UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
For the Quarterly Period Ended December 31, 1995
Commission file Number 2-98176NY
Instructivision, Inc.
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(Exact name of registrant as specified in its charter)
New Jersey 22-2386359
- ------------------------------- ------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3 Regent Street, Livingston, NJ 07039
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(201) 992 9081
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 such filing
requirements for the past 90 days.
YES [X] NO [ ]
As of December 30, 1995 there were 3,350,000 shares of Common
Stock, par value less than $.001 per share, outstanding.
<PAGE>
Part I. - FINANCIAL INFORMATION
Note: The following unaudited financial statements have been
prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to
Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do
not include all of the information and footnotes required by
generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments necessary
for a fair presentation have been included. Operating results for
the three months ended December 31, 1995 are not necessarily
indicative of the results that may be expected for the year ended
September 30, 1996. For further information refer to the financial
statements and footnotes thereto included in the Company's annual
report on Form 10-K for the year ended September 30, 1995.
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC
BALANCE SHEETS
ASSETS
December 31, September 30,
1995 1995
----------- ------------
(unaudited)
<S> <C> <C>
Current assets
Cash $ 654 $ 1,246
Accounts receivable - unaffiliated 208,317 263,577
Accounts receivable - affiliated 36,855 53,182
Inventory 348,838 411,918
Prepaid expenses 8,164 9,566
Deferred income taxes 23,000 23,000
----------- -----------
Total current assets 625,828 762,489
Property and equipment at cost, less
accumulated depreciation 395,699 425,741
Other assets
Capitalized software - net of amortization 186,729 114,804
Deposits 13,125 13,125
Deferred income taxes 114,000 95,000
----------- -----------
Total other assets 313,854 222,929
----------- -----------
Total assets $1,335,381 $1,411,159
=========== ===========
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current liabilities
Accounts payable $ 48,414 $ 83,241
Accrued expenses 103,487 94,174
Notes payable - current portion 31,481 43,633
Notes payable - shareholder 45,450 50,550
----------- -----------
Total current liabilities 228,832 271,598
Notes payable, less current portion 86,482 86,482
----------- -----------
Total liabilities 315,314 358,080
----------- -----------
Stockholder's equity
Common Stock, $.001 par value, 10,000,000
shares authorized, 3,350,000 shares
issued and outstanding 3,350 3,350
Additional paid-in capital 1,425,218 1,425,218
Accumulated deficit (408,501) (375,489)
----------- -----------
Total stockholder's equity 1,020,067 1,053,079
----------- -----------
Total liabilities and stockholders equity $1,335,381 $1,411,159
=========== ===========
</TABLE>
[FN]
See accompanying notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
For the Three Months Ended December 31, 1995 and 1994
(unaudited)
December 31, December 31,
1995 1994
------------- ------------
Revenues
<S> <C> <C>
Net sales
Products $ 128,025 $ 148,137
Services - unaffiliated 110,314 123,865
Services - affiliated 17,984 53,383
---------- ------------
Total revenues 256,323 325,385
Costs and expenses
Cost of sales
Products 72,829 71,709
Services - unaffiliated 87,928 71,029
Services - affiliated 14,334 30,612
----------- ------------
Total cost of sales 175,091 173,350
General and administrative expenses 128,208 115,845
Interest expenses 5,037 875
----------- ------------
Total costs and expenses 308,336 290,070
----------- ------------
Income (loss) before income taxes (52,013) 35,315
Provision for income taxes (19,000) 15,000
----------- ------------
Net income (loss) $ (33,013) $ 20,315
=========== ===========
Earnings per share $ ( .01) $ .01
=========== ===========
</TABLE>
[FN]
See accompanying notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF CASH FLOWS
For the Three Months Ended December 31, 1995
and the Year Ended September 30, 1995
December 31, September 30,
1995 1995
----------- ------------
<S> <C> <C>
Operating activities
Net income $(33,013) $ 18,902
Adjustments to reconcile net income to
net cash provided by operatg.activities
Depreciation 32,420 112,353
Amortization of capitalized software 8,613 38,556
Deferred income taxes (19,000) 9,000
Changes in operatg.assets and liabilities:
(In)decrease in accounts receivable
- unaffiliated 23,260 (45,265)
- affiliated 48,327 67,398
De(In)crease in inventory and prepaid
expenses 64,482 (23,203)
Decrease in accounts payable and
accrued expenses (25,514) (18,817)
Decrease in deferred income -- (27,000)
--------- ----------
Net cash provided by operatg.activities 99,575 131,924
Investing Activities
Additions to capitalized software (80,538) (42,499)
Purchases of property, plant & equipment (2,378) (261,010)
--------- ----------
Net cash utilized in investg. activities (82,916) (303,509)
Financing activities
Proceeds from new borrowings -- 144,055
Proceeds from shareholder advances 3,700 36,050
Principal payment on credit lines,notes
payable and capital lease obligations (20,951) (27,273)
--------- ---------
Net cash (utilized) provided by
financing activities (17,251) 152,832
Decrease in cash (592) (18,753)
Cash at beginning of year 1,246 19,999
--------- ---------
Cash at end of year $ 654 $ 1,246
========= =========
<CAPTION>
Supplemental disclosure of cash flow information:
December 31, September 30,
1995 1995
----------- -------------
Cash paid during the year for
<S> <C> <C>
Interest $ 5,037 $ 12,098
Income taxes 25 25
</TABLE>
[FN]
See accompanying notes to financial statements
<PAGE>
INSTRUCTIVISION, INC.
NOTES TO INTERIM FINANCIAL STATEMENTS
December 31, 1995
(unaudited)
Note 1. Basis of Presentation
The financial statements included herein are unaudited.
However, such information reflects all adjustments consisting of
normal recurring adjustments which are, in the opinion of
management, necessary for a fair presentation of the statements
for the interim periods.
The results of operations for the three months ended
December 31, 1995 are not necessarily indicative of the results
to be expected for the full year.
Note 2. Earnings Per Share
Earnings per share is based on the weighted average number
of common shares outstanding. The weighted average number of
common shares was 3,350,000 for the period ended December 31, 1995
and 1994.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
-----------------------------------------------------------
1. Material Changes in Financial Conditon:
The working capital ratio as of December 1995 is 2.7 : 1 as
compared to 2.9 : 1 as of September 30, 1995, due primarily to a
reduction in current assets of $762,489 to $625,825 from September
30, 1995 to December 31, 1995. At the same time, current liabilities
were reduced by $42,766 from September 30 1995 to December 31, 1995.
2. Material Changes in Results of Operations:
The Company experienced a seasonal reduction in video production
sales due, in part, to inclement weather in December, which forced
cancellation of scheduled production business. Additionally, one of
the Company's major video customers experienced a slowdown resulting
in a decline in orders from that customer. Sales from video
production services were $110,314, as compared to $209,078 in the
previous quarter.
The Company's new "Mastering the GED" software program, is
expected to be completed in February 1996.
On December 30, 1995 pending orders for video production
services to be filled over the next three months were valued at
approximately $62,000.
Management believes the Company's cash availability to be
sufficient to meet its short and long-term obligations.
<PAGE>
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of
1934, the registrant has duly cause this report to be signed on its
behalf by the undersigned thereunto duly authorized.
INSTRUCTIVISION, INC.
February 14, 1996 Rosemary Comras
Vice President & Controller
<PAGE>
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-01-1995
<PERIOD-END> DEC-31-1995
<CASH> 654
<SECURITIES> 0
<RECEIVABLES> 245172
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<INVENTORY> 348838
<CURRENT-ASSETS> 625828
<PP&E> 1544053
<DEPRECIATION> 1148354
<TOTAL-ASSETS> 1335381
<CURRENT-LIABILITIES> 228832
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<COMMON> 3350
0
0
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<TOTAL-LIABILITY-AND-EQUITY> 1335381
<SALES> 256323
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<CGS> 175091
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<INCOME-PRETAX> (52013)
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