SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
For the quarterly period ended: March 31, 1996
TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
--------------------------------------------
(Exact name of registrant as specified in its charter)
Colorado 0-13313 36-3296861
-------- ------- ----------
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
P.O. Box 4197, Englewood, CO 80155-4197
- ---------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 303-761-8829
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 the filing
requirements for at least the past 90 days.
Yes X No
----- -----
As of March 31, 1996, there were 41,733,000 outstanding shares of common stock,
par value $.0001 outstanding.
<PAGE>
PART 1. FINANCIAL INFORMATION
ITEM 1. Financial Statements
--------------------
TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Condensed Consolidated Balance Sheet
March 31,
1996 June 30,
(Unaudited) 1995
- --------------------------------------------------------------------------------
ASSETS
CURRENT ASSETS
Cash $ 1,171 $ 47,671
Accounts receivable 5,973 39,963
Note receivable from related party -- 30,500
Inventories 14,805 50,000
Prepaid expenses 196 2,950
- --------------------------------------------------------------------------------
Total current assets $ 22,145 $ 171,084
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Note payable to financial institution $ 22,349 $ 138,382
Accounts payable 137,505 144,347
Accrued expenses -- 16,490
- --------------------------------------------------------------------------------
Total current liabilities 159,854 299,219
- --------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, stated value $.001 per share;
authorized 100,000,000 shares; issued and
outstanding 41,733,000 shares 41,733 41,733
Additional paid-in capital 925,124 925,124
Accumulated deficit (1,104,566) (1,094,992)
Total stockholders' (deficit) (137,709) (128,135)
$ 22,145 $ 171,084
================================================================================
The accompanying notes are considered an integral part
these financial statements
<PAGE>
<TABLE>
<CAPTION>
TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Condensed Consolidated Statement of Operations
(Unaudited)
Three Months Ended Nine Months Ended
March 31 March 31,
--------------------------------- ------------------------------------
1996 1995 1996 1995
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET SALES $ 28,589 $ 121,270 $ 43,845 $ 491,100
COST OF SALES 29,092 85,600 46,234 349,000
- ---------------------------------------------------------------------------------------------------------------
GROSS PROFIT (503) 36,120 (2,389) 142,100
SELLING, GENERAL
AND ADMINISTRATIVE 3,441 85,859 14,469 284,550
- ---------------------------------------------------------------------------------------------------------------
OPERATING LOSS (3,944) (49,739) (16,858) (142,450)
OTHER INCOME (EXPENSE) (721) (1,854) 7,284 (7,365)
- ---------------------------------------------------------------------------------------------------------------
NET LOSS $ (4,665) $ (51,593) $ (9,574) $ (149,815)
- ---------------------------------------------------------------------------------------------------------------
NET LOSS PER SHARE $ -- $ -- $ -- $ --
- ---------------------------------------------------------------------------------------------------------------
WEIGHTED AVERAGE
SHARES OUTSTANDING 41,733,000 41,733,000 41,733,000 41,733,000
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Consolidated Statement of Cash Flows
(Unaudited)
Nine Months Ended
March 31,
------------------------
1996 1995
- --------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (9,574) $(149,815)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization -- 3,933
Changes in operating assets and liabilities:
Accounts receivable 33,990 26,363
Inventories 35,195 (19,390)
Prepaid expenses 2,754 18,460
Payable and receivable, affiliates 30,500 (1,973)
Accounts payable and accrued liabilities (23,332) 73,490
Other -- 10,705
- --------------------------------------------------------------------------------
69,533 (38,227)
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CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on note payable -- 83,232
Principal payments to financial institution (116,033) (47,800)
- --------------------------------------------------------------------------------
(116,033) 35,432
NET INCREASE (DECREASE) IN CASH (46,500) (2,795)
CASH - BEGINNING OF PERIOD $ 46,671 $ 18,395
- --------------------------------------------------------------------------------
CASH - END OF PERIOD $ 1,171 $ 15,600
================================================================================
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION
Cash paid for interest $ -- $ 8,700
Inventory received as part of vendor
settlement agreement -- 4,967
<PAGE>
TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit)
Common Stock Additional
-------------------------- Paid-in Accumulated
Shares Amount Capital Deficit Total
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balances, July 1, 1995 41,733,000 $41,733 $925,124 $(1,094,992) $(128,135)
Net loss (unaudited) -- -- -- (9,574) (9,574)
- --------------------------------------------------------------------------------------------------------
Balances, March 31, 1996
(unaudited) 41,733,000 $41,733 $925,124 $(1,104,566) $(137,709)
========================================================================================================
</TABLE>
TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note A - General
Teleconferencing Systems International, Inc. (the "Company") was incorporated in
Colorado on December 19, 1983. Activities of the Company since June 30, 1995
have been primarily liquidation of operating assets and settlement of
obligations to creditors and employees as previously reported in its Annual
Report filed on Form 10-KSB for the year ended June 30, 1995.
The accompanying unaudited condensed financial statements have been prepared in
accordance with the instructions to Form 10-QSB and do not include all of the
information and notes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all material
adjustments, consisting of only normal recurring adjustments considered
necessary for a fair presentation, have been included. These statements should
be read in conjunction with the financial statements and notes thereto included
in the Company's Form 10-KSB for the year ended June 30, 1995.
The results of operations for the three months ended March 31, 1996, are note
necessarily indicative of the results for the remainder of fiscal 1996.
Note B - Earnings (Loss) Per Share
Earnings (loss) per share of common stock are computed using the weighted
average number of shares outstanding during each period.
<PAGE>
ITEM 2.
Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Results of Operations
- ---------------------
The Company's active operations had ceased on June 30, 1995, however some
minimal activity continued in collecting accounts receivable and making some
creditors payments.
For the quarter ended March 31, 1996, the Company had net sales of $28,589
with a cost of sales of $29,092, and gross profit of ($503). For the same period
in 1994, the net sales were $121,270 with a cost of sales of $86,500 for a gross
profit of $36,120.
In quarter ended March 31, 1996, the Company incurred $3,441 in general and
administrative for an operating loss of ($3,944). The Company expensed ($721)
for other matters which increased the net loss to ($4,665) for the period. The
operating results for the same period in 1994 were $85,859 in selling, general,
and administrative expenses which produced an operating loss of ($49,739). An
additional ($1,854) expense, when combined with the operating loss totalled a
net loss of ($51,593) for the March 31, 1995 quarter.
Liquidity and Capital Resources
- -------------------------------
The Company had nominal cash capital at the end of the period. The Company
will be forced to either borrow against or sell assets or make private
placements of stock in order to fund any operations. No assurance exists as to
the ability to make private placements of stock.
PART II
OTHER INFORMATION
Item 1. Legal Proceedings - None.
Item 2. Changes in securities - None.
Item 3. Defaults upon senior securities - None.
Item 4. Submission of matters to a vote of security holders - None.
Item 5. Other information - None.
Item 6. Exhibits and reports on Form 8-K
(a) The following are filed as Exhibits to this Quarterly Report. The
numbers refer to the Exhibit Table of Item 601 of Regulation S-K:
None.
(b) Reports on Form 8-K filed during the three months ended March 31,
1996. (incorporated by reference): None.
<PAGE>
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf of the
undersigned thereunto duly authorized.
Dated: August 28, 1997
TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
by:/s/ Keith Shwayder
-----------------------------------------
President
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1995
<PERIOD-END> MAR-31-1996
<CASH> 1,171
<SECURITIES> 0
<RECEIVABLES> 5,973
<ALLOWANCES> 0
<INVENTORY> 14,805
<CURRENT-ASSETS> 22,145
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 22,145
<CURRENT-LIABILITIES> 159,854
<BONDS> 0
0
0
<COMMON> 41,733
<OTHER-SE> (179,442)
<TOTAL-LIABILITY-AND-EQUITY> 22,145
<SALES> 43,845
<TOTAL-REVENUES> 43,845
<CGS> 46,234
<TOTAL-COSTS> 14,469
<OTHER-EXPENSES> (7,284)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (9,574)
<INCOME-TAX> 0
<INCOME-CONTINUING> (9,574)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (9,574)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
