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 March 31, 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 March 31, 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 six months ended March 31,
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
March 31, September 30,
1996 1995
----------- ------------
(unaudited)
<S> <C> <C>
Current assets
Cash $ 917 $ 1,246
Accounts receivable - unaffiliated 229,127 263,577
Accounts receivable - affiliated 65,880 53,182
Inventory 318,595 411,918
Prepaid expenses 1,776 9,566
Deferred income taxes 23,000 23,000
----------- -----------
Total current assets 639,295 762,489
Property and equipment at cost, less
accumulated depreciation 361,506 425,741
Other assets
Capitalized software - net of amortization 199,342 114,804
Deposits 13,125 13,125
Deferred income taxes 119,000 95,000
----------- -----------
Total other assets 331,467 222,929
----------- -----------
Total assets $1,332,268 $1,411,159
=========== ===========
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current liabilities
Accounts payable $ 96,427 $ 83,241
Accrued expenses 66,126 94,174
Notes payable - current portion 42,643 43,633
Notes payable - shareholder 51,950 50,550
----------- -----------
Total current liabilities 257,146 271,598
Notes payable, less current portion 64,557 86,482
----------- -----------
Total liabilities 321,703 358,080
----------- -----------
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 (418,003) (375,489)
----------- -----------
Total stockholder's equity 1,010,565 1,053,079
----------- -----------
Total liabilities & stockholders equity $1,332,268 $1,411,159
=========== ===========
</TABLE>
[FN]
See accompanying notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
For the Three Months Ended March 31, 1996 and 1995
(unaudited)
March 31, March 31,
1996 1995
---------- -----------
Revenues
<S> <C> <C>
Net sales
Products $ 133,987 $ 80,717
Services - unaffiliated 135,186 132,656
Services - affiliated 18,016 37,685
---------- ------------
Total revenues 287,189 251,058
Costs and expenses
Cost of sales
Products 86,559 48,693
Services - unaffiliated 100,823 88,633
Services - affiliated 1,893 2,098
---------- -----------
Total cost of sales 189,275 139,424
General and administrative expenses 107,983 125,913
Interest expenses 4,494 882
---------- -----------
Total costs and expenses 301,690 266,219
---------- -----------
Income (loss) before income taxes (14,501) (15,161)
Provision for income taxes ( 5,000) (2,000)
---------- -----------
Net income (loss) $ ( 9,501) $ (13,161)
=========== ===========
less than less than
Earnings per share $ ( .01) $(.01)
=========== ===========
</TABLE>
[FN]
See accompanying notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
For the Six Months Ended March 31, 1996 and 1995
(unaudited)
March 31, March 31
1996 1995
--------- ---------
Revenues
Net Sales
<S> <C> <C>
Products $ 262,013 $ 228,854
Services - unaffiliated 245,499 256,521
Services - affiliated 36,000 91,068
---------- ---------
Total Revenues 543,512 576,443
Cost and expenses
Cost of sales
Products 159,389 120,402
Services - unaffiliated 198,540 159,662
Services - affiliated 6,437 32,710
---------- ---------
Total cost of sales 364,366 312,774
General and administrative expenses 236,129 241,758
Interest expenses 9,531 1,757
---------- ---------
Total costs and expenses 610,026 556,289
---------- ---------
Income before income taxes (66,514) 20,154
Provision for income taxes (24,000) 13,000
---------- ---------
Net income $ (42,514) $ 7,154
========== =========
less than
Earnings per share $ (.01) $ (.01)
========== =========
</TABLE>
[FN]
See accompanying notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF CASH FLOWS
For the Six Months Ended March 31, 1996
and the Year Ended September 30, 1995
March 31, September 30,
1996 1995
---------- ------------
(unaudited)
<S> <C> <C>
Operating activities
Net income $(42,514) $ 18,902
Adjustments to reconcile net income to
net cash provided by operatg.activities
Depreciation 66,612 112,353
Amortization of capitalized software 17,996 38,556
Deferred income taxes (24,000) 9,000
Changes in operatg.assets and liabilities:
(In)decrease in accounts receivable
- unaffiliated 34,450 (45,265)
- affiliated (12,698) 67,398
De(In)crease in inventory and prepaid
expenses 101,114 (23,203)
Decrease in accounts payable and
accrued expenses (14,863) (18,817)
Decrease in deferred income -- (27,000)
--------- ----------
Net cash provided by operatg.activities 126,097 131,924
Investing Activities
Additions to capitalized software (102,534) (42,499)
Purchases of property, plant & equipment (2,377) (261,010)
--------- ----------
Net cash utilized in investg. activities (104,911) (303,509)
Financing activities
Proceeds from new borrowings -- 144,055
Proceeds from shareholder advances 8,500 36,050
Principal payment on credit lines,notes
payable and capital lease obligations (30,015) (27,273)
--------- ----------
Net cash (utilized) provided by
financing activities (21,515) 152,832
Decrease in cash (329) (18,753)
Cash at beginning of year 1,246 19,999
--------- ----------
Cash at end of year $ 917 $ 1,246
========= ==========
<CAPTION>
Supplemental disclosure of cash flow information:
March 31, September 30,
1996 1995
----------- -------------
Cash paid during the year for
<S> <C> <C>
Interest $ 9,531 $ 12,098
Income taxes 62 25
</TABLE>
[FN]
See accompanying notes to financial statements
<PAGE>
INSTRUCTIVISION, INC.
NOTES TO INTERIM FINANCIAL STATEMENTS
March 31, 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 six months ended
March 31, 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 March 31, 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 March 1996 is 4 : 1 as
compared to 3.5 : 1 as of September 30, 1995.
2. Material Changes in Results of Operations:
The Company's revenues increased slightly over the same
period in the last fiscal year. Total sales were $287,189 for the
quarter ended March 31, 1996, compared to $251,058 for the quarter
ended March 1995. Sales from video production services were $135,186
for the quarter just ended, as compared to $132,656 in the quarter
ending March 1995 and $101,958 in March 1994. Sales were adversely
affected by cancellations due to extreme weather conditions in January.
Accounts receivable were 20% higher on March 31, 1996 compared
to the previous quarter. On March 1996, total receivables were
$295,007 compared to $245,172 at December 30, 1995.
The Company's new "Mastering the GED" software program was
released for publication on March 1 1996.
On March 31, 1996 pending orders for video production
services to be filled over the next three months were valued at
approximately $75,000.
At its last Board of Directors' meeting held on February 23,
1996, the Board unanimously elected Rosemary Comras as President
of the Company. Mr. Comras, who will remain Chairman of the
Board of Directors, has resigned as president as of March 1, 1996
due to ill health.
<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.
May 15, 1996 Rosemary Comras
President
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 917
<SECURITIES> 0
<RECEIVABLES> 295007
<ALLOWANCES> 0
<INVENTORY> 318595
<CURRENT-ASSETS> 639295
<PP&E> 1544052
<DEPRECIATION> 1182546
<TOTAL-ASSETS> 1332268
<CURRENT-LIABILITIES> 257146
<BONDS> 0
<COMMON> 3350
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1332268
<SALES> 287189
<TOTAL-REVENUES> 287189
<CGS> 189275
<TOTAL-COSTS> 301690
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4494
<INCOME-PRETAX> (14501)
<INCOME-TAX> (5000)
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (9501)
<EPS-PRIMARY> (.001)
<EPS-DILUTED> (.001)
</TABLE>
