<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark one)
X Quarterly report under section 13 or 15(d) of the Securities
- ----- Exchange Act of 1934 for the quarterly period ended September 30,
1997.
Transition report under section 13 or 15(d) of the Securities Exchange
- ----- Act of 1934 [no fee required] for the transition period from _______
to _______.
Commission File No: 0-21941
MULTIPLE DIMENSIONAL LASER TECHNOLOGIES, INC.
----------------------------------------------------
(name of small business as specified in its charter)
Colorado 84-11356381
----------------------- --------------------
(State of Incorporation) (IRS Employer ID No.)
105 Hunter Street, Sulphur Springs, Texas 75482
-------------------------------------------------
(Address of principal office)
903/439-2064
---------------------------------------------------
(Registrant's telephone number, including area code)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities 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
----- -----
Applicable only to issuers involved in bankruptcy proceedings during the past
five years:
Check whether the issuer has filed all documents and reports required to be
filed by Section 12, 13, or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court: Yes No
----- -----
<PAGE> 2
Applicable only to corporate issuers:
State the number of shares outstanding of each of the issuers classes of common
equity, as of the latest practicable date:
4,840,364 as of September 30, 1997.
Transitional Small Business Disclosure Format (check one):
Yes No X .
----- -----
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial statements as and for the quarter ending September 30, 1997.
See following pages.
<PAGE> 3
MULTIPLE DIMENSIONAL LASER TECHNOLOGIES, INC.
INDEX TO UNAUDITED FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
Page
<S> <C>
Balance Sheet at September 30, 1997...............................................................1
Statement of Operations For the Quarter and Nine Months Ended September 30, 1997.................2
Statement of Changes in Stockholders' Equity
For the Period from September 28, 1993
(Date of Inception) to September 30, 1997..............................................3-4
Statement of Cash Flows For the Quarter and Nine Months Ended September 30, 1997..................5
Notes to Financial Statements..................................................................6-10
</TABLE>
<PAGE> 4
MULTIPLE DIMENSIONAL LASER TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
SEPTEMBER 30, 1997
(UNAUDITED)
ASSETS
<TABLE>
<CAPTION>
September 30, 1997
----------------------
<S> <C>
Current assets:
Cash $ (2,057)
Receivable, shareholder 26,827
Prepaid expenses 1,166
Inventories (Note 3) 490,935
Receivable-Other (Note 4) 50,000
---------------------
Total current assets 566,871
---------------------
Property and equipment:
Furniture, equipment and autos 324,750
Less accumulated depreciation (228,334)
---------------------
Total property and equipment 96,416
---------------------
Other assets:
Organization costs, net of accumulated amortization 155
Patents, net of accumulated amortization 9,143
Software, net of accumulated amortization 4,667
---------------------
Total other assets 13,965
---------------------
Total Assets $ 677,252
=====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 60,354
Loan from shareholders (Note 5) 165,000
---------------------
Total current liabilities 225,354
---------------------
Commitments and contingencies (Note 8) -
Stockholders' equity:
Common stock, no par value, 50,000,000 shares
authorized; 5,000,199 shares issued and outstanding 1,897,460
Accumulated deficit (1,445,562)
---------------------
Total stockholders' equity 451,898
---------------------
Total Liabilities and Stockholders' Equity $ 677,252
=====================
</TABLE>
See accompanying notes to financial statements.
1
<PAGE> 5
MULTIPLE DIMENSIONAL LASER TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
FOR THE QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
Period from inception
Quarter ended Nine months ended (September 28, 1993
September 30, 1997 September 30, 1997 to September 30, 1997
------------------ ------------------ ---------------------
<S> <C> <C> <C>
Operating Income:
Sales $ -- $ 85,000 $ 85,000
---------------- ---------------- ----------------
Total income $ -- $ 85,000 $ 85,000
Cost of Goods Sold $ -- $ 46,157 $ 46,157
---------------- ---------------- ----------------
Total Cost of Goods Sold $ -- $ 46,157 $ 46,157
Gross Profit $ -- $ 38,843 $ 38,843
Operating expenses:
Other general and administrative $ 185,082 $ 416,317 $ 1,431,540
---------------- ---------------- ----------------
Loss from operations (185,082) (377,474) (1,392,697)
Other income (expense):
Interest, net 1,129 3,969 (8,587)
Other -- -- 3,903
---------------- ---------------- ----------------
Total other income (expense) 1,129 3,969 (4,684)
---------------- ---------------- ----------------
Net loss $ (183,953) $ (373,505) $ (1,397,381)
================ ================ ================
Net loss per common share $ (0.04) $ (0.07)
================ ================
Weighted average common shares 5,000,199 5,000,199
================ ================
</TABLE>
See accompanying notes to financial statements.
2
<PAGE> 6
MULTIPLE DIMENSIONAL LASER TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
PERIOD FROM INCEPTION (SEPTEMBER 28, 1993) TO SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
Stock to be Issued Common Stock Additional
------------------------ --------------------------- Paid-in Accumulated
Shares Amount Shares Amount Capital Deficit
------------ ----------- ------------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Issuance of common stock for assets - $ - 31,200,000 $ 312,000 $ 5,000 $ -
Issuance of common stock for services - - 5,500,000 55,000 - -
Net loss, period from inception
(September 28, 1993) to
December 31, 1993 (unaudited) - - - - - (79,652)
----------- ---------- ------------ ------------ ----------- ------------
Balance, December 31, 1993 - - 36,700,000 367,000 5,000 (79,652)
Issuance of common stock - - 3,425,000 34,250 43,250 -
Issuance of common stock for services - - 1,200,000 12,000 - -
Net loss - - - - - (178,236)
----------- ---------- ------------ ------------ ----------- ------------
Balance, December 31, 1994 - - 41,325,000 413,250 48,250 (257,888)
Issuance of common stock 1,850,000 186,250 2,275,000 22,750 92,000 -
Common stock issued for services - - 3,125,000 31,250 171,000 -
Net loss - - - - - (468,469)
----------- ---------- ------------ ------------ ----------- ------------
Balance, December 31, 1995 1,850,000 186,250 46,725,000 467,250 311,250 (726,357)
Issuance of common stock (1,700,000) (171,250) 2,510,000 25,100 750,650 -
Cash returned to investors (150,000) (15,000) - - - -
Purchase of treasury stock - - - - - -
Net loss - - - - - (297,519)
----------- ---------- ------------ ------------ ----------- ------------
Balance, December 31, 1996 - $ - 49,235,000 $ 492,350 $ 1,061,900 $ (1,023,876)
=========== ========== ============ ============ =========== ============
Issuance of common stock 260,000 285,000
Net loss (January 1-May 31) (142,628)
----------- ---------- ------------ ------------ ----------- ------------
Balance, May 31, 1997 - $ - 49,495,000 $ 777,350 $ 1,061,900 $ (1,166,504)
=========== ========== ============ ============ =========== ============
Refund of Issuance of common stock (35,000)
Net loss (June 1-June 30) (46,924)
Share exchange with Buffalo Capital I, Ltd. (49,495,000) 1,058,386 (1,061,900) (48,181)
4,800,000
----------- ---------- ------------ ------------ ----------- ------------
Balance, June 30, 1997 - $ - 4,800,000 $ 1,800,736 $ - $ (1,261,608)
=========== ========== ============ ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
Treasury
Stock Total
----------- -----------
<S> <C> <C>
Issuance of common stock for assets $ - $ 317,000
Issuance of common stock for services - 55,000
Net loss, period from inception
(September 28, 1993) to
December 31, 1993 (unaudited) - (79,652)
----------- -----------
Balance, December 31, 1993 - 292,348
Issuance of common stock - 77,500
Issuance of common stock for services - 12,000
Net loss - (178,236)
----------- -----------
Balance, December 31, 1994 - 203,612
Issuance of common stock - 301,000
Common stock issued for services - 202,250
Net loss - (468,469)
----------- -----------
Balance, December 31, 1995 - 238,393
Issuance of common stock - 604,500
Cash returned to investors - (15,000)
Purchase of treasury stock (51,695) (51,695)
Net loss - (297,519)
----------- -----------
Balance, December 31, 1996 $ (51,695) $ 478,679
=========== ===========
Issuance of common stock 285,000
Net loss (January 1-May 31) (142,628)
----------- -----------
Balance, May 31, 1997 $ (51,695) $ 621,051
=========== ===========
Refund of Issuance of common stock (35,000)
Net loss (June 1-June 30) (46,924)
Share exchange with Buffalo Capital I, Ltd. 51,695 0
----------- -----------
Balance, June 30, 1997 $ - $ 539,128
=========== ===========
</TABLE>
3
<PAGE> 7
\ MULTIPLE DIMENSIONAL LASER TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
PERIOD FROM INCEPTION (SEPTEMBER 28, 1993) TO SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
Stock to be Issued Common Stock Additional
------------------------ --------------------------- Paid-in Accumulated
Shares Amount Shares Amount Capital Deficit
----------- ---------- ------------- ------------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Issuance of common stock 40,364 96,724
Net loss (July 1-September 30) (183,953)
----------- ---------- ------------- ------------- ----------- -------------
Balance, September 30, 1997 - $ - 4,840,364 $ 1,897,460 $ - $ (1,445,562)
=========== ========== ============= ============= =========== =============
</TABLE>
<TABLE>
<CAPTION>
Treasury
Stock Total
---------- ----------
<S> <C> <C>
Issuance of common stock 96,724
Net loss (July 1-September 30) (183,953)
---------- ----------
Balance, September 30, 1997 $ - $ 451,898
========== ==========
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 8
MULTIPLE DIMENSIONAL LASER TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
FOR THE QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
Period from inception
Quarter ended Nine months ended (September 28, 1993)
September 30, 1997 September 30, 1997 to September 30, 1997
------------------ ------------------ ---------------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $ (183,953) $ (373,505) $(1,397,381)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 17,028 50,253 244,592
Issuance of common stock for services -- -- 269,250
Changes in operating assets and liabilities:
Prepaid expenses (938) 4,155 (1,166)
Inventory (28,129) (237,214) (490,935)
Other assets (657) (1,924) (7,198)
Receivables-Other -- (50,000) (50,000)
Accounts payable and accrued liabilities 10,373 5,568 25,354
----------- ----------- -----------
Net cash used in operating activities (186,276) (602,667) (1,407,484)
----------- ----------- -----------
Cash flows from investing activities:
Capital expenditures for property and equipment (14,714) (14,714) (27,750)
Capital expenditures for patents (4,304) (4,949) (4,949)
----------- ----------- -----------
Net cash used in investing activities (19,018) (19,663) (32,699)
Cash flows from financing activities:
Issuance of common stock 96,724 346,724 1,329,724
Cash returned to investors -- -- (15,000)
Cash returned to related parties (150,000) (150,000) (150,000)
Purchase of treasury stock -- -- (51,695)
Net borrowings/loans from third parties 35,000 35,000 35,000
Net borrowings/loans from related parties -- 315,000 290,097
----------- ----------- -----------
Net cash provided by financing activities (18,276) 546,724 1,438,126
----------- ----------- -----------
Net increase (decrease) in cash and cash equivalents (223,570) (75,606) (2,057)
Cash at beginning of period 221,513 73,549 --
----------- ----------- -----------
Cash at end of period $ (2,057) $ (2,057) $ (2,057)
=========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 9
MULTIPLE DIMENSIONAL LASER TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
1. DESCRIPTION OF BUSINESS
Multiple Dimensional Laser Technologies, Inc.(the Company) was originally
incorporated under the laws of the State of Colorado under the name of Buffalo
Capital I, Ltd.("Buffalo") on August 28, 1996. The Company is primarily engaged
in the development, manufacture, sale and distribution of medical laser
equipment. On June 25, 1997 Buffalo entered into a plan of stock transfer and
exchange among Multiple Dimensional Laser Technology, Inc.(MDLT), its
stockholders, and William Swor. MDLT was incorporated in Nevada on September 28,
1993. The agreement provided that Buffalo would acquire all of the outstanding
shares of MDLT in exchange for 4,8000,000 shares of Buffalo's stock. The
agreement also provided that Buffalo would, upon ratification of the exchange
agreement, amend their articles of incorporation to change the corporate name to
Multiple Dimensional Laser Technologies, Inc.., and cancel all previously
outstanding Class A and Class B warrants. Buffalo agreed to issue certain shares
and options to consultants, and also agreed to enter into a research and
development agreement with William Swor. The transaction was consummated on June
25, 1997, as a result of which MDLT became the wholly owned subsidiary of
Buffalo, and the officers and directors of Buffalo resigned in favor of William
Swor and Dan Parker. As of September 30, 1997, the Company, and its subsidiary
MDLT, was in the development stage, in that principal operations had not
commenced.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates and Assumptions
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents
The Company considers all liquid investments, with original maturities of
three months or less when purchased, to be cash equivalents.
Inventories
Inventories are stated at the lower of cost (first-in, first-out method)
or market.
Furniture, Equipment and Autos
Equipment is recorded at cost and depreciated by the straight-line method
over the five-year expected useful lives of the assets. Expenditures for
normal maintenance and repairs are charged to income, and significant
improvements are capitalized. Depreciation expense for the nine months
ended September 1997 amounted to $46,890.
6
<PAGE> 10
MULTIPLE DIMENSIONAL LASER TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
Organization Costs
Costs incident to the creation of the Company, including various legal
fees, have been capitalized and are being amortized over a five- year
period. Amortization expense for the nine months ended September 1997
amounted to $55.
Patents
Costs incurred for application and filing of the patent, including legal
fees, have been capitalized and are being amortized over fifteen years
which is the remaining life of the patent. Amortization expense for the
nine months ended September 1997 amounted to $308.
Software
The software costs have been capitalized and are being amortized over a
five-year period. Amortization expense for the nine months ended
September 1997 amounted to $3,000.
Net Loss Per Common Share
Per share amounts have been computed using the weighted average number of
shares of common stock and stock to be issued outstanding for each
period.
Income Taxes
The Company accounts for income taxes in accordance with Statement of
Financial Accounting Standards No. 109, "Accounting for Income Taxes"
("SFAS 109"). SFAS 109 utilizes the asset and liability method of
computing deferred income taxes. The objective of the asset and liability
method is to establish deferred tax assets and liabilities for the
temporary differences between the financial reporting basis and the tax
basis of the Company's assets and liabilities at enacted tax rates
expected to be in effect when such amounts are realized or settled. Under
SFAS 109, the effect on deferred tax assets and liabilities of a change
in tax rates is recognized in income in the period that includes the
enactment date.
7
<PAGE> 11
MULTIPLE DIMENSIONAL LASER TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
3. INVENTORIES
The major components of inventories at September 30, 1997 are as follows:
<TABLE>
<S> <C>
Work-in-process $ 50,935
Finished goods 440,000
--------
$490,935
========
</TABLE>
4. RECEIVABLE-OTHER
Receivable-Other at September 30, 1997 consisted of
Receivable from W T Technologies, Inc. for development
of new technology and research on the TMR project $50,000
=======
5. NOTES PAYABLE
Notes payable at September 30, 1997 consisted of:
Unsecured non-interest bearing convertible
notes payable to investors.(For cash received
in anticipation of the issuance of stock certificates) $315,000
Less: Money delivered to Wilmington Capital
on July 21, 1997 150,000
-------
Total Notes Payable-September 30, 1997 $165,000
========
See Note 8 concerning the litigation with Wilmington Capital.
6. RELATED PARTY TRANSACTIONS
The Company borrowed/loaned funds from/to a major shareholder in 1994 at
an interest rate of 10%. The Company has a receivable of $26,827 at
September 1997. The receivable will be paid in 1997 through payroll
deductions.
7. INCOME TAXES
The Company has recorded no income tax benefit due to the existence of a
net operating loss. Net operating loss carryforwards for tax purposes,
which will expire, if not utilized, beginning in 2008, amounted to
approximately $1,000,000 at December 31, 1996. The Company has recorded a
valuation allowance equal to the deferred tax asset related to the net
operating loss carryforwards each year.
8
<PAGE> 12
MULTIPLE DIMENSIONAL LASER TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
7. INCOME TAXES (CONTINUED)
The components of the Company's deferred taxes were as follows at
December 31, 1996 and 1995:
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
Net operating loss carryforward $340,000 $245,000
Deferred tax asset valuation allowance (340,000) (245,000)
-------- --------
$ - $ -
======== ========
</TABLE>
8. COMMITMENTS AND CONTINGENCIES
Concentration of Credit Risk
The Company invests its cash and certificates of deposit primarily in
deposits with major banks. Certain deposits, at times, are in excess of
federally insured limits. The Company has not incurred losses related to
its cash.
Lease
The Company leases its office space under a month-to-month lease. Rent
expense amounted to $1,800 for the nine months ended September 1997.
Fair Value of Financial Instruments
The following disclosure of the estimated fair value of financial
instruments is made in accordance with the requirements of SFAS No. 107,
Disclosures about Fair Value of Financial Instruments. The estimated fair
value amounts have been determined by the Company, using available market
information and appropriate valuation methodologies.
The fair value of financial instruments classified as current assets or
liabilities including cash and cash equivalents, receivables and accounts
payable approximate carrying value due to the short-term maturity of the
instruments.
9
<PAGE> 13
MULTIPLE DIMENSIONAL LASER TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
8. COMMITMENTS AND CONTINGENCIES (CONTINUED)
Litigation
On August 27, 1997, the company filed suit against Wilmington Capital,
L.L.C., Transcontinental Trust and Insurance Corporation, and Garret
Krause, in U.S. District Court, Northern District of Texas, Dallas,
Texas. The Company had previously relied on these parties for certain
financial advisory services but the relationship was terminated prior to
the suit. In its complaint, the company alleges that the defendants
committed breach of contract, fraud, negligent misrepresentation, and
violation of certain Federal securities statutes. This suit specifically
includes a dispute over certain funds referred to in Footnote 5 of the
preceding unaudited financial statements and an additional $200,000
collected by the defendant on behalf of the Company for a total amount of
approximately $515,000. At present, the defendants have been served with
process but have not yet answered. Also as a result of this dispute, the
Company has not issued certain shares to Wilmington Capital contemplated
as compensation under its prior agreement.
The Company has also terminated its relationship with Kigre, Inc., which
had assembled the Company's laser devices on a contract basis. At present
the Company is in the process of initiating its own assembly operations
near its existing corporate office and is evaluating its courses of
action vis-a-vis certain claims against Kigre.
10
<PAGE> 14
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
LIQUIDITY AND CAPITAL RESOURCES: The Company remains in the development stage;
since the inception of its predecessor Nevada corporation, its stockholder's
equity has increased from $-0- to $451,898. Its balance sheet for the period
ending September 30, 1997, reflects a current asset value of $568,928 and a
total asset value of $677,252.
RESULTS OF OPERATIONS: From its inception through September 30, 1997, the
Company has not become fully operational but has engaged in exploratory
marketing of its medical laser products. Revenues received during the quarter
ended September 30, 1997, equal $-0-. The company has experienced a loss of
($1,445,562) since inception, primarily the result of product development and
early stage marketing costs, as well as consulting and legal costs connected
with developmental activities.
For the current fiscal year, ending December 31, 1997, the Company anticipates
an increased net loss owing to product development activities. The Company
anticipates that it will not generate significant revenues until its
manufacturing and product assembly facilities are fully operational. Management
anticipates this will occur in early 1998. The Company may continue to operate
at a loss after such time, depending on the performance of its product lines.
NEED FOR ADDITIONAL FINANCING: Management believes the Company presently
requires an additional $3 million in equity funding to successfully complete its
early stage business plan, to include payment of operating expenses. As of the
date of this report, the Company has no known commitments to provide these
funds.
SUBSEQUENT EVENTS: During the quarter ended September 30, 1997, the Company
terminated its relationship with Wilmington Capital, L.L.C., which had been
providing it investment banking advice. Resulting litigation against Wilmington
Capital and others is described under Note 8 to the attached financial reports.
The Company also terminated its relationship with Kigre, Inc., which had
previously acted on a contract basis to assemble the Company's medical laser
products. The Company is now initiating the process of assembling these products
at its own facility, to be located near its present corporate offices.
PART II
PART 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Form 8-K accepted by Commission on July 10, 1997, with current amendment.
File # 0-21941. (incorporated by reference)
(b) Amendment to Form 8-K filed November 6, 1997. File # 0-21941 (incorporated
by reference)
27 Financial Data Schedule
<PAGE> 15
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.
MULTIPLE DIMENSIONAL LASER TECHNOLOGIES, INC.
(Registrant)
/s/ William T. Swor
- -----------------------------
William T. Swor, President
Date: November 5, 1997
-------------------
<PAGE> 16
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------- -------------------------------------------------------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> (2,057)
<SECURITIES> 0
<RECEIVABLES> 76,827
<ALLOWANCES> 0
<INVENTORY> 490,935
<CURRENT-ASSETS> 566,871
<PP&E> 324,750
<DEPRECIATION> 228,334
<TOTAL-ASSETS> 677,252
<CURRENT-LIABILITIES> 225,354
<BONDS> 0
0
0
<COMMON> 1,897,460
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 677,252
<SALES> 85,000
<TOTAL-REVENUES> 85,000
<CGS> 46,157
<TOTAL-COSTS> 46,157
<OTHER-EXPENSES> 416,317
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (3,969)
<INCOME-PRETAX> (373,505)
<INCOME-TAX> 0
<INCOME-CONTINUING> (373,505)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (373,505)
<EPS-PRIMARY> .07
<EPS-DILUTED> .07
</TABLE>
