UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
|X| Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act
of 1934. For the quarterly period ended: September 30, 1998
or
|_| Transition Report Pursuance to Section 13 or 15(d) of the Securities
Exchange Act of 1934.
For the transition period from to
---------------- ----------------
Commission File Number: 000-23039
ORALABS HOLDING CORP.
---------------------
(Exact name of small business issuer as specified in its charter)
Colorado 14-1623047
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2901 South Tejon, Englewood, Colorado 80110
- ------------------------------------- -----
(Address of principal executive offices) (Zip Code)
(303) 783-9499
(Issuer's telephone number)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
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.
|X| Yes |_| No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
Check whether the issuer filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 after
the distribution of securities under a plan confirmed by a court.
|_| Yes |_| No
APPLICABLE ONLY TO CORPORATE ISSUERS:
As of September 30 , 1998 Issuer had 9,129,921 shares of common stock,
$.001 Par Value, outstanding.
Transitional Small Business Disclosure Format (check one) |_| Yes |X| No
<PAGE>
INDEX
-----
Page
Number
------
Part I. Financial Information
Item I. Financial Statements
Consolidated Balance Sheets as of September 30,
1998 (Unaudited) and December 31, 1997 2
Consolidated Statements of Income Three
Months Ended September 30, 1998 and
September 30, 1997 (Unaudited) 3
Consolidated Statements of Income Nine
Months Ended September 30, 1998 and
September 30, 1997 (Unaudited) 4
Consolidated Statement of Changes in Stock-
holders' Equity from December 31, 1997
through September 30, 1998 (Unaudited) 5
Consolidated Statements of Cash Flows,
Three Months Ended September 30, 1998 and
September 30, 1997 (Unaudited) 6
Consolidated Statements of Cash Flows,
Nine Months Ended September 30, 1998 and
September 30, 1997 (Unaudited) 7
Notes to Consolidated Financial Statements 8
Item 2. Management's Discussion and Analysis of
Financial Conditions and Results of Operations 11
Part II. Other Information 14
Exhibit Index 15
1
<PAGE>
ORALABS HOLDING CORP. AND CONSOLIDATED SUBSIDIARIES
---------------------------------------------------
BALANCE SHEETS
(Unaudited)
September 30, December 31,
1998 1997
---- ----
Current Assets
Cash in bank $ 263,243 $1,023,598
Inventory 1,745,416 599,270
Accounts receivable, net of allowance
for doubtful accounts 762,229 686,668
Other current assets 145,372 159,679
---------- ----------
Total Current Assets 2,916,260 2,469,215
Property and equipment, net of accumulated
depreciation 396,369 214,732
---------- ----------
Total Assets $3,312,629 $2,683,947
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities
Accounts payable and accrued expenses $ 583,980 $ 556,865
Income taxes payable 3,093 119,586
---------- ----------
Total Current Liabilities 587,073 676,451
---------- ----------
Stockholders' Equity:
Preferred stock - $.001 par value
1,000,000 shares authorized
none issued and outstanding -- --
Common stock - $.001 par value,
25,000,000 shares authorized;
9,129,921 shares issued and
outstanding 9,130 9,124
Additional paid-in capital 1,148,077 1,134,427
Retained earnings 1,568,349 863,945
---------- ----------
Total Stockholders' Equity 2,725,556 2,007,496
---------- ----------
Total Liabilities and Stockholders' Equity $3,312,629 $2,683,947
========== ==========
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
ORALABS HOLDING CORP. AND CONSOLIDATED SUBSIDIARIES
---------------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Three Months
Ended Sept 30, Ended Sept 30,
1998 1997
---- ----
Revenue:
Sales $1,749,251 $1,491,647
Cost of sales 811,209 675,794
---------- ----------
Gross Profit 938,042 815,853
---------- ----------
Operating Expenses
Salaries 232,781 145,039
Bad debts 8,746 7,458
Rent 49,500 16,500
Commissions 32,986 36,701
Research and development 5,573 1,483
Depreciation 17,733 11,607
Other operating expenses 266,429 202,326
---------- ----------
Total Operating Expenses 613,748 421,114
---------- ----------
Net Operating Income 324,294 394,739
---------- ----------
Other Income
Interest and other income 12,660 10,235
---------- ----------
Total Other Income 12,660 10,235
---------- ----------
Net Income before taxes 336,954 404,974
Provision for Income taxes 114,564 158,744
---------- ----------
Net Income $ 222,390 $ 246,230
========== ==========
Basic Income per Common Share $ .02 $ .03
========== ==========
Weighted Average Shares Outstanding 9,129,921 9,123,555
========== ==========
Diluted Income per Share $ .02 $ .03
========== ==========
Diluted Weighted Average Shares
Outstanding 9,428,601 8,130,777
========== ==========
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
ORALABS HOLDING CORP. AND CONSOLIDATED SUBSIDIARIES
---------------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Nine Months Ended Nine Months Ended
Sept. 30, 1998 Sept. 30, 1997
-------------- --------------
Revenue:
Sales $5,336,213 $4,424,004
Cost of sales 2,556,560 1,887,934
---------- ----------
Gross Profit 2,779,652 2,536,070
---------- ----------
Operating Expenses
Salaries 605,503 406,907
Stock issued for services -- 340,000
Bad debts 26,300 22,120
Rent 112,750 49,500
Commissions 127,905 160,207
Research and development 47,743 7,168
Depreciation 49,896 33,290
Other operating expenses 778,671 551,089
---------- ----------
Total Operating Expenses 1,748,768 1,570,281
---------- ----------
Net Operating Income 1,030,884 965,789
---------- ----------
Other Income
Interest and other income 36,438 22,348
---------- ----------
Total Other Income 36,438 22,348
---------- ----------
Net Income before taxes 1,067,322 988,137
Provision for Income taxes 362,918 282,320
---------- ----------
Net Income $ 704,404 $ 705,817
========== ==========
Basic Income per Common Share $ .08 $ .08
========== ==========
Weighted Average Shares Outstanding 9,129,921 8,707,277
========== ==========
Diluted Income per Share $ .07 $ .06
========== ==========
Diluted Weighted Average Shares
Outstanding 9,428,601 8,130,777
========== ==========
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
ORALABS HOLDING CORP. AND CONSOLIDATED SUBSIDIARIES
---------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
From December 31, 1997 through September 30, 1998
(Unaudited)
Preferred Stock Common Stock Additional
---------- ----- ----------------------- Paid-in Retained
No./Shares Amount No./Shares Amount Capital Earnings Total
---------- ------ ---------- ------ ------- -------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1997 -- $ -- 9,123,555 $ 9,124 $1,134,427 $ 863,945 $2,007,496
Common stock issued for services
at $2.75 per share -- -- 4,166 4 11,452 -- 11,456
Stock options exercised at
$1.00 per share -- -- 2,200 2 2,198 -- 2,200
Net income for the Nine
month period ended
September 30, 1998 -- -- -- -- -- 704,404 704,404
--------- --------- ---------- ---------- ---------- ---------- ----------
Balance at September 30, 1998 -- $ -- 9,129,921 $ 9,130 $1,148,077 $1,568,349 $2,725,556
========= ========= ========== ========== ========== ========== ==========
The accompanying notes are an integral part of the financial statements.
5
</TABLE>
<PAGE>
ORALABS HOLDING CORP. AND CONSOLIDATED SUBSIDIARIES
---------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Three Months
Ended Sept 30, Ended Sept 30,
1998 1997
---- ----
Cash Flows from Operating Activities:
Net income $ 222,390 $ 246,230
Adjustments to reconcile net
income to net cash used
in operating activities
Depreciation 17,733 11,607
Increase (decrease) in accounts
payable and accrued expenses (36,043) 39,051
(Increase) in accounts receivable (106,755) (202,400)
(Increase) in inventory (405,605) (54,633)
Stock issued for services 11,456 --
Other, net 70,997 (8,134)
--------- ---------
Net Cash Provided by (Used in)
Operating Activities (225,827) 31,721
--------- ---------
Cash Flows from Investing Activities:
(Acquisitions) of property and
equipment (123,971) (5,222)
--------- ---------
Net Cash (Used in) Investing
Activities (123,971) (5,222)
--------- ---------
Cash Flows from Financing Activities:
Common stock issued 2,200 --
--------- ---------
Net Cash Provided by Financing
Activities 2,200 --
--------- ---------
Increase (decrease) in cash (347,598) 26,499
Cash, Beginning of Period 610,841 756,824
--------- ---------
Cash, End of Period $ 263,243 $ 783,323
========= =========
Interest Paid $ -- $ --
========= =========
Income Taxes Paid $ 161,333 $ 143,233
========= =========
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
ORALABS HOLDING CORP. AND CONSOLIDATED SUBSIDIARIES
---------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended Nine Months Ended
Sept 30, 1998 Sept 30, 1997
------------- -------------
Cash Flows from Operating Activities:
Net income $ 704,404 $ 705,817
Adjustments to reconcile net
income to net cash used
in operating activities
Depreciation 49,896 33,290
Increase (decrease)in accounts
payable and accrued expenses (89,378) 34,308
(Increase) in accounts
receivable (75,561) (195,385)
Decrease (increase) in inventory (1,146,146) 14,057
Stock issued for services 11,456 340,000
Other, net 14,307 (41,367)
----------- -----------
Net Cash Provided by Operating
Activities (531,022) 890,720
----------- -----------
Cash Flows from Investing Activities:
(Acquisitions) of property and
equipment (231,533) (27,262)
----------- -----------
Net Cash Provided by (Used in)
Investing Activities (231,533) (27,262)
----------- -----------
Cash Flows from Financing Activities:
Dividends paid -- (715,143)
Common stock issued 2,200 514,609
----------- -----------
Net Cash Flows from Financing
Activities 2,200 (200,534)
----------- -----------
Increase (Decrease) in cash (760,355) 662,924
Cash, Beginning of Period 1,023,598 120,399
----------- -----------
Cash, End of Period $ 263,243 $ 783,323
=========== ===========
Interest Paid $ -- $ --
=========== ===========
Income Taxes Paid $ 479,411 $ 143,233
=========== ===========
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
ORALABS HOLDING CORP. AND CONSOLIDATED SUBSIDIARIES
---------------------------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1998 and 1997
(1) Organization
Oralabs Holding Corp. (OHC or the "Company"), a Colorado corporation, was
formed in June 1997. Effective August 22, 1997, SSI Capital Corp. (SSI)
merged into Oralabs Holding Corp. and the outstanding shares of SSI were
converted to shares of OHC on a one for two basis. All references to common
stock in the Company's financial statements have been retroactively
adjusted for the merger and the one for two reduction in shares
outstanding.
Oralabs, Inc. (ORALABS), a Colorado corporation was formed in 1990. ORALABS
is in the business of manufacturing and distributing lip balm, fresh breath
and other products. ORALABS is a wholly owned subsidiary of OHC.
OL Sub Corp, a Colorado corporation, was formed in October 1997. As of
September 30, 1998, this wholly owned subsidiary of OHC was inactive.
The consolidated financial statements include the accounts of ORALABS and
the accounts of SSI since the date of the reverse acquisition and the
accounts of OL Sub Corp. since inception (see Note 3). All intercompany
accounts and transactions have been eliminated.
(2) Unaudited Statements
The balance sheet as of September 30, 1998, the statements of income and
the statements of cash flows for the three and nine month periods ended
September 30, 1998 and September 30, 1997 and the statement of changes in
stockholders' equity for the nine month period ended September 30, 1998
have been prepared by the Registrant without audit. In the opinion of
management, all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial position, results of
operations and cash flows at September 30, 1998, and for all periods
presented, have been made.
8
<PAGE>
ORALABS HOLDING CORP. AND CONSOLIDATED SUBSIDIARIES
---------------------------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1998 and 1997
(3) Business Combination
Effective May 1, 1997, SSI and ORALABS completed a business combination
whereby ORALABS became a wholly owned subsidiary of SSI. The transaction
has been accounted for as a reverse acquisition. The net monetary assets of
SSI at the time of the reverse acquisition of approximately $161,849 have
been accounted for as issuance of stock and additional paid-in capital.
(4) Income Taxes
Prior to completion of the business combination, ORALABS had elected to be
taxed under Subchapter S of the Internal Revenue Code. The election was
automatically terminated effective May 1, 1997. No provision for income
taxes was recorded prior to May 1, 1997 since shareholders of ORALABS
included the net income from the company on their personal returns and were
responsible for the payment of the related income taxes.
(5) Income Per Share Information
Basic income per share was computed using the weighted average shares
outstanding for the respective periods. Diluted income per share for the
three and nine month periods ended September 30, 1998 was computed giving
effect to the 497,800 dilutive options outstanding exercisable at $1.00 per
share, with an approximate market value of $2.97 per share (as of September
30, 1998), summarized as follows:
For the Three Month Period Ended September 30, 1998
---------------------------------------------------
Income Shares Per Share
(Numerator) (Denominator) Amount
----------- ------------- ------
Basic Income per Share:
Income available to
Common Stockholders $ 222,390 9,129,921 $ .02
Effect of Dilutive
Securities:
Options -- 330,191
--------- ---------
Diluted Income Per Share:
Income available to
Common Stockholders $ 222,390 9,460,112 $ .02
--------- --------- -------
9
<PAGE>
ORALABS HOLDING CORP. AND CONSOLIDATED SUBSIDIARIES
---------------------------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1998 and 1997
(5) Income Per Share Information, Continued
For the Nine Month Period Ended September 30, 1998
--------------------------------------------------
Income Shares Per Share
(Numerator) (Denominator) Amount
----------- ------------- ------
Basic Income per Share:
Income available to
Common Stockholders $ 704,404 9,129,921 $ .08
Effect of Dilutive
Securities:
Options -- 330,191
--------- ---------
Diluted Income Per Share:
Income available to
Common Stockholders $ 704,404 9,460,112 $ .07
========= ========= -------
The computation of the dilutive shares added to the denominator according
to the provisions of the Financial Accounting Standards Board Statement
#128 is summarized as follows:
Assumed approximate market value per share of $2.97 (as of September
30, 1998), less exercise price of $1.00 per share, divided by $2.50
per share times 497,800, the number of dilutive options outstanding,
equals 330,191 shares.
As of September 30, 1997, there were no dilutive options outstanding, and
therefore basic and diluted income per share computations were identical.
10
<PAGE>
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION
The following discussion of the financial condition and results of
operations of the Company relates to the three (3) and nine (9) months ended
September 30, 1998 and 1997, and should be read in conjunction with the
financial statements and notes thereto included elsewhere in this Report.
Forward-Looking Statements.
- ---------------------------
Certain statements in this Report are forward-looking, and from time to
time, the Company may publish forward-looking statements relating to such
matters as anticipated financial performance, business prospects, technological
developments, new products, research and development activities and similar
matters. Actual results of future events could differ materially from
anticipated results or other expectations expressed in the Company's
forward-looking statements. Among the factors that could cause actual results
and the Company's experience to differ are the timely availability and
acceptance of new products, the impact of competitive products and pricing and
the lack of long-term contracts with distributors and purchasers, as well as the
risk factors discussed in the Company's most recently filed Form 10-K.
Results of Operations.
- ----------------------
For the Nine months ending September 30, 1998 as compared with the Nine months
ending September 30, 1997.
- --------------------------------------------------------------------------------
Sales increased $912,209 (21%). We attribute this to both additional income
generated from a management service contract for the marketing and distributing
of products not manufactured in-house and growth in export sales.
Gross profit increased $243,582 (10%). The above increase in sales was partially
offset by a small decrease in gross profit margin.
Salaries paid in cash increased by $198,596 (48.8%). This was due to an increase
in salaries paid for additional staffing in sales and engineering ($39,131) as
well as increased pay for general administration ($159,465). For the nine month
period ending September 30, 1997, salaries also included a nonrecurring event by
which 340,000 shares of stock, valued at $340,000, were issued on January 1,
1997 to two (2) employees of OraLabs, Inc., for services in the areas of human
resources and investor relations concerning the Company's entry into the public
marketplace. As a result, total salaries for the nine months ended September 30,
1998 were $141,404 (19%) lower than that for the comparable period in 1997.
Rent increased $63,250 (128%). This was the result of additional rent incurred
to lease a second warehouse facility.
Commissions decreased by $28,588 (23%). We attribute this to increased in-house
sales predominately in the first quarter of 1998.
Research & Development increased $36,484 (642%). We attribute this to marketing
research for VitaSpray(TM) (a proposed line of spray vitamin products)
predominately in the first quarter of 1998. The Company subsequently decided not
to proceed with production of those products.
11
<PAGE>
Other Operating Expenses increased by $227,582 (41%). We attribute this to the
hiring of consultants and advertising expenses for the marketing of recently
developed nutritional supplements and, additionally, to increased travel abroad
to expand international business.
Provision for Income Taxes increased $80,598 (29%). We attribute this to
OraLabs, Inc. having no corporate tax obligations until May 1, 1997 (corporate
net income was passed through to its stockholders through April 30, 1997), as it
was an S Corporation until that date.
Net Income remained approximately the same, although diluted income per share
increased by $0.01 (17%).
For the three months ending September 30, 1998 as compared with the three months
ending September 30, 1997.
- --------------------------------------------------------------------------------
Sales increased $257,604 (17%). We attribute this to both additional income
generated from a management service contract for the marketing and distributing
of products not manufactured in-house and growth in export sales.
Gross profit increased $122,189 (15%) as a result of the additional sales.
Salaries increased $87,742 (61%). We attribute this to salaries paid for
additional staffing in sales and engineering as well as increased pay for
general administration of $49,314.
Rent increased $33,000 (200%). This was the result of additional rent incurred
to lease a second warehouse facility.
Other Operating Expenses increased by $64,103 (32%). We attribute this to the
hiring of consultants and advertising for the marketing of recently developed
nutritional supplements.
Net Income decreased by $23,840 (10%), while basic income per share and diluted
income per share decreased by $0.01 (33%).
Liquidity and Capital Resources.
- --------------------------------
Balance Sheet as of September 30, 1998 compared to December 31, 1997
- ---------------------------------------------------------------------
Cash decreased $760,355. We attribute this, after increased cash from earnings,
to purchases of increased inventory to support launch of a nutritional
supplements line.
Property and Equipment increased $181,637, primarily as a result of modifying
and adding equipment to increase manufacturing efficiency and capacity.
Inventory increased $1,146,146. We attribute this to purchases to support launch
of a nutritional supplements line and to significant returns of cough and cold
products from a new customer.
Retained earnings increased $704,404. We attribute this to increased revenue
from operations.
12
<PAGE>
Trends
- ------
The Company's third quarter sales would have improved by nearly 47% if not for
returns of $439,667 predominantly from zinc products and other cough and cold
items which were sold in fourth quarter 1997. The Company is in the process of
phasing out zinc products but will continue to sell sore throat products. The
Company does not anticipate any additional material cough and cold returns and
expects product returns to return to its customary level of approximately 2% of
sales for the foreseeable future. The Company's fourth quarter is expected to
show growth with the addition of nutritional supplement sales and the Company's
new relationship with the 3,500 store General Nutrition Centers, as announced in
a press release on August 4, 1998. The Company has chosen to pursue a
nutritional supplement business in place of initiating a line of spray vitamins,
VitaSpray(TM), which the Company decided not to pursue. The Company will also
pursue selling nutritional supplements to its mass merchandising customers. The
Company purchased inventory and incurred other operating expenses in the second
and third quarters to initiate its line of nutritional supplements.
The Company's core business of breath fresheners and lip balms remains strong.
Ice Drops(R) sour drops have proven to be a successful product launch through
the test marketing stage. Based on this success, the Company has expanded market
penetration into Walmart(R) and 7-Eleven(R). The Company's lip balms business
continues to expand with the addition of K-Mart(R) and 7-Eleven(R) as customers.
7-Eleven(R) has added three different OraLabs' products to its stores. Also,
additional lip balm sales are being generated through a number of new private
label customers.
Impact of Inflation
- -------------------
The Company's financial condition has not been affected by the modest
inflation of the recent past. Many of the Company's products are very low cost,
impulse items (under $0.99 cents to consumers), which the Company believes would
not be materially affected if higher inflation should occur. To the extent that
the Company's product line consists of higher priced items, the Company does not
know how inflation will affect revenues, although the Company believes that
sales of its higher priced products, to the extent such products are considered
to be nutritional, or symptom oriented products, will not be materially affected
by inflation. Inflation could increase operational costs of the Company to an
extent determined by such levels of inflation.
Year 2000
- ---------
The Company uses "off the shelf" software that will be Year 2000 compliant with
the current upgrade that is now available at a nominal cost. The Company
anticipates purchasing and using this upgrade by the end of first quarter 1999.
The Company does not believe that it has any other internal Year 2000 compliance
issues. The Company will be sending out a survey to its major customers and
suppliers to establish their Year 2000 readiness. This survey is projected to be
completed by the end of first quarter 1999. A contingency plan should major
customers or suppliers not be Year 2000 compliant has not yet been formalized.
This contingency plan is projected to be completed by the end of first quarter
1999.
13
<PAGE>
PART II - OTHER INFORMATION
Item No. 1. Legal Proceedings. None.
Item No. 2. Changes in Securities. None.
Item No. 3. Defaults Upon Senior Securities. None.
Item No. 4. Submission of Matters to a Vote of Security Holders. None.
Item No. 5. Other Information. None.
Item No. 6. Exhibits and Reports on Form 8-K.
(a)
(27.1) Financial Data Schedule for nine months ended September 30, 1998
(27.2) Amended Financial Data Schedule for nine months ended September 30,
1997
(b) There were no reports on Form 8-K filed during the quarter reported upon in
this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ORALABS HOLDING CORP.
By: /s/ Gary Schlatter
--------------------------------------
Gary Schlatter, President
By: /s/ Emile Jordan
--------------------------------------
Emile Jordan, Chief Financial Officer
DATED: November 16, 1998
14
<PAGE>
EXHIBIT INDEX
(27.1) Financial Data Schedule for nine months ended September 30, 1998
(27.2) Amended Financial Data Schedule for nine months ended September 30,
1997
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF ORALABS HOLDING CORP. AND CONSOLIDATED SUBSIDIARIES
(SEPTEMBER 30, 1998) AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 263243
<SECURITIES> 0
<RECEIVABLES> 786826
<ALLOWANCES> (24597)
<INVENTORY> 1745416
<CURRENT-ASSETS> 2916260
<PP&E> 616756
<DEPRECIATION> (220387)
<TOTAL-ASSETS> 3312629
<CURRENT-LIABILITIES> 587073
<BONDS> 0
0
0
<COMMON> 9130
<OTHER-SE> 2716426
<TOTAL-LIABILITY-AND-EQUITY> 3312629
<SALES> 5336213
<TOTAL-REVENUES> 5372651
<CGS> 2556560
<TOTAL-COSTS> 2556560
<OTHER-EXPENSES> 1748768
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1067322
<INCOME-TAX> 362918
<INCOME-CONTINUING> 704404
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 704404
<EPS-PRIMARY> .08
<EPS-DILUTED> .07
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF ORALABS HOLDING CORP. AND CONSOLIDATED SUBSIDIARIES
(SEPTEMBER 30, 1997) AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 783322
<SECURITIES> 0
<RECEIVABLES> 640115
<ALLOWANCES> (52261)
<INVENTORY> 436927
<CURRENT-ASSETS> 1868451
<PP&E> 302818
<DEPRECIATION> (151024)
<TOTAL-ASSETS> 2020395
<CURRENT-LIABILITIES> 435267
<BONDS> 0
0
0
<COMMON> 9124
<OTHER-SE> 1576004
<TOTAL-LIABILITY-AND-EQUITY> 2020395
<SALES> 4424004
<TOTAL-REVENUES> 4446352
<CGS> 1887934
<TOTAL-COSTS> 1887934
<OTHER-EXPENSES> 1570280
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 988138
<INCOME-TAX> 282320
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