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Previous: CODED COMMUNICATIONS CORP /DE/, 10QSB, 1997-11-05 |
Next: RAMTRON INTERNATIONAL CORP, SC 13D, 1997-11-05 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 1997
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.
(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
(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 November 3, 1997 was 15,303,796 shares.
<PAGE>
VISION TEN, INC.
INDEX
Page
----------
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
Balance Sheets 1
Statements of Operations 2
Statement of Stockholders' Deficit 3
Statements of Cash Flows 4
Notes to Financial Statements 5
Item 2 - Management's Discussion and Analysis or
Plan of Operation 6
PART II - OTHER INFORMATION 7
SIGNATURE 8
<PAGE>
<TABLE>
<CAPTION>
VISION TEN, INC.
BALANCE SHEETS
September 30, December 31,
1997 1996
------------------- -----------------
(Unaudited)
ASSETS
<S> <C> <C>
CURRENT ASSETS:
Cash $ 6,630 $ 34,004
Accounts receivable, net of allowance for
doubtful accounts 115,571 119,710
Other receivables 32,200 32,200
Inventories 428,722 317,507
------------------- -----------------
TOTAL CURRENT ASSETS 583,123 503,421
PROPERTY AND EQUIPMENT, net of
accumulated depreciation 1,206 8,035
------------------- -----------------
$ 584,329 $ 511,456
=================== =================
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable $ 62,296 $ 56,757
Advance form affiliate 173,677 68,481
Accrued expenses 72,804 72,804
------------------- -----------------
TOTAL CURRENT LIABILITIES 308,777 198,042
------------------- -----------------
NOTE PAYABLE TO STOCKHOLDER 650,000 650,000
------------------- -----------------
STOCKHOLDERS' DEFICIT:
Common stock, $.01 par value, 20,000,000 shares authorized,
15,303,796 issued and outstanding 152,310 152,310
Additional paid-in-capital 7,848,269 7,848,269
Accumulated deficit (8,375,027) (8,337,165)
------------------- -----------------
TOTAL STOCKHOLDERS' DEFICIT (374,448) (336,586)
------------------- -----------------
$ 584,329 $ 511,456
=================== =================
See notes to financial statements.
-1-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
VISION TEN, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
` Three Months ended September 30, Nine Months Ended September 30,
---------------------------------------------------------------------------------
1997 1996 1997 1996
------------------ ----------------- ------------------ -----------------
<S> <C> <C> <C> <C>
REVENUES $ 19,145 $ 39,171 $ 58,298 $ 448,933
COST OF GOODS SOLD 14,359 26,378 43,724 333,700
------------------ ------------------ ------------------ ----------------
GROSS PROFIT 4,786 12,793 14,574 115,233
------------------ ------------------ ------------------ ----------------
OPERATING EXPENSES:
Selling and marketing expenses 1,436 10,737 6,117 50,679
General and administrative expenses 2,292 4,516 19,319 42,432
Product development 6,000 6,000 27,000 27,000
------------------ ------------------ ------------------ ----------------
TOTAL OPERATING EXPENSES 9,728 21,253 52,436 120,111
------------------ ------------------ ------------------ ----------------
LOSS FROM OPERATIONS (4,942) (8,460) (37,862) (4,878)
------------------ ------------------ ------------------ ----------------
NET LOSS $ (4,942) $ (8,460)$ (37,862) $ (4,878)
================== ================== ================== ================
NET LOSS PER COMMON
SHARE $ ** $ ** $ ** $ **
================== ================== ================== ================
AVERAGE COMMON SHARES
OUTSTANDING 15,303,796 10,164,000 15,303,796 13,743,146
================== ================== ================== ================
** represents less than $.01 per share
See notes to financial statements.
-2-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
VISION TEN, INC.
STATEMENT OF STOCKHOLDERS' DEFICIT
(Unaudited)
Additional
Common Stock Paid-in Accumulated
-----------------------------------
Shares Amount Capital Deficit Total
--------------- ---------------- ---------------- ----------------- ---------------
<S> <C> <C> <C> <C> <C>
Balance at December 31, 1996 $ 15,303,796 $ 152,310 $ 7,848,269 $ (8,337,165) $ (336,586)
Net loss - - - (37,862) (37,862)
--------------- ---------------- ---------------- ----------------- ---------------
Balance at September 30, 1997
$ 15,303,796 $ 152,310 $ 7,848,269 $ (8,375,027) $ (374,448)
=============== ================ ================ ================= ===============
See notes to financial statements.
</TABLE>
-3-
<PAGE>
<TABLE>
<CAPTION>
VISION TEN, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended September 30,
------------------------------------------
1997 1996
------------------- -------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (37,862) $ (4,878)
------------------- -------------------
Adjustments to reconcile net income (loss) to net cash
used in operating activities:
Depreciation 6,829 4,339
Issuance of common stock - 75,000
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 4,139 (93,384)
(Increase) decrease in inventories (111,215) 5,055
Increase in prepaid expenses and other current assets - (4,100)
Increase (decrease) in accounts payable 5,539 (120,038)
Increase in advance from affiliate 105,196 75,082
Increase (decrease) in accrued expenses - 60,590
------------------- -------------------
TOTAL ADJUSTMENTS 10,488 2,544
------------------- -------------------
NET CASH USED IN OPERATING ACTIVITIES (27,374) (2,334)
------------------- -------------------
NET DECREASE IN CASH (27,374) (2,334)
CASH, beginning of period 34,004 2,736
------------------- -------------------
CASH, end of period $ 6,630 $ 402
=================== ===================
See notes to financial statements.
-4-
</TABLE>
<PAGE>
VISION TEN, INC.
NOTES TO FINANCIAL STATEMENTS
NINE MONTHS ENDED SEPTEMBER 30, 1997
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying financial statements as of September 30, 1997 and for
the nine months ended September 30, 1997 and 1996 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 nine months
ended September 30, 1997.
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, for the year ended December 31, 1996. The
results for the nine months ended September 30, 1997 are not
necessarily indicative of the results expected for the full year ending
December 31, 1997. Certain prior year amounts have been reclassified to
conform with the current year's presentation.
-5-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OR
PLAN OF OPERATION
GENERAL COMMENTS
This Management's Discussion and Analysis or Plan of Operation contains forward
looking statements as defined in the private securities litigation reform act of
1995. Such statements relating to future events and financial performance are
forward looking statements that involve risk and uncertainty, detailed from time
to time in the Company's securities and exchange commission filings.
RESULTS OF OPERATIONS
The net loss was $37,862 for the nine months ended September 30, 1997 as
compared to a net loss of $4,878 for the nine months ended September 30, 1996.
Net loss was $4,942 for the three months ended September 30, 1997 as compared to
a net loss of $8,460 for the three months ended September 30, 1996.
Sales for the nine months ended September 30, 1997 were $58,298 as compared to
$448,933 for the nine months ended September 30, 1996. The 87% or $390,635
decrease was the result of primarily one customer having placed a large order
during the three months ended March 31, 1996 which satisfied their long term
requirements for the Company's products and did not place any orders during the
nine months ended September 30, 1997. Management anticipates receiving such
orders in the future quarters, however there is no assurance that these orders
will be placed.
Selling and marketing expenses during the nine months ended September 30, 1997
were $6,117 and $50,679 for the year ago period, a decrease of $44,562. The
decrease is due to a reduction in sales personnel in 1997.
General and administrative expenses for the nine months ended September 30, 1997
were $19,319 as compared to $42,432 for the nine months ended September 30,
1996. The decrease is primarily due to the termination of leased operations in
Los Angeles, California in December 1996 and the elimination of the related
expenses.
Product development costs during the nine months ended September 30, 1997
remained constant as compared to the year ago period.
LIQUIDITY AND CAPITAL RESOURCES
The Company's operating activities utilized approximately $27,000 during the
nine months ended September 30, 1997. Accounts receivable decreased by $4,139
from December 31, 1996 to September 30, 1997. Management anticipates that such
receivable balances will be collected in due course in the Company's next two
fiscal quarters. In addition, accounts payable increased during this period by
approximately $5,539. Inventories increased by approximately $111,000 during
this period.
-6-
<PAGE>
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 been reflected as a long term liability at September
30, 1997.
The Company's largest shareholder has agreed to fund working capital needs,
should they arise during the remainder of 1997. Management believes that these
sources of working capital will adequately meet the Company's needs through the
end of 1997.
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
-7-
<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
Dr. Alfred Thumim
Chief Executive Officer
/s/ Thomas A. Carpenter
Thomas A. Carpenter
Controller and Chief Accounting
Officer
Dated : November 3, 1997
-8-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000848101
<NAME> VISION TEN
<MULTIPLIER> 1
<CURRENCY> dollars
<S> <C>
<PERIOD-TYPE> 9-mos
<FISCAL-YEAR-END> dec-31-1997
<PERIOD-START> jan-01-1997
<PERIOD-END> sep-30-1997
<EXCHANGE-RATE> 1
<CASH> 6,630
<SECURITIES> 0
<RECEIVABLES> 147,771
<ALLOWANCES> 0
<INVENTORY> 428,722
<CURRENT-ASSETS> 583,123
<PP&E> 53,031
<DEPRECIATION> 51,825
<TOTAL-ASSETS> 584,329
<CURRENT-LIABILITIES> 308,777
<BONDS> 650,000
0
0
<COMMON> 8,000,579
<OTHER-SE> (8,375,027)
<TOTAL-LIABILITY-AND-EQUITY> 584,329
<SALES> 58,298
<TOTAL-REVENUES> 58,298
<CGS> 43,724
<TOTAL-COSTS> 14,574
<OTHER-EXPENSES> 52,436
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (37,892)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (37,892)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
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