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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, 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 November 26, 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 October 31, 1997
INDEX
Page
Number
------
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements.
Consolidated Balance Sheets
October 31, 1997 (Unaudited) and July 31, 1997 3
Consolidated Statements of Operations (Unaudited)
Three months ended October 31, 1997
and 1996 4
Consolidated Statements of Cash Flows (Unaudited)
Three months ended October 31, 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>
<TABLE>
<CAPTION>
COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
------------------------------
10/31/97 07/31/97
----------- -----------
<S> <C> <C>
Current Assets
Cash $ 117 $ 153
Marketable Equity Securities Available
For Sale 62,289 67,628
----------- -----------
$ 62,406 $ 67,781
=========== ===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Notes Payable to Related Entities $ 390,590 $ 390,590
Notes Payable - Other 20,100 20,100
Accounts Payable and Accrued Liabilities 42,002 37,791
Accounts Payable - Related Entities 234,164 223,701
----------- -----------
686,856 672,182
----------- -----------
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 37,254 42,593
Accumulated Deficit (1,502,590) (1,487,880)
----------- -----------
Total Stockholders' Deficit (624,450) (604,401)
----------- -----------
Total Liabilities and Stockholders' Deficit $ 62,406 $ 67,781
=========== ===========
See notes to financial statements
3
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the three months ended October 31,
-------------------------------------
1997 1996
-------------------------------------
<S> <C> <C>
Income $ -0- $ -0-
--------------- ----------------
General and Administrative Expenses
Professional Fees 735 539
Management Fees - Related Party 300 -0-
Patent Fees 2,945 473
All Other General and Administrative
Expenses 36 321
--------------- ----------------
4,016 1,333
--------------- ----------------
Loss From Operations (4,016) (1,333)
--------------- ----------------
Other Income (Expense)
Interest Expense (10,694) (10,242)
--------------- ----------------
Net Loss Before Income Taxes (14,710) (11,575)
Income Tax Benefit -0- -0-
--------------- ----------------
Net Loss $ (14,710) $ (11,575)
=============== ================
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
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
STATEMENTS OF CASH FLOWS
(Unaudited)
For the three months ended October 31,
-----------------------------------------
1997 1996
-----------------------------------------
<S> <C> <C>
Cash Flows From Operating Activities
Net Loss $ (14,710) $ (11,575)
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 4,212 842
Accounts Payable
Related Entity 10,462 (229)
--------- -----------
Total Adjustments 14,674 612
--------- -----------
Net Cash (Used For) Operations (36) (10,963)
--------- -----------
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 -0- 10,800
--------- -----------
Net Cash Provided by (Used For) Financing Activities -0- 10,800
--------- -----------
Increase (Decrease) in Cash (36) (163)
Balance at Beginning of Period 153 266
--------- -----------
Balance at End of Period $ 117 $ 103
========= ===========
See notes to financial statements
5
</TABLE>
<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, 1997; the company's financial position at October 31,
1997 and July 31, 1997; and the cash flows for the three-month
period ended October 31, 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 1997 Form 10-K.
The results for the three-month period ended October 31, 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 three-month period ended
October 31, 1997 was $3,135 more than that for the three-month
period ended October 31, 1996. This was due mainly to the increase
in patent fees of $2,945.
Working capital decreased by $20,049 from July 31, 1997 to October
31, 1997, due to the net loss of $14,710 and an decrease in
unrealized gain on investments of $5,339. 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 10/31/97 - $62,289
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, 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: December 4, 1997
8
<PAGE>
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<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-START> AUG-01-1997
<PERIOD-END> OCT-31-1997
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