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
June 30, 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 June 30, 1998, Registrant had 3,581,231 shares of its $0.025 par value
common stock issued and outstanding. An additional 80,699 shares have been
authorized but not issued as of June 30, 1998. After issuing these 80,699
shares, the number of outstanding shares will total 3,661,930.
<PAGE>
BALANCE SHEET
ASSETS
June 30, 1998
Unaudited Audited
6/30/98 12/31/97
Current assets:
Cash $ (13,841) $ 50,255
Accounts receivable:
Trade, net of allowance for
doubtful accounts of $-0- 117,414 38,632
Total current assets 103,573 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 92,835 87,635
-------- --------
Net property and equipment 70,341 75,541
Other assets:
Deposits 1,598 1,598
-------- --------
Total Assets $175,513 $166,026
======== ========
<PAGE>
INFOAMERICA, INC.
BALANCE SHEET
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
June 30, 1998
6/30/98 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 - 6,972
Convertible notes payable 15,000 15,000
Deferred revenue 15,000 15,000
---------- ----------
Total current liabilities 209,630 234,748
Long-term liabilities:
Convertible notes payable - officers 50,000 50,000
Notes Payable-Vehicles 35,509 31,838
Total Long Term Liabilities 85,509 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,
3,581,231 shares issued and outstanding 83,356 83,356
Additional paid-in capital 1,977,228 1,977,228
Accumulated deficit (2,180,211) (2,211,144)
Total stockholders' equity (deficit) (119,627) (150,560)
---------- ----------
Total Liabilities & Stockholder Equity $ 175,513 $ 166,026
========== ==========
<PAGE>
INFOAMERICA, INC.
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1997 and 1998
(Unaudited)
For the Qtr. For the Qtr. For the 6 For the 6
Ended Ended Mos. Ended Mos. Ended
6/30/98 6/30/97 6/30/98 6/30/97
Software Development 66,096 81,530 127,294 158,067
Support Fees 63,865 53,250 88,865 105,750
Royalty Income 12,416 500 12,416 500
Interest 75 - 254
Miscellaneous 600 18,094 600
TOTAL INCOME $142,375 $ 135,955 $ 246,669 $ 265,171
=========== =========== ========== ==========
Expenses
Sales Promotion
& Advertising - 500 - 3,228
General & Admin. 124,399 116,346 215,736 245,866
-------- ---------- ------------ ------------
TOTAL EXPENSES $124,399 $ 116,846 $ 215,736 $ 249,094
-------- ---------- --------- ----------
Net Income (Loss) $ 17,976 $ 19,109 $ 30,933 $ 16,078
======== ========== ========== ==========
Net Income (Loss)
Per Share $ .005 $ .005 $ .009 $ .004
========== ========== ========== =======
Weighted Avg.
Shares 3,581,231 3,542,981 3,581,231 3,542,981
<PAGE>
(Unaudited)
INFOAMERICA, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the 6 months ended June 30, 1998
(Unaudited)
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 6
months ended
June 30, 1998 175,500 --- --- $30,933
Balances,
June 30, 1998 3,581,231 $88,572 $1,977,228 $(2,180,211)
========= ======= ========== ============
<PAGE>
INFOAMERICA, INC.
STATEMENT OF CASH FLOWS
For the 6 months ended June 30, 1997 and 1998
(Unaudited)
1997 1998
---------- ------
Cash flows from operating activities:
Net income (loss) $ 16,078 $ 30,933
Adjustments to reconcile net income
(loss) to net cash (used in) operations:
Depreciation and amortization - 5,200
(Increase) decrease in trade accounts
receivable 63,065 (78,782)
(Increase) decrease in other current
assets 17,965 -
Increase (decrease) in accounts payable (12,683) (4,302)
Decrease in salaries payable (569) -
Increase (decrease) in accrued liabilities (5,324) (20,817)
Decrease in customer
deposits (78,750) -
Total Adjustments (16,296) (98,701)
--------- -------
Net Cash Used in Operations (218) (67,768)
Cash flows from investing activities:
Proceeds from sale of fixed assets --- ---
Purchases of property and equipment (2,293) 3,671
------------- --------
Net Cash Used in Investing Activities (2,293) 3,671
Cash flows from financing activities:
Payments on notes payable --- ---
--------- ---------
Net Cash Used in Financing Activities --- ---
--------- ---------
Net Decrease in Cash (2,511) (64,096)
Cash Balance at Beginning of Period 34,201 50,255
-------- -------
Cash Balance at End of Period $ 31,691 $(13,841)
<PAGE>
INFOAMERICA, INC.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
June 30, 1998
1. Basis of Presentation
The balance sheet at June 30, 1998, and the statements of operations
and cash flows for the six months ended June 30, 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 June 30, 1998, and the results of operations and cash
flows for the periods ended June 30, 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 June
30, 1998, the Company has a working capital deficit of $106,057 and a
stockholders' deficit of $119,626.
The Company intends to pursue the fast food industry during 1998 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, 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 six month period ended June 30,
1998 and 1997.
<PAGE>
I. CHANGES IN FINANCIAL CONDITION
Working Capital improved during the first six months of 1998 due to the
nominal profit 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.
The Company is actively seeking a company in order to complete a reverse
merger. The goal of this merger is to add value to the Company's common stock
and create value for the shareholders.
II. RESULTS OF OPERATIONS
Revenues:
Year-to-date 1998 vs. 1997: 1998 YTD results declined 7% from
1997 levels as 1997 six month results included payment for a major consulting
project started in 1995.
Expenses:
Year-to-Date 1998 vs. 1997: 1998 year-to-date expenses decreased
13% from 1997 levels due primarily to decreased use of outside consulting
services.
Income:
Year-to-Date 1998 vs. 1997: 1998 year-to-date profit increased
$ 14,855 from 1997 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
<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:August 12, 1998 /s/Paul F. Knight
-----------------------------
Paul F. Knight, President and
Chief Financial Officer
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