SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 12b-25
Commission File Number: 0-4465
(Check One): |_| Form 10-KSB |_| Form 11-K |_| Form 20-F |X| Form 10-QSB
|_| Form N-SAR
For Period Ended: February 28, 2005
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|_| Transition Report on Form 10-K |_| Transition Report on Form 10-Q
|_| Transition Report on Form 20-F |_| Transition Report on Form N-SAR
|_| Transition Report on Form 11-K
For the Transition Period Ended:
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Read attached instruction sheet before preparing form. Please print or type.
Nothing in this form shall be construed to imply that the Commission has
verified any information contained herein.
If the notification related to a portion of the filing check above,
identify the item(s) to which the notification relates:
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PART I
REGISTRANT INFORMATION
Full name of registrant eLEC COMMUNICATIONS CORP.
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Former name if applicable
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Address of principal executive office (Street and number)
75 South Broadway Suite 302
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City, state and zip code White Plains, New York 10601
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Part II
If the subject report could not be filed without unreasonable effort or
expense and the registrant seeks relief pursuant to Rule 12b-25(b), the
following should be completed: (Check appropriate box.)
|X| (a) The reasons described in reasonable detail in Part III of this
form could not be eliminated without unreasonable effort or
expense;
|X| (b) The subject annual report on Form 10-QSB will be filed on or
before the fifth calendar day following the prescribed due date;
|_| (c) The accountant's statement or other exhibit required by Rule
12b-25(c) has been attached if applicable.
Part III
State below in reasonable detail the reasons why Form 10-QSB could not be
filed within the prescribed period.
The preparation of our Quarterly Report on Form 10-QSB for the fiscal
quarter ended February 28, 2005 was delayed due to the significant amount
time our accounting staff expended after the close of the quarter to file
our Form 10-KSB, Schedule 14A and a Registration Statement on Form SB-2.
As a result of the foregoing, our Quarterly Report on Form 10-QSB for
the fiscal quarter ended February 28, 2005 will be filed on or before April
21, 2005, which is within the extension period provided under Rule 12b-25.
Part IV
(1) Name and telephone number of person to contact in regard to this
notification.
Eric M. Hellige (212) 421-4100
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(2) Have all other periodic reports required under section 13 or 15(d) of
the Securities Exchange Act of 1934 or section 30 of the Investment
Company Act of 1940 during the preceding twelve months or for such
shorter period that the registrant was required to file such report(s)
been filed? If the answer is no, identify such reports.
Yes |X| No |_|
(3) Is it anticipated that any significant change in results of operations
from the corresponding period for the last fiscal year will be
reflected by the earnings statements to be included in the subject
report or portion thereof? If so, attach an explanation of the
anticipated change, both narratively and quantitatively, and, if
appropriate, state the reasons why a reasonable estimate of the
results cannot be made.
Yes |X| No |_|
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Our revenue for the three-month period ended February 28, 2005 increased by
approximately $1,989,000, or approximately 106%, to approximately $3,863,000 as
compared to approximately $1,874,000 reported for the three-month period ended
February 29, 2004. The growth in revenues is directly related to the growth in
our customer base or number of local access lines that we served.
Our gross profit for the three-month period ended February 28, 2005
increased by approximately $814,000 to approximately $1,808,000 from
approximately $994,000 reported in the three-month period ended February 29,
2004. During the same fiscal periods our gross profit percentage decreased to
46.8% from 53%. The increase in our dollars of gross profit resulted from the
increase in our customer base in first quarter of fiscal 2005 over the first
quarter fiscal 2004. The decrease in our gross profit percentage resulted from
the higher cost of services that we are now incurring under a wholesale services
agreement with Verizon, as compared to the UNE-P service offering.
SG&A increased by approximately $1,274,000, or approximately 136%, to
approximately $2,211,000 for the three-month period ended February 28, 2005 from
approximately $937,000 reported in prior year fiscal period. Of this increase,
approximately $730,000 was for bad debt expense, approximately $150,000 was for
telemarketing costs, approximately $73,000 was for billing costs, approximately
$15,000 was for financing costs and approximately $212,000 was for increased
personnel costs.
The foregoing preliminary results of operations are unaudited and are
subject to adjustment based upon the completion of our Quarterly Report on Form
10-QSB.
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eLEC COMMUNICATIONS CORP. has caused this notification to be signed on its
behalf by the undersigned thereunto duly authorized.
Date: April 15, 2005 By: /s/Paul H. Riss
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Name: Paul H. Riss
Title: Chief Executive Officer
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