UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OF 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended: June 30, 1999 Commission file number: 33-23617
MATERIAL TECHNOLOGIES, INC.
----------------------------
(Exact name of registrant as specified in its charter)
Delaware 95-4622822
------------------------------ ---------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) identification No.)
11661 San Vicente Boulevard
Suite 707
Los Angeles, California 90049
----------------------------------
(address of principal executive offices)
(Zip Code)
(310) 208-5589
--------------
(Registrant's telephone number including area code)
Securities Registered pursuant to Section 12(g) of the Act:
Common
------
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 X No
-
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 or Regulation S-K is not contained herein, and will not be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment of this form 10-K. [ ]
The aggregate market value of the voting stock held by Non-affiliates of
the registrant at August 10, 1999 was $2,057,874.
Documents incorporated by reference-None.
1
<PAGE>
INDEX
PAGE
------
Part 1. Financial Statements
Balance Sheets 3 - 4
Statements of Operations -
Second Quarter Ended June 30, 1998 and 1999 and from
the Company's inception (October 21, 1983) through
June 30, 1999 5
Statements of Cash Flows
Second Quarter Ended June 30, 1998 and 1999 and from
the Company's inception (October 21, 1983) through
June 30, 1999 6 - 7
Statements of Comprehensive Income
Second Quarter Ended June 30, 1998 and 1999 and from
the Company's inception (October 21, 1983) through
June 30, 1999 8
Notes to Financial Statements 9
Management's Discussion and Analysis 10 - 11
2
<PAGE>
PART 1. FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
MATERIAL TECHNOLOGIES, INC.
(A Development Stage Company)
BALANCE SHEETS
ASSETS
December 31, June 30,
1998 1999
------------ --------
(Unaudited)
<S> <C> <C>
CURRENT ASSETS
Cash and Cash Equivalents . . . . . . $ 20 $ 64,848
Accounts Receivable . . . . . . . . . 202,737 77,991
Employee Advance. . . . . . . . . . . 1,500 1,500
------------ --------
TOTAL CURRENT ASSETS. . . . . . . . 204,257 144,339
------------ --------
FIXED ASSETS
Property and Equipment, Net
of Accumulated Depreciation . . . 2,712 1,262
------------ --------
OTHER ASSETS
Intangible Assets, Net of
Accumulated Amortization. . . . . 16,690 15,696
Investment in Marketable Securities. 8,219 8,219
Investment in Joint Venture . . . . . - 10,000
Refundable Deposit . . . . . . . . . 1,868 1,868
------------ --------
TOTAL OTHER ASSETS. . . . . . . . . 26,777 35,783
------------ --------
TOTAL ASSETS. . . . . . . . . . . . 233,746 181,384
============ ========
</TABLE>
See accompanying notes
3
<PAGE>
<TABLE>
<CAPTION>
MATERIAL TECHNOLOGIES, INC.
(A Development Stage Company)
BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
---------------------------------------
December 31, June 30,
1998 1999
-------------- ------------
(Unaudited)
<S> <C> <C>
CURRENT LIABILITIES
Legal Fees Payable . . . . . . . . . . . . . . . . . . . . . . . . . $ 149,453 145,528
Consulting Fees Payable. . . . . . . . . . . . . . . . . . . . . . . 101,669 76,355
Accounting Fees Payable. . . . . . . . . . . . . . . . . . . . . . . 23,308 15,711
Other Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . 17,334 6,305
Accrued Wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . -
Accrued Payroll Taxes. . . . . . . . . . . . . . . . . . . . . . . . 25,197 24,269
Loan Payable - Officer . . . . . . . . . . . . . . . . . . . . . . . 73,177 27,723
Loan Payable-Others. . . . . . . . . . . . . . . . . . . . . . . . . 46,273 48,594
-------------- ------------
TOTAL CURRENT LIABILITIES. . . . . . . . . . . . . . . . . . . . . 436,411 346,484
Payable on Research and
Development Sponsorship . . . . . . . . . . . . . . . . . . . . . 257,240 275,240
Note Payable - Other . . . . . . . . . . . . . . . . . . . . . . . . 25,527 25,688
-------------- ------------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . . . . . . . . 719,178 647,412
-------------- ------------
STOCKHOLDERS' EQUITY (DEFICIT)
Class A Common Stock, $.001 Par Value, Authorized 30,000,000
Shares, Outstanding 10,061,897 shares at December 31, 1998, and
12,886,897 shares at June 30, 1999. . . . . . . . . . . . . . . . 10,062 12,887
Class B Common Stock, $.001 Par Value, Authorized 100,000
Shares, Outstanding 60,000 Shares . . . . . . . . . . . . . . . . 60 60
Class A Preferred, $.001 Par Value, Authorized 900,000 Shares
Outstanding 350,000 Shares. . . . . . . . . . . . . . . . . . . . 350 350
Additional Paid in Capital . . . . . . . . . . . . . . . . . . . . . 2,996,664 3,193,006
Less Notes Receivable - Common Stock . . . . . . . . . . . . . . . . (14,720) (14,720)
Deficit Accumulated During the Development Stage . . . . . . . . . . (3,486,067) (3,663,831)
Unrealized Holding Gain on Investment Securities . . . . . . . . . . 8,219 8,219
-------------- ------------
TOTAL STOCKHOLDERS' (DEFICIT). . . . . . . . . . . . . . . . . . . . (485,432) (464,029)
-------------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
(DEFICIT) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 233,746 $ 183,383
============== ============
</TABLE>
See accompanying notes
4
<PAGE>
<TABLE>
<CAPTION>
MATERIAL TECHNOLOGIES, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
From Inception
For the Three Months Ended For the Six Months Ended (October 21, 1983)
June 30, June 30, Through
1998 1999 1998 1999 June 30, 1998
----------- -------------- ------------- -------------- -------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C>
REVENUES
Sale of Fatigue Fuses . . . . . . . . . . . . $ - $ - $ - $ - $ 64,505
Sale of Royalty Interests . . . . . . . . . . - - - - 198,750
Income from Research Contracts . . . . . . . 48,849 76,091 145,594 274,950 1,698,264
Test Services . . . . . . . . . . . . . . . . - - - - 10,870
----------- -------------- ------------- -------------- -------------
TOTAL REVENUES. . . . . . . . . . . . . . . 48,849 76,091 145,594 274,950 1,972,389
----------- -------------- ------------- -------------- -------------
COSTS AND EXPENSES
Research and Development. . . . . . . . . . . 63,617 26,581 94,070 34,658 1,873,620
General and Administrative. . . . . . . . . . 195,339 216,398 292,775 395,424 3,689,144
----------- -------------- ------------- -------------- -------------
TOTAL COSTS AND EXPENSES. . . . . . . . . . 258,956 242,979 386,845 430,082 5,562,764
----------- -------------- ------------- -------------- -------------
INCOME (LOSS) FROM OPERATIONS . . . . . . . (210,107) (166,888) (241,251) (155,132) (3,590,375)
----------- -------------- ------------- -------------- -------------
OTHER INCOME (EXPENSE)
Expense Reimbursed. . . . . . . . . . . . . . - - - - 4,510
Interest Income . . . . . . . . . . . . . . . - 107 - 173 39,676
Gain on Sale of Securities. . . . . . . . . . 53,880 - 53,880 4,396 207,497
Gain on Foreclosure . . . . . . . . . . . . . - - - - 18,697
Miscellaneous Income. . . . . . . . . . . . . - - - - 25,145
Loss on Sale of Equipment . . . . . . . . . . - - - - (12,780)
Settlement of Teaming Agreement . . . . . . . - - - - 50,000
Modification of Royalty Agreement . . . . . . (12,332) - (12,332) - (7,332)
Interest Expense. . . . . . . . . . . . . . . (14,383) (13,054) (24,308) (26,401) (152,991)
Litigation Settlement . . . . . . . . . . . . - - - - 18,095
----------- -------------- ------------- -------------- -------------
TOTAL OTHER INCOME (EXPENSES) . . . . . . . 27,165 (12,947) 17,240 (21,832) 190,517
----------- -------------- ------------- -------------- -------------
NET INCOME (LOSS) BEFORE EXTRAORDINARY
ITEMS AND PROVISION FOR INCOME TAXES. . . . . (182,942) (179,835) (224,011) (176,964) (3,399,858)
PROVISION FOR INCOME TAXES. . . . . . . . . . . - (800) - (800) (8,600)
----------- -------------- ------------- -------------- -------------
NET INCOME (LOSS) BEFORE
EXTRAORDINARY ITEMS . . . . . . . . . . . (182,942) (180,635) (224,011) (177,764) (3,408,458)
EXTRAORDINARY ITEMS
Forgiveness of Debt . . . . . . . . . . . . . - - -- -- (289,940)
Utilization of Operating Loss Carry forward. - - -- -- 7,000
NET (LOSS) . . . . . . . . . . . . . . . . $ (182,942) $ (180,635) $ (224,011) $ (177,764) (3,691,398)
=========== ============== ============= ============== =============
PER SHARE DATA
Income (Loss) Before Extraordinary Item . . . (0.020) $ (0.017) (0.030) $ (0.017)
Extraordinary Items . . . . . . . . . . . . . - - - -
----------- -------------- ------------- --------------
NET INCOME (LOSS) . . . . . . . . . . . . . (0.020) $ (0.017) (0.030) $ (0.017)
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING. . . . . . . . . . . . . . 9,130,778 10,860,359 7,565,087 10,524,278
=========== ============== ============= ==============
</TABLE>
See accompanying notes
5
<PAGE>
<TABLE>
<CAPTION>
MATERIAL TECHNOLOGIES, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
From Inception
For the Three Months Ende For the Six Months Ended (October 21, 1983)
June 30, June 30, Through
1998 1999 1998 1999 June 30, 1999
----------- ----------- -------------- ------------ -------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C> <C> <C> <C>
Net Income (Loss). . . . . . . . . . . . . . . . . $ (182,942) (180,635) $ (224,011) $ (177,764) (3,691,398)
----------- ----------- -------------- ------------ -------------
Adjustments to Reconcile Net Income
(Loss) to Net Cash Provided
(Used) by Operating Activities
Depreciation and Amortization. . . . . . . . . . . 1,195 1,222 2,391 2,444 171,827
Bad Debts. . . . . . . . . . . . . . . . . . . . . 50,000
Gain on Sale of Securities . . . . . . . . . . . . (53,880) - (53,880) (4,396) (193,596)
Gain on Foreclosure. . . . . . . . . . . . . . . . - - - - (18,697)
Charge off of Deferred Offering Costs. . . . . . . - - - - 36,480
Charge off of Long-lived Assets Due to Impairment. 92,919
Loss on Sale of Equipment. . . . . . . . . . . . . - - - - 12,780
Modification of Royalty Agreement. . . . . . . . . 7,332
Issuance of Common Stock for Services . . . . . . 5,617 32,500 5,617 32,500 470,664
Issuance of Stock for Agreement Modification . . . 7,332 - 7,332 - 152
Forgiveness of Indebtedness. . . . . . . . . . . . - - - - 165,000
(Increase) Decrease in Accounts Receivable. . . . 27,346 84,978 52,738 124,746 (129,491)
(Increase) in Employee Advances. . . . . . . . . . - - (848) - -
(Increase) Decrease in Prepaid Expense . . . . . . - - - - 321
Increase (Decrease) in Accounts
Payable and Accrued Expenses . . . . . . . . . . 75,223 36,994 53,411 17,874 706,834
Interest Accrued on Notes Payable. . . . . . . . . 9,000 12,367 23,059 25,028 115,503
Increase in Research and Development
Sponsorship Payable . . . . . . . . . . . . . . - - - - 218,000
(Increase) in Note for Litigation Settlement . . . - - - - (25,753)
(Increase) in Deposits . . . . . . . . . . . . . . - - - - (2,189)
----------- ----------- -------------- ------------ -------------
TOTAL ADJUSTMENTS. . . . . . . . . . . . . . . . 71,833 168,061 89,820 198,196 1,678,086
----------- ----------- -------------- ------------ -------------
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES. . . . . . . . . . . . . . . (111,109) (12,574) (134,191) 20,432 (2,013,312)
----------- ----------- -------------- ------------ -------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds From Sale of Equipment. . . . . . . . . . - - - - 10,250
Proceeds from Sale of Securities . . . . . . . . . 116,880 - 116,880 4,396 283,596
Purchase of Securities . . . . . . . . . . . . . . (90,000) - (90,000) - (90,000)
Purchase of Property and Equipment . . . . . . . . - - - - (229,413)
Investment in Joint Venture. . . . . . . . . . . . - (10,000) - (10,000) (10,000)
Proceeds from Foreclosure. . . . . . . . . . . . . - - - - 44,450
(Increase) in Other Assets . . . . . . . . . . . . - - - - (69,069)
Payment for License Agreement. . . . . . . . . . . - - - (6,250)
----------- ----------- -------------- ------------ -------------
NET CASH PROVIDED (USED) BY
INVESTING ACTIVITIES. . . . . . . . . . . . . . . 26,880 (10,000) 26,880 (5,604) (66,436)
----------- ----------- -------------- ------------ -------------
</TABLE>
See accompanying notes
6
<PAGE>
<TABLE>
<CAPTION>
MATERIAL TECHNOLOGIES, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
From Inception
For the Three Months Ended For the Six Months Ended (October 21, 1983)
June 30, June 30, Through
1998 1999 1998 1999 June 30, 1999
------------ ------------- ------------- -------------- --------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of Common Stock
Net of Offering Costs . . . . . . . $ - $ - $ - $ - $ 957,319
Costs incurred in Offering. . . . . . - - - - (31,480)
Sale of Common Stock Warrants . . . . - - - - 18,250
Payment on Proposed Reoganization . . - - - - (5,000)
Sale of Preferred Stock . . . . . . . - - - - 258,500
Sale of Redeemable Preferred Stock. . - - - - 150,000
Capital Contributions . . . . . . . . - - - - 301,068
Loans From Officers . . . . . . . . 57,500 25,000 106,500 75,000 700,807
Repayments to Officer . . . . . . . . - (9,000) - (25,000) (369,532)
( Increase) Decrease in Loans - Other. - - - - 164,664
------------ ------------- ------------- -------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES: . 57,500 16,000 106,500 50,000 2,144,596
------------ ------------- ------------- -------------- --------------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS. . . . . . . (26,729) (6,574) (811) 64,828 64,848
BEGINNING BALANCE CASH AND
CASH EQUIVALENTS. . . . . . . . . 28,369 71,422 2,451 20 -
------------ ------------- ------------- -------------- --------------
ENDING BALANCE CASH AND CASH
EQUIVALENTS . . . . . . . . . . . . $ 1,640 $ 64,848 1,640 $ 64,848 64,848
============ ============= ============= ============== ==============
</TABLE>
See accompanying notes
7
<PAGE>
<TABLE>
<CAPTION>
MATERIAL TECHNOLOGIES, INC.
(Formerly Tensiodyne Scientific Corporation)
(A Development Stage Company)
STATEMENTS OF COMPREHENSIVE INCOME
From Inception
For the Three Months Ended For the Six Months Ended (October 21, 1983)
June 30, June 30, Through
1998 1999 1998 1999 June 30, 1999
------------ ------------- ----------- ------------ ------------------
<S> <C> <C> <C> <C> <C>
NET (LOSS). . . . . . . . . . . . . . . . $ (182,942) $ (180,635) $ (224,011) $ (177,764) $ (3,691,398)
OTHER COMPREHENSIVE INCOME,
NET OF TAX
Unrealized Gains (Losses) on Securities. 81,000 - 81,000 - 8,219
------------ ------------- ----------- ------------ ------------------
TOTAL COMPREHENSIVE INCOME . . . . . . $ (101,942) $ (180,635) $ (143,011) $ (177,764) (3,683,179)
============ ============= =========== ============ ==================
</TABLE>
See accompanying notes
8
<PAGE>
MATERIAL TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
NOTE 1. In the opinion of the Company's management, the accompanying unaudited
financial statements contain all adjustments (consisting of normal recurring
accruals) necessary to present fairly the financial position of the Company as
of June 30, 1999 and 1998 and the results of operations and cash flows for the
three month periods then ended. The operating results of the Company on a
quarterly basis may not be indicative of operating results for the full year.
9
<PAGE>
MATERIAL TECHNOLOGIES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF
OPERATIONS
RESULTS OF OPERATIONS
- -----------------------
FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
The Company had no sales during the six month period ended June 30, 1999, or
during the six month periods ended June 30, 1998. The Company generated $274,950
under its research and development contracts during the first two quarters of
1999, as compared to $145,594 which was earned during the same period in 1998.
The Company realized a $4,396 gain from the sale of marketable securities and
interest income of $173 during the six-month period ended June 30, 1999. During
the same period in 1998, the Company realized a net gain from the sale of
marketable securities of $53,880.
During the six month period ended June 30, 1999, the Company incurred $34,658 in
development costs. Development costs incurred during the six months ended June
30, 1998, amounted to $94,070.
General and administration costs were $394,356 and $292,775 respectively, for
the six-month periods ended June 30, 1999 and 1998. The major costs incurred
during 1999, consisted of professional fees of $55,971, consulting fees of
$159,805, officer's salary of $70,000, travel of $27,792, telephone expense of
$9,565, rent of $13,452, and office expense of $9,317. The major costs incurred
during 1998, consisted of professional fees of $104,894, consulting fees of
$72,231, officer's salary of $45,000, telephone expense of $11,562, rent of
$8,487, and office expense of $7,156.
Interest expense for the six-months ended June 30, 1999 totaled $26,401 as
compared to $24,308 incured during the for the first six-months of 1998.
FOR THE THREE MONTHS ENDED JUNE 30, 1999 AND 1998
The Company had no sales during the three month period ended June 30, 1999 or
during the three month period ended June 30, 1998. During the three month period
ending June 30, 1999, the Company earned $76,091 from its research contract as
compared to $48,849 earned during the same period in 1998. During the three
months ended June 30, 1998, the Company realized a gain from the sale of
marketable securities of $53,880.
During the three-month period ended June 30, 1999, the Company incurred $26,581
in development costs as compared to $63,.617 incurred during the same three
month period of 1998.
10
<PAGE>
General and administration costs were $216,398 and $195,339, respectively, for
the three-month periods ended June 30, 1999 and 1998. The major costs incurred
during 1999, consisted of professional fees of $29,144, consulting fees of
$117,755, officer's salary of $20,000, travel expenses of $13,128, telephone
expense of $5,550, office expense of $4,381, and rent of $5,908. The major costs
incurred during 1998, consisted of professional fees of $83,625, consulting fees
of $52,599, officer's salary of $22,500, interest expense of $9,625, and
telephone expense of $5,686.
LIQUIDITY AND CAPITAL RESOURCES
- ----------------------------------
Cash and cash equivalents as of June 30, 1999 and 1998 were $64,848, and
$1,640, respectively. During 1999, the Company generated net cash from
operations of $20,432, received $4,396 through the sale of marketable
securities, and received $75,000 from officer advances. During 1999, the Company
invested $10,000 in a joint venture and repaid $25,000 in officer advances.
During 1998, the Company received $116,880 through the sale of marketable
securities, and $106,500 from officer advances. Of the $223,180 received in
1998, $134,191 was used in operations, and $90,000 was used to purchase
marketable securities.
ITEM 2. CHANGES IN SECURITIES
During the three months ended June 30, 1999, the Corporation issued 625,000
shares of its Class A Common Stock to several consultants and 200,000 shares of
its Class A Common Stock to an attorney, all for services rendered. In addition,
the Company issued 2,000,000 shares of its Class A Common Stock to its President
in exchange for the cancellation of $100,000 of indebtedness due him by the
Company.
The Company also issued options to various consultants and advisors to
acquire 775, 000 shares of the Company's Class A Common Stock. Options to
acquire 100,000 of those shares, at a price of $.0025, expire on December 2,
1999. Options to acquire the remaining 675,000 shares at a price of $.25 per
share expire on June 17, 2009.
11
<PAGE>
PURSUANT TO THE REQUIREMENTS OF SECURITIES EXCHANGE ACT OF 1934, THE REGISTRANT
HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED
THEREUNTO DULY AUTHORIZED.
MATERIAL TECHNOLOGIES, INC.
---------------------------
REGISTRANT
/s/ Robert M. Berstein______________
---------------------------------------
ROBERT M. BERNSTEIN, PRESIDENT AND CHIEF
FINANCIAL OFFICER
DATE: AUGUST 10, 1999
12
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S UNAUDITED FINANCIAL STATEMENTS FOR THE QUARTER ENDED June 30, 1999 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 64848
<SECURITIES> 0
<RECEIVABLES> 77991
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 144339
<PP&E> 121957
<DEPRECIATION> 120695
<TOTAL-ASSETS> 181384
<CURRENT-LIABILITIES> 344485
<BONDS> 0
<COMMON> 12947
0
350
<OTHER-SE> (477326)
<TOTAL-LIABILITY-AND-EQUITY> 181364
<SALES> 0
<TOTAL-REVENUES> 274950
<CGS> 0
<TOTAL-COSTS> 430082
<OTHER-EXPENSES> 21832
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 26401
<INCOME-PRETAX> (176964)
<INCOME-TAX> (800)
<INCOME-CONTINUING> (177764)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (177764)
<EPS-BASIC> (.01)
<EPS-DILUTED> 0
</TABLE>
