** **

**UNITED STATES**

**SECURITIES ANDEXCHANGE COMMISSION**

 

**Washington, DC 20549**

 

 

**FORM10-QSB**

 

 

 

**(Mark One)**

 
| **ý** |   | **QUARTERLY REPORT UNDER  SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
|------------|--------|----------------------------------------------------------------------------------------|

 

**For the quarterly period endedNovember 30, 2001.**

 
| **o** |   | **TRANSITION REPORT UNDER  SECTION 13 OR 15(d) OF THE EXCHANGE ACT** |
|-------|--------|----------------------------------------------------------------------|

** **

**For the transition period from ____________ to_______________**

 

**Commissionfile number 0-12551**

 

**CREATIVECOMPUTER APPLICATIONS, INC.**

(Exact name of small business issuer as specified inits charter)

 

 
| **California**                   |   | **95-3353465**       |
|----------------------------------|--------|----------------------|
| (State  or other jurisdiction of |   | (I.R.S.  Employer    |
| incorporation  or organization)  |   | Identification  No.) |

 

**26115-AMureau Road, Calabasas, California 91302**

(Address of principal executive offices)

 

**(818) 880-6700**

Issuer's telephone number:

 

 

**                Checkwhether the Issuer (1) filed all reports required to be filed by Section 13 or15(d) of the Exchange Act during the past 12 months (or for such shorter periodthat the Registrant was required to file such reports), and (2) has beensubject to such filing requirements for the past 90 days.**

**Yes  ****ý****   No  ****o**

 

 

**                Statethe number of shares outstanding of each of the issuer's classes of commonequity, as of the latest practicable date: 3,231,025 common shares as of December 31, 2001.**

 

 

**                TransitionalSmall Business Disclosure Format (check one):**

**Yes  ****o****   No  ****ý**

 

 

 

**CREATIVE COMPUTER APPLICATIONS,INC.**

** **

** **

**FORM 10-QSB**

 

 

### **IN D E X**

 

 

 
| **PART I - Financial  Information:**                                                                                 |   |
|----------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                 |   |
| Condensed  Consolidated Balance Sheets, as at November 30, 2001 and August 31, 2001                                  |   |
|                                                                                                                 |   |
| Condensed  Consolidated Statements of Operation for the three months ended November 30,  2001 and November 30, 2000  |   |
|                                                                                                                 |   |
| Condensed  Consolidated Statements of Cash Flows for the three months ended November 30,  2001 and November 30, 2000 |   |
|                                                                                                                 |   |
| Notes  to Condensed Consolidated Financial Statements                                                                |   |
|                                                                                                                 |   |
| Management's  Discussion and Analysis of Results of Operations and Financial Condition                               |   |
|                                                                                                                 |   |
|                                                                                                                 |   |
| **PART II - Other  Information:**                                                                                    |   |
|                                                                                                                 |   |
| Items 1  through 6                                                                                                   |   |
|                                                                                                                 |   |
| Signatures                                                                                                           |   |

 

 

**CREATIVE COMPUTER APPLICATIONS,INC.**

 

**PART 1 - FINANCIAL INFORMATION**

 

#### **CONDENSED CONSOLIDATEDBALANCE SHEETS**

 
|                                                                                                    |   | **November  30,** |          | **August  31,******* |   |
|---------------------------------------------------------------------------------------------------------|--------|-------------------|---------------|----------------------|--------|
|                                                                                                    |   | **2001**          |          | **2001**             |   |
|                                                                                                    |   | **(Unaudited)**   |          |                 |   |
| **ASSETS**                                                                                              |   |              |          |                 |   |
|                                                                                                    |   |              |          |                 |   |
| CURRENT  ASSETS:                                                                                        |   |              |          |                 |   |
| Cash                                                                                                    |   | $                 | 484,528       |                 | $      | 661,008 |   |
| Receivables,  net                                                                                       |   | 1,524,859         |          | 1,209,872            |   |
| Inventories                                                                                             |   | 248,050           |          | 233,737              |   |
| Prepaid  expenses and other assets                                                                      |   | 106,110           |          | 142,219              |   |
| Deferred  tax asset                                                                                     |   | 639,500           |          | 639,500              |   |
|                                                                                                    |   |              |          |                 |   |
| TOTAL  CURRENT ASSETS                                                                                   |   | 3,003,047         |          | 2,886,336            |   |
|                                                                                                    |   |              |          |                 |   |
| PROPERTY  AND EQUIPMENT, net                                                                            |   | 361,129           |          | 398,179              |   |
| INVENTORY  OF COMPONENT PARTS                                                                           |   | 291,496           |          | 306,496              |   |
| CAPITALIZED  SOFTWARE COSTS, net of accumulated amortization of $1,105,393 and $999,331                 |   | 1,344,690         |     | 1,337,472            |   |
| INTANGIBLES,  net                                                                                       |   | 88,295            |          | 104,744              |   |
| DEFERRED  TAX ASSET                                                                                     |   | 569,293           |          | 591,000              |   |
| OTHER  ASSETS                                                                                           |   | 13,340            |          | 13,796               |   |
|                                                                                                    |   |              |          |                 |   |
|                                                                                                    |   | $                 | 5,671,290     |                 | $      | 5,638,023 |   |
|                                                                                                    |   |              |          |                 |   |
| **LIABILITIES  AND SHAREHOLDERS' EQUITY**                                                               |   |              |          |                 |   |
|                                                                                                    |   |              |          |                 |   |
| CURRENT  LIABILITIES:                                                                                   |   |              |          |                 |   |
| Notes  payable to bank (Note 4)                                                                         |   | $                 | 259,351       |                 | $      | 239,351 |   |
| Accounts  payable                                                                                       |   | 273,594           |          | 216,087              |   |
| Accrued  liabilities:                                                                                   |   |              |          |                 |   |
| Vacation  Pay                                                                                           |   | 164,180           |          | 159,290              |   |
| Other                                                                                                   |   | 243,052           |          | 275,790              |   |
| Deferred  service contract income                                                                       |   | 825,379           |          | 831,873              |   |
| Deferred  revenue                                                                                       |   | 436,403           |          | 474,091              |   |
| Capital  lease obligation, current portion                                                              |   | 22,750            |          | 22,750               |   |
|                                                                                                    |   |              |          |                 |   |
| TOTAL  CURRENT LIABILITIES                                                                              |   | 2,224,709         |          | 2,219,232            |   |
|                                                                                                    |   |              |          |                 |   |
| CAPITAL  LEASE                                                                                          |   | 17,424            |          | 23,111               |   |
|                                                                                                    |   |              |          |                 |   |
| TOTAL  LIABILITIES                                                                                      |   | 2,242,133         |          | 2,242,343            |   |
|                                                                                                    |   |              |          |                 |   |
| SHAREHOLDERS'  EQUITY:                                                                                  |   |              |          |                 |   |
| Common  shares, no par value; 20,000,000 shares authorized; 3,231,025 and 3,221,025  shares outstanding |   | 6,111,664         |          | 6,108,164            |   |
| Accumulated  deficit                                                                                    |   | (2,682,507        | )             | (2,712,484           | )      |
|                                                                                                    |   |              |          |                 |   |
| TOTAL  SHAREHOLDERS' EQUITY                                                                             |   | 3,429,157         |          | 3,395,680            |   |
|                                                                                                    |   |              |          |                 |   |
|                                                                                                    |   | $                 | 5,671,290     |                 | $      | 5,638,023 |   |

----

*** As presented in the audited consolidated financialstatements**

** **

**See Notes to CondensedConsolidated Financial Statements.**

 

 

**CONDENSED CONSOLIDATEDSTATEMENTS OF OPERATION**

 

 
|                                           |   | **Three Months Ended November 30,** |    |
|------------------------------------------------|--------|-------------------------------------|---------|
|                                           |   | **2001**                            |    | **2000** |   |
|                                           |   | **(unaudited)**                     |    |
|                                           |   |                                |    |   |   |
| NET  SYSTEM SALES AND SERVICE REVENUE (Note 3) |   |                                |    |   |   |
| System  sales                                  |   | $                                   | 772,546 |   | $ | 315,363 |   |
| Service  revenue                               |   | 954,769                             |    | 908,081 |   |
|                                           |   | 1,727,315                           |    | 1,223,444 |   |
|                                           |   |                                |    |   |   |
| COST  OF PRODUCTS AND SERVICES SOLD            |   |                                |    |   |   |
| System  sales                                  |   | 470,005                             |    | 382,323 |   |
| Service  revenue                               |   | 366,557                             |    | 440,529 |   |
|                                           |   | 836,562                             |    | 822,852 |   |
|                                           |   |                                |    |   |   |
| Gross  profit                                  |   | 890,753                             |    | 400,592 |   |
|                                           |   |                                |    |   |   |
| OPERATING  EXPENSES:                           |   |                                |    |   |   |
| Selling,  general and administrative           |   | 653,852                             |    | 621,568 |   |
|                                           |   |                                |    |   |   |
| Research  and development                      |   | 184,847                             |    | 204,140 |   |
|                                           |   |                                |    |   |   |
|                                           |   | 838,699                             |    | 825,708 |   |
|                                           |   |                                |    |   |   |
| Operating  income (loss)                       |   | 52,054                              |    | (425,116 | ) |
|                                           |   |                                |    |   |   |
| INTEREST  AND OTHER INCOME                     |   | 4,140                               |    | 8,393 |   |
|                                           |   |                                |    |   |   |
| INTEREST  EXPENSE                              |   | (4,510                              | )       | (4,726 | ) |
|                                           |   |                                |    |   |   |
| Income  (loss) before taxes on income          |   | 51,684                              |    | (421,449 | ) |
|                                           |   |                                |    |   |   |
| INCOME  TAX PROVISION                          |   | 21,707                              |    | - |   |
|                                           |   |                                |    |   |   |
| NET  INCOME (LOSS)                             |   | $                                   | 29,977  |   | $ | (421,449 | ) |
|                                           |   |                                |    |   |   |
| EARNINGS  (LOSS) PER SHARE (Note 2):           |   |                                |    |   |   |
| Basic                                          |   | $                                   | .01     |   | $ | (.13 | ) |
| Diluted                                        |   | $                                   | .01     |   | $ | (.13 | ) |
|                                           |   |                                |    |   |   |
| WEIGHTED AVERAGE  NUMBER OF SHARES OUTSTANDING |   |                                |    |   |   |
| Basic                                          |   | 3,224,358                           |    | 3,173,575 |   |
| Diluted                                        |   | 3,224,358                           |    | 3,173,575 |   |

 

**See Notes to CondensedConsolidated Financial Statements.**

 

**CONDENSED CONSOLIDATEDSTATEMENTS OF CASH FLOWS**

 

**Increase (Decrease) in Cash**

 

 
|                                                                                  |   | **Three Months Ended November 30,** |    |
|---------------------------------------------------------------------------------------|--------|-------------------------------------|---------|
|                                                                                  |   | **2001**                            |    | **2000** |   |
|                                                                                  |   | **(unaudited)**                     |    |
|                                                                                  |   |                                |    |   |   |
| OPERATING  ACTIVITIES:                                                                |   |                                |    |   |   |
| Net  income (loss)                                                                    |   | $                                   | 29,977  |   | $ | (421,449 | ) |
| Adjustments  to reconcile net income (loss) to net cash used in operating activities: |   |                                |    |   |   |
| Depreciation  and amortization                                                        |   | 181,211                             |    | 180,158 |   |
| Provision  for doubtful accounts                                                      |   | -                                   |    | 9,213 |   |
| Deferred  taxes                                                                       |   | 21,707                              |    | - |   |
| Changes  in operating assets and liabilities:                                         |   |                                |    |   |   |
| Receivables                                                                           |   | (314,987                            | )       | (203,706 | ) |
| Inventories                                                                           |   | 687                                 |    | 15,072 |   |
| Prepaid  expenses and other assets                                                    |   | 36,565                              |    | 3,036 |   |
| Accounts  payable                                                                     |   | 57,507                              |    | (42,731 | ) |
| Accrued  liabilities and deferred revenues                                            |   | (72,030                             | )       | 288,714 |   |
|                                                                                  |   |                                |    |   |   |
| Net  cash used in operating activities                                                |   | (59,363                             | )       | (171,693 | ) |
|                                                                                  |   |                                |    |   |   |
| INVESTING  ACTIVITIES                                                                 |   |                                |    |   |   |
| Purchases  of property and equipment                                                  |   | (21,650                             | )       | (25,749 | ) |
| Capitalized  software costs                                                           |   | (113,280                            | )       | (96,000 | ) |
|                                                                                  |   |                                |    |   |   |
| Net  cash used in investing activities                                                |   | (134,930                            | )       | (121,749 | ) |
|                                                                                  |   |                                |    |   |   |
| FINANCING  ACTIVITIES:                                                                |   |                                |    |   |   |
| Borrowings  on notes payable                                                          |   | 100,000                             |    | 50,000 |   |
| Payments  on notes payable                                                            |   | (80,000                             | )       | (30,000 | ) |
| Payments  on capital lease obligations                                                |   | (5,687                              | )       | 62,924 |   |
| Proceeds  from issuance of stock                                                      |   | 3,500                               |    | - |   |
|                                                                                  |   |                                |    |   |   |
| Net  cash provided by financing activities                                            |   | 17,813                              |    | 82,924 |   |
|                                                                                  |   |                                |    |   |   |
| NET  DECREASE IN CASH                                                                 |   | (176,480                            | )       | (210,518 | ) |
|                                                                                  |   |                                |    |   |   |
| Cash,  beginning of period                                                            |   | 661,008                             |    | 618,063 |   |
|                                                                                  |   |                                |    |   |   |
| Cash,  end of period                                                                  |   | $                                   | 484,528 |   | $ | 407,545 |   |

 

**See notes to CondensedConsolidated Financial Statements.**

 

**NOTESTO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

 

**Note 1.**                   In the opinion of management,the accompanying unaudited condensed consolidated financial statements reflectall adjustments (which include only normal recurring accruals) necessary topresent fairly the Company’s financial position as of November 30, 2001 theresults of its operations for the three months ended November 30, 2001 and2000, and cash flows for the three months ended November 30, 2001 and 2000.  These results have been determined on thebasis of generally accepted accounting principles and practices appliedconsistently with those used in preparation of the Company’s Annual Report onForm 10-KSB for the fiscal year ended August 31, 2001.

 

                                The results ofoperations for the three months ended November 30, 2001 are not necessarilyindicative of the results expected for any other period or for the entire year.

 

**Note 2.**                   The Company accounts for itsearnings per share in accordance with SFAS No.128, which requires presentationof basic and diluted earnings per share. Basic earnings per share is computed by dividing income or lossavailable to common shareholders by the weighted average number of commonshares outstanding for the reporting period. Diluted earnings per share reflect the potential dilution that couldoccur if securities or other contracts, such as stock options, to issue commonstock were exercised or converted into common stock.  For the three months ended November 30, 2001, the Company did notinclude any potential diluted securities, as inclusion would be anti-dilutive.

 

**Note 3.**                   The Company adopted StaffAccounting Bulletin 101, “Revenue Recognition”, (“SAB 101”) at the beginning ofthe 2001 fiscal year.  SAB 101 providesinterpretive guidance on the recognition, presentation and disclosure ofrevenue in financial statements.  TheCompany accounts for its software revenue recognition in accordance withStatement of Position 97-2, “Software Revenue Recognition”, (“SOP 97-2”).   SOP 97-2 requires companies to recognizerevenue when (i) persuasive evidence of an arrangement exists, (ii) deliveryhas occurred, (iii) the vendor’s fee is fixed and determinable, and (iv)collectability is probable.  The SOPalso requires companies to allocate the fee on a multiple element contractbetween the various elements based on vendor-specific objective evidence offair value.  SAB 101 expands on theissues not explicitly covered in the SOP. The Company elected early adoption ofSAB 101 for the first fiscal quarter beginning September 1, 2000.  The impact of SAB 101 were timing issuesrelated to the recognition of revenue from the sale of hardware and softwareassociated with the Company’s Clinical Information Systems that moved the timeof revenue recognition out approximately ninety to one hundred and eighty days.

 

**Note 4.**                   The Company renewed its lineof credit with its bank on April 10, 2001. The new line provides for $500,000 on a revolving basis through February1, 2002, and contains certain loan covenants and financial ratiorequirements.  On November 30, 2001, thetotal amount due to the bank was $259,351. The Company was in compliance with all of the covenants and financialratios required by its bank as of November 30, 2001.

 

 

**Item 2.                    Management's Discussion and Analysisof Results of Operations and Financial Condition**

 

                This following section of thereport contains forward-looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties so thatthe actual results may vary materially.

 

                CCAgenerates revenues primarily from the sale of its Clinical Information Systems,which includes the licensure of proprietary application software, and the saleof servers upon which the application software operates.  In connection with its sales of CISproducts, the Company provides implementation services for the installation,integration, and training of end user’s personnel.  The Company generates sales of ancillary software and hardware, including its data acquisition products, to itsCIS clients and to third parties.  TheCompany also generates recurring revenues from the provision of comprehensivepost implementation services to its CIS clients, pursuant to extended serviceagreements.

                Sinceits inception, the Company has provided enterprise systems consisting of itsapplication software, servers, and other computer hardware components that itsells to end users.  Beginning in thefirst fiscal quarter ended November 30, 1999, the Company began to develop anapplication service provider (ASP) activity in its wholly owned subsidiaryXymed.com.  The Company intended tooffer its proprietary application software to clients on a monthly subscriptionbasis, as well as data center services and application software support.   However as aresult of current market conditions, a lack of market acceptance for ASPservices, and the difficulty in obtaining financing for such enterprises, theCompany has decided not to pursue the ASP program at this time.

 

                Beginning the second quarter of fiscal2000, and continuing into fiscal 2001, the Company experienced decreased sales of its clinical informationsystem products.  Management believesthat the decrease was primarily attributable to an industry wide slump relatedto post Y2K issues, the Balanced Budget Act, and concerns about the pendingregulations associated with the Health Insurance Portability and AccountabilityAct (HIPAA). In addition, the Company’s revenue recognition policies werechanged in accordance with SAB 101. Beginning the third quarter of fiscal 2001, and continuing into fiscal2002, the Company began to experience a turnaround in sales of its CISproducts.  The Company initiatedstaffing and other expense cuts in order to mitigate its operating losses whenit started to experience a downturn in sales in fiscal 2000.  Management believes the industry and themarket for CIS products is recovering, but is cautious about its core businessactivities until it has a clearer vision ahead.  Accordingly, management has continued to respond to the uncertainmarket conditions by keeping a tight reign on staffing and other expenses.  In addition to the post Y2K slowdown, theentire industry has been concerned with the potential effects of HIPAA on allhealthcare systems.

 

                In order to address issuesbrought about by the HIPAA regulations, the Company is currently developingenhancements to its application products so that they will meet therequirements for the compliance issues. Provisions of HIPAA are intended to ensure patient confidentiality forall health care related information. The requirements of HIPAA apply to any entity storing and/ortransmitting patient identifiable information on electronic media.  This affects virtually all health careorganizations, from physicians and insurance companies to health care supportorganizations.  Certain safeguards willbe required to accurately insure the security of patient data.  This will include more robust audit trailsand tiered/structured password security when accessing patient data.  The increase in patient centered data thatmust be retained under the HIPAA guidelines will require that systemselectronically store much larger amounts of data.  CCA plans on providing its client base with applicationenhancements that will assist its clients in adhering to HIPAA regulations wellbefore the final date that the new regulations go into effect.  Management also believes that theapplication enhancements will require that many of its clients will need toupgrade their systems in order to effectively manage greater amounts of data,which will afford the Company opportunities to sell upgrades and provideprofessional services.

 

 

##### **Results of Operations**

 

                Salesfor the first quarter of fiscal 2002 ended November 30, 2001 increased by$503,871 or 41% compared to the same quarter of fiscal 2001.  The Company has experienced an increase insales of Clinical Information Systems (CIS) products, which began in fiscal2001.  Additionally, the Company’spipeline of new CIS transactions has begun to build back to historical levels.

 

                Whenanalyzed by product category, sales of CIS increased $492,921 or 296% andservice revenues increased $46,688 or 5%. These increases were partially offset by a decrease in sales of dataacquisition products of $35,738 or 24%. The increase in revenues associated with the Company’s CIS products wasprimarily attributable to the improved market conditions discussed above.  The decrease in the sale of data acquisitionproducts is primarily attributable to a lesser number of units shipped to OEMcustomers.  The increase in servicerevenues was attributable to a greater number of customer sites on contract andhigher average revenues per account.  Asa result of the Company closing larger CIS transactions, the annual servicecosts associated with such transactions are proportionally greater.  Service revenues are expected to continue toincrease as and when the Company’s installed base of CIS installationsincreases.

 

                The Company continues to expandits sales and marketing activities, directing its focus towards larger clientsand multi-product sales.  The Companyhas also initiated strategic joint marketing partnerships with other companies,which has improved the Company’s market penetration.  Although its “pipeline” of working CIS transactions has begun toimprove, management views the near term outlook for the continued sale of CISproducts cautiously during the first half of the 2002 fiscal year.  In addition, the Company’s future operatingresults could continue to be subject to quarterly variations based upon a widevariety of factors, including the volume mix and timing of orders receivedduring any quarter or annual periods, and the temporary delays in the closingof new CIS sales.

                Costof sales for the first quarter of fiscal 2002 increased by $13,710 or 2%, ascompared to the same quarter of fiscal 2001. The increase in cost of sales was attributable to an increase inmaterial costs of $77,782 or 285%, an increase in other costs of $12,498 or 4%,partially offset by a decrease in labor costs of $76,570 or 17%.  The increase in material costs was primarilyattributable to an increase in CIS sales during the period.  Cost of sales as a percentage of sales was48% for the current quarter as compared to 67% for the comparable fiscal 2001quarter.  This decrease was primarilyattributable to increased revenues recognized, and the Company maintaining atight reign on expenses.

 

                Sellingand administration expenses increased by $32,284 or 5% for the current quartercompared to the same quarter of fiscal 2001. The increase was primarily attributable to an increase in marketingexpenses related to the Company’s new marketing activities, including theestablishment of an in-house telemarketing program.  Additional marketing expenses have been budgeted for newpromotional materials and marketing consultants aimed at increasing CCA’smarket penetration.

 

                Researchand Development expense decreased $19,293 or 9% for the current quarter ascompared to the same quarter of fiscal 2001. The decrease is attributable to an increase in capitalized softwarerelated to the Company’s ongoing investment in new products and productenhancements.  The Company continues toexpend considerable resources on new product development and productenhancements to current products, including new modules associated with HIPAAcompliance functionality.  Overall, theCompany expects to continue to incur a similar amount of expenditures inresearch and development for the 2002 fiscal year, as in fiscal 2001.

 

                Asa result of the aggregate factors discussed above, the Company earned netincome of $29,977 or basic and diluted earnings per share of $0.01 for thefirst fiscal quarter ended November 30, 2001 compared to a net loss of $421,449or basic and diluted loss per share of $0.13 in the comparable quarter one yearago.

 

### **Capital Resources and Liquidity**

 

                As of November 30, 2001, theCompany’s working capital amounted to $778,338 compared to $667,104 at August31, 2001.  The ratio of the Company’scurrent assets to current liabilities was approximately 1.3 to 1 at November30, 2001 and at August 31, 2001.

 

                TheCompany renewed its line of credit with its bank on April 10, 2001.  The credit facility provides for $500,000 ona revolving basis through February 1, 2002, and contains certain loan covenantsand financial ratio requirements.  OnNovember 30, 2001, the total amount due the bank was $259,351.  The Company was in compliance with all ofthe covenants and financial ratios required by its bank as of November 30,2001.

 

                TheCompany believes that its cash flow from operations together with its bankcredit facilities should be sufficient to fund its working capital requirementsfor the next 12 months.

 

**Seasonality, Inflation andIndustry Trends**

 

                The Company sales are generallylower in the summer and higher in the fall and winter.  Inflation has had no material effect on theCompany business since the Company has been able to adjust the prices of itsproducts and services.  Managementbelieves that most phases of the healthcare segment of the computerindustry will continue to be highly competitive and that potential healthcarereforms including those promulgated by HIPAA may have a long-term positiveimpact on its business.  In addition,management believes that the industry will be marked with more significanttechnological advances, which will improve the quality of service and reducecosts.  The Company is poised to meetthese challenges by continuing to employ new technologies when they becomeavailable, diversifying its product offerings, improving and expanding itsservices, and by constantly enhancing its software applications.

 

#### **PART II - OTHER INFORMATION**

 

 

Items 1 through 5.  NOT APPLICABLE

 

Item 6.    Exhibits and Reports on Forms 8-K

 

(a)           Exhibit 11 - Statement re:computation of per share earnings.

 

(b)           Therewere no reports filed on Form 8-K during the quarter ended November 30, 2001.

 

 

### **SIGNATURES**

 

In accordancewith the requirements of the Exchange Act, the Company caused this report to besigned on its behalf by the undersigned, thereunto duly authorized.

 

 

CREATIVE COMPUTER APPLICATIONS, INC.

(Company)

 

 

 
| Date   | January 14, 2002                                 |   | /S/ Steven M. Besbeck |
|--------|--------------------------------------------------|--------|-----------------------|
|   | Steven. M. Besbeck, President                    |
|   | Chief Executive Officer, Chief Financial Officer |
|   |                                             |
|   |                                             |
|   |                                             |
|   |                                             |
| Date   | January 14, 2002                                 |   | /S/ Anahita Villafane |
|   | Anahita Villafane,                               |
|   | Controller and Chief Accounting Officer          |