Telvue Corp. (fka TEVE)

[10 bagger]

Item 1. Financial Statements.


TELVUE CORPORATION
CONDENSED BALANCE SHEETS





March 31, 2012

December 31, 2011




(Unaudited)




ASSETS

















CURRENT ASSETS








Cash and cash equivalents

$
3,764,006

$
151,134


Accounts receivable – trade, net of allowance for doubtful accounts of
$32,610 at March 31, 2012 and $29,194 at December 31, 2011


550,964


666,074


Inventory


472,304


399,637


Prepaid expenses


44,975


14,930


TOTAL CURRENT ASSETS


4,832,249


1,231,775











PROPERTY AND EQUIPMENT


6,934,797


6,806,652


Less accumulated depreciation


6,459,206


6,398,247


PROPERTY AND EQUIPMENT, NET


475,591


408,406











OTHER ASSETS


10,916


10,916











TOTAL ASSETS

$
5,318,756

$
1,651,097











LIABILITIES AND STOCKHOLDERS’ DEFICIT

















CURRENT LIABILITIES








Accounts payable – trade

$
637,875

$
595,310


Accrued expenses


212,177


264,589


Deferred service revenue


699,971


648,202


Other liabilities


1,136


1,150


TOTAL CURRENT LIABILITIES


1,551,159


1,509,251











LINES OF CREDIT – MAJORITY STOCKHOLDER


—


20,400,000











NOTE PAYABLE – MAJORITY STOCKHOLDER


—


541,000











ACCRUED INTEREST – MAJORITY STOCKHOLDER


—


4,669,223











TOTAL LIABILITIES


1,551,159


27,119,474











COMMITMENTS AND CONTINGENCIES

















REDEEMABLE CONVERTIBLE SERIES A PREFERRED STOCK,
$0.001 par value, 22,500 shares authorized, 14,285.714 shares issued and outstanding, including accrued dividends at March 31, 2012 of $8,225


5,008,225


—











STOCKHOLDERS’ EQUITY (DEFICIT)








Common stock, $.01 par value, 3,000,000 shares authorized,
615,374 and 245,415 shares issued and outstanding at
March 31, 2012 and December 31, 2011, respectively


6,154


2,454


Additional paid-in capital


31,352,740


5,494,938


Accumulated deficit


(32,599,522
)

(30,965,769
)




(1,240,628
)

(25,468,377
)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

$
5,318,756

$
1,651,097




See the accompanying unaudited notes which are an integral part of these condensed financial statements.


3

--------------------------------------------------------------------------------


TELVUE CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)





Three Months Ended
March 31,




2012

2011











REVENUES








TelVue products and services

$
821,202

$
859,340


ANI services


124,586


181,653





945,788


1,040,993











COST OF REVENUES








TelVue products and services


435,237


534,569


ANI services


25,868


31,564


TOTAL COST OF REVENUES


461,105


566,133


GROSS MARGIN


484,683


474,860











OPERATING EXPENSES








Selling and marketing


454,345


281,463


General and administrative


1,352,667


686,225


Depreciation


60,960


68,992





1,867,972


1,036,680


OPERATING LOSS


(1,383,289
)

(561,820
)










OTHER INCOME (EXPENSE)








Interest income


1,395


87


Interest expense-related party


(251,859
)

(235,873
)

TOTAL OTHER INCOME (EXPENSE)


(250,464
)

(235,786
)

LOSS BEFORE INCOME TAXES


(1,633,753
)

(797,606
)










INCOME TAX EXPENSE


—


—











NET LOSS


(1,633,753
)

(797,606
)










DIVIDENDS ON REDEEMABLE COVERTIBLE PREFERRED STOCK


(8,225
)

—











NET LOSS AVAILABLE TO COMMON STOCKHOLDERS

$
(1,641,978
)
$
(797,606
)










NET LOSS PER COMMON SHARE








BASIC AND DILUTED

$
(5.58
)
$
(3.28
)










WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING








BASIC AND DILUTED


294,240


243,370




See the accompanying unaudited notes which are an integral part of these condensed financial statements.


4

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TELVUE CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)





Three Months Ended
March 31,




2012

2011











CASH FLOWS FROM OPERATING ACTIVITIES








Net loss

$
(1,633,753
)
$
(797,606
)

Adjustments to reconcile net loss to net cash used in operating activities:








Depreciation


60,960


68,992


Accrued interest – majority stockholder


251,859


235,873


Stock-based compensation


4,145


—


Provision for losses on accounts receivable


3,416


—


Changes in assets and liabilities:








Accounts receivable – trade


111,694


(36,057
)

Inventory


(72,667
)

33,584


Prepaid expenses


(30,045
)

(32,194
)

Accounts payable – trade


42,565


21,766


Accrued expenses


(52,412
)

45,588


Deferred service revenue


51,769


44,631


Other liabilities


(14
)

—


NET CASH USED IN OPERATING ACTIVITIES


(1,262,483
)

(415,423
)










CASH FLOWS USED IN INVESTING ACTIVITIES








Purchases of property and equipment


(128,145
)

(37,290
)










CASH FLOWS PROVIDED BY FINANCING ACTIVITIES








Proceeds from line of credit – majority stockholder


5,000,000


400,000


Issuance of common stock


3,500


—


NET CASH PROVIDED BY FINANCING ACTIVITIES


5,003,500


400,000











NET CHANGE IN CASH AND CASH EQUIVALENTS


3,612,872


(52,713
)










CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD


151,134


185,954


CASH AND CASH EQUIVALENTS, END OF PERIOD

$
3,764,006

$
133,241




See the accompanying unaudited notes which are an integral part of these condensed financial statements.