UNITED STATES
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
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 December 30, 1996 there were 3,350,000 shares of Common
Stock, par value less than $.001 per share, outstanding.
PAGE 1
<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-QSB and Regulation S-B. 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, 1996 are not necessarily
indicative of the results that may be expected for the year ended
September 30, 1997. 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, 1996.
PAGE 2
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC
BALANCE SHEETS
December 31, 1996
(unaudited)
December 31,
1996
------------
ASSETS
<S> <C>
Current assets
Cash $ 4,036
Investments 888,284
Accounts receivable - unaffiliated 206,868
Accounts receivable - affiliated 62,789
Inventory 243,544
Prepaid expenses 1,808
Deferred income taxes 10,000
----------
Total current assets 1,417,329
Property and equipment at cost, less
accumulated depreciation 305,082
Other assets
Capitalized software - net of amortization 185,368
Deposits 13,125
Deferred income taxes 93,000
----------
Total other assets 291,493
----------
Total assets $2,013,904
==========
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C>
Current liabilities
Accounts payable $ 46,407
Accrued expenses 82,186
Notes payable - current portion 46,364
Notes payable - shareholder 10,000
-----------
Total current liabilities 184,957
Notes payable, less current portion 29,794
-----------
Total liabilities 214,751
-----------
Stockholder's equity
Common Stock, $.001 par value, 10,000,000 shares
authorized, 3,350,000 shares, issued & outstanding 3,350
Additional paid-in capital 1,425,218
Accumulated surplus 384,761
Unrealized loss on Investments (14,176)
-----------
Total stockholder's equity 1,799,153
-----------
Total liabilities and stockholders equity $2,013,904
===========
<FN>
See accompanying notes to financial statements
PAGE 3
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
For the Three Months Ended December 31, 1996 and 1995
(unaudited)
December 31, December 31,
1996 1995
------------ ------------
Revenues
<S> <C> <C>
Net sales
Products $ 93,193 $ 128,025
Services - unaffiliated 99,435 110,314
Services - affiliated 24,638 17,984
---------- ------------
Total sales 217,266 256,323
Dividend Income 34,884 --
---------- ------------
Total Revenues 252,150 256,323
Costs and expenses
Cost of sales
Products 92,397 72,829
Services - unaffiliated 84,938 87,928
Services - affiliated 21,046 14,334
----------- ------------
Total cost of sales 198,381 175,091
General and administrative expenses 122,811 128,208
Interest expenses 5,468 5,037
----------- ------------
Total costs and expenses 326,660 308,336
----------- ------------
Income (loss) before income taxes (74,510) (52,013)
Provision for income taxes (16,000) (19,000)
----------- ------------
Net income (loss) $ (58,510) $ (33,013)
=========== ===========
Earnings per share $ ( .02) $(.01)
=========== ===========
<FN>
See accompanying notes to financial statements
PAGE 4
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF CASH FLOWS
For the Three Months Ended December 31, 1996 and 1995
(Unaudited)
December 31, December 31,
1996 1995
----------- ------------
<S> <C> <C>
Operating activities
Net income $ (58,510) $ (33,013)
Adjustments to reconcile net income to
net cash provided by operatg.activities
Depreciation 28,305 32,420
Amortization of capitalized software 11,160 8,613
Deferred income taxes (16,000) (19,000)
Unrealized loss on investments 14,176 --
Changes in operatg.assets and liabilities:
(In)decrease in accounts receivable
- unaffiliated 28,377 23,260
- affiliated (1,306) 48,327
De(In)crease in inventory and prepaid
expenses 39,327 64,482
Decrease in accounts payable and
accrued expenses (53,606) (25,514)
--------- ----------
Net cash provided by operatg.activities (22,253) 99,575
Investing Activities
Additions to Investments (902,460) --
Additions to capitalized software -- (80,538)
Purchases of property, plant & equipment (33,363) ( 2,378)
--------- ----------
Net cash utilized in investg. activities (935,823) ( 82,916)
Financing activities
Proceeds from shareholder advances -- 3,700
Principal payment on credit lines,notes
payable and capital lease obligations (45,794) (20,951)
---------- ---------
Net cash (utilized) provided by
financing activities (45,794) (17,251)
Decrease in cash (1,003,870) (592)
Cash at beginning of year 1,007,906 1,246
----------- ---------
Cash at end of year $ 4,036 $ 654
=========== =========
<CAPTION>
Supplemental disclosure of cash flow information:
December 31, December 31,
1996 1995
----------- -------------
Cash paid during the year for
<S> <C> <C>
Interest $ 5,468 $ 5,037
Income taxes 30,000 25
<FN>
See accompanying notes to financial statements
PAGE 5
</TABLE>
<PAGE>
INSTRUCTIVISION, INC.
NOTES TO INTERIM FINANCIAL STATEMENTS
December 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 three months ended
December 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 periods ended December 31, 1996
and 1995.
PAGE 6
<PAGE>
INSTRUCTIVISION, INC.
December 31, 1996
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
-----------------------------------------------------------
1. Material Changes in Financial Condition:
The working capital ratio as of December 1996 is 7.7 : 1 as
compared to 2.7 : 1 as of December 1995, due primarily to the
Company's receipt in September 1996 of life insurance proceeds on the
late Jay Comras in the amount of $1,000,000. Income from the
investment of the proceeds is being utilized for operating expenses.
2. Material Changes in Results of Operations:
For the quarter ended December 31, 1996 the Company had revenues
of $252,150 as compared to $256,323 in the quarter ended December 1995.
The Company's sales backlog increased from $80,000 on September 30,1996
to $92,000 as of December 31, 1996.
The Company experienced an operating loss of $74,510 for the quarter
ending December 31, 1996 as compared to a loss of $52,013 in December 1995.
Management attributes the loss to increased payroll and selling expenses.
The Company has entered into agreements with 8 new sales
representatives to market the Company's products throughout the United
States. The Company has added a full-time sales manager to its video
production division to expand its corporate video production market.
PAGE 7
<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 17, 1996 Rosemary Comras
Date President
(Signature)
PAGE 8
<PAGE>
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<PERIOD-END> DEC-31-1996
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