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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D. C. 20549

 

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FORM 10-QSB

 

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(Mark One)

x	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2004

 

OR

 

¨	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

 

For the transition period from              to             

 

COMMISSION FILE NUMBER: 0-30983

 

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ADVANT-E CORPORATION

(Exact name of small business issuer as specified in its charter)

 

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DELAWARE		88-0339012
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

 

2680 Indian Ripple Rd.

Dayton, Ohio 45440

(Address of principal executive offices)

 

(937) 429-4288

(Issuer’s telephone number)

 

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Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 July 23, 2004 the issuer had 6,244,917 outstanding shares of Common Stock, $.001 Par Value.

 

Transitional Small Business Disclosure Format:    Yes  ¨    No  x

 

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PART I. FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

ADVANT-E CORPORATION AND SUBSIDIARY

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited)

 

		Three Months Ended June 30,						Six Months Ended June 30,
		2004			2003			2004		2003
Revenue		$	851,982		715,108			1,690,617		1,364,486
Cost of revenue			310,264		305,352			604,481		609,164
Gross margin			541,718		409,756			1,086,136		755,322
Marketing, general and administrative expenses			361,375		358,707			713,972		732,818
Operating income			180,343		51,049			372,164		22,504
Interest			—		53,076			2,180		106,362
Income (loss) before taxes			180,343		(2,027	)		369,984		(83,858	)
Income taxes (benefit)			73,000		3,952			148,400		(8,055	)
Net income (loss)		$	107,343		(5,979	)		221,584		(75,803	)
Basic earnings (loss) per common share		$	0.02		0.00			0.04		(0.01	)
Diluted earnings (loss) per common share		$	0.02		0.00			0.03		(0.01	)
Weighted average common shares outstanding			6,244,917		5,661,002			6,244,917		5,661,002
Weighted average common shares outstanding, assuming dilution			6,722,654		5,661,002			6,627,694		5,661,002

 

The accompanying notes are an integral part of the financial statements.

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ADVANT-E CORPORATION AND SUBSIDIARY

CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)

 

		June 30, 2004				December 31, 2003
Assets
Current Assets
Cash and cash equivalents		$	529,578			$	216,448
Accounts receivable, net			244,428				215,895
Prepaid expenses and deposit			9,362				16,187
Deferred income taxes			157,000				266,400
Total current assets			940,368				714,930
Software development costs, net			401,909				481,678
Property and equipment, net			261,202				168,687
Total assets		$	1,603,479			$	1,365,295
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable		$	104,975			$	72,172
Accrued salaries and other expenses			88,226				71,867
Deferred revenue			122,279				90,931
Notes payable			—				94,965
Total current liabilities			315,480				329,935
Long-term liabilities
Deferred income taxes			195,000				156,000
Total liabilities			510,480				485,935
Shareholders’ equity
Common stock, $.001 par value; 20,000,000 shares authorized; 6,244,917 outstanding			6,245				6,245
Paid-in capital			1,483,482				1,491,427
Accumulated deficit			(396,728	)			(618,312	)
Total shareholders’ equity			1,092,999				879,360
Total liabilities and shareholders’ equity		$	1,603,479			$	1,365,295

 

The accompanying notes are an integral part of the financial statements.

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ADVANT-E CORPORATION AND SUBSIDIARY

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

 

		Six Months Ended June 30,
		2004				2003
Cash flows from operating activities
Net income (loss)		$	221,584			(75,803	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation			34,099			22,846
Amortization of software development costs			164,014			139,881
Deferred income taxes (benefit)			148,400			(8,055	)
Amortization of note discount resulting from valuation of warrants and beneficial conversion features			—			43,586
Increase (decrease) in cash arising from changes in assets and liabilities:
Accounts receivable			(28,533	)		(17,612	)
Prepaid expenses			6,825			9,666
Accounts payable			32,803			(24,253	)
Accrued salaries, interest and other expenses			16,359			66,545
Deferred revenue			31,348			(16,538	)
Net cash provided by operating activities			626,899			140,263
Cash flows from investing activities
Purchases of equipment			(126,614	)		(22,083	)
Software development costs			(84,245	)		(83,166	)
Net cash used in investing activities			(210,859	)		(105,249	)
Cash flows from financing activities
Payments on bank notes			(94,965	)		(6,867	)
Payments of direct costs of securities registration			(7,945	)		—
Net cash used in financing activities			(102,910	)		(6,867	)
Net increase in cash and cash equivalents			313,130			28,147
Cash and cash equivalents, beginning of period			216,448			98,740
Cash and cash equivalents, end of period		$	529,578			126,887
Supplemental disclosures of cash flow information
Interest paid		$	3,014			12,382

 

The accompanying notes are an integral part of the financial statements.

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ADVANT-E CORPORATION AND SUBSIDIARY

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited)

 

Note 1: Basis of Presentation

 

The accompanying unaudited consolidated financial statements include the accounts of Advant-e Corporation and its wholly-owned subsidiary Edict Systems, Inc. (the “Company”).

 

The statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and the instructions to Form 10-QSB. Accordingly, they do not include all of the information and notes to financial statements required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited consolidated financial statements include all adjustments considered necessary for a fair presentation of financial position, results of operations, and cash flows for the interim periods.

 

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Results of operations for the six months ended June 30, 2004 are not necessarily indicative of the results to be expected for the full year ending December 31, 2004. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements, accounting policies, and financial notes thereto included in Advant-e Corporation’s 2003 Form 10-KSB filed with the Securities and Exchange Commission.

 

Note 2: Software Development Costs

 

Software development costs at June 30, 2004 and the changes during the six months then ended are summarized as follows:

 

		Cost			Accumulated Amortization		Net
Balance, January 1, 2004		$	1,067,297		585,619		481,678
Additions			84,245				84,245
Amortization					164,014		(164,014	)
Balance, June 30, 2004		$	1,151,542		749,633		401,909

 

The unamortized costs relate exclusively to internal use software and costs associated with web site development and related enhancements.

 

The ongoing assessment of recoverability of capitalized software development costs requires considerable judgment by management with respect to certain

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external factors, including, but not limited to, anticipated future revenues, estimated economic life and changes in software and hardware technologies. Impairment of asset value is considered whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

 

Note 3: Deferred revenue

 

Deferred revenue is comprised of the following:

 

		June 30, 2004			December 31, 2003
Annual software license fees recognized as revenue ratably over twelve months		$	52,734			58,451
Amounts received for customized Web EDI and EnterpriseEC development recognized as revenue over twelve months when services are performed			43,533			14,625
Advance payments from a customer in exchange for discounted future services recognized as revenue monthly as services are performed			26,012			17,855
		$	122,279		$	90,931

 

Note 4: Income taxes

 

Income tax expense (benefit) for the three months ended June 30, 2004 and 2003 and for the six months ended June 30, 2004 and 2003 consist solely of deferred taxes. The current tax expense for the three months ended June 30, 2004 of $136,900 and for the six months ended June 30, 2004 of $214,000 was offset by the benefit from a net operating loss carryforward.

 

The following is a reconciliation of the income tax expense (benefit) to the amount computed at the statutory rate of 34%:

 

		Three Months Ended June 30,						Six Months Ended June 30,
		2004			2003			2004		2003
Income taxes (benefit) at statutory rate		$	61,000		(689	)		64,500		(28,512	)
State income taxes			12,000		(359	)		10,900		(5,031	)
Amount attributable to lower graduated rates expected to apply when tax benefits are expected to be realized			—		(2,410	)		—		10,672
Non-deductible interest on debt discount amortization			—		7,410			—		14,816
Federal income tax expense (benefit) applicable to income (loss) before income tax		$	73,000		3,952			75,400		(8,055	)

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Management has not recognized a valuation allowance for the net deferred tax assets because it believes that it is more likely than not that future taxable income will result in realization of such assets. This amount, however, could be reduced in the near term if estimates of future taxable income during the net operating loss carryforward period are reduced. The Company’s remaining net operating loss carryforwards of approximately $323,000 begin to expire in 2020.

 

Note 5: Earnings (loss) per share

 

The reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations for the three months and the six months ended June 30, 2004 and 2003, respectively, follows:

 

		Income (Numerator)				Shares (Denominator)		Per Share Amount
Three months ended June 30, 2004
Basic earnings per share:
Net income available to common shareholders		$	107,343			6,244,917		$	0.02
Effect of dilutive securities:
Outstanding warrants			—			477,737			—
Diluted earnings per share:
Net income available to common shareholders plus assumed exercise of warrants		$	107,343			6,722,654		$	0.02
Three months ended June 30, 2003
Basic earnings (loss) per share:
Net loss available to common shareholders		$	(5,979	)		5,661,002		$	0.00
Effect of dilutive securities:
Outstanding warrants			—			—			—
Convertible subordinated notes			—			—			—
Diluted earnings (loss) per share:
Loss available to common shareholders plus assumed exercise and conversion		$	(5,979	)		5,661,002		$	0.00
Six months ended June 30, 2004
Basic earnings per share:
Net income available to common shareholders		$	221,584			6,244,917		$	0.04
Effect of dilutive securities:
Outstanding warrants			—			374,959			(0.01	)
Convertible subordinated notes			200			7,818			—
Diluted earnings per share:
Net income available to common shareholders plus assumed exercise and conversion		$	221,784			6,627,694		$	0.03
Six months ended June 30, 2003
Basic earnings (loss) per share:
Net loss available to common shareholders		$	(75,803	)		5,661,002		$	(0.01	)
Effect of dilutive securities:
Outstanding warrants			—			—			—
Convertible subordinated notes			—			—			—
Diluted earnings (loss) per share:
Loss available to common shareholders plus assumed exercise and conversion		$	(75,803	)		5,661,002		$	(0.01	)

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In both the three-month and the six-month periods ended March 31, 2003 the effects of the outstanding warrants and the assumed conversion of the convertible subordinated notes are antidilutive.

 

At June 30, 2004 the Company has outstanding warrants for the issuance of 750,000 shares of the Company’s common stock at $1.205 per common share; for the issuance of 250,000 shares at $1.25 per common share; and for the issuance of 20,000 shares at $1.48 per common share. The warrants are exercisable as follows: 925,000 warrants through dates that range from September 27, 2005 through December 13, 2005, 20,000 warrants through June 25, 2006, and 75,000 warrants through December 5, 2006.

 

ITEM 2 - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Forward Looking Statements

 

This Form 10-QSB contains forward-looking statements, including statements regarding the expectations of future operations. For this purpose, any statements contained in this Form 10-QSB that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” or “continue” or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within the Company’s control. These factors include, but are not limited to, economic conditions generally and in the industries in which the Company may participate, competition within the chosen industry, including competition from much larger competitors, technological advances, and the failure to successfully develop business relationships. In light of these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. The Company acknowledges that the safe harbor contained in the Litigation Reform Act of 1995 is not applicable to the disclosure in this Form 10-QSB.

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This item should be read in conjunction with “Item 1. Financial Statements” and other items contained elsewhere in this report.

 

Products and services

 

The Company, through its wholly owned subsidiary Edict Systems, Inc., is a provider of business-to-business (“B2B”) electronic commerce (“e-commerce”) products and services, offering EDI-based and proprietary solutions for businesses of all sizes. The Company develops, markets, and supports B2B e-commerce software products and provides Internet-based communication and data processing services that enable businesses to process transactions electronically.

 

The Company’s software products enable businesses to integrate e-commerce data into their businesses and enable smaller companies to process electronic transactions.

 

The Company provides consultative services for its customers, generally small and medium sized suppliers of larger companies, where the Company interfaces between its customers and the buyers to facilitate the EDI connectivity required for document processing.

 

The following comprise the Company’s four principal business products/services:

 

•	Web EDI—Internet-based supply chain solution for the grocery and other industries

 

•	EnterpriseEC—Internet-based Electronic Business Transaction Network Services

 

•	Formula_One—EDI software and Bar Code Label Module software

 

•	Value-Added Applications—Internet-based solutions that enhance the value of electronic commerce capabilities

 

Critical Accounting Estimates and Policies

 

Revenue recognition for Web-EDI and EnterpriseEC subscription fees

 

The Company recognizes monthly subscription fees of $25 per month per customer ($45 if the Customer does not pay by credit card) and $5 per month per trading partner the customer connects to (up to 5 partners) upon the completion of one month of services. These fees are non-refundable. The Company recognizes transaction fees (document processing fees) upon completion of the processed transactions; these transactions are invoiced or charged to a customer’s credit card once per month at the end of a monthly period. These fees are non-refundable and are only billed after services are provided.

 

The Company recognizes as revenues one-time Account Activation Fees ($100 per new customer), Trading Partner Setup Fees ($50 per partner for web-EDI) and Interconnect Setup Fees ($50 per interconnect) after the Company performs consultative work required in order to establish the electronic trading partnership between the customer and their desired trading partner. The Company’s EDI administration, technical support and systems maintenance personnel provide these consultative services that enable the Company’s customers (suppliers) and their trading partners (usually buying organizations of large companies or “hubs”) to conduct EDI transactions as requested by the hub by interfacing with the hub on behalf of the Company’s customers. Because

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each hub has established processes in place to migrate a non-EDI supplier to an EDI-enabled supplier, and because these procedures vary among the hubs, the Company acts as a liaison between its customers and the hub to establish this EDI connection. Since most of the Company’s customers are small to medium-sized companies, they recognize that the Company has the resources and expertise to establish this connection for them. This trading partner connection and relationship, once established, is portable to other EDI service providers if the customer chooses to do so.

 

Time periods of these web-EDI agreements can be cancelled at any time by customers with 30-days prior written notice. EnterpriseEC agreements can be cancelled at any time during the one-year contract period with 90-days prior written notice and in subsequent years, when the agreement extends automatically on a month-to-month basis, with 30-days prior written notice.

 

The Company periodically receives payments from customers in advance for the Company’s development of Web-EDI and EnterpriseEC applications designed to meet specific customer specifications for processing Internet transactions. The Company expects to re-sell some of these applications, with minor modifications, to other customers. The Company recognizes these advance payments as revenue over the twelve-month contract period. The Company recognizes revenue from the transaction fees that result from processing Internet transactions upon completion of the processed transactions at the end of each month. These transaction fees are non-refundable and are only invoiced after services are provided.

 

Software Development Costs

 

The Company capitalizes software development costs and amortizes those costs over a three-year estimated economic life of the software applications. Internet technology can change and does change quickly. As a result, any or all of our products could have an economic life of less than (or more than) three years. In addition, our products could become economically obsolete if we cannot sell the products in the marketplace at a margin that is adequate to produce cash flow. We review quarterly the economic lives of our capitalized products, expected cash flow, and profitability of our products. Capitalized software costs are reported at the lower of unamortized cost or net realizable value.

 

Deferred Income Taxes

 

Deferred income taxes are provided to recognize future tax benefits of net operating loss carry forwards, to the extent realization of such benefits is more likely than not. Deferred income taxes are also provided for temporary differences in recognition of assets and liabilities for financial statements and for income tax purposes. The tax rates used are those expected to be in effect when the temporary differences reverse.

 

Results of Operations

 

Revenue

 

Revenue for the second quarter of 2004 exceeded revenue for the second quarter of 2003 by $136,186, or 19%. Revenue for the first six months of 2004 exceeded revenue for the first six months of 2003 by $326,131, or 24%.

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The following table details revenues by product and percentage growth for the quarters ended June 30, 2004 and 2003, respectively:

 

		Quarter Ended June 30,								Six Months Ended June 30,
		2004			2003		Growth (Decline)			2004			2003		Growth (Decline)
Internet products and services
Web-EDI - GroceryEC		$	729,456		593,895		23	%			1,432,875		1,149,928		24	%
Web-EDI - other			25,968		20,425		27	%			54,177		40,824		33	%
EnterpriseEC			71,218		41,177		73	%			136,438		74,689		83	%
			826,642		655,497		26	%			1,623,490		1,265,441		28	%
Software and software licenses			25,340		59,611		(58	)%			67,127		99,045		(32	)%
		$	851,982		715,108		19	%		$	1,690,617		1,364,486		24	%

 

Web-EDI for the grocery industry continues to provide the largest source of revenue for the Company. The Company is a leading provider of web-based B2B e-commerce in the grocery industry with its GroceryEC service. Revenue from the sale of software and software licenses continues its overall decline as the Company’s major focus is, and has been since the year 2000, on Internet products and services.

 

The Company is continuing its program of strengthening its sales and marketing capabilities to help in achieving increased market share in the grocery industry, improved marketing of Web-EDI services to companies in other industries and increased revenues from EnterpriseEC services. In addition, the Company is attempting to identify and develop new products that have significant sales potential.

 

Expenses

 

Marketing, general and administrative amounted to approximately 42% of revenue in both the three months and the six months ended June 30, 2004.

 

Interest expense in the second quarter of 2004 declined significantly compared to the second quarter of 2003. This occurred because in the first quarter of 2004 the Company paid in full the principal and accrued interest on all outstanding interest bearing payables.

 

Margins

 

The Company reported income before taxes of $180,343, or 21% of revenue, in the quarter ended June 30, 2004. The second quarter of 2004 was the third consecutive quarter in which income before taxes as a percent of revenue exceeded 20%. The Company intends to continue its goal to achieve a pre-tax income of at least 20% of revenues per year with continued efforts to grow revenue and contain costs.

 

The Company’s gross margin, as a percent of revenue, of 64% in both the first quarter of 2004 and the first six months of 2004 improved over 2003 levels (57% and 55%, respectively) primarily due to the revenue increases in both periods in 2004 compared to 2003.

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Income taxes (benefit)

 

Income taxes in the first six months of 2004 were recorded at a 40% tax rate; no income taxes are currently payable, however, because the Company has a net operating loss carryforward sufficient to offset taxable income. At June 30, 2004 the Company has a remaining unused net operating loss carryforward of $323,000.

 

Capitalized Development Costs

 

The following table sets forth the cost and accumulated amortization of the products comprising the Software Development Costs asset at June 30, 2004:

 

Product		Cost			Accumulated Amortization		Net
GroceryEC (Web EDI)		$	428,260		385,804		42,456
Web EDI enhancements			252,621		69,666		182,955
EnterpriseEC			470,661		294,163		176,498
Total		$	1,151,542		749,633		401,909

 

GroceryEC (WebEDI) is the Company’s largest and primary source of revenue. Sales of EnterpriseEC continue to grow in 2004, up 83% from the first six months of 2003. Based on our current marketplace analysis and marketing efforts we expect EnterpriseEC product revenues and cash flows to continue to increase.

 

Liquidity and Capital Resources

 

In the quarter ended June 30, 2004 the Company reported net cash provided by operating activities of $360,717, affording it the ability to acquire computer equipment and related software to increase data processing throughput and other capabilities at a cost of $120,742 and to increase its cash balance from March 31, 2004 by $193,184 to $529,578 at June 30, 2004.

 

ITEM 3. CONTROLS AND PROCEDURES

 

Disclosure controls and procedures. The Chief Executive Officer and the Director of Accounting have carried out an evaluation of the effectiveness of Advant-e’s disclosure controls and procedures that are designed to ensure that information relating to Advant-e required to be disclosed by Advant-e in the reports that it files or submits under the Securities and Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Based upon this evaluation, these officers have concluded, that as of June 30, 2004, Advant-e’s disclosure controls and procedures were adequate.

 

Changes in internal control over financial reporting. During the period covered by this report, there were no changes in Advant-e’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, Advant-e’s internal control over financial reporting.

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ITEM 5. OTHER INFORMATION

 

(a) The Securities and Exchange Commission informed the Company that its registration statement for 1,603,915 common shares became effective on July 23, 2004. The shares included 583,915 outstanding shares that were issued to former holders of the Company’s convertible subordinated notes and 1,020,000 shares to be issued upon the exercise of warrants held principally by former note holders.

 

PART II. OTHER INFORMATION

 

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

 

(a) Exhibits

 

Exhibit Number		Description		Method of Filing
2		Agreement and Plan of Merger, dated as of April 10, 2000, among Edict Systems, Inc., Twilight Productions, and Twilight Acquisitions Sub, Inc.		Previously filed (I)
3(i)		Amended Certificate of Incorporation		Previously filed (A)
3(ii)		By-laws		Previously filed (B)
4.1		Form of Common Stock Certificate		Previously filed (A)
4.2		Form of Note Purchase Agreement and Convertible Subordinated Note underlying the original Issuance of $200,000 of 15% Convertible Subordinated Notes		Previously filed (C)
4.3		Form of Note Purchase Agreement, Convertible Subordinated Note, and Warrant Certificate underlying the total issuance of $525,000 of 15% Convertible Subordinated Notes		Previously filed (E)
4.4		Form of Note Purchase Agreement, Convertible Subordinated Note, and Warrant Certificate Underlying the total issuance of $250,000 of 10% Convertible Subordinated Notes		Previously filed (H)
4.5		Agreements to convert Convertible Subordinated Notes into shares of the Company’s common stock		Previously filed (K)
4.5.1		The Pinnacle Fund, L.P.
4.5.2		Halter Financial Group, Inc.
4.5.3		Gary C. Evans
4.5.4		Ray Washburne and Richard S. Neely (Charter Private Equity)
4.5.5		Barwell Partners, Ltd.
4.5.6		Blair Baker
4.5.7		Covenant Investments, L.P.
4.5.8		Rene Larrave
4.5.9		Scott Brock

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10.1		Lease Agreement, dated as of January 1, 2000, between Jason K. Wadzinski and EDICT Systems, Inc.		Previously filed (B)
10.2		Stock Purchase Agreement, dated April 10, 2000, among Twilight Productions, Ltd., Halter Financial Group, Inc. and Art Howard Beroff		Previously filed (B)
10.3		Software Term License Agreement, including Amendment No. 1, dated as of April 18, 2001 between Cyclone Commerce, Inc. and Edict Systems Inc.		Previously filed (D)
10.4		Lease, dated as of July 30, 2002, between Fritz J. Russ and Dolores H. Russ and Edict Systems, Inc.		Previously filed (F)
31.1		Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13A-14(a)		Filed herewith
31.2		Certification of Director of Accounting pursuant to Securities Exchange Act Rule 13A-14(a)		Filed herewith
32.1		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002		Filed herewith
32.2		Certification of Director of Accounting pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002		Filed herewith

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(A)	Filed with Amendment No. 2 to Form 10-SB filed as of October 13, 2000

(B)	Filed with Amendment No. 1 to Form 10-SB filed as of July 17, 2000

(C)	Filed as Exhibit 4(ii) to Form 10-QSB for the quarterly period ended March 31, 2001 filed as of May 9, 2001, and filed as Exhibit 4(ii) to Form 10-QSB/A-1 for the quarterly period ended March 31, 2001 as amended, as filed on January 13, 2003.

(D)	Filed with Form 10-QSB for the quarterly period ended June 30, 2001 filed as of August 14, 2001 and filed with Form 10-QSB/A-1 for the quarterly period ended June 30, 2001, filed as of January 13, 2003.

(E)	Filed as Exhibits 4(ii) and 4(iii) to Form 10-QSB for the quarterly period ended September 30, 2001 filed as of November 14, 2001, and filed as Exhibits 4(ii) and 4(iii) to Form 10-QSB/A-1 for the quarterly period ended September 30, 2001, as amended, as filed as of January 13, 2003.

(F)	Filed with Form 10-QSB for the quarterly period ended March 31, 2003 filed as of May 15, 2003.

(H)	Filed with Form 10-QSB for the quarterly period ended September 30, 2002 as of December 16, 2002.

(I)	Filed as Exhibit 2 with Amendment No. 1 to Form 10-SB as of July 11, 2000.

(K)	Filed with Form 10-KSB for the fiscal year ended December 31, 2003 as of March 23, 2004.

 

(b) Reports on Form 8-K

 

The Company filed Form 8-K on April 19, 2004 to announce that on April 16, 2004 the Company issued a press release announcing that it had reached a major milestone by processing over $8 billion worth of purchase orders via Web EDI Solutions. The text of the press release was attached as an exhibit to the Form 8-K.

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The Company filed Form 8-K on April 29, 2004 to announce that on the same date the Company issued a press release announcing its financial results for the quarterly period ended March 31, 2004. The press release included the Company’s Consolidated Condensed Balance Sheets at March 31, 2004 and December 31, 2003, the Consolidated Condensed Statements of Operations for the quarterly periods ended March 31, 2004 and 2003, and the Consolidated Condensed Statements of Cash Flows for the quarterly periods ended March 31, 2004 and 2003. The text of the press release including the above described financial statements was attached as an exhibit to the Form 8-K.

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Signatures

 

In accordance with 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.

 

		Advant-e Corporation
		(Registrant)
August 6, 2004		By:		/s/ Jason K. Wadzinski
				Jason K. Wadzinski
				Chief Executive Officer
August 6, 2004		By:		/s/ John F. Sheffs
				John F. Sheffs
				Treasurer