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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 March 31, 1998
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 May 11, 1998 was 15,303,796 shares.
<PAGE>
VISION TEN INC.
INDEX
Page
Number
--------
PART I - FINANCIAL INFORMATION
Item I - Financial Statements
Balance sheets 1
Statements of Operations 2
Statements of Cash Flows 3
Notes to Financial Statements 4
Item 2 - Management's Discussion and Analysis of
Plan of Operation 5
PART II - OTHER INFORMATION 6
SIGNATURE 7
<PAGE>
<TABLE>
<CAPTION>
VISION TEN, INC.
BALANCE SHEETS
<S> <C> <C>
March 31, December 31,
1998 1997
------------------ ------------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 4,440 $ 12,110
Accounts receivable, net of allowance for
doubtful accounts of $98,000 140,595 84,745
Other receivables 32,200 32,200
Inventories 300,180 309,868
------------------ ------------------
TOTAL CURRENT ASSETS 477,415 438,923
PROPERTY AND EQUIPMENT, net of
accumulated depreciation of $53,031 - -
------------------ ------------------
$ 477,415 $ 438,923
================== ==================
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 26,467 $ 12,885
Advance from affiliate 214,112 178,550
------------------ ------------------
TOTAL CURRENT LIABILITIES 240,579 191,435
------------------ ------------------
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 (8,413,743) (8,403,091)
------------------ ------------------
TOTAL STOCKHOLDERS' DEFICIT (413,164) (402,512)
------------------ ------------------
$ 477,415 $ 438,923
================== ==================
See notes to financial statements.
-1-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
VISION TEN, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months ended March 31,
----------------------------------------------
1998 1997
--------------------- ---------------------
<S> <C> <C>
REVENUES $ 87,877 $ 36,278
COST OF GOODS SOLD 75,691 27,209
--------------------- ---------------------
GROSS PROFIT 12,186 9,069
--------------------- ---------------------
OPERATING EXPENSES:
Selling and marketing expenses 4,162 3,309
General and administrative expenses 12,676 11,948
Product development 6,000 6,000
--------------------- ---------------------
TOTAL OPERATING EXPENSES 22,838 21,257
--------------------- ---------------------
LOSS FROM OPERATIONS (10,652) (12,188)
--------------------- ---------------------
NET LOSS $ (10,652) $ (12,188)
===================== =====================
NET LOSS PER COMMON
SHARE $ ** $ **
===================== =====================
AVERAGE COMMON SHARES
OUTSTANDING 15,303,796 15,303,796
===================== =====================
** represents less than $.01 per share
See notes to financial statements.
-2-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
VISION TEN, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended March 31,
------------------------------------------
1998 1997
------------------- -------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (10,652) $ (12,188)
------------------- -------------------
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation - 2,276
Changes in assets and liabilities:
Increase in accounts receivable (55,850) (15,905)
Decrease (increase) in inventories 9,688 (29,633)
Increase (decrease) in accounts payable and accrued expenses 13,582 (54)
------------------- -------------------
TOTAL ADJUSTMENTS (32,580) (43,316)
------------------- -------------------
NET CASH USED IN OPERATING ACTIVITIES (43,232) (55,504)
------------------- -------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Advances from affiliates 35,562 21,500
------------------- -------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 35,562 21,500
------------------- -------------------
NET DECREASE IN CASH (7,670) (34,004)
CASH, beginning of period 12,110 34,004
------------------- -------------------
CASH, end of period $ 4,440 $ -
=================== ===================
See notes to financial statements.
-3-
</TABLE>
<PAGE>
VISION TEN, INC.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1998
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying financial statements as of March 31, 1998 and for the
three months ended March 31, 1998 and 1997 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, 1998.
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, 1997. The
results for the three months ended March 31, 1998 are not necessarily
indicative of the results expected for the full year ending December
31, 1998. Certain prior year amounts have been reclassified to conform
with the current year's presentation.
-4-
<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 $10,652 for the three months ended March 31, 1998 as compared
to a loss of $12,188 for the three months ended March 31, 1997.
Gross profit for the three months ended March 31, 1998 was $12,186, or 14%
versus ($9,069), or (25%) for the year ago period.
Sales for the three months ended March 31, 1998 were $87,877 as compared to
$36,278 for the three months ended March 31, 1997. The 142% or $51,599 increase
was the result of additional activity from existing customers and several new
customers that placed orders during the three months ended March 31, 1998.
However, management cannot anticipate receiving such additional orders in future
quarters.
Selling and marketing expenses during the three months ended March 31, 1998 were
$4,162 and $3,309 for the year ago period, a increase of $853.
General and administrative expenses for the three months ended March 31, 1998
were $12,676 as compared to $11,948 for the three months ended March 31, 1997.
Product development costs during the three months ended March 31, 1998 remained
constant as compared to the year ago period.
LIQUIDITY AND CAPITAL RESOURCES
The Company's operating activities utilized approximately $7,700 during the
three months ended March 31, 1998. Accounts receivable increased by $55,850 from
December 31, 1997 to March 31, 1998. 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 $13,600. Inventories decreased by approximately $9,700 during this
period.
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 March 31,
1998.
-5-
<PAGE>
The Company's largest shareholder has agreed to fund working capital needs,
should they arise during the remainder of 1998. Management believes that these
sources of working capital will adequately meet the Company's needs through the
end of 1998.
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
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
Number Description
27 Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter
ended March 31, 1998.
-6-
<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 : May 11, 1998
-7-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000848101
<NAME> VISION TEN INC.
<MULTIPLIER> 1
<CURRENCY> U.S.DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-31-1998
<PERIOD-END> MAR-31-1998
<EXCHANGE-RATE> 1
<CASH> 4,440
<SECURITIES> 0
<RECEIVABLES> 238,595
<ALLOWANCES> 0
<INVENTORY> 300,180
<CURRENT-ASSETS> 477,415
<PP&E> 53,031
<DEPRECIATION> 53,031
<TOTAL-ASSETS> 477,415
<CURRENT-LIABILITIES> 240,579
<BONDS> 650,000
0
0
<COMMON> 152,310
<OTHER-SE> (565,474)
<TOTAL-LIABILITY-AND-EQUITY> 477,415
<SALES> 87,877
<TOTAL-REVENUES> 87,877
<CGS> 75,691
<TOTAL-COSTS> 75,691
<OTHER-EXPENSES> 22,838
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (10,652)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (10,652)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
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