
Developing software requires few tangible raw materials. I/NET consistently hired the best talent available. There can be no assurances that I/NET will continue to be able to attract and retain qualified personnel. The Company no longer has any employees as of December 31, 2005.
Dependence on Major Customers
The Company provided Internet products, contract development services, web site consulting services and support services to two major customers, IBM and NASA. In June 2002, the IBM contracts were terminated. In November 2004 the NASA contracts terminated.
IBM related contracts accounted for 20% of revenue in 2002, and 0% in subsequent years.
For 2004, 2003 and 2002, NASA contract revenue accounted for approximately 71%, 77%, and 57% of the Companys revenue, respectively.
In 2003, one additional customer accounted for 11% of revenue.
In 2005, two customers accounted for 56% of revenues, with various other customers accounting for the balance.
Patents and Trademarks
Need for Any Government Approval of Principal Products or Services
The performance of services and the supply of products by the Company are not subject to governmental approval or unusual regulation except as they relate to strong encrypted software products, which are under government regulation.
Effect of Existing or Probable Governmental Regulations on the Business
No present governmental regulations have any adverse significant impact on the present or contemplated business operations of the Company, and no such probable governmental regulations are anticipated to have any adverse effect. However, there are numerous proposals pending to regulate the Internet. The Company cannot predict the impact that the adoption of any of these proposals could have on the Company's business.
Research and Development Activities
There were minimal research and development costs incurred by the Company during the calendar years ended December 31, 2005, 2004, 2003 and 2002.
Cost and Effects of Compliance with Environmental Laws
There are no foreseeable adverse effects on the Company's present or contemplated business operations resulting from environmental laws, rules, or regulations.
As of December 31, 2002, the Company had 7 full time employees.
As of December 31, 2003, the Company had 4 full time employees.
As of December 31, 2004, the Company had 3 full time employees.
As of December 31, 2005, the Company had 0 full time employees.
We file annual, quarterly and special reports, proxy statements and other information with the SEC. We have not filed quarterly or annual reports with the SEC since the quarter ended September 30, 2002. This document incorporates audited financial statements for the years ended December 31, 2005, 2004, 2003, and 2002 and unaudited quarterly financial information for each of the periods covered. Our SEC filings are available to the public over the SECs website at http://www.sec.gov . You may also read and copy any document we file at the SECs Public Reference Room at:
Public Reference Section
Securities and Exchange Commission
100 F. Street, N.E., Washington D.C. 20549
Please call the SEC at (800) SEC-0330 for further information on the operating rules and procedures for the public reference room.