<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter year ended: Commission file number:
October 31, 1995 0-14200
CompuSonics Video Corporation
(Exact name of Registrant as specified in its charter)
Colorado 84-1001336
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
7001 Orchard Lake Road - Suite 424
West Bloomfield, MI 48322-3608
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(810) 851-5651
Securities registered pursuant to Section 12 (b) of the Act:
None
Securities registered pursuant to Section 12 (g) of the Act:
Common Stock, $.001 Par Value
(Title of Class)
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 and, (2) has been subject to such filing
requirements for the past 90 days: Yes (X) No ( )
As of December 11, 1995, a total of 160,006,250 shares of common stock,
$.001 par value, were outstanding.
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COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
Form 10-Q Filing for the Quarter Ended October 31, 1995
INDEX
Page
Number
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements.
Consolidated Balance Sheets
October 31, 1995 (Unaudited) and July 31, 1995 3
Consolidated Statements of Operations (Unaudited)
Three months ended October 31, 1995
and 1994 4
Consolidated Statements of Cash Flows (Unaudited)
Three months ended October 31, 1995 and 1994 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 7
Signature Page 8
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COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
10/31/95 07/31/95
----------- ----------
Current Assets
Cash $ 140 $ 36
Marketable Equity Securities Available
For Sale 84,571 94,252
----------- ----------
$ 84,710 $ 94,288
-========== ==========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Notes Payable to Related Entities $ 362,490 $ 351,290
Notes Payable - Other 20,100 20,100
Accounts Payable and Accrued Liabilities 36,356 35,062
Accounts Payable - Related Entities 164,173 153,471
----------- ----------
583,119 559,923
----------- ----------
Stockholders' Deficit
Preferred Stock - Series A Convertible Stock
$.001 Par Value, 75,000,000 Shares
Authorized, -0- Shares Issued and Outstanding -0- -0-
Common Stock $.001 Par Value, 300,000,000
Shares Authorized, 160,006,250 Shares
Issued and Outstanding 160,006 160,006
Additional Paid-In Capital 680,880 680,880
Retained Earnings
Unrealized Gain on Available for Sale Securities 59,536 69,217
Accumulated Deficit (1,398,830) (1.375,738)
----------- ----------
Total Stockholders' Deficit (498,408) (465,635)
----------- ----------
Total Liabilities and Stockholders' Deficit $ 84,710 $ 94,288
=========== ==========
See notes to financial statements
3
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COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the three months ended October 31,
--------------------------------------
1995 1994
----------- -----------
Income $ -0- $ -0-
General and Administrative Expenses
Professional Fees 1,910 352
Management Fees - Related Party 1,005 1,735
Patent Fees 9,575 -0-
Travel -0- 1,612
All Other General and Administrative
Expenses 350 343
----------- -----------
12,840 4,042
----------- -----------
Loss From Operations (12,840) (4,042)
----------- -----------
Other Income (Expense)
Interest Expense (10,252) (7,952)
----------- -----------
Net Loss Before Income Taxes (23,092) (11,993)
Income Tax Benefit -0- -0-
----------- -----------
Net Loss $ (23,092) $ (11,993)
=========== ===========
Weighted Average Number
of Common Shares 160,006,250 160,006,250
=========== ===========
Net Loss Per Common Share $ (0.00) $ (0.00)
=========== ===========
See notes to financial statements
4
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COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
STATEMENTS OF CASH FLOWS
(Unaudited)
For the three months ended October 31,
--------------------------------------
1995 1994
---------- -----------
Cash Flows From Operating Activities
Net Loss $ (23,092) $ (11,993)
Adjustments to Reconcile Net Loss to Net
Cash Used by Operating Activities
Change in Assets and Liabilities
Increase (Decrease) In:
Accounts Payable and Accrued
Liabilities 1,294 (7,733)
Accounts Payable
Related Entity 10,702 9,259
---------- --------
Total Adjustments 11,996 1,526
---------- --------
Net Cash (Used For) Operations (11,097) (10,467)
---------- --------
Cash Provided by (Used For) Investing Activities -0- -0-
---------- --------
Net Cash Provided by Investing Activities -0- -0-
---------- --------
Cash Provided by (Used For) Financing Activities
Proceeds From Notes Payable - Related 11,200 10,450
---------- --------
Net Cash Provided by (Used For) Financing Activities 11,200 10,450
---------- --------
Increase (Decrease) in Cash 103 (17)
Balance at Beginning of Period 36 62
---------- --------
Balance at End of Period $ 140 $ 45
========== ========
See notes to financial statements
5
<PAGE>
COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
PART I. FINANCIAL INFORMATION
Item 1. Interim Financial Statements.
The accompanying consolidated financial statements of
CompuSonics Video Corporation and Subsidiaries have been
prepared by the company without audit. In the opinion of the
company's management, the financial statements reflect all
adjustments necessary to present fairly the results of
operations for the three-month period ended October 31, 1995;
the company's financial position at October 31, 1995 and July
31, 1995; and the cash flows for the three-month period ended
October 31, 1995 and 1994. Certain notes and other information
have been condensed or omitted from the interim financial
statements presented in this Quarterly Report on Form 10-Q.
Therefore, these financial statements should be read in
conjunction with the company's July 1995 Form 10-K.
The results for the three-month period ended October 31, 1995
are not necessarily indicative of future financial results.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
The net loss from operations for the three-month period ended
October 31, 1995 was $11,099 more than that for the
three-month period ended October 31, 1994. This was due mainly
to the increase in patent fees of $9,575 and an increase in
professional fees of $1,558.
Working capital decreased by $32,773 from July 31, 1995 to
October 31, 1995, due to the net loss of $23,092 and a
decrease in unrealized gain on investments of $9,681. In the
past, the Registrant has relied on a related company to
provide the working funds it has required but there is no
assurance that this will continue in future years.
The Registrant has the following marketable securities:
Williams Controls, Inc. 28,475 Common Shares
Cost - $25,035
Market Value at 10/31/95 - $84,535
These shares are used as collateral against the notes payable.
6
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PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K:
(a) Exhibits - None
(b) Reports on Form 8-K
On November 9, 1995, the Registrant reported the
extension of the Class A & Class B warrants from
November 15, 1995 to May 15, 1996.
7
<PAGE>
COMPUSONICS VIDEO CORPORATION
Form 10-Q
For the quarter ended October 31, 1995
Signature Page
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
COMPUSONICS VIDEO CORPORATION
(Registrant)
By s\ Robert R. Hebard
--------------------------------
Robert R. Hebard, Chief Executive Officer
& Chairman of the Board
Date Signed: December 13, 1995
8
<PAGE>
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