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, 1997 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, 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 September 30, 1997. After issuing these 209,199
shares, the number of outstanding shares will total 3,752,180.
Page 1
<PAGE>
BALANCE SHEET
ASSETS
September 30, 1997
<TABLE>
<CAPTION>
Unaudited Audited
9/30/97 12/31/96
<S> <C> <C>
Current assets:
Cash $ 38,858 $ 34,201
Accounts receivable:
Trade, net of allowance for
doubtful accounts of $-0- 27,543 94,487
-------- --------
Total current assets 66,401 128,688
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 $99,215 $159,208
======== ========
</TABLE>
Page 2
<PAGE>
INFOAMERICA, INC.
BALANCE SHEET
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
September 30, 1997
<TABLE>
<CAPTION>
9/30/97 12/31/96
-------- --------
<S> <C> <C>
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 - 82,250
Accrued bonuses and expenses due
officers 50,080 61,511
Convertible notes payable 15,000 15,000
Deferred revenue 15,000 15,000
Total current liabilities 151,807 258,740
Long-term liabilities:
Convertible notes payable - officers 49,965 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 (2,162,174) (2,209,147)
Deferred compensation (6,185) (6,185)
---------- ----------
Total stockholders' equity (deficit) (102,559) (149,532)
---------- ----------
Total Liabilities & Stockholder Equity $ 99,215 $ 159,208
========== ==========
</TABLE>
Page 3
<PAGE>
INFOAMERICA, INC.
STATEMENT OF OPERATIONS
For the Nine Months Ended September 30, 1996 and 1997
(Unaudited)
<TABLE>
<CAPTION>
For the Qtr. For the Qtr. For the 9 For the 9
Ended Ended Mos. Ended Mos. Ended
9/30/96 9/30/97 9/30/96 9/30/97
------------ ------------ ---------- -----------
<S> <C> <C> <C> <C>
Software Income 167,796 124,193 515,575 282,760
Interest 12 186 415 440
Miscellaneous 25,346 7,670 30,882 114,020
TOTAL INCOME $193,154 132,049 $546,872 $397,221
======== ======= ======== ========
Expenses
Sales Promotion
& Advertising 585 721 2720 4,215
General & Admin. 169,328 100,433 520,418 346,033
-------- ------- -------- --------
TOTAL EXPENSES $169,913 $101,154 $523,137 $350,248
-------- -------- -------- --------
Net Income (Loss) $ 23,242 $ 30,895 23,734 $ 46,973
======== ======== ======== ========
Net Income (Loss)
Per Share $ .000 $ .009 $ .000 $ .013
======== ======== ======== ========
Weighted Avg. Shares 3,752,180 3,542,981 3,752,180 3,542,981
</TABLE>
(Unaudited)
Page 4
<PAGE>
INFOAMERICA, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the 9 months ended September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Additional
<S> <C> <C> <C> <C>
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 9
months ended
September 30, 1997 --- --- --- $46,973
Balances,
September 30, 1997 3,542,981 $88,572 $1,977,228 $(2,209,147)
========= ======= ========== ============
</TABLE>
Page 5
<PAGE>
INFOAMERICA, INC.
STATEMENT OF CASH FLOWS
For the 9 months ended September 30, 1996 and 1997
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 46,973 $ 493
Adjustments to reconcile net income (loss)
to net cash (used in) operations:
Depreciation and amortization -- 1,896
(Increase) decrease in trade accounts
receivable 66,944 52,057
(Increase) decrease in other current assets -- 6,000
Increase (decrease) in accounts payable (12,683) (41,685)
Decrease in salaries payable (569) (3,213)
Increase (decrease) in accrued liabilities (11,466) 3,445
Decrease in customer deposits (82,250) (52,467)
Total Adjustments (40 024) (33,967)
-------- --------
Net Cash Used in Operations 6,949 (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 4,656 (37,179)
Cash Balance at Beginning of Period 34,201 48,878
-------- --------
Cash Balance at End of Period $ 38,858 $ 11,699
</TABLE>
Page 6
<PAGE>
INFOAMERICA, INC.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
September 30, 1997
1. Basis of Presentation
The balance sheet at September 30, 1997, and the statements of
operations and cash flows for the six months ended September 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 September 30, 1997, and the
results of operations and cash flows for the periods ended September 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 September 30, 1997, the Company has a working capital deficit of
$85,406 and a stockholders' deficit of $102,559. 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 September 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 nine month period
ended September 30, 1997 and 1996.
Page 7
<PAGE>
I. CHANGES IN FINANCIAL CONDITION
Working Capital remained stable during the first nine 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 27% from
1996 levels as 1996 nine 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
33% 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
99% from 1996 levels reflecting expense reductions at a rate higher than the
decline in revenues.
Page 8
<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: /s/ Paul F. Knight
Paul F. Knight, President and
Chief Financial Officer
Page 9
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000760497
<NAME> INFOAMERICA, INC.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 38,858
<SECURITIES> 0
<RECEIVABLES> 27,543
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 66,401
<PP&E> 108,591
<DEPRECIATION> 77,376
<TOTAL-ASSETS> 99,215
<CURRENT-LIABILITIES> 151,807
<BONDS> 0
0
0
<COMMON> 88,572
<OTHER-SE> (191,131)
<TOTAL-LIABILITY-AND-EQUITY> 99,215
<SALES> 282,760
<TOTAL-REVENUES> 397,221
<CGS> 0
<TOTAL-COSTS> 350,248
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 46,973
<INCOME-TAX> 0
<INCOME-CONTINUING> 46,973
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 46,973
<EPS-PRIMARY> 0.013
<EPS-DILUTED> 0.013
</TABLE>
