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:
January 31, 1996 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 March 13, 1996, 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 January 31, 1996
INDEX
Page
Number
------
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements.
Consolidated Balance Sheets
January 31, 1996 (Unaudited) and July 31, 1995 3
Consolidated Statements of Operations (Unaudited)
Six months ended January 31, 1996
and 1995 4
Consolidated Statements of Cash Flows (Unaudited)
Six months ended January 31, 1996 and 1995 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
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COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
01/31/96 07/31/95
Current Assets
Cash $ 31 $ 36
Marketable Securities Available
For Sale 71,188 94,252
$ 71,219 $ 94,288
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Notes Payable to Related Entities $ 363,890 $ 351,290
Notes Payable - Other 20,100 20,100
Accounts Payable and Accrued Liabilities 35,983 35,062
Accounts Payable - Related Entities 174,637 153,471
594,610 559,923
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 46,152 69,217
Accumulated Deficit (1,410,429) (1,375,738)
(523,391) (465,635)
$ 71,219 $ 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 January 31,
----------------------------------------
1996 1995
----------------------------------------
Income $ -0- $ -0-
------------------ ----------------
General and Administrative Expenses
Professional Fees (599) 256
Management Fees - Related Party 600 660
Patent Fees 1,120 -0-
Travel -0- 271
All Other General and Admin. Exp. 70 68
------------------ ----------------
1,191 1,255
------------------ ----------------
Loss From Operations (1,191) (1,255)
------------------ ----------------
Other Income (Expense)
Interest Expense (10,408) (9,174)
------------------ ----------------
Net Loss Before Income Taxes (11,600) (10,429)
Income Tax Benefit -0- -0-
------------------ ----------------
Net Loss $ (11,600) $ (10,429)
================== ================
Weighted Average Number
of Common Shares 160,006,250 160,006,250
================== ================
Net Loss Per Common Share $ (0) $ (0)
================== ================
For the six months ended January 31,
---------------------------------------
1996 1995
---------------------------------------
Income $ -0- $ -0-
---------------- -----------------
General and Administrative Expenses
Professional Fees 1,311 608
Management Fees - Related Party 1,605 2,395
Patent Fees 10,695 -0-
Travel -0- 1,883
All Other General and Admin. Exp. 420 411
---------------- -----------------
14,031 5,297
---------------- -----------------
Loss From Operations (14,031) (5,297)
---------------- -----------------
Other Income (Expense)
Interest Expense (20,660) (17,126)
---------------- -----------------
Net Loss Before Income Taxes (34,692) (22,422)
Income Tax Benefit -0- -0-
---------------- -----------------
Net Loss $ (34,692) $ (22,422)
================ ==============
Weighted Average Number
of Common Shares 160,006,250 160,006,250
================ =================
Net Loss Per Common Share $ (0) $ (0)
================ =================
See notes to financial statements
4
<PAGE>
COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
STATEMENTS OF CASH FLOWS
(Unaudited)
For the six months ended January 31,
------------------------------------
1996 1995
---------------------
Cash Flows From Operating Activities
Net Loss $ (34,692) $ (22,422)
Cash Used by Operating Activities
Change in Assets and Liabilities
Increase (Decrease) In:
Accounts Payable and Accrued
Liabilities 921 (9,261)
Accounts Payable
Related Entity 21,166 18,599
------- -------
Total Adjustments 22,087 9,338
------- -------
Net Cash (Used For) Operations (12,605) (13,085)
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 12,600 15,450
------- -------
Net Cash Provided by (Used For) Financing Activi 12,600 15,450
------- -------
Increase (Decrease) in Cash (5) 2,365
Balance at Beginning of Period 36 62
------- -------
Balance at End of Period $ 31 $ 2,427
======= =======
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 six-month period ended January 31, 1996;
the company's financial position at January 31, 1996 and July
31, 1995; and the cash flows for the six-month period ended
January 31, 1996 and 1995. 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 six-month period ended January 31, 1996
are not necessarily indicative of future financial results.
Item 2. Management's Discussion and Analysis of Financial Conditn and
Results of Operations.
The net loss from operations for the six-month period ended
January 31, 1996 was $12,270 more than that for the six-month
period ended January 31, 1995. This was due mainly to the
increase in patent fees of $10,695.
Working capital decreased by $57,756 from July 31, 1995 to
January 31, 1996, due to the net loss of $34,692 and the
decrease in marketable securities available for sale of
$23,064. 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 1/31/96 - $71,188
These shares are used as collateral against the notes payable.
6
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K:
(a) Exhibits - None
(b) Reports on Form 8-K
None
7
<PAGE>
COMPUSONICS VIDEO CORPORATION
Form 10-Q
For the quarter ended January 31, 1996
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: March 13, 1996
8
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