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, 2000
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
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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
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(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
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THE NUMBER OF SHARES OF REGISTRANT'S COMMON STOCK, $.01 PAR VALUE, OUTSTANDING
AS OF JUNE 30, 2000 was 15,303,796 shares.
<PAGE>
VISION TEN, INC.
BALANCE SHEET
JUNE 30, 2000
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 2,128
Accounts receivable, less allowance for
doubtful accounts of $163,000 9,833
Inventories 56,896
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TOTAL CURRENT ASSETS 68,857
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LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 53,683
Advance from affiliate 201,068
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TOTAL CURRENT LIABILITIES 254,751
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NOTE PAYABLE TO STOCKHOLDER 650,000
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STOCKHOLDERS' DEFICIT:
Common Stock, $.01 par value, authorized 20,000,000
shares, 15,303,796 issued and outstanding 152,310
Additional paid-in-capital 7,848,269
Accumulated deficit (8,836,473)
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TOTAL STOCKHOLDERS' DEFICIT (835,894)
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$ 68,857
===============
See notes to financial statements.
<PAGE>
VISION TEN, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended June 30, Six Months Ended June 30,
---------------------------------- ----------------------------------
2000 1999 2000 1999
--------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C>
REVENUES $ 954 $ 25,551 $ 1,279 $ 66,548
COST OF GOODS SOLD 610 30,267 61,022 71,890
--------------- --------------- ---------------- ---------------
GROSS LOSS 344 (4,716) (59,743) (5,342)
--------------- --------------- ---------------- ---------------
OPERATING EXPENSES:
Selling and marketing expenses (35) 8,269 10,000 18,549
General and administrative expenses 1,315 1,118 1,321 2,234
Product development - - - -
--------------- --------------- ---------------- ---------------
1,280 9,387 11,321 20,783
--------------- --------------- ---------------- ---------------
TOTAL OPERATING EXPENSES 1,280 9,387 11,321 20,783
--------------- --------------- ---------------- ---------------
LOSS FROM OPERATIONS (936) (14,103) (71,064) (26,125)
--------------- --------------- ---------------- ---------------
NET LOSS $ (936) $ (14,103) $ (71,064) $ (26,125)
=============== =============== ================ ===============
NET LOSS PER COMMON SHARE:
Net loss per common share - basic $ (0.00) $ (0.00) $ (0.00) $ (0.00)
=============== =============== ================ ===============
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING 15,303,796 15,303,796 15,303,796 15,303,796
=============== =============== ================ ===============
</TABLE>
See notes to financial statements.
<PAGE>
VISION TEN, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended June 30,
-------------------------------
2000 1999
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (71,064) $ (26,125)
------------- ---------------
Changes in operating assets and liabilities:
Decrease in accounts receivable 11,820 4,936
Decrease in inventories 60,816 59,942
Decrease in accounts payable and accrued expenses (8,924) (43,176)
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TOTAL ADJUSTMENTS (63,712) 21,702
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NET CASH USED IN OPERATING ACTIVITIES (7,352) (4,423)
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CASH FLOW FROM FINANCING ACTIVITIES:
Advances from affiliates 2,000 -
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NET DECREASE IN CASH (5,352) (4,423)
CASH, beginning of period 7,479 8,760
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CASH, end of period $ 2,128 $ 4,338
============= ===============
</TABLE>
See notes to financial statements.
<PAGE>
VISION TEN, INC.
NOTES TO FINANCIAL STATEMENTS
SIX MONTHS ENDED JUNE 30, 2000
(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, 1999 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, 2000, and the results of operations
and cash flows for the three-month and six-month periods ended June 30,
2000, and 1999 have been included.
The results of operations for the three-month and six-month periods
ended June 30, 2000, 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
0Company's Form 10-KSB as filed with the Securities and Exchange
Commission for the year ended December 31, 1999.
<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 $71,064 for the six months ended June 30, 2000 as compared to a
loss of $26,125 for the six months ended June 30, 1999. Net loss was $936 for
the three months ended June 30, 2000 as compared to a net loss of $14,103 for
the three months ended June 30, 1999. The increase in loss was primarily due to
a reserve for inventory resulting from a decline in activity from existing
customers
Sales for the six months ended June 30, 2000 were $1,279 as compared to $66,548
for the six months ended June 30, 1999. The $65,269 decrease was the result of
reduced activity from existing customers during the six months ended June 30,
2000.
Selling and marketing expenses during the six months ended June 30, 2000 were
10,000 compared to $18,549 for the six months ended June 30,1999, a decrease of
$8,549.
General and administrative expenses for the six months ended June 30, 2000 were
$1,321 as compared to $2,234 for the six months ended June 30, 1999.
LIQUIDITY AND CAPITAL RESOURCES
Cash used for operations during the six months ended June 30, 2000 was $7,352.
Accounts receivable decreased by $11,820 from December 31, 1999 to June 30,
2000. Management anticipates that such receivable balances will be collected in
due course in the Company's next two fiscal quarters. In addition, accounts
payable decreased during this period by $8,923. Inventories decreased by $60,816
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,
2000.
The Company's largest shareholder has agreed to fund working capital needs,
should they arise during the remainder of 2000. Management believes that these
sources of working capital will adequately meet the Company's needs through the
end of 2000.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS - NONE
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ITEM 2. CHANGES IN SECURITIES - NONE
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ITEM 3. DEFAULTS UPON SENIOR SECURITIES - NONE
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ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS - NONE
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ITEM 5. OTHER INFORMATION - NONE
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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, 2000.
<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
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Dr. Alfred Thumim
Chief Executive Officer
/S/ THOMAS A. CARPENTER
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Thomas A. Carpenter
Controller and
Chief Accounting Officer
DATED : SEPTEMBER 29, 2000
