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, 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 June 30, 1999 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 nine months ended June 30,
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
June 30, 1999
(unaudited)
June 30,
1999
-----------
ASSETS
<S> <C>
Current assets
Cash $ 6,346
Investments 819,887
Accounts receivables 129,060
Inventory 159,855
Prepaid expenses 37,492
-----------
Total current assets 1,152,640
Property and equipment at cost, less
accumulated depreciation 152,881
Other assets
Capitalized software - net of amortization 175,768
Deposits 13,125
Deferred income taxes 57,000
-----------
Total other assets 245,893
-----------
Total assets $ 1,551,414
===========
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C>
Current liabilities
Accounts payable $ 23,767
Accrued expenses 25,373
Notes payable - current portion 7,955
-----------
Total current liabilities 57,095
Notes payable, less current portion -
-----------
Total liabilities 57,095
-----------
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 (47,517)
Unrealized gain on investments, net of income tax 113,268
-----------
Total stockholder's equity 1,494,319
-----------
Total liabilities and stockholders equity $ 1,551,414
===========
</TABLE>
[FN]
See accompanying notes to financial statements
Page 3
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
For the Three Months Ended June 30, 1999 and 1998
(unaudited)
June 30, June 30,
1999 1998
---------- -----------
Revenues
<S> <C> <C>
Net sales
Products $ 71,087 $ 69,611
Services 69,228 225,524
----------- -----------
Total sales 140,315 295,135
Investment Income 1,683 18,665
----------- -----------
Total Revenues 141,998 313,800
Costs and expenses
Cost of sales
Products 42,145 78,858
Services 122,182 181,573
----------- -----------
Total cost of sales 164,327 260,431
General and administrative expenses 99,907 125,843
Interest expenses 245 122
----------- -----------
Total costs and expenses 264,479 386,396
----------- -----------
Income (loss) before income taxes (122,480) (72,596)
Provision for income taxes -- (24,000)
----------- -----------
Net income (loss) $ (122,480) $ (48,596)
=========== ===========
Earnings per share $ (.04) $ (.01)
=========== ===========
</TABLE>
[FN]
See accompanying notes to financial statements
Page 4
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
For the Nine Months Ended June 30, 1999 and 1998
(Unaudited)
June 30, June 30,
1999 1998
---------- ----------
Revenues
<S> <C> <C>
Net sales
Products $ 357,226 $ 269,190
Service 268,047 676,149
---------- -----------
TotaL sales 625,273 945,339
Investment income 71,651 67,979
---------- ----------
Total revenues 696,924 1,013,318
Costs and expenses:
Cost of sales
Products 155,253 192,902
Services 424,050 526,851
---------- ------------
Total cost of sales 579,303 719,753
General and administrative expenses 326,875 352,147
Interest expenses 999 2,111
---------- -----------
Total costs and expenses 907,177 1,074,011
Income(loss) before income taxes (210,253) (60,693)
Provision for income taxes -- (24,000)
---------- -----------
Net loss $(210,253) $ (36,693)
========== ===========
Earnings (loss) per share $ (.06) $ (.01)
========== ==========
<FN>
See accompanying notes to financial statements
</TABLE>
Page 5
<PAGE>
<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF CASH FLOWS
For the Nine Months Ended June 30, 1999 and 1998
(Unaudited)
June 30, June 30,
1999 1998
---------- -----------
<S> <C> <C>
Operating activities:
Net income $ (210,253) $ (36,693)
Adjustments to reconcile net income to
net cash provided by operating activities
Depreciation 89,662 78,120
Amortization of capitalized software 49,029 29,758
Deferred income taxes -- (11,252)
Changes in operating assets and liabilities:
(In)decrease in accounts receivable 246,625 50,705
De(In)crease in inventory and prepaid
expenses (20,026) 10,721
Decrease in accounts payable and
accrued expenses (99,641) (34,749)
----------- -----------
Net cash provided by operating activities 55,396 86,610
Investing Activities:
Additions to Investments 6,900 58,952
Additions to capitalized software (48,957) (33,025)
Purchases of property, plant & equipment (12,573) (60,357)
----------- ----------
Net cash utilized in investing activities (54,630) (34,430)
Financing activities:
Payment from shareholder advances -- (2,000)
Principal payment on credit lines,notes
payable and capital lease obligations ( 6,030) (26,508)
----------- -----------
Net cash utilized by financing activities (6,030) (28,508)
Decrease in cash (5,264) 23,672
Cash at beginning of year 11,610 1,637
----------- ----------
Cash at end of year $ 6,346 $ 25,309
=========== ==========
<CAPTION>
Supplemental disclosure of cash flow information:
June 30, June 30,
1999 1998
--------- ---------
<S> <C> <C>
Cash paid during the year for interest $ 999 $ 2,111
</TABLE>
[FN]
See accompanying notes to financial statements
Page 6
<PAGE>
INSTRUCTIVISION, INC.
NOTES TO INTERIM FINANCIAL STATEMENTS
June 30, 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 nine months ended June 30, 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 June 30, 1999 and 1998.
Part II - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
- ---------------------------------------------------------------------
Material changes in financial condition:
The working capital ratio as of June 30, 1999 was 4.95 : 1 as
compared to 8.93 : 1 as of June 30, 1998.
For the three months ended June 30, 1999, the Company had sales of
$140,315, compared to 295,135 in 1998 and $294,160 in 1997. Pre-tax
loss for the quarters ended June 30, 1999, 1998 and 1997 were $122,480,
$72,596, and $26,057, respectively.
Commercial video production revenues were lower for the third quarter
in a row, down 69% from the previous year. The Company has not recovered
from the loss of two major customers in 1998. In addition, new competitors
with low cost digital desktop editing equipment offer low cost alternatives
to the traditional broadcast editing facilities. Management believes that
the problem is temporary and has taken steps to intensify its marketing
activities and reduce personnel to make the video business profitable.
The Company's sales from school products have slightly increased over
the same quarter in the previous year. The Company has produced new
products to be released in the next fiscal quarter, which historically
is the main purchasing time for schools.
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 7
<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.
August 16, 1999 Rosemary Comras
President and
Chief Accounting Officer
Page 8
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> JUN-30-1999
<CASH> 6346
<SECURITIES> 0
<RECEIVABLES> 129060
<ALLOWANCES> 0
<INVENTORY> 159855
<CURRENT-ASSETS> 1152640
<PP&E> 1601725
<DEPRECIATION> 1448844
<TOTAL-ASSETS> 1551414
<CURRENT-LIABILITIES> 57095
<BONDS> 0
<COMMON> 3350
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1551414
<SALES> 140315
<TOTAL-REVENUES> 141998
<CGS> 164327
<TOTAL-COSTS> 264478
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 245
<INCOME-PRETAX> (122480)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (122480)
<EPS-BASIC> (.04)
<EPS-DILUTED> (.04)
</TABLE>
