Page 7
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
March 31, 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 March 31, 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 March 31, 1996.
After issuing these 400,699 shares, the number of outstanding
shares will total 3,752,180.
BALANCE SHEETS
March 31, 1996
3/31/96
Unaudited 12/31/95
ASSETS
Current Assets
Cash $ 31821 $ 48878
Trade Accounts Receivable 15135 59557
Officers Accounts Receivable 4000 10000
TOTAL CURRENT ASSETS 50956 118435
Property and Equipment
Furniture and Fixtures 35344 35344
Computer Equipment 59600 59600
94944 94944
Less Accumulated Depreciation (70044) (69126)
Deposits 1,598 1,598
TOTAL ASSETS $ 77454 $ 145851
============ ===========
Liabilities and Stockholders' Equity
Accounts Payable 3291 49659
Salaries Payable 589 3213
Customer Deposits 40000 92467
Accrued Bonuses & Expenses Due Officers 48653 48653
Convertible Notes Payable 15000 15000
Current Capital Leases 1041 2268
Accrued Profit Sharing 20663 20663
Accrued Interest 34066 31428
Deferred Revenue 15000 15000
TOTAL CURRENT LIABILITIES 178303 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 (2208801) (2240452)
Deferred Compensation (570) (570)
TOTAL STOCKHOLDERS' EQUITY (150849) (182500)
TOTAL LIABILITIES & $ 77454 $ 145851
& STOCKHOLDERS' EQUITY ============ ===========
INFOAMERICA, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
For the Three Months Ended March 31, 1996 and 1995
(Unaudited)
For the QTR For the QTR 12 Months
end 3/31/95 end 3/31/96 end 12/31/95
Software Sales 92,841 186127 447,709
Equipment Sales 6,627 0 22,665
Consulting and other sales 2,625 1600 14,906
__________ __________ __________
TOTAL INCOME 102,093 187727 485,280
========== ========== ==========
Expenses
Cost of Eq. Sold 1,658 0 19,206
Sales Promotion and
Advertising 439 1207 -
General & Admin. 129,805 154869 447,317
__________ __________ __________
TOTAL EXPENSES 131,902 156076 466,523
__________ __________ __________
Net Income (Loss) (29,809) 31651 (2,403)
========== ========== ==========
Net Income (Loss) Per Share (.01) .01 (*)
Weighted Average 3,538,180 3,752,180 3,752,180
INFOAMERICA, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the 3 months ended March 31, 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 3
months ended
March 31, 1996 --- --- --- $31,651
Balances,
March 31, 1996 3,752,180 $83,784 $1,974,738 $(2,208,801)
========= ======= ========== ============
INFOAMERICA, INC.
STATEMENT OF CASH FLOWS
For the 3 months ended March 31, 1995 and 1996
(Unaudited)
1996 1995
Cash flows from operating activities:
Net income (loss) $ 31,651 $ (29,809)
Adjustments to reconcile net income (loss)
to net cash (used in) operations:
Depreciation and amortization 918 5,208
(Increase) decrease in trade accounts
receivable 50,422 26,179
Increase (decrease) in accounts payable (46,368) (306)
Decrease in salaries payable (2,624) ---
Increase (decrease) in accrued liabilities 2,638 2,638
Decrease in customer deposits
(52,467) ---
Total Adjustments (47,481) 33,719
Net Cash Used in Operations (15,830) 3,910
Cash flows from investing activities:
Proceeds from sale of fixed assets --- ---
Purchases of property and equipment --- (3,140)
Net Cash Used in Investing Activities --- (3,140)
Cash flows from financing activities:
Payments on lease (1227) (1,049)
Net Cash Used in Financing Activities (1227) (1,049)
Net Decrease in Cash (17,057) (278)
Cash Balance at Beginning of Period 48,878 64,032
Cash Balance at End of Period $ 31,821 $ 63,754
========= =========
INFOAMERICA, INC.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
March 31, 1996
1. Basis of Presentation
The balance sheet at March 31, 1996, and the statements
of operations and cash flows for the three months ended March 31,
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 March 31, 1996, and the results of
operations and cash flows for the periods ended March 31, 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 March 31, 1996, the
Company has a working capital deficit of $127,317 and a
stockholders' deficit of $150,849. 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 March 31,
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 March 31, 1995 and 1996.
I. CHANGES IN FINANCIAL CONDITION
Working Capital improved during the first three months of
1996 due exclusively to the Company's $31,651 profit from
operations. It is anticipated that the Company's financial
condition will stabilize during the balance of 1996 as new fast
food contracts are realized. 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 Quarter 1995 vs. 1996: 1996 first quarter results
increased 84% from 1995 levels as 1996 first quarter results
included payment for a major consulting project started in fourth
quarter 1995.
Expenses:
1st Quarter 1995 vs. 1996: 1996 year-to-date expenses
increased 18% 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 Quarter 1995 vs. 1996: 1996 year-to-date profit
increased $61,460 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: /s/ Paul
F.Knight
Paul F. Knight, President and
Chief Financial Office
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