<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the quarterly period ended MARCH 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the transition period from ________, 19__ to ________, 19__.
Commission File Number: 33-35580-D
INSTANT VIDEO TECHNOLOGIES, INC.
--------------------------------
(Exact Name of Small Business Issuer
as Specified in its Charter)
DELAWARE 84-1141967
-------- ----------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
500 SANSOME STREET, SUITE 503
SAN FRANCISCO, CALIFORNIA 94111
-------------------------------
Address of Principal Executive Offices, Including Zip Code
(415) 391-4455
--------------
(Issuer's Telephone Number, Including Area Code)
N/A
---
(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)
Check whether the Issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the Issuer was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
[ ] YES [X] NO
There were 4,803,553 shares of the Issuer's $.00001 par value common stock
outstanding as of April 15, 1997.
<PAGE> 2
SPECIAL NOTICE REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this Report includes forward-looking statements within
the meaning of applicable securities laws that involve substantial risks and
uncertainties including, but not limited to, market acceptance of the Company's
products and new technologies, the sufficiency of financial resources available
to the Company, economic, competitive, governmental and technological factors
affecting the Company's operations, markets, services, and prices, and other
factors described in this Report and in prior filings with the Securities and
Exchange Commission. The Company's actual results could differ materially from
those suggested or implied by any forward-looking statements as a result of
such risks.
Item 2. Management's Discussion and Analysis or Plan of Operation.
Results of Operations
During the three months ended March 31, 1997, the Company had revenues
in the form of license fees of $467,879 as compared to $19,130 during the three
months ended March 31, 1996.
Costs and expenses during the three months ended March 31, 1997, totaled
$432,893 as compared to $300,458 during the three months ended March 31, 1996.
The increase in expenses was a result of bringing Burstware(TM) products and
applications to the commercial marketplace. The costs involved in developing
Burstware(TM) were applied to general and administrative expenses.
The Company had a net profit of $29,036 during the three months ended
March 31, 1997, as compared to a net loss of ($302,243) during the three months
ended March 31, 1996. The profit resulted from the receipt of license revenue
in excess of expenses.
Liquidity and Capital Resources
As of March 31, 1997, the Company had a working capital deficit of
($162,132) as compared to a working capital deficit of ($185,994) at December
31, 1996, which was due to a decrease in accounts payable and notes payable.
Net cash used in operating activities totaled $1,614 during the three
months ended March 31, 1997, as compared to net cash used in operating
activities of $582,427 during the three months ended March 31, 1996.
Repayment of Debt during the three months ended March 31, 1997 equaled
$25,000 as compared to $216,477 during the three months ended March 31, 1996.
The Company presently has no commitments for material capital
expenditures. Subsequent to the first quarter, the Company has realized cash
from the exercise of certain warrants to purchase common stock.
<PAGE> 3
INSTANT VIDEO TECHNOLOGIES, INC AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
Assets
March 31, 1997 December 31, 1996
-------------- -----------------
Current Assets:
<S> <C> <C>
Cash & Cash Equivalents $164,153 $208,613
Accounts Receivable 66,421 1,421
Costs & estimated earnings in excess 193,995 136,400
of billings on uncompleted contracts
Prepaid Expenses 5,684 8,648
-------- --------
Total Current Assets 430,253 355,082
-------- --------
Property and Equipment, Net 85,293 72,322
Patents, Net 112,738 121,108
Other 53,243 52,670
-------- --------
$681,527 $601,182
======== ========
</TABLE>
<PAGE> 4
INSTANT VIDEO TECHNOLOGIES, INC AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
Liabilities & Shareholders' Equity (Deficit):
<TABLE>
<CAPTION>
March 31, 1997 December 31, 1996
-------------- -----------------
<S> <C> <C>
Current Liabilities:
Credit Facility, Related Party $ 65,000 $ 90,000
Convertible Notes Payable 141,000 141,000
Accounts Payable 207,348 128,263
Accrued Expenses 145,104 152,000
Accrued Interest 33,933 29,813
----------- -----------
Total Current Liabilities 592,385 541,076
----------- -----------
Shareholders' Equity (Deficit)
Preferred Stock
Series E 5 5
Series F 15 15
Common Stock 50 50
Additional Paid-In Capital 6,776,983 6,776,983
Accumulated Deficit (6,687,911) (6,716,947)
----------- -----------
Net Shareholders' Equity (Deficit) 89,142 60,106
----------- -----------
$ 681,527 $ 601,182
=========== ===========
(0) 0
</TABLE>
<PAGE> 5
INSTANT VIDEO TECHNOLOGIES, INC AND SUBSIDIARY
Unaudited Condensed Consolidated Statements of Operations
<TABLE>
<CAPTION>
Three months ended March 31,
1997 1996
---- ----
<S> <C> <C>
Revenue $ 467,879 $ 19,130
----------- -----------
Costs and expenses
Research and development ----- 36,300
Project costs ----- 235,000
Other general and administrative 432,893 29,158
----------- -----------
432,893 300,458
----------- -----------
Net income (loss) from operations 34,986 (281,328)
----------- -----------
Other income (expense)
Interest income 414 264
Interest expense (6,364) (21,179)
----------- -----------
(5,950) (20,915)
----------- -----------
Net income (loss) before income taxes 29,036 (302,243)
Income taxes
----------- -----------
Net income (loss) 29,036 (302,243)
----------- -----------
Accumulated deficit, beginning (6,716,947) (6,312,580)
----------- -----------
Accumulated deficit, ending $(6,687,911) $(6,614,823)
=========== ===========
Net income (loss) per share $ 0.01 $ (0.07)
=========== ===========
</TABLE>
<PAGE> 6
INSTANT VIDEO TECHNOLOGIES, INC AND SUBSIDIARY
Unaudited Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
Three months ended March 31,
1997 1996
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 29,036 $(302,243)
Adjustments to reconcile to net income (loss) to
net cash used in operating activities:
Depreciation and amortization 13,872 11,583
Increase in receivables (65,000) (200,000)
Decrease (increase) in prepaid expenses 2,964 (22,039)
Increase in other assets (1,200) -
Decrease (increase) in costs in excess (57,595) 188,588
of billings
Increase (decrease) in accounts payable 79,085 (159,730)
Decrease in accrued expenses (6,896) (94,807)
Increase (decrease) in accrued interest 4,120 (3,779)
--------- ---------
Net cash use in operating activities (1,614) (582,427)
--------- ---------
Cash flows from investing activities:
Purchase of property and equipment (17,846) (6,841)
Patent acquisition - (5,163)
--------- ---------
Net cash used in investing activities (17,846) (12,004)
--------- ---------
</TABLE>
<PAGE> 7
INSTANT VIDEO TECHNOLOGIES, INC AND SUBSIDIARY
Unaudited Consolidated Statements of Cash Flows, Continued
<TABLE>
<CAPTION>
Three months ended March 31,
1997 1996
<S> <C> <C>
Cash flows from financing activities:
Proceeds from sales of preferred stock - 850,000
Repayment of debt (25,000) (216,477)
--------- ---------
Net cash provided by financing (25,000) 633,523
--------- ---------
activities
Decrease in cash and cash equivalents (44,460) 39,092
Cash and cash equivalents, beginning 208,613 4,346
--------- ---------
Cash and cash equivalents, ending $ 164,153 $ 43,438
========= =========
</TABLE>
Supplemental schedule of non-cash investing and financing activities:
During 1995, debt of $100,000 was converted to common stock.
During 1995, accrued interest of $8,000 was converted to a license fee.
<PAGE> 8
SIGNATURES
In accordance with the Section 13 or 15(d) of the Exchange Act, the
Registrant caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
INSTANT VIDEO TECHNOLOGIES, INC.
Date: June 16, 1997 By: /s/ Gary R. Familian
-------------------------------
Gary R. Familian, President and
Chief Executive Officer
<PAGE> 9
INDEX TO EXHIBITS
Exhibit No. Description
- ---------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-1-1997
<PERIOD-END> MAR-31-1997
<CASH> 164,153
<SECURITIES> 0
<RECEIVABLES> 66,421
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 430,253
<PP&E> 126,770
<DEPRECIATION> 41,477
<TOTAL-ASSETS> 681,527
<CURRENT-LIABILITIES> 592,385
<BONDS> 0
0
20
<COMMON> 50
<OTHER-SE> 6,776,983
<TOTAL-LIABILITY-AND-EQUITY> 681,527
<SALES> 0
<TOTAL-REVENUES> 467,879
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 432,893
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6,364
<INCOME-PRETAX> 29,036
<INCOME-TAX> 0
<INCOME-CONTINUING> 29,036
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 29,036
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
</TABLE>
