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, 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 November 29, 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 October 31, 1996
INDEX
Page
Number
-------
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements.
Consolidated Balance Sheets
October 31, 1996 (Unaudited) and July 31, 1996 3
Consolidated Statements of Operations (Unaudited)
Three months ended October 31, 1996
and 1995 4
Consolidated Statements of Cash Flows (Unaudited)
Three months ended October 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
Signature Page 8
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COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
10/31/96 07/31/96
---------- ----------
Current Assets
Cash $ 103 $ 266
Marketable Equity Securities Available
For Sale 72,078 71,188
------------ ----------
Total Assets $ 72,181 $ 71,454
============ ==========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Notes Payable to Related Entities $ 384,090 $ 373,290
Notes Payable - Other 20,100 20,100
Accounts Payable and Accrued Liabilities 37,292 36,451
Accounts Payable - Related Entities 193,660 193,889
------------ -----------
635,142 623,730
------------ -----------
Stockholders' Deficit
Preferred Stock - Series A Convertible Stock (562,961) (552,276)
$.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 47,042 46,152
Accumulated Deficit (1,450,888) (1,439,315)
----------- -----------
Total Stockholders' Deficit (562,960) (552,276)
----------- -----------
Total Liabilities and Stockholders' Deficit $ 72,181 $ 71,454
=========== ===========
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
1996 1995
----------- ----------
Income $ -0- $ -0-
General and Administrative Expenses
Professional Fees 539 1,910
Management Fees - Related Party -0- 1,005
Patent Fees 473 9,575
All Other General and Administrative
Expenses 321 350
----------- ------------
1,333 12,840
Loss From Operations (1,333) (12,840)
----------- ------------
Other Income (Expense)
Interest Expense (10,242) (10,252)
----------- ------------
Net Loss Before Income Taxes (11,574) (23,092)
Income Tax Benefit -0- -0-
----------- ------------
Net Loss $ (11,574) $ (23,092)
=========== ============
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
<PAGE>
COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
STATEMENTS OF CASH FLOWS
(Unaudited)
For the three months ended October 31,
1996 1995
Cash Flows From Operating Activities
Net Loss $ (11,575) $ (23,092)
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 842 1,294
Accounts Payable
Related Entity (229) 10,702
----------- ----------
Total Adjustments 612 11,996
----------- ----------
Net Cash (Used For) Operations (10,963) (11,096)
----------- ----------
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 10,800 11,200
----------- ----------
Net Cash Provided by (Used For) Financing
Activies 10,800 11,200
----------- ----------
Increase (Decrease) in Cash (163) 103
Balance at Beginning of Period 266 36
----------- ----------
Balance at End of Period $ 103 $ 140
=========== ==========
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, 1996; the company's financial position at October
31, 1996 and July 31, 1996; and the cash flows for the three-month period ended
October 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 1996 Form 10-K.
The results for the three-month period ended October 31, 1996 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,
1996 was $11,507 less than that for the three-month period ended October 31,
1995. This was due mainly to the decrease in patent fees of $9,102, decrease in
management fees of $1,005 and a decrease in professional fees of $1,371.
Working capital decreased by $10,685 from July 31, 1996 to October 31,
1996, due to the net loss of $11,575 and an increase in unrealized gain on
investments of $890. 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 10/31/96 - $72,078
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 October 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: December 10, 1996
8
<PAGE>
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