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, 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:
(973) 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, 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 three months ended December 31, 1997 are not necessarily
indicative of the results that may be expected for the year ended
September 30, 1998. For further information refer to the financial
statements and footnotes thereto included in the Company's annual
report on Form 10-KSB for the year ended September 30, 1997.
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<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC
BALANCE SHEETS
December 31, 1997
(unaudited)
December 31,
1997
------------
ASSETS
<S> <C>
Current assets
Cash $ 19,748
Investments 889,478
Accounts receivable - unaffiliated 298,387
Accounts receivable - affiliated --
Inventory 199,379
Prepaid expenses --
Deferred income taxes 10,000
-----------
Total current assets 1,416,992
Property and equipment at cost, less
accumulated depreciation 265,351
Other assets
Capitalized software - net of amortization 175,811
Deposits 13,125
Deferred income taxes 4,100
-----------
Total other assets 193,036
-----------
Total assets $ 1,875,379
===========
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C>
Current liabilities
Accounts payable $ 41,880
Accrued expenses 69,536
Notes payable - current portion 11,635
-----------
Total current liabilities 123,051
Notes payable, less current portion 18,158
-----------
Total liabilities 141,209
-----------
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 321,897
Unrealized gain on investments, net of income tax 7,605
-----------
Total stockholder's equity 1,758,070
-----------
Total liabilities and stockholders equity $ 1,899,279
===========
</TABLE>
[FN]
See accompanying notes to financial statements
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<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
For the Three Months Ended December 31, 1997 and 1996
(unaudited)
December 31, December 31,
1997 1996
------------ ------------
Revenues
<S> <C> <C>
Net sales
Products $ 92,656 $ 93,193
Services - unaffiliated 210,854 99,435
Services - affiliated 24,638
---------- ------------
Total sales 303,510 217,266
Investment Income 44,157 34,884
---------- ------------
Total Revenues 347,667 252,150
Costs and expenses
Cost of sales
Products 55,991 92,397
Services - unaffiliated 127,724 84,938
Services - affiliated -- 21,046
----------- ------------
Total cost of sales 183,715 198,381
General and administrative expenses 119,372 122,811
Interest expenses 2,045 5,468
----------- ------------
Total costs and expenses 305,132 326,660
----------- ------------
Income (loss) before income taxes 42,535 (74,510)
Provision for income taxes 18,750 (16,000)
----------- ------------
Net income (loss) $ 23,785 (58,510)
=========== ===========
Earnings per share $ .01 $(.02)
=========== ===========
</TABLE>
[FN]
See accompanying notes to financial statements
Page 4
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF CASH FLOWS
For the Three Months Ended December 31, 1997 and 1996
(Unaudited)
December 31, December 31,
1997 1996
----------- ------------
<S> <C> <C>
Operating activities
Net income $ 23,785 $ (58,510)
Adjustments to reconcile net income to
net cash provided by operatg.activities
Depreciation 28,268 28,305
Amortization of capitalized software 13,976 11,160
Deferred income taxes -- (16,000)
Changes in operating assets and liabilities:
(In)decrease in accounts receivable
- unaffiliated 14,392 28,377
- affiliated 44,107 (1,306)
De(In)crease in inventory and prepaid
expenses 5,994 39,327
Decrease in accounts payable and
accrued expenses (40,791) (53,606)
----------- -----------
Net cash provided by operating activities 89,761 (22,253)
Investing Activities
Additions to Investments (44,157) (902,460)
Additions to capitalized software (8,925) --
Purchases of property, plant & equipment (4,480) (33,363)
----------- -----------
Net cash utilized in investing activities (57,562) (935,823)
Financing activities
Payment from shareholder advances (2,000) --
Principal payment on credit lines,notes
payable and capital lease obligations (12,088) (45,794)
----------- -----------
Net cash utilized by financing activities (14,088) (45,794)
Decrease in cash 18,111 (1,003,870)
Cash at beginning of year 1,637 1,007,906
----------- -----------
Cash at end of year $ 19,748 $ 4,036
=========== ===========
<CAPTION>
Supplemental disclosure of cash flow information:
December 31, December 31,
1997 1996
----------- -------------
Cash paid during the year for
<S> <C> <C>
Interest $ 2,045 $ 5,468
</TABLE>
[FN]
See accompanying notes to financial statements
Page 5
<PAGE>
INSTRUCTIVISION, INC.
NOTES TO INTERIM FINANCIAL STATEMENTS
December 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
December 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 periods ended December 31, 1997
and 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 31, 1997 was 8.7 : 1 as
compared to 7.7 : 1 as of December 31, 1996.
2. Material Changes in Results of Operations:
For the quarter ended December 31, 1997, the Company had revenues
of $347,667 as compared to $252,150 in the quarter ended December 31,
1996. The Company's sales backlog was approximately $155,000 on
December 31, 1997, principally from video production orders, as
compared to $92,000 for the quarter ended December 31, 1996.
The Company experienced an operating profit of $42.545 for the
quarter ending December 31, 1997, as compared to a loss of $74,510 in
December 31, 1996, and a loss of $52,013 in the 1995 quarter.
Management attributes the profit to increased video production business
from one corporate customer.
Revenues from software and textbooks show a continuing decrease
from the previous years. For the quarter ended December 31, 1997 sales
of these products were 21% less than the same quarter in 1996 and 37%
less than the 1995 quarter. Video production revenues rose during the
quarter ended December 31, 1997 by 112% over the quarter ended
December 31, 1996 and 100% over the 1995 quarter.
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<PAGE>
SIGNATURE
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 16, 1998 Rosemary Comras
President and
Chief Accounting Officer
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<PAGE>
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