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, 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 December 31, 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
December 31,
1996 June 30,
(Unaudited) 1996
- --------------------------------------------------------------------------------
ASSETS
CURRENT ASSETS
Cash $ 96 $ 840
Accounts receivable 2,550 576
Inventories 4,247 5,851
Prepaid expenses 79 196
- --------------------------------------------------------------------------------
Total current assets $ 6,972 $ 7,463
- --------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Payable to affiliates $ 25,587 $ 20,707
Accounts payable 117,986 120,795
- --------------------------------------------------------------------------------
Total current liabilities 143,573 141,502
- --------------------------------------------------------------------------------
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 (1,103,458) (1,100,896)
- --------------------------------------------------------------------------------
Total stockholders' (deficit) (136,601) (134,039)
- --------------------------------------------------------------------------------
$ 6,972 $ 7,463
================================================================================
The accompanying notes are considered an
integral part of thesefinancial statements.
2
<PAGE>
<TABLE>
<CAPTION>
TELECONFERENCING SYSTEMS INTERNATIONAL, INC.
Condensed Consolidated Statement of Operations
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
-------------------- --------------------
1996 1995 1996 1995
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET SALES $ 781 $ 930 $ 5,779 $ 15,256
COST OF SALES -- 5,441 -- 17,142
- ----------------------------------------------------------------------------------------------------------------
GROSS PROFIT 781 (4,511) 5,779 (1,886)
SELLING, GENERAL AND
ADMINISTRATIVE 10,079 (504) 10,271 11,028
- ----------------------------------------------------------------------------------------------------------------
OPERATING LOSS (9,298) (4,007) (4,492) (12,914)
OTHER INCOME (EXPENSE) -- 3,225 -- 8,005
- ----------------------------------------------------------------------------------------------------------------
LOSS BEFORE EXTRAORDINARY
ITEM (9,298) (782) (4,492) (4,909)
- ----------------------------------------------------------------------------------------------------------------
EXTRAORDINARY ITEM -
SETTLEMENT AND EXTINGUISHMENT
OF TRADE PAYABLES (60) -- 1,930 --
- ----------------------------------------------------------------------------------------------------------------
NET LOSS $ (9,358) $ (782) $ (2,562) $ (4,909)
================================================================================================================
INCOME (LOSS) PER SHARE:
BEFORE EXTRAORDINARY ITEM $ -- $ -- $ -- $ --
- ----------------------------------------------------------------------------------------------------------------
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)
Six Months Ended
December 31,
-----------------
1996 1995
- --------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (2,562) $ (4,909)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Changes in operating assets and liabilities:
Accounts receivable (1,974) 33,326
Inventories 1,604 21,877
Prepaid expenses 117 2,754
Payable to affiliates 4,880 30,500
Accounts payable (2,809) (12,998)
- --------------------------------------------------------------------------------
(744) 70,550
- --------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments to financial institution -- (116,033)
-- (116,033)
- --------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (744) (45,483)
CASH - BEGINNING OF PERIOD 840 47,671
- --------------------------------------------------------------------------------
CASH - END OF PERIOD $ 96 $ 2,188
================================================================================
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) -- -- -- (2,562) (2,562)
- ----------------------------------------------------------------------------------------------------------------------
Balances, December 31,
1996 (unaudited) 41,733,000 $ 41,733 $ 925,124 $(1,103,458) $ (136,601)
======================================================================================================================
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 December 31, 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 December 31, 1996, the Company had net sales of $781
with a cost of sales of $ 0, and gross profit of $781. For the same period in
1995, the net sales were $930 with a cost of sales of $5,441 for a gross profit
(loss) of ($4,511).
In quarter ended December 31, 1996, the Company incurred $10,079 in general
and administrative expenses for an operating loss of ($9,298). The Company had a
6
<PAGE>
net loss of ($9,358) for the period. The operating results for the same period
in 1995 were ($504) in selling, general, and administrative expenses which
produced an operating loss of ($4,007). Additional other income of $3,225, when
combined with the operating loss totalled a net loss of ($782) for the December
31, 1995 quarter.
Liquidity and Capital Resources
- -------------------------------
The Company had nominal cash capital at the end of the period and only
$6,972 in assets. The Company had current liabilities of $143,573 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 December
31, 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
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> DEC-31-1996
<CASH> 96
<SECURITIES> 0
<RECEIVABLES> 2,550
<ALLOWANCES> 0
<INVENTORY> 4,247
<CURRENT-ASSETS> 6,972
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 6,972
<CURRENT-LIABILITIES> 143,573
<BONDS> 0
0
0
<COMMON> 41,733
<OTHER-SE> (178,334)
<TOTAL-LIABILITY-AND-EQUITY> 6,972
<SALES> 5,779
<TOTAL-REVENUES> 5,779
<CGS> 0
<TOTAL-COSTS> 10,271
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (4,492)
<INCOME-TAX> 0
<INCOME-CONTINUING> (4,492)
<DISCONTINUED> 0
<EXTRAORDINARY> 1,930
<CHANGES> 0
<NET-INCOME> (2,562)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
