<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 1999.
OR
/ / TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE TRANSITION FROM _______ TO ________.
COMMISSION FILE NUMBER 0-26856
---------
QUADRATECH, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Nevada 95-4396848
-------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
300 North Baldwin Park Boulevard
City of Industry, California 91746
---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
126 West Maple Avenue
Monrovia, California 91016
----------------------------------------------
(Former name, former address and former fiscal
year, 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 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 / / No /X/
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date: At June 30, 1999,
there were outstanding 21,513,301 shares of the Registrant's Common
Stock, $.001 par value.
Transitional Small Business Disclosure Format: Yes / / No /X/
<PAGE> 2
PART I
FINANCIAL INFORMATION
Item I. Financial Statements
Item II. Management's Discussion and Analysis or Plan of Operation
Results of Operation.
For the quarter ended June 30, 1999, the Company had continued to focus
on marketing its oil absorbent products.
The Company has continued to maintain its reduced selling, general and
administrative costs decreased substantially as a result of a reduction in
personnel and decreased marketing costs associated with the sale of products to
its customers.
Liquidity and Capital Resources.
The liquidity of the Company and its available capital resources have
not improved.
The Company believes that internally generated funds and the sale and
issuance of stock for cash or in cancellation of indebted may provide minimum
capital resources to finance operations and fund capital expenditures. The
Company's need for funds has been reduced predicated upon the significant
reduction in property rental and maintenance expenses and the reduction of
marketing costs and research activities.
PART II
OTHER INFORMATION
Item 1 - Legal Proceedings .................................................None
Item 2 - Changes in the Rights of the Company's
Security Holders ..................................................None
Item 3 - Defaults by the Company on its
Senior Securities .................................................None
Item 4 - Submission of Matter to Vote of Security
Holders ...........................................................None
<PAGE> 3
Item 5 - Other Information.
(a) As of April 1, 1999, the Company entered into a Plan and Agreement
of Reorganization with Accu Chem Conversion, Inc., a California
corporation and its shareholders. See Item 6 below.
Item 6 - Exhibits and Reports on Form 8-K.
(a) On October 22, 1999, the Company filed a Form 8-K with the
Securities and Exchange Commission which contains a description of
the transaction by and between the Company, Accu Chem Conversion,
Inc. and its shareholders and contains financial information of
the Company and Accu Chem Conversion, Inc. and a proforma
financial statement reflecting the business combination.
SIGNATURE
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.
Dated: October 26, 1999 QUADRATECH, INC.
(Company)
By: /s/ Craig G. Robitaille
--------------------------
Craig G. Robitaille,
President
<PAGE> 4
To the Board of Directors
Quadratech, Inc.
Monrovia, California
I have compiled the accompanying consolidated balance sheets of Quadratech, Inc.
(a Nevada corporation) and its wholly-owned subsidiary, Oil Scavenger Absorbent,
Inc.(a California corporation), as of June 30, 1999, and the related
consolidated statements of operations and accumulated deficit for the three and
six months ended June 30, 1999 and 1998, and cash flows for the three months
ended June 30, 1999 and 1998, in accordance with Statements on Standards for
Accounting and Review Services issued by the American Institute of Certified
Public Accountants.
A compilation is limited to presenting in the form of financial statements
information that is the representation of management. I have not audited or
reviewed the accompanying financial statements and, accordingly, do not express
an opinion or any other form of assurance on them.
The accompanying consolidated financial statements have been prepared assuming
that the Company will continue as a going concern. As discussed in the Note 9 to
the consolidated financial statements, the Company's significant operating
losses, working capital deficiency and deficit in stockholders' equity raise
substantial doubt about their abilities to continue as a going concern. The
consolidated financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
I have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet as of December 31, 1998, and the
related consolidated statements of income, stockholders' equity and cash flows
for the year then ended (not presented herein.) In my report dated February 8,
1999, I expressed an unqualified opinion on those consolidated financial
statements. In my opinion, the information set forth in the accompanying
consolidated balance sheet as of December 31, 1998, is fairly stated in all
material respects in relation to the consolidated balance sheet from which it
has been derived.
Pasadena, California
August 27, 1999
<PAGE> 5
QUADRATECH, INC. & SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
------------ ------------
<S> <C> <C>
Current Assets
Cash $ 15,314 $ 12,261
Account Receivables 11,788 36,528
Inventories 3,838 3,838
------------ ------------
Total Current Assets 30,940 52,627
------------ ------------
Property and Equipment
Furniture and Equipment 86,871 84,502
Plant and Machinery 66,900 66,900
Motor Vehicles 8,818 8,818
------------ ------------
162,589 160,220
Less: Accumulated Depreciation (117,576) (105,450)
------------ ------------
Total Property and Equipment 45,013 54,770
------------ ------------
Other Assets
Patents, Marks and Copyrights, net of
accumulated amortization of $3,323
and $2,878, respectively 12,692 12,667
Deposits 6,825 6,825
------------ ------------
Total Other Assets 19,517 19,492
------------ ------------
TOTAL ASSETS $ 95,470 $ 126,889
============ ============
</TABLE>
See Accompanying Notes and Accountant's Report
2
<PAGE> 6
QUADRATECH, INC. & SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
------------ ------------
<S> <C> <C>
Current Liabilities
Accounts Payable $ 2,314 $ 14,248
Accrued Expenses 517 3,567
Notes Payable, current Portion 144,500 316,500
------------ ------------
Total Current Liabilities 147,331 334,315
------------ ------------
Long-Term Liabilities
Long-term debt 43,500 50,500
------------ ------------
Total Liabilities 190,831 384,815
------------ ------------
Stockholders' Equity (Deficit)
Common Stock, $.001 par value, 50,000,000
shares authorized; 21,513,301 shares
issued and outstanding in 1999, and
18,611,228 shares in 1998 21,513 18,611
Paid-in Capital 3,239,245 2,891,707
Accumulated Deficit (3,356,119) (3,168,244)
------------ ------------
Total Stockholders' Equity (Deficit) (95,361) (257,926)
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ 95,470 $ 126,889
============ ============
</TABLE>
See Accompanying Notes and Accountant's Report
3
<PAGE> 7
QUADRATECH, INC. & SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS AND ACCUMULATED DEFICIT
(Unaudited)
<TABLE>
<CAPTION>
Three Months ended Six Months ended
June 30, June 30,
--------------------------------- ---------------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
SALES $ 17,249 $ 12,438 $ 35,953 $ 28,227
Less: Discount Taken - (507) - (907)
------------ ------------ ------------ ------------
NET SALES 17,249 11,931 35,953 27,320
COST OF SALES - SCHEDULE A 10,171 11,407 30,395 25,763
------------ ------------ ------------ ------------
GROSS PROFIT 7,078 524 5,558 1,557
OPERATING EXPENSES - SCHEDULE B 44,055 54,538 103,854 121,349
------------ ------------ ------------ ------------
INCOME (LOSS) FROM OPERATIONS (36,977) (54,014) (98,296) (119,792)
------------ ------------ ------------ ------------
OTHER INCOME (EXPENSES)
Interest Income - 13 - 32
Other Income 10,250 47 10,273 47
Depreciation and Amortization (6,304) (7,308) (12,571) (14,616)
Interest Expenses (1,253) (6,453) (2,513) (11,915)
Penalties and Late Charges (242) (58) (2,058) (58)
Recovery from Cash Embezzlement - 900 - -
Sales Tax - Prior Years - - (2,000) -
Officer's Life Insurance (1,470) - (1,470) -
Officer's Salaries - (10,250) (10,000) (16,250)
Officer's Salaries - Backpay - - (68,440) -
------------ ------------ ------------ ------------
Total Other Income (Expenses) 981 (23,109) (88,779) (42,760)
------------ ------------ ------------ ------------
NET INCOME (LOSS) BEFORE TAXES (35,996) (77,123) (187,075) (162,552)
PROVISION FOR INCOME TAXES - - 800 800
------------ ------------ ------------ ------------
NET INCOME (LOSS) (35,996) (77,123) (187,875) (163,352)
ACCUMULATED DEFICIT
Beginning Balance (3,320,123) (2,938,030) (3,168,244) (2,850,622)
Prior Year Adjustment - - - (1,179)
------------ ------------ ------------ ------------
Ending Balance $ (3,356,119) $ (3,015,153) $ (3,356,119) $ (3,015,153)
============ ============ ============ ============
Loss per share - Primary $ (0.0017) $ (0.0053) $ (0.0093) $ (0.0111)
============ ============ ============ ============
Weighted Average Shares
Outstanding 21,513,301 14,472,699 20,269,555 14,726,699
============ ============ ============ ============
</TABLE>
See Accompanying Notes and Accountant's Report
4
<PAGE> 8
QUADRATECH, INC. & SUBSIDIARY
COST OF SALES
(Unaudited)
<TABLE>
<CAPTION>
SCHEDULE A
Three Months ended Six Months ended
June 30, June 30,
COST OF SALES 1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Beginning Inventory $ 3,838 $ 3,838 $ 3,838 $ 3,838
Purchases 2,344 3,405 9,169 9,320
Production Labor 7,245 7,909 17,287 15,522
Warehouse Supplies 582 93 3,939 921
--------- --------- --------- ---------
14,009 15,245 34,233 29,601
Less: Ending Inventory 3,838 3,838 3,838 3,838
--------- --------- --------- ---------
Total Cost of Sales $ 10,171 $ 11,407 $ 30,395 $ 25,763
========= ========= ========= =========
</TABLE>
See Accompanying Notes and Accountant's Report
5
<PAGE> 9
QUADRATECH, INC. & SUBSIDIARY
OPERATING EXPENSES
(Unaudited)
<TABLE>
<CAPTION>
SCHEDULE B
Three Months ended Six Months ended
June 30, June 30,
OPERATING EXPENSES 1999 1998 1999 1998
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Accounting $ 1,050 $ 5,440 $ 10,250 $ 17,440
Advertising 285 - 480 1,600
Bank and Finance Charges 22 452 166 975
Car Allowance and Expenses 2,099 4,230 4,430 6,125
Commissions 1,300 1,520 2,500 2,620
Consulting 15,000 12,000 23,000 22,950
Customers & Public Relations - 11 - 11
Directors' Meetings 55 370 55 560
Dues and Subscriptions 100 245 100 245
Entertainment 840 674 1,447 1,110
Equipment Rental - 40 77 161
Freight & Postage 129 85 431 134
Insurance 5,824 3,666 10,581 9,102
Legal and Professional 1,435 2,369 4,303 4,538
Legal Settlement - - 5,136 -
Licenses & Permits 10 110 95 365
Maintenance 600 515 705 2,366
Office Supplies 687 566 1,437 2,106
Other Expenses 37 (54) 37 486
Outside Service 320 1,600 320 2,510
Parking 94 - 142 -
Payroll Taxes 1,670 2,450 4,857 5,101
Printing and Reproduction - 123 - 123
Rent 728 2,184 2,912 4,984
Research and Development - - - 600
Salaries and Wages 6,240 8,036 14,500 16,792
Selling Expenses - - - 90
Shipping 1,168 351 2,743 2,331
Supplies 89 97 89 97
Taxes - Property - 1,444 1,478 1,444
Telephone 2,499 2,485 5,816 7,984
Trade Shows - 932 57 1,812
Travel 1,077 1,823 4,023 2,305
Utilities 697 774 1,687 2,282
-------- -------- -------- --------
Total Operating Expenses $ 44,055 $ 54,538 $103,854 $121,349
======== ======== ======== ========
</TABLE>
See Accompanying Notes and Accountant's Report
6
<PAGE> 10
QUADRATECH, INC. & SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended June 30, 1999 and 1998
<TABLE>
<CAPTION>
1999 1998
---------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss) $ (187,875) $ (163,352)
Adjustments to reconcile net loss to net
cash provided by operating activities
Depreciation and Amortization 12,571 14,616
Prior Year adjustments - (1,179)
Issuance stocks for backpay salaries 68,440 -
(Increase) Decrease in:
Accounts Receivable 24,740 2,273
Other Receivable - 2,000
Deposits - (1,200)
Increase (Decrease) in:
Accounts Payable (11,934) (32,429)
Accrued Expenses (3,050) (1,231)
---------- ----------
NET CASH (USED) BY OPERATING ACTIVITIES (97,108) (184,502)
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Equipment (2,369) -
Increase in Intangible Assets (470) -
---------- ----------
NET CASH (USED) BY INVESTING ACTIVITIES (2,839) -
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercising stock options 90,000 -
Net Payments to Notes Payable (7,000) -
Net Proceeds from Notes Payable 20,000 143,000
---------- ----------
NET CASH PROVIDED BY FINANCING ACTIVITIES 103,000 143,000
---------- ----------
NET INCREASE (DECREASE) IN CASH 3,053 (41,502)
BEGINNING OF PERIOD 12,261 49,600
---------- ----------
END OF PERIOD $ 15,314 $ 8,098
========== ==========
SUPPLEMENTAL DISCLOSURES:
Cash Paid During the Period for:
Interest $ 2,513 $ 1,829
========== ==========
Income Tax $ 800 $ 0
========== ==========
</TABLE>
See Accompanying Notes and Accountant's Report
7
<PAGE> 11
QUADRATECH, INC. & SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited)
Six months ended June 30, 1999 and 1998
SUPPLEMENTAL DISCLOSURES: (Continued)
Noncash investing and financing activities:
(a.) Convert note payable of $192,000 to 1,200,000 shares of common
stock.
(b.) Grant 100,000 shares of common stock to a new Board of Director
and 500,000 shares to the Company's president.
(c.) Issue common stock to the former president for her backpay
salaries of $68,440.
See Accompanying Notes and Accountant's Report
8
<PAGE> 12
QUADRATECH, INC. & SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Presentation of Interim Information
In the Opinion of the management of Quadratech, Inc. & Subsidiary (the Company),
the accompanying unaudited consolidated financial statements include all normal
adjustments considered necessary to present fairly the financial positions as of
June 30, 1999, and the results of operations for the three months and six months
ended June 30, 1999 and 1998, and cash flows for the six months ended June 30,
1999 and 1998. Interim results are not necessarily indicative of results for a
full year.
The consolidated financial statements and notes are presented as permitted by
Form 10-Q, and do not contain certain information included in the Company's
audited consolidated financial statements and notes for the fiscal year ended
December 31, 1998.
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the
Company and its wholly-owned subsidiary, Oil Scavenger Absorbent, Inc. (a
California corporation), after elimination of all material intercompany accounts
and transactions.
Use of estimates
The preparation of the accompanying consolidated financial statements in
conformity with generally accepted accounting principles requires management to
make certain estimates and assumptions that directly affect the results of
reported assets, liabilities, revenue, and expenses. Actual results may differ
from these estimates.
Cash Equivalents
The Company considers all highly liquid debt instruments with an original
maturity of three months or less to be cash equivalents. As of June 30, 1999,
there were no cash equivalents.
The Company prepares its consolidated statements of cash flows using the
indirect method as defined under Financial Accounting Standards Board Statement
No. 95.
9
<PAGE> 13
QUADRATECH, INC. & SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Accounts Receivable
The Company has not established an allowance for doubtful accounts and does not
use reserve method for recognizing bad debts. Bad debts are treated as direct
write-offs in the period management determines that collection is not probable.
There were no bad debt expense neither for six months ended June 30, 1999 nor
1998.
Inventories
Costs incurred for materials, technology and shipping are capitalized as
inventories and charged to cost of sales when revenue is recognized.
Inventories consist of finished goods and are stated at the lower of cost or
market, using the first-in, first-out method.
Property and Equipment
Property and Equipment are valued at cost. Maintenance and repair costs are
charged to expenses as incurred. Depreciation is computed on the straight-line
and accelerated methods based on the estimated useful lives of the assets.
Depreciation expense was $12,126 and $14,187 for 1999 and 1998, respectively.
Intangible Assets
Patents, marks and copyrights are capitalized and amortized over five years
using the straight-line method.
Research and Development
Research and development costs are expensed as incurred.
Income Taxes
The Company accounts income taxes in accordance with Financial Accounting
standards Board Statement No. 109.
10
<PAGE> 14
QUADRATECH, INC. & SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2 - NOTES PAYABLE
<TABLE>
<CAPTION>
June 30, Dec. 31,
1999 1998
---------- ----------
<S> <C> <C>
a.) Note to Annette Kroes, interest at
10% per annum due monthly; principal
payment of $10,000 commencing
1/15/2000 until paid $ 43,500 $ 50,500
b.) Note to Frances Rigney, due on
demand; will be re-negotiated in
October 1999 144,500 316,500
---------- ----------
Total 188,000 367,000
Less current maturities 144,500 316,500
---------- ----------
Long-term debt, net $ 43,500 $ 50,500
========== ==========
</TABLE>
Maturities on notes payable are as follows:
<TABLE>
<CAPTION>
December 31,
------------
<S> <C>
1999 $ 144,500
2000 43,500
----------
$ 188,000
==========
</TABLE>
NOTE 3 - COMMON STOCK TRANSACTIONS
In March 1999, the Company convert $192,000 note payable into 1,200,000 shares
of common stock.
The Company also grant 100,000 shares of stock to a new board of director and
500,000 shares to the Company's president.
In addition, the Company issued 202,073 shares of stock to the former president
in lieu of salary shortfalls of $26,000 for 1996 and $42,440 for 1997.
NOTE 4 - STOCK OPTIONS
In November 1998, the Company granted 1,600,000 stock options at various
exercise prices and expiration dates. As of June 30, 1999, 900,000 shares of
stock options had been exercised and 300,000 shares were expired. The remaining
balance of 400,000 shares are exercisable as follows:
11
<PAGE> 15
QUADRATECH, INC. & SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - STOCK OPTIONS (Continued)
<TABLE>
<CAPTION>
Expiration
Exercise Date
Price August 31,
-------- ----------
<S> <C>
$.10 1999
$.25 2000
$.50 2001
</TABLE>
NOTE 5 - INCOME TAXES
The Company files consolidated federal and state income tax returns with its
subsidiary.
Provision for income taxes in the consolidated statements of operations for six
months ended June 30, 1999 and 1998 consist of $800 minimum state income taxes
in each year.
As of December 31, 1998, the Company has approximately federal net operating
loss carryforwards of $2,938,581, and California NOL of $3,014,868 to reduce
future taxable income. To the extent not utilized, both carryforwards will begin
to expire beginning 2000 and 1998 respectively.
NOTE 6 - EARNINGS (LOSS) PER SHARE
Earnings per share is based on the weighted average number of shares of common
stock and common stock outstanding during the period. Earnings per share is
computed using the treasury stock method. Had the Stock Options (See Note 4)
been issued as of June 30, 1999, the Company's loss per share would have been
$0.0016 and $.0091 for three and six months ended June 30, 1999, respectively.
NOTE 7 - ACQUISITION OF BUSINESS
The Company is going to acquire 83.33% of the issued and outstanding stock of
Accu Chem Conversions, Inc. (a California corporation) in exchange for
15,000,000 shares of the Company's common stock. This transaction will be
accounted for as a purchase, with the assets and liabilities assumed recorded at
book values.
12
<PAGE> 16
QUADRATECH, INC. & SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 8 - LEASE COMMITMENTS
The Company leases its office facilities for $728 per month on a month-to-month
basis. Rent expense totaled $2,912 and $4,984 for 1999 and 1998, respectively.
In addition, the Company is responsible for its pro rata share of property
taxes.
NOTE 9 - GOING CONCERN
The accompanying consolidated financial statements are presented on the basis
that the Companies are going concerns. Going concern contemplates the
realization of assets and the satisfication of liabilities in the normal course
of business over a reasonable length of time. As shown in the accompanying
consolidated financial statements, the Company incurred net losses of $187,875
for six months ended June 30, 1999, and as of that date, the Company had
accumulated deficit of $3,356,119, a working capital deficiency of $116,391 and
a deficit in net worth of $95,361.
Management is currently involved in active negotiations to obtain additional
financing and actively increasing marketing efforts to increase revenues. The
Company continued existence depends on its ability to meet its financing
requirements and the success of its future operations. The consolidated
financial statements do not include any adjustments that might result from the
outcome of this uncertainty.
13
<PAGE> 17
PART II
OTHER INFORMATION
Item 1 - Legal Proceedings.............................................. None
Item 2 - Changes in the Rights of the Company's Security Holders........ None
Item 3 - Defaults by the Company on its Senior Securities............... None
Item 4 - Results of Votes of Security Holders........................... None
Item 5 - Other Information.............................................. None
Item 6 - Exhibits and Reports on Form 8-K............................... None
SIGNATURE
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.
Dated: October 21, 1999 QUADRATECH, INC.
(Company)
By: /s/ PERRY COPLE
--------------------------
Perry Cople
President
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 13,863
<SECURITIES> 0
<RECEIVABLES> 14,760
<ALLOWANCES> 0
<INVENTORY> 3,838
<CURRENT-ASSETS> 32,461
<PP&E> 158,871
<DEPRECIATION> 97,789
<TOTAL-ASSETS> 111,749
<CURRENT-LIABILITIES> 261,898
<BONDS> 0
0
0
<COMMON> 18,611
<OTHER-SE> 2,884,207
<TOTAL-LIABILITY-AND-EQUITY> 111,749
<SALES> 46,427
<TOTAL-REVENUES> 47,835
<CGS> 38,272
<TOTAL-COSTS> 38,272
<OTHER-EXPENSES> 252,511
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 14,855
<INCOME-PRETAX> (257,803)
<INCOME-TAX> 800
<INCOME-CONTINUING> (258,603)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (258,603)
<EPS-BASIC> (0.016)
<EPS-DILUTED> (0.016)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 13,863
<SECURITIES> 0
<RECEIVABLES> 14,760
<ALLOWANCES> 0
<INVENTORY> 3,838
<CURRENT-ASSETS> 32,461
<PP&E> 158,871
<DEPRECIATION> 97,789
<TOTAL-ASSETS> 111,749
<CURRENT-LIABILITIES> 261,898
<BONDS> 0
0
0
<COMMON> 18,611
<OTHER-SE> 2,884,207
<TOTAL-LIABILITY-AND-EQUITY> 111,749
<SALES> 46,427
<TOTAL-REVENUES> 47,835
<CGS> 38,272
<TOTAL-COSTS> 38,272
<OTHER-EXPENSES> 252,511
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 14,855
<INCOME-PRETAX> (257,803)
<INCOME-TAX> 800
<INCOME-CONTINUING> (258,603)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (258,603)
<EPS-BASIC> (0.016)
<EPS-DILUTED> (0.016)
</TABLE>
