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, 1999
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 March 31, 1999 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,
1999 are not necessarily indicative of the results that may be
expected for the year ended September 30, 1999. 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, 1998.
Page 2
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC
BALANCE SHEETS
March 31, 1999
(unaudited)
March 31,
1999
-----------
ASSETS
<S> <C>
Current assets
Cash $ 8,012
Investments 837,144
Accounts receivables 223,169
Inventory 168,557
Prepaid expenses 34,303
Deferred income taxes
-----------
Total current assets 1,271,185
Property and equipment at cost, less
accumulated depreciation 175,777
Other assets
Capitalized software - net of amortization 178,534
Deposits 13,125
Deferred income taxes 57,000
-----------
Total other assets 248,659
-----------
Total assets $ 1,695,621
===========
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C>
Current liabilities
Accounts payable $ 48,495
Accrued expenses 42,009
Notes payable - current portion 7,756
-----------
Total current liabilities 98,260
Notes payable, less current portion 2,063
-----------
Total liabilities 100,323
-----------
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 74,964
Unrealized gain on investments, net of income tax 91,766
-----------
Total stockholder's equity 1,595,298
-----------
Total liabilities and stockholders equity $ 1,695,621
===========
</TABLE>
[FN]
See accompanying notes to financial statements
Page 3
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
For the Six Months Ended March 31, 1999 and 1998
(unaudited)
March 31, March 31,
1999 1998
------------ ------------
Revenues
<S> <C> <C>
Net sales
Products $ 286,139 $ 199,579
Services 198,819 450,625
----------- ------------
Total sales 484,958 650,204
Investment Income 69,968 49,314
----------- -----------
Total Revenues 554,926 699,518
Costs and expenses
Cost of sales
Products 113,108 114,044
Services 301,868 345,278
----------- -----------
Total cost of sales 414,976 459,322
General and administrative expenses 226,968 226,304
Interest expenses 754 1,989
----------- -----------
Total costs and expenses 642,698 687,615
----------- -----------
Income (loss) before income taxes (87,772) 11,903
Provision for income taxes -- --
----------- -----------
Net income (loss) $ (87,772) $ 11,903
=========== ===========
less than
Earnings per share $ (.02) $ 0.01
=========== ===========
</TABLE>
[FN]
See accompanying notes to financial statements
Page 4
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
For the Three Months Ended March 31, 1999 and 1998
(Unaudited)
March 31, March 31,
1999 1998
---------- ----------
Revenues
<S> <C> <C>
Net sales
Products $ 165,299 $ 106,923
Service 53,619 239,771
---------- ----------
TotaL sales 218,918 346,694
Investment income 41,356 5,157
---------- ----------
Total revenues 260,274 351,851
Costs and expenses:
Cost of sales
Products 69,630 58,053
Services - unaffiliated 129,297 217,554
---------- ----------
Total cost of sales 198,927 275,607
General and administrative expenses 95,907 106,932
Interest expenses 513 ( 56)
---------- ----------
Total costs and expenses 295,347 382,483
Income(loss) before income taxes (35,073) (30,632)
Provision for income taxes (18,750)
---------- ----------
Net loss $ (35,073) $ (11,882)
========== ==========
less than
Earnings (loss) per share $ (.01) $ (.01)
========== ==========
<FN>
See accompanying notes to financial statements
</TABLE>
Page 6
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF CASH FLOWS
For the Six Months Ended March 31, 1999 and 1998
(Unaudited)
March 31, March 31,
1999 1998
---------- -----------
<S> <C> <C>
Operating activities
Net income $ (87,772) $ 11,903
Adjustments to reconcile net income to
net cash provided by operating activities
Depreciation 58,963 53,244
Amortization of capitalized software 21,923 21,882
Deferred income taxes 12,016
Changes in operating assets and liabilities:
(In)decrease in accounts receivable 152,516 110,249
De(In)crease in inventory and prepaid
expenses (25,539) (2,344)
Decrease in accounts payable and
accrued expenses (58,277) (74,313)
----------- -----------
Net cash provided by operating activities 61,814 132,637
Investing Activities
Additions to Investments (31,859) (26,330)
Additions to capitalized software (24,617) (16,066)
Purchases of property, plant & equipment (4,770) (54,807)
----------- -----------
Net cash utilized in investing activities (61,246) (97,203)
Financing activities
Payment from shareholder advances -- (2,000)
Principal payment on credit lines,notes
payable and capital lease obligations ( 4,166) (24,520)
----------- -----------
Net cash utilized by financing activities (4,166) (26,520)
Decrease in cash (3,598) 8,914
Cash at beginning of year 11,610 1,637
----------- -----------
Cash at end of year $ 8,012 $ 10,551
=========== ===========
<CAPTION>
Supplemental disclosure of cash flow information:
March 31, March 31,
1999 1998
---------- ----------
Cash paid during the year for
<S> <C> <C>
Interest $ 764 $ 1,725
</TABLE>
[FN]
See accompanying notes to financial statements
Page 5
<PAGE>
INSTRUCTIVISION, INC.
NOTES TO INTERIM FINANCIAL STATEMENTS
March 31, 1999
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, 1999
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
share outstanding. The weighted average number of common shares was
3,350,000 for the periods ended March 31, 1999 and 1998.
Page 6
<PAGE>
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 March 31, 1999 was 7.7 : 1 as
compared to 6.3 : 1 as of March 31, 1998.
For the six months ended March 31, 1999, the Company had revenues
of $554,926, compared to $699,518 for the same period ended March
1998 and $576,203 in 1997. Pre-tax earning (loss) for the six
months ended March 31, 1998, 1997, and 1996 were $(87,772), $11,903,
and $(69,299), respectively.
The Company recorded a loss of $35,073, or $0.01 per share, for the
quarter ending March 31, 1999, compared to a loss of $11,882 on
March 31, 1998 and $10,789 in 1997. Management attributes the loss to
changes in test formats being implemented in many states as a requirement
for promotion and graduation from high school, and the increased
production costs associated with release of new test preparation material.
Commercial video production revenues were lower for the second quarter
in a row. Lower priced computer editing provided by small independent
operators are becomming a serious competitor for the Company in the
corporate training business.
Cost of good sold and G & A expenses were lower in the quarter ended
March 1999 due to elimination of personnel associated with school
sales, customer support and fulfillment. As of October 1998 the company
has transferred the marketing, sales and distribution of its educational
products to Queue Inc. Management expects to further reduce expenses
during the next fiscal quarter ended June 1999.
Management reports that the company's operations are year 2000
compliant. It further believes that any Y2K problem of any of its customers
or vendors would not have a material impact on the company's operations.
Page 8
<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 17, 1999 Rosemary Comras
President and
Chief Accounting Officer
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<PAGE>
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<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
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