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, 1997 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:
(248) 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 2, 1997, a total of 160,006,250 shares of common stock, $.001
par value, were outstanding.
<PAGE>
COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
Form 10-Q Filing for the Quarter Ended April 30, 1997
INDEX
Page
Number
---------
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements.
Consolidated Balance Sheets
April 30, 1997 (Unaudited) and July 31, 1996 3
Consolidated Statements of Operations (Unaudited)
Nine months ended April 30, 1997
and 1996 4
Consolidated Statements of Cash Flows (Unaudited)
Nine months ended April 30, 1997 and 1996 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
<PAGE>
COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
------------------------------
04/30/97 07/31/96
----------- -----------
<S> <C> <C>
Current Assets
Cash $ 391 $ 266
Marketable Securities Available
For Sale 71,188 71,188
----------- -----------
$ 71,579 $ 71,454
=========== ===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Notes Payable to Related Entities $ 386,390 $ 373,290
Notes Payable - Other 20,100 20,100
Accounts Payable and Accrued Liabilities 38,202 36,451
Accounts Payable - Related Entities 214,234 193,889
----------- -----------
658,926 623,730
----------- -----------
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 46,153 46,153
Accumulated Deficit (1,474,386) (1,439,315)
----------- -----------
(587,347) (552,276)
----------- -----------
$ 71,579 $ 71,454
=========== ===========
</TABLE>
See notes to financial statements
3
<PAGE>
COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
For the three months ended April 30, For the nine months ended April 30,
------------------------------------- -----------------------------------
1997 1996 1997 1996
------------------------------------- -----------------------------------
<S> <C> <C> <C> <C>
Income $ -0- $ -0- $ -0- $ -0-
--------------- ---------------- ---------------- ---------------
General and Administrative Expenses
Professional Fees 563 264 588 1,575
Management Fees - Related Party 900 -0- 900 1,605
Patent Fees (423) 6,959 2,463 17,654
All Other General and Administrative
Expenses 73 84 180 504
--------------- ---------------- ---------------- ---------------
1,113 7,307 4,131 21,338
--------------- ---------------- ---------------- ---------------
Loss From Operations (1,113) (7,307) (4,131) (21,338)
--------------- ---------------- ---------------- ---------------
Other Income (Expense)
Interest Expense (10,198) (10,121) (30,940) (30,781)
--------------- ---------------- ---------------- ---------------
Net Loss Before Income Taxes (11,312) (17,427) (35,071) (52,119)
Income Tax Benefit -0- -0- -0- -0-
--------------- ---------------- ---------------- ---------------
Net Loss $ (11,312) $ (17,427) $ (35,071) $ (52,119)
=============== ================ ================ ===============
Weighted Average Number
of Common Shares 160,006,250 160,006,250 160,006,250 160,006,250
=============== ================ ================ ===============
Net Loss Per Common Share $ (0) $ (0) $ (0) $ (0)
=============== ================ ================ ===============
</TABLE>
See notes to financial statements
4
<PAGE>
COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
For the nine months ended April 30,
-----------------------------------------
1997 1996
-----------------------------------------
<S> <C> <C>
Cash Flows From Operating Activities
Net Loss $ (35,071) $ (52,119)
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 1,751 625
Accounts Payable
Related Entity 20,345 30,759
--------- -----------
Total Adjustments 22,096 31,385
--------- -----------
Net Cash (Used For) Operations (12,975) (20,734)
--------- -----------
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 13,100 21,000
--------- -----------
Net Cash Provided by (Used For) Financing Activities 13,100 21,000
--------- -----------
Increase (Decrease) in Cash 125 266
Balance at Beginning of Period 266 36
--------- -----------
Balance at End of Period $ 391 $ 302
========= ===========
</TABLE>
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
nine-month period ended April 30, 1997; the company's financial position at
April 30, 1997 and July 31, 1996; and the cash flows for the nine-month period
ended April 30, 1997 and 1996. 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 nine-month period ended April 30, 1997 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, 1997
was $17,048 less than that for the nine-month period ended April 30, 1996. This
was due mainly to the decrease in patent fees of $15,191, decrease in management
fees of $705 and a decrease in professional fees of $987.
Working capital decreased by $35,071 from July 31, 1996 to April 30, 1997,
due to the net loss of $35,071. 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.
6
<PAGE>
The Registrant has the following marketable securities:
Williams Controls, Inc. 28,475 Common Shares
Cost - $25,035
Market Value at 04/30/97 - $71,188
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
On April 29, 1997, the Registrant filed a Form 8-K reporting the
extension date of the Class A and Class B warrants from May 15, 1997
to May 15, 1998.
7
<PAGE>
COMPUSONICS VIDEO CORPORATION
Form 10-Q
For the quarter ended April 30, 1997
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 11, 1997
8
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(Replace this text with the legend)
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<CIK> 0000777844
<NAME> CompuSonics Video Corporation
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> Jul-31-1997
<PERIOD-START> Aug-01-1996
<PERIOD-END> Apr-30-1997
<EXCHANGE-RATE> 1
<CASH> 391
<SECURITIES> 71,188
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 71,579
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 71,579
<CURRENT-LIABILITIES> 658,926
<BONDS> 0
0
0
<COMMON> 160,006
<OTHER-SE> (747,353)
<TOTAL-LIABILITY-AND-EQUITY> 71,579
<SALES> 0
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<TOTAL-COSTS> 4,131
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<INTEREST-EXPENSE> 30,940
<INCOME-PRETAX> (35,071)
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