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: December 31, 1995
TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
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(Exact name of registrant as specified in its charter)
Colorado 0-13313 36-3296861
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(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 December 31, 1995, 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
December 31,
1995 June 30,
(Unaudited) 1995
- --------------------------------------------------------------------------------
ASSETS
CURRENT ASSETS
Cash $ 2,188 $ 47,671
Accounts receivable 6,637 39,963
Note receivable from related party -- 30,500
Inventories 28,123 50,000
Prepaid expenses 196 2,950
- --------------------------------------------------------------------------------
Total Current assets $ 37,144 $ 171,084
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Note payable to financial institution $ 22,349 $ 138,382
Accounts payable 147,839 144,347
Accrued expenses -- 16,490
- --------------------------------------------------------------------------------
Total current liabilities 170,188 299,219
- --------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, stated value $.001 per share;
authorized 100,000,000 shares; issued and
outstanding 41,733,000 41,733 41,733
Additional paid-in capital 925,124 925,124
Accumulated deficit (1,099,901) (1,094,992)
Total stockholders' (deficit) (133,044) (128,135)
$ 37,144 $ 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 Six Months Ended
December 31, December 31,
------------------------ -----------------------------
1995 1994 1995 1994
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET SALES $ 930 $ 220,000 $ 15,256 $ 369,453
COST OF SALES 5,441 158,000 17,142 263,284
- --------------------------------------------------------------------------------------------------
GROSS PROFIT (4,511) 62,000 (1,886) 106,169
SELLING, GENERAL
AND ADMINISTRATIVE (504) 95,360 11,028 197,204
- --------------------------------------------------------------------------------------------------
OPERATING LOSS (4,007) (33,360) (12,914) (91,035)
OTHER INCOME (EXPENSE) 3,225 (4,300) 8,005 (6,999)
- --------------------------------------------------------------------------------------------------
NET LOSS $ (782) $ (37,660) $ (4,909) $ (98,034)
- ---------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Consolidated Statement of Cash Flows
(Unaudited)
Six Months Ended
December 31,
----------------
1995 1994
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CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net loss $ (4,909) $ (98,034)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization -- 2,622
Changes in operating assets and liabilities:
Accounts receivable 33,326 (13,648)
Inventories 21,877 (6,873)
Prepaid expenses 2,754 15,866
Payable and receivable, affiliates 30,500 (1,485)
Accounts payable and accrued liabilities (12,998) 57,070
Other -- (33)
- -----------------------------------------------------------------------------------------------
70,550 (44,515)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on note payable -- 45,000
Principal payments to financial institution (116,033) (6,314)
- -----------------------------------------------------------------------------------------------
(116,033) 38,686
NET INCREASE (DECREASE) IN CASH (45,483) (5,829)
CASH - BEGINNING OF PERIOD 47,671 18,395
- -----------------------------------------------------------------------------------------------
CASH - END OF PERIOD $ 2,188 $ 12,566
- -----------------------------------------------------------------------------------------------
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION
Cash paid for interest $ -- $ 2,716
Inventory received as part of vendor
settlement agreement $ -- 4,967
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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) -- -- -- (4,909) (4,909)
- -----------------------------------------------------------------------------------------------------------
Balances, December 31, 1995
(unaudited) 41,733,000 $41,733 $925,124 $(1,099,901) $(133,044)
===========================================================================================================
</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 December 31, 1995, 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 December 31, 1995, the Company had net sales of $930
with a cost of sales of $5,441, and gross profit of ($4,511). For the same
period in 1994, the net sales were $220,000 with a cost of sales of $158,000 for
a gross profit of $62,000.
In quarter ended December 31, 1995, the Company incurred ($504) in general
and administrative for an operating loss of ($4,007). The Company received
$3,225 in other income which reduced the net loss to ($782) for the period. The
operating results for the same period in 1994 were $95,360 in selling, general,
and administrative expenses which produced an operating loss of ($33,360). An
additional ($4,300) expense, when combined with the operating loss totalled a
net loss of ($37,660) for the December 31, 1994 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 December
31, 1995. (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> 6-MOS
<FISCAL-YEAR-END> JUN-30-1995
<PERIOD-END> DEC-31-1995
<CASH> 2,188
<SECURITIES> 0
<RECEIVABLES> 6,637
<ALLOWANCES> 0
<INVENTORY> 28,123
<CURRENT-ASSETS> 37,144
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 37,144
<CURRENT-LIABILITIES> 170,188
<BONDS> 0
0
0
<COMMON> 41,733
<OTHER-SE> (174,777)
<TOTAL-LIABILITY-AND-EQUITY> 37,144
<SALES> 15,256
<TOTAL-REVENUES> 15,256
<CGS> 17,142
<TOTAL-COSTS> 11,028
<OTHER-EXPENSES> (8,005)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (4,909)
<INCOME-TAX> 0
<INCOME-CONTINUING> (4,909)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4,909)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
