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EXCEL - IDEA: XBRL DOCUMENT - INFORMATION ARCHITECTS CORP | Financial_Report.xls |
EX-32 - EXHIBIT 32.1 - INFORMATION ARCHITECTS CORP | exhibit321.htm |
EX-31 - EXHIBIT 31.1 - INFORMATION ARCHITECTS CORP | exhibit311.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2012
COMMISSION FILE NUMBER 0-22325
INFORMATION ARCHITECTS CORPORATION
(Exact name of registrant as specified in its charter)
NORTH CAROLINA
State or other jurisdiction of incorporation
87-0399301
IRS Employer Identification No.
7625 Chapelhill Drive
Orlando, FLA 32819
(Address of principal executive offices) (Zip Code)
(954) 358-7099
(Registrants telephone number, including area code)
Indicate by check mark whether we: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that we were required to file such reports), and (2) has been subject to such filing requirements for past 90 days. Yes [X] No []
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No []
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check one)
Large accelerated filer [] Accelerated filer [] Non-accelerated filer [] Smaller reporting company [X] |
Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). [] Yes [X] No
The number of shares of common equity outstanding as at May 21, 2012 was 275,270,272.
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PART I FINANCIAL INFORMATION
ITEM 1 Financial Statements
INFORMATION ARCHITECTS CORPORATION | ||
CONSOLIDATED BALANCE SHEETS | ||
(Derived | ||
from | ||
audited | ||
financial | ||
(UNAUDITED) | statements) | |
March 31, | December 31, | |
2012 | 2011 | |
Assets | ||
Current assets | ||
Cash | $ 189 | $ 54 |
Accounts receivable - trade | - | - |
Total current assets | 189 | 54 |
Property and equipment - net | - | - |
Total assets | $ 189 | $ 54 |
Liabilities and shareholders' deficit | ||
Current liabilities | ||
Accounts payable - trade | $ 17,422 | $ 14,663 |
Other - payroll taxes | 75,128 | 75,128 |
Short term notes payable | 20,000 | 20,000 |
Accrued salaries related party | 566,250 | 427,500 |
Shareholder advances | 19,181 | 19,181 |
Total current liabilities | 697,981 | 556,472 |
Shareholders' deficit | ||
Preferred stock (Authorized 500,000,000 shares, par value $0.001) | ||
Preferred B - 2012 - 4,496,227; 2011 - 5,465,767 | 4,496 | 5,466 |
Common stock (Authorized 2,000,000,000 shares, par value $0.001) | ||
(Issued 2012 - 266,750,272 and 2011 - 169,796,272 shares) | 266,750 | 169,796 |
Paid in capital | 76,865,620 | 76,961,604 |
Deferred stock based compensation | - | (115,080) |
Accumulated deficit | (77,834,658) | (77,578,204) |
Total shareholder deficit | (697,792) | (556,418) |
Total liabilities and shareholders' deficit | $ 189 | $ 54 |
The accompanying unaudited notes are an integral part of these financial statements |
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INFORMATION ARCHITECTS CORPORATION | ||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
FOR THE QUARTERS ENDED MARCH 31, 2012 AND 2011 | ||
2012 | 2011 | |
Sales | $ - | $ - |
Less cost of goods sold | - | - |
Gross profit | - | - |
General and administrative expenses | 256,454 | 33,692 |
Losse from operations | (256,454) | (33,692) |
Other income (expense) | - | - |
Net loss | $ (256,454) | $ (33,692) |
Weighted average common shares outstanding | 218,273,272 | 5,489,361 |
Basic and diluted loss per share | $ (0.00)* | $ (0.01) |
· Less than $0.01 per share | ||
See the accompanying notes to unaudited condensed financial statements |
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INFORMATION ARCHITECTS CORPORATION | ||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
FOR THE QUARTERS ENDED MARCH 31, 2012 AND 2011 | ||
Quarter ended | ||
March 31, | ||
2012 | 2011 | |
Net loss | $ (256,454) | $ (33,692) |
Adjustments to reconcile net loss to cash provided by (used) | ||
in operating activities | ||
Deferred stock based compensation | 115,080 | |
Changes in: | ||
Accounts payable | 2,759 | 867 |
Accrued wages | 138,750 | - |
Net cash provided by ( used in) operating activities | 135 | (32,825) |
Cash flows provided by financing activities | ||
Cash from short term notes payable | - | 20,000 |
Cash from shareholder advances | - | 6,400 |
Capital contribution | - | 7,000 |
Net cash provided by financing activities | - | 33,400 |
Net change in cash | 135 | 575 |
Cash - Beginning of period | 54 | - |
Cash - End of period | $ 189 | $ 575 |
Supplemental cash flow information: | ||
Cash paid during the period for interest | $ - | $ - |
Cash paid during the period for taxes | $ - | $ - |
See the accompanying notes to unaudited condensed financial statements |
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INFORMATION ARCHITECTS CORPORATION
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
INTERIM FINANCIAL STATEMENTS
The accompanying condensed financial statements of Information Architects Corporation (the Company, we, us, or our) have been prepared in accordance with the instructions to quarterly reports on Form 10-Q. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in financial position at March 31, 2012, and for all periods presented, have been made. Certain information and footnote data necessary for a fair presentation of financial position and results of operations in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted. It is therefore suggested that these financial statements be read in conjunction with the summary of significant accounting policies and notes to financial statements included in the Companys Annual Report on Form 10-K filed with the Securities and Exchange Commission (the SEC) for the year ended December 31, 2011. The results of operations for the period ended March 31, 2012 are not necessarily an indication of operating results for the full year.
Principles of Consolidation
The accompanying financial statements include the accounts of Information Architects Corporation and its wholly owned subsidiary, IA Green Corp.
Loss per share
Loss per share of common stock is computed based on the weighted average number of common shares outstanding during the period. Conversion of preferred shares are not considered in the calculation, as the impact of the potential common shares (totaling 449,622,700 shares at March 31, 2012 and 546,576,700 at December 31, 2011) would be to decrease loss per share. Therefore, diluted loss per share is equivalent to basic loss per share.
Going Concern
The accompanying interim financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred operating losses, has a retained deficit and limited liquid assets. Management's plans with regard to these matters are to actively search for merger candidates and for opportunities for related funding activities. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Companys ability to continue as a going concern depends on the success of management's plans in this regard.
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Note 1 Equity transactions
During the quarter ended March 31, 2012 969,540 Preferred B shares were converted to 96,954,000 common shares.
Note 3 Short term notes payable
During the first quarter of 2011, the Company borrowed $20,000 under the terms of three separate short term notes payable from unrelated parties. The notes were still outstanding at March 31, 2012 and did not contain a due date for repayment.
Note 5 Income Taxes
The Company records its income taxes in accordance with ASC 740 Income Taxes. The Company incurred net operating losses during all periods presented resulting in a deferred tax asset, which has been fully allowed for; therefore, the net benefit and expense resulted in no income taxes.
Note 6 Related Party Transactions
During the quarter ended March 31, 2012, the Company had the following related party transactions:
Salaries were accrued totaling $138,750.
Note 7 Subsequent Events
The Company has evaluated events and transactions occurring subsequent to March 31, 2012 and through May 21, 2012, the date these financial statements were available to be issued. During this period, there were no subsequent events other than those described below requiring recognition or disclosure in the accompanying financial statements.
ITEM 2 - Managements Discussion and Analysis of Financial Condition and Results of Operations
We were founded in 1982 as a Utah corporation under the name of Enertronix Corporation. In 1992 we changed our name to Alydaar Software Corporation ("Alydaar"). Alydaar later changed its corporate domicile to North Carolina through a merger with and into Daar Corporation, a North Carolina corporation established by Alydaar. Alydaar was the surviving corporation. On June 28, 1999 we changed our name to Information Architects Corporation. Information Architects Corporation is referred to herein as the "Company" or "IA." The Company is currently listed as active in the State of North Carolina.
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Results of Operations
Three-month Period Ended March 31, 2012 compared to Three-month Period Ended March 31, 2011
The Companys activities during the quarter ended March 31, 2011 consisted primarily of the payment of various general and administrative expenses. For the quarter ended March 31, 2012, accrued salaries and recognition of deferred stock based compensation resulted in a much higher quarterly loss.
Liquidity and Capital Resources
At March 31, 2012 and December 31, 2011, the Company had $189 and $54 cash or cash equivalents, respectively.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS
Certain statements in Managements Discussion and Analysis of Financial Condition and Results of Operations and other portions of this report are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements or our industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as may, will, could, would, should, expect, plan, anticipate, intend, believe, estimate, predict, potential or other comparable terminology. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Unless otherwise required by applicable securities laws, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Item 3 - Quantitative and Qualitative Disclosures about Market Risk
Not applicable to smaller reporting companies.
Item 4 - Controls and Procedures
Evaluation of Disclosure Controls and Procedures.
Our management, including our acting chief executive officer, has conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) and 15d-15(e)) as of the last day of the period of the accompanying interim financial statements (the Evaluation Date). Based on that review and evaluation, our acting chief executive officer concluded that, as of the Evaluation Date, our disclosure controls and procedures were adequate and effective to ensure that material information relating to us would be made known to them by others within the Company in a timely manner, particularly during the period in which this quarterly report on Form 10-Q was being prepared, and that no changes are required at this time.
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Changes in Internal Control over Financial Reporting
There was no change in internal controls over financial reporting (as defined in Rule 13a-15(f) promulgated under the Securities Exchange Act or 1934) identified in connection with the evaluation described in the preceding paragraph that occurred during the Companys first fiscal quarter that has materially affected or is reasonably likely to materially affect the Companys internal control over financial reporting.
PART II OTHER INFORMATION
Item 1 - Legal Proceedings
We were not subject to any legal proceedings during the three months ended March 31, 2012 or 2011 and, to the best of our knowledge, no legal proceedings are pending or threatened.
Item 1A - Risk Factors
Not applicable to smaller reporting companies.
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item 3 - Defaults Upon Senior Securities
None.
Item 4 - Mine Safety Disclosures
Not applicable.
Item 5 - Other Information
None.
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Item 6 - Exhibits
| 31.1 | Certification of Chief Financial Officer Pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934 (1) |
| 32.1 | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (1) (2) |
(1) Filed herewith.
(2) Furnished upon request.
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.
INFORMATION ARCHITECTS CORPORATION
DATED:
May 21, 2012,
Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
BY: /s/ Thomas M Jaspers
Thomas M Jaspers
Chief Financial Officer
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