U.S. 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: December 31, 1998
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT
For the transition period from ______________to _______________
Commission file number: 0-24217
RIGL CORPORATION
______________________________
(Exact name of small business issuer as specified in its charter)
Nevada 85-0206668
_____________________________________________________________________________
(State or other jurisdiction (IRS Employer Identification No.)
of incorporation)
4840 East Jasmine Street, Suite 105, Mesa, Arizona 85205
_____________________________________________________________________________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (602) 654-9646
N/A
_____________________________________________________________________________
(Former name of former address, 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. Yes [ X ]
No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 12,547,770 as of
January 27, 1999.
Transitional Business Disclosure Format (check one): YES [ ] NO [ X ]
<PAGE>
RIGL CORPORATION
INDEX TO FORM 10-QSB
_____________________________
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
Page
Number
Consolidated Balance Sheets
as of December 31, 1998 and September 30, 1998 3
Consolidated Statements of Operations
for the three months ended December 31, 1998 and 1997 4
Consolidated Condensed Statements of Cash Flows
for the three months ended December 31, 1998 and 1997 5
Notes to Consolidated Financial Statements 6-10
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations 11-12
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings 13
Item 2 - Changes in Securities and Use of Proceeds 13
Item 3 - Defaults Upon Senior Securities 13
Item 4 - Submission of Matters to a Vote
of Security Holders 13
Item 5 - Other Information 13
Item 6 - Exhibits and Reports on Form 8-K 13
Signatures 14
<PAGE>
RIGL CORPORATION
CONSOLIDATED BALANCE SHEETS
December 31, September 30,
1998 1998
____________ _____________
(Unaudited)
ASSETS
- ------
Current assets:
Cash and cash equivalents $ 250,583 $ 1,194,139
Accounts receivable 95,815 97,122
Other receivables 3,202 2,926
Prepaid expenses 4,188 1,949
____________ ____________
Total current assets 353,788 1,296,136
Property and equipment 461,864 307,235
Less accumulated depreciation (127,409) (98,992)
____________ ____________
Net property and equipment 334,455 208,243
Other assets:
Organization costs 1,560 1,560
Shareholder loans 63,000 68,000
Other interest bearing loans 218,000 75,000
Proprietary technology 380,413 797,663
Technology rights 28,750 14,375
Deposits 62,270 62,271
Goodwill 152,295 -
Less accumulated amortization (3,240) (624)
____________ ____________
Net other assets 903,048 1,018,245
____________ ____________
Total assets $ 1,591,291 $ 2,522,624
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 128,086 $ 45,717
Accrued payroll expenses 76,728 123,788
_____________ ____________
Total current liabilities 204,814 169,505
Commitments and contingencies
Stockholders' equity:
Preferred stock; $.001 par value;
authorized 15,000,000 shares,
Series A, 3,000,000 authorized:
No shares issues and outstanding
at December 31, 1998 and September 30, 1998 - -
Series A.1, 3,000,000 authorized:
No shares issues and outstanding
at December 31, 1998 and September 30, 1998 - -
Common stock; $.001 par value;
authorized 50,000,000 shares; issued
and outstanding:
12,447,770 at December 31, 1998
and 12,403,634 shares at
September 30, 1998, respectively 12,448 12,404
Additional paid-in capital 6,197,096 6,547,141
Treasury stock, at cost, 679,292 shares (69,822) (69,822)
Accumulated deficit (4,753,245) (4,136,604)
__________ ___________
Total stockholders' equity 1,386,477 2,353,119
__________ ___________
Total liabilities and
stockholders' equity $ 1,591,291 $ 2,522,624
========== ===========
See accompanying notes to these consolidated financial statements.
<PAGE>
RIGL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
___________ ___________
December 31, December 31,
1998 1997
___________ ___________
Revenue:
Collection fees $ 110,140 $ 161,188
Revenues from medical practices 134,763 -
Corporate revenue 45,171 1,550
Other income 13 32
___________ ___________
Total revenue 290,087 162,770
Direct expense - -
___________ ___________
Gross profit 290,087 162,770
General & administrative expenses 882,397 599,608
Depreciation & amortization expense 31,033 26,936
___________ ___________
Net operating income (loss) (623,343) (463,774)
Interest expense 156 26
Interest (income) (6,908) (15,869)
___________ ___________
Income before taxes $ (616,591) $ (447,931)
Provision for income taxes 50 -
___________ ___________
Net income (loss) $ (616,641) $ (447,931)
=========== ===========
Basic EPS $ (0.05) $ (0.05)
=========== ===========
Diluted EPS $ (0.05) $ (0.05)
=========== ===========
See Accompanying Notes to these Consolidated Financial Statements
<PAGE>
RIGL CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
Three Months Ended
___________ ___________
December 31, December 31,
1998 1997
___________ ___________
CASH FLOWS PROVIDED BY (USED IN)
OPERATING ACTIVITIES:
Net cash provided by (used in)
operating activities $ (694,506) $ (342,640)
___________ ___________
CASH FLOWS PROVIDED BY (USED IN)
INVESTING ACTIVITIES:
Capital expenditures (154,629) (18,690)
Expenditures to acquire intangible assets (16,671) (10,000)
Expenditures to acquire/
develop technology rights (82,750) -
___________ ___________
Net cash provided by (used in)
investing activities (254,050) (28,690)
___________ ___________
CASH FLOWS PROVIDED BY (USED IN)
FINANCING ACTIVITIES:
Payments on shareholder loans 5,000
Proceeds from issuance of common stock - 800
Proceeds from issuance of preferred stock - 1,599,622
___________ ___________
Net cash provided by (used in)
financing activities 5,000 1,600,422
___________ ___________
Net increase(decrease) in cash
and cash equivalents (943,556) 1,229,092
Cash and cash equivalents at
beginning of period 1,194,139 838,809
___________ ___________
Cash and cash equivalents at end of period $ 250,583 $ 2,067,901
=========== ===========
See accompanying notes to these consolidated financial statements.
<PAGE>
RIGL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - ORGANIZATION AND NATURE OF BUSINESS
a. Organization of business
Nuclear Corporation of New Mexico ("NCNM") was incorporated in December 1968
for the purpose of mineral, oil and gas exploration. The initial amount
raised for exploration activities was $300,000, and NCNM remained active in
this business until 1974. Since 1974, NCNM has been substantially inactive,
receiving only residual income from over-riding royalty interest in oil and
gas leases.
In April, 1994 NCNM moved its domicile from the state of New Mexico to Nevada.
From that period until its combination with Renaissance Center, Inc.
("RenCen") NCNM remained substantially inactive.
On June 27, 1997, in an agreement and plan of merger, all of the common stock
of RenCen, a Nevada corporation, was acquired by NCNM. In the agreement, one
share of common stock of NCNM was received by the shareholders of RenCen for
each share of RenCen's common stock held. In addition, every one share of
Series A preferred stock of RenCen was exchanged for one share of Series A
preferred stock of NCNM. In connection with the merger agreement, NCNM
changed its name to Renaissance International Group, Ltd. ("Renaissance").
The merger was accounted for similarly to a pooling of interests.
The management of RenCen instituted a 1 for 2 reverse split of its common
stock held by management prior to the combination with NCNM. Subsequently,
RenCen decreased the number of authorized shares of common stock, par value
$.001, from 50 million to 25 million shares. In addition, the number of
shares issued and outstanding were reduced on the basis of 1 for 2 with any
scrip shares created as a result of the reverse rounded up to the next whole
share. No reduction or alterations were made to the preferred shares of
RenCen. On June 22, 1998, the shareholders approved a change of the Company
name to RIGL Corporation ("the Company" or "RIGL") and increased the
authorized shares of the Company to 50 million shares.
On September 1, 1998, RIGL Corporation purchased 100% of the common stock of
Medical Resource Systems, Inc. in exchange for 100,000 shares of RIGL
Corporation common stock. This business combination was accounted for as a
pooling of interests.
On November 10, 1998, RIGL Corporation purchased all of the outstanding common
stock of Mountain Office Management, Inc. in exchange for 300,000 shares of
the Company's common stock.
b. Nature of business
RIGL is in development of an intelligent and intuitive information access
system, which the Company is applying primarily to the healthcare industry.
The system combines technology with sound business practices in the support of
medical information management and controlling administrative costs. The
technology is a web centric, object-oriented, modular system that provides
medical practices with a user friendly, cost effective, and comprehensive
"real-time" record system. RIGL intends to assume total responsibility of
all administrative activities through a facilities management approach.
RIGL has two wholly-owned subsidiaries who provide these services to the
healthcare industry, RIGL Technologies, Inc. ("RT") and RIGL Medical Systems,
Inc. ("RMS").
RT
__
RT is the development arm of the Company. RT has committed itself to the
development of revolutionary technologies and innovative system solutions for
the medical and multimedia/entertainment industries. RT is developing and
acquiring a palette of interrelated technologies to provide acquisition,
management, and retrieval of information.
RT is working on the design and implementation of the Asset Management and
Information Retrieval Environment ("AMIRE (TM)"). AMIRE(TM) will be developed
as a core software engine to provide information management for complex data.
AMIRE(TM) will be designed to provide a suite of services related to the
management of media rich and legacy enterprise information. AMIRE(TM) will
operate across geographic boundaries and provide the end-user with a fully
featured, integrated patient records system.
RMS
___
RMS' primary objective is to create a bridge between the Medical AMIRE(TM)
development team and the ultimate end users. RMS will accomplish this by
contracting with physician practices that believe improved medical information
management could improve the business aspects of their practices and who are
looking to advance into the latest medical information management technology.
When contracting with a physician practice, RMS will typically enter into a
Management Services Agreement ("MSA") with the practice. Pursuant to the MSA,
RMS will manage the administrative functions and medical information resources
of the practice in all respects. The practice will be solely responsible for
the rendering of medical services. RMS has targeted its primary contracting
efforts on physician practices located within the State of Arizona.
Acquisitions
The Company is actively pursuing acquisitions in the medical industry.
Initially, it has targeted physician groups, billing and collection companies,
outpatient surgical centers, skilled nursing facilities, and medical specialty
organizations. It is management's intention to continue to examine all
industries for possible applications of its proprietary technology as well as
looking for opportunities to acquire other synergistic technologies.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Principles of Consolidation
The consolidated financial statements include the accounts of the Company and
its wholly owned subsidiaries. All material intercompany transactions and
balances have been eliminated in consolidation.
b. Accounting Method
The Company recognizes income and expenses based upon the accrual method of
accounting. No allowances have been made for doubtful accounts.
c. Unaudited Information and Basis of Presentation
The consolidated balance sheet as of December 31, 1998 and statements of
operations and condensed cash flows for all periods included in the
accompanying financial statements have not been audited. In the opinion of
management these financial statements include all normal and recurring
adjustments necessary for a fair presentation of such financial information.
The results of operations for the interim periods are not necessarily
indicative of the results of operations to be expected for the full year.
The financial information included herein has been prepared pursuant to the
rules and regulations of the Securities and Exchange Commission. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
omitted pursuant to such rules and regulations. The interim financial
information and the notes thereto should be read in conjunction with the
audited financial statements for the fiscal years ended September 30, 1998,
September 30, 1997 and September 30, 1996 which are included in the Company's
1998 Annual Report to Stockholders.
d. Property and Equipment
Property and equipment are stated at cost. Depreciation is computed using the
straight-line method over the useful lives of the assets as follows:
Furniture and equipment 5-7 years
Automobiles 5 years
Leasehold Improvements **
**estimated useful life or length of lease, whichever is shorter.
e. Proprietary Technology
The Company capitalizes production costs incurred to further develop a
computer software product with established technological feasibility.
Amortization of these costs has not been recorded as sales of the product have
not begun in earnest.
f. Income Taxes
The Company, a C Corporation, accounts for income taxes in accordance with
Statement of Financial Accounting Standards No. 109 (Accounting for Income
Taxes).
As of September 30, 1998, the Company has approximately $3,369,000 of net
operating loss carry forwards which can be used to offset future taxable
income.
g. Management's 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
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
h. Recent Accounting Pronouncements
In June 1997, SFAS No. 130, "Reporting Comprehensive Income" ("SFAS 130") was
issued. SFAS 130 establishes standards for the reporting of comprehensive
income and its components in a full set of general-purpose financial
statements for periods beginning after December 15, 1997. Reclassification of
financial statements for earlier periods for comparative purposes is required.
In June 1997, SFAS No. 131, "Disclosures about Segments of an Enterprise and
Related Information" ("SFAS 131") was issued. SFAS 131 revises information
regarding the reporting of operating segments. It also establishes standards
for related disclosures about products and services, geographic areas and
major customers.
The Company adopted SFAS 130 and SFAS 131 in the first quarter of fiscal 1999
and does not expect such adoptions to have a material effect on the
consolidated financial statements and footnotes.
NOTE 3 - SHAREHOLDERS' EQUITY
During the three months ended December 31, 1998, the Company completed the
following stock transactions from its authorized but unissued capital shares:
The Company issued 300,000 shares in exchange for all the issued and
outstanding stock of Mountain Office Management Systems, Inc.
The Company revised the agreement for the 1998 North American rights
to the Medasys System by revoking a portion of the transaction. In
December 1998, the Company rescinded the 255,864 shares of common stock
issued, which was originally valued at $500,000. In January 1999, the
Company issued 100,000 shares of common stock for the exclusive North
American rights effective January 1, 1999.
During the year ended September 30, 1998, the Company completed the following
stock transactions from its authorized but not unissued capital shares:
Payments in the amount of $3,011,835 were received in Series A
preferred stock subscriptions and common stock subscriptions.
Costs and expenses relating to the sale of these shares totaled
$355,719.
The Company issued 133,000 common shares to vendors for services
rendered and 255,864 for the exclusive North American rights to the
Medasys System. These issuances were valued at $633,000, of which
$133,000 was charged to operations and $500,000 was capitalized as
proprietary technology.
The Company acquired 679,292 shares of its common stock from two
Board members. 400,000 shares of this treasury stock were gifted
back to the Company for no consideration. The remaining shares were
purchased by the Company for $69,822.
Effective October 22, 1997 warrants were issued to existing stockholders to
acquire 2,666,920 common shares at a price of $2.00 per share and 750,000
common shares at a price of $2.30 per share. The warrants expire on October
30, 1999. The Company granted certain of its executive officers and other
individuals options to purchase shares of the Company's common stock. At
December 31, 1998 options to purchase 1,125,474 shares of common stock were
outstanding.
NOTE 4 - EARNINGS PER SHARE
In February 1997 the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings Per
Share," which is effective for financial statements for both interim and
annual periods ending after December 15, 1997. The new standard eliminates
primary and fully dilutive earnings per share and requires presentation of
basic and diluted earnings per share with disclosures of the methods used to
compute the per share amounts.
Basic earnings per share excludes dilution and is computed by dividing income
available to common shareholders by the weighted-average common shares
outstanding for the period. Diluted earnings per share reflects the weighted-
average common shares outstanding plus the potential effect of securities or
contracts which are convertible to common shares such as options, warrants,
and convertible debt and preferred stock. The adoption of this standard is not
expected to have a material impact on earnings per share of the Company. In
computing diluted EPS, the average stock price for the period is used in
determining the number of shares assumed to be purchased from exercise of
stock options rather than the higher of the average or ending stock price as
used in the computation of fully diluted EPS.
The following is a reconciliation between the components of the basic and
diluted net income (loss) per share calculations for the periods presented
below:
<PAGE>
<TABLE>
<CAPTION>
Three Months Ended:
December 31, 1998 December 31, 1997
_________________________________ _______________________________
Income Shares Per Share Income Shares Per Share
Amount Amount
__________ _________ __________ _________ _________ _________
<S> <C> <C> <C> <C> <C> <C>
BASIC INCOME (LOSS)
PER SHARE
Net income (loss) $(616,641) 12,553,634 $ (0.05) $(447,931) 9,261,674 $ (0.05)
========= ========
EFFECT OF DILUTIVE
SECURITIES
Stock options/warrants -0- -0- -0- -0-
__________ _________ _________ _________
DILUTED NET INCOME (LOSS)
PER SHARE
Net income (loss) plus
assumed exercises
and conversions $(616,641) 12,553,634 $ (0.05) $(447,931) 9,261,674 $ (0.05)
========= ========== ========== ========== ========== ========
</TABLE>
NOTE 5 - SUBSEQUENT EVENTS
In January 1999, the Company and Claims Direct, Inc. ("CDI") entered into a
merger agreement, whereby CDI will become a wholly-owned subsidiary of the
Company. Each shareholder of CDI shall receive one RIGL Corporation common
share for every two and one-half shares of CDI common stock. Finalization of
the merger is contingent upon the approval of 51% of the CDI shareholders and
the filing and approval by the Securities and Exchange Commission of a
Registration Statement with respect to the existing CDI shareholders.
<PAGE>
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL POSITION AND LIQUIDITY
The Company's current ratio was 1.7 to 1 at December 31, 1998. Cash and cash
equivalents decreased $943,556 to $250,583 at December 31, 1998 from
$1,194,139 at September 30, 1998. The decrease in cash and cash equivalents
was primarily due to cash used in operations and expenditures for long lived
assets.
The Company has successfully raised capital financing during the years ended
September 30, 1998 and 1997, respectively. Additional capital will be
required for the Company to fully expand its operations into all of the
markets. The amount of the additional capital that may be required is
dependent upon, among other things, the expansion of existing financial
resources, and the availability of other financing on favorable terms and
future operating results. Therefore, the Company's ultimate success may
depend upon its ability to raise additional capital or debt financing. There
can be no assurance that additional capital can be raised or obtained as
needed or that the Company can ultimately fulfill its business objectives.
The Company does not anticipate paying dividends on its Common Stock in the
foreseeable future.
Certain matters contained herein are forward looking statements that involve
risks and uncertainties that could cause actual results to differ materially
from those in the forward looking statements. Assumptions relating to these
forward looking statements involve judgments with respect to, among other
things, future economic, competitive and market conditions and future business
decisions, all of which are difficult or impossible to predict accurately and
many of which are beyond control of the Company.
RESULTS OF OPERATIONS
Total Revenue.
Total revenue increased $127,317 to $290,087 during the three months ended
December 31, 1998 as compared to the $162,770 in the same period of fiscal
1998. These increases are due to the consulting services provided to
physician practices. These services began in the fourth quarter of fiscal
1998. The remaining increases were due to consulting services provided by
Renaissance Center, Ltd. in the entertainment and multimedia industries.
These increases were offset by a decrease in the billing and collection fees
generated. These decreases were due to a partial reduction in the billing
services performed to one of their clients.
Management has recognized that recent developments in data storage and optical
transmission capabilities have greatly increased the capability to transfer,
store and retrieve data. Hierarchical communication languages can be used to
develop software applications which will make real-time access of this
information a reality as well as adding artificial intelligence to core
operating systems.
These recent developments, combined with the Company's own state of the art
proprietary technology have enabled it to look at alternative applications.
Management believes that the health services industry may provide this
alternative. This industry, though technically advanced in equipment, relies
upon out-dated record keeping and retrieval methods. The Company is actively
pursuing acquisitions and affiliations in the medical industry. Initially it
has targeted physician groups, outpatient surgical centers, skilled nursing
facilities and medical specialty organizations. It is management's intention
to continue to examine all industries for possible applications of its
proprietary technology as well as looking for opportunities to acquire other
synergistic technologies.
Management believes that the billing and collection fees will remain constant
in fiscal 1999 and consulting services to physician practices will increase
significantly in fiscal 1999.
General & Administrative Expenses.
General & administrative expenses increased $282,789 to $882,397 during the
three months ended December 31, 1998 as compared to the $599,608 in the same
period of fiscal 1998. The increases in general & administrative expenses
relate to several key components to the future success of the Company. First
are the expenses incurred associated with research and development costs
related to the Company's proprietary technology. Additional costs are due to
increased sales and marketing efforts related to the Company's proprietary
technology. Finally, general & administrative expenses increased due to the
costs incurred in securing key management personnel for both the corporate
management and development programs.
The Company had forty three employees at December 31, 1998 compared to thirty
at September 30, 1998. These employees were dedicated to the development of
the AMIRE(TM) system and the enrollment and operation of physician practices.
Management anticipates additional employees will be hired as the Company
progresses through the development stage of the AMIRE(TM) system and enrolls
physician practices.
Depreciation & Amortization Expense.
Depreciation & amortization expense increased $4,097 to $31,033 during the
three months ended December 31, 1998 as compared to the $26,936 in the same
period of fiscal 1998. The increase in depreciation is due to the addition of
approximately $150,000 in property and equipment during fiscal 1999.
Management anticipates additional property and equipment will be required as
the Company progresses through the development stage of the AMIRE(TM) system.
The Company has approximately $380,000 capitalized as proprietary technology
as of December 31, 1998 and anticipates additional costs will be incurred to
develop the AMIRE(TM) systems. Amortization of these costs has not been
recorded as sales of the product have not begun in earnest.
Interest Income.
Interest income decreased $8,961 to $6,908 during the three months ended
December 31, 1998 as compared to the $15,869 in the same period of fiscal
1998. The decrease is due to the lower cash balances to invest in interest
earning accounts. These cash balances will be utilized in the future on the
development of the AMIRE(TM) system, therefore interest income could decrease
in future periods.
Income Taxes.
The provision for income taxes relates to minimum tax requirements in various
states that the Company does business. The Company has approximately
$3,400,000 of net operating loss carry forwards which can be used to offset
future taxable income.
Net Income (Loss) and Weighted Average Shares.
Net loss for the three months ended was $616,641 (or $0.05 per share) compared
to net loss of $447,931 (or $0.05 per share) for the prior year first quarter.
The weighted average number of shares outstanding for the three month period
ended December 31, 1998 and 1997 were 12,553,634 and 9,261,674 ,
respectively.
<PAGE>
RIGL CORPORATION
PART II
Item 1 Legal Proceedings
None
Item 2 Changes in Securities and Use of Proceeds
(a) Not applicable
(b) Not applicable
( ) Not applicable
Item 3 Defaults Upon Senior Securities
None
Item 4 Submission of Matters to a Vote of Security Holders
None
Item 5 Other Information
None
Item 6 Exhibits and Reports on Form 8-K
(a) Exhibit Index Page 15
(b) A Form 8-K was filed on October 16, 1998 announcing
the appointment of Eugene Starr to the Board of
Directors and the resignation of Walter Vogel.
A Form 8-K/A was filed on November 12, 1998
providing the required financial information of
the acquisition of Medical Resource Systems, Inc.
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereto duly
authorized.
February 11, 1999
RIGL CORPORATION
/s/ Kevin L. Jones
__________________
Kevin L. Jones
Title: Director and President
/s/ John A. Williams
__________________
John A. Williams
Title: Chief Financial Officer
<PAGE>
RIGL CORPORATION
INDEX TO EXHIBITS
Exhibit
Number Description
_____________________________________________________________________________
27 Financial Data Schedule
<PAGE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE>5
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 03-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1998
<PERIOD-END> DEC-31-1998
<EXCHANGE-RATE> 1
<CASH> 250,583
<SECURITIES> 0
<RECEIVABLES> 95,815
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 353,788
<PP&E> 461,864
<DEPRECIATION> 127,409
<TOTAL-ASSETS> 1,591,291
<CURRENT-LIABILITIES> 204,814
<BONDS> 0
0
0
<COMMON> 6,139,722
<OTHER-SE> 4,753,245
<TOTAL-LIABILITY-AND-EQUITY> 1,591,291
<SALES> 290,087
<TOTAL-REVENUES> 290,087
<CGS> 0
<TOTAL-COSTS> 913,430
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 156
<INCOME-PRETAX> 616,591
<INCOME-TAX> 50
<INCOME-CONTINUING> 616,641
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 616,641
<EPS-PRIMARY> 0.05
<EPS-DILUTED> 0.05
</TABLE>
