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, 2000 0-14200
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CompuSonics Video Corporation
(Exact name of Registrant as specified in its charter)
Colorado 84-1001336
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(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
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(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 March 15, 2000, 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, 2000
INDEX
Page
Number
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements.
Consolidated Balance Sheets
January 31, 2000 (Unaudited) and July 31, 1999 3
Consolidated Statements of Operations (Unaudited)
Three and Six months ended January 31, 2000
and 1999 4
Consolidated Statements of Cash Flows (Unaudited)
Six months ended January 31, 2000 and 1999 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6-7
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 7
Signature Page 8
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<CAPTION>
COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
------------------------------
01/31/2000 07/31/1999
----------- -----------
<S> <C> <C>
Current Assets
Cash $ 6,028 $ 48,563
Accounts Receivable - Related Parties 34,259 30,254
Interest Receivable 9,164 1,603
Notes Receivable - Related Party 150,000 150,000
Prepaid Assets 920 614
Marketable Equity Securities Available
For Sale 61,399 88,984
----------- -----------
Total Current Assets 261,770 320,018
Other Assets
Equipment 45,896 45,896
Less Accumulated Depreciation (40,697) (39,510)
----------- -----------
Total Other Assets 5,199 6,386
----------- -----------
Total Assets $ 266,969 $ 326,404
=========== ===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Notes Payable to Related Entities $ 527,440 $ 552,440
Notes Payable - Other 20,100 20,100
Accounts Payable and Accrued Liabilities 54,388 66,807
Accounts Payable - Related Entities 336,021 307,741
----------- -----------
937,949 947,088
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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 36,364 63,949
Accumulated Deficit (1,548,230) (1,525,519)
----------- -----------
Total Stockholders' Deficit (670,980) (620,684)
----------- -----------
Total Liabilities and Stockholders' Deficit $ 266,969 $ 326,404
=========== ===========
See notes to financial statements
3
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<TABLE>
<CAPTION>
COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the three months ended January 31, For the six months ended January 31,
------------------------------------- -----------------------------------
2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Consulting Fee Income $ 49,250 $ 42,708 $ 99,082 $ 67,708
---------------- --------------- --------------- ----------------
General and Administrative Expenses
Staff Salary 33,675 21,000 70,029 37,500
Professional Fees 7,693 881 10,079 2,049
Management Fees - Related Party 1,750 750 3,390 1,500
Patent Fees 3,640 3,212 3,640 3,212
All Other General and Administrative
Expenses 5,211 4,200 12,773 8,314
---------------- --------------- --------------- ----------------
51,969 30,043 99,911 52,575
---------------- --------------- --------------- ----------------
Net Income (Loss) From Operations (2,719) 12,666 (829) 15,134
---------------- --------------- --------------- ----------------
Other Income (Expense)
Interest Income 3,781 -0- 7,562 -0-
Interest Expense (14,613) (10,955) (29,443) (21,929)
---------------- --------------- --------------- ----------------
(10,832) (10,955) (21,881) (21,929)
Net Income (Loss) Before Income Taxes (13,551) 1,711 (22,710) (6,795)
Income Tax Benefit -0- -0- -0- -0-
---------------- --------------- --------------- ----------------
Net Income (Loss) $ (13,551) $ 1,711 $ (22,710) $ (6,795)
================ =============== =============== ================
Weighted Average Number
of Common Shares 160,006,250 160,006,250 160,006,250 160,006,250
================ =============== =============== ================
Net Loss Per Common Share $ (0.00) $ 0.00 $ (0.00) $ (0.00)
================ =============== =============== ================
See notes to Financial Statements
4
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<CAPTION>
COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES
STATEMENTS OF CASH FLOWS
(Unaudited)
For the six months ended January 31,
--------------------------------------------
2000 1999
--------------------------------------------
<S> <C> <C>
Cash Flows From Operating Activities
Net Loss $ (22,710) $ (6,795)
Adjustments to Reconcile Net Loss to Net
Cash Used by Operating Activities
Depreciation 1,187 -0-
Change in Assets and Liabilities
(Increase) Decrease In:
Accounts Receivable and Accrued Assets (11,872) (5,248)
Increase (Decrease) In:
Accounts Payable and Accrued Liabilities (12,418) (1,104)
Accounts Payable Related Entity 28,278 20,515
----------- -----------
Total Adjustments 5,175 14,164
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Net Cash (Used For) Operations (17,535) 7,369
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Cash Provided by (Used For) Investing Activities -0- -0-
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Net Cash Provided by Investing Activities -0- -0-
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Cash Provided by (Used For) Financing Activities
Proceeds From Notes Payable - Related (25,000) 4,000
----------- -----------
Net Cash Provided by (Used For) Financing Activities (25,000) 4,000
----------- -----------
Increase (Decrease) in Cash (42,535) 11,369
Balance at Beginning of Period 48,563 77
----------- -----------
Balance at End of Period $ 6,028 $ 11,447
=========== ===========
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 six-month period ended
January 31, 2000; the company's financial position at January 31,
2000 and July 31, 1999; and the cash flows for the six-month period
ended January 31, 2000 and 1999. 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 1999 Form 10-K.
The results for the six-month period ended January 31, 2000 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 for the six-month period ended January 31, 2000 was
$15,915 more than that for the six-month period ended January 31,
1999. This was due mainly to the increase in staff salary expense of
$32,529, an increase in professional fees of $8,030 and an increase
in interest expense of $15,543, offset by the increase in consulting
fees of $31,374.
Working capital decreased by $49,109 from July 31, 1999 to January
31, 2000, due mainly to the net loss of $22,710 and a decrease in
unrealized gain on investments of $27,585. 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 1/31/00 - $61,399
These shares are used as collateral against the notes payable.
Ethan Matyas is the Company's Director of Professional Services. His
responsibilities with the Company are to oversee it's internet web
site development and maintenance business, and to formulate a plan
and pursue actions against those parties believed to be violating
the patents owned by the Company.
<PAGE>
No violators have been identified at this time, and the Company
continues to develop a plan to identify and pursue such potential
violators, but at this time, the Registrant does not have the funds
available to execute the plan.
During the first quarter, the Registrant had two employees to carry
out the Registrants web site development and maintenance business.
The Company currently has one client, who generates all of the
Company's revenue, and it is pursuing the adding of new clients.
There is no assurance that this will continue in the future or that
the effort to add new clients will be successful.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K:
(a) Exhibits
None
(b) Reports on Form 8-K
None
<PAGE>
COMPUSONICS VIDEO CORPORATION
Form 10-Q
For the quarter ended January 31, 2000
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 16, 2000
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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. Dollar
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-2000
<PERIOD-START> NOV-30-1999
<PERIOD-END> JAN-31-2000
<EXCHANGE-RATE> 1
<CASH> 6,028
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<EPS-BASIC> (0.00)
<EPS-DILUTED> (0.00)
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