Golden Systems Files Delayed Annual Report

Golden Systems Inc. has filed its annual report for the fiscal year ended March 31 with the U.S. Securities and Exchange Commission.

Because of the company’s difficult financial situation, and delays in completing an audit in India using generally accepted accounting principles, the 2000 audit was delayed and the annual report and the audit were not completed until recently.

Sales for fiscal year 2000 were $4.68 million, compared with $3.94 million for 1999. The increase is due principally to an increase in the volume of shipments to the company’s largest customer during fiscal year 2000 and sales to a newly acquired customer, the company said.

For fiscal year 2000, the company reported a net loss of $1.97 million, or 37 cents per share, contrasted with net income of $113,000, or 2 cents per share, for fiscal year 1999. Fiscal year 1999 net income included a credit of $2.17 million relating to the end of certain accounts payable for which no demand had been made against the company.

The company’s annual report discloses that there are outstanding amounts due Indian lenders in the amount of $10.74 million, all of which are in default. Of that amount, immediate repayment of $9.51 million has been demanded by three banks. They have not been repaid, but the company is in discussions with them regarding a proposal to restructure the loans.

Golden Systems continued to incur significant losses, the report said, and its management has not been able to turn a profit. Outside of related party financing, the company has identified no viable source of financing.

The company also announced that it has applied to the SEC to terminate registration under Section 12(g) of the Securities Exchange Act of 1934. This action is being taken because the number of registered shareholders has fallen well below 300.

Golden Systems designs, manufactures and markets switching power supplies. The company has headquarters in Simi Valley.