UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB Quarterly Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 For the Quarterly Period Ended June 30, 2002 Commission file Number 000-14411 Instructivision, Inc. - ------------------------------------------------------- (Exact name of registrant as specified in its charter) New Jersey 22-2386359 - ------------------------------- ------------------ (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) P.O.Box 2004, 16 Chapin Rd, Pine Brook NJ 07058 - ---------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (973)575-9992 -------------- 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 [ ] As of June 30, 2002 there were 3,350,000 shares of Common Stock, par value $.001 per share. Part I. - FINANCIAL INFORMATION Note: The following unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Regulation S-B. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments necessary for a fair presentation have been included. Operating results for the nine months ended June 30, 2002 are not necessarily indicative of the results that may be expected for the year ended September 30, 2002. For further information refer to the financial statements and footnotes thereto included in the Company's annual report on Form 10-KSB for the year ended September 30, 2001. INSTRUCTIVISION, INC BALANCE SHEETS June 30, 2002 (unaudited) June 30,2002 ------------- ASSETS Current assets: Cash $ 111,610 Accounts receivables 76,784 Investments 225,867 Inventory 225,891 Prepaid expenses 7,869 Deferred taxes 63,400 ----------- Total current assets 711,421 Property and equipment at cost, less accumulated depreciation 67,485 Other assets Capitalized software - net of amortization 212,518 Deposits 28,484 Deferred income taxes 23,500 ----------- Total other assets 264,502 ----------- Total assets $ 1,043,408 =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 23,885 Accrued expenses 13,535 ----------- Total current liabilities 37,420 Total Liabilities 37,420 ----------- Stockholders' equity: Common Stock, $.001 par value, 10,000,000 shares authorized, 3,350,000 shares, issued & outstanding 3,350 Additional paid-in capital 1,425,218 Accumulated deficit (327,322) Unrealized gain (loss) on investments, net of income tax of $63,400 (95,258) ------------ Total stockholder's equity 1,005,988 ------------ Total liabilities and stockholders equity $ 1,043,408 ============ See accompanying notes to financial statements INSTRUCTIVISION, INC. STATEMENT OF OPERATIONS For the Nine Months ended June 30, 2002 and 2001 (unaudited) June 30, June 30, 2002 2001 ----------- ----------- Revenues Net sales Products $ 414,795 $ 430,448 Services -- 93,169 ---------- ---------- Total sales 414,795 523,617 Gain on sale of assets	 -- 14,713 Investment Income (loss) (4,631) (15,936) ---------- ---------- Total Revenues 410,164 522,394 Costs and expenses Cost of sales Products 270,669 263,506 Services -- 151,704 --------- --------- Total cost of sales 270,669 415,210 General and administrative expenses 243,753 272,573 ---------- --------- Total costs and expenses 514,422 687,783 ---------- --------- Income (loss) before income taxes (104,258) (165,389) Provision for income taxes -- 7,850 ---------- --------- Net income (loss) $(104,258) $(157,539) ========== ========== Earnings per share $ (.03) $ (.05) ========= ========= See accompanying notes to financial statements INSTRUCTIVISION, INC. STATEMENT OF OPERATIONS For the Three Months Ended June 30, 2002 and 2001 (unaudited) June 30, June 30, 2002 2001 --------- ---------- Revenues Net sales Products $ 129,568 $ 153,214 Services -- 8,559 ---------- --------- Total sales 129,568 161,773 Gain on sale of assets -- 14,713 Investment Income (loss) 245 (32,410) --------- --------- Total Revenues 129,813 144,076 Costs and expenses Cost of sales Products 94,587 95,313 Services -- 19,907 --------- --------- Total cost of sales 94,587 115,220 General and administrative expenses 70,449 87,664 --------- --------- Total costs and expenses 165,036 202,884 --------- --------- Income (loss) before income taxes (35,223) (58,808) Provision for income taxes -- -- --------- --------- Net income (loss) $(35,223) (58,808) ========= ========= Earnings (loss) per share $ (.01) $ (.02) ========== ========= See accompanying notes to financial statements INSTRUCTIVISION, INC. STATEMENT OF CASH FLOWS For the Nine Months Ended June 30, 2002 and 2001 (Unaudited) June 30, June 30, 2002 2001 ---------- ---------- Operating activities: Net income $(104,258) $(157,539) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 26,500 39,483 Amortization of capitalized software 32,949 47,869 Disposal of equipment -- (14,713) Loss on sale of investments 7,248 35,975 Deferred taxes -- (7,850) Changes in operating assets and liabilities: Decrease in accounts receivable 206,223 101,515 Decrease in inventory and prepaid expenses 39,757 15,612 Decrease in accounts payable and accrued expenses (29,491) (86,452) Increase in deposits -- (15,359) --------- --------- Net cash provided by operating activities 178,928 (41,459) Investing Activities: Net decrease (additions) to investments (10,421) 97,411 Net additions to capitalized software (61,960) (42,383) Purchases of property, plant & equipment (5,673) (32,648) Proceeds from sale of equipment -- 24,500 --------- --------- Net cash utilized in investing activities (78,054) 46,880 Increase in cash 100,874 5,421 Cash at beginning of period 10,736 4,864 --------- --------- Cash at end of period $111,610 $ 10,285 ========= ========= See accompanying notes to financial statements INSTRUCTIVISION, INC. NOTES TO INTERIM FINANCIAL STATEMENTS June 30, 2002 Note 1. Basis of Presentation The financial statements included herein are unaudited. However, such information reflects all adjustments consisting of normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the statements for the interim periods. The results of operations for the six months ended June 30, 2002 are not necessarily indicative of the results to be expected for the full year. Note 2. Earnings Per Share Earnings per share is based on the weighted average number of common share outstanding. The weighted average number of common shares was 3,350,000 for the periods ended June 30, 2002 and 2001. Part II - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. 1. Material changes in financial condition: The working capital ratio as of June 30, 2002 was 19:1 as compared to 14:1 as of June 30, 2001. For the quarter ended June 30, 2002, the Company had sales of $129,568, compared to $161,773 in 2001 and $154,080 in the same period in 2000. Pre-tax loss for the quarter ended June 30,2002 was $35,223 or 1 cents per share, compared to a loss of $58,808 or 2 cents per share in the period ended June 2001, and a loss of $105,910, or 3 cents per share, in the same period in 2000. The Company's sales of supplemental school products are cyclical, with approx. 40% of the revenues being realized in the fourth quarter ended September 30. Management anticipates that due to tighter local school budgets sales in the next quarter may be slightly lower than in the same quarter of last year. Signature Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly cause this report to be signed on its behalf by the undersigned thereunto duly authorized. INSTRUCTIVISION, INC. August 14, 2002 /s/Rosemary Comras President and Chief Accounting Officer