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 June 30, 1997
Commission file Number 0-14411
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, 1997 there were 3,350,000 shares of Common
Stock, par value less than $.001 per share, outstanding.
Page 1
<PAGE>
INDEX
Page
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Part I: Financial Statement
Balance Sheets at June 30, 1997 and 4
September 30, 1996
Statement of Operations for the nine 5
months ended June 30, 1997 and 1996
Statement of Operations for the three 6
months ended June 30, 1997 and 1996
Statement of Cash Flows for the nine 7
months ended June 30, 1997 and 1996
Notes to interim Financial Statements 8
Part II: Management's discussions and analysis 9
of financial condition and results of
operations.
Signature 10
Page 2
<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 nine months ended June 30, 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.
Page 3
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC
BALANCE SHEETS
June 30, 1997
(unaudited)
June 30,
ASSETS 1997
------------
<S> <C>
Current assets
Cash $ 2,261
Investments 876,271
Accounts receivable - unaffiliated 267,951
Accounts receivable - affiliated 66,608
Inventory 218,554
Prepaid expenses 1,268
Deferred income taxes 10,000
-----------
Total current assets 1,442,913
Property and equipment at cost, less
accumulated depreciation 284,728
Other assets
Capitalized software - net of amortization 171,593
Deposits 13,125
Deferred income taxes 102,000
-----------
Total other assets 286,718
-----------
Total assets $2,014,359
===========
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C>
Current liabilities
Accounts payable $ 77,748
Accrued expenses 45,254
Notes payable - current portion 34,737
Notes payable - shareholder 9,000
-----------
Total current liabilities 166,739
Notes payable, less current portion 15,130
-----------
Total liabilities 181,869
-----------
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 354,915
Unrealized gain on Investments 49,007
-----------
Total stockholder's equity 1,832,490
-----------
Total liabilities and stockholders equity $2,014,359
===========
<FN>
See accompanying notes to financial statements
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
For the Nine Months Ended June 30, 1997 and 1996
(unaudited)
June 30, June 30,
1997 1996
------------ ------------
Revenues
<S> <C> <C>
Net sales
Products $ 287,499 $ 382,030
Services - unaffiliated 472,538 382,839
Services - affiliated 71,100 65,054
----------- ------------
Total sales 831,137 829,923
Dividend Income 43,735 --
----------- ------------
Total Revenues 874,872 829,923
Costs and expenses
Cost of sales
Products 235,595 254,049
Services - unaffiliated 330,571 301,683
Services - affiliated 31,238 11,640
----------- ------------
Total cost of sales 597,404 567,372
General and administrative expenses 381,420 347,767
Interest expenses 9,404 12,703
----------- ------------
Total costs and expenses 988,228 927,842
----------- ------------
Income (loss) before income taxes (113,356) (97,919)
Provision for income taxes (25,000) (34,000)
----------- ------------
Net income (loss) $ (88,356) $ (63,919)
=========== ============
Earnings per share $ ( .03) $ ( .02)
=========== ============
<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 June 30, 1997 and 1996
(unaudited)
June 30, 1997 June 30, 1996
-------------- -------------
Revenues
Net sales
<S> <C> <C>
Products $ 88,173 $ 120,017
Services - unaffiliated 173,011 137,340
Services - affiliated 32,976 29,054
----------- ------------
Total Sales 294,160 286,411
Dividend income 4,509 --
---------- ------------
Total revenues 298,669 286,411
Costs and expenses
Cost of sales
Products 66,412 94,660
Services - unaffiliated 127,990 103,143
Services - affiliated 6,200 5,203
----------- ------------
Total cost of sales 200,602 203,006
General and administrative expenses 122,510 111,638
Interest expenses 1,614 3,172
----------- ------------
Total costs and expenses 324,726 317,816
----------- ------------
Income (loss) before income taxes (26,057) (31,405)
Provision for income taxes (7,000) (10,000)
---------- ------------
Net income (loss) (19,057) (21,405)
=========== ============
less than less than
Earnings per share (.01) (.01)
=========== ============
<FN>
See accompanying notes to financial statements
Page 6
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF CASH FLOWS
For the Nine Months Ended June 30, 1997 and 1996
(Unaudited)
June 30, June 30,
1997 1996
----------- ------------
<S> <C> <C>
Operating activities
Net income $ (88,356) $ (63,919)
Adjustments to reconcile net income to
net cash provided by operating activities
Depreciation 85,197 99,009
Amortization of capitalized software 39,286 31,512
Deferred income taxes (25,000) (34,000)
Changes in operatg.assets and liabilities:
(In)decrease in accounts receivable
- unaffiliated (32,706) 9,449
- affiliated (5,125) 8,545
De(In)crease in inventory & prepaid expenses 64,857 116,936
Decrease in accounts payable and accrued
expenses (59,197) (26,928)
---------- -----------
Net cash provided by operating activities (21,044) 140,604
Investing Activities
Additions to Investments (827,264) --
Additions to capitalized software (14,351) (107,359)
Purchases of property, plant & equipment (69,901) (6,340)
---------- -----------
Net cash utilized in investg. activities (911,516) (113,699)
Financing activities
Proceeds from shareholder advances -- 18,050
Principal payment on credit lines,notes
payable and capital lease obligations (73,085) (44,041)
---------- ----------
Net cash (utilized) provided by
financing activities (73,085) (25,991)
In(de)crease in cash (1,005,645) 914
Cash at beginning of period 1,007,906 1,246
----------- -----------
Cash at end of period $ 2,261 $ 2,160
=========== ===========
<CAPTION>
Supplemental disclosure of cash flow information:
June 30, June 30,
1997 1996
--------- -------------
Cash paid during the year for
<S> <C> <C>
Interest $ 9,404 $ 12,702
Income taxes 30,000 62
Page 7
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<PAGE>
INSTRUCTIVISION, INC.
NOTES TO INTERIM FINANCIAL STATEMENTS
June 30, 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
June 30, 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 June 30, 1997
and 1996.
Page 8
<PAGE>
INSTRUCTIVISION, INC.
Part II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
- --------------------------------------------------------------------
1. Material Changes in Financial Condition:
The working capital ratio as of June 30 1997 is 8 : 1. Revenues
for the three months ended June 30, 1997 were $298,669, an increase
of 4% over the same period in the prior year.
Revenues from school products were $88,173 for the quarter
ended June 30, 1997 compared to $120,017 for the quarter ended
June 30, 1996 and $80,066 for the same quarter in 1995.
Cost of sales for the three months ended June 30, 1997 were
$200,602 as compared to $203,006 in 1996 and $178,556 in 1995.
General and administrative expenses decreased by 10% during the
current fiscal quarter over the previous quarter.
The Company recorded a net loss of 6%, less than $.01 per share,
for the quarter ending June 30, 1997.
For the nine months ended June 30, 1997 the Company shows an
increase of 5.4% in revenues over the same period in 1996. The
Company attributes the gain to income received from its investments.
Cost of sales for the 9 months ended June 1997 were 5% higher than
last year. Higher wages and higher printing costs contributed to the
the increase. The company plans to raise prices on some of its
products at the beginning of the school year to compensate for
increased cost of goods.
The Company reported a loss before taxes of 12% of revenues
for the nine months ended June 30, 1997. Net loss before taxes was
$113,356 compared to $97,919 for the nine months ended June 1996.
In 1995 the Company had a pretax gain of $277 during the same period.
2. Material Changes in Results of Operations:
During the quarter ended June 30, 1997 the Company experienced an
26% increase in video production revenue over the previous quarter.
Both post production editing facilities showed increased utilization.
Pending orders for commercial video production services on June 30,1997
were approximately $80,000. Revenues from educational sales were 26%
below June 1996 levels.
Page 9
<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, 1997 Rosemary Comras
President
Page 10
<PAGE>
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