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.
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(Exact name of registrant as specified in its charter)
New Jersey 22-2386359
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(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
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (973)575-9992
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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
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ASSETS
Current assets:
Cash $ 111,610
Accounts receivables 76,784
Investments 225,867
Inventory 225,891
Prepaid expenses 7,869
Deferred taxes 63,400
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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
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Total other assets 264,502
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Total assets $ 1,043,408
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 23,885
Accrued expenses 13,535
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Total current liabilities 37,420
Total Liabilities 37,420
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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)
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Total stockholder's equity 1,005,988
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Total liabilities and stockholders equity $ 1,043,408
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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
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Revenues
Net sales
Products $ 414,795 $ 430,448
Services -- 93,169
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Total sales 414,795 523,617
Gain on sale of assets -- 14,713
Investment Income (loss) (4,631) (15,936)
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Total Revenues 410,164 522,394
Costs and expenses
Cost of sales
Products 270,669 263,506
Services -- 151,704
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Total cost of sales 270,669 415,210
General and administrative expenses 243,753 272,573
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Total costs and expenses 514,422 687,783
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Income (loss) before income taxes (104,258) (165,389)
Provision for income taxes -- 7,850
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Net income (loss) $(104,258) $(157,539)
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Earnings per share $ (.03) $ (.05)
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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
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Revenues
Net sales
Products $ 129,568 $ 153,214
Services -- 8,559
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Total sales 129,568 161,773
Gain on sale of assets -- 14,713
Investment Income (loss) 245 (32,410)
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Total Revenues 129,813 144,076
Costs and expenses
Cost of sales
Products 94,587 95,313
Services -- 19,907
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Total cost of sales 94,587 115,220
General and administrative expenses 70,449 87,664
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Total costs and expenses 165,036 202,884
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Income (loss) before income taxes (35,223) (58,808)
Provision for income taxes -- --
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Net income (loss) $(35,223) (58,808)
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Earnings (loss) per share $ (.01) $ (.02)
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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
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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)
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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
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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
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Cash at end of period $111,610 $ 10,285
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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