SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10QSB
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarterly Period Ended: June 30, 1996
OR
( )TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ______ to ______
Commission File Number: 0-13338
INFOAMERICA, INC.
(Exact name of registrant as specified in its charter)
Colorado 84-0853869
(State of Incorporation) (I.R.S. Employer
Identification No.)
2600 Canton Court, Suite G
Fort Collins, Colorado 80525
(Address of principal executive offices)
Telephone: (970) 221-5599
(Registrant's telephone number)
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, 1997, Registrant had 3,542,981 shares of its $0.025 par
value common stock outstanding. An additional 209,199 shares have been
authorized but not issued as of June 30, 1997. After issuing these 209,199
shares, the number of outstanding shares will total 3,752,180.
<PAGE>
BALANCE SHEET
ASSETS
June 30, 1997
<TABLE>
<S> <C> <C>
Unaudited Audited
6/30/97 12/31/96
Current assets:
Cash $ 31,691 $ 34,201
Accounts receivable:
Trade, net of allowance for
doubtful accounts of $-0- 31,422 94,487
------- -------
Total current assets 63,113 128,688
Property and equipment, at cost:
Furniture and fixtures 35,344 35,344
Computer equipment 73,247 70,954
-------- --------
108,591 106,298
Less accumulated depreciation 77,376 77,376
-------- --------
Net property and equipment 31,215 28,922
Other assets:
Deposits 1,598 1,598
-------- --------
Total Assets $95,927 $159,208
=======
</TABLE>
<PAGE>
INFOAMERICA, INC.
BALANCE SHEET
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
June 30, 1997
<TABLE>
<S> <C> <C>
6/30/97 12/31/96
Current liabilities:
Accounts payable $ 1,399 $ 14,082
Accrued salaries and payroll taxes 2,644 3,213
Accrued interest 42,373 42,373
Accrued profit sharing plan
contribution 25,311 25,311
Customer deposits 3,500 82,250
Accrued bonuses and expenses due
officers 56,188 61,511
Convertible notes payable 15,000 15,000
Deferred revenue 15,000 15,000
--------- ----------
Total current liabilities 161,416 258,740
Long-term liabilities:
Convertible notes payable - officers 67,965 50,000
Stockholders' equity (deficit):
Preferred stock, $1 par value;
5,000,000 shares authorized,
none issued -- --
Common stock, $.025 par value;
900,000,000 shares authorized,
3,542,981 shares (3,351,481
shares 1995) issued and outstanding 88,572 88,572
Additional paid-in capital 1,977,228 1,977,228
Accumulated deficit (2,212,177) (2,209,147)
Deferred compensation (6,185) (6,185)
----------- ----------
Total stockholders' equity (deficit) (152,562) (149,532)
Total Liabilities & Stockholder Equity $ 95,927 $ 159,208
========= =========
</TABLE>
<PAGE>
INFOAMERICA, INC.
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996 and 1997
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C>
For the Qtr. For the Qtr. For the 6 For the 6
Ended Ended Mos. Ended Mos. Ended
6/30/96 6/30/97 6/30/96 6/30/97
Software Development 161,652 81,530 347,779 158,067
Support Fees
53,250 105,750
Royalty Income -- 500 500
Interest 89 75 402 254
Miscellaneous 4,250 600 5,536 600
TOTAL INCOME $ 165,991 $ 135,955 $ 353,718 $ 265,171
============ ========= ========= =========
Expenses
Sales Promotion
& Advertising 927 500 2,134 3,228
General & Admin. 196,221 116,346 351,090 245,866
----------- --------- ------- -------
TOTAL EXPENSES $ 197,148 $ 116,846 $353,224 $ 249,094
----------- ---------- -------- ---------
Net Income (Loss) $ (31,158) $ 19,109 $ 493 $ 16,078
========== ======== ======== ========
Net Income (Loss)
Per Share $ .000 $ .005 $ .000 $ .004
========== ========= ======= ========
Weighted Avg. Shares 3,538,180 3,542,981 3,538,180 3,542,981
</TABLE>
<PAGE>
(Unaudited)
INFOAMERICA, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the 6 months ended June 30, 1997
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C>
Additional
Common Stock Paid-In Accumulated
Shares Amount Capital Deficit
Balance, December 31,
1996 3,542,981 $88,572 $1,977,228 ($2,215,332)
Profit for the 6
months ended
June 30, 1997 --- --- --- $16,078
Balances,
June 30, 1997 3,542,981 $88,572 $1,977,228 $(2,199,254)
========= ======= ========= =========
</TABLE>
<PAGE>
INFOAMERICA, INC.
STATEMENT OF CASH FLOWS
For the 6 months ended June 30, 1996 and 1997
(Unaudited)
<TABLE>
<S> <C> <C>
1997 1996
Cash flows from operating activities:
Net income (loss) $ 16,078 $ 493
Adjustments to reconcile net income (loss) to net cash (used in) operations:
Depreciation and amortization -- 1,896
(Increase) decrease in trade accounts
receivable 63,065 52,057
(Increase) decrease in other current assets 17,965 6,000
Increase (decrease) in accounts payable (12,683) (41,685)
Decrease in salaries payable (569) (3,213)
Increase (decrease) in accrued liabilities (5,324) 3,445
Decrease in customer deposits (78,750) (52,467)
Total Adjustments (16,296) (33,967)
-------- --------
Net Cash Used in Operations (218) (33,474)
Cash flows from investing activities:
Proceeds from sale of fixed assets --- ---
Purchases of property and equipment (2,293) (3,705)
--------- --------
Net Cash Used in Investing Activities (2,293) (3,705)
Cash flows from financing activities:
Payments on notes payable --- ---
---------
Net Cash Used in Financing Activities --- ---
--------- ---------
Net Decrease in Cash (2,511) (37,179)
Cash Balance at Beginning of Period 34,201 48,878
-------- --------
Cash Balance at End of Period $31,691 $ 11,699
</TABLE>
<PAGE>
INFOAMERICA, INC.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
June 30, 1997
1. Basis of Presentation
The balance sheet at June 30, 1997, and the statements of operations and
cash flows for the six months ended June 30, 1997 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, 1997, and the results of operations and cash flows for
the periods ended June 30, 1997 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, 1997, the
Company has a working capital deficit of $66,704 and a stockholders' deficit of
$133,454. 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 1997 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, 1997 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 six month period ended June 30,
1997 and 1996.
<PAGE>
I. CHANGES IN FINANCIAL CONDITION
Working Capital remained stable during the first six months of 1997 due to
a breakeven performance. It is anticipated that the Company's financial
condition will remain the same during the balance of 1997 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:
Year-to-date 1997 vs. 1996: 1997 YTD results declined 25% from 1996
levels as 1996 six month results included payment for a major consulting
project started in fourth quarter 1995.
Expenses:
Year-to-Date 1997 vs. 1996: 1997 year-to-date expenses decreased 29%
from 1996 levels due primarily to decreased use of outside consulting
services.
Income:
Year-to-Date 1997 vs. 1996: 1997 year-to-date profit increased $
15,585 from 1996 levels reflecting expense reductions at a rate higher than
the decline in revenues.
<PAGE>
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: August 25, 1997 /s/ Paul F. Knight
------------------
Paul F. Knight, President and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000760497
<NAME> INFOAMERICA, INC.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> $31,691
<SECURITIES> 0
<RECEIVABLES> $31,442
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> $63,113
<PP&E> $108,591
<DEPRECIATION> $77,376
<TOTAL-ASSETS> $95,927
<CURRENT-LIABILITIES> $161,416
<BONDS> $67,965
0
0
<COMMON> $88,572
<OTHER-SE> $(241,134)
<TOTAL-LIABILITY-AND-EQUITY> $95,927
<SALES> $161,652
<TOTAL-REVENUES> $165,991
<CGS> 0
<TOTAL-COSTS> $197,148
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> $(31,158)
<INCOME-TAX> 0
<INCOME-CONTINUING> $(31,158)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> $(31,158)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
