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, 2000
Commission File Number 0-14411
Instructivision, Inc.
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(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, 2000, 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 March 31, 2000 4
Statement of Operations for the six 5
months ended March 31, 2000 and 1999
Statement of Operations for the three 6
months ended March 31, 2000 and 1999
Statement of Cash Flows for the six 7
months ended March 31, 2000 and 1999
Notes to Interim Financial Statements 8
Part II: Management's Discussions and Analysis 8
of Financial Condition and Results of
Operations.
Signature 9
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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,
2000 are not necessarily indicative of the results that may
be expected for the year ended September 30, 2000. 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, 1999.
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<TABLE>
<CAPTION>
INSTRUCTIVISION, INC
BALANCE SHEETS
March 31, 2000
(unaudited)
March 31,
ASSETS 2000
------------
<S> <C>
Current assets
Cash $ 20,848
Investments 922,309
Accounts receivables 187,574
Inventory 192,379
Prepaid expenses 9,008
-----------
Total current assets 1,332,118
Property and equipment at cost, less
accumulated depreciation 119,504
Other assets
Capitalized software - net of amortization 190,789
Deposits 13,125
Deferred income taxes 31,000
-----------
Total other assets 234,914
-----------
Total assets $ 1,686,536
===========
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C>
Current liabilities
Accounts payable $ 42,117
Accrued expenses 136,220
Notes payable - current portion 2,063
-----------
Total current liabilities 180,400
-----------
Stockholders' 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 deficit (78,362)
Unrealized gain on Investments 155,930
-----------
Total stockholders' equity 1,506,136
-----------
Total liabilities and stockholders equity $ 1,686,536
===========
<FN>
See accompanying notes to financial statements
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</TABLE>
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<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
For the six months ended March 31, 2000 and 1999
(unaudited)
March 31, March 31,
2000 1999
----------- ----------
Revenues
<S> <C> <C>
Net Sales
Products $ 191,692 $ 286,139
Services 230,563 198,819
--------- ----------
Total Sales 422,255 484,958
Investment Income 106,836 69,968
--------- ----------
Total Revenues 529,091 554,926
Costs and expenses
Cost of sales
Products 152,539 113,108
Services 164,008 301,868
--------- ---------
Total cost of sales 316,547 414,976
General and administrative expenses 176,300 226,968
Interest expenses 229 754
--------- ----------
Total costs and expenses 176,529 642,698
--------- ----------
Income (loss) before income taxes 36,015 (87,772)
Provision for income taxes 8,100 --
--------- ----------
Net income (loss) $ 27,915 $ (87,772)
========= ==========
Earnings per share less than $ (0.02)
$ 0.01
========= ==========
<FN>
See accompanying notes to financial statements
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</TABLE>
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<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
For the Three Months Ended March 31, 2000 and 1999
(unaudited)
March 31, March 31,
2000 1999
----------- -----------
Revenues
<S> <C> <C>
Net sales
Products $ 97,579 $ 165,299
Services 105,437 53,619
----------- -----------
Total sales 203,016 218,918
Investment Income 26,506 41,356
----------- -----------
Total Revenues 229,522 260,274
Costs and expenses
Cost of sales
Products 71,286 69,630
Services 71,744 129,297
----------- ------------
Total cost of sales 143,030 198,927
General and administrative expenses 78,728 95,907
Interest expenses 89 513
----------- -----------
Total costs and expenses 221,847 295,347
----------- -----------
Income (loss) before income taxes 7,675 (35,073)
----------- -----------
Net income (loss) $ 7,675 $ (35,073)
=========== ===========
Earnings (loss) per share less than
$ .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, 2000 and 1999
(Unaudited)
March 31, March 31,
2000 1999
---------- ----------
<S> <C> <C>
Operating activities
Net income (loss) $ 27,915 $ (87,772)
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 35,911 58,963
Amortization of capitalized software 20,105 21,923
Loss on sale of assets 1,635 --
Changes in operating assets and liabilities:
Decrease in accounts receivable 16,068 152,516
De(In)crease in inventory & prepaid expenses 25,290 (25,539)
In(De)crease in accounts payable and accrued
expenses (5,507) (58,277)
---------- ----------
Net cash provided by operating activities 121,417 61,814
Investing activities
Net additions to investments (45,552) (31,859)
Net additions to capitalized software (58,019) (24,617)
Net purchases of property, plant & equipment 5,739 (4,770)
---------- ----------
Net cash utilized in investing activities (97,832) (61,246)
Financing activities
Principal payment on credit lines, notes
payable and capital lease obligations (3,978) (4,166)
---------- ----------
Net cash (utilized) provided by
financing activities (3,978) (4,166)
Increase in cash 19,607 (3,598)
Cash at beginning of period 1,241 11,610
---------- ----------
Cash at end of period $ 20,848 $ 8,012
========== ==========
<CAPTION>
Supplemental disclosure of cash flow information:
March 31, March 31,
2000 1999
--------- --------
<S> <C> <C>
Cash paid during the year for interest $ 229 $ 764
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INSTRUCTIVISION, INC.
NOTES TO INTERIM FINANCIAL STATEMENTS
March 31, 2000
(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, 2000 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, 2000 and 1999.
Item II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
The Company released two new supplemental teaching programs during
the quarter ended March 31, 2000: ESPA Success in Language Arts for
New Jersey's fourth grade test and a software program for high school
students preparing for the new HSPA (New Jersey high school proficiency
assessment) in Mathematics. The Company also completed production of two
educational video tapes in its new MATH MADE EASY video series.
Management believes that these new products, as well as additional
programs for Connecticut and Florida scheduled for release for the 2000/
2001 school year, will help increase educational product sales in the
fourth quarter of fiscal 2000 by more than 10% over the previous year.
For the three months ended March 31, 2000, the Company had net
sales of $203,016, 7% lower than the same period in 1999 due to lower
school sales. Revenues from commercial video services increased from
$53,619 in 1999 to $105,437 in the quarter just ended.
The Company reported a net income of $7,675, or less than $.01 per
share, on total revenues of $229,522 for the quarter ended March 31, 2000,
compared to a loss of $35,073, or $,01 per share, on revenues of $260,274
in the second quarter of 1999, and a net income of $20,060 in the prior
quarter.
Cost of sales were 70% of sales, compared to 80% of sales in the
previous quarter and 90% in the second quarter in fiscal 1999. The Company's
continuing efforts in cost reduction resulted in a reduction of 20% in
G&A expenses from the same quarter in 1999. The Company had a current
ratio on March 31, 2000 of 7:1.
Management is continuing its effort for cutting costs and expanding its
product line for the growing test preparation market in public schools.
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.
s/Rosemary Comras
May 13, 2000 Rosemary Comras
President and Chief
Accounting Officer
Page 9
<PAGE>
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<PERIOD-END> MAR-31-2000
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