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 March 31, 1997
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, 1997 there were 3,350,000 shares of Common
Stock, par value less than $.001 per share, outstanding.
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<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 six months ended March 31, 1997 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.
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<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC
BALANCE SHEETS
March 31, 1997
(unaudited)
March 31,
ASSETS 1997
------------
<S> <C>
Current assets
Cash $ 2,125
Investments 845,052
Accounts receivable - unaffiliated 280,443
Accounts receivable - affiliated 85,707
Inventory 214,274
Prepaid expenses 1,868
Deferred income taxes 10,000
-----------
Total current assets 1,439,469
Property and equipment at cost, less
accumulated depreciation 280,909
Other assets
Capitalized software - net of amortization 182,752
Deposits 13,125
Deferred income taxes 95,000
-----------
Total other assets 290,877
-----------
Total assets $2,011,255
===========
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C>
Current liabilities
Accounts payable $ 73,593
Accrued expenses 76,771
Notes payable - current portion 47,692
Notes payable - shareholder 5,000
-----------
Total current liabilities 203,056
Notes payable, less current portion 17,361
-----------
Total liabilities 220,417
-----------
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 373,972
Unrealized loss on Investments (11,702)
-----------
Total stockholder's equity 1,790,838
-----------
Total liabilities and stockholders equity $2,011,255
===========
<FN>
See accompanying notes to financial statements
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
For the Six Months Ended March 31, 1997 and 1996
(unaudited)
March 31, March 31,
1997 1996
------------ ------------
Revenues
<S> <C> <C>
Net sales
Products $ 199,326 $ 262,013
Services - unaffiliated 299,527 245,499
Services - affiliated 38,124 36,000
----------- ------------
Total sales 536,977 543,512
Dividend Income 39,226 --
----------- ------------
Total Revenues 576,203 543,512
Costs and expenses
Cost of sales
Products 169,183 159,389
Services - unaffiliated 202,581 198,540
Services - affiliated 25,038 6,437
----------- ------------
Total cost of sales 396,802 364,366
General and administrative expenses 258,910 236,129
Interest expenses 7,790 9,531
----------- ------------
Total costs and expenses 663,502 610,026
----------- ------------
Income (loss) before income taxes (87,299) (66,514)
Provision for income taxes (18,000) (24,000)
----------- ------------
Net income (loss) $ (69,299) $ (42,514)
=========== ============
Earnings per share $ ( .02) $ ( .01)
=========== ============
<FN>
See accompanying notes to financial statements
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
For the Three Months Ended March 31, 1997 and 1996
(unaudited)
March 31, 1997 March 31, 1996
-------------- --------------
Revenues
Net sales
<S> <C> <C>
Products $ 106,133 $ 133,987
Services - unaffiliated 200,092 135,186
Services - affiliated 13,486 18,016
----------- ------------
Total Sales 319,711 287,189
Dividend income 4,342 --
---------- ------------
Total revenues 324,053 287,189
Costs and expenses
Cost of sales
Products 76,786 86,559
Services - unaffiliated 117,643 100,823
Services - affiliated 3,992 1,893
----------- ------------
Total cost of sales 198,421 189,275
General and administrative expenses 136,099 107,983
Interest expenses 2,322 4,494
----------- ------------
Total costs and expenses 336,842 301,690
----------- ------------
Income (loss) before income taxes (12,789) (14,501)
Provision for income taxes (2,000) ( 5,000)
---------- ------------
Net income (loss) (10,789) ( 9,501)
=========== ============
less than less than
Earnings per share (.01) (.01)
=========== ============
<FN>
See accompanying notes to financial statements
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF CASH FLOWS
For the Six Months Ended March 31, 1997 and 1996
(Unaudited)
March 31, March 31,
1997 1996
----------- ------------
<S> <C> <C>
Operating activities
Net income $ (69,299) $ (42,574)
Adjustments to reconcile net income to
net cash provided by operatg.activities
Depreciation 56,613 66,612
Amortization of capitalized software 26,280 17,996
Deferred income taxes (18,000) (24,000)
Changes in operatg.assets and liabilities:
(In)decrease in accounts receivable
- unaffiliated (45,198) 34,450
- affiliated (24,224) (12,698)
De(In)crease in inventory & prepaid expenses 68,537 101,114
Decrease in accounts payable and
accrued expenses (31,835) (14,863)
Decrease in deferred income --
---------- -----------
Net cash provided by operatg.activities (37,126) 126,097
Investing Activities
Additions to Investments (856,754) --
Additions to capitalized software (12,504) (102,534)
Purchases of property, plant & equipment (37,498) (2,377)
---------- -----------
Net cash utilized in investg. activities (906,756) (104,911)
Financing activities
Proceeds from shareholder advances -- 8,500
Principal payment on credit lines,notes
payable and capital lease obligations (61,899) (30,015)
---------- ----------
Net cash (utilized) provided by
financing activities (61,899) (21,515)
Decrease in cash (1,005,781) (329)
Cash at beginning of year 1,007,906 1,246
----------- -----------
Cash at end of year $ 2,125 $ 917
=========== ===========
<CAPTION>
Supplemental disclosure of cash flow information:
March 31, September 30,
1997 1996
--------- -------------
Cash paid during the year for
<S> <C> <C>
Interest $ 7,790 $ 9,531
Income taxes 30,000 62
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<PAGE>
INSTRUCTIVISION, INC.
NOTES TO INTERIM FINANCIAL STATEMENTS
March 31, 1997
(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
March 31, 1997 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, 1997
and 1996.
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<PAGE>
INSTRUCTIVISION, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
-----------------------------------------------------------
1. Material Changes in Financial Condition:
The working capital ratio as of March 1997 is 7 : 1. Revenues
for the three months ended March 31, 1997 were $324,053, an increase
of $36,864 from revenue recorded for the same period in the prior
year. The increase was attributable to increased sales of video
production services to corporate clients.
Revenues from school products were $106,133 for the three
months ended March 31, 1997 compared to $133,987 for the quarter ended
March 1996 and $80,717 for the same quarter in 1995.
Cost of sales for the three months ended March 31, 1997 were
$198,421 as compared to $189,275 in 1996 and $139,424 in 1995.
The Company recorded a net loss of $10,789, less than $.01 per share,
for the quarter ending March 31, 1997, compared to a loss of $58,510 in
the quarter ending December 31, 1996.
General and administrative expenses increased to $136,099 in the
current quarter from $107,983 in the same quarter in the previous year,
and $125,913 in 1995. The increase is due to higher insurance, payroll
and maintenance costs.
2. Material Changes in Results of Operations:
During the quarter ended March 31, 1997 the Company experienced an
48% increase in sales of video production services over the same quarter
in the previous year. Both post production editing facilities were fully
utilized. Pending orders for commercial video production services on
March 31,1997 were $88,000.
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<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, 1997 Rosemary Comras
President
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<PAGE>
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<PERIOD-END> MAR-31-1996
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