<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
(Mark One)
[X] Quarterly report under Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the Quarterly period ended March 31, 2000.
[ ] Transition report under Section 13 or 15(d) of the Exchange Act
For the transition period from __________ to ___________
Commission File Number 0-23111
Cable Link, Inc.
----------------------------------------------------------------
(Exact Name of Small Business Issuer as Specified in its Charter
Ohio 31-1239657
- ------------------------------- ---------------------
(State or Other Jurisdiction of (IRS Employer
Incorporation or Organization) Identification No.)
280 Cozzins Street, Columbus, Ohio
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices)
(614) 221-3131
- --------------------------------------------------------------------------------
(Issuer's Telephone Number, Including Area Code)
- --------------------------------------------------------------------------------
(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 registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes X No
--------- ---------
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date: 1,708,936 shares of Common
Stock as of March 31, 2000
Transitional Small Business Disclosure Format (check one):
Yes X No
--------- ---------
<PAGE> 2
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
CABLE LINK, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
3 Months Ending March 31
2000 1999
---------- ----------
<S> <C> <C>
Net Sales $2,078,664 $3,163,075
---------- ----------
Cost of goods sold 1,225,747 2,073,846
Operating expenses 798,649 784,014
---------- ----------
Total expenses 2,024,396 2,857,860
---------- ----------
Income from operations 54,268 305,215
Interest expense (13,019) (31,337)
Other income (expenses) 273 (10,211)
---------- ----------
Income before taxes 41,522 263,667
Provision for taxes -- 60
---------- ----------
Income from continuing operations 41,522 263,607
Discontinued operations
inc (loss) from operations of discontinued division 225,822 (422,260)
---------- ----------
Net income (loss) before cumulative effect of change
in principle, net 267,344 (158,653)
Cumulative effect of change in accounting
principle, net -- (42,246)
---------- ----------
Net income (loss) $ 267,344 $(200,899)
========== ==========
Basic EPS:
Income from continuing operations $ 0.03 $ 0.16
Income (loss) on discontinued operations 0.13 (0.25)
Cumulative effect of change in accounting principle -- (0.03)
---------- ----------
Net income (loss) $ 0.16 $ (0.12)
========== ==========
Weighted average shares outstanding 1,696,924 1,694,275
Diluted
Income from continuing operations $ 0.02 $ 0.14
Income (loss) on discontinued operations 0.12 (0.23)
Cumulative effect of change in accounting principle -- (0.02)
---------- ----------
Net income (loss) $ 0.14 $ (0.11)
========== ==========
Weighted average shares outstanding 1,927,847 1,827,383
</TABLE>
2
<PAGE> 3
CABLE LINK, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
2000 1999
MARCH 31 December 31
(UNAUDITED) (Audited)
----------- ---------
<S> <C> <C>
ASSETS
Current Assets
Cash $ 132,144 $ 213,113
Accounts receivable, net 1,424,398 2,060,469
Income tax receivable 67,060 144,000
Inventories 1,419,456 1,557,257
Prepaid expenses 103,182 40,182
Deferred income taxes 517,000 517,000
Property & equipment available for sale 49,325 50,000
Deposit 11,850 15,359
---------- ----------
Total current assets $3,724,415 $4,597,380
---------- ----------
Property and Equipment
Property and equipment, at cost 1,474,465 1,426,367
Accumulated depreciation (912,268) (865,466)
---------- ----------
Total Property and Equipment 562,197 560,901
---------- ----------
Other Assets
Deferred tax asset 94,000 94,000
Deposits 26,739 27,238
---------- ----------
Total other assets 120,739 121,238
---------- ----------
TOTAL ASSETS $4,407,351 $5,279,519
========== ==========
</TABLE>
3
<PAGE> 4
CABLE LINK, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
2000 1999
MARCH 31 December 31
(UNAUDITED) (Audited)
----------- ---------
<S> <C> <C>
LIABILITIES
Current Liabilities
Current portion long-term obligation $ 9,117 $ 19,958
Note Payable - Bank 1,417,718 2,216,218
Accounts payable 1,483,435 1,251,975
Accrued expenses 242,865 497,231
Accrued loss on discontinued operations 143,286 433,448
Covenants not to compete 11,664 29,164
---------- ----------
Total current liabilities 3,308,085 4,447,994
Long-term obligations 745 24,855
---------- ----------
Total Liabilities $3,308,830 $4,472,849
---------- ----------
STOCKHOLDER'S EQUITY
Current Stockholders' Equity
Common stock 1,496,864 1,472,357
Additional paid-in capital 136,136 136,136
Retained deficit (534,479) (801,823)
---------- ----------
Total Stockholder's Equity 1,098,521 806,670
---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $4,407,351 $5,279,519
========== ==========
</TABLE>
4
<PAGE> 5
CABLE LINK, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)
<TABLE>
Three Months Ending March 31, 2000 and the year ended December 31, 1999
<CAPTION>
Shares of Issued Additional Retained
and Outstanding Common Paid-In Earnings
Common Stock Stock Capital (Deficit) Total
---------------- ---------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C>
BALANCE AT DECEMBER 31, 1998 1,689,136 $1,463,387 $136,136 $ 510,384 $ 2,109,907
Exercise of options and warrants 5,940 $ 8,970 -- -- $ 8,970
Net loss -- -- -- $(1,312,207) $(1,312,207)
--------- ---------- -------- ----------- -----------
BALANCE AT DECEMBER 31, 1999 1,695,076 $1,472,357 $136,136 $ (801,823) $ 806,670
Exercise of options and warrants 13,860 $ 24,507 -- -- $ 24,507
Net income -- -- -- $ 267,344 $ 267,344
--------- ---------- -------- ----------- -----------
BALANCE AT MARCH 31, 2000 1,708,936 $1,496,864 $136,136 $ (534,479) $ 1,098,521
========= ========== ======== =========== ===========
</TABLE>
5
<PAGE> 6
CABLE LINK, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
<TABLE>
Three Months Ending March 31
<CAPTION>
2000 1999
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 267,344 $(200,899)
--------- ---------
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 55,302 137,155
Loss on sale of equipment -- 10,368
Cumulative effect of change in accounting principle -- 42,246
Gain on discontinued operations/disposal of division (290,162) --
(Increase) decrease in operating assets:
Accounts receivable 636,071 341,119
Income tax receivable 76,940 260,347
Inventories 137,801 649,747
Prepaid and other assets (58,992) 23,468
Increase (decrease) in operating liabilities
Accounts payable 231,460 (803,249)
Accrued warranty (17,749) (24,293)
Acquisition bonus -- (15,000)
Accrued expenses (254,366) (15,563)
--------- ---------
Total adjustments 516,305 606,345
--------- ---------
Net cash provided by operating activities 783,649 405,446
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (56,598) (57,870)
Proceeds from sales of equipment 675 63,897
--------- ---------
Net cash (used in) provided by investing activities (55,923) 6,027
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sales of common stock 24,507 8,970
Payments on covenant not to compete liability (17,500) (58,750)
Net decrease in line of credit (773,500) (302,569)
Principal payments on debt (25,000) --
Payments on capital lease obligations (17,202) (16,443)
--------- ---------
Net cash used in financing activities (808,695) (368,792)
--------- ---------
Net increase (decrease) in cash (80,969) 42,681
Cash - beginning of period 213,113 61,418
--------- ---------
Cash - end of period $ 132,144 $ 104,099
========= =========
SUPPLEMENTAL DISCLOSURES OF
CASH FLOW INFORMATION:
Cash paid during the period for interest $ 46,614 $ 63,019
Cash (received) paid for income taxes during the period $ (45,940) $ 2,152
</TABLE>
6
<PAGE> 7
CABLE LINK, INC AND SUBSIDIARY
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NATURE AND SCOPE
Cable Link, Inc. (the "Parent") sells new, used and refurbished cable TV
equipment in addition to repairing equipment for cable companies within the
United States and various international markets. The Parent operates both its
administrative and manufacturing operations from a single, leased facility in
Columbus, Ohio. The Parent began leasing a facility in Florida to house
additional re-manufacturing and international sales operations during 1999.
In 1998, the Parent purchased 100% of the stock of PC & Parts, Inc dba Auro
Computer Services (the "Subsidiary"). During the first quarter of 2000 the
Parent decided to close the Subsidiary. The Subsidiary was located in a suburb
of Columbus and resold computer hardware and assembled computer hardware
components into personal computers. The Subsidiary also sold personal computer
software and provided both wide area networking (WAN) and local area networking
(LAN), year 2000 testing and solutions, and many other service and support needs
throughout Central Ohio and the surrounding area.
The Parent began a foreign sales corporation (FSC) during 1998 to handle all
foreign sales.
The interim consolidated financial statements have been prepared by the Company
without an audit and, in the opinion of management, reflect all adjustments of a
normal recurring nature necessary for a fair statement of the consolidated
financial position of the Company as of March 31, 2000, the consolidated results
of operations for the three months ended March 31, 2000 and consolidated cash
flow for the three months ended March 31, 2000. Interim results are not
necessarily indicative of results for a full year.
The balance sheet as of December 31, 1999 has been derived from the financial
statements that have been audited by the Company's independent public
accountants. The financial statements and notes are condensed as permitted by
Form 10-QSB and do not contain certain information included in the annual
financial statements and notes of the Company. The financial statements and
notes included herein should be read in conjunction with the financial
statements and notes included in the Company's annual report and Form 10-KSB.
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements are on the accrual basis of accounting and
include the financial statements of the Parent, the FSC, and the Subsidiary for
2000 and 1999, in entirety.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, disclosure of contingent
assets and liabilities at the date of the financial statements and the reported
amount of revenues and expenses during the reporting periods. Actual amounts
could differ from these estimates.
NOTE PAYABLE - BANK
The Company has a revolving credit line with a bank for $3,300,000. The credit
line is secured by substantially all assets of the Company and is payable on
demand. The line matures on June 30, 2000, and interest is charged at prime plus
1% (9.75% and 9.50% at March 31, 2000, and December 31, 1999 respectively).
Outstanding borrowings at March 31, 2000 and December 31, 1999 were $1,009,385
and $1,782,885, respectively.
7
<PAGE> 8
The Company has a note payable to a bank relating to the acquisition of the
Subsidiary. The face amount of the note is $500,000 and interest is due monthly
at prime plus 1% (9.75% and 9.50% at March 31, 2000, and December 31, 1999,
respectively). The principal balances were $408,333 and $433,333 at March 31,
2000 and December 31 1999, respectively. The principal is due at maturity on
June 30, 2000. The note is secured by substantially all of the assets of the
Company.
COVENANTS NOT TO COMPETE
Under the terms of the purchase agreement when the Company purchased the
Subsidiary, the Company is paying the sellers $150,000 in monthly installments
over two years. Accordingly, a short-term and long-term liability was
recognized. The Company allocated $200,000 of the purchase price to the covenant
to be amortized using the straight-line method over the same two year period.
Additionally, the Company had a non-compete agreement with the Subsidiary's
former president through December 31, 1999. The amount of $82,500 was paid over
six months. Accordingly, a short-term asset and liability were recorded and
amortized using the straight-line method during 1999. The unamortized balance of
the covenants not to compete, $41,664, was written off as part of the disposal
of the discontinued operations. The liability at March 31, 2000 and December 31,
1999 was $11,664 and $29,164, respectively.
REPORTABLE SEGMENTS
Management has elected to identify the Company's reportable segments based on
operating units: Cable Link, Inc., including the FSC, and PC & Parts, INC. dba
Auro Computer Services.
Information related to the Company's first quarter 2000 reportable segments is
as follows:
<TABLE>
<CAPTION>
Auro
Cable Link Computer
Inc. Services Total
---------- -------- -----
<S> <C> <C> <C>
Revenues $2,078,664 $ 989,945 $3,068,609
Cost of sales 1,225,747 863,881 2,089,628
---------- --------- ----------
Gross margin 852,917 126,064 978,981
Operating expenses 798,649 376,061 1,174,710
---------- --------- ----------
Operating income (loss) 54,268 (249,997) (195,729)
Interest expenses (13,019) (39,595) (52,614)
Other income (expenses) 273 2,990 3,263
---------- --------- ----------
Income (loss) $ 41,522 $(286,602) $ (245,080)
========== ========= ==========
Total assets $4,388,375 $ 176,314 $4,564,689
========== ========= ==========
Depreciation and amortization
expenses $ 55,302 $ -- $ 55,302
========== ========= ==========
</TABLE>
REPORTABLE SEGMENTS (continued)
A reconciliation of the segments' operating loss to the consolidated net income
is as follows:
<TABLE>
<S> <C>
Segments operating loss $(245,080)
Add:
Gain on disposal of division 225,822
Accrued loss on discontinued
operations 286,602
---------
Consolidated net income $ 267,344
=========
</TABLE>
8
<PAGE> 9
A reconciliation of the segments' total assets to the consolidated total assets
is as follows:
<TABLE>
<S> <C>
Segments total assets $4,564,689
Less:
Intercompany receivables (157,338)
----------
Consolidated total assets $4,407,351
==========
</TABLE>
NEW ACCOUNTING PRONOUNCEMENT
In 1999, the Company adopted Statement of Position (SOP) 98-5 "Reporting of
Start-up Activities." This SOP required that costs of start-up activities,
including organization costs, be expensed as incurred. The SOP was reported as a
cumulative effect of a change in accounting principle in the amount of $26,246,
net of tax, for 1999.
No other accounting pronouncements have been issued that have any effect on the
Company.
9
<PAGE> 10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
The following discussion should be read in conjunction with the financial
statements and footnotes appearing elsewhere herein. Fluctuations in annual
operating results may occur as a result of certain factors such as the size and
timing of customers' orders and competition. Due to such fluctuations,
historical results and percentage relationships are not necessarily indicative
of the results for any future period. Statements which are not historical facts
contained in this report are forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from
projected results and are made pursuant to the "safe harbor provisions of the
Private Securities Litigation Act of 1995". Factors that could cause actual
results to differ materially include, but are not limited to, the following: the
ability to obtain new contracts at attractive prices; the size and timing of
customers orders; fluctuations in customer demand; competitive factors; the
timely completion of contracts; and general economic conditions, both
domestically and abroad. Readers are cautioned not to place undue reliance on
these forward-looking statements, which reflect management's analysis only as of
the date hereof. The Company undertakes no obligation to publicly release the
results of any revision to these forward-looking statements, which may be made
to reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
GENERAL
Cable Link, Inc. (the "Parent") sells new, used and refurbished cable TV
equipment in addition to repairing equipment for cable companies within the
United States and various international markets. The Parent operates both its
administrative and manufacturing operations from a leased facility in Columbus,
Ohio. The Parent began leasing a facility in Florida to house additional
re-manufacturing and international sales operations during 1999.
In 1998, the Parent purchased 100% of the stock of PC & Parts, Inc dba Auro
Computer Services (the "Subsidiary"). In February 2000, the Company decided to
close the Subsidiary and operations ceased on February 21, 2000. The Subsidiary
was located in a suburb of Columbus and resold computer hardware and assembled
computer hardware components into personal computers. The Subsidiary also sold
personal computer software and provided both wide area networking (WAN) and
local area networking (LAN), year 2000 testing and solutions, and many other
service and support needs throughout Central Ohio and the surrounding area.
Management is in the process of liquidating the remaining assets and liabilities
of the Subsidiary.
RESULTS OF OPERATIONS
NET SALES
Net sales for the Parent for the first quarter ending March 31, 2000 were
$2,078,664 compared to $3,163,075 for the first quarter ending March 31, 1999, a
decrease of $1,084,411. This represents a decrease of 34.3% over the previous
year for the same period. The decrease in sales is primarily due to a decrease
in the CATV operators' purchasing of converters as compared to the first quarter
of 1999. The first quarter of 1999 included a one-time sale of converters to a
customer that totaled approximately $765,000.
COST OF GOODS SOLD
The cost of goods sold for the Parent for the first quarter ending March 31,
2000 was $1,225,747, a decrease of $848,099 as compared to same period for 1999.
The decrease in 2000 is primarily attributable to a reduction in production
labor expense and product cost due to a decrease in sales. The decrease in labor
cost is primarily the result of a reduction in labor force as well as increased
efficiencies and new procedures that have led to improved productivity of
employees.
10
<PAGE> 11
OPERATING EXPENSES
Operating expenses for the Parent increased to $798,649 for the first quarter
ending March 31, 2000 as compared to $784,014 for the same period in 1999. The
increase is a result of hiring additional sales people for the Columbus, Ohio
and Hollywood, Florida locations. The Parent will continue to implement
procedures and review the Company's organizational structure in an attempt to
increase efficiencies and reduce costs.
INCOME FROM OPERATIONS
The income from operations for the Parent for the first quarter ending March 31,
2000 was $54,268 as compared $305,215 for the same period in 1999, a decrease of
$250,947. The decrease in income from operations is a result of a decrease in
sales during the quarter.
ACCOUNTS RECEIVABLE
Accounts receivable decreased $636,071 or 30.9% from December 31, 1999 as
compared to the March 31, 2000 balance of $1,424,398. This decrease in accounts
receivable is due to improved collections on accounts and the decrease in sales
for the first quarter. In addition, the accounts receivable collections have
been approximately $175,000 better than anticipated for the Subsidiary since
December 31, 1999.
INVENTORIES
Inventory decreased 8.8% or $137,801 from December 31, 1999 as compared to March
31, 2000. The decrease is attributable to the sale of the entire inventory of
the Subsidiary.
ACCOUNTS PAYABLE
Accounts payable increased 18.5% or $231,460 from December 31, 1999 as compared
to March 31, 2000. The majority of the increase is attributable to an increase
in payables of the Subsidiary.
SHORT TERM OBLIGATIONS
Short-term obligations decreased by $773,500 from December 31, 1999 as compared
to March 31, 2000. This decrease is due to improved cash flows generated by an
improvement in accounts being received within terms.
WARRANTY
Warranties are extended on new, repaired and refurbished cable products for
periods of up to one year. The Company's expense for cable product warranties is
not material.
LIQUIDITY AND CAPITAL RESOURCES
The Company finances its operations primarily through internally generated funds
and bank lines of credit totaling $3,300,000. As a result of the closing of the
Subsidiary the Company will assume the bank debt related to the Subsidiary. As
of March 31, 2000 the balance outstanding was $906,637 but could decrease by
future liquidation of assets. This will have a negative impact to the future
cash flow of the Company. The Company does not at this time anticipate the need
for additional capital unless there is a significant increase in its operation.
As of December 31, 1999 and as a result of the loss on disposal of the
Subsidiary, the Company was in violation of several loan covenants relating to
its loan agreements with the bank. The bank has agreed to waive the loan
covenants. The Company has a draw note payable to the bank relating to the
covenants. The Company may borrow up to $200,000. Interest is due monthly at the
rate of 14%. The principal balance is $150,000 at April 30, 2000 and the
principal is due at maturity on June 30, 2000. Prior to June 30, 2000 the
Company is expecting to renegotiate the terms of the notes for the purpose of
obtaining long-term financing.
YEAR 2000
The Parent and its Subsidiary ("the Company") had in place detailed programs to
address Year 2000 readiness in its internal control systems and with its key
customers and suppliers. The Company communicated with its major customers,
suppliers and financial institutions to assess the potential impact on the
Company's operations if those third parties failed to become Year 2000 compliant
in a timely manner. Risk assessment, readiness evaluation, and contingency plans
were completed by December 31, 1999. The Company's key financial institutions
have been
11
<PAGE> 12
surveyed and they were Year 2000 compliant on or before December 31, 1999. The
company has experienced no problems since the beginning of the year.
12
<PAGE> 13
PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
None.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS.
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 5. OTHER INFORMATION.
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits.
(2) Charter and Bylaws. The Articles of Incorporation and Code
of Regulations of the Issuer as presently in effect.
(3) Instruments Defining the Rights of Security Holders.
(a) See Exhibit 2.1 - Articles of Incorporation;
Articles IV, V and VI.
See Exhibit 2.2 - Code of Regulations; Articles
I, IV and VII
(b) The registrant agrees to provide to the
Commission upon request instruments defining the
rights of holders of long-term debt of the registrant
and all of its subsidiaries for which consolidated
financial statements are required to be filed.
(5) Voting Trust Agreement. None.
(6) Material Contracts.
See Exhibit 6.1 - 1995 Stock Option Plan dated October 17,
1995.
See Exhibit 6.2. - Warrant Agreement for Axxess International
Group, Inc. dated January 8, 1997.
See Exhibit 6.3. Non-Competition and Consulting Agreement
dated October 18, 1994.
See Exhibit 6.4. First Amendment Agreement to Non-Competition
and Consulting Agreement dated June 1, 1995.
See Exhibit 6.5. Second Amendment Agreement to Non-Competition
and Consulting Agreement dated November 16, 1995.
13
<PAGE> 14
See Exhibit 6.6. Consulting Agreement dated October 1, 1996.
See Exhibit 6.7. Eric S. Newman Independent Consulting Letter
Agreement dated August 1, 1994.
See Exhibit 6.8. Loan and Security Agreement dated November
27, 1996.
See Exhibit 6.9. Promissory Note dated April 30, 1997.
See Exhibit 6.10. Lease dated November 4, 1992 and Lease
Modification Agreement dated October 26, 1995 for Suite 201,
280 Cozzins, Columbus, Ohio.
(7) Material Foreign Patents. None.
(8) Plan of Acquisition, Reorganization, etc.
See Exhibit 8.1. Stock Purchase and Non-Compete Agreement
among PC & Parts, Inc., its Shareholders, Brian Berger and
Cable Link, Inc. dated May 18, 1998.
See Exhibit 8.2. Stock Agreement among Cable Link, Inc., PC &
Parts, Inc. and Brian Berger dated May 18, 1998.
(b) Reports on Form 8-K.
A report on Form 8-K was filed on March 2, 2000 reporting the closing
of PC & Parts, Inc.
(10) Consents. The consent of Groner, Boyle & Quillin, LLP
14
<PAGE> 15
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
CABLE LINK, INC.
Dated May 15, 2000 By s/ Bob Binsky
--------------------------------- ---------------------------------
Bob Binsky, Chairman of the Board
(principal executive officer)
By s/ Gerald S. Blaskie
---------------------------------
Gerald S. Blaskie, Controller
(principal accounting officer)
15
<PAGE> 16
EXHIBIT INDEX
<TABLE>
<CAPTION>
PAGE IN
SEQUENTIALLY
NUMBERED
EXHIBIT COPY
<S> <C> <C>
2.1. Articles of Incorporation of Cable Link, Inc., as amended (incorporated
by reference to Exhibit 2.1 of 10-SB, as amended. filed December 23,
1997 (the "Form 10-SB"); Commission File No. 0-23111). *
2.2. Code of Regulations of Cable Link, Inc., as amended (incorporated by *
reference to Exhibit 2.2 to the Form 10-SB).
3.1. See Articles IV, V and VI of the Articles of Incorporation of the
Registrant (see Exhibit 3.1). *
3.2. See Articles I, IV and VII of the Code of Regulations of the Registrant
(see Exhibit 3.2). *
6.1. 1995 Stock Option Plan dated October 17, 1995 (incorporated by reference
to Exhibit 6.1 to the Form 10-SB). *
6.2. Warrant Agreement for Axxess International Group, Inc. dated January 8,
1997 (incorporated by reference to Exhibit 6.2 to the Form 10-SB). *
6.3. Non-Competition and Consulting Agreement dated October 18, 1994
(incorporated by reference to Exhibit 6.3 to the Form 10-SB). *
6.4. First Amendment Agreement to Non-Competition and Consulting Agreement
dated June 1, 1995 (incorporated by reference to Exhibit 6.4 to the Form
10-SB). *
6.5. Second Amendment Agreement to Non-Competition and Consulting
Agreement dated November 16, 1995 (incorporated by reference to
Exhibit 6.5 to the Form 10-SB). *
6.6. Consulting Agreement dated October 1, 1996 (incorporated by reference to
Exhibit 6.6 to the Form 10-SB). *
6.7. Eric S. Newman Independent Consulting Letter Agreement dated August 1,
1994 (incorporated by reference to Exhibit 6.7 to the Form 10-SB). *
6.8. Loan and Security Agreement dated November 27, 1996 (incorporated by
reference to Exhibit 6.8 to the Form 10-SB). *
6.9. Promissory Note dated April 30, 1997 (incorporated by reference to
Exhibit 6.9 to the Form 10-SB). *
6.10. Lease dated November 4, 1992 and Lease Modification Agreement dated
October 26, 1995 for Suite 201, 280 Cozzins, Columbus, Ohio
(incorporated by reference to Exhibit 6.10 to the Form 10-SB/A of *
Registrant, Registration No. 0-23111)).
8.1 Stock Purchase and Non-Compete Agreement among PC & Parts, Inc., its
Shareholders, Brian Berger and Cable Link, Inc. dated May 18, 1998 *
</TABLE>
16
<PAGE> 17
<TABLE>
<S> <C> <C>
(incorporated by reference to Exhibit 2.1 to the Form 8-K of Registrant
filed May 29, 1998, Registration No. 0-23111)
8.2 Stock Agreement among Cable Link, Inc., PC & Parts, Inc. and Brian
Berger dated May 18, 1998 (incorporated by reference to Exhibit 2.2
to the Form 8-K of Registrant filed May 29, 1998, Registration No.
0-23111) *
Consent of Groner, Boyle & Quillin, LLP (incorporated by reference
to Exhibit 10.1 to the Form 10-KSB40 of Registrant filed March 31,
1999, Registration No. 0-23111) *
27. Financial Data Schedule (submitted electronically for SEC purposes only)
*Incorporated by reference
</TABLE>
17
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S UNAUDITED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31,
2000 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-2000
<CASH> 132,144
<SECURITIES> 0
<RECEIVABLES> 1,549,304
<ALLOWANCES> 57,846
<INVENTORY> 1,419,456
<CURRENT-ASSETS> 3,724,415
<PP&E> 1,474,465
<DEPRECIATION> 912,268
<TOTAL-ASSETS> 4,407,351
<CURRENT-LIABILITIES> 3,308,085
<BONDS> 0
0
0
<COMMON> 1,496,864
<OTHER-SE> (398,343)
<TOTAL-LIABILITY-AND-EQUITY> 4,407,351
<SALES> 2,078,664
<TOTAL-REVENUES> 2,078,664
<CGS> 1,225,747
<TOTAL-COSTS> 2,024,396
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 13,019
<INCOME-PRETAX> 41,522
<INCOME-TAX> 0
<INCOME-CONTINUING> 41,522
<DISCONTINUED> 225,822
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 267,344
<EPS-BASIC> 0.16
<EPS-DILUTED> 0.14
</TABLE>
