<PAGE> 1
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C 20549
FORM 10-QSB/A
(Mark One)
[X] QUARTERLY REPORT SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For quarterly period ended June 30, 1999
-------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF
1934
For the transition period from _________ to _____________
Commission File Number 33-95758
INVESTMENT INCOME PROPERTIES OF AMERICA, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its Charter)
Delaware 65-0544042
- ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
950 NORTH FEDERAL HIGHWAY, SUITE 219 POMPANO BEACH, FLORIDA 33062
- ------------------------------------------------------------ ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 954-783-2004
------------
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check 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 [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date.
2,956,818 shares of outstanding stock as of June 30, 1999
---------
<PAGE> 2
INVESTMENT INCOME PROPERTIES OF AMERICA, INC.
CONDENSED BALANCE SHEETS
(UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
JUNE 30, 1999 DEC. 31, 1998
------------- -------------
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 13,389 $ 40,159
Income Tax receivable 822 --
Due from affiliate 13,726 9,008
Prepaid Expenses 1,096 --
Total current assets 29,033 49,167
----------- -----------
Property, plant and equipment, net 4,726,419 4,790,150
Other assets
Deferred offering costs 5,954 10,225
----------- -----------
Total assets $ 4,761,406 $ 4,849,542
=========== ===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Accounts payable and accrued expense $ 397,985 $ 320,030
Mortgage note payable-current portion 52,745 50,846
Notes payable to related parties 1,512,000 1,515,000
Note payable to affiliate 34,500 34,500
----------- -----------
Total current liabilities 1,997,230 1,920,376
----------- -----------
Mortgage note payable net of current portion 3,917,280 3,943,946
----------- -----------
Commitments and contingencies -- --
Stockholders' Deficiency
Common stock - $.001 par value, 100,000,000
Shares authorized, 2,956,818 and 2,906,561 shares
Issued and outstanding 2,957 2,907
Additional paid-in-capital 5,366,459 5,301,976
Accumulated deficit (6,522,520) (6,319,663)
----------- -----------
Total stockholders' deficit (1,153,104) (1,014,780)
----------- -----------
Total liabilities and stockholders' deficiency $ 4,761,406 $ 4,849,542
=========== ===========
</TABLE>
1
<PAGE> 3
INVESTMENT INCOME PROPERTIES OF AMERICA, INC.
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
----------------------------
1999 1998
----------- -----------
<S> <C> <C>
Revenue
Rental Income $ 391,630 $ 222,043
Expenses
Selling, general and administrative 385,484 282,496
----------- -----------
Gain (Loss) from operations 5,782 (60,453)
Interest Expense 209,448 140,178
Interest Income (808) 3,467)
----------- -----------
Loss before income taxes (202,858) (197,164)
Income taxes -- --
----------- -----------
Net loss $ (202,858) $ (197,164)
=========== ===========
Weighted average shares outstanding 2,929,190 1,083,781
=========== ===========
Net loss per share $ (.07) $ (.18)
=========== ===========
</TABLE>
2
<PAGE> 4
INVESTMENT INCOME PROPERTIES OF AMERICA, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
June 30
------------------------
1999 1998
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net loss $(202,857) $(197,164)
Adjustments to reconcile net loss to net cash
Used in operating activities:
Depreciation expense 63,731 33,777
Changes in operating assets and liabilities
Decrease in other assets 4,272 --
(Increase) decrease in prepaid expenses (6,036) --
Increase (decrease) in accounts payable and
Accrued expenses 77,955 (17,607)
Decrease in Due from Affiliate -- 1,920
--------- ---------
Net cash used in operating activities (63,535) (146,154)
--------- ---------
Cash flows used in investing activities:
Deposit on Building-Centre Place 0 (50,000)
--------- ---------
Net cash used in investing activities 0 (50,000)
--------- ---------
Cash flows from financing activities:
Repayment of principal on mortgage note (24,767) (9,609)
Proceeds from notes payable to related parties (3,000) --
Proceeds from issuance of stock 64,532 652,000
Repayment of note payable to related party -- (45,000)
Repayment of note payable to affiliate -- (29,000)
--------- ---------
Net cash provided by financing activities 36,375 568,391
--------- ---------
Net increase (decrease) in cash and cash equivalents (26,770) 372,237
Cash and cash equivalents at beginning of period 40,159 153,552
--------- ---------
Cash and cash equivalents at end of period $ 13,389 $ 525,789
========= =========
Supplemental information:
Cash paid during the year for:
Interest 209,448 $ 76,778
========= =========
Income taxes $ -- $ --
========= =========
</TABLE>
3
<PAGE> 5
INVESTMENT INCOME PROPERTIES OF AMERICA, INC.
UNAUDITED NOTES TO FINANCIAL STATEMENTS
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited condensed financial statements have been
prepared in accordance with the generally accepted accounting principles for
interim financial information and with the instructions to Form 10-QSB.
Accordingly, they do not include all the information and footnotes required by
generally accepted accounting principles for complete financial statements. In
the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for fair presentation have been included.
Operating results for the six months ending June 30, 1999, are not necessarily
indicative of the results that may be expected for the year ending December 31,
1999.
The balance sheet at December 31, 1998 has been derived from the
audited financial statements at that date, but does not include all the
information and footnotes required by generally accepted accounting principles
for complete financial statements. For further information, refer to the audited
financial statements and footnotes thereto included in the Form 10-KSB filed by
the Company for the year ended December 31, 1998.
NOTE B - FORMATION AND OPERATIONS OF THE COMPANY
Investment Income Properties of America, Inc. (the "Company"), is a
Delaware corporation which intends to qualify as a real estate investment trust
("REIT") under the Internal Revenue code of 1986, as amended (the "Code"). The
Company has a limited operating history. The Company has been formed to invest
primarily in existing residential and commercial properties in the Southeast and
Southwestern regions of the United States. The Company intends to seek
properties which hold potential for appreciation, including properties which may
be suitable for future conversion into condominium units.
4
<PAGE> 6
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.
INVESTMENT INCOME PROPERTIES OF
AMERICA, INC.
October 12, 1999 By: /s/ Fredric B. Layne
- ------------------------------ --------------------------------
(Date) Fredric B. Layne
President and CEO
8
