UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from __________ to _________
Commission file number: 0-17878
VISION TEN, INC.
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(Exact Name of Registrant as Specified in its Charter)
Delaware 33-0340338
------------------------------- ----------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
180 Broad St., Carlstadt, NJ 07072
--------------------------------------------------
(Address of principal executive office) (Zip Code)
(201) 935-3000
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(Registrant's telephone number including area code)
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 (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days.
Yes /X/ No / /
The number of shares of registrant's Common Stock, $.01 par value, outstanding
as of May 15, 1996 was 16,521,031 shares.
<PAGE>
VISION TEN, INC.
INDEX
Page
Number
------
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheet 1
Statement of Operations 2
Statement of Cash Flows 3-4
Notes to Financial Statements 5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 6-7
PART II - OTHER INFORMATION 8
SIGNATURE 9
<PAGE>
VISION TEN, INC.
BALANCE SHEETS
ASSETS
March 31, December 31,
1996 1995
(Unaudited)
----------- -----------
CURRENT ASSETS:
Cash $-- $2,736
Accounts receivable, less allowance for
doubtful accounts 291,251 139,851
Inventories 302,529 346,140
Prepaids and Other 4,677 --
----------- -----------
TOTAL CURRENT ASSETS 598,457 488,727
PROPERTY AND EQUIPMENT, net
of accumulated depreciation 12,365 14,651
MARKETABLE SECURITIES 32,200 32,200
----------- -----------
$643,022 $535,578
=========== ===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable $157,382 $198,703
Advance from affiliate -- 6,412
Accrued expenses 80,904 12,214
----------- -----------
TOTAL CURRENT LIABILITIES 238,286 217,329
----------- -----------
NOTE PAYABLE TO STOCKHOLDER 650,000 650,000
----------- -----------
STOCKHOLDERS' DEFICIT:
Common Stock, $.01 par value, authorized
20,000,000 shares, 16,521,031 and 12,182,496
issued and outstanding, respectively 164,482 121,097
Additional paid-in-capital 7,836,097 7,804,482
Accumulated deficit (8,245,843) (8,257,330)
----------- -----------
TOTAL STOCKHOLDERS' DEFICIT (245,264) (331,751)
----------- -----------
$643,022 $535,578
=========== ===========
See notes to financial statements.
<PAGE>
VISION TEN, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31,
-----------------------------
1996 1995
------------ ------------
REVENUES $ 311,017 $ 88,148
COST OF GOODS SOLD 248,814 110,594
----------- -----------
GROSS PROFIT 62,203 (22,446)
----------- -----------
OPERATING EXPENSES:
Selling and marketing expenses 17,396 --
General and administrative expenses 33,320 32,519
----------- -----------
TOTAL OPERATING EXPENSES 50,716 32,519
----------- -----------
INCOME (LOSS) FROM OPERATIONS 11,487 (54,965)
----------- -----------
OTHER:
Other income -- 6,631
----------- -----------
-- 6,631
----------- -----------
NET INCOME (LOSS) $ 11,487 $ (48,334)
=========== ===========
NET INCOME (LOSS) PER COMMON SHARE:
Net income (loss) per common share $ ** $ (0.01)
=========== ===========
AVERAGE COMMON SHARES OUTSTANDING 14,351,763 6,564,000
=========== ===========
** - represents less than $.01 per share
See notes to financial statements.
<PAGE>
VISION TEN, INC.
STATEMENTS OF STOCKHOLDERS' DEFICIT
(Unaudited)
<TABLE>
<CAPTION>
Additional
Common Stock Paid-in Accumulated
Shares Amount Capital Deficit Total
------------------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Balance at December 31, 1995 12,182,496 $ 121,097 $ 7,804,482 $(8,257,330) $ (331,751)
Issuance of common stock for
services rendered 4,338,535 43,385 31,615 -- 75,000
Net Income -- -- -- 11,487 11,487
----------- ----------- ----------- ----------- -----------
Balance at March 31, 1996 16,521,031 $ 164,482 $ 7,836,097 $(8,245,843) $ (245,264)
=========== =========== =========== =========== ===========
</TABLE>
See notes to financial statements.
<PAGE>
VISION TEN, INC.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1996
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying financial statements as of March 31, 1996 and for the
three months ended March 31, 1996 and 1995 have not been audited by
independent auditors, but in the opinion of management, such unaudited
statements include all adjustments consisting of normal recurring accruals
necessary for a fair presentation of the financial position, the results of
operations and cash flows for the three months ended March 31, 1996.
The financial statements should be read in conjunction with the
financial statements and related notes concerning the Company's accounting
policies and other matters contained in the Company's annual report on Form
10-KSB, as amended, for the year ended December 31, 1995. The results for
the three months ended March 31, 1996 are not necessarily indicative of the
results expected for the full year. Certain prior year amounts have been
reclassified to conform with the current year's presentation.
5
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Three Months Ended March 31, 1996 compared to Three Months Ended March 31, 1995:
Sales for the three months ended March 31, 1996 were $311,017 as compared
to $88,148 for the three months ended March 31, 1995. The 253% or $222,869
increase was the result of several large customer orders received and delivered
during the three months ended March 31, 1996. Although the Company realized and
delivered additional orders during this period, it is felt taht these orders may
have satisfied such customers long-term requirements and that these orders may
not necessarily be indicative of the volume of such orders in future quarters in
the fiscal year ending December 31, 1996.
Gross profit for the three months ended March 31, 1996 was $62,203, or 20%
versus ($22,446), or (25%) for the year ago period, primarily due to the
increased level of sales and production of the Company's scanners.
Selling and marketing expenses during the three months ended March 31, 1996
were $17,396 and none for the year ago period, an increase of $17,396. The
increase is due to increased sales activity and the dedication of funds to the
Company's marketing efforts in 1996.
General and administrative expenses for the three months ended March 31,
1996 remained level as compared to the three months ended March 31, 1995.
LIQUIDITY AND CAPITAL RESOURCES
The Company's operating activities utilized approximately $3,000 during the
three months ended March 31, 1996. Accounts receivable increased by $151,400
from December 31, 1995 to March 31, 1996, reflecting the oincreased volume of
sales in the first quarter previously discussed. Management anticipates that
such receivable balances will be collected in due course in the Company's second
fiscal quarter. Offsetting the increase in accounts receivable, to some degree,
was the increase in the Company's accounts payable and accrued expenses durin
the three months ended March 31, 1996. Management anticipates that the entire
increase in such liabilities will be repaid during the Company's second fiscal
quarter.
The Company's chief executive officer, who holds a $650,000 note from the
Company, has agreed not to demand repayment of the note within twelve months.
Accordingly, the note has
6
<PAGE>
been reflected as a long term liability at March 31, 1996.
The Company's largest shareholder has agreed to fund working capital needs,
should they arise during the remainder of 1996. Management believes that these
sources of working capital will adequately meet the Company's needs through the
end of 1996.
7
<PAGE>
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS - NONE
Item 2. CHANGES IN SECURITIES - NONE
Item 3. DEFAULTS UPON SENIOR SECURITIES - NONE
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS - NONE
Item 5. OTHER INFORMATION - NONE
8
<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.
VISION TEN, INC.
/s/
-----------------------------
Dr. Alfred Thumim
Chief Executive Officer
/s/
-----------------------------
Thomas A. Carpenter
Accounting
Dated: May , 1996
9
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 291,251
<ALLOWANCES> 0
<INVENTORY> 302,529
<CURRENT-ASSETS> 598,457
<PP&E> 12,365
<DEPRECIATION> 0
<TOTAL-ASSETS> 643,022
<CURRENT-LIABILITIES> 238,286
<BONDS> 0
0
0
<COMMON> 164,482
<OTHER-SE> 7,836,097
<TOTAL-LIABILITY-AND-EQUITY> 643,022
<SALES> 311,017
<TOTAL-REVENUES> 311,017
<CGS> 248,814
<TOTAL-COSTS> 299,530
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 11,487
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 11,487
<EPS-PRIMARY> 0.000
<EPS-DILUTED> 0.000
</TABLE>
