U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED JUNE 30, 1997
Commission File No. 221355
ELECTRONIC TRANSMISSION CORPORATION
(Name of Small Business Issuer as Specified in Its Charter)
Delaware 75-2518619
(State of Incorporation) (I.R.S. Employer Identification No.)
5025 Arapaho Road, Suite 501 75248
Dallas, Texas (Zip Code)
(Address of Principal Executive Offices)
Issuer's Telephone Number, Including Area Code: (972) 980-0900
Check whether the issuer (1) filed all reports required to be filed by
Section 13 of 15(d) of the Exchange Act during the past 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____
As of August 8, 1997, 12,472,479 shares of the issuer's Common Stock
were outstanding.
<PAGE>
ELECTRONIC TRANSMISSION CORPORATION
PART I - FINANCIAL INFORMATION
BALANCE SHEET
(Unaudited)
ASSETS
June 30, 1997
---------------
Current Assets:
Cash $ 182,793
Accounts receivable
Trade 622,572
Employees 8,263
Shareholder 2,529
Current portion, capital lease
receivable 26,377
Prepaid assets 16,446
Total Current Assets 858,980
Property and Equipment, net 483,355
Other Assets:
Capital lease receivable 14,207
Goodwill, net 396,208
Deposits and other 5,450
---------------
Total Other Assets 415,865
Total Assets $ 1,758,200
===============
<PAGE>
BALANCE SHEETS (CONTINUED)
(Unaudited)
LIABILITIES & STOCKHOLDERS' EQUITY
June 30, 1997
--------------
Current Liabilities:
Accounts payable $ 343,291
Accrued expenses 351,011
Accrued payroll and taxes 96,596
Customer deposit payable 75,531
Note payable 163,298
Line of credit 125,000
Current portion, capital lease
obligations 106,270
Total Current Liabilities 1,260,997
Debentures 202,500
Long-term capital lease obligations 73,371
Total Long-term Liabilities 275,871
Stockholders' equity:
Preferred stock, $1 par value,
2,000,000 shares authorized;
no shares issued and outstanding --
Common stock, $.001 par value,
15,000,000 shares authorized;
12,447,479 shares issued and outstanding 12,447
Additional paid-in-capital 5,318,017
Additional paid-in-capital - stock options 1,252,987
Accumulated deficit (6,362,119)
Total Stockholders' Equity 221,332
Total Liabilities & Stockholders' Equity $ 1,758,200
================
<PAGE>
ELECTRONIC TRANSMISSION CORPORATION
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended June 30, Six Months Ended June 30,
<S> <C> <C> <C> <C>
1996 1997 1996 1997
------ ------ ------ ------
Service revenues $ 190,340 $ 1,090,488 $ 214,080 $ 1,403,262
------------------ ------------------ ----------------- --------------
Costs and Expenses:
Direct Costs $ 83,458 $ 464,707 $ 89,731 $ 655,733
Personnel Costs 224,989 438,886 424,092 723,099
Stock Compensation Expense(1) 76,967 764,552 142,009 930,920
Professional Fees 262,192 71,234 367,032 270,287
General and administrative 140,050 203,311 242,356 362,780
------------------ ------------------- -------------------- ------------------
Total Costs and Expenses 787,656 1,942,690 1,265,220 2,942,819
------------------ ------------------- -------------------- ------------------
Loss from operations (597,316) (852,202) (1,051,140) (1,539,557)
Other Income -- 1,525 -- 2,389
Income tax expense -- -- -- --
------------------ ------------------- -------------------- ------------------
Net loss $ (597,316) $ (850,677) $ (1,051,140) $ (1,537,168)
================== =================== ==================== ==================
Loss per common share:
Primary and fully-diluted $ (0.06) $ (0.07) $ (0.10) $ (0.13)
================== =================== ==================== ==================
Weighted average common
shares outstanding:
Primary and fully-diluted 10,944,102 11,550,253 10,944,102 11,550,253
================== =================== ==================== ==================
</TABLE>
(1) In June 1997, a one-time write-off of stock compensation expense of
$600,266 was recognized.
<PAGE>
ELECTRONIC TRANSMISSION CORPORATION
STATEMENT OF STOCKHOLDERS' EQUITY
(Unaudited)
<TABLE>
<CAPTION>
Common Stock
---------------------------
<S> <C> <C> <C> <C> <C>
Add'l.
Paid-In Capital Accumulated
Shares Amount Stock Options Deficit Total
Balance at December 31, 1996 10,949,146 $ 4,180,206 $ 322,067 $ (4,824,951) $ (322,678)
Issuance of shares for cash 28,333 28 -- -- 28
Issuance of shares for compensation 320,000 -- 166,368 -- 166,368
expense
Net loss -- -- -- (686,491) (686,491)
------------- -------------- ------------- -------------- ----------------
Balance at March 31, 1997 11,297,479 $ 4,180,234 $ 488,435 $ (5,511,442)
------------- -------------- ------------- -------------- $ (842,773)
Issuance of shares for cash 230,000 230 -- -- 230
Stock compensation expense -- -- 764,552 -- 764,552
Issuance of shares for debt to equity 520,000 650,000 -- -- 650,000
conversion
Issuance of shares for asset purchase 400,000 500,000 -- -- 500,000
Net loss -- -- -- (850,677) (850,677)
------------- -------------- ------------- -------------- ---------------
Balance at June 30, 1997 12,447,479 $ 5,330,464 $ 1,252,987 $ (6,362,119) $ 221,332
============= ============== ============= ============== ===============
</TABLE>
<PAGE>
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended June 30, Six Months Ended June 30,
------------------------------ ----------------------------
<S> <C> <C> <C> <C>
1996 1997 1996 1997
-------- --------- -------- ---------
Cash Flows from Operations:
Net loss $ (597,316) $ (850,677) $ (1,051,140) $ (1,537,168)
Adjustments to Reconcile Net Loss
to Net Cash Provided (Used)
by Operations:
Non-cash issuance of common
stock for services rendered -- -- -- 100,000
Non-cash compensation from
stock options 76,967 764,552 142,009 830,920
Depreciation and amortization 37,696 62,973 50,321 114,637
Increase in accounts receivable (69,396) (284,616) (87,198) (310,155)
(Increase) decrease in employee
advances (73,356) (2,768) (79,378) 19,939
(Increase) decrease in advances
to stockholders (199,759) (2,729) (227,918) 176,447
(Increase) decrease in prepaid
expenses 5,156 (3,845) (3,191) (1,160)
(Increase) decrease in deposits
and other assets 2,297 -- (13,475) 2,067
Increase (decrease) in
accounts payable (128,054) (47,006) (89,696) 44,015
Increase in accrued expenses 112,343 50,392 106,717 222,763
Increase in client deposit -- 75,531 -- 75,531
Increase (decrease) in accrued
payroll and taxes 12,000 1,616 (1,681) 15,164
--------- ---------- ---------- ---------
Net Cash Used in Operations (821,422) (236,577) (1,254,630) (247,000)
--------- ---------- ---------- ---------
Cash Flows from Investing Activities:
Purchases of furniture and equipment (52,057) (18,926) (117,111) (26,911)
Proceeds on capital lease receivable -- 8,225 -- 12,234
--------- ---------- ---------- ---------
Net Cash Used in Investing Activities (52,057) (10,701) (117,111) (14,677)
--------- ---------- ---------- ---------
<PAGE>
STATEMENTS OF CASH FLOWS (CONTINUED)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- ----------------------------
1996 1997 1996 1997
------- ------ ------ ------
Cash Flows from Financing Activities:
Proceeds from issuance of common 749,502 2,295 1,187,877 2,323
stock
Debenture to equity conversion 552,500 -- 552,500 --
Proceeds from note payable -- 170,000 -- 170,000
Proceeds from line of credit -- 125,000 -- 125,000
Proceeds from issuance of debentures -- 150,000 -- 150,000
Principal payments on note payable -- (6,703) -- (6,703)
Payments on capital leases payable (5,868) (23,498) (7,371) (46,418)
-------- ------- --------- --------
Net Cash Provided by Financing
Activities 1,296,134 417,094 1,733,006 394,202
-------- ------- --------- --------
Net increase in cash 422,655 169,816 361,265 132,525
Cash, beginning of period 53,638 12,977 115,028 50,268
-------- ------- --------- --------
Cash, end of period $ 476,293 $ 182,793 $ 476,293 $ 182,793
======== ======= ========= ========
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - GENERAL
The unaudited financial statements included herein for Electronic Transmission
Corporation (the "Company") have been prepared pursuant to the rules and
regulations of the Securities and Exchange Commission (the "SEC") and include
all adjustments which are, in the opinion of management, necessary for a fair
presentation. Certain information and footnote disclosures required by generally
accepted accounting principles have been condensed or omitted pursuant to such
rules and regulations.
NOTE 2 - OFFICE FURNITURE AND EQUIPMENT
The following is a summary of office furniture and equipment:
June 30, June 30,
1997 1996
Furniture $ 105,343 $ 44,869
Computer & Office Equipment 500,919 254,631
Computer Software 113,642 78,124
Leasehold Improvements 8,816 --
---------------- --------------
728,720 377,624
Less: accumulated depreciation (245,365) (82,494)
---------------- --------------
$ 483,355 $ 295,130
================ ================
NOTE 3 - STOCK OPTIONS
Compensation costs will be recognized as an expense over the periods of
employment attributable to the options at an amount equal to the excess of the
fair market value of the stock at the date of measurement over the amount the
employee must pay. The measurement date is generally the grant date. On June 15,
1997, the Board of Directors unanimously passed a resolution accelerating the
vesting of certain stock options. Therefore, stock compensation costs totalling
$764,552 were recognized as expense during the quarter ended June 30, 1997. Had
compensation cost for the Company's stock-based compensation been determined on
the fair value at the grant dates for awards with the method of FASB Statement
123, the Company's net loss and loss per share would have been unchanged.
NOTE 4 - RELATED PARTY TRANSACTIONS
As of June 30, 1997, the Company had a receivable of $2,529, from Sterling
National Corporation, solely owned and controlled by L. Cade Havard, the
Chairman of the Board, Chief Executive Officer and President of the Company, for
working capital.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE 4-RELATED PARTY TRANSACTIONS (Continued)
In June 1997, L. Cade Havard, Chairman of the Board, Chief Executive Officer and
President, in exchange for $650,000 in loans and accrued payroll the Company
allowed Mr. Havard to exercise options for 520,000 shares of ETC common stock.
NOTE 5-PURCHASE OF ELECTRA-NET
In April 1997, the Company purchased the assets and business of Electra-Net,
L.C. in exchange for 400,000 shares of common stock valued at $500,000. The
purchase method was used to account for the acquisition, and the purchase price
was allocated as follows:
Current assets $ 78,126
Property and equipment 1,846
Software 19,062
Goodwill 400,966
--------
$500,000
========
The Company is presently operating the business as a division under the name
Electra-Net.
The accompanying financial statements include the operations of Electra-Net for
the period from April 1, 1997 through June 30, 1997.
NOTE 6-FINANCING ACTIVITIES
The Company obtained a $125,000 line of credit in April 1997 of which principal
and interest are due July 17, 1997. Accrued interest is payable on a monthly
basis, beginning May 17, 1997, at a variable interest rate not to exceed 18% per
annum. Interest will be calculated from the date of each advance until repayment
of each advance or maturity, whichever occurs first.
In May 1997, the Company authorized an aggregate offering of $1,000,000 of its
one-year 12% Convertible Subordinated Debentures to fund new acquisitions,
pay-off existing debts and supply future working capital. The Debentures are due
in May 1998 with interest payable semi-annually. The holder or holders of this
Debenture may, at any time prior to maturity, convert the principal amount and
the accrued interest on this Debenture into Common Stock of the Company at
varying conversion rates of Debenture principal and/or accrued interest for one
share of Common Stock. The offering terminated on June 1, 1997 raising $202,500.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE 6-FINANCING ACTIVITIES (Continued)
Also in May 1997, the Company obtained a short-term working capital loan of
$170,000. Eighty-five thousand dollars of the principal amount plus interest
will be repaid in twelve monthly payments. Interest only will be due monthly on
the remaining eighty-five thousand dollars of the principal amount, which will
be due on May 19, 1998. The loan will incur an interest rate of twelve percent
per annum from date of funding. The lender has the option to purchase up to
113,333 shares of common stock in the Company at a price of $1.50 per share on
or before May 19, 1998.
NOTE 7-BOARD OF DIRECTORS
Effective June 1, 1997, Rick Snyder, Director of the Company, resigned to pursue
other business interests. The resignation was not a result of any dispute or
disagreement between Mr. Snyder and the Company. Mr. Dennis Barnes was elected
Director until the next annual stockholder's meeting.
NOTE 8-SUBSEQUENT EVENTS
On July 17, 1997, the $125,000 line of credit was renewed and increased to
$200,000. The principal and any unpaid interest is due on November 17, 1997 and
bears interest at eleven percent per annum.
In July 1997, the Company entered into a contract to purchase hardware and
license software in order to begin a new division for third party administration
("TPA"). The term of the License and Maintenance Agreement is for five years.
The total cost of the system is $441,838 and is payable in four installments
beginning with $87,500 due upon execution, followed by $150,000 upon
installation of computer system, $116,838 upon the earlier of set-up of system
or October 31, 1997 and $87,500 due on January 1, 1998. Operations are expected
to begin in September 1997.
<PAGE>
ITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Electronic Transmission Corporation (the "Company"), a Delaware Corporation, is
the survivor of a merger (the "Merger") of Electronic Transmission Corporation,
a Texas corporation, into ETC Transaction Corporation, a Delaware corporation
(originally incorporated in the Province of Alberta, Canada). As ETC Transaction
Corporation, the Company's predecessor, was a dormant entity prior to the
effectiveness of the Merger, the following comparative and analysis assumes that
the Merger was effective as of January 1, 1997 for the purpose of comparing the
financial condition and results of operations of ETC Transaction Corporation and
the Company for the noted periods.
Effective April 1, 1997, the Company acquired the assets and business of
Electra-Net, L.C. in exchange for 400,000 shares of common stock valued at
$500,000. Electra-Net, L.C. is a company wholly-owned and operated by L. Cade
Havard the Chairman of the Board, Chief Executive Officer and President of the
Company. Electra-Net is in the business of obtaining discounts and repricing
medical claims. The revenues from Electra-Net increased revenues by 349% over
the first quarter 1997 revenues while only increasing costs by 34%. The Company
has not only offered this service to existing clients, but has added six
additional clients using just the discount and repricing services.
Results of Operations of The Company
For the Six Months Ended June 30, 1996. For the six months ended June 30, 1996,
the results of operations were significant in that the Company determined the
types of clients to pursue and the nature of processing services to be provided.
Management secured its first substantial clients and began the process of
implementing its system for commercial use. Although no significant revenues
were generated from the electronic transmission of data, the process of handling
claims information was established.
Direct expenses incurred for services provided during the development stage in
the second quarter of fiscal 1996 were $83,458 or 44% of total revenues for the
period. In addition to minimal revenues, the Company's lack of operating history
resulted in a reluctance by vendors to extend any credit to the Company and any
credit that was offered was on unfavorable terms. With the lack of adequate
trade credit to build its business, the Company relied on its ability to
generate additional capital through the issuance of debt and/or equity
securities to fund the operating expenses of the business.
For the Quarter Ended June 30, 1997 Compared to the Quarter Ended June 30, 1996
For the quarter ended June 30, 1996, the Company was still a development stage
enterprise. Revenues were $190,340 and net loss was $597,316. As the Company had
not begun its ongoing operations, a detailed discussion of comparative results
of operations is not meaningful.
<PAGE>
Revenues for the quarter ended June 30, 1997 were $1,090,488 and net loss was
$850,677. Principal expenses were personnel costs of approximately $438,886,
stock compensation costs of $764,552 and legal and professional expenses of
approximately $71,234. Stock compensation expense increased due to an election
by the Board of Directors to accelerate the vesting of certain stock options.
This will be a one-time expense. Legal and professional expenses are primarily
related to expenses incurred for general corporate matters and the preparation
of various SEC filings.
Operating Expenses
Direct costs for the quarter ended June 30, 1996 consisted primarily of $17,349
in optical character recognition ("OCR") costs, $50,014 in data entry personnel
costs and $13,321 in electronic data line costs.
Management believes that it has been able to manage the relationship between
cost and revenues up to the present with income increasing at a much faster rate
than expenses given the implementation of claims processing services and the
acquisition of Electra-Net. Direct costs for the quarter ended June 30, 1997
consisted primarily of $128,803 in data entry personnel costs, $68,345 in OCR
costs, $9,017 in electronic data line costs and $207,434 in network fees.
Net Loss
The Company incurred a net loss of $597,316 and $850,677 for the quarters ended
June 30, 1996 and 1997, respectively. The Company expects to incur losses in
future periods until it generates sufficient revenues from an expanded client
base to offset ongoing operating costs and expansion expenses.
Liquidity and Capital Resources
At June 30, 1997, the Company had cash and cash equivalents of approximately
$182,793, and a working capital deficit of approximately $402,017. In April
1997, the Company obtained a $125,000 line of credit. Advances of $125,000 were
made and principal plus any unpaid interest will be due July 17, 1997.
Subsequent to the quarter ended June 30, 1997, the Company renewed and increased
its line of credit. The line of credit was increased to $200,000. The principal
plus any unpaid interest will be due November 17, 1997 and bears an interest
rate of elevent percent per annum. The Company authorized the issuance of an
aggregate offering of $1,000,000 of its one-year 12% Convertible Subordinated
Debentures in order to fund new acquisitions, pay-off existing debts and for
working capital. The offering terminated on June 1, 1997 raising $202,500 in
debentures. In May 1997, the Company obtained a short-term loan for $170,000 to
fund working capital. Eighty-five thousand dollars of the principal amount plus
interest will be repaid in twelve monthly payments. Interest only wil be due
monthly on the remaining eighty-five thousand dollars of the principal amount,
which will be payable on May 19, 1998. The loan will incur an interest rate of
twelve percent per annum from date of funding. The lender has the option to
purchase up to 113,333 shares of common stock in the Company at a price of $1.50
per share on or before May 19, 1998.
The Company believes that the Merger has had and will continue to have a
positive effect on its liquidity and capital resources. The Merger provides the
Company with greater capital resources and liquidity through the availability of
public markets and financing opportunities; however, its results of operations
will be only marginally improved as ETC Transaction Corporation had no
significant operations.
The Company has continued to expand its client base by adding new claims
automation and repricing clients.
Research and development to be performed over the next twelve months will be to
enhance the current software programs used in automating clients by increasing
the speed of processing and developing value added services for clients. It is
not expected that costs associated with projected research and development
efforts will materially effect the financial condition and results of operations
of the Company for fiscal 1997.
With the acquisition of Electra-Net, the revenues have increased over the first
quarter of 1997 by 349%. The Company has not only offered this service to
existing clients, but has added six additional clients using just the discount
and repricing services. Electra-Net is anticipated to maintain these revenues
throughout 1997. Due in large part to the acquisition of Electra-Net, Management
believes that there will be enough working capital for the next twelve months.
The Company is in the start-up phase of a new division as a third party
administrator ("TPA"). A License and Maintenance Agreement was entered into to
purchase hardware and license software in order to run the TPA. The TPA will
process medical claims on behalf of self-insured corporations. It is estimated
that the TPA will add $100,000 in revenues during 1997 and $750,000 in revenues
during 1998. Operations are anticipated to begin in September 1997.
As the Company grows in the number of claims it processes, the number of
employees will also increase but not significantly. Personnel that is added to
handle the increase in volume will typically be added in the data perfection and
quality assurance departments. These are hourly employees and are readily
available in the marketplace.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Not applicable.
ITEM 2. CHANGES IN SECURITIES
Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 5. OTHER INFORMATION
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Financial Statements and Exhibits Page
Financial Statements. The following financial statements are submitted as a part
of this report:
Balance Sheet - June 30, 1997................................................ 1
Statements of Operations - Three Months Ended
June 30, 1997 and 1996 and Six Months Ended June 30, 1997 and 1996........... 3
Statement of Stockholders' Equity - Quarter Ended June 30, 1997.............. 4
Statements of Cash Flows - Three Months Ended June 30, 1997 and 1996
and Six Months Ended June 30, 1997 and 1996.................................. 5
Notes to Financial Statements................................................ 7
2. Exhibits
Exhibit number 10.15 - Contract for Electra-Net Purchase.
(b) Reports on Form 8-K.
There were no reports filed on Form 8-K for the quarter ended June 30,
1997.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
ELECTRONIC TRANSMISSION CORPORATION
Signature Title Date
/s/ L. CADE HAVARD Chairman, Chief Executive August 15, 1997
- ------------------------ Officer, President and
Cade Havard Director (Principal
Executive Officer)
/s/ LOUANN C. SMITH Controller (Principal August 15, 1997
- ----------------------- Accounting Officer)
Louann C. Smith
Exhibit 10.15
CONTRACT OF SALE
Electra-Net, L.C. ("Electra-Net") agrees to transfer all of its assets to
Electronic Transmission Corporation ("ETC") under the following terms and
conditions.
Electra-Net hereby sells, transfers and conveys all of its right, title and
interest in its business activities (hereinafter the Electra-Net Business) as
well as all of its assets, including but not limited to contracts, agreements,
accounts receivable and goodwill to Electronic Transmission Corporation.
Electra-Net additionally grants a twenty-nine year license to use the name
"Electra-Net" to ETC.
ETC will pay Electra-Net the equivalent of five hundred thousand dollars
($500,000) in ETC common stock, which is herein deemed to be 400,000 shares.
ETC agrees that it will maintain separate accounting records for Electra-Net
Business and that this agreement will apply to any transfer of ownership
interests in such business activities to third parties. ETC further agrees not
to assign, sell or otherwise transfer this Contract of Sale, or any interest
herein without the prior written consent of Havard, such consent not being
unreasonably withheld.
This agreement and all exhibits attached hereto and expressly made a part hereof
shall constitute the entire agreement relating to the subject matter hereof
between the parties hereto. Each party acknowledges that no representation,
inducement, promise or agreement has been made orally or otherwise, by the other
party, or anyone acting on behalf of the other party, unless such
representation, inducement, promise or agreement is embodied in this agreement,
expressly or by incorporation. No amendment to this agreement shall be valid
unless it is in writing and signed by the parties.
This agreement shall be governed by and construed in accordance with the laws of
the State of Texas and if any provision hereof is held to be invalid or
unenforceable, the remaining provisions shall be deemed valid unless the
provision held invalid or unenforceable shall substantially impair the benefits
of the remaining portions of this agreement. The waiver by either party of any
breach by the other party of any of the provisions of this agreement shall not
constitute a continuing waiver or a waiver of any subsequent breach of the same
or of a different provision of this agreement.
Any notice or other communication made or contemplated by this agreement to be
in writing shall be deemed to have been received by the party to whom it is
addressed five (5) days after it is deposited in the United States mail, postage
prepaid, return receipt requested, and addressed ad follows:
If to ETC: Electronic Transmission Corporation
5025 Arapaho Rd., Suite 501
Dallas, Texas 75248
If to Havard: Mr. L. Cade Havard
6215 Glendora
Dallas, Texas 75230
This Contract of Sale is effective April 1, 1997.
Electra-Net, L.C.
\s\ L. Cade Havard
L. Cade Havard, Principle
Electronic Transmission Corporation
\s\ L. Cade Havard
L. Cade Havard
Chairman, CEO
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001017586
<NAME> Electronic Transmission Corporation
<MULTIPLIER> 1
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<EXCHANGE-RATE> 1
<CASH> 182793
<SECURITIES> 0
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<CURRENT-ASSETS> 858980
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0
0
<COMMON> 5330464
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<TOTAL-LIABILITY-AND-EQUITY> 1758200
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