FORM 10QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Under Section 13 or 15(d)
Of the Securities Exchange Act of 1934
For Quarter Ended March 31, 1996
Commission File Number 33-16531-D
INTERNATIONAL AUTOMATED SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
UTAH 87-0447580
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification
No.)
512 South 860 East
American Fork, Utah 84003
(Address of principal executive offices)
Registrant's telephone number
including area code (801)763-9965
Not Applicable
Former Address,if changed since last report
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 proceeding 12
months (or 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 No x
As of March 31, 1996, registrant had 9,186,100 shares of
common stock, no par value per share, issued and
outstanding.
PART I
ITEM I - FINANCIAL STATEMENTS
The condensed financial statements included herein have
been prepared by International Automated Systems, Inc. (the
"Company" or the "Registrant"), without audit, pursuant to
the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures
normally included in financial statements prepared in
accordance with generally accepted accounting principles
have been condensed or omitted pursuant to such rules
and regulations, although the Company believes that the
disclosures are adequate to make the information presented
not misleading.
In the opinion of the Company, all adjustments,
consisting of only normal recurring adjustments, necessary
to present fairly the financial position of the Company as
of March 31,1996, and the results of its operations from
June 30, 1995, through March 31, 1996, and from January
1,1996, through March 31, 1996, and changes in its financial
position from inception through March 31, 1996, have been
made. The results of its operations for such interim period
is not necessarily indicative of the results to be expected
for the entire year.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources. As of March 31, 1996,
Registrant had cash of $241,559. Cash increased because of
the sale of equity securities in the amount of $706,000 with
yielding net proceeds after offering expenses of
approximately $680,000. Inventory increased to $183,883.
Total current assets were $447,129 and total assets were
$534,290. Registrant had total liabilities of $36,764 and
shareholders' equity of $497,526. As of June 30, 1995,
Registrant had cash and total current assets of $10,049 and
had current liabilities of $153,964 and shareholders' equity
of $(81,512). Funds from the sale of common stock were used
to pay and reduce liabilities. As of March 31, 1996, the
ratio of current assets to current liabilities was
approximately fourteen to one. As of June 30, 1995, the
Company was technically insolvent because liabilities
exceeded assets.
Results of Operation. For the quarter ended March 31,
1996, Registrant had revenues of $47,983 compared to total
revenues of $1,500 for the same period a year earlier. For
the quarter ended March 31, 1996, Registrant had expenses of
$278,715 compared to expenses of $51,006 for the same
period a year earlier. The increase in income reflects
funds received from sales of $44,700. For the quarter ended
March 31, 1996, Registrant had a net loss of $(231,032)
compared to a net loss of $(49,506) for the same period a
year earlier. The increase in net loss is attributable to
the increase in general and administrative expenses.
General and administrative expenses were $278,406 compared
to $51,006 for the same period a year earlier.
For the nine period ended March 31, 1996, had total revenues
$259,436 compared total revenues of $4,500 for the same
period a year earlier. Expenses for nine months were
$465,110 compared to $103,470 for the same period a year
earlier. Net loss per share was $(0.02284) compared to
$(0.01111) for the same period a year earlier. Sales were
$85,220 compare to none and consulting services were
$171,233. The increase in general and administrative
expenses to $464,474 reflects the increase level of
operations and start up costs associated with the
manufacturing of the Automatic Fingerprint Identification
Machine.
Part II.
Item 1. Legal Proceedings.
None.
Item 2. Changes in Securities.
During the quarter Registrant issued 176,500 shares
of common stock, no par value per share. The shares were
sold to a approximately nineteen investors at $4.00 per
share and the Company realized total proceeds of $706,000
and net proceeds of approximately $680,000. In addition,
the Company issued 3,000 shares for services.
Item 3. Defaults upon Senior Securities.
None.
Item 4. Matters Submitted to a Vote of the Company's
Shareholders.
None.
Item 5. Other Information.
None.
Item 6. Exhibits, Financial Statements, Schedules and
Reports on Form 8-K.
A. Exhibits.
Financial Data Summary.
B. Reports on Form 8-K.
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.
Date
International Automated Systems, Inc.
By
INTERNATIONAL AUTOMATED SYSTEMS
(A Development Stage Company)
STATEMENT OF OPERATIONS
Six Months Ending Dec 1995 & Six Months Ending Dec 1994
Unaudited
Six Months Six Months
March March
1996 1995
Revenues 85,220 0
Sales 171,233 0
Consulting Services 0 0
Equipment Lease Income 0 4,500
Total Revenue 59,436 4,500
Expenses
General and Administrative 464,474 103,470
Interest on Notes 636 0
Total Expenses 465,110 103,470
NET LOSS (205,674) (98,970)
Net Income Per Common Share
Net Loss Per Common Share 0.02284 0.01111
Average Share Outstanding 9006600 8906600
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<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> MAR-31-1996
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