Incoming 10-Q 16 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 16, 2015
Entity Registrant Name	Incoming, Inc.
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Entity Central Index Key	1,423,325
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		33,754,332
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	icnn

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2015		Dec. 31, 2014
Current Assets
Cash	$ 229,387		$ 344
Accounts receivable, trade	3,224		5,728
Accounts receivable, related parties	34,037
Inventory	28,709		10,352
Prepaid expenses	9,312		3,704
Other current assets	400		400
Total current assets	305,069		20,528
Property and equipment, net	644,090		695,496
Total Assets	949,159		716,024
Current Liabilities
Accounts payable	246,166		268,423
Current maturities of long term debt	7,071		21,465
Accrued liabilities	40,167		39,856
Accounts payable - related parties	274,916		274,916
Total current liabilities	568,320		604,660
Total Liabilities	568,320		604,660
Capital stock $.001 par value; 200,000,000 shares authorized	33,754		31,254
Additional paid in capital	6,482,070		6,134,570
Accumulated deficit	(6,134,985)		(6,054,460)
Total Stockholders' Equity	380,839		111,364
Total Liabilities and Stockholders' Equity	949,159		716,024
Class A
Current Liabilities
Capital stock $.001 par value; 200,000,000 shares authorized	31,774	[1]	29,274
Convertible Class B
Current Liabilities
Capital stock $.001 par value; 200,000,000 shares authorized	$ 1,980	[2]	$ 1,980
[1]	31,774,332 and 29,274,332 shares issued and outstanding
[2]	1,980,000 shares issued and outstanding

CONSOLIDATED BALANCE SHEETS (PA

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	200,000,000	200,000,000
Class A
Common Stock, Shares Issued	31,774,332	29,274,332
Common Stock, Shares Outstanding	31,774,332	29,274,332
Class B
Common Stock, Shares Issued	1,980,000	1,980,000
Common Stock, Shares Outstanding	1,980,000	1,980,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue	$ 18,914	$ 28,581	$ 44,338	$ 187,767
Revenue from related parties	34,624	56,525	58,424	66,293
Total revenue	53,538	85,106	102,762	254,060
Cost of revenue	115,371	167,422	301,113	372,834
Depreciation	23,304	23,266	74,674	69,812
Gross profit (loss)	(85,137)	(105,582)	(273,025)	(188,586)
Selling, General, and Administrative Expenses	37,429	33,096	436,446	87,938
Loss on Assets Disposed Due to Fire		4,316		4,316
Other income (expense)
Grant and other income	119	55,966	629,997	134,957
Interest expense	(111)	(708)	(1,051)	(2,272)
Total other income	8	55,258	628,946	132,685
Net loss	$ (122,558)	$ (87,736)	$ (80,525)	$ (148,155)
Class A
Other income (expense)
Net loss per Common Share (Basic and Diluted)	$ 0	$ 0	$ 0	$ (0.01)
Weighted Average Number of Common Shares Outstanding (Basic and Diluted)	31,774,332	29,274,332	31,325,614	29,274,332
Class B
Other income (expense)
Net loss per Common Share (Basic and Diluted)	$ (0.06)	$ (0.04)	$ (0.04)	$ (0.07)
Weighted Average Number of Common Shares Outstanding (Basic and Diluted)	1,980,000	1,980,000	1,980,000	1,980,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Flows from operating Activities
Net income/(loss)	$ (80,525)	$ (148,155)
Adjustments to reconcile net loss to net cash provided by operations:
Depreciation	74,674	69,812
Stock-based compensation	350,000
Loss on Assets Disposed Due to Fire		4,316
Changes in operating assets and liabilities
Accounts receivable	2,504	2,289,614
Accounts receivable - related party	(34,037)	207,802
Prepaid expenses	1,463	6,669
Inventory	(18,357)	(31,471)
Other current assets		300
Accounts payable	$ (22,257)	$ (2,305,516)
Accounts payable - related party
Accrued expenses	$ 5,478	$ (2,234)
Net cash provided by operating activities	278,943	91,137
Cash flows from investing activities
Purchase of fixed assets	(23,268)	(114,432)
Net cash used in investing activities	(23,268)	(114,432)
Cash flows from financing activities
Proceeds from related party debt	105,929
Payments on related party debt	(105,929)
Principal payments on debt	(26,632)	(43,469)
Net cash used in financing activities	(26,632)	(43,469)
Net cash increase (decrease) for period	229,043	(66,764)
Cash at beginning of period	344	91,920
Cash at end of period	229,387	25,156
Supplemental disclosure of cash flow information
Cash paid for interest	1,051	2,272
Cash paid for income taxes	493	4,235
Non-cash investing and financing activities:
Construction in process transferred to property and equipment		131,081
Write-off of fully depreciated assets	134,830	43,339
Unpaid additions to prepaid expenses with debt	$ 7,071	$ 9,520

Note 1 Basis of Presentation, O

Note 1 Basis of Presentation, Organization, and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Notes
Note 1 Basis of Presentation, Organization, and Summary of Significant Accounting Policies	Note 1 Basis of Presentation, Organization, and Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed unaudited financial statements of Incoming, Inc., a Nevada corporation, are condensed and, therefore, do not include all disclosures normally required by accounting principles generally accepted in the United States of America. These statements should be read in conjunction with the Company's most recent annual financial statements for the year ended December 31, 2014 included in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on April 15, 2015. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying condensed financial statements and consist of only normal recurring adjustments. The results of operations presented in the accompanying condensed financial statements for the period ended September 30, 2015 are not necessarily indicative of the operating results that may be expected for the full year ending December 31, 2015. Organization Through our wholly-owned subsidiary North American Bio-Energies LLC (“NABE”), we operate in the alternative energy industry in the development and acquisition of commercial grade biodiesel facilities and the distribution and marketing of petroleum and biofuel products. In addition to operating as NABE, our subsidiary also does business as Foothills Bio-Energies, LLC (“Foothills”).

Note 2 Going Concern

Note 2 Going Concern	9 Months Ended
	Sep. 30, 2015
Notes
Note 2 Going Concern	Note 2 Going Concern These financial statements have been prepared on a going concern basis. As of December 31, 2014, the Company had a working capital deficiency of $584,132, and had accumulated a deficit of $6,054,460. As of September 30, 2015, the Company had a working capital deficiency of $263,251, and had an accumulated deficit of $6,134,985. Its ability to continue as a going concern is dependent upon the ability of the Company to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. The outcome of these matters cannot be predicted with any certainty at this time. These factors raise substantial doubt that the Company will be able to continue as a going concern. The Company to date has funded its initial operations through the issuance of capital stock and common stock options, loans from related parties, and revenue generated in the normal course of business. Management plans to continue to provide for its capital needs by the issuance of common stock and related party advances. These financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern.

Note 3 Related Party Transactio

Note 3 Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Notes
Note 3 Related Party Transactions	Note 3 Related Party Transactions NABE sells a portion of its finished goods to Echols Oil Company, a company owned by our CEO, R. Samuel Bell, Jr. During the nine months ended September 30, 2015, sales to the related company totaled $58,424. As of September 30, 2015, the Company had outstanding receivables from the related party company of $34,037. During the first quarter of 2015, the Company accumulated outstanding debt payables to Echols totaling $105,929. As of September 30, 2015, the Company had repaid its debt to Echols and had no outstanding payables to Echols, but did have $274,916 in related party payables to Green Valley Bio-Fuels. Green Valley Bio-Fuels is considered a related party since it is majority-owned by Mr. Frank A. Gay, who sits on the Company’s Board of Directors.

Note 4 Equity Transactions

Note 4 Equity Transactions	9 Months Ended
	Sep. 30, 2015
Notes
Note 4 Equity Transactions	Note 4 Equity Transactions Effective February 10, 2015, the Board of Directors of the Company approved the Incoming, Inc. 2014 Stock Incentive Plan (the “Plan”). The Plan, under which awards can be granted until February 10, 2025 or the Plan’s earlier termination, provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights (“SARs”), restricted awards in the form of restricted stock awards and restricted stock units, performance awards in the form of performance shares and performance units, phantom stock awards and other stock-based awards to selected employees, directors and independent contractors of the Company and its affiliates. On February 18, 2015, the Compensation Committee of the Board of Directors of the Company approved grants of shares to each of Samuel Bell, the Company’s Chief Executive Officer and Felix Leslie, the Company’s Vice President of Corporate Development. Mr. Bell was awarded two million (2,000,000) shares. Mr. Leslie was awarded Five Hundred Thousand (500,000) shares. Mr. Bell’s award was in consideration of foregone cash compensation over the prior three years. Mr. Leslie’s award was in consideration of service to the Company and foregone cash compensation therefore over the prior year and a half. Each grant was pursuant to the newly adopted Plan. As a result of granting the combined 2.5 million shares of stock, the Company recognized $350,000 in stock-based compensation expense based on our stock’s closing price of $0.14 per share on February 18, 2015.

Note 5 Litigation

Note 5 Litigation	9 Months Ended
	Sep. 30, 2015
Notes
Note 5 Litigation	Note 5 Litigation December 31, 2013 marked the expiration of the IRS tax credit of one dollar per blended gallon of biodiesel. During the first quarter of 2014, NABE sold biodiesel to one customer with the agreement that, in the event the tax credit were to be reinstated, the benefit of the tax credit would be shared equally between the companies. In late December of 2014, the blender tax credit was reinstated retroactively to January 1, 2014 and was effective through December 31, 2014. The IRS issued guidance for filing for the tax credits during the first quarter of 2015. After the end of the first quarter of 2015, the Company was notified by our customer that they had successfully filed for and received the tax credit funds. NABE has subsequently recognized Other Income and has been paid $510,030 for its half of the blender tax credit dollars. In June of 2015, a Plaintiff filed suit against the Company and its subsidiary, NABE. The filing claimed that the Company did not have the right to retain the $510,030 that was received and recognized as Other Income. The Company is currently defending the action.

Note 2 Going Concern (Details)

Note 2 Going Concern (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Details
Working Capital Deficiency	$ (263,251)	$ (584,132)
Accumulated deficit	$ (6,134,985)	$ (6,054,460)

Note 3 Related Party Transact12

Note 3 Related Party Transactions (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Sales	$ 53,538	$ 85,106	$ 102,762	$ 254,060
Accounts receivable, related parties	34,037		34,037
Related Party Payables	274,916		274,916		$ 274,916
Green Valley Bio Fuels
Related Party Payables	274,916		274,916
Chief Executive Officer | Echols Oil Company
Sales			58,424
Accounts receivable, related parties	34,037		34,037
Outstanding Debt Payables	$ 105,929		$ 105,929

Note 4 Equity Transactions (Det

Note 4 Equity Transactions (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Feb. 18, 2015
Stock-based Compensation Expense	$ 350,000
Stock Closing Price		$ 0.14
Restricted Stock Units (RSUs)
Equity Instruments, Granted	2,500,000
Restricted Stock Units (RSUs) | Chief Executive Officer
Equity Instruments, Granted	2,000,000
Restricted Stock Units (RSUs) | VP Corporate Development
Equity Instruments, Granted	500,000

Note 5 Litigation (Details)

Note 5 Litigation (Details)	9 Months Ended
	Sep. 30, 2015USD ($)
Details
Other Income	$ 510,030