<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:
April 30, 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 June 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 April 30, 1996
INDEX
Page
Number
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements.
Consolidated Balance Sheets
April 30, 1996 (Unaudited) and July 31, 1995 3
Consolidated Statements of Operations (Unaudited)
Three and Nine months ended April 30, 1996
and 1995 4
Consolidated Statements of Cash Flows (Unaudited)
Nine months ended April 30, 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
04/30/96 07/31/95
Current Assets
Cash $ 302 $ 36
Marketable Securities Available
For Sale 69,408 94,252
---------- ----------
$ 69,710 $ 94,288
=========== ==========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Notes Payable to Related Entities $ 372,290 $ 351,290
Notes Payable - Other 20,100 20,100
Accounts Payable and Accrued Liabilities 35,687 35,062
Accounts Payable - Related Entities 184,230 153,471
---------- ---------
612,307 559,923
---------- ---------
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 44,373 69,217
Accumulated Deficit (1,427,856) (1,375,738)
----------- -----------
(542,598) (465,635)
----------- -----------
$ 69,710 $ 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 April 30,
1996 1995
Income $ -0- $ -0-
---------- -----------
General and Administrative Expenses
Professional Fees 264 894
Management Fees - Related Party -0- 690
Patent Fees 6,959 7,074
Travel -0- -0-
All Other General and Administrative
Expenses 84 45
---------- -----------
7,307 8,703
---------- -----------
Loss From Operations (7,307) (8,703)
---------- -----------
Other Income (Expense)
Interest Expense (10,121) (9,331)
---------- -----------
Net Loss Before Income Taxes (17,427) (18,034)
Income Tax Benefit -0- -0-
---------- -----------
Net Loss $ (17,427) $ (18,034)
========== ===========
Weighted Average Number
of Common Shares 160,006,250 160,006,250
=========== ===========
Net Loss Per Common Share $ (0) $ (0)
=========== ===========
For the nine months ended April 30,
1996 1995
Income $ -0- $ -0-
---------- -----------
General and Administrative Expenses
Professional Fees 1,575 1,502
Management Fees - Related Party 1,605 3,085
Patent Fees 17,654 7,074
Travel -0- 1,883
All Other General and Administrative
Expenses 504 455
---------- -----------
21,338 13,999
---------- -----------
Loss From Operations (21,338) (13,999)
---------- -----------
Other Income (Expense)
Interest Expense (30,781) (26,457)
Net Loss Before Income Taxes (52,119) (40,456)
Income Tax Benefit -0- -0-
---------- -----------
Net Loss $ (52,119) $ (40,456)
========== ===========
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
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COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
STATEMENTS OF CASH FLOWS
(Unaudited)
For the nine months ended April 30,
1996 1995
Cash Flows From Operating Activities
Net Loss $ (52,119) $ (40,456)
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 625 (8,430)
Accounts Payable
Related Entity 30,759 26,206
------- -------
Total Adjustments 31,385 17,775
------- -------
Net Cash (Used For) Operations (20,734) (22,681)
------- -------
Cash Provided by (Used For) Investing Activit -0- -0-
------- -------
Cash Provided by (Used For) Financing Activities
Proceeds From Notes Payable - Related 21,000 22,750
------- -------
Net Cash Provided by (Used For) Financing Activities 21,000 22,750
------- -------
Increase (Decrease) in Cash 266 69
Balance at Beginning of Period 36 62
------- -------
Balance at End of Period $ 302 $ 131
======= =======
See notes to financial statements
5
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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 nine- month period ended April 30, 1996; the company's
financial position at April 30, 1996 and July 31, 1995; and the cash flows
for the nine-month period ended April 30, 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 nine-month period ended April 30, 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 nine-month period ended April 30, 1996
was $11,663 more than that for the nine-month period ended April 30, 1995.
This was due mainly to the increase in patent fees of $10,580, an increase
in interest expense of $4,324 and a decrease in management fees and travel
of $3,363.
Working capital decreased by $76,963 from July 31, 1995 to April 30, 1996,
due to the net loss of $52,119 and the decrease in marketable securities
available for sale of $24,844. 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 4/30/96 - $69,408
6
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These shares are used as collateral against the notes payable.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K:
(a) Exhibits - None
(b) Reports on Form 8-K
A Form 8-K was filed on May 13, 1996 extending the Registrant's Class A &
Class B warrants from May 15, 1996 to May 15, 1997.
7
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COMPUSONICS VIDEO CORPORATION
Form 10-Q
For the quarter ended April 30, 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: June 13, 1996
8
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<FISCAL-YEAR-END> JUL-31-1996
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<PERIOD-END> APR-30-1996
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