Page 1
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, 1998 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, 1998, Registrant had 3,405,731 shares of its $0.025 par
value common stock outstanding. An additional 256,199 shares have been
authorized but not issued as of March 31, 1998. After issuing these 256,199
shares, the number of outstanding shares will total 3,661,930.
<PAGE>
BALANCE SHEET
ASSETS
March 31, 1998
Unaudited Audited
3/31/98 12/31/97
Current assets:
Cash $ 66,231 $ 50,255
Accounts receivable:
Trade, net of allowance for
doubtful accounts of $-0- 40,965 38,632
Total current assets 107,196 88,887
Property and equipment, at cost:
Furniture and fixtures 35,344 35,344
Vehicles 52,170 52,170
Computer equipment 75,662 75,662
-------- --------
163,176 163,176
Less accumulated depreciation 87,635 87,635
-------- --------
Net property and equipment 75,541 75,541
Other assets:
Deposits 1,598 1,598
-------- --------
Total Assets $184,336 $166,026
======== ========
<PAGE>
INFOAMERICA, INC.
BALANCE SHEET
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
March 31, 1998
3/31/98 12/31/97
Current liabilities:
Accounts payable $ 5,717 $ 10,019
Accrued salaries and payroll taxes 4,387 4,387
Accrued interest 52,924 52,924
Accrued profit sharing plan
contribution 14,543 14,542
Customer deposits 40,000 40,000
Accrued bonuses and expenses due
officers 50,080 63,925
Advances Payable to Officers 11,979 11,979
Current Portion of Notes Payable 5,471 6,972
Unearned Revenue 25,000 -
Convertible notes payable 15,000 15,000
Deferred revenue 15,000 15,000
---------- ----------
Total current liabilities 240,101 234,748
Long-term liabilities:
Convertible notes payable - officers 50,000 50,000
Notes Payable-Vehicles 31,838 31,838
Total Long Term Liabilities 81,838 81,838
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 83,356 83,356
Additional paid-in capital 1,977,228 1,977,228
Accumulated deficit (2,198,187) (2,211,144)
Total stockholders' equity (deficit) (137,604) (150,560)
---------- ----------
Total Liabilities & Stockholder Equity $ 184,335 $ 166,026
========== ==========
<PAGE>
INFOAMERICA, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
For the Three Months Ended March 31, 1997 and 1998
(Unaudited)
<TABLE>
<S> <C> <C> <C>
For the QTR For the QTR 12 Months
end 3/31/97 end 3/31/98 end 12/31/97
Software Sales 0 61,199 $490,832
Equipment Sales 0 0 0
Consulting and other sales 76,537 18,094 4,770
Software Support Fees 52,679 25,000 0
---------- ---------- ----------
TOTAL INCOME 129,216 104,294 495,602
========== ========== ==========
Expenses
Cost of Eq. Sold 0 0
Sales Promotion and
Advertising 2,772 0 0
General & Admin. 129,474 91,337 497,599
---------- ---------- ----------
TOTAL EXPENSES 132,246 91,337 497,599
---------- ---------- ----------
Net Income (Loss) (3,031) 12,956 (1,997)
========== ========== ==========
Net Income (Loss) Per Share * * *
Weighted Average 3,542,981 3,405,731 3,405,731
</TABLE>
<PAGE>
INFOAMERICA, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the 3 months ended March 31, 1998
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C>
Additional
Common Stock Paid-In Accumulated
Shares Amount Capital Deficit
Balance, December 31,
1997 3,405,731 $88,572 $1,977,228 ($2,211,144)
Profit for the 3
months ended
March 31, 1998 --- --- --- $12,956
Balances,
March 31, 1998 3,405,731 $88,572 $1,977,228 ($2,198,187)
========= ======= ========== ============
</TABLE>
<PAGE>
INFOAMERICA, INC.
STATEMENT OF CASH FLOWS
For the 3 months ended March 31, 1998 and 1997
(Unaudited)
<TABLE>
<S> <C> <C>
1998 1997
---------- ------
Cash flows from operating activities:
Net income (loss) $ 12,956 $ (3,031)
Adjustments to reconcile net income (loss)
to net cash (used in) operations:
Depreciation and amortization -
(Increase) decrease in trade accounts
receivable (2,333) 22,099
Increase (decrease) in accounts payable (4,308) (11,683)
Decrease in salaries payable (13,845) (569)
Increase (decrease) in accrued liabilities (1,501) 959
Decrease in customer deposits 25,000
Total Adjustments 3,013 (52,500)
- ---------
Net Cash Used in Operations 15,969 (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 --
Net Cash Used in Financing Activities ___ --
------- --------
Net Increase in Cash 15,969 (45,240)
Cash Balance at Beginning of Period 50,255 34,201
-------- --------
Cash Balance at End of Period $ 66,231 $ (11,038)
========= =========
</TABLE>
<PAGE>
INFOAMERICA, INC.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
March 31, 1998
1. Basis of Presentation
The balance sheet at March 31, 1998, and the statements of
operations and cash flows for the three months ended March 31, 1998 and 1997,
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, 1998, and the results of operations
and cash flows for the periods ended March 31, 1998 and 1997.
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, 1998, the Company has a working capital deficit of $132,905 and a
stockholders' deficit of $137,604. 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 1998 in
an effort to expand its presence 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 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, 1998 and 1997
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, 1998 and 1997.
<PAGE>
I. CHANGES IN FINANCIAL CONDITION
Working Capital remained stable during the first three months of 1998 due
to a breakeven performance. It is anticipated that the Company's financial
condition will remain the same during the balance of 1998 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 1998 vs. 1997: 1998 first quarter results declined 19%
from 1997 levels as 1997 first quarter results included payment for a major
consulting project started in 1995.
Expenses:
1st Quarter 1998 vs. 1997: 1998 year-to-date expenses decreased 31%
from 1997 levels due primarily to decreased use of outside consulting services
and a reduction in staff.
Income:
1st Quarter 1998 vs. 1997: 1998 year-to-date profit increased
$15,987 from 1997 levels reflecting reduced expenses.
<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: May 19, 1998 /s/ Paul F. Knight
---------------------- -------------------------
Paul F. Knight, President and
Chief Financial Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 66,231
<SECURITIES> 0
<RECEIVABLES> 40,965
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 107,196
<PP&E> 163,176
<DEPRECIATION> 87,635
<TOTAL-ASSETS> 184,336
<CURRENT-LIABILITIES> 240,101
<BONDS> 50,000
0
0
<COMMON> 83,356
<OTHER-SE> (220,959)
<TOTAL-LIABILITY-AND-EQUITY> 184,335
<SALES> 129,216
<TOTAL-REVENUES> 129,216
<CGS> 0
<TOTAL-COSTS> 132,246
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (3,031)
<INCOME-TAX> 0
<INCOME-CONTINUING> (3,031)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,031)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
