UNITES STATES
SECUTITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-Q
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the period ended March 31, 1999
[ ] TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSACTION PERIOD
FROM _______ TO ______
Commission File No. 000-23051
Wireless Data Solutions, Inc.
(Exact Name of registrant as specified in its charter)
Utah 93-0734888
(State of Incorporation) (I.R.S. Employer Identification No.)
2233 Roosevelt Road, Ste. 5
St. Cloud, MN 56301
(Address of principal executive offices)
(320) 203-7477
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 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 ___
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING
THE PRECEDING FIVE YEARS
Not Applicable
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicates the number of shares outstanding of each of the Registrant's
classes of common stock, as of the practicable date:
There were 10,182,124 shares of the Issuer's common stock outstanding as of
May 13, 1999.
<PAGE>
PART I
Wireless Data Solutions, Inc. And Subsidiaries
Consolidated Balance Sheet
March 31, 1999
ASSETS
3/31/99 3/31/98
(Unaudited) (Unaudited)
Current Assets:
Cash and cash equivalents $49,342 $160,472
Trade accounts receivable, net of
$80,292 estimated allowance for
doubtful accounts 317,230 844,375
Prepaid expenses 39,167 0
Inventory 178,925 162,537
------- -------
Total Current Assets 584,664 1,167,384
Fixed Assets:
Office fixtures and equipment 15,033 15,033
Leasehold Improvements 12,894 12,894
------ ------
Sub-Total 27,927 27,927
------ ------
Less: Accumulated Depreciation
and Amortization 27,927 27,927
--------- --------
Net Fixed Assets 0 0
Other Assets:
Prepaid service contract 58,513 111,936
Due from related parties 290,009 252,625
Due from Angellcom 35,000 0
Due from RD220 28,649 0
Allowance for loan losses 63,649 0
Security deposits 3,113 3,113
-------- --------
Total Other Assets 451,635 367,674
-------- --------
TOTAL ASSETS $1,036,300 $1,535,058
LIABILITIES
Current Liabilities:
Trade accounts payable $222,450 $260,896
Payable in stock 70,800 0
Current portion of other liabilities 71,948 7,800
Advance from Customers 22,478 79,852
Other accrued liabilities 1,640 7,247
------- -------
Total Current Liabilities 389,316 355,795
Other Liabilities:
Accrued salaries, related payroll
taxes, reimbursable expenses
payable to officers 568,417 657,633
Less: Current portion of accrued
salaries & related taxes 0 0
--------- ---------
Total Other Liabilities 568,417 657,633
--------- ---------
TOTAL LIABILITIES 957,733 1,013,428
Minority interests in consolidated
subsidiaries 20,000 20,000
STOCKHOLDERS' DEFICIENCY:
Preferred Stock, $.002 par value;
3,000,000 shares authorized;
no shares issued or outstanding 0 0
Common Stock, $.001 par value;
25,000,000 shares authorized;
9,518,720 shares issued and
outstanding at 3/31/98 &
10,182,310 at 3/31/99. 10,182 9,519
Common Stock options outstanding 11,250 11,250
Additional paid-in-capital 1,927,969 1,735,381
Deficit (1,842,061) (1,205,746)
---------- ---------
Sub-Total 107,340 550,404
Receivable from related entity for
sale of common stock (48,773) (48,773)
-------- --------
Total Stockholders' Equity (58,567) 501,631
--------- ---------
TOTAL LIAB. &
STOCKHOLDERS' EQUITY $1,036,300 $1,535,058
<PAGE>
Wireless Data Solutions, Inc. And Subsidiaries
Consolidated Statement of Earnings
For the Period Ended, March 31, 1999
3/31/99 3/31/98
(Unaudited) (Unaudited)
REVENUES
Net product sales $643,137 $1,010,681
Other Income 11,147 27,279
------ -------
Total Revenues 654,284 1,037,960
COST OF SALES
Products 316,034 477,861
------ ------
Total Cost of Sales 316,034 477,861
------ ------
Gross Profit 338,250 560,099
Operating Expenses 653,903 509,050
------ ------
Income before Interest (315,653) 51,049
Interest expense, net of interest income 15,588 14,993
------- ------
Income before taxes (331,241) 36,056
Provision for income taxes 0 8,414
-------- -------
NET EARNINGS ($331,241) $27,642
<PAGE>
Wireless Data Solutions, Inc. And Subsidiaries
Consolidated Statement of Cash Flows
For The Period Ended March 31, 1999 and 1998
3/31/99 3/31/98
Operating Activities:
Net Income ($331,241) $27,642
Changes in Operating Assets and Liabilities:
Decrease in accounts receivable 148,160 (82,789)
Decrease in inventory 89,332 78,198
Increase in other assets (39,167) 0
Decrease in accounts payable (84,326) (150,904)
Increase in advances from customers 13,728 (17,969)
Increase in other payables 69,837 (176,768)
Decrease in deferred service contract 23,620 84,164
------- -------
Net cash provided by operating activities 170,055 (238,426)
Investing Activities:
Proceeds of miscellaneous assets 0 0
Financing Activities:
Increase in due from related parties (5,002) (8,183)
Increase in loan allowance 63,649 0
Increase in due to related parties and
related expenses (1,000) (34,499)
Proceeds of issuance of common stock 1,000 358,250
------- -------
Net cash provided by financing activities 58,647 315,568
------- -------
Net increase in cash (51,410) 77,142
Cash at beginning of period 100,752 83,330
-------- ------
Cash at end of period $49,342 $160,472
<PAGE>
Wireless Data Solutions, Inc. And Subsidiaries
Consolidated Statement of Stockholders' Equity
For The Period Ended March 31, 1999
<TABLE>
<CAPTION>
Common Additional
Common Stock Options Paid-In
Stock Outstanding Capital Deficit Total
<S> <C> <C> <C> <C> <C>
Balance at September 30, 1998 $10,162 $11,250 $1,926,989 ($1,510,720) $437,581
Net Earnings for the period
ended March 31, 1999 (331,241) (331,241)
Stock issued to cancel debt
to officer 20 980 1,000
------- ------- ------------ ---------- ---------
Sub-Total 10,182 11,250 1,927,969 (1,842,061) 107,340
Receivable from related entity
for sale of common stock (48,773)
--------
Balance at March 31, 1999 $10,182 $11,250 $1,927,969 ($1,841,961) ($58,567)
</TABLE>
<PAGE>
Wireless Data Solutions, Inc. And Subsidiaries
Consolidated Statement of Stockholders' Equity
For The Period Ended March 31, 1998
<TABLE>
<CAPTION>
Common Additional
Common Stock Options Paid- In
Stock Outstanding Capital Deficit Total
<S> <C> <C> <C> <C> <C>
Balance at September 30, 1997 $8,165 $11,250 $1,378,485 ($1,233,388) $164,512
Net Earnings for the period
ended March 31, 1998 27,642 27,642
Issuance of common stock
Exercise of common stock options
Stock issued for service contracts 480 112,387 112,867
Private placement 724 210,159 210,883
Stock issued to cancel debt to officer 150 34,350 34,500
Prior period adustment
-------- ------ ------- -------- -------
Sub-Total 9,519 11,250 1,735,381 (1,205,746) 550,404
Receivable from related entity
for sale of common stock (48,773)
-------
Balance at March 31, 1998 $9,519 $11,250 $1,735,381 ($1,205,746) $501,631
</TABLE>
<PAGE>
Notes to Consolidated Financial Statements
Summary of Accounting Policies:
The summary of Wireless Data Solution's Inc. ("the company") significant
accounting policies are incorporated by reference to the Company's
Registration Statement filed on Form 10-SB, as amended, dated February 12,
1998.
The accompanying unaudited consolidated financial statements reflect all
adjustments which, in the opinion of management, are necessary for a fair
presentation of the results of operations, financial position and cash flows.
The results of the interim period are not necessarily indicative of the
results for the full year.
Company Background Information:
The following background information is deemed important in conjunction and
context with the data provided in the financial statements for the period
ending March 31, 1999.
Dinet, Wireless Data Solutions' wholly owned subsidiary, sales the 2nd half
of fiscal year 1998 were down (-) 52% for the same time frame in FY 1997.
(The fiscal year is October through September, the 2nd half of FY 1998 runs
from April through September). As the board reviewed Dinet sales projections
for the first quarter of FY 1999 (October-December), it was clear that this
alarming decline in sales was projected to continue. Most concerning was
that Dinet's sales pipeline was at a very low point. (The sales pipeline is
defined as those customers that have been qualified to purchase, have
indicated that they intend to purchase from Dinet, and have provided an
approximate time frame when they will make this purchase). It was apparent
to the board that both management and strategy changes were required for
Dinet to correct these business problems.
Subsequently, on September 13, 1989 Brian Blankenburg, a board member of
WDS and a partner in a national business consulting company, agreed to
take a leave of absence from his consulting business, and accepted the
position as President of Dinet. He had broad experience as an executive
in strategic business planning, marketing and sales management with three
fortune 200 companies, as well as special expertise in managing business
turn-arounds. In turn, he named Nicholas Watts as General Manager. Prior
to his promotion, Mr. Watts had been with Dinet as director of operations
and purchasing. He also had increasingly assisted in sales and marketing
management.
On February 24, 1999, Mike McLaughlin was replaced as CEO, Board
chairman and president of WDS and as Board chairman and secretary of Dinet.
Management's Discussion and Analysis or Plan of Operation
Liquidity and Capital Resources:
The company's current assets totaled $584,664 on March 31, 1999.
This was a decrease of approximately $582,720 from March 31, 1998.
One of the first goals of the new management team was to significantly
improve the enforcement of Dinet's terms of payment policy. The goal was
to improve cash flow and reduce outstanding Accounts Receivable. As a
result, Accounts Receivable were reduced approximately $557, through the
collection of past due accounts and the reconciliation of customer problems,
with a product that Dinet had introduced at the beginning of 1998.
Analysis conducted in conjunction with this goal identified two large
balances that were deemed uncollectable. Consequently, "Allowance for
Bad Debts" were increased in anticipation of this fact, and this
information is summarized under the "Results of Operations. "Cash Decreases"
of approximately $110,000 accounted for the second largest reduction of
current assets.
The balance of the change in assets was due to a small increase in
Inventory that was associated with a management decision that this was
an essential factor for improving customer service. This was a part
of an overall business strategy to improve sales based upon the fact that
existing customer referrals were determined to be an important part of
"new customer sales," and that a decline in customer service had resulted
in a decline of customer referrals.
Management believes that cash flow from operations and current cash balances
will be sufficient to fund operations and expenses for the near term. The
company also has a "credit line" to factor receivables available from Brian
Watts. Mr. Watts is a major shareholder in WDS. At 2nd quarter end,
approximately $24,500 was owed to Brian Watts compared to $122,000 at
year end.
Management believes that to achieve the desired growth, they will have
to pursue equity financing, which will allow them to pursue new products
and new markets.
Results of Operations:
Revenues for the 2nd quarter ending March 31, 1999 were down approximately
$173,000 compared to the second quarter of 1998.
As indicated in the "Company Background Information" section of this
report, the second half of 1998 revealed an alarming sales decline trend
in Dinet sales. The company's sales for the 2nd half of FY 1998 were
down approximately $600,000 or (-)52% for the same time frame in FY 1997.
The sales cycle for Dinet typically runs from 6-18 months. This is the
time required to complete a sale. The sales projections for the 1st quarter
of FY 1999 (October through December) revealed a continuation of this trend.
Subsequently these concerns unfortunately proved true when 1st quarter FY
1999 sales were down approximately $200,000 or (-) 50% from 1st quarter FY
1998. It was the basis of this projection that the management changes
previously reviewed in the "Company Background Information" section of
this report were made.
The first action of the new management team was an analysis of Dinet's
business. Based upon this, a diagnosis was made that the dramatic decrease
in the sales pipeline was caused by a serious drift from the company's core
business, which was the construction industry. A second action was to make
the difficult decision to pull from the market and redesign Dinet's fleet
vehicle tracking product that had been introduced in fiscal year 1998 and
had been plagued by numerous on-going product performance problems
(these accounted for some of the Accounts Receivable" problems discussed
in the narrative on receivables in this report. A third decision was to
improve customer service which had been hampered by both the customer
problems created by the sale of the vehicle tracking product, and the
necessity to assign limited technical resources to solve these problems
at the expense of servicing customer needs in the core business. A fourth
action was to reduce operating expenses through a 30 percent reduction in
personnel and operating costs, and at the same time, increase margins
through a dramatic reduction in the discounts provided for customers as a
purchase incentive.
As predicted in FY 1999 1st quarter sales were down (as projected)
approximately 50% from FY 1998. While sales rebounded in the 2nd quarter,
the result was that total sales revenues for the first six months of FY 1999
were down $383,676 as compared to the first six months of FY 1998. However,
at the end of the 2nd quarter ( January - March 31, 1999) the sales
backlog for the 3rd quarter (April through June) was approximately $210,000.
This is a strong indicator that the new business strategies developed and
implemented were working after three straight quarters of significant losses.
The decline in total revenues needs to be viewed in the context that for
the 2nd half of 1998 total sales declined dramatically to approximately
$500,000 for both the 3rd and 4th quarters. In the 3rd quarter of 1999
sales are expected to be between $450,000 and $500,000. The rebound in
sales as the sales pipeline continues to be refilled should result in
final revenue figures for 1999 that approximate 1998. From another
perspective, if Dinet's FY 1999 1st quarter sales had not been so low
(continuing the trend from the last two quarters of FY 1998), the company
would have a slight sales increase over 1998. The point being that the
new business strategies are working and that a fundamental difference
between 1998 & 1999 is that in the 2nd half of 1998 sales were declining.
In the 2nd half of 1999 sales are increasing.
A result of the cost reduction strategies implemented in the 1st quarter
was a reduction of "Operating Expenses" by approximately $10,000 per month
for the 2nd quarter FY 1999 as compared to 2nd quarter 1998. This reduction
is not apparent from the financial data presented. The financials show
increased expenses, however the expense increases are due to the write downs
of receivables and loans. Write downs of this magnitude are unusual for the
company. The down side of the expense reduction was a shortage of engineering
time needed to produce products sufficient to meet new sales demands.
However this was a short term trade off decision that management
conscientiously made to reduce costs. Now that the sales pipeline has
been sufficiently refilled, it is expected that in the near term, expense
will increase in both the sales and engineering area as the company continues
to grow the business. Those increases are predicated on the anticipated cash
flow increase resulting from increased sales revenues.
From an operations viewpoint, the company was at a near break even in
the 2nd quarter, with a profit of approximately $1,000. However the unusual
expenses in connection with to the management change and a substantial write
down of assets associated with prior months activities, significantly cloud
the progress made in recent months. Legal fees of $10,000 were incurred
during the quarter, which were associated with the management change. The
Accounts Receivable write down of $13,000 was associated with defective
product shipped over one year ago. The Accounts Receivable Allowance was
increased approximately $75,000 because some old receivables were deemed
uncollectable. Loans to RD220 and Angellcom were thought to be questionable,
as such a reserve of $63,649 was established. To gather those items totaled
$161,649 which reduced the possible $1,000 profit to approximately $160,000
in losses. The significant point derived from the analysis of these
accounts is that the company has developed a positive cash flow.
In conjunction with the analysis conducted by the new management team of
short term Dinet business problems that needed to be overcome long term
growth strategies were also evaluated. In order to exploit other growth
opportunities available through Dinet's technology and products, the
realization was that it was essential that Dinet acquire growth capital.
This requirement had always been assumed by the chairman and CEO of Wireless
Data Solutions, Inc., Mike McLaughlin. The WDS board, in reviewing the
inability of the corporation to accomplish this objective, accompanied by
the significant decline in sales revenues in Dinet in 1998, made the
difficult decision to ask for the resignation of Mike McLaughlin as chairman,
CEO, and president of WDS in February , 1999. He subsequently refused to
resign, but was removed as chairman, CEO and president by a majority vote of
the board. Pat Makovec replaced him as chairman. Brian Blankenburg assumed
the additional responsibilities of CEO/president of WDS, along with his
responsibilities as president of Dinet.
According to Mike McLaughlin, a termination agreement exists between Mike
McLaughlin and WDS, which would require the company to immediately pay all
outstanding salary (accruals and otherwise), along with one years severance
pay and health insurance. If it were deemed that he was removed for cause,
relating to the execution of his job responsibilities, the severance would
be disallowed. As of March 31, 1999 WDS owed Mr. McLaughlin, according to
Mike McLaughlin, approximately $260,000 in unpaid salary. Mike McLaughlin's
severance package would total approximately $98,000. However, John Doubek,
the attorney representing WDS in the management change and related issues,
feels there are enough legal issues, questions, and facts that will
demonstrate Mike McLaughlin is not entitled to the severance package or
even the accrued salary. In keeping with the legal assessment of the
situation, management does not feel obligated to record a current expense
in the matter.
The company engaged the service of John Doubek to provide the legal service
required to complete this management change as they relate to Mr. McLaughlin.
The costs associated with this are estimated to be $40,000. He has agreed
to accept stock in payment for his services. The fair market value of the
stock was $0.10 per share at the time of the legal representation agreement.
This translates to 400,000 shares of common stock that will be issued for
legal fees.
At the same time, Brian Blankenburg was issued 100,000 shares of common
stock as an incentive to join Wireless Data Solutions, Inc. as president &
CEO, and Dinet as president. The value of the stock agreement was $10,000.
The fair market value of stock at the time of the transaction was $0.10 per
share. Mr. Blankenburg agreed to a beginning salary far below the rate
commanded by his ability and experience. He has agreed to serve in these
capacities for no less than one year.
WDS has loans outstanding to Angellcom International, Inc. and RD220. The
net realizable value of which are minimal. An allowance for the total
amount of $63,649 has been established. Requests for payment have been
made. However, there are no indications that payment will be forthcoming.
The debtors have alleged that certain terms & conditions of the agreement
were not respected by WDS, thus WDS was not in compliance with the oral and
written agreements. WDS makes the same assertions. Efforts to resolve the
situation will be continued.
Cash holdings for this period compared to the same period in 1998 declined
approximately $110,000. The company incurred major cash losses during the
second half of 1998 and the first quarter of 1999. Substantial losses were
also incurred in the second quarter of 1999, however the company maintained
a positive cash flow in the second quarter.
Prepaid expenses increased by approximately $39,000 over the period ending
March 31, 1998. $30,000 of the prepaid expenses are legal fees which have
not yet been performed by Mr. Doubek, but are expected to be performed over
the next six months. The legal fees are associated with the management
change and attending issues. $9,167 of prepaid is the salary incentive for
Brian Blankenburg which is unamortized. The salary incentive will be
amortized over a period of year which is the minimum agreed upon term of
employment for Mr. Blankenburg.
Prepaid service contracts have increased over 1998 because additional
services were contracted after March 31, 1998. Marketing services performed
by Mr. Blankenburg were done prior to his becoming an employee and are
being amortized over three years. The contract performed by Mr. Dave Wood
for public relation services is being amortized over five years. In both
instances the expense is spread over the anticipated useful life of the
services rendered.
Due from related parties increased by approximately $43,000 since March 31,
1998. The increase was for certain management services performed for
Bernard, Lee & Edwards on behalf of Heartland Diversified Industries. Also,
interest at the rate of 7% was charged to Heartland Diversified for moneys
owed as a result of Heartland's purchase of Bernard, Lee & Edwards. A
shareholder of WDS initiated a derivative and class action suit against
Heartland Diversified Industries on behalf of himself and all shareholders
of SOLU. In that suit, he is requesting $332,773 in contract damages, any
recovery will flow directly to WDS. Heartland Diversified Industries is
controlled by Mike McLaughlin, who is Board Chairman, president, and who has
a very large stock position in Heartland. Heartland owns in excess of
1,600,000 shares of WDS.
The value of loans to Angellcom and RD220 are thought by management to
be minimal. The net realizable value, considering attorney fees and other
costs of collection, should WDS proceed with litigation, is believed to be
insignificant. Other discussions of this matter is referenced above in the
discussion of operating expenses.
The payable in stock is owed to Brian Blankenburg and John Doubek. Mr.
Doubek is owed 400,000 shares for legal services relating to the management
change and related issues. Mr. Blankenburg earned approximately 199,000
shares under an arrangement in connection with his employment as president
of Dinet. During the period in September 14, 1998 to February 26, 1999, Mr.
Blankenburg earned $1,500 per week, $500 was paid by check and $1,000 was
paid in stock, based on the average stock price during that week. When
assuming the role of CEO and president of WDS, he was granted 100,000 shares
as an incentive to assume a salary at less than market for his ability and
experience.
Approximately 699,000 shares of common stock will be issued to satisfy
the obligations detailed in the discussion of the "Payable in Stock" account
above.
Financial Condition:
Cash holdings for the period declined approximately $110,000 to March 31,
1998. The decrease was a direct result of a serious sales decline starting
in the 3rd quarter of 1998. The decline is beginning to reverse in the 2nd
quarter of 1999.
Related Party Transactions:
Brian Blankenburg received 100,000 shares of common stock as an incentive
to assume the role of president and CEO of WDS at a salary of $60,000. The
salary is below standard for someone of his knowledge and experience,
particularly considering he also functions as president of Dinet.
Subsequent Events:
No subsequent events to report.
Forward Looking Statements:
The foregoing and subsequent discussion contains certain forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934, which are intended to
be covered by the safe harbors created thereby. These forward-looking
statements include the plans and objectives of management for future and
possible further capitalization of the Company. These forward-looking
statements contained herein are based on current expectations that involve
numerous risks and uncertainties. Assumptions relating to such current
expectations involve judgments with respect to, among other things, future
market conditions and future business decisions, all of which are difficult
or impossible to predict accurately and many of which are beyond and control
of the Company. Although the Company believes that the assumptions could be
inaccurate and therefore there can be no assurance that assumptions could be
inaccurate and therefore there can be no assurance that the forward-looking
statements included in this Form 10-QSB will prove to be accurate. In light
of the significant uncertainties inherent in the forwardrein, the
inclusion of such information should not be regarded as a representation of
the Company or any other person that the objectives and plans of the Company
will be achieved.
PART II
Item 1. Legal Proceedings.
Not applicable.
Item 2. Changes in Securities and Use of Proceeds.
None; not applicable.
Item 3. Defaults Upon Senior Securities.
There has been no material default in the payment of principal, interact,
a sinking or purchase fund installment, of any other material default not
cured within 30 days with respect to any indebtedness of the Company
exceeding five percent (5%) of the total assets of the Company.
Item 4. Submission of Matters to a Vote of Security Holders.
No matters were submitted to a vote of the Company's
security holders during the fiscal quarter covered by this report.
Item 5. Other information.
The Company has no other information to report.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
Exhibit
Number Description
2.1* Agreement dated March 1, 1984, between
Heartland Oil & Mineral Corporation and
Gold Genie Worldwide, an Oregon partnership
2.2* Buy/Sell Agreement dated March 1, 1984,
between the Company and Heartland Oil &
Mineral Corporation
3.1* Articles of Incorporation of Gold Genie
Worldwide, Inc., filed on March 7, 1984.
3.2* Certificates of Amendment to the Articles
of Incorporation of Products, Services, &
Technology Corporation, filed on June 13, 1988
3.3* Articles of Domestication of Products, Services
and Technology Corporation, filed on June 2,
1997.
3.4* Articles of Amendment to the Articles of
Incorporation of Products, Services and
Technology Corporation, filed on June 13, 1997
3.5* Bylaws of Products, Services and Technology
Corporation dated as of June 2, 1997
10.1* Settlement Agreement and Release dated December
17, 1987, between Heartland Diversified
Industries, Inc., the Company, and certain
individuals
10.2* Agreement, dated April 19, 1988, by and between
the Company, Heartland Diversified Industries,
Inc., Distributed Networks, Inc., and certain
shareholders of Distributed Networks, Inc.
10.3* Buy/Sell Agreement, dated March 27, 1996, by
and between the Company and Heartland
Diversified Industries, Inc.
10.4* Consulting Agreement dated April 15, 1997,
among Products, Services and Technology
Corporation, David Wood and Henry Hanson
11 Statement regarding computation of per share
earnings
24 Power of Attorney
27 Financial Data Schedule
99* Gold Genie Worldwide, Inc. Offering Prospectus,
dated July 24, 1985
1 Summaries of all exhibits contained in this Registration
Statement are modified in their entirety by reference to
such exhibits.
* Incorporated by reference herein to the Company's Form 10
SB, as amended, dated as of February 12, 1998
(b) Forms 8-K filed during the last quarter. One, March 3, 1999.
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.
May 14, 1999 WIRELESS DATA SOLUTIONS, INC.
/s/ Patrick Makovec
Patrick Makovec
Board Chairman
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Unaudited Consolidated Balance Sheets and Consolidated of Operations for
the six month period ended March 31, 1999 and March 31, 1998 and is
qualified in its entirety be reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> MAR-31-1999
<CASH> 49,342
<SECURITIES> 0
<RECEIVABLES> 397,522
<ALLOWANCES> 80,292
<INVENTORY> 178,925
<CURRENT-ASSETS> 584,664
<PP&E> 27,894
<DEPRECIATION> 27,894
<TOTAL-ASSETS> 1,036,300
<CURRENT-LIABILITIES> 389,316
<BONDS> 0
0
0
<COMMON> 10,182
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1,036,300
<SALES> 643,137
<TOTAL-REVENUES> 11,147
<CGS> 316,034
<TOTAL-COSTS> 316,034
<OTHER-EXPENSES> 653,903
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 15,588
<INCOME-PRETAX> (331,241)
<INCOME-TAX> 0
<INCOME-CONTINUING> (331,241)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (331,241)
<EPS-PRIMARY> (.03)
<EPS-DILUTED> (.03)
</TABLE>
