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Previous: OBOISIE CORP, SB-2/A, 1997-08-29 |
Next: DAILEY PETROLEUM SERVICES CORP, NTN 10K, 1997-08-29 |
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
UNITED STATES
10-QSB/A
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number: 0-20995
For the transition period from _________________ to ______________________
VISUAL EDGE SYSTEMS INC.
Delaware 13-3778895
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
2424 North Federal Highway, Suite 100, Boca Raton, Florida 33431
(Address of principal executive offices)
(561) 750-7559
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
--------- ---------
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
As of July 31, 1997, the registrant had 4,847,728 shares of common stock
and 1,495,000 redeemable warrants outstanding.
<PAGE>
VISUAL EDGE SYSTEMS INC.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
UNAUDITED UNAUDITED
------------------------------ -------------------------------
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------------------ -------------------------------
1997 1996 1997 1996
-------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
REVENUE $ 397,015 $ - $ 596,751 $ -
---------- ------------- ------------- --------------
COST OF SALES 223,743 - 452,860 -
---------- ------------- ------------- --------------
GROSS PROFIT 173,272 - 143,891 -
---------- ------------- ------------- --------------
General and administrative expenses 1,361,707 35,883 1,921,048 153,911
Selling and marketing 706,607 - 896,670 459
One-time non-cash stock severance expense - - 150,125 -
One-time non-cash marketing expense (see Note 5) 53,132 - 53,132 -
---------- ------------- ------------- --------------
2,121,446 35,883 3,020,975 154,370
---------- ------------- ------------- --------------
OPERATING LOSS (1,948,175) (35,883) (2,877,085) (154,370)
---------- ------------- ------------- --------------
OTHER:
Interest income 3,458 - 35,634 -
Interest expense (105,560) (17,934) (109,265) (30,746)
Financing costs: (see Notes 7a & 7b)
Financing fees (123,571) - (148,571) -
---------- ------------- ------------- --------------
Non-cash financing fees (499,981) - (599,981) -
---------- ------------- ------------- --------------
NET LOSS BEFORE INCOME TAXES (2,673,829) (53,817) (3,699,268) (185,116)
Provision for Income Taxes - - - -
NET LOSS $ (2,673,829) $ (53,817) $ (3,633,268) $ (185,116)
---------- ------------- ------------- --------------
LOSS PER SHARE $ (0.56) $ (0.02) $ (0.79) $ (0.06)
---------- ------------- ------------- --------------
WEIGHTED AVERAGE SHARES OUTSTANDING 4,767,575 3,000,00 4,707,953 3,000,000
---------- ------------- ------------- --------------
---------- ------------- ------------- --------------
</TABLE>
2
<PAGE>
VISUAL EDGE SYSTEMS INC.
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30 DECEMBER 31, 1996
---------------- ------------------
1997 1996
---------------- ------------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net Loss $ (3,699,268) $ (2,397,690)
ADJUSTMENTS TO RECONCILE NET LOSS TO NET
CASH USED IN OPERATING ACTIVITIES:
One-time stock compensation expense
One-time non-cash marketing expense - 600,000
Loan financing expenses 53,132 -
Severance pay expense 748,552 -
Depreciation and amortization 150,125 -
Changes in assets and liabilities:
Increase in accounts receivable (85,206) -
Increase in other current assets (163,916) (117,503)
Increase in other assets (112) (23,202)
Increase in bank advances (500,000) -
Increase (decrease) in accounts payable (132,165) 63,852
Increase in accrued expenses (161,762) 271,182
Increase in advanced royalties (202,260) (300,000)
Increase in other current liabilities 27,551 1,500
---------------- --------------
NET CASH USED IN OPERATING ACTIVITIES (3,638,490) (1,746,315)
---------------- --------------
INVESTING ACTIVITIES:
Capital expenditures (1,577,564) (1,365,365)
Proceeds from the sale of short term investments 6,154,908 (1,638,963)
Increase in intangible assets - (398,558)
Deferred financing costs (2,029,436) -
Purchases of short term investments (3,300,000) (3,508,015)
---------------- --------------
NET CASH USED IN INVESTING ACTIVITIES (752,092) (3,632,975)
---------------- --------------
FINANCING ACTIVITIES:
Proceeds from issuance of common stock 128,000 5,511,849
Repayment of borrowings (3,015,000) (1,615,000)
Proceeds from borrowings 7,721,332 1,715,000
---------------- --------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 4,834,332 5,611,849
---------------- --------------
NET INCREASE IN CASH 443,750 232,559
CASH AT BEGINNING OF PERIOD 233,117 558
---------------- --------------
CASH AT END OF PERIOD $ 676,867 $ 233,117
---------------- --------------
---------------- --------------
SUPPLEMENTAL INFORMATION:
Cash paid for interest $ 80,046 $ 50,854
---------------- --------------
---------------- --------------
Cash paid for income taxes $ - $ -
---------------- --------------
---------------- --------------
</TABLE>
5
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
VISUAL EDGE SYSTEMS INC.
/s/ Earl T. Takefman
---------------------------------
Earl T. Takefman
August 29, 1997 Chief Executive Officer and
Chief Financial Officer
21
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