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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of The Securities Exchange Act of 1934
For the Quarter Ended Commission File Number
June 30, 1996 0-13338
INFOAMERICA, INC.
2600 Canton Court, Suite G
Fort Collins, Colorado 80525
Telephone: (970) 221-5599
Colorado 84-0853869
(State of Incorporation) (I.R.S. Employer
Identification No.)
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, 1996, Registrant had 3,351,481 shares of its
$0.025 par value common stock outstanding. An additional 400,699
shares have been authorized but not issued as of June 30, 1996.
After issuing these 400,699 shares, the number of outstanding
shares will total 3,752,180.
BALANCE SHEETS
June 30, 1996
6/30/96
Unaudited 12/31/95
ASSETS
Current Assets
Cash $ 11699 $ 48878
Trade Accounts Receivable 7500 59557
Officers Accounts Receivable 4000 10000
TOTAL CURRENT ASSETS 23199 118435
Property and Equipment
Furniture and Fixtures 35344 35344
Computer Equipment 63305 59600
98649 94944
Less Accumulated Depreciation (71022) (69126)
Deposits 1,598 1,598
TOTAL ASSETS $ 54424 $ 145851
============ ===========
Liabilities and Stockholders' Equity
Accounts Payable 7974 49659
Salaries Payable 0 3213
Customer Deposits 40000 92467
Accrued Bonuses & Expenses Due Officers 48653 48653
Convertible Notes Payable
15000 15000
Current Capital Leases 437
2268
Accrued Profit Sharing 20663 20663
Accrued Interest 36704 31428
Deferred Revenue 15000 15000
TOTAL CURRENT LIABILITIES 184431 278351
Convertible Notes Payable 50000 50000
Stockholders' Equity
Common Stock, $.025 Par Value
Authorized--900,000,000 shares;
shares issued & O/S 83784 83784
Additional Paid-In Capital 1974738 1974738
Accumulated Deficit (2239959) (2240452)
Deferred Compensation (570) (570)
TOTAL STOCKHOLDERS' EQUITY (182007) (182500)
TOTAL LIABILITIES & $ 54424 $ 145851
STOCKHOLDERS EQUITY ============ ===========
INFOAMERICA, INC.
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996 and 1995
(Unaudited)
For the Qtr. For the Qtr. For the 6 For the 6
Ended Ended Mos. Ended Mos. Ended
6/30/96 6/30/95 6/30/96 6/30/95
Software Income 161652 72489 347779165330
Interest 89 289
402 489
Miscellaneous 4250 4540
5536 13593
TOTAL INCOME $ 165991 $ 77318
$ 353718 $ 179412
=========== =========== ========== ==========
Expenses
Sales Promotion
& Advertising 927 3840
2134 4278
General & Admin. 196221 129760
351090 261225
TOTAL EXPENSES $ 197148 $ 133600 $
353224 $ 265503
Net Income (Loss) $ (31158) $ (56282)
$ 493 $ (86091)
======== ==========
========== ==========
Net Income (Loss)
Per Share $ .000 $ (.001)
$ .000 $ (.024)
========== ============= ==========
=======
Weighted Avg. Shares 3538180 3538180
3538180 3538180
INFOAMERICA, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS'
EQUITY
For the 6 months ended June 30, 1996
(Unaudited)
Additional
Common Stock Paid-In Accumulated
Shares Amount Capital Deficit
Balance, December 31,
1995 3,752,180 $83,784 $1,974,738 ($2,240,452)
Gain for the 6
months ended
June 30, 1996 --- --- --- $493
Balances,
June 30, 1996 3,752,180 $83,784 $1,974,738 $(2,239959)
========= ======= ========== ============
INFOAMERICA, INC.
STATEMENT OF CASH FLOWS
For the 6 months ended June 30, 1996 and 1995
(Unaudited)
1995 1996
Cash flows from operating activities:
Net income (loss)$ (86,091) $ 493
Adjustments to reconcile net income (loss)
to net cash (used in) operations:
Depreciation and amortization 10,416 1896
(Increase) decrease in trade accounts
receivable
20,795 52057
(Increase) decrease in other current assets
1,345 6000
Increase (decrease) in accounts payable (5,092) (41685)
Decrease in salaries payable (2,650) (3213)
Increase (decrease) in accrued liabilities 3,136 3445
Decrease in customer deposits
- - (52467)
Total Adjustments 36,790 (33967)
Net Cash Used in Operations (47,956) (33474)
Cash flows from investing activities:
Proceeds from sale of fixed assets --- ---
Purchases of property and equipment (3,140) (3705)
Net Cash Used in Investing Activities (3,140) (3705)
Cash flows from financing activities:
Payments on notes payable --- ---
Net Cash Used in Financing Activities --- ---
Net Decrease in Cash (51,095) (37179)
Cash Balance at Beginning of Period 64,032 48878
Cash Balance at End of Period $ 12,937 $ 11699
INFOAMERICA, INC.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
June 30, 1996
1. Basis of Presentation
The balance sheet at June 30, 1996, and the statements
of operations and cash flows for the six months ended June 30,
1995 and 1996, have been prepared by the Company without audit.
In the opinion of management the accompanying unaudited financial
statements contain all adjustments (consisting of only normal
recurring accruals) necessary for a fair presentation of the
financial position as of June 30, 1996, and the results of
operations and cash flows for the periods ended June 30, 1995 and
1996.
The financial statements have been prepared on a going
concern basis which contemplates the realization of assets and
liquidation of liabilities in the ordinary course of business. As
shown in the accompanying financial statements, the Company has
incurred significant recurring losses and at June 30, 1996, the
Company has a working capital deficit of $161,232 and a
stockholders' deficit of $182,007. As a result, substantial
doubt exists about the Company's ability to continue to fund
future operations using its existing resources.
The Company intends to pursue the fast food industry
during 1996 in an effort to establish pilot programs with major
chain accounts for the Company's order entry software. The
Company intends to reduce operating expenses where appropriate
and attempt to secure consulting contracts with current as well
as new customers. Although the Company is hopeful these cost
cutting and revenue generating strategies will be successful,
there is no assurance that sufficient cash flows will be
generated to fund current operations.
The financial statements do not include any adjustments
that might be necessary should the Company be unable to continue
as a going concern.
2. Income Taxes
No provision for income taxes is required at June 30,
1995 and 1996 because, in management's opinion, the effective tax
rate for the year will be zero.
3. Net Income (Loss) per Share
Net income (loss) per share is based on the weighted
average number of shares of common stock outstanding during the
three month period ended June 30, 1995 and 1996.
I. CHANGES IN FINANCIAL CONDITION
Working Capital remained unchanged during the first siix
months of 1996 due exclusively to the Company's breakeven
performance. It is anticipated that the Company's financial
condition will remain the same during the balance of 1996. If
revenues do not materialize as expected, the Company will seek
investment capital and/or consulting contracts to sustain
operations. There is no assurance the Company will be successful
in securing such investment capital or consulting contracts.
II. RESULTS OF OPERATIONS
Revenues:
1st Half 1995 vs. 1996: 1996 first half results
increased 97% from 1995 levels as 1996 first half results
included payment for a major consulting project started in fourth
quarter 1995.
Expenses:
1st Half 1995 vs. 1996: 1996 year-to-date expenses
increased 33% from 1995 levels due to increased manning, greater
outside consulting services as well as higher salaries. The
Company experienced increased activity associated with a major
product enhancement requested by a key customer.
Income:
1st Half 1995 vs. 1996: 1996 year-to-date profit
increased $86,584 over 1995 levels reflecting increased revenues.
ITEM 6 -- EXHIBITS AND REPORTS ON FORM 8K
A. Exhibits -- None
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.
INFOAMERICA, INC.
Date:
Paul F. Knight, President and
Chief Financial Office
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