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: September 30, 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 September 30, 1996, there were 41,733,000 shares of common stock, no par
value, outstanding.
<PAGE>
PART 1. FINANCIAL INFORMATION
ITEM 1. Financial Statements
----------------------------
TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Condensed Consolidated Balance Sheet
September 30,
1996 June 30,
(Unaudited) 1996
- --------------------------------------------------------------------------------
ASSETS
CURRENT ASSETS
Cash $ 282 $ 840
Accounts receivable 5,861 576
Inventories 4,247 5,851
Prepaid expenses 145 196
- --------------------------------------------------------------------------------
Total current assets $ 10,535 $ 7,463
================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Payable to affiliates $ 19,792 $ 20,707
Accounts payable 117,986 120,795
- --------------------------------------------------------------------------------
Total current liabilities 137,778 141,502
- --------------------------------------------------------------------------------
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 (1,094,100) (1,100,896)
- --------------------------------------------------------------------------------
Total stockholders' (deficit) (127,243) (134,039)
- --------------------------------------------------------------------------------
$ 10,535 $ 7,463
================================================================================
The accompanying notes are considered an integral part of these financial
statements.
2
<PAGE>
TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Condensed Consolidated Statement of Operations
(Unaudited)
Three Months Ended
September 30,
-------------
1996 1995
- --------------------------------------------------------------------------------
NET SALES $ 4,998 $ 14,326
COST OF SALES -- 11,701
- --------------------------------------------------------------------------------
GROSS PROFIT 4,998 2,625
SELLING, GENERAL AND ADMINISTRATIVE 192 11,532
- --------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 4,806 (8,907)
OTHER INCOME (EXPENSE) -- 4,780
- --------------------------------------------------------------------------------
LOSS BEFORE EXTRAORDINARY ITEMS 4,806 (4,127)
- --------------------------------------------------------------------------------
EXTRAORDINARY ITEM - SETTLEMENT AND
EXTINGUISHMENT OF TRADE PAYABLES 1,990 --
- --------------------------------------------------------------------------------
NET INCOME (LOSS) $ 6,796 $ (4,127)
================================================================================
INCOME (LOSS) PER SHARE:
BEFORE EXTRAORDINARY ITEM $ -- $ --
- --------------------------------------------------------------------------------
EXTRAORDINARY ITEM -- --
- --------------------------------------------------------------------------------
NET INCOME (LOSS) $ -- $ --
- --------------------------------------------------------------------------------
WEIGHTED AVERAGE SHARES OUTSTANDING 41,733,000 41,733,000
================================================================================
The accompanying notes are considered an integral part of these financial
statements.
3
<PAGE>
TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Consolidated Statement of Cash Flows
(Unaudited)
Three Months Ended
September 30,
-------------
1996 1995
- --------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Profit or (Loss) $ 6,796 $ (4,127)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Changes in operating assets and liabilities:
Accounts receivable (5,285) 37,123
Inventories 1,604 17,057
Prepaid expenses 51 2,811
Payable to affiliates (915) 30,500
Accounts payable (2,809) (12,416)
- --------------------------------------------------------------------------------
(558) 70,948
- --------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments to financial institution -- (116,033)
- --------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (558) (45,085)
CASH - BEGINNING OF PERIOD 840 47,671
- --------------------------------------------------------------------------------
CASH - END OF PERIOD $ 282 $ 2,586
================================================================================
The accompanying notes are considered an integral part of these financial
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>
Balances, July 1, 1996 41,733,000 $41,733 $925,124 $(1,100,896) $(134,039)
Net loss (unaudited) -- -- -- 6,796 6,796
- ---------------------------------------------------------------------------------------------------
Balances, September 30, 1996
(unaudited) 41,733,000 $41,733 $925,124 $(1,094,100) $(127,243)
===================================================================================================
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 year 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 September 30, 1996, 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 September 30, 1996, the Company had net sales of
$4,998 with a cost of sales of $0, and gross profit of $4,998. For the same
period in 1995, the net sales were $14,326 with a cost of sales of $11,701 for a
gross profit of $2,625.
In quarter ended September 30, 1996, the Company incurred $192 in general
and administrative for operating income of $4,806. The Company received $1,990
6
<PAGE>
in other income which increased the net income to $6,796 for the period. The
operating results for the same period in 1995 were $11,532 in selling, general,
and administrative expenses which produced an operating loss of ($4,127).
Liquidity and Capital Resources
- -------------------------------
The Company had nominal cash capital at the end of the period. The Company
had $10,535 in current assets and $137,778 in current liabilities at quarter
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 September
30, 1996. (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
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<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> SEP-30-1996
<CASH> 282
<SECURITIES> 0
<RECEIVABLES> 5,861
<ALLOWANCES> 0
<INVENTORY> 4,247
<CURRENT-ASSETS> 10,535
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 10,535
<CURRENT-LIABILITIES> 137,778
<BONDS> 0
0
0
<COMMON> 41,733
<OTHER-SE> (168,976)
<TOTAL-LIABILITY-AND-EQUITY> 10,535
<SALES> 4,998
<TOTAL-REVENUES> 4,998
<CGS> 0
<TOTAL-COSTS> 192
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 4,806
<INCOME-TAX> 0
<INCOME-CONTINUING> 4,806
<DISCONTINUED> 0
<EXTRAORDINARY> 1,990
<CHANGES> 0
<NET-INCOME> 6,796
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
