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 June 30, 1996
Commission file Number 2-98176NY
Instructivision, Inc.
-------------------------------------------------------
(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 June 30, 1996 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 nine months ended June 30, 1996 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
June 30, September 30,
1996 1995
----------- ------------
(unaudited)
<S> <C> <C>
Current assets
Cash $ 2,160 $ 1,246
Accounts receivable - unaffiliated 254,128 263,577
Accounts receivable - affiliated 44,637 53,182
Inventory 298,904 411,918
Prepaid expenses 5,644 9,566
Deferred income taxes 23,000 23,000
----------- -----------
Total current assets 628,473 762,489
Property and equipment at cost, less
accumulated depreciation 333,072 425,741
Other assets
Capitalized software - net of amortization 190,651 114,804
Deposits 13,125 13,125
Deferred income taxes 129,000 95,000
----------- -----------
Total other assets 332,776 222,929
----------- -----------
Total assets $1,294,321 $1,411,159
=========== ===========
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current liabilities
Accounts payable $ 102,356 $ 83,241
Accrued expenses 48,131 94,174
Notes payable - current portion 43,454 43,633
Notes payable - shareholder 54,250 50,550
----------- -----------
Total current liabilities 248,191 271,598
Notes payable, less current portion 56,970 86,482
----------- -----------
Total liabilities 305,161 358,080
----------- -----------
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 (439,408) (375,489)
----------- -----------
Total stockholder's equity 989,160 1,053,079
----------- -----------
Total liabilities and stockholders equity $1,294,321 $1,411,159
=========== ===========
</TABLE>
[FN]
See accompanying notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
For the Nine Months Ended June 30, 1996 and 1995
(unaudited)
June 30, June 30,
1996 1995
--------- ----------
Revenues
Net sales
<S> <C> <C>
Products $ 382,030 $ 310,722
Services - unaffiliated 382,839 435,687
---------- ----------
Total revenues 829,923 849,312
Cost and expenses
Cost of sales
Products 254,049 177,051
Services - unaffiliated 301,683 254,167
Services - affiliated 11,640 60,112
---------- ----------
Total cost of sales 567,372 491,330
General and administrative expenses 347,767 351,210
Interest expenses 12,703 6,495
---------- ----------
Total costs and expenses 927,842 849,035
Income before income taxes (97,919) 277
Provision for income taxes (34,000) 8,000
---------- ----------
Net income $ (63,919) $ (7,723)
========== ==========
less than
Earnings per share $ (.02) (.01)
========== ==========
</TABLE>
[FN]
See accompanying notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
For the Three Months Ended June 30, 1996 and 1995
(unaudited)
June 30, June 30,
1996 1995
----------- ------------
Revenues
<S> <C> <C>
Net sales
Products $ 120,017 $ 80,068
Services - unaffiliated 137,340 180,966
Services - affiliated 29,054 11,835
---------- ------------
Total revenues 286,411 272,869
Costs and expenses
Cost of sales
Products 94,660 63,813
Services - unaffiliated 103,143 106,790
Services - affiliated 5,203 7,953
----------- ------------
Total cost of sales 203,006 178,556
General and administrative expenses 111,638 109,453
Interest expenses 3,172 4,737
----------- ------------
Total costs and expenses 317,816 292,746
----------- ------------
Income (loss) before income taxes (31,405) (19.877)
Provision for income taxes (10,000) (5,000)
----------- ------------
Net income (loss) $ (21,405) $ (14,877)
=========== ===========
less than
Earnings per share $ ( .01) $(.01)
=========== ===========
</TABLE>
[FN]
See accompanying notes to financial statements
<PAGE>
[CAPTION]
INSTRUCTIVISION, INC.
STATEMENT OF CASH FLOWS
For the Nine Months Ended June 30, 1996
and the Year Ended September 30, 1995
<TABLE>
June 30, September 30,
1996 1995
--------- ------------
<S> <C> <C>
Operating activities
Net income $(63,919) $ 18,902
Adjustments to reconcile net income to
net cash provided by operatg.activities
Depreciation 99,009 112,353
Amortization of capitalized software 31,512 38,556
Deferred income taxes (34,000) 9,000
Changes in operatg.assets and liabilities:
(In)decrease in accounts receivable
- unaffiliated 9,449 (45,265)
- affiliated 8,545 67,398
De(In)crease in inventory and prepaid
expenses 116,936 (23,203)
Decrease in accounts payable and
accrued expenses (26,928) (18,817)
Decrease in deferred income -- (27,000)
--------- ----------
Net cash provided by operatg.activities 140,604 131,924
Investing Activities
Additions to capitalized software (107,359) (42,499)
Purchases of property, plant & equipment (6,340) (261,010)
--------- ----------
Net cash utilized in investg. activities (113,699) (303,509)
Financing activities
Proceeds from new borrowings 144,055
Proceeds from shareholder advances 18,050 36,050
Principal payment on credit lines,notes
payable and capital lease obligations (44,041) (27,273)
--------- ---------
Net cash (utilized) provided by
financing activities (25,991) 152,832
Decrease in cash 914 (18,753)
Cash at beginning of year 1,246 19,999
--------- ---------
Cash at end of year $ 2,160 $ 1,246
========= =========
<CAPTION>
Supplemental disclosure of cash flow information:
June 30, September 30,
1996 1995
----------- -------------
Cash paid during the year for
<S> <C> <C>
Interest $ 12,702 $ 12,098
Income taxes 62 25
</TABLE>
[FN]
See accompanying notes to financial statements
<PAGE>
INSTRUCTIVISION, INC.
NOTES TO INTERIM FINANCIAL STATEMENTS
June 30, 1996
(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 nine months ended
June 30, 1996 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 June 30, 1996
and 1995.
<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 June 30,1996 is 2.5 : 1 as
compared to 2.9 : 1 as of September 30, 1995. Revenues for the third
quarter ended June 1996, 1995, and 1994 are $286,400, $272,869, and
$305,425 respectively. The Company's operating expenses have increased
approximately 10% during the first nine months primarily due to an
increase in depreciation expense resulting from the purchase in 1995
of capital equiment for its video department.
2. Material Changes in Results of Operations:
The Company has expanded its operating activities by signing an
agreement with a new sales representative in New Orleans. The Company
intends to publish test preparation materials for the Louisiana state
assessment test.
PART II
ITEM 5. Other Information.
Mr. Jay Comras, Founder and Chairman of the Board of Directors of
Instructivision,Inc., died on August 2, 1996.
<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.
August 15, 1996 Rosemary Comras
President
<PAGE>
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> APR-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 2160
<SECURITIES> 3350000
<RECEIVABLES> 298765
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<INVENTORY> 298904
<CURRENT-ASSETS> 628473
<PP&E> 1548015
<DEPRECIATION> 1214943
<TOTAL-ASSETS> 1294321
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<COMMON> 3350
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1294321
<SALES> 286411
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<CGS> 203006
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<INCOME-PRETAX> (31405)
<INCOME-TAX> (10000)
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<NET-INCOME> (21405)
<EPS-PRIMARY> (.01)
<EPS-DILUTED> (.01)
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