INTERNET AMERICA INC

CIK:0001001279|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $)	3 Months Ended		9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $)	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
REVENUES:
Internet services	$ 2,110,047us-gaap_SalesRevenueServicesNet	$ 2,059,221us-gaap_SalesRevenueServicesNet	$ 6,270,552us-gaap_SalesRevenueServicesNet	$ 6,053,741us-gaap_SalesRevenueServicesNet
TOTAL REVENUES	2,110,047us-gaap_Revenues	2,059,221us-gaap_Revenues	6,270,552us-gaap_Revenues	6,053,741us-gaap_Revenues
OPERATING EXPENSES:
Connectivity and operations	1,122,632us-gaap_DirectOperatingCosts	1,075,131us-gaap_DirectOperatingCosts	3,362,275us-gaap_DirectOperatingCosts	3,059,764us-gaap_DirectOperatingCosts
Sales and marketing	103,583us-gaap_SellingAndMarketingExpense	79,764us-gaap_SellingAndMarketingExpense	280,553us-gaap_SellingAndMarketingExpense	266,172us-gaap_SellingAndMarketingExpense
General and administrative	561,361	499,592	1,580,676	1,361,738
Depreciation and amortization	189,856us-gaap_DepreciationAndAmortization	200,211us-gaap_DepreciationAndAmortization	606,302us-gaap_DepreciationAndAmortization	576,396us-gaap_DepreciationAndAmortization
TOTAL OPERATING EXPENSES	1,977,432us-gaap_CostsAndExpenses	1,854,698us-gaap_CostsAndExpenses	5,829,806us-gaap_CostsAndExpenses	5,264,070us-gaap_CostsAndExpenses
INCOME FROM OPERATIONS	132,615us-gaap_OperatingIncomeLoss	204,523us-gaap_OperatingIncomeLoss	440,746us-gaap_OperatingIncomeLoss	789,671us-gaap_OperatingIncomeLoss
OTHER INCOME (EXPENSE)
Interest income	1,824us-gaap_InvestmentIncomeInterest	1,773us-gaap_InvestmentIncomeInterest	5,478us-gaap_InvestmentIncomeInterest	5,443us-gaap_InvestmentIncomeInterest
Interest expense	(4,555)us-gaap_InterestExpense	(2,600)us-gaap_InterestExpense	(13,797)us-gaap_InterestExpense	(9,769)us-gaap_InterestExpense
OTHER EXPENSE, net	(2,731)us-gaap_NonoperatingIncomeExpense	(827)us-gaap_NonoperatingIncomeExpense	(8,319)us-gaap_NonoperatingIncomeExpense	(4,326)us-gaap_NonoperatingIncomeExpense
INCOME BEFORE INCOME TAX EXPENSE	129,884	203,696	432,427	785,345
Income tax expense	51,064us-gaap_IncomeTaxExpenseBenefit	13,200us-gaap_IncomeTaxExpenseBenefit	167,470us-gaap_IncomeTaxExpenseBenefit	38,400us-gaap_IncomeTaxExpenseBenefit
NET INCOME	$ 78,820us-gaap_NetIncomeLoss	$ 190,496us-gaap_NetIncomeLoss	$ 264,957us-gaap_NetIncomeLoss	$ 746,945us-gaap_NetIncomeLoss
NET INCOME PER COMMON SHARE:
BASIC	$ 0.00us-gaap_EarningsPerShareBasic	$ 0.01us-gaap_EarningsPerShareBasic	$ 0.02us-gaap_EarningsPerShareBasic	$ 0.04us-gaap_EarningsPerShareBasic
DILUTED	$ 0.00us-gaap_EarningsPerShareDiluted	$ 0.01us-gaap_EarningsPerShareDiluted	$ 0.01us-gaap_EarningsPerShareDiluted	$ 0.04us-gaap_EarningsPerShareDiluted
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
BASIC	16,747,062	16,733,832	16,747,062	16,730,954
DILUTED	19,902,047	19,849,915	19,945,829	19,805,672

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Mar. 31, 2015	Mar. 31, 2014
OPERATING ACTIVITIES:
Net income	$ 264,957us-gaap_NetIncomeLoss	$ 746,945us-gaap_NetIncomeLoss
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	606,302us-gaap_DepreciationAndAmortization	576,396us-gaap_DepreciationAndAmortization
Amortization of discount on accrued purchase consideration	6,564
(Gain) or loss from sale or disposal of assets	(426)	9,904
Provision for bad debt	12,650	72
Stock based compensation	4,358us-gaap_ShareBasedCompensation	20,026us-gaap_ShareBasedCompensation
Deferred tax expense	126,270us-gaap_DeferredIncomeTaxExpenseBenefit
Changes in operating assets and liabilities:
Accounts receivable	82,531	(31,510)
Inventory	(104,639)us-gaap_IncreaseDecreaseInInventories	(32,620)us-gaap_IncreaseDecreaseInInventories
Prepaid expenses and other current assets	15,403	4,896
Other assets		14,448
Accounts payable and accrued liabilities	154,385	52,294
Other long-term assets	(3,815)
Deferred revenue	(34,589)	(26,086)
Net cash provided by operating activities	1,129,951	1,334,765
INVESTING ACTIVITIES:
Purchases of property and equipment	(270,086)	(300,763)
Cash paid for acquisition	(193,433)	(132,108)
Net cash used in investing activities	(463,519)	(432,871)
FINANCING ACTIVITIES:
Principal payments of long-term debt	(148,585)us-gaap_RepaymentsOfLongTermDebt	(170,669)us-gaap_RepaymentsOfLongTermDebt
Principal payments of capital lease	(25,591)
Proceeds from exercise of common stock options		6,125
Net cash used in financing activities	(174,176)	(164,544)
NET INCREASE IN CASH AND CASH EQUIVALENTS	492,256	737,350
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	3,107,142	2,295,190
CASH AND CASH EQUIVALENTS, END OF PERIOD	3,599,398	3,032,540
SUPPLEMENTAL INFORMATION:
Cash paid for interest	14,153us-gaap_InterestPaid	10,199us-gaap_InterestPaid
Cash paid for income taxes		58,415us-gaap_IncomeTaxesPaid
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Accrued purchase consideration for acquisition of subscribers		386,867
Reclass of prepaid asset to fixed assets - vehicles under capital lease	16,475us-gaap_CapitalLeaseObligationsIncurred
Discount of accrued purchase consideration	$ (24,385)us-gaap_NotesReduction

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2015	Jun. 30, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 3,599,398	$ 3,107,142
Accounts receivable, net of allowance for uncollectible accounts of $21,410 and $10,496 as of March 31, 2015 and June 30, 2014, respectively.	120,624us-gaap_AccountsReceivableNetCurrent	215,805us-gaap_AccountsReceivableNetCurrent
Inventory	461,255us-gaap_InventoryNet	354,080us-gaap_InventoryNet
Prepaid expenses and other current assets	74,328	94,001
Deferred tax asset	422,000us-gaap_DeferredTaxAssetsNetCurrent	422,000us-gaap_DeferredTaxAssetsNetCurrent
Total current assets	4,677,605us-gaap_AssetsCurrent	4,193,028us-gaap_AssetsCurrent
Property and equipment, net	1,468,309us-gaap_PropertyPlantAndEquipmentNet	1,585,546us-gaap_PropertyPlantAndEquipmentNet
Goodwill	1,968,127us-gaap_Goodwill	1,968,127us-gaap_Goodwill
Subscriber acquisition costs, net	449,991	691,193
Deferred tax asset	8,051,730us-gaap_DeferredTaxAssetsNetNoncurrent	8,178,000us-gaap_DeferredTaxAssetsNetNoncurrent
Other assets	44,995us-gaap_OtherAssetsNoncurrent	41,181us-gaap_OtherAssetsNoncurrent
TOTAL ASSETS	16,660,757us-gaap_Assets	16,657,075us-gaap_Assets
CURRENT LIABILITIES:
Accounts payable	146,035us-gaap_AccountsPayableTradeCurrent	158,059us-gaap_AccountsPayableTradeCurrent
Accrued liabilities	570,507us-gaap_AccruedLiabilitiesCurrent	597,529us-gaap_AccruedLiabilitiesCurrent
Deferred revenue	763,731us-gaap_DeferredRevenueCurrent	798,320us-gaap_DeferredRevenueCurrent
Current portion of long-term debt and capital lease	39,816	187,029
Total current liabilities	1,520,089us-gaap_LiabilitiesCurrent	1,740,937us-gaap_LiabilitiesCurrent
Other liability, net	175,613us-gaap_OtherLiabilitiesNoncurrent	193,433us-gaap_OtherLiabilitiesNoncurrent
Long-term debt and capital lease, net of current portion	83,682	110,647
Total liabilities	1,779,384us-gaap_Liabilities	2,045,017us-gaap_Liabilities
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, $0.01 par value: 5,000,000 shares authorized, 2,718,428 issued and outstanding as of March 31, 2015 and June 30, 2014.	27,185us-gaap_PreferredStockValue	27,185us-gaap_PreferredStockValue
Common stock, $0.01 par value: 40,000,000 shares authorized, 16,747,062 outstanding as of March 31, 2015 and June 30, 2014.	167,471us-gaap_CommonStockValue	167,471us-gaap_CommonStockValue
Additional paid-in capital	63,074,016us-gaap_AdditionalPaidInCapital	63,069,658us-gaap_AdditionalPaidInCapital
Accumulated deficit	(48,387,299)	(48,652,256)
Total shareholders' equity	14,881,373us-gaap_StockholdersEquity	14,612,058us-gaap_StockholdersEquity
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 16,660,757	$ 16,657,075