UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15(d) of
The Securities Exchange Act of 1934
ACCORD ADVANCED TECHNOLOGIES, INC.
(Formally known as Investment Book Publishers, Inc)
(Name of Small Business Issuer)
March 31, 2000 0-27187
- --------------------- ----------------------
For the Quarter Ended Commission File Number
Nevada 88-0361127
- ------------------------ -----------------------
(State of Incorporation) (I.R.S. Employer
Identification Number.)
5002 South Ash Avenue, Tempe, Arizona 85282
----------------------------------------------------------
(Address of Principal Executive Offices Including Zip Code)
(480) 820 1400
--------------------------
(Issuers 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 such shorter
period that the registrant was required to file such reports), and (2) has been
subject to filing requirements for the past 90 days. YES [X] NO [ ]
Number of shares outstanding of each of the issuer's classes of common equity,
as of May 1, 2000: 39,568,638
Transitional Small Business Disclosure Format: YES [ ] NO [X]
<PAGE>
ACCORD ADVANCED TECHNOLOGIES, INC.
INDEX
PAGE
----
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
Consolidated Balance Sheet at March 31, 2000 2
Consolidated Statements of Operations for the three
months ended March 31, 2000 and 1999 3
Consolidated Statements of Cash Flows for the three
months ended March 31, 2000 and 1999 5
Item 2 - Management's Discussion and Analysis 6
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 11
Item 2. Changes in Securities and Use of Proceeds 11
Item 3. Default Upon Senior Securities 11
Item 4. Submission of Matters to a Vote of Security Holders 11
Item 5. Other Information 11
Item 6. Exhibits and Reports on Form 8-K 12
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ACCORD ADVANCED TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEET
MARCH 31,2000 (unaudited)
ASSETS
CURRENT ASSETS
Cash $ 149,727
Accounts receivable 686,179
Inventories 594,779
Deferred income taxes 71,438
Prepaid expenses and other assets 51,380
-----------
Total current assets 1,553,503
-----------
PROPERTY, MACHINERY AND EQUIPMENT, net 1,978,196
DEFERRED INCOME TAXES 93,579
DEFERRED LOAN COSTS 27,749
OTHER ASSETS 54,325
-----------
TOTAL ASSETS $ 3,707,352
===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Bank line of credit $ 148,750
Accounts payable 664,793
Accrued liabilities 400,536
Accrued warranty and installation expense 162,025
Income taxes payable 62,198
Customer deposits 220,100
Capital lease obligations - current portion 24,114
Note payable - current portion 193,200
-----------
Total current liabilites 1,875,716
-----------
CAPITAL LEASE OBLIGATIONS - long-term portion 58,522
NOTE PAYABLE - long-term portion 932,951
-----------
Total liabilities 2,867,189
-----------
STOCKHOLDERS' EQUITY:
Preferred stock, $.0001 par value, 3,000,000 shares
authorized, none issued
Common stock, $.0001 par value, 47,000,000 share
authorized, 39,568,638, issued and outstanding 3,957
Paid in capital 965,973
Retained earnings (129,767)
-----------
Total stockholders' equity 840,163
-----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,707,352
===========
2
<PAGE>
ACCORD ADVANCED TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three months ended March 31,
2000 1999
----------- -----------
SALES $ 1,553,138 $ 1,005,760
COST OF SALES 937,539 654,423
----------- -----------
Gross profit 615,599 351,337
----------- -----------
OTHER (INCOME) AND EXPENSES
General and administrative expense 470,309 269,392
Selling and marketing expense 111,364 170,954
Interest expense 30,921 41,544
Other (income) expense (8,819) (495)
----------- -----------
Total other expense 603,775 481,395
----------- -----------
INCOME (LOSS) BEFORE INCOME TAXES
AND EXTRAORDINARY ITEM 11,824 (130,058)
INCOME TAX (PROVISION) BENEFIT (5,902) 51,014
----------- -----------
NET INCOME (LOSS) BEFORE EXTRAORDINARY ITEM 5,922 (79,044)
EXTRAORDINARY ITEM - DEBT FORGIVENESS INCOME
(net of income taxes of $341,484) -- 716,650
----------- -----------
NET INCOME $ 5,922 $ 637,606
=========== ===========
NET INCOME (LOSS) PER COMMON SHARE
Basic:
Before extraordinary item $ * $ *
Extraordinary item $ -- $ 0.02
----------- -----------
Total $ * $ 0.02
=========== ===========
Diluted:
Before extraordinary item $ * $ *
Extraordinary item $ -- $ 0.02
----------- -----------
Total $ * $ 0.02
=========== ===========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 39,568,638 39,548,638
=========== ===========
Diluted 42,469,967 39,611,796
=========== ===========
* less than $0.01
3
<PAGE>
ACCORD ADVANCED TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED MARCH 31,
2000 1999
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 5,922 $ 637,606
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 17,076 14,999
Deferred income taxes (2,948) 284,438
Forgiveness of long-term debt -- (1,058,134)
Changes in assets and liabilities:
Accounts receivable 72,867 (83,096)
Inventory 231,604 510,430
Other current assets (7,403) (6,822)
Deferred loan costs an other noncurrent assets (9,871) (19,735)
Accounts payable (9,096) (72,079)
Accrued liabilities 72,450 68,227
Income taxes payable 8,850 --
Accrued warranty and installation expense 25,238 39,246
Customer deposits (201,753) (400,264)
----------- -----------
Net cash provided by operating activities 202,936 (85,184)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, machinery and equipment (10,428) (293)
----------- -----------
Net cash (used in) provided by investing
activities (10,428) (293)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on line of credit 50,000
Borrowings on long-term debt -- 950,000
Principal payments on capital lease obligations (5,728) (995,000)
Principal payments on long-term debt (50,368) (12,335)
----------- -----------
Net cash (used in) provided by financing
activities (56,096) (7,335)
----------- -----------
INCREASE (DECREASE) IN CASH 136,412 (92,812)
CASH, BEGINNING OF PERIOD 13,315 157,078
----------- -----------
CASH, END OF PERIOD $ 149,727 $ 64,266
=========== ===========
SUPPLEMENTAL INFORMATION:
Computer equipment purchased through capital lease $ 24,135 --
=========== ===========
Interest paid $ 30,921 $ 10,872
=========== ===========
</TABLE>
4
<PAGE>
STATEMENT OF INFORMATION FURNISHED
The accompanying financial statements have been prepared in accordance
with Form 10-QSB instructions and in the opinion of management contain all
adjustments (consisting of only normal and recurring accruals) necessary to
present fairly the financial position as of March 31, 2000, and the results of
operations for the three months ended March 31, 2000 and 1999, and cash flows
for the three months ended March 31, 2000 and 1999. These results have been
determined on the basis of generally accepted accounting principles and
practices applied consistently with those used in the preparation of the
Company's 1999 financial statements included in Form 10-KSB.
Certain information and footnote disclosure normally included in
financial statements presented in accordance with generally accepted accounting
principles have been condensed or omitted. It is suggested that the accompanying
financial statements be read in conjunction with the financial statements and
notes thereto included in the Company's Form 10-KSB.
5
<PAGE>
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Sales increased from $1,006,000 for the three months ended March 31,
1999 to $1,553,000 for the three months ended March 31, 2000, an increase of
$547,000 or 54%. The sales increase is mostly attributable to an increase in the
service portion of the company's business.
The gross profit increased from $351,000 in the period ended March 31,
1999 to $616,000 in the period ended March 31, 2000, an increase of $265,000 or
75%. The gross profit margin increased to approximately 40% in 2000 from 35% in
1999. The Company's gross profit margins are subject to volatility because of
the factor that each contract is unique and the cost of the basic tool or piece
of equipment for remanufacturing may vary significantly depending on
availability. In addition, the margins on service business are higher.
General and administrative expenses increased to $470,000 in the period
ended March 31, 2000, from $269,000 in the period ended March 31, 1999, an
increase of $201,000 or 75%. This increase is due to hiring of additional
personnel.
Selling and marketing expenses decreased to $111,000 in the period
ended March 31, 2000, from $171,000 in the period ended March 31, 1999, a
decrease of $60,000 or 35 %. Selling and marketing expenses include sales
commissions which is a factor of the sales volume as well as whether the sales
are made through outside sales representatives or direct (inside) sales
representatives. Sales commissions for outside representatives are higher than
inside. For the period ended March 31, 2000 all sales were made by direct sales
representatives. For the period ended March 31, 1999 a significant sale was by
an outside representative. Selling and marketing expenses, as a percentage of
sales was 7% as of March 31, 2000 compared to 17% as of March 31, 1999.
Interest expense decreased to $31,000 in the period ended March 31,
2000, from $42,000 in the period ended March 31, 1999, a decrease of $11,000 or
26%. The decrease is the due primarily to the reduction in debt associated with
the refinancing of approximately $1,800,000 in capital lease obligations
resulting in $1,058,000 in debt forgiveness. The new financing is at an interest
rate less than the prior capital lease obligations. The debt forgiveness income
of $710,000, net of income taxes, in the period ended March 31, 1999, reflects
the difference in the capital lease obligations and the negotiated buy-out of
the leases from the lessor.
6
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
The Company historically has had a working capital deficiency. The
Company had a net working capital deficit of $322,000 at March 31, 2000 as
compared to a deficiency of $246,000 at December 31, 1999. The Company operates
at very low cash levels and at times can experience cash flow difficulties.
These cash flow difficulties can periodically affect operations. The Company has
attempted to secure cash deposits from customers at the time purchase orders are
submitted to assist in much of the up front costs that are incurred in
completing customer orders. The largest component of cost of sales is the cost
of acquiring the primary tool or machine. The Company may also request the
customer to purchase the used tool or machine as well as some of the parts
required for the refurbishing. The Company has historically borrowed funds from
certain purchase order lenders. In the year ended December 31, 1999, the Company
secured a $150,000 bank line of credit. The line of credit expires in May, 2000.
The Company intends to refinance this line of credit to a 3-year term loan as of
May 15, 2000. At March 31, 2000, the Company's annual debt service is
approximately $330,000 including capital lease obligations excluding the bank
line of credit. The Company believes that at its current operating levels it can
continue to require customer deposits and that it has several sources to obtain
financing upon obtaining a customer purchase order.
The Company is holding for sale two pieces of equipment that have been
idle since they were acquired. The Company had intended to use this equipment to
expand its product line but now has postponed those plans. The net book value of
this equipment was $1,641,000 at March 31, 2000. The Company will continue its
efforts to sell this equipment and believes that it will eventually recognize
proceeds equal to or greater than the carrying value.
The Company has not experienced material losses on receivables from its
customers. Its customers generally are large companies with significant
resources. The Company requires final payment upon delivery, installation and
completion of testing.
The Company is attempting to raise additional debt or equity capital to
allow it to expand the current level of operations.
The Company is a defendant in a claim filed by one of its shareholders.
See Part II Item 1. LEGAL Proceedings. The effect of the ultimate resolution of
this claim on liquidity and operations cannot yet be determined.
The Company may require additional capital to continue a trend of
greater volume which would require higher levels of inventory, accounts
receivable and higher operating expenses for marketing. The Company is presently
negotiating with sources for additional equity capital to allow it to expand the
current level of operations.
There can be no assurances that the Company will be successful in
obtaining such capital.
7
<PAGE>
SEASONALITY
The Company's operations are not affected by seasonal fluctuation.
However, cash flows may at times be affected by fluctuations in the timing of
cash receipts from large contracts.
OTHER
The Company noted that there were certain timing differences in interim
and quarterly information filed on Form-10SB and Form-10QSB for the periods
ended June 30, 1999, and September 30, 1999. The Company is presently analyzing
that financial information and will file amendments to those forms upon
completion of that analysis.
CAUTIONARY FACTORS THAT MAY AFFECT FUTURE RESULTS
ADDITIONAL FINANCING. The Company will require additional financing to
achieve growth in operations and to support its working capital requirements.
The Company may seek additional financing through private placements of debt or
equity financing.
TECHNOLOGICAL CHANGE. The nature of the Company's service and product
is such that changes are continually made to the tools and machines. The Company
has been able to keep pace with those changes and hire qualified personnel that
are well trained and experienced with the design and manufacturing of the
equipment. The Company has historically hired much of its personnel from the
original equipment manufacturers.
COMPETITION. The Company faces competition from many sources, including
the original equipment manufacturers. Many of these competitors are larger and
have significantly more resources than the Company.
LAWSUIT. The Company is involved in a lawsuit for claims made by a
stockholder whom had held convertible debt, converted the debt to common stock
and alleges that the Company breached the debenture agreement. The Company
claims that the stockholder was involved in improper trading of the Company's
stock, which resulted in a breach of the debenture agreement and has filed a
counter claim requesting damages in the amount of $1,000,000. The stockholder
has asked for $372,000. The effect of the ultimate resolution of this claim on
liquidity and operations cannot yet be determined. See LEGAL PROCEEDINGS.
FORWARD LOOKING INFORMATION
The issuer has and will continue to market all the prospective
customers in North America rather than relying on only those customers with whom
it has historically done business. The company plans to increase its sales and
marketing presence through the use of its web site, more advertising and adding
more sales and technical personnel. The company will also continue the
development of its patents.
8
<PAGE>
FACTORS THAT MAY AFFECT FUTURE RESULTS
The Company believes that the results of its operations in any
quarterly period may be impacted by factors such as delays in completion and the
shipment of products, difficulty in acquiring critical product components of
acceptable quality and in the required quantity, increased competition, the
effect of marketing efforts, growth rates in the Company's markets and adverse
changes in economic conditions. The Company's volume may be affected by changes
in conditions in the semiconductor industry.
"CAUTION REGARDING FORWARD LOOKING STATEMENTS"
CERTAIN STATEMENTS CONTAINED IN THIS REPORT THAT ARE NOT RELATED TO
HISTORICAL RESULTS, INCLUDING, WITHOUT LIMITATIONS, STATEMENTS REGARDING THE
COMPANY'S BUSINESS STRATEGY AND OBJECTIVES AND FUTURE FINANCIAL POSITION, ARE
FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES
ACT AND SECTION 21E OF THE EXCHANGE ACT AND INVOLVE RISKS AND UNCERTAINTIES.
ALTHOUGH THE COMPANY BELIEVES THAT THE ASSUMPTIONS ON WHICH THESE FORWARD
LOOKING STATEMENTS ARE BASED ARE REASONABLE, THERE CAN BE NO ASSURANCE THAT SUCH
ASSUMPTIONS WILL PROVE TO BE ACCURATE AND ACTUAL RESULTS COULD DIFFER MATERIALLY
FROM THOSE DISCUSSED IN THE FORWARD LOOKING STATEMENTS. FACTORS THAT COULD CAUSE
OR CONTRIBUTE TO SUCH DIFFERENCES INCLUDE BUT ARE NOT LIMITED TO, THOSE SET
FORTH IN THE PRECEDING PARAGRAPH, AS WELL AS THOSE DISCUSSED ELSEWHERE IN THIS
REPORT. ALL FORWARD-LOOKING STATEMENTS CONTAINED IN THIS REPORT ARE QUALIFIED IN
THEIR ENTIRETY BY THIS CAUTIONARY STATEMENT.
PART II OTHER INFORMATION
GENERAL INFORMATION
ACCORD ADVANCED TECHNOLOGIES, INC. (AVTI) is in the business of
providing refurbishing services and engineering consulting to semiconductor
manufacturers.
ACCORD SEMICONDUCTOR EQUIPMENT GROUP, INC., the wholly owned subsidiary
of Accord Advanced Technologies, Inc. was formed in 1993 under the name
Integrated Semiconductor Service. It is the only operating company of Accord
Advanced Technologies, Inc. This company recognized an opportunity for
full-service re-manufacturing and support of advanced semiconductor
manufacturing systems and components.
Accord Semiconductor Equipment Group, Inc (SEG) specializes in
re-manufacturing and modifying multi-chamber systems for chemical vapor
deposition (CVD), physical vapor deposition (PVD) and Etch processes. These
precision systems are responsible for transforming individual silicon wafers
into integrated-circuit (IC) products such as computer chips. Refurbishing
provides Accord SEG's customers an equally high quality alternative to new OEM
equipment and enables the customer to immediately produce its IC products at a
reduced cost due to lower manufacturing equipment costs. The company also
provides system decommissioning, commissioning, after-sales service and supplies
parts and process technology as needed by the customer Accord SEG is unique
among equipment re-manufacturers because of its ability to custom-engineer
modifications to customers' systems. The company primarily re-manufactures the
equipment of Applied Materials, the largest original equipment manufacturer
(OEM) of semiconductor manufacturing equipment in the world.
The market serviced by the company consists of all facilities in North
America (approximately 378) manufacturing integrated circuits. The issuer has an
internal marketing and sales force as well as a highly skilled technical staff.
It also has very experienced outside sales representatives. The company utilizes
trade shows, trade journal advertising and its web site along with its
technical, marketing and sales force to distribute and market its services.
The Company's acquisition of Accord Semiconductor Equipment Group, Inc.
("Accord SEG") was effected through the exchange of common stock that resulted
in 100% of the common stock of Accord SEG being held by the Company and the
shareholders of Accord SEG owning approximately 95% of the Company.
9
<PAGE>
Accord SEG has completed work for such well-known companies as American
Microsystems, Honeywell, Rockwell International, Integrated Solutions, Motorola,
Intel, MRC (Sony), California Micro Devices, Eastman Kodak, National
Semiconductor, Siemens Semiconductor Group, Lockheed, IDT and Texas Instruments.
In that there are numerous other prospective customers, the issuer feels that it
has been dependent on a few customers and is changing that dependency.
PATENTS
The issuers operating subsidiary has received two patents and are
awaiting a third.
The first patent was issued on April 28, 1998 (US Patent #5,744,400)
for an ion beam process that has advantages over the existing Chemical
Mechanical Planarization.
Traditional Chemical/Mechanical Planarization employs a combination of
mechanical pressure, abrasive slurry and chemical etchant to grind flat the thin
film layers of an IC. There is potential for damage to the IC if the layers are
ground too thin or if any residue from the CMP process remains. Accord's
planarization process yields greater consistency at a lower cost than does CMP.
The Company expects to complete a prototype incorporating its new technology
during 2000. The process is dry, slurry-free, environmentally safe, adaptable to
standard cluster deposition/etch tools and is cost effective with rapid
planarization rates.
CVD WAFER HANDLING SYSTEM
Every semiconductor processing system uses spare parts that are
affected by the gases and other materials within a process chamber. These
"consumable parts" must be replaced regularly; creating a potentially lucrative
market to those companies that can design and manufacture replacement parts. All
Chemical Vapor Deposition chambers in a multi-chamber processing tool use a
handling system to support and heat the wafer inside the chamber. Through a
combination of thermal stress and exposure to corrosive gases over time, these
wafer handlers fail during production and need to be replaced. The issuer's
subsidiary has developed and on September 1, 1998 received a patent on a
wafer-handling system, or susceptor (US Patent # 5,800,623). It incorporates
distinctive metallurgy to offer greater reliability and longer durability at a
significantly reduced cost.
ENVIROCLEAN' CHAMBER KIT
The Company through its subsidiary has a patent-pending (docket #
08/730849) product known as EnviroClean(TM) chamber upgrade kit. This product
offers a solution to concerns about greenhouse gas production in the
semiconductor industry. Greenhouse gases are believed to have a detrimental
effect on the earth's atmosphere through global warming. Semiconductor
manufacturing is currently responsible for producing a significant volume of
these gases each year. Consequently, pending legislation to curtail the
production of greenhouse gases will likely require semiconductor manufacturers
in the near future to install relatively expensive abatement systems that meet
strict emission specifications.
10
<PAGE>
The Company's EnviroClean kit enables semiconductor manufacturers to
retool existing multi-chamber equipment less expensively. Its technology
replaces harmful greenhouse gases with relatively benign process-gas. The issuer
may need local government approval for the use of certain gases used in the
testing of the equipment re-manufactured on its premises. To date, the company
has all the approvals necessary.
The issuer is unaware of any effect existing governmental regulations
has on its business. The issuer is also unaware of any probable regulation. The
issuer has not expended any funds for Research and Development during the past
two years.
The company complies with all environmental laws. The costs to meet
these requirements were expended when the private company moved into its present
rented facility in 1994. There has been no need for further expenditures since
that time.
The issuer has fifteen (15) full time employees; three (3) contracted
employees and two (2) independent sales representative groups as of March 31,
2000.
ITEM 1. LEGAL PROCEEDINGS
The Company is not a party to any litigation and to its knowledge, no
action, suit or proceedings against it has been threatened by any person or
entity.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
None
ITEM 3. DEFAULT UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
11
<PAGE>
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit Number Description
-------------- -----------
2 Agreement for Exchange of Stock and Plan of Reorganization.
Incorporated by reference to the Form 10SB filed with the
Commission on August 30, 1999.
3 Articles of Incorporation with Amendments. Incorporated by
reference to the Form 10SB filed with the Commission on August
30, 1999.
3.1 By-Laws of the corporation. Incorporated by reference to the
Form 10SB filed with the Commission on August 30, 1999.
4.1 Long-term loan Union Bank (SBA).Incorporated by reference to
the Form 10SB filed with the Commission on August 30, 1999.
10.1 Subscription Agreements for the Sale of Stock.Incorporated by
reference to the Form 10SB filed with the Commission on August
30, 1999.
10.2 Contract Between Two Directors and the Issuer. Incorporated by
reference to the Form 10SB filed with the Commission on August
30, 1999.
10.3 Lease on premises of Issuer. Incorporated by reference to the
Form 10SB filed with the Commission on August 30, 1999.
10.4 Convertible Debenture Purchase Agreement. Incorporated by
reference to the Form 10SB filed with the Commission on August
30, 1999.
10.5 Convertible Debenture. Incorporated by reference to the Form
10SB filed with the Commission on August 30, 1999.
10.6 Escrow Agreement. Incorporated by reference to the Form 10SB
filed with the Commission on August 30, 1999.
10.7 Warrant to Purchase Common Stock. Incorporated by reference to
the Form 10SB filed with the Commission on August 30, 1999.
11 Computation of per share earnings in financial statements.
Incorporated by reference to the Form 10SB filed with the
Commission on August 30, 1999, and the 10Q-SB filed on
November 15, 1999
21 Subsidiary is Accord SEG and is Incorporated in Arizona
27 Financial Data Schedule *
- ----------
* Filed herewith.
(b) Reports of Form 8-K
None
12
<PAGE>
SIGNATURES
In accordance with Section 12 of the Securities Exchange Act of 1934,
the Registrant caused this registration statement to be signed on its behalf by
the undersigned thereunto duly authorized.
ACCORD ADVANCED TECHNOLOGIES, INC.
May 12, 2000 By: /s/ Travis Wilson
-----------------------------------------------
Travis Wilson, Director and President
By: /s/ Carl P. Ranno
-----------------------------------------------
Carl P. Ranno, Director and Secretary/Treasurer
13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH
31, 2000 AND 1999 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> 149,727
<SECURITIES> 0
<RECEIVABLES> 686,179
<ALLOWANCES> 0
<INVENTORY> 594,779
<CURRENT-ASSETS> 1,553,503
<PP&E> 2,204,099
<DEPRECIATION> (225,903)
<TOTAL-ASSETS> 3,707,352
<CURRENT-LIABILITIES> 1,875,716
<BONDS> 1,208,787
0
0
<COMMON> 3,957
<OTHER-SE> 836,206
<TOTAL-LIABILITY-AND-EQUITY> 3,707,352
<SALES> 1,553,138
<TOTAL-REVENUES> 1,553,138
<CGS> 937,539
<TOTAL-COSTS> 937,539
<OTHER-EXPENSES> 603,775
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 30,921
<INCOME-PRETAX> 11,824
<INCOME-TAX> (5,902)
<INCOME-CONTINUING> 5,922
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,922
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
