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Previous: FFTW FUNDS INC, PRES14A, 1998-08-13 |
Next: MAPICS INC, 10-Q, 1998-08-13 |
<PAGE>
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 June 30, 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 August 11, 1998 was 15,303,796 shares.
<PAGE>
VISION TEN, INC.
INDEX
Page
Number
----------
PART I - FINANCIAL INFORMATION
Item 1 - 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 or
Plan of Operation 5
PART II - OTHER INFORMATION 6
SIGNATURE 7
<PAGE>
<TABLE>
<CAPTION>
VISION TEN, INC.
BALANCE SHEETS
June 30, December 31,
1998 1997
------------------- ------------------
(Unaudited)
ASSETS
<S> <C> <C>
CURRENT ASSETS:
Cash $ 40,231 $ 12,110
Accounts receivable, net of allowance for
doubtful accounts of $98,000 169,746 84,745
Other receivables - 32,200
Inventories 297,400 309,868
------------------- ------------------
TOTAL CURRENT ASSETS 507,377 438,923
PROPERTY AND EQUIPMENT, net of
accumulated depreciation of $53,031 - -
------------------- ------------------
$ 507,377 $ 438,923
=================== ==================
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 29,114 $ 12,885
Advance from affiliate 224,252 178,550
------------------- ------------------
TOTAL CURRENT LIABILITIES 253,366 191,435
------------------- ------------------
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 7,848,268 7,848,269
Accumulated deficit (8,396,567) (8,403,091)
------------------- ------------------
TOTAL STOCKHOLDERS' DEFICIT (395,989) (402,512)
------------------- ------------------
$ 507,377 $ 438,923
=================== ==================
See notes to financial statements.
-1-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
VISION TEN, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months ended June 30, Six Months ended June 30,
----------------------------------------- ----------------------------------------------
1998 1997 1998 1997
---------------- --------------------- --------------------- ---------------------
<S> <C> <C> <C> <C>
REVENUES $ 90,427 $ 2,875 $ 178,304 $ 39,153
COST OF GOODS SOLD 66,832 2,156 142,523 29,365
-------------- --------------------- --------------------- ---------------------
GROSS PROFIT 23,595 719 35,781 9,788
--------------- --------------------- --------------------- ---------------------
OPERATING EXPENSES:
Selling and marketing expenses 3,590 1,372 7,752 4,681
General and administrative expenses 11,480 5,079 24,156 17,027
Product development 15,000 15,000 21,000 21,000
---------------- --------------------- --------------------- --------------------
TOTAL OPERATING EXPENSES 30,070 21,451 52,908 42,708
---------------- --------------------- --------------------- --------------------
LOSS FROM OPERATIONS (6,475) (20,732) (17,127) (32,920)
---------------- --------------------- --------------------- --------------------
OTHER INCOME
GAIN ON SALE OF MARKETABLE SECURITIES 23,651 - 23,651 -
---------------- --------------------- --------------------- --------------------
NET INCOME (LOSS) $ 17,176 $ (20,732) $ 6,524 $ (32,920)
=============== ===================== ==================== =====================
NET INCOME (LOSS) PER COMMON
SHARE $ ** $ ** $ ** $ **
=============== ===================== ==================== ====================
AVERAGE COMMON SHARES
OUTSTANDING 15,303,796 15,303,796 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)
Six Months Ended June 30,
------------------------------------------
1998 1997
------------------- -------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (loss) $ 6,524 $ (32,920)
------------------- -------------------
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation - 4,553
Gain on sale of marketable securities (23,651) -
Changes in assets and liabilities:
(Decrease) in accounts receivable (85,001) (8,008)
Decrease (increase) in inventories 12,468 (69,857)
Increase (decrease) in accounts payable and accrued expenses 16,228 (12,539)
------------------- -------------------
TOTAL ADJUSTMENTS (79,956) (85,851)
------------------- -------------------
NET CASH USED IN OPERATING ACTIVITIES (73,432) (118,771)
------------------- -------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of marketable securities 55,851 -
------------------ -------------------
NET CASH PROVIDED BY INVESTING ACTIVITIES 55,851 -
------------------- -------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Advances from affiliates 45,702 85,196
------------------ -------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 45,702 85,196
------------------- -------------------
NET INCREASE (DECREASE) IN CASH 28,121 (33,575)
CASH, beginning of period 12,110 34,004
------------------- -------------------
CASH, end of period $ 40,231 $ 429
=================== ===================
See notes to financial statements.
-3-
</TABLE>
<PAGE>
VISION TEN, INC.
NOTES TO FINANCIAL STATEMENTS
SIX MONTHS ENDED JUNE 30, 1998
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial statements and with the instructions to Form 10-QSB.
Accordingly, they do not include all of the information and disclosures
required for annual financial statements. These financial statements
should be read in conjunction with the financial statements and related
footnotes for the year ended December 31, 1997 included in the Form
10-KSB for the year then ended.
In the opinion of the Company's management, all adjustments (consisting
of normal recurring accruals) necessary to present fairly the Company's
financial position as of June 30, 1998, and the results of operations
and cash flows for the three-month and six-month periods ended June 30,
1998, and 1997 have been included.
The results of operations for the three-month and six-month periods
ended June 30, 1998, are not necessarily indicative of the results to
be expected for the full fiscal year. For further information, refer to
the financial statements and footnotes thereto included in the
Company's Form 10-KSB as filed with the Securities and Exchange
Commission for the year ended December 31, 1997.
-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 income was $6,524 for the six months ended June 30, 1998 as compared to
a loss of $32,920 for the six months ended June 30, 1997. Net income was $17,176
for the three months ended June 30, 1998 as compared to a net loss of $20,732
for the three months ended June 30, 1997. During the quarter ended June 30,
1998, the Company derived $23,651 in income from the sale of marketable
securities.
Sales for the six months ended June 30, 1998 were $178,304 as compared to
$39,153 for the six months ended June 30, 1997. The 355% or $139,151 increase
was the result of additional activity from existing customers and several new
customers that placed orders during the six months ended June 30,1998. However,
management cannot anticipate receiving such additional orders in future
quarters.
Selling and marketing expenses during the six months ended June 30, 1998 were
$7,752 compared to $4,681 for the six months ended June 30,1997, a increase of
$3,071.
General and administrative expenses for the six months ended June 30, 1998 were
$24,156 as compared to $17,027 for the six months ended June 30, 1997.
Product development costs remained constant compared to the six months ended
June 30, 1997.
LIQUIDITY AND CAPITAL RESOURCES
Cash used for operations during the six months ended June 30, 1998 was $73,432.
Accounts receivable increased by $85,001 from December 31, 1997 to June 30,
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 $16,228. Inventories decreased by
$12,468 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 June 30,
1998. The Company's largest shareholder has agreed to fund working capital
needs, should they arise
-5-
<PAGE>
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 June 30, 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 : August 12, 1998
-7-
<PAGE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 40,231
<SECURITIES> 0
<RECEIVABLES> 169,746
<ALLOWANCES> 0
<INVENTORY> 297,400
<CURRENT-ASSETS> 507,377
<PP&E> 53,031
<DEPRECIATION> 53,031
<TOTAL-ASSETS> 507,377
<CURRENT-LIABILITIES> 253,366
<BONDS> 650,000
0
0
<COMMON> 152,310
<OTHER-SE> (548,299)
<TOTAL-LIABILITY-AND-EQUITY> 507,377
<SALES> 178,304
<TOTAL-REVENUES> 178,304
<CGS> 142,523
<TOTAL-COSTS> 142,523
<OTHER-EXPENSES> 52,908
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 6,524
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,524
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
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