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, 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 March 31, 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 March 31, 1997. After issuing these
209,199 shares, the number of outstanding shares will total 3,752,180.
<PAGE>
BALANCE SHEET
ASSETS
March 31, 1997
Unaudited Audited
3/31/97 12/31/96
Current assets:
Cash $ (11,038) $34,201
Accounts receivable:
Trade, net of allowance for
doubtful accounts of $-0- 72,388 94,487
Total current assets 62,948 128,688
Property and equipment, at cost:
Furniture and fixtures 35,344 35,344
Computer equipment 71,469 70,954
106,813 106,298
Less accumulated depreciation 77,376 77,376
Net property and equipment 29,437 28,922
Other assets:
Deposits 1,598 1,598
Total Assets $92,385 $159,208
<PAGE>
INFOAMERICA, INC.
BALANCE SHEET
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
March 31, 1997
3/31/97 12/31/96
Current liabilities:
Accounts payable $ 2,399 $ 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 29,750 82,250
Accrued bonuses and expenses due
officers 62,470 61,511
Convertible notes payable 15,000 15,000
Deferred revenue 15,000 15,000
Total current liabilities 194,947 258,740
Long-term liabilities:
Convertible notes payable - officers 50,000 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 $ 92,385 $ 159,208
<PAGE>
INFOAMERICA, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
For the Three Months Ended March 31, 1996 and 1997
(Unaudited)
For the QTR For the QTR 12 Months
end 3/31/97 end 3/31/96 end 12/31/96
Software Sales 0 186127 $723,171
Equipment Sales 0 22,665 0
Consulting and other sales 76,537 1600 9,174
Software Support Fees 52,679 0 0
__________ __________ __________
TOTAL INCOME 129,216 187727 732,345
========== ========== ==========
Expenses
Cost of Eq. Sold 0 0 19,206
Sales Promotion and
Advertising 2,772 1207 0
General & Admin. 129,474 154869 701,040
__________ __________ __________
TOTAL EXPENSES 132,246 156076 701,040
__________ __________ __________
Net Income (Loss) (3,031) 31651 31,305
========== ========== ==========
Net Income (Loss) Per Share (*) .01 .01
Weighted Average 3,752,180 3,752,180 3,752,180
<PAGE>
INFOAMERICA, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the 3 months ended March 31, 1997
(Unaudited)
Additional
Common Stock Paid-In Accumulated
Shares Amount Capital Deficit
Balance, December 31,
1996 3,542,901 $88,572 $1,977,228 ($2,209,147)
Loss for the 3
months ended
March 31, 1997 --- --- --- ($3,031)
Balances,
March 31, 1997 3,542,901 $88,572 $1,977,228 $(2,212,177)
========= ======= ========== ============
<PAGE>
INFOAMERICA, INC.
STATEMENT OF CASH FLOWS
For the 3 months ended March 31, 1997 and 1996
(Unaudited)
1996 1997
Cash flows from operating activities:
Net income (loss) $ 31,651 $ (3,031)
Adjustments to reconcile net income (loss)
to net cash (used in) operations:
Depreciation and amortization 918 -
(Increase) decrease in trade accounts
receivable 50,422 22,099
Increase (decrease) in accounts payable (46,368) (11,683)
Decrease in salaries payable (2,624) (569)
Increase (decrease) in accrued liabilities 2,638 959
Decrease in customer deposits (52,467) ---
Total Adjustments (47,481) (52,500)
Net Cash Used in Operations (15,830) (44,725)
Cash flows from investing activities:
Proceeds from sale of fixed assets --- ---
Purchases of property and equipment --- (515)
Net Cash Used in Investing Activities --- (515)
Cash flows from financing activities:
Payments on lease (1227) --
Net Cash Used in Financing Activities (1227) --
Net Decrease in Cash (17,057) (45,240)
Cash Balance at Beginning of Period 48,878 34,201
Cash Balance at End of Period $ 31,821 $ (11,038)
========= =========
<PAGE>
INFOAMERICA, INC.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
March 31, 1997
1. Basis of Presentation
The balance sheet at March 31, 1997, and the statements
of operations and cash flows for the three months ended March 31,
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 March 31, 1997, and the results of
operations and cash flows for the periods ended March 31, 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 March 31, 1997, the
Company has a working capital deficit of $131,999 and a
stockholders' deficit of $152,562. 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 March 31,
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
three month period ended March 31, 1997 and 1996.
I. CHANGES IN FINANCIAL CONDITION
Working Capital remained stable during the first three
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:
1st Quarter 1997 vs. 1996: 1997 first quarter results
declined 31% from 1996 levels as 1996 first quarter results
included payment for a major consulting project started in fourth
quarter 1995.
Expenses:
1st Quarter 1997 vs. 1996: 1997 year-to-date expenses
decreased 15% from 1996 levels due primarily to decreased use of
outside consulting services.
Income:
1st Quarter 1997 vs. 1996: 1997 year-to-date profit
decreased $ 28,620 from 1996 levels reflecting reduced revenues.
ITEM 6 -- EXHIBITS AND REPORTS ON FORM 8K
A. Exhibits -- None
<PAGE>
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: 06/05/97 /s/ Paul F. Knight
Paul F. Knight, President and
Chief Financial Officer
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