-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WigCaeZaVceJjZecUxTNz64tMEjuB463eYg2HEpnSIuhf2e189GP1o6e0kxahm1/ BQyaUJNvFt89r6XNAURvwg== 0000777844-99-000006.txt : 19990615 0000777844-99-000006.hdr.sgml : 19990615 ACCESSION NUMBER: 0000777844-99-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990430 FILED AS OF DATE: 19990611 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMPUSONICS VIDEO CORP CENTRAL INDEX KEY: 0000777844 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-NONSTORE RETAILERS [5960] IRS NUMBER: 841001336 STATE OF INCORPORATION: CO FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-14200 FILM NUMBER: 99644859 BUSINESS ADDRESS: STREET 1: 7001 ORCHARD LAKE RD STE 424 CITY: W. BLOOMFIELD STATE: MI ZIP: 48322 BUSINESS PHONE: 8108515651 MAIL ADDRESS: STREET 1: 7001 ORCHARD LAKE ROAD STREET 2: SUITE 424 CITY: WEST BLOOMFIELD STATE: MI ZIP: 48322 10-Q 1 CVC FORM 10Q FOR QTR 04/30/99 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarter year ended: Commission file number: April 30, 1999 0-14200 - --------------------------- ----------------------- CompuSonics Video Corporation (Exact name of Registrant as specified in its charter) Colorado 84-1001336 - --------------------------- ------------------------ (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 7001 Orchard Lake Road - Suite 424 West Bloomfield, MI 48322-3608 - ---------------------------------- ------------------------ (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (248) 851-5651 Securities registered pursuant to Section 12 (b) of the Act: None Securities registered pursuant to Section 12 (g) of the Act: Common Stock, $.001 Par Value ----------------------------- (Title of Class) 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 and, (2) has been subject to such filing requirements for the past 90 days: Yes X No ---- ---- As of June 8, 1999, a total of 160,006,250 shares of common stock, $.001 par value, were outstanding. COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES Form 10-Q Filing for the Quarter Ended April 30, 1999 INDEX Page Number ------ PART I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements. Consolidated Balance Sheets April 30, 1999 (Unaudited) and July 31, 1998 3 Consolidated Statements of Operations (Unaudited) Three and Nine months ended April 30, 1999 and 1998 4 Consolidated Statements of Cash Flows (Unaudited) Nine months ended April 30, 1999 and 1998 5 Notes to Consolidated Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 6-7 PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K 7 Signature Page 8
COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS ------------------------------ 04/30/99 07/31/98 ----------- ----------- Current Assets Cash $ 17,052 $ 77 Accounts Receivable 16,120 -0- Prepaid Expenses 402 -0- Marketable Equity Securities Available For Sale 67,771 80,086 ----------- ----------- Total Current Assets 101,345 80,163 ----------- ----------- Other Assets Equipment 43,232 38,774 Less: Accumulated Depreciation (38,962) (38,774) ----------- ----------- Total Other Assets 4,270 -0- ----------- ----------- Total Assets $ 105,615 $ 80,163 =========== =========== LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities Notes Payable to Related Entities $ 402,440 $ 398,440 Notes Payable - Other 20,100 20,100 Accounts Payable and Accrued Liabilities 47,788 48,010 Accounts Payable - Related Entities 295,776 264,818 ----------- ----------- 766,104 731,368 ----------- ----------- Stockholders' Deficit Preferred Stock - Series A Convertible Stock $.001 Par Value, 75,000,000 Shares Authorized, -0- Shares Issued and Outstanding -0- -0- Common Stock $.001 Par Value, 300,000,000 Shares Authorized, 160,006,250 Shares Issued and Outstanding 160,006 160,006 Additional Paid-In Capital 680,880 680,880 Retained Earnings Unrealized Gain on Available for Sale Securities 42,735 55,051 Accumulated Deficit (1,544,110) (1,547,141) ----------- ----------- Total Stockholders' Deficit (660,489) (651,204) ----------- ----------- Total Liabilities and Stockholders' Deficit $ 105,615 $ 80,163 =========== =========== See notes to financial statements 3
COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) For the three months ended April 30, For the nine months ended April 30, ------------------------------------- ----------------------------------- 1999 1998 1999 1998 ------------------------------------- ----------------------------------- Consulting Fee Income $ 63,542 $ -0- $ 131,250 $ -0- --------------- ---------------- ---------------- --------------- General and Administrative Expenses Staff Salary 26,225 -0- 63,725 -0- Professional Fees 1,695 572 3,743 2,479 Management Fees - Related Party 1,250 300 2,750 900 Patent Fees 3,360 -0- 6,572 2,945 All Other General and Administrative Expenses 10,579 29 18,893 161 --------------- ---------------- ---------------- --------------- 43,108 901 95,683 6,485 --------------- ---------------- ---------------- --------------- Loss From Operations 20,434 (901) 35,567 (6,485) --------------- ---------------- ---------------- --------------- Other Income (Expense) Interest Expense (10,608) (10,494) (32,537) (31,983) --------------- ---------------- ---------------- --------------- Net Income (Loss) Before Income Taxes 9,825 (11,395) 3,030 (38,468) Income Tax Benefit -0- -0- -0- -0- --------------- ---------------- ---------------- --------------- Net Income (Loss) $ 9,825 $ (11,395) $ 3,030 $ (38,468) =============== ================ ================ =============== Weighted Average Number of Common Shares 160,006,250 160,006,250 160,006,250 160,006,250 =============== ================ ================ =============== Net Loss Per Common Share $ 0 $ (0) $ 0 $ (0) =============== ================ ================ =============== See notes to Financial Statements 4
COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES STATEMENTS OF CASH FLOWS (Unaudited) For the nine months ended April 30, ----------------------------------------- 1999 1998 ----------------------------------------- Cash Flows From Operating Activities Net Income (Loss) $ 3,030 $ (38,468) Adjustments to Reconcile Net Loss to Net Cash Used by Operating Activities Depreciation 188 Change in Assets and Liabilities (Increase) Decrease In: Accounts Receivable and Accrued Assets (20,981) -0- Increase (Decrease) In: Accounts Payable and Accrued Liabilities (222) 5,803 Accounts Payable Related Entity 30,958 30,703 --------- ----------- Total Adjustments 9,944 36,506 --------- ----------- Net Cash (Used For) Operations 12,974 (1,962) --------- ----------- Cash Provided by (Used For) Investing Activities -0- -0- --------- ----------- Net Cash Provided by Investing Activities -0- -0- --------- ----------- Cash Provided by (Used For) Financing Activities Proceeds From Notes Payable - Related 4,000 1,850 --------- ----------- Net Cash Provided by (Used For) Financing Activities 4,000 1,850 --------- ----------- Increase (Decrease) in Cash 16,974 (112) Balance at Beginning of Period 77 153 --------- ----------- Balance at End of Period $ 17,053 $ 41 ========= =========== See notes to financial statements 5
COMPUSONICS VIDEO CORPORATION & SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) PART I. FINANCIAL INFORMATION Item 1. Interim Financial Statements. The accompanying consolidated financial statements of CompuSonics Video Corporation and Subsidiaries have been prepared by the company without audit. In the opinion of the company's management, the financial statements reflect all adjustments necessary to present fairly the results of operations for the nine-month period ended April 30, 1999; the company's financial position at April 30, 1999 and July 31, 1998; and the cash flows for the nine-month period ended April 30, 1999 and 1998. Certain notes and other information have been condensed or omitted from the interim financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these financial statements should be read in conjunction with the company's July 1998 Form 10-K. The results for the nine-month period ended April 30, 1999 are not necessarily indicative of future financial results. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. The net income from operations for the nine-month period ended April 30, 1999 was $3,030 compared to the net loss of $38,468 for the nine-month period ended April 30, 1998. This was due mainly to the increase in consulting fees of $131,250 in the nine-month period ended April 30, 1999 from $0 in the nine-month period ended April 30, 1998. At the present time, the Company has a temporary arrangement with two third party companies, whereby the Registrant provides internet consulting and is paid a monthly fee from each company for these services. There is no assurance that this will continue in the future. During the nine-month period ended April 30, 1999, there was an increase in staff salary expense of $63,725, an increase in patent fees of $3,627, and an increase in other general & administrative expenses of $18,732 compared to the nine-month period ended April 30, 1998. Working capital decreased by $9,286 from July 31, 1998 to April 30, 1999, due to the decrease in unrealized gain on investments of $12,316, offset by the net gain of $3,030. In the past, the Registrant has relied on a related company to provide the working funds it has required but there is no assurance that this will continue in future years. 6 The Registrant has the following marketable securities: Williams Controls, Inc. 28,475 Common Shares Cost - $25,035 Market Value at 4/30/99 - $67,771 These shares are used as collateral against the notes payable. On August 14, 1998, the Company signed an offer of employment with Ethan J. Matyas to be the Company's Director of Professional Services. Mr. Matyas was previously employed as the president of WebStyles, LLC, a company engaged in the business of internet website development and maintenance. Mr. Matyas' responsibilities with the company are to oversee it's internet website development and maintenance business, and to formulate a plan and pursue actions against those parties believed to be violating the patents owned by the company. During the third quarter, the Registrant hired two additional employees to help with website development and maintenance. The company currently has two clients which generate most of the company's revenue, and it is pursuing the adding of new clients at this time. PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K: (a) Exhibits None (b) Reports on Form 8-K On May 6, 1999, the Registrant filed a Form 8-K regarding the extension of the Class A and Class B warrants from May 15, 1999 to May 15, 2000. 7 COMPUSONICS VIDEO CORPORATION Form 10-Q For the quarter ended April 30, 1999 Signature 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. COMPUSONICS VIDEO CORPORATION ----------------------------- (Registrant) By s\ Robert R. Hebard ------------------------------------ Robert R. Hebard, Chief Executive Officer & Chairman of the Board Date Signed: June 11, 1999 8 EX-27 2 FDS --
5 (Replace this text with the legend) 0000777844 CompuSonics Video Corporation 1 U.S. Dollars 9-MOS Jul-31-1999 Feb-01-1999 Apr-30-1999 1 17,052 67,771 16,120 0 0 101,345 43,232 (38,962) 105,615 766,104 0 0 0 160,006 (820,495) 105,615 0 131,250 0 76,790 18,893 0 32,537 3,030 0 0 0 0 0 3,030 (0.00) (0.00)
-----END PRIVACY-ENHANCED MESSAGE-----