| PROSPECTUS SUPPLEMENT NO. 3 |
Filed Pursuant to Rule 424(b)(3) | |||
| To Prospectus dated May 14, 2007 |
Registration No. 333-129842 |
Computer Software Innovations, Inc.
14,435,472 SHARES OF COMMON STOCK
This Prospectus Supplement supplements the Prospectus dated May 14, 2007, as amended and supplemented, relating to the offer and sale by the selling stockholder identified in the Prospectus of up to 14,435,472 shares of common stock of Computer Software Innovations, Inc. (the “Company”).
This Prospectus Supplement includes the Company’s Form 8-K filed with the Securities and Exchange Commission on June 27, 2007.
The information contained in the report included in this Prospectus Supplement is dated as of the period of such report. This Prospectus Supplement should be read in conjunction with the Prospectus dated May 14, 2007, as supplemented on May 25, 2007 and June 1, 2007, which supplements are to be delivered with this Prospectus Supplement. This Prospectus Supplement is qualified by reference to the Prospectus except to the extent that the information in this Prospectus Supplement updates and supersedes the information contained in the Prospectus dated May 14, 2007, including any supplements or amendments thereto.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this Prospectus Supplement No. 3 is June 27, 2007.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported) June 27, 2007
COMPUTER SOFTWARE
INNOVATIONS, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware
(State or other jurisdiction of incorporation)
| 000-51758 | 98-0216911 | |
| (Commission File Number) | (IRS Employer Identification No.) |
| 900 East Main Street, Suite T, Easley, South Carolina | 29640 | |
| (Address of principal executive offices) | (Zip Code) |
(864) 855-3900
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 7.01. | Regulation FD Disclosure. |
Computer Software Innovations, Inc. (the “Company”) is furnishing as Exhibit 99.1 a PowerPoint presentation to be presented in meetings with various interested persons. The presentation contains certain forward-looking financial information concerning the Company.
| Item 9.01. | Financial Statements and Exhibits. |
| (c) | Exhibits. |
The following exhibit is furnished as part of this report:
| Exhibit Number |
Description | |
| Exhibit 99.1 | PowerPoint Presentation (June 27, 2007) |
SIGNATURES
Pursuant to 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 hereunto duly authorized.
| COMPUTER SOFTWARE INNOVATIONS, INC. | ||||
| By: | /s/ David B. Dechant | |||
| Name: | David B. Dechant | |||
| Title: | Chief Financial Officer | |||
Date: June 27, 2007
EXHIBIT INDEX
| Exhibit Number |
Description | |
| Exhibit 99.1 | PowerPoint Presentation (June 27, 2007) |
 Computer
Software Innovations, Inc. OTCBB: CSWI.OB June 2007 Distribution Exhibit 99.1 |
 Safe
Harbor This presentation contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward looking statements often address
our expected future business and financial performance, and often contain words
such as “may,” “could,” “should,” “expect,” “believe,” “seek,” “estimate,” “predict,” or “project.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties arise from the economic
health of the software and technology industry, demand for CSI’s products and engineering services, competitive pricing pressures and the availability of necessary financing. In addition, other risks are more fully described in CSI’s 2006 Form 10-KSB and other filings with the Securities and Exchange Commission. These
uncertainties may cause our actual results to be materially different from those
expressed in our forward-looking statements. We do not undertake to update our
forward-looking statements. |
 Highlights Horizontal Growth Business Model Easily Scalable and Replicable to Other Regions $28M business in 3 State Territory, Expanded to projected $38M to $40M+ business in 8 State Territory following January 2007 Acquisition (est. for year ending 2007). Competitive Proprietary Software Vertical Growth Loyal Customer Base – Software Client Retention Rate > 90% Additional Technology Solution Sell-Through Financial Strengths Strong Gross Margins (Software = 47.2% Technology = 13.9%) Recurring Revenues Public Sector – Good Collection History & Ongoing Technology Budgets Historically profitable up to “Going Public” (2005). Projected return to profitability in 2007 primarily as costs related to going public normalize. (Q2 ‘07 est. >$12M and profitable.) |
 Company
Overview Computer Software Innovations, Inc. (OTCBB:CSWI), CSI: Technology
Outfitters™, is a full service company providing software and technology
solutions primarily to public sector organizations. The software solutions include financial management, billing and revenue management, school activity accounting, lesson planning and automated workflow. The technology solutions include IP telephony, IP video surveillance, visual communications, interactive classrooms, network security and traffic monitoring,
infrastructure design, wireless solutions, network management, engineering services, disaster recovery and hardware solutions. CSI's client base includes school districts, higher education, municipalities, county governments, and other non-profit organizations. Currently, more than 600
public sector organizations utilize CSI's software systems and network integration
services. |
 Company
History Founded in 1989 in Easley, SC Financial Management Software – 1989 Released CSI Accounting+Plus (Microsoft Windows platform) - 1999 Released SmartFusion (Microsoft.Net/SQL platform) 2007 Technology Division added in 1999 Computer & Network Hardware – 1999 IP Telephony – 2001 IP Surveillance – 2003 Interactive Whiteboards – 2003 Classroom Audio Augmentation – 2004 Network Security – 2005 Storage and Disaster Recovery – 2006 Reverse merger in 2005 created publicly traded CSWI Acquisition of McAleer Computer Associates – Jan, 2007 |
 Select
Financials Current Market Cap: $3.57 Million Management/Board
Ownership 2.17 Million Shares or 61% of Common outstanding; 20% outstanding shares (common & preferred) Common Shares Outstanding: 3.54 M F/D Shares Outstanding:
14.5 M Full Potential
Diluted: 17.9 M Estimated Public
Float 320K Summary of Capitalization $5.7M Total Current Assets $35.36M 2006 Revenues (trailing twelve months) Key Statistics as of 3/31/07 (except share price data) $1.01 Current Share Price (06/21/07) December 31 Fiscal Year Ends $8.0M (w/sub debt) $4.8M (w/o sub debt) Total Debt $.75 - $1.80 52 Week Trading Range (thru 6/21/07): $12.5M Total Assets $11.65M 3 Mos 2007 Revenues |
 Senior
Management Team – Management Ownership = 59% outstanding common shares; 19%
outstanding shares (common & preferred) Nancy K. Hedrick CEO & President • 27 Yrs in IT Field • President of CSI since 1989 Thomas P. Clinton Sr. Vice President of Strategic Partnerships • 22 Yrs in IT Field (including The Computer Group & IKON) • VP at CSI since 1999 David Dechant, CPA Chief Financial Officer • 22 Yrs in Finance (including Conso Int’l Corp & Warner-Lambert) • CFO at CSI since 2005 Beverly N. Hawkins Sr. Vice President of Product Development • 21 Yrs in IT Field • VP of CSI since 1989 William J. Buchanan Sr. Vice President of Delivery & Support • 22 Yrs in IT Field (including The Computer Group & IKON) • VP at CSI since 1999 |
 Company
Awards and Recognitions 2004, 2005, 2006 & 2007 VAR Business 500 2005 Government VAR 100 2004 VAR Business 50 Fastest Growing Technology Companies 2004 VAR Business Technology Innovator Award-Application Development 2003 CRN Top 5 Rising Stars 2002, 2003, 2004 SC Fastest Growing Companies Award 2003 Ingram Micro National Fastest Growing K-12 Sector 2002 Ingram Micro Southeast Region Fastest Growing K-12 Sector
|
 Horizontal
Growth – Expansion with January, 2007 Acquisition
|
 County
Government • 3,100 County Governments Municipal/City Government • 36,000 Municipalities/City Governments School Districts • 14,000 School Districts Horizontal Growth - US Target Markets 1 2 3 1. Per U.S. Dept of Census 2. Per National League of Cities 3. Per National Center for Education Statistics |
 Horizontal Growth - Organic & Acquisition Strategy Replicate business model into other regions with CSI sales force or through acquisition Target companies with complimentary products and/or complimentary footprint |
 Horizontal Growth - Competitive Proprietary Software Products - Accounting+Plus/Smart Fusion/NextGen - 28 Different Modules - Curriculator Our People - Our Experience: - Financial Management Software Expertise - K12 and Local Government Experience Competitive with Nationally Marketed Products Software Client Retention >90% “An outfitter’s job is to equip the person or organization with the tools to
become successful.” Ledger Budget Preparation Audit Reporting Claims Reimburse- ment Purchasing Accounts Payable Inventory Fixed Assets Accounts Receivable Check Reconciliation Payroll Insurance & Benefits Absent Employee Personnel Cost Allocation Hospitality Fees Business License Construction Permits Cash Collections Cash Drawer Interface Utility Billing Property Tax Collection Handheld Interface Utility Billing Work Orders Available Subs Applicant Tracking Warehouse Requisitions Food Service Reporting |
 Vertical
Growth - The Total Technology Solution Outfitters |
 Vertical
Growth - Technology Solutions Interactive Classroom Technologies Interactive Whiteboards Interactive Assessment and Selection Device Classroom Audio Augmentation Consulting Services Project Management Deployment Services Network Services and Converged Technologies Analysis Design Integration Implementation Support Services Hardware Network Convergence Certified Reseller for Cisco, HP and other major vendors |
 Financial Strengths Strong Gross Margins Software = 47.2% Technology = 13.9% Recurring Revenue Approximately 50% of Software Revenues Increased Emphasis on Technology Support Contracts Advantages of Public Sector Focus Good Collection History Little bad debt write-offs Ongoing Technology Budgets |
 ($2,449) ($430) $285 Net income (loss) $1,390 $3,085 $957 $376 Reverse Merger, Acquisition & Compliance Related Costs Warrant Loss ($1,050) ($527) $580 Operating income (loss) $1,158 $1,504 $2,533 Gross profit $4,092 $4,842 $11,652 Net sales Quarter Ending 03-31-06 Quarter Ending 03-31-07 Quarter Ending 03-31-05 Income Statement Data (in thousands) $3,750 $2,642 $4,837 Total Interest Bearing Debt ($7,667) ($340) $273 Stockholder’s Equity (Deficit) $14,623 $6,703 $12,269 Total Liabilities $12,373 $6,387 $11,261 Current Liabilities $6,956 $6,632 $12,542 Total Assets $5,906 $4,624 $5,697 Current Assets Quarter Ending 03-31-06 Quarter Ending 03-31-07 Quarter Ending 03-31-05 Balance Sheet Data (in thousands) Historical Financials |
 ($756) ($880) $285 Net income (loss) $2,371 $414 $1,703 $329 $376 Reverse Merger, Acquisition & Compliance Related Costs Warrant Loss ($186) ($243) $580 Operating income (loss) $6,546 $6,373 $2,533 Gross profit $24,287 $28,554 $11,652 Net sales Year Ending 12-31-06 Quarter Ending 03-31-07 Year Ending 12-31-05 Income Statement Data (in thousands) $3,951 $2,565 $4,837 Total Interest Bearing Debt ($525) ($104) $273 Stockholder’s Equity (Deficit) $8,098 $9,564 $12,269 Total Liabilities $8,098 $9,359 $11,261 Current Liabilities $7,574 $9,460 $12,542 Total Assets $6,156 $6,497 $5,697 Current Assets Year End 12-31-06 Quarter End 03-31-07 Year End 12-31-05 Balance Sheet Data (in thousands) Historical Financials |
 Key
Highlights! Diverse product offerings targeting schools, governments and small
business Representing a more than $9B Market Opportunity in the U.S. Strong Horizontal Growth Potential Business Model Easily Scalable and Replicable to Other Regions $28M business in 3 States expanded to projected ’07 $38M to $40M+ in 8 States Model Easily Replicated for Rapid Territory Expansion Market Competitive Proprietary Software Applications Excellent Vertical Growth Opportunities Loyal Customer Base – Software Client Retention Rate Greater than 90% Additional Technology Solution Sell-Through Leveraging Relationships for Cross Selling Financial Strengths Strong Gross Margins (Software = 47.2% Technology = 13.9%) Recurring Revenue Model for Engineering Services and Software Updates Public Sector = Good Collection History & Ongoing Technology Budgets Historically profitable up to “Going Public” (2005). Projected return to profitability in 2007 primarily as costs related to going public normalize. (Q2 ‘07 est.>$12M and
profitable.) * * per IDC, a subsidiary of International Data Group, Inc. (the parent company of IDG
News Service) |
 Company
Contact David Dechant, CFO ddechant@csioutfitters.com 864.855.3900 Investor Contact Alliance Advisors, LLC Mark McPartland markmcp@allianceadvisors.net 910.221.1827 |