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, 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
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3 Regent Street, Livingston, NJ 07039
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(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, 2000, there were 3,350,000 shares of Common
Stock, par value less than $.001 per share, outstanding.
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INDEX
Page
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Part I: Financial Statement
Balance Sheets at June 30, 2000 4
Statement of Operations for the nine 5
months ended June 30, 2000 and 1999
Statement of Operations for the three 6
months ended June 30, 2000 and 1999
Statement of Cash Flows for the nine 7
months ended June 30, 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 nine months ended June 30,
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
June 30, 2000
(unaudited)
June 30,
ASSETS 2000
------------
<S> <C>
Current assets
Cash $ 900
Investments 808,417
Accounts receivables 140,143
Inventory 196,774
Prepaid expenses 8,560
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Total current assets 1,154,794
Property and equipment at cost, less
accumulated depreciation 103,120
Other assets
Capitalized software - net of amortization 184,474
Deposits 13,125
Deferred income taxes 31,000
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Total other assets 228,599
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Total assets $ 1,486,513
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<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C>
Current liabilities
Accounts payable $ 47,527
Accrued expenses 97,785
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Total current liabilities 145,312
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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 (184,272)
Unrealized gain on Investments 96,905
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Total stockholders' equity 1,341,201
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Total liabilities and stockholders equity $ 1,486,513
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<FN>
See accompanying notes to financial statements
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<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
For the nine months ended June 30, 2000 and 1999
(unaudited)
June 30, June 30,
2000 1999
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Revenues
<S> <C> <C>
Net Sales
Products $ 285,865 $ 357,226
Services 290,470 268,047
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Total Sales 576,335 625,273
Investment Income 110,617 71,651
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Total Revenues 686,952 696,924
Costs and expenses
Cost of sales
Products 247,738 155,253
Services 241,244 424,050
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Total cost of sales 488,982 579,303
General and administrative expenses 267,429 326,875
Interest expenses 271 999
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Total costs and expenses 756,682 907,177
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Income (loss) before income taxes (69,730) (210,253)
Provision for income taxes 8,265 --
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Net income (loss) $ (77,995) $(210,253)
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Earnings per share $ (0.02) $ (0.06)
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<FN>
See accompanying notes to financial statements
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<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF OPERATIONS
For the Three Months Ended June 30, 2000 and 1999
(unaudited)
June 30, June 30,
2000 1999
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Revenues
<S> <C> <C>
Net sales
Products $ 94,173 $ 71,087
Services 59,907 69,228
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Total sales 154,080 140,315
Investment Income 3,781 1,683
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Total Revenues 157,861 141,998
Costs and expenses
Cost of sales
Products 95,199 42,145
Services 77,236 122,182
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Total cost of sales 172,435 164,327
General and administrative expenses 91,129 99,907
Interest expenses 42 245
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Total costs and expenses 263,606 264,479
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Income (loss) before income taxes (105,745) (122,481)
Provision for income taxes 165 --
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Net income (loss) $(105,910) $(122,481)
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Earnings (loss) per share $ (0.03) $ (0.04)
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<FN>
See accompanying notes to financial statements
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<TABLE>
<CAPTION>
INSTRUCTIVISION, INC.
STATEMENT OF CASH FLOWS
For the Nine Months Ended June 30, 2000 and 1999
(Unaudited)
June 30, June 30,
2000 1999
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<S> <C> <C>
Operating activities
Net income (loss) $ (77,995) $(210,253)
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 52,295 89,662
Amortization of capitalized software 34,613 49,029
Disposal of equipment 9,435 --
Changes in operating assets and liabilities:
Decrease in accounts receivable 63,499 246,625
De(In)crease in inventory & prepaid expenses 21,343 (20,026)
In(De)crease in accounts payable and accrued
expenses 468 (99,641)
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Net cash provided by operating activities 103,658 55,396
Investing activities
Additions to investments (29,685) 6,900
Additions to capitalized software (66,212) (48,957)
Purchases of property, plant & equipment (2,061) (12,573)
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Net cash utilized in investing activities 97,958 (54,630)
Financing activities
Principal payment on credit lines, notes
payable and capital lease obligations (6,041) (6,030)
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Net cash (utilized) provided by
financing activities (6,041) (6,030)
Decrease in cash (341) (5,264)
Cash at beginning of period 1,241 11,610
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Cash at end of period $ 900 $ 6,346
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<CAPTION>
Supplemental disclosure of cash flow information:
June 30, June 30,
2000 1999
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<S> <C> <C>
Cash paid during the year for interest $ 271 $ 999
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INSTRUCTIVISION, INC.
NOTES TO INTERIM FINANCIAL STATEMENTS
June 30, 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 June 30, 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 June 30, 2000 and 1999.
Item II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
The Company entered the Connecticut education market with the first in
its new CMT Success series for the 8th and 4th grade Mathematics test.
The Company intends to release new software programs for the New Jersey and
Louisiana school market when the new school year begins in September. The
Company also completed production of the third video tape in its new MATH
MADE EASY video series.
Management believes that these new products will help the Company
increase school sales in the growing test preparation market.
For the nine months ended June 30, 2000, the Company had revenues of
$686,952, or $.20 per share, compared to $696,924 in the same period in 1999.
Sales from school products increased slightly during the current quarter
while revenues from video production services have decreased during the same
period. Sales of commercial video production services continue to be
negatively affected by the competition from low cost non-linear editing
facilities.
The Company reported a net loss of $.03 per share for the quarter,
compared to a loss of $.04 in the same quarter last year. The working capital
ratio as of June 30, 2000 was 7:1.
As the Company enters the fourth quarter of the fiscal year, when
70% of school purchases are normally made, management believes that the
Company's line of new school product will enable it to meet or exceed
previous years' sales.
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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
August 15, 2000 Rosemary Comras
President and Chief
Accounting Officer
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