U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C.
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number 333-52721
MICRO INTERCONNECT TECHNOLOGY, INC.
(Name of Small Business Issuer as specified in its charter)
70 Horizon Drive,
Bedford, New Hampshire 03110
(Address of principal executive offices)
603-666-0206
(Registrants telephone no., including area code)
No Change
(Former name, former address, and former fiscal year, if
changed since last report.)
Securities registered pursuant to Section 12(b) of the Exchange Act: None
Securities registered pursuant to Section 12(g) of the Exchange Act: None
Check whether the Issuer (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act 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
Common Stock outstanding at March 31, 2000 - 1,182,550 shares of $.001
par value Common Stock.
MICRO INTERCONNECT TECHNOLOGY, INC.
[A Development Stage Company]
INDEX
PART I Financial Information
Item I Financial Statements
Accountants Reviews' Report 3
Condensed Balance Sheets -
March 31, 2000 and December 31, 1999 4
Condensed Statements of Operations -
three months ended March 31, 2000 and 1999 and
from inception on February 11, 1998 through
March 31, 2000 5
Condensed Statements of Cash Flows -
three months ended March 31, 2000 and 1999 and
from inception on February 11, 1998 through
March 31, 2000 6
Notes to Unaudited Condensed Financial Statements 7
Item 2 Management's Plan of Operations 12
PART II Other Information
Item 1 Legal Proceedings 13
Item 2 Changes in Securities 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
Signature page 13
2
<PAGE>
PART 1 FINANCIAL INFORMATION
Item 1 Financial Statements
ACCOUNTANTS' REVIEW REPORT
Board of Directors
MICRO INTERCONNECT TECHNOLOGY, INC.
Bedford, NH
We have reviewed the accompanying condensed balance sheet of Micro
Interconnect Technology, Inc. [a development stage company] as of March 31,
2000 and the related condensed statements of operations and cash flows for the
three months ended March 31, 2000 and for the period from inception on
February 11, 1998 through March 31, 2000. These financial statements are the
responsibility of the Company's management. All information included in these
financial statements is the representation of management of Micro Interconnect
Technology, Inc..
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review consists
principally of inquiries of Company personnel and analytical procedures
applied to financial data. It is substantially less in scope than an audit in
accordance with generally accepted auditing standards, the objective of which
is the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the condensed financial statements reviewed by us, in order
for them to be in conformity with generally accepted accounting principles.
/s/ Pritchett, Siler & Hardy
PRITCHETT, SILER & HARDY, P.C.
May 16, 2000
Salt Lake City, Utah
3
<PAGE>
MICRO INTERCONNECT TECHNOLOGY, INC.
[A Development Stage Company]
UNAUDITED CONDENSED BALANCE SHEETS
[See Accountants' Review Report]
ASSETS
March 31, December 31,
2000 1999
__________ ___________
CURRENT ASSETS:
Cash in bank $ 189,331 $ 167,272
Accounts receivable - 510
Accrued interest receivable 758 675
__________ ___________
Total Current Assets 190,089 168,457
__________ ___________
PROPERTY, PLANT AND EQUIPMENT, net 4,648 4,990
__________ ___________
OTHER ASSETS:
Refundable deposit 800 800
__________ ___________
Total Other Assets 800 800
__________ ___________
$ 195,537 $ 174,247
__________ ___________
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ - $ 7,052
Accounts payable - related party 70 70
Other accrued liabilities 11,215 2,244
__________ ___________
Total Current Liabilities 11,285 9,366
__________ ___________
STOCKHOLDERS' EQUITY:
Preferred stock, $.001 par value,
10,000,000 shares authorized,
no shares issued and outstanding - -
Common stock, $.001 par value,
50,000,000 shares authorized,
1,182,550 and 1,150,000 shares
issued and outstanding,
respectively 1,183 1,150
Capital in excess of par value 354,357 272,915
Deficit accumulated during the
development stage (171,288) (109,184)
__________ ___________
Total Stockholders' Equity 184,252 164,881
__________ ___________
$ 195,537 $ 174,247
__________ ___________
NOTE: The balance sheet at December 31, 1999 was taken from
the audited financial statements at that date and condensed.
The accompanying notes are an integral part of these
financial statements.
4
<PAGE>
MICRO INTERCONNECT TECHNOLOGY, INC.
[A Development Stage Company]
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
[See Accountants' Review Report]
For the Three
Months Ended From Inception
March 31, on February 11,
___________________ 1998 Through
2000 1999 March 31, 2000
_________ ________ _______________
SALES, net $ - $ - $ 6,995
COST OF SALES - - 4,635
_________ ________ _______________
Gross profit - - 2,360
_________ ________ _______________
OPERATING EXPENSES:
General and
administrative 16,809 1,520 48,127
Research and
development 47,069 - 134,364
_________ _________ _______________
Total Expenses 63,878 1,520 182,491
_________ _________ _______________
LOSS FROM
OPERATIONS (63,878) (1,520) (180,131)
OTHER INCOME
(EXPENSE):
Interest income 1,774 46 8,882
Interest expense - - (39)
_________ ________ _______________
1,774 46 8,843
_________ ________ _______________
LOSS BEFORE
INCOME TAXES (62,104) (1,474) (171,288)
CURRENT TAX
EXPENSE - - -
DEFERRED TAX
EXPENSE - - -
_________ ________ _______________
NET LOSS $ (62,104) $ (1,474) $ (171,288)
_________ ________ _______________
LOSS PER COMMON
SHARE $ (.05) $ (.00) $ (.16)
_________ ________ _______________
The accompanying notes are an integral part of these
financial statements.
5
<PAGE>
MICRO INTERCONNECT TECHNOLOGY, INC.
[A Development Stage Company]
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
[See Accountants' Review Report]
For the Three
Months Ended From Inception
March 31, on February 11,
___________________ 1998 Through
2000 1999 March 31, 2000
_________ ________ _______________
Cash Flows Provided by
Operating Activities:
Net loss $ (62,104) $ (1,474) $ (171,288)
Adjustments to
reconcile net loss
to net cash used by
operating activities:
Amortization expense - 50 486
Depreciation expense 342 - 944
Changes in assets and
liabilities:
Decrease in accounts
receivable 510 - -
(Increase) in accrued
interest receivable (83) - (758)
Increase (decrease)
in accounts payable (7,052) 985 -
Increase in accounts
payable - related
party - - 70
Increase in other
accrued liabilities 8,971 - 11,215
_________ ________ _______________
Net Cash (Used)
by Operating
Activities (59,416) (439) (159,331)
_________ ________ _______________
Cash Flows Provided by
Investing Activities:
Payments for
organization costs - - (486)
Payments for property,
plant and equipment - - (5,592)
Payments for refundable
asset - - (800)
_________ ________ _______________
Net Cash (Used)
by Investing
Activities - - (6,878)
_________ ________ _______________
Cash Flows Provided by
Financing Activities:
Proceeds from common
stock issuance 81,475 - 391,475
Payment of stock offering
costs - (465) (35,935)
_________ ________ _______________
Net Cash Provided
(Used) by Financing
Activities 81,475 (465) 355,540
_________ ________ _______________
Net Increase (Decrease)in
Cash 22,059 (904) 189,331
Cash at Beginning of Period 167,272 6,200 -
_________ ________ _______________
Cash at End of Period $ 189,331 $ 5,296 $ 189,331
_________ ________ _______________
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest $ - $ - $ 39
Income taxes $ - $ - $ -
Supplemental Schedule of Non-cash Investing and Financing
Activities:
For the Period Ended March 31, 2000
None
For the Period Ended March 31, 1999
None
The accompanying notes are an integral part of these
financial statements.
6
<PAGE>
MICRO INTERCONNECT TECHNOLOGY, INC.
[A Development Stage Company]
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization - Micro Interconnect Technology, Inc. (the
Company) was organized under the laws of the State of
Nevada on February 11, 1998. The Company is considered a
development stage company as defined in Statement of
Financial Accounting Standards (SFAS) No. 7. The Company
engages in the business of developing proprietary
technology to reduce the size of electronic devices that
link electronic components together and to make those
devices operate at higher speeds.
Condensed Financial Statements - The accompanying
financial statements have been prepared by the Company
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 March 31, 2000 and for all the periods presented have
been made.
Certain information and footnote disclosures normally
included in financial statements prepared in accordance
with generally accepted accounting principles have been
condensed or omitted. It is suggested that these
condensed financial statements be read in conjunction with
the financial statements and notes thereto included in
the Company's December 31, 1999 audited financial
statements. The results of operations for the periods
ended March 31, 2000 are not necessarily indicative of the
operating results for the full year.
Property and Equipment - Property and equipment are
stated at cost. Expenditures for major renewals and
betterments that extend the useful lives of property and
equipment are capitalized upon being placed in
service. Expenditures for maintenance and repairs are
charged to expense as incurred. Depreciation is computed for
financial statement purposes on a straight-line method
over the estimated useful lives of the assets.
Loss Per Share - The computation of loss per share is
based on the weighted average number of shares outstanding
during the period presented in accordance with Statement of
Financial Accounting Standards No. 128, "Earnings Per Share".
[See Note 6]
Cash and Cash Equivalents - For purposes of the statement of
cash flows, the Company considers all highly liquid debt
investments purchased with a maturity of three months or
less to be cash equivalents.
Accounting Estimates - 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, the disclosures of
contingent assets and liabilities at the date of the
financial statements, and the reported amount of
revenues and expenses during the reported period.
Actual results could differ from those estimated.
7
<PAGE>
MICRO INTERCONNECT TECHNOLOGY, INC.
[A Development Stage Company]
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
NOTE 2 - PROPERTY, PLANT AND EQUIPMENT
Property, Plant and Equipment consisted of the following at
March 31, 2000;
Office equipment $5,592
Less accumulated depreciation (944)
_________
$4,648
_________
During the three months ended March 31, 2000 depreciation
expense amounted to $342.
NOTE 3 - CAPITAL STOCK
Stock Options - On June 15, 1999, the Company granted
30,000 stock options under the 1998 Stock Option Plan (the
Plan). The Company has adopted Statement of Financial
Accounting Standards No. 123, "Accounting for Stock-Based
Compensation." The market value of the Company's common
stock was the same as the exercise price of the
options on the date of grant; accordingly, no compensation
cost has been recognized for the stock options.
Stock Option Plan - On February 17, 1998, the Board of
Directors of the Company adopted and the stockholders at
that time approved the 1998 Stock Option Plan (the Plan).
The plan provides for the granting of awards of up to
1,000,000 shares of common stock to sales representatives,
officers, directors, consultants and employees. The awards
can consist of stock options, restricted stock awards, deferred
stock awards, stock appreciation rights and other stock-based
awards as described in the plan. Awards under the plan will be
granted as determined by the board of directors. At
March 31, 2000, total options available to be granted
under the plan amounted to 970,000.
A summary of the status of the options granted under the
Company's stock option plan at March 31, 2000 is presented below:
March 31, 2000
____________________________
Weighted Average
Shares Exercise Price
_________ ________________
Outstanding at beginning
of period 30,000 $ 2.00
Granted - $ -
Exercised - $ -
Forfeited - $ -
Expired - $ -
_________ ________________
Outstanding at end of
period 30,000 $ 2.00
_________ ________________
Weighted average fair value
of options granted during
the year 30,000 $ 2.00
_________ ________________
8
<PAGE>
MICRO INTERCONNECT TECHNOLOGY, INC.
[A Development Stage Company]
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
NOTE 3 - CAPITAL STOCK [Continued]
A summary of the status of the options outstanding under the
Company's stock option plan at March 31, 2000 is presented below:
Options Outstanding Options Exercisable
_______________________________________ _______________________________
Average Weighted-
Range of Remaining Average
Exercise Number Weighted-Average Exercise Number Exercise
Prices Outstanding Contractual Life Price Exercisable Price
________ ___________ ________________ ________ ___________ ________
$2.00 30,000 7.0 years $2.00 - $2.00
________ ___________ ________________ ________ ___________ ________
Common Stock - During February 1998, in connection
with its organization, the Company issued 1,000,000 shares
of its previously authorized, but unissued common stock.
Total proceeds from the sale of stock amounted to $10,000 (or
$.01 per share).
During May 1999 the Company made a public stock offering
and issued 150,000 units of its previously authorized, but
unissued common stock. Each unit consists of one share
of common stock and two redeemable common stock
purchase warrants. Each warrant allows the holder to
purchase one share of common stock for $2.50; the warrants
are subject to adjustment in certain events and are
exercisable for a period of one year from the date of
the offering. The Company may redeem the warrants at a
price of $.01 per warrant, at any time beginning six
months after the date of the offering upon not less than 30
days prior written notice, if the closing bid price of the
Company's common stock on the NASDAQ Bulletin Board is at
least $3.00 per share for twenty consecutive trading days,
ending not earlier than five days before the warrants are
called for redemption. Gross proceeds from the sale of
stock amounted to $300,000 (or $2 per share). Stock
offering costs of $35,935 were offset against the proceeds
of the offering in capital in excess of par value.
During February and March 2000, proceeds of $81,475 ($2.50
per share) were received and 32,550 shares were
issued through exercise of warrants. As of March 31, 2000
there were 267,450 warrants outstanding.
Preferred Stock - The Company has authorized 10,000,000
shares of preferred stock, $.001 par value, with such
rights, preferences and designations and to be issued
in such series as determined by the Board of Directors.
No shares are issued and outstanding at September 30, 1999.
Stock Warrants - During 1999, the Company approved
the sale of warrants to purchase 42,750 shares of
common stock to various directors, an employee and
an attorney. Each warrant grants the holder the
right to purchase one share of the Company's common stock
at a price of $2.50 per share. The warrants can be
purchased for a period of 120 days from the date of
approval. The warrants are exercisable for five years.
During the three months ended March 31, 2000, $100 was
received for the purchase of 10,000 warrants.
NOTE 4 - RELATED PARTY TRANSACTIONS
Management Compensation - As of May 31, 1999, the Company
had not paid any compensation to its officers and
directors. Starting June 1, 1999 the president is being
compensated $962 per week by the Company.
9
<PAGE>
MICRO INTERCONNECT TECHNOLOGY, INC.
[A Development Stage Company]
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
NOTE 4 - RELATED PARTY TRANSACTIONS [Continued]
License Agreement - The Company entered into an
exclusive licensing agreement with the officer and
shareholder of the Company for the exclusive rights
for patents covering electronic interconnection
manufacturing technologies for the United States and it's
territories and possessions. The agreement expires March
31, 2007. The Company will pay a 1% royalty of
gross sales and receipts for the right beginning
January 1999. As of March 31, 2000, royalties payable
to the officer/shareholder totaled $70. During the year
ended December 31, 1999, the Company incurred costs of
$4,071 to register additional patents owned by the
officer and shareholder. According to the license
agreement, incurring these costs extends the license
agreement seven years to expire in 2014.
Rent Agreement - Beginning June 1, 1999, the Company
entered into a one-year lease for research and office
space with a related party. Monthly rent from June 1,
1999 to October 31, 1999 was $800. As of November 1,
1999, the manufacturing space was expanded, with a new
monthly rent of $1,400. [See Note 7].
NOTE 5 - INCOME TAXES
The Company accounts for income taxes in accordance with
Statement of Financial Accounting Standards No. 109
"Accounting for Income Taxes". SFAS No. 109 requires the
Company to provide a net deferred tax asset/liability
equal to the expected future tax benefit/expense of
temporary reporting differences between book and tax
accounting methods and any available operating loss or tax
credit carryforwards. At March 31, 2000, the Company has
available unused operating loss carryforwards of
approximately $171,000, which may be applied against future
taxable income and which expire in 2018 through 2020.
The amount of and ultimate realization of the benefits
from the operating loss carryforwards for income tax
purposes is dependent, in part, upon the tax laws in
effect, the future earnings of the Company, and other
future events, the effects of which cannot be determined.
Because of the uncertainty surrounding the realization of
the loss carryforwards the Company has established a
valuation allowance equal to the tax effect of
the loss carryforwards and, therefore, no
deferred tax asset has been recognized for the loss
carryforwards. The net deferred tax assets are
approximately $58,000 and $37,000 as of March 31, 2000
and December 31, 1999, respectively, with an offsetting
valuation allowance at each period end of the same amount
resulting in a change in the valuation allowance of
approximately $21,000 for the three months ended March 31, 2000.
10
<PAGE>
MICRO INTERCONNECT TECHNOLOGY, INC.
[A Development Stage Company]
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
NOTE 6 - LOSS PER SHARE
The following data show the amounts used in computing loss per
share for the periods ended March 31, 2000 and 1999:
For the Three
Months Ended From Inception
March 31, on February 11,
___________________ 1998 Through
2000 1999 March 31, 2000
_________ ________ _______________
Loss from continuing operations
available to common shareholders
(numerator) $ (62,104) $ (1,474) $ (171,288)
_________ ________ _______________
Weighted average number of
common shares outstanding used
in loss per share for the period
(denominator) 1,159,646 1,000,000 1,065,633
_________ ________ _______________
NOTE 7 - OPERATING LEASE
Beginning June 1, 1999, the Company entered into a one-
year lease for office space with a related party.
Space for manufacturing was expanded as of November
1, 1999. Monthly rent is $1,400. Rent expense for the
period ended March 31, 2000 totaled $4,200.
11
<PAGE>
PART I FINANCIAL INFORMATION
ITEM 2 Management's Plan of Operation.
The Company is currently developing a direct electronic
imaging workstation that can produce in-situ masks that
will have high resolution, accurate alignment, and can be
computer compensated for manufacturing defects. Based on
the current state of development of the direct electronic
imaging workstation, the Company believes that the imaging
workstation will open the way for a lower cost production
process for high resolution interconnects. The anticipated
changes that can be made in the production process are
proprietary to the Company and may give the Company a
competitive advantage in profitably producing printed
circuit boards. Therefore, the Company's management has
decided that during the next twelve months the Company's
primary research and development effort to develop a
commercially viable direct electronic imaging workstation
should be expanded to encompass concurrent development of a
prototype facility for producing state-of-the-art printed
circuit boards. The Company anticipates that printed
circuit board sales may generate earnings to help finance
the Company's ongoing technological thrust and product
development.
The Company believes that continued development of the
direct electronic imaging workstation and construction and
debugging of the prototype facility for producing printed
circuit boards can be accomplished during 2000 without
raising additional funds. Without future earnings from the
sale of printed circuit boards produced in the Company's
prototype factory., the Company believes that its present
cash resources (without exercise of outstanding warrants)
are sufficient to satisfy the Company's needs only for
approximately twelve months. If holders of some of
the 267,450 unexercised warrants at March 31, 2000 sold in
the initial public offering choose to exercise the warrants
prior to expiration on June 10, 2000, the Company will have
additional resources available to finance its ongoing
development efforts. Since the last reported $3.50 per
share sales price of the Company's stock currently exceeds
the $2.50 per share warrant exercise price by approximately
forty percent, the Company believes that it is probable
that some warrant holders will choose to exercise their
warrants, generating additional working capital for the
Company. However, the Company's plan of operations for the
next twelve months does not anticipate additional funds
from exercise of additional warrants.
If the Company is unsuccessful in developing and profitably
marketing or utilizing the direct electronic imaging
workstation and the prototype printed circuit board
facility, it may be unable to continue operations beyond
twelve months without raising additional funds from other
sources. Even the successful development of a prototype
factory will not assure the Company's ability to generate
sufficient revenues from sales or the ability to obtain any
outside financing on favorable terms, if at all.
There can be no guarantees that the market will give
financial support to the direct electronic imaging
workstation or products produced by the prototype printed
circuit board production facility, if it becomes fully
functional. There is no assurance that the Company will be
able to raise additional funds from other sources.
If the Company successfully completes development of its
direct electronic imaging workstation and the prototype
factory and is able to market its manufacturing services, the
Company may hire an additional 4 full-time employees and may
purchase additional equipment costing approximately $50,000.
The Company will also continue developing the Company's
proprietary technology to develop additional workstations and
to construct a complete high volume flexible manufacturing
cell (factory) for producing high density electronic
interconnects and printed circuit boards. However, the
Company expects that it could take up to three years to
develop a high volume flexible manufacturing cell. The
Company does not believe that revenues generated from future
12
<PAGE>
sales of printed circuit boards from the prototype facility
will be sufficient to provide all of the financial resources
needed for planned future product development. The Company
anticipates that it will need additional financing in
approximately twelve months to meet its current plan for the
development of additional workstations and a high volume
flexible manufacturing cell. If by then the Company is
unable to obtain additional financing, the Company will not
be able to meet its plan for the development of additional
workstations and a high volume flexible manufacturing cell.
There are no guarantees that the Company will be successfully
able to fund its operations until it can develop a high
volume flexible manufacturing factory.
PART II OTHER INFORMATION
ITEM 1 Legal Proceedings
None
ITEM 2 Changes in Securities
None
ITEM 3 Defaults on 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) Exhibits
None
b) Reports on Form 8-K
None
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.
MICRO INTERCONNECT TECHNOLOGY, INC.
/s/ N. Edward Berg May 16, 2000
N. Edward Berg, President Date
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
financial statements for the three months ended March 31, 2000 and
is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 189,331
<SECURITIES> 0
<RECEIVABLES> 758
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 190,089
<PP&E> 5,592
<DEPRECIATION> 944
<TOTAL-ASSETS> 195,537
<CURRENT-LIABILITIES> 11,285
<BONDS> 0
0
0
<COMMON> 1,183
<OTHER-SE> 183,069
<TOTAL-LIABILITY-AND-EQUITY> 195,537
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 63,529
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (62,104)
<INCOME-TAX> 0
<INCOME-CONTINUING> (62,104)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (62,104)
<EPS-BASIC> (.05)
<EPS-DILUTED> (.05)
</TABLE>
