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
September 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 September 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 September 30, 1996. After issuing these
400,699 shares, the number of outstanding shares will total
3,752,180.
BALANCE SHEETS
September 30, 1996
9/30/96
Unaudited 12/31/95
ASSETS
Current Assets
Cash $ 9494 $48878
Trade Accounts Receivable 33046 59557
Officers Accounts Receivable 0 10000
TOTAL CURRENT ASSETS 42540 118435
Property and Equipment
Furniture and Fixtures 35344 35344
Computer Equipment 64022 59600
99366 94944
Less Accumulated Depreciation (71770) (69126)
Deposits 1,598 1,598
TOTAL ASSETS $71534 $145851
Liabilities and Stockholders' Equity
Accounts Payable 11749 49659
Salaries Payable 0 3213
Customer Deposits 40000 92467
Accrued Bonuses & Expenses
Due Officers 48653 48653
Convertible Notes Payable 15000 15000
Current Capital Leases 0 2268
Accrued Profit Sharing 20663 20663
Accrued Interest 29234 31428
Deferred Revenue 15000 15000
TOTAL CURRENT LIABILITIES 180299 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 (2216717) (2240452)
Deferred Compensation (570) (570)
TOTAL STOCKHOLDERS' EQUITY (158765) (182500)
TOTAL LIABILITIES & $71534 $145851
STOCKHOLDERS EQUITY =========== ===========
INFOAMERICA, INC.
STATEMENT OF OPERATIONS
For the Nine Months Ended September 30, 1996 and 1995
(Unaudited)
For the Qtr. For the Qtr. For the 9 For the 9
Ended Ended Mos. Ended Mos.Ended
9/30/96 9/30/95 9/30/96 9/30/95
Software Income 167796 100516 515575 265846
Interest 12 25 415 514
Miscellaneous 25346 7144 30882 20737
TOTAL INCOME $193154 $107685 $546872 $287097
Expenses
Sales Promotion
& Advertising 585 1176 2720 5455
General & Admin. 169328 137275 520418 393523
TOTAL EXPENSES $169913 $138451 $523137 $403953
Net Income (Loss) $23242 $(30766) $23734 $(116856)
Net Income (Loss)
Per Share $.000 $(.009) $.000 $(.033)
Weighted Avg.
Shares 3752180 3538180 3752180 3538180
INFOAMERICA, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the 9 months ended September 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)
Net gain for the 9
months ended
September 30,
1996 --- --- --- $23,734
Balances,
September 30,
1996 3,752,180 $83,784 $1,974,738 ($2,216,717)
INFOAMERICA, INC.
STATEMENT OF CASH FLOWS
For the 9 months ended September 30, 1995 and 1996
(Unaudited)
1995 1996
Cash flows from operating activities:
Net income (loss) $(86,091) $23,734
Adjustments to reconcile net income (loss)
to net cash (used in) operations:
Depreciation and amortization 10,416 2,844
(Increase) decrease in trade accounts
receivable 20,795 26511
(Increase) decrease in other current
assets 1,345 10,000
Increase (decrease) in accounts payable (5,092) (37,910)
Decrease in salaries payable (2,650) (3,213)
Increase (decrease) in accrued
liabilities 3,136 (2,268)
Decrease in customer deposits -- 52,467
Total Adjustments 36,790 (56,503)
Net Cash Used in Operations (47,956) (32,769)
Cash flows from investing activities:
Proceeds from sale of fixed assets --- ---
Purchases of property and equipment (3,140) (4,422)
Net Cash Used in Investing Activities (3,140) (4,422)
Cash flows from financing activities:
Interest Payments --- (2,194)
Net Cash Used in Financing Activities --- (2,194)
Net Decrease in Cash (51,095) (39,385)
Cash Balance at Beginning of Period 64,032 48,878
Cash Balance at End of Period $ 12,937 $9,494
INFOAMERICA, INC.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
September 30, 1996
1. Basis of Presentation
The balance sheet at September 30, 1996, and the statements of operations and
cash flows for the nine months ended September 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 September 30, 1996, and the results of operations and
cash flows for the periods ended September 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 September 30, 1996,
the Company has a working capital deficit of $137,759 and a stockholders'
deficit of $158,765. 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 majorchain 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 September 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 nine month period ended September 30, 1995
and 1996.
I. CHANGES IN FINANCIAL CONDITION
Working Capital increased slightly during the first nine months of 1996 due
exclusively to the Company's $23,734 gain 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:
YTD 1995 vs. 1996: 1996 nine month
results increased 90.5% from 1995 levels as revenues from one of the
Company's major customers increased dramatically from 1995 levels. The
Company anticipates that revenues from this customer will stabilize or
slightly decline during the balance of 1996 compared to 1995.
Expenses:
YTD 1995 vs. 1996: 1996 year-to-date expenses increased 29.5%
from 1995 levels due to increased manning, greater outside consulting
services as well as higher salaries.
Income:
YTD 1995 vs. 1996: 1996 year-to-date gain represents a
$140,590 increase compared to 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 Officer
