SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB/A-1
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1996
OR
( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number O-21831
International Sports Wagering Inc.
(Exact name of Small Business Issuer as specified in its
charter)
Delaware 22-3375134
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
201 Lower Notch Road, Little Falls, NJ 07424
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (201) 256-8181
Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(D) of the Exchange Act during the past
12 months (or for such shorter period that the registrant was
required to file such report) and (2) has been subject to such
filing requirement for the past 90 days.
Yes No X
There were 7,749,269 shares of Common Stock outstanding at
February 10, 1997.
Transitional Small Business Disclosure Format (check one):
Yes No X
International Sports Wagering Inc.
December 31, 1996
Form 10-QSB/A-1
Index
Part I: Financial Information
Item 1. Financial Statements
Balance Sheets at December 31, 1996 and September 30,
1996
Statements of Operations for the Three Months Ended
December 31, 1996 and 1995 and May 22, 1995 (date of
inception) to December 31, 1996 and 1995
Statement of Changes in Stockholders' Equity for the
Three Months Ended December 31, 1996
Statements of Cash Flows for the Three Months Ended
December 31, 1996 and 1995 and May 22, 1995 (date of
inception) to December 31, 1996 and 1995
Notes to Financial Statements
International Sports Wagering Inc.
(A Development Stage Company)
Balance Sheets
Assets
December 31, September 30,
1996 1996
(Unaudited) (Note 1)
Current Assets:
Cash and cash equivalents $ 7,357,878 $ 537,546
Prepaid expenses and other
current assets 187,743 8,885
Total Current Assets 7,545,621 546,431
Property and Equipment, net 283,169 304,466
Other Assets 4,062 4,258
Deferred Financing Costs -- 46,406
Total Assets $7,832,852 $ 901,561
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $ 18,350 $ 42,382
Accrued expenses 384,239 143,265
Total Current Liabilities 402,589 185,647
Stockholders' Equity:
Preferred stock, par value $.001
per share; 2,000,000 shares
authorized, none issued or
outstanding -- --
Common stock, par value $.001 per
share; 20,000,000 shares
authorized, 7,524,269 and
6,024,269 shares issued and
outstanding, respectively 7,524 6,024
Additional paid-in capital 9,041,020 1,687,089
Deficit accumulated during the
development stage (1,618,281) (977,199)
Total Stockholders' Equity 7,430,263 715,914
Total Liabilities and
Stockholders' Equity $ 7,832,852 $ 901,561
See Notes to Financial Statements
International Sports Wagering Inc.
(A Development Stage Company)
Statements of Operations
May 22, 1995
Three Months Ended (Date of Inception)
December 31, to December 31,
1996 1995 1996
Costs and Expense:
Research and
development expense $ 179,273 $ 143,566 $ 970,568
General and
administrative
expense 181,581 20,572 407,488
Operating Loss (360,854) (164,138) (1,378,056)
Interest expense (299,098) -- (299,098)
Interest Income 18,870 7,210 58,873
Net Loss $(641,082) $(156,928) $(1,618,281)
Net Loss per share $ (.10) $ (.02) $ (.25)
Weighted average
common shares
outstanding 6,716,373 6,477,410 6,514,736
See Notes to Financial Statements
International Sports Wagering Inc.
(A Development Stage Company)
Statement of Changes In Stockholders' Equity
For the Three Months Ended December 31, 1996
Deficit
Accumulated
Additional During The
Common Stock Paid-In Development
Shares Amount Capital Stage
Total
Balance at
October 1,1996 6,024,269 $6,024 $1,687,089 $ (977,199)$715,914
Net Loss 641,082)(641,082)
Issuance of
Common Stock 1,500,000 1,500 7,353,931 7,355,431
Balance at
December
31,1996 7,524,269 $7,524 $9,041,020 (1,618,281)$7,430,263
See Notes to Financial Statements
International Sports Wagering Inc.
(A Development Stage Company)
Statements of Cash Flows
May 22, 1995
Three Months Ended (Date ofInception)
December 31, to December 31,
1996 1995 1996
Cash Flows from
Operating Activities:
Net Loss $(641,082) $(156,928) $(1,618,281)
Adjustment to
reconcile net loss
to net cash (Used in)
operating activities:
Depreciation and
amortization 31,296 6,224 103,199
Issuance of options
to consultants -- -- 14,500
Changes in assets
and liabilities:
Prepaid expenses
and other current
assets (178,858) 413 (187,743)
Other assets -- -- (5,305)
Accounts payable (24,032) (19,906) 18,350
Accrued expenses 240,974 9,903 384,239
Net Cash (Used In)
Operating Activities (571,702) (160,294) (1,291,041)
Cash Flows from Investing
Activities:
Purchase of property
and equipment (9,803) (3,242) (385,125)
Cash Flows from
Financing Activities:
Net Proceeds from
issuance of common
stock 7,401,837 10 9,034,044
Net Increase (Decrease)
in Cash and Cash
Equivalents 6,820,332 (163,526) 7,357,878
Cash and Cash
Equivalents,
Beginning of Period 537,546 694,810 --
Cash and Cash
Equivalents,
End of Period $ 7,357,878 $ 531,284 $ 7,357,878
See Notes to Financial Statements
International Sports Wagering Inc.
Notes To Financial Statements
Note 1 - Basis of Presentation:
The balance sheet at the end of the preceding fiscal year
has been derived from the audited balance sheet contained
in the Company's Registration Statement and is presented
for comparative purposes. All other financial statements
presented are unaudited. In the opinion of Management,
all adjustments which include only normal recurring
adjustments necessary to present fairly the financial
position for all periods presented have been made.
Footnote disclosures normally included in financial
statements prepared in accordance with generally accepted
accounting principles have been omitted in accordance
with the published rules and regulations of the
Securities and Exchange Commission. These financial
statements should be read in conjunction with the
financial statements and notes thereto included in the
Company's Registration Statement.
Note 2 - Net Loss Per Share of Common Stock:
Pursuant to the Securities and Exchange Commission Staff
Accounting Bulletin Topic 4:D, stock issued and stock
options and warrants granted during the 12-month period
preceding the date of the planned Initial Public Offering
("IPO") have been included in the calculation of weighted
average common shares outstanding for the periods prior
to the ("IPO"), even when the impact of such incremental
shares is antidilutive. The computation of weighted
average common shares and equivalents outstanding as
follows:
Weighted average common shares outstanding,
exclusive of issuances within 12 months
prior to the ("IPO") 4,791,522
Shares, options and warrants issued in
periods prior to and within 12 months prior
to the ("IPO") assumed to be outstanding for
the period 1,685,888
Weighted average common shares applicable
to ("IPO") 238,963
Weighted average common shares and
equivalents outstanding 6,716,373
SIGNATURES
Pursuant to the requirements of Section 13 of 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned
thereunto duly authorized.
Date: February 26, 1997 INTERNATIONAL SPORTS WAGERING INC.
(Registrant)
S/BERNARD ALBANESE
Bernard Albanese, President,
Treasurer and Director
Pursuant to the requirements of the Securities Exchange Act
of 1934, this report has been signed below by the following
persons on behalf of the Registrant and in the capacities and on
the date indicated.
Dated: February 26, 1997 S/BARRY MINDES
Barry Mindes, Chairman of
the Board of Directors
(Principal Executive Officer)
Dated: February 26, 1997 S/BERNARD ALBANESE
Bernard Albanese, President,
Treasurer and Director
Dated: February 26, 1997 S/JENEENE NORMAN
Jeneene Norman, Chief
Financial and Accounting
Officer
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