Initio, Inc. was principally engaged, via its Initio Acquisition Corp. subsidiary, in the mail order and e-commerce retail sale of consumer products through its Deerskin and Joan Cook catalogs, and, to a lesser extent, through media advertising. In April 1999, the Company entered into an agreement with America's Shopping Mall, Inc. to sell substantially all of the assets of its mail order and e-commerce operation. In May 1999, the transaction closed resulting in a pre-tax gain. Since that time, Initio instituted a search for suitable acquisitions. In connection with this activity it became apparent to the Company that there were a significant number of small but relatively profitable companies in desperate need of significant structural, financial, organizational and marketing assistance. During the fiscal year ended April 30, 2002, Initio decided to offer management and consulting services to small, but established companies.