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, 1997
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, 1997, there were 41,733,000 shares of common stock, no par
value, outstanding.
<PAGE>
TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Condensed Consolidated Balance Sheet
March 31,
1997 June 30,
(Unaudited) 1996
ASSETS
CURRENT ASSETS
Cash $ 248 $ 840
Accounts receivable 45 576
Inventories 4,247 5,851
Prepaid expenses 79 196
- --------------------------------------------------------------------------------
Total current assets $ 4,619 $ 7,463
- --------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Payable to affiliates $ 32,503 $ 20,707
Accounts payable 112,996 120,795
- --------------------------------------------------------------------------------
Total current liabilities 145,499 141,502
- --------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, stated no par value
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 (1,107,737) (1,100,896)
- --------------------------------------------------------------------------------
Total stockholders' (deficit) (1,400,880) (134,039)
- --------------------------------------------------------------------------------
$ 4,619 $ 7,463
================================================================================
The accompanying notes are considered
an integral part of thesefinancial statements.
2
<PAGE>
TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Condensed Consolidated Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
-------------------------- ----------------------
1997 1996 1997 1996
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET SALES $ -- $ 28,589 $ 5,779 $ 43,845
COST OF SALES -- 29,092 -- 46,234
- -------------------------------------------------------------------------------------------
GROSS PROFIT -- (503) 5,779 (2,389)
SELLING, GENERAL
AND ADMINISTRATIVE 4,279 3,441 14,550 14,469
- -------------------------------------------------------------------------------------------
OPERATING LOSS (4,279) (3,944) (8,771) (16,858)
OTHER INCOME (EXPENSE) -- (721) -- 7,284
- -------------------------------------------------------------------------------------------
LOSS BEFORE
EXTRAORDINARY ITEM (4,279) (4,665) (8,771) (9,574)
- -------------------------------------------------------------------------------------------
EXTRAORDINARY ITEM -
SETTLEMENT AND
EXTINGUISHMENT OF TRADE
PAYABLES -- -- 1,930 --
- -------------------------------------------------------------------------------------------
NET INCOME (LOSS) (4,279) $ (4,665) $ (6,841) $ (9,574)
===========================================================================================
LOSS PER SHARE:
BEFORE EXTRAORDINARY
ITEMS $ -- $ -- $ -- $ --
- -------------------------------------------------------------------------------------------
EXTRAORDINARY ITEM -- -- -- --
- -------------------------------------------------------------------------------------------
NET INCOME (LOSS) $ -- $ -- $ -- $ --
===========================================================================================
WEIGHTED AVERAGE
SHARES OUTSTANDING 41,733,000 41,733,000 41,733,000 41,733,000
===========================================================================================
The accompanying notes are considered an integral part of these financial statements
3
</TABLE>
<PAGE>
TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Consolidated Statement of Cash Flows
(Unaudited)
Nine Months Ended
March 31,
------------------
1997 1996
- --------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 104,544 $ (9,574)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Changes in operating assets and liabilities:
Accounts receivable 531 33,990
Inventories 1,604 35,195
Prepaid expenses 117 2,754
Payable to affiliates 11,796 30,500
Accounts payable (119,184) (23,332)
- --------------------------------------------------------------------------------
(592) 69,533
- --------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments to financial institution -- (116,033)
- --------------------------------------------------------------------------------
-- (116,033)
- --------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (592) (46,500)
CASH - BEGINNING OF PERIOD 840 47,671
- --------------------------------------------------------------------------------
CASH - END OF PERIOD $ 248 $ 1,171
================================================================================
The accompanying notes are considered
an integral part of thesefinancial statements.
4
<PAGE>
<TABLE>
<CAPTION>
TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit)
Additional
Common Stock Paid-in Accumulated
Shares Amount Capital Deficit Total
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balances, July 1, 1996 41,733,000 $41,733 $925,124 $(1,100,896) $(134,039)
Net loss (unaudited) -- -- -- (6,841) (6,841)
- -------------------------------------------------------------------------------------------------------------------
Balances, March 31, 1997
(unaudited) 41,733,000 $41,733 $925,124 $1,107,737 $(140,880)
- -------------------------------------------------------------------------------------------------------------------
5
</TABLE>
<PAGE>
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 years ended June 30, 1995 and 1996.
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, 1996.
The results of operations for the three months ended March 31, 1997, are not
necessarily indicative of the results for the remainder of fiscal 1997.
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.
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, 1997, the Company had no net sales or cost
of sales, and no gross profit. For the same period in 1996, the net sales were
$28,589 with a cost of sales of $29,092 for a gross profit (loss) of ($503).
In quarter ended March 31, 1997, the Company incurred $4,279 in general and
administrative for an operating loss of ($4,279). The operating results for the
6
<PAGE>
same period in 1996 were $3,441 in selling, general, and administrative expenses
which produced an operating loss of ($3,944). An additional ($721) expense, when
combined with the operating loss totalled a net loss of ($4,665) for the March
31, 1996 quarter.
Liquidity and Capital Resources
- -------------------------------
The Company had nominal cash capital at the end of the period and total
assets of $4,619. The Company had $34,114 in current liabilities at period end.
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,
1997. (incorporated by reference): None.
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: October 20, 1997
TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
by: /s/ Keith Shwayder
---------------------------------------
President
7
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> MAR-31-1997
<CASH> 248
<SECURITIES> 0
<RECEIVABLES> 45
<ALLOWANCES> 0
<INVENTORY> 4,247
<CURRENT-ASSETS> 4,619
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 4,619
<CURRENT-LIABILITIES> 145,499
<BONDS> 0
0
0
<COMMON> 41,733
<OTHER-SE> (182,613)
<TOTAL-LIABILITY-AND-EQUITY> 4,619
<SALES> 5,779
<TOTAL-REVENUES> 5,779
<CGS> 0
<TOTAL-COSTS> 14,550
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (8,771)
<INCOME-TAX> 0
<INCOME-CONTINUING> (8,771)
<DISCONTINUED> 0
<EXTRAORDINARY> 1,930
<CHANGES> 0
<NET-INCOME> 6,841
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
