U.S. Securities and Exchange Commission
Washington, DC 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 March 31, 2000
[ ] TRANSITION REPORT UNDER SECTON 13 OR 15(d) OF THE EXCHANGE ACT for the
transition period from ___________________ to ________________________.
Commission File Number 0-9940
FINGERMATRIX, INC.
(Exact name of small business issuer as specified in its charter)
New York 13-2854686
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
249 Saw Mill River Road, Elmsford, NY 10523
(Address of principal executive offices) (Zip Code)
(914) 592-5930
(Registrant's telephone number, including area code)
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 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 ___
As of May 22, 2000, there are 20,000,000 shares of the par value $.01
common stock outstanding.
1
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PART I FINANCIAL INFORMATION
Item 1. Financial Statements
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Fingermatrix, Inc. and Subsidiaries
Unaudited Consolidated Interim Financial Statements
Table of Contents
- --------------------------------------------------------------------------------
Unaudited Consolidated Statements of Operations.............................3
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Unaudited Consolidated Balance Sheet........................................4
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Unaudited Consolidated Statements of Cash Flows.............................5
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Footnotes to Unaudited Consolidated Interim Financial Statements............6
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2
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Fingermatrix, Inc. and Subsidiaries
Unaudited Consolidated Statements of Operations
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
Three months ended March 31, 2000 1999
- -----------------------------------------------------------------------------------------------------------
Sales $ 688,000 $ 545,000
Cost of goods sold 328,000 400,000
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Gross profit 360,000 145,000
Selling, general and administrative expense 720,000 379,000
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Operating loss (360,000) (234,000)
Interest expense and financing fees, related parties (56,000) --
Interest expense and financing fees, other (38,000) (40,000)
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Net loss $ (454,000) $ (274,000)
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Weighted average shares outstanding 20,000,000 9,428,393
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Net loss per common share: Basic and fully diluted $ (0.02) $ (0.03)
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</TABLE>
See Notes to Unaudited Consolidated Interim Financial Statements.
3
<PAGE>
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Fingermatrix, Inc. and Subsidiaries
Unaudited Consolidated Balance Sheet
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As of March 31, 2000
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ASSETS
CURRENT ASSSETS:
Cash $ 9,000
Accounts receivable, net 389,000
Inventories, net 1,400,000
Prepaid expense and other current assets 15,000
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Total current assets 1,813,000
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Property, Plant and Equipment:
Property, plant and equipment, cost 2,459,000
Less accumulated depreciation and amortization (2,376,000)
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Net property plant and equipment 83,000
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Other assets:
Security deposits 26,000
Other long-term assets 3,000
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Total other assets 29,000
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TOTAL ASSETS $ 1,925,000
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LIABILITIES AND CAPITAL DEFICIENCY
- --------------------------------------------------------------------------------
CURRENT LIABILITIES:
Notes payable, related parties $ 1,909,000
Accrued expenses and other current liabilities 863,000
Revolving line of credit 705,000
Accounts payable 742,000
Other current liabilities 281,000
- --------------------------------------------------------------------------------
Total current liabilities 4,500,000
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Commitments and contingencies (footnote 3)
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CAPITAL DEFICIENCY
- --------------------------------------------------------------------------------
Preferred stock, $.01 par value; 1,000,000
shares authorized; 115,402 shares issued 1,000
Preferred stock in excess of par value 1,130,000
Common stock, $.01 par value; 20,000,000
shares authorized, issued and outstanding 200,000
Additional paid-in capital 7,116,000
Accumulated deficit (11,022,000)
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Total capital deficiency (2,575,000)
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TOTAL LIABILITIES AND CAPITAL DEFICIENCY $ 1,925,000
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See Notes to Unaudited Consolidated Interim Financial Statements.
4
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Fingermatrix, Inc. and Subsidiaries
Unaudited Consolidated Statements of Cash Flows
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<TABLE>
<CAPTION>
<S> <C> <C>
Three Months ended March 31, 2000 1999
- -----------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH
CASH FLOWS - OPERATING ACTIVITIES:
- -----------------------------------------------------------------------------------------------------------
Net loss $ (454,000) $ (274,000)
Adjustments to reconcile net loss to net cash used in
operating activities:
--
Depreciation and amortization 10,000 17,000
Changes in assets and liabilities, net of reverse acquisition:
Inventories (124,000) (34,000)
Accounts receivable, net 76,000 --
Prepaid expense and other current assets 14,000 20,000
Accounts payable 45,000 131,000
Accrued expenses and other current liabilities 46,000 (60,000)
Payroll taxes payable 35,000 35,000
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Net cash used for operating activities (352,000) (165,000)
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CASH FLOWS - INVESTING ACTIVITIES:
Security deposits -- (20,000)
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Net cash used for investing activities -- (20,000)
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CASH FLOWS - FINANCING ACTIVITIES:
Net loans from related parties 377,000 262,000
Net payments under revolving lines of credit (75,000) (18,000)
Capital lease payments (5,000) --
Payments on notes payable (7,000)
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Net cash provided by financing activities 290,000 244,000
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Net increase (decrease) in cash (62,000) 59,000
Cash - Beginning of period 71,000 14,000
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Cash - End of period $ 9,000 $ 73,000
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SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
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Cash paid during the year for:
Interest $ 38,000 $ 40,000
Income Taxes -- --
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</TABLE>
See Notes to Unaudited Consolidated Interim Financial Statements.
5
<PAGE>
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Fingermatrix, Inc. and Subsidiaries
Footnotes to Unaudited Consolidated Interim Financial Statements
Three Months Ended March 31, 2000 and 1999
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1. Basis of Presentation
In the opinion of the Company, the accompanying unaudited interim
financial statements contain all adjustments (consisting of only normal,
recurring accruals) necessary to present fairly the consolidated financial
position of Fingermatrix, Inc. and its subsidiaries (the "Company") as of March
31, 2000, the statement of operations for the three months ended March 31, 2000
and 1999 and the statement of cash flows for the three months ended March 31,
2000 and 1999.
The accompanying unaudited interim financial statements have been
prepared on a going concern basis, which contemplates the realization of assets
and the liquidation of liabilities in the normal course of business. However,
the Company has a history of declining revenues and of net losses and as of
March 31, 2000 has a working capital deficiency of $2.687 million and capital
deficiency of $2.575 million. During the current interim period and for all of
1999 and 1998, the Company has relied on financial support from its controlling
stockholder, The Trinity Group, Inc. ("Trinity"). Management is currently
seeking additional financing; however no assurances can be made that such
financing will be consummated. The continuation of the Company as a going
concern is dependent upon its ability to obtain financing, and to use the
proceeds from any such financing to increase its business to achieve profitable
operations. The accompanying financial statements do not include any adjustments
that would result should the Company be unable to continue as a going concern.
The results of operations for the three months ended March 31, 2000 and
1999 are not necessarily indicative of the results to be expected for the full
year.
2. Significant Accounting Policies
The accounting policies followed by the Company are set forth in Note 1
to the Company's financial statements in the December 31, 1999 Form 10-KSB.
3. Commitments and Contingencies
The Company agreed to issue to First Argentum LLC ("First Argentum")
3,366 shares of its Series A Preferred Stock, which are convertible into
2,500,264 shares of Common Stock, in consideration of certain consulting
services to be rendered by First Argentum as specified in a consulting agreement
between the Company and First Argentum dated October 22, 1999, as amended. The
Company has not, and does not intend to, issue any such shares to First Argentum
inasmuch as First Argentum has breached the agreement by failing to provide the
services specified thereunder. The Company has notified First Argentum of its
breach of such agreement and to terminate same as a result thereof. The Company
has not accrued any expense in connection with the First Argentum agreement.
4. Loss Per Share
Basic loss per share is computed by dividing net loss by the weighted
average number of common shares outstanding during the year. Diluted loss per
share is computed by adjusting outstanding shares, assuming conversion of all
dilutive potential common shares. At March 31, 2000, the Company has outstanding
114,402 of Series A Preferred Stock, which are convertible into 84,977,806 share
of Common Stock. As of March 31, 2000, the Company does not have a sufficient
number of authorized shares of Common Stock to allow for conversion of any of
the Series A Preferred Stock. The Company intends to effect a recapitalization
pursuant to which the Company will increase the authorized capitalization so as
to enable the Company to have a sufficient number of shares of Common Stock
authorized for issuance to
6
<PAGE>
allow for the conversion of the Series A Preferred Stock. The potential common
shares from the conversion of the Series A Preferred Stock are not included for
purposes of calculating fully diluted loss per share because their inclusion
would be anti-dilutive.
5. Segment Information
Statement of Financial Accounting Standards No. 131, "Disclosure about
Segments of an Enterprise and Related Information" established standards for the
reporting of information about operating segments and defines operating segments
as components of an enterprise for which separate financial information is
available that is evaluated regularly by the chief operating decision maker in
deciding how to allocate resources and in assessing performance. The Company's
chief operating decision maker is Lewis S. Schiller, the Company's Chief
Executive Officer and Chairman of the Board, who evaluates the Company's
businesses based upon the separate financial statements and information of the
underlying subsidiaries of the Company. Based on the above evaluation, the
Company has identified four reportable business segments as follows: (1)
Electro-Mechanical and Electro-Optical Products, which is an operating business
segment reflecting the activities of Sequential Electronic Systems, Inc.
("Sequential"); (2) Specialized Vending Machines and Avionics Equipment, which
is an operating business segment reflecting the activities of S-Tech, Inc.
("S-Tech"); (3) Fingerprint Identification Technologies, which is a development
stage business segment reflecting the activities of FMX Corp. ("FMX"); and (4)
Secured Entrance Systems, which is a development stage business segment
reflecting the activities of Secured Portal Systems, Inc. ("SPS"). The
accounting policies of the reportable segments are the same as those described
in the summary of significant accounting policies. There are no intersegment
sales but there are intersegment advances and related interest charges, all of
which are eliminated in the consolidated financial statements.
<TABLE>
<CAPTION>
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------
Three Months Ended March 31, 2000 1999
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Revenues:
Electro-Mechanical and Electro- Optical Products $ 644,000 $ 468,000
Specialized Vending Machines and Avionics Equipment 44,000 77,000
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Total revenues $ 688,000 $ 545,000
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Operating income (loss):
Electro-Mechanical and Electro- Optical Products $ 147,000 $ (113,000)
Specialized Vending Machines and Avionics Equipment (54,000) (121,000)
Fingerprint Identification Technologies (52,000) --
Secured Entrance Systems (65,000) --
- -------------------------------------------------------------------------------------------------------------
(24,000) (234,000)
Corporate costs and expenses (336,000) --
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Total operating loss $ (360,000) $ (234,000)
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Net income (loss):
Electro-Mechanical and Electro- Optical Products $ 84,000 $ (152,000)
Specialized Vending Machines and Avionics Equipment (67,000) (122,000)
Fingerprint Identification Technologies (57,000) --
Secured Entrance Systems (68,000) --
- -------------------------------------------------------------------------------------------------------------
(108,000) (274,000)
Corporate costs and expenses (346,000) --
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Total net loss $ (454,000) $ (274,000)
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</TABLE>
7
<PAGE>
5. Segment Information (continued)
<TABLE>
<CAPTION>
<S> <C> <C>
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March 31, December 31,
2000 1999
- -------------------------------------------------------------------------------------------------------------
Assets:
Electro-Mechanical and Electro- Optical Products $ 1,752,000 $ 1,702,000
Specialized Vending Machines and Avionics Equipment 602,000 582,000
Fingerprint Identification Technologies 4,000 5,000
Secured Entrance Systems -- 1,000
- -------------------------------------------------------------------------------------------------------------
2,358,000 2,290,000
Corporate 8,072,000 8,077,000
Intersegment investments (8,007,000) (8,007,000)
Intersegment advances (498,000) (397,000)
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Total assets $ 1,925,000 $ 1,963,000
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Three Months Ended March 31, 2000 1999
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Depreciation and amortization:
Electro-Mechanical and Electro- Optical Products $ 4,000 $ 5,000
Specialized Vending Machines and Avionics Equipment -- 12,000
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4,000 17,000
Corporate 6,000 --
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Total depreciation and amortization $ 10,000 $ 17,000
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</TABLE>
...................................................................
8
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
This Management's Discussion and Analysis of Financial Condition and Results of
Operations may be deemed to include forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, that involve risk and
uncertainty. Although management believes that its expectations are based on
reasonable assumptions, it can give no assurance that its expectations will be
achieved.
The important factors that could cause actual results to differ from
those in the forward-looking statements herein (the "Cautionary Statements") are
more fully described in the Company's December 31, 1999 Form 10-KSB and include,
without limitation: the Company's history of losses and cash flow deficits;
potential lack of control over the operations of SPS and FMX; need for
additional financing to fund our present and proposed business activities;
dependence on present executive officers and key personnel to manage our present
and proposed business operations and our ability to integrate new officers and
key personnel; lack of marketing or sales experience; dependence upon an
exclusive distribution agreement for the future operations of SPS; dependence
upon patent protection for the proposed activities of FMX; threat that
technological change could render certain of our products and proposed products
obsolete or non-competitive; inability to predict market acceptance for our
proposed products; intense competition of the business in which we intend to
engage; threat that E-commerce products and services may become subject to
government regulation; the risks relating to legal proceedings, as well as other
risks referenced form time to time in the Company's filings with the SEC. All
subsequent written and oral forward-looking statements attributable to the
Company or persons acting on its behalf are expressly qualified in their
entirety by the Cautionary Statements. The Company does not undertake any
obligation to release publicly any revisions to such forward-looking statements
to reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
Results of Operations
As more fully disclosed in the footnotes to the unaudited interim
financial statements, Fingermatrix has four identifiable business segments. The
operations of each of the business segments is discussed separately as follows:
Electro-Mechanical and Electro-Optical Products
The Electro-Mechanical and Electro-Optical Products segment comprises
the activities of Sequential, which is primarily engaged in the design,
manufacture and assembly of precision electro-mechanical and electro-optical
products and devices for sale to commercial and governmental customers
throughout the United States. Among such products and devices are optical
encoders, encoded motors and limit programmers. Sequential's revenues increased
$176,000,or 37.6%, from $468,000 for three months ended March 31, 1999 (the
"1999 1st Quarter") to $644,000 for the three months ended March 31, 2000 (the
"2000 1st Quarter"). Sequential's 2000 1st Quarter gross profit was $352,000, or
54.7% of sales. Sequential's 1999 1st Quarter gross profit was $183,000, or
39.1% of sales. During the 2000 1st Quarter, approximately $340,000, or 53%, of
Sequential's revenue was generated on a defense contract which had a gross
margin rate of approximately 50%. As a result, Sequential's 2000 1st Quarter
gross profits, as a percentage of revenue, increased significantly when compared
to the 1999 1st Quarter. Sequential's selling, general and administrative
expenses decreased $91,000, or 30.7% from $296,000 for the 1999 1st Quarter to
$205,000 for the 2000 1st Quarter. As a result of the above, Sequential's
operating income increased by $260,000, or 230%, from an operating loss of
$113,000 for the 1999 1st Quarter to operating income of $147,000 for the 2000
1st Quarter.
9
<PAGE>
Specialized Vending and Avionics Equipment
The Specialized Vending and Avionics Equipment comprises the activities
of S-Tech, which designs and manufactures two specialized product lines
consisting of specialized vending machines and avionics equipment. "Specialized
Vending" is an industry term used to describe a vending product that utilizes
electronic circuitry and/or computer software. Among the vending machines
manufactured by S-Tech are prepaid telephone debit card machines, bill payment
kiosks, information kiosks, and stamp vending machines. S-Tech's revenues for
the 2000 1st Quarter decreased $33,000,or 42.9%, from $77,000 for the 1999 1st
Quarter to $44,000 for the 2000 1st Quarter. S-Tech's gross profit was $8,000,
or 18.28% of sales, for the 2000 1st Quarter. S-Tech incurred a negative gross
profit of $38,000, or 49.4% of sales for the 1999 1st Quarter. S-Tech's nominal
and/or negative gross profits for the 2000 and 1999 1st Quarters is the result
of non variable overhead costs being allocated to a relatively minimal sales
volume. S-Tech's selling, general and administrative expenses decreased $21,000,
or 25.3% from $83,000 for the 1999 1st Quarter to $62,000 for the 2000 1st
Quarter. As a result of the above, S-Tech's operating loss decreased by $67,000,
or 55.4%, from $121,000 for the 1999 1st Quarter to $54,000 for the 2000 1st
Quarter.
Fingerprint Identification Technologies
The Fingerprint Identification Technologies segment comprises the
activities of FMX, which was formed in 1996 to continue with the development of
products and systems utilizing a proprietary and patented electronic fingerprint
identification technology originally conceived by Fingermatrix. The fingerprint
identification technology being developed and utilized by FMX is a fingerprint
identification scanning technology utilized for a variety of access control and
law enforcement purposes. Applications for this technology include access
control systems for banks, airports and industrial and government facilities,
voter registration and electoral anti-fraud systems, welfare and social program
identification systems, immigration control, suspect booking, prisoner and
detainee movement and release control systems, and sensitive employment
authorization systems. FMX did not have any revenues or gross profits for the
2000 and 1999 1st Quarters. FMX had no activity during the 1999 1st Quarter and
incurred general and administrative expenses of $52,000 for the 2000 1st Quarter
and therefore its operating losses, increased $52,000 when comparing the 2000
1st Quarter to the 1999 1st Quarter. FMX had nominal activity in 1998 and the
first part of 1999 due to a lack of funding. During the later part of 1999 and
during the 2000 1st Quarter, the development activity increased as a result of
funding received from Trinity.
Secured Entrance Systems
The Secured Entrance Systems segment comprises the activities of SPS,
which is a newly created subsidiary formed in 1999 for the purpose of entering
into an exclusive distribution agreement with GIL Security Systems, Inc.
pursuant to which SPS was engaged as the exclusive distributor for a certain
secured entrance system developed, manufactured and marketed by GIL (the
"Security Systems") for a term commencing as of September 1, 1999 and expiring
on August 31, 2004. SPS obtained the exclusive right to distribute the Security
Systems to certain categories of customers defined in the Distribution
Agreement, including certain agencies of the Federal Government, including U.S.
embassies, U.S. courthouses and U.S. government buildings, department stores and
retail stores located in the United States, the Government of Israel, NCR Corp.,
and Sun Microsystems. During the 2000 1st Quarter , SPS incurred general and
administrative expenses, and therefore a net operating loss, of $65,000.
Corporate costs and expenses
Corporate costs and expenses comprise the expenses of Fingermatrix, the
holding company. As a result of the SES Merger and its treatment as a reverse
acquisition, all of the activities of Fingermatrix prior to the April 28, 1999
SES Merger were recapitalized into equity and are not reflected in the results
of operations. As a result, the holding company had no general and
administrative expenses, and therefore no operating loss for the 1999 1st
Quarter. The holding's company's general and administrative expense and
operating losses for the 2000 1st Quarter were $336,000. As of March 31, 2000,
Mr. Lewis S. Schiller and Ms. Grazyna B. Wnuk are owed an aggregate of $300,000
for unpaid salaries of which $200,000 was accrued as of December 31, 1999 and
$100,000 is included in the 2000 1st Quarter corporate costs. Other
10
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significant corporate costs incurred during the 2000 1st Quarter include $82,000
of consulting fees and $87,000 of legal and accounting fees.
Non-Operating Components of Net Loss
Interest Expense and Financing Fees, Other
The interest and maintenance fees on the on the revolving line of
credit amounted to $38,000 for the 2000 1st Quarter and $40,000 for the 1999 1st
Quarter . On July 28, 1997, Sequential obtained a two-year revolving line of
credit from FINOVA Capital Corporation, formerly United Credit Corporation (the
"FINOVA Line of Credit"). The original FINOVA Line of Credit provided for a
borrowing base equal to the lesser of 75% of eligible accounts receivable or
$350,000, required payment of a 1% annual facility fee of $3,500, a 1% monthly
commitment fee of $3,500, against which monthly interest, exclusive of interest
on any over advances, is applied. The annual monthly interest rate on the FINOVA
Line of Credit is the greater of 18.5% or the prime rate in effect in New York
City plus 10%, and is payable monthly. The FINOVA Line of Credit is
collateralized by all of the assets of Sequential. On March 27, 1998, the FINOVA
Line of Credit was amended allowing an increase from 75% to 80% of eligible
accounts receivable for purposes of calculating the borrowing base, and extended
the term of the agreement from July 31, 1999 to December 31, 1999. On August 3,
1998, the FINOVA Line of Credit was further amended allowing an increase in the
borrowing base to a maximum of $400,000, and further extended the term of the
agreement to July 31, 2000. From August 3, 1998 until August 27, 1999, Trinity
had a $200,000 participating interest in the FINOVA Line of Credit. On August
28, 1999, Trinity guaranteed Sequential's performance under the FINOVA Line of
Credit and provided FINOVA Capital Corporation with a collateral security
deposit of approximately $468,000 and simultaneously therewith, Trinity's
participation in the FINOVA Line of Credit ended. In August 1999, Trinity-I
increased the cash collateral to approximately $523,000 on which Trinity-I
receives from FINOVA a return on the cash collateral in an amount equal to the
greater of the prime rate of Citibank, N.A., plus 6% or 14.5% per annum. As of
March 31, 2000, Sequential has received over advances on the FINOVA Line of
Credit in the amount of $305,000.
Interest Expense, Related Parties
The Company incurs interest expense on loans and advances received from
Trinity. The interest expense incurred on the loans and advances from Trinity
was $56,000 for the 2000 1st Quarter calculated at 15% of the outstanding
balances, which approximated $1.909 million as of March 31, 2000.
Net Loss
As a result of the above, the Company incurred a consolidated net loss
of $454,000, or $.02 per common share, for the 2000 1st Quarter and $274,000, or
$.03 per common share for the 1999 1st Quarter.
Financial Condition - Liquidity and Capital Resources
As of March 31, 2000 the Company had a working capital deficiency of
$2.687 million. Approximately $2.209 million of such deficiency relates to
amounts owed to related parties, including accrued and unpaid salaries of
$300,000 owed to Lewis S. Schiller and Grazyna B. Wnuk and $1.909 million owed
to Trinity, its controlling stockholder, for loans and advances made to fund the
operations of the Company.
During the 2000 1st Quarter, the Company used $352,000 for operating
activities and generated $290,000 from financing activities. As of March 31,
2000, two of the Company's subsidiaries, Sequential and S-Tech, are delinquent
on payment of payroll taxes approximating $241,000. The Company has issued its
preferred stock in order to make its recent acquisitions and is pursuing various
financing sources with which to fund future operating activities.
The accompanying unaudited interim financial statements have been
prepared on a going concern basis, which contemplates the realization of assets
and the liquidation of liabilities in the normal course of business. However,
the Company has a history of declining revenues and of net losses and as of
March 31,
11
<PAGE>
2000 has a working capital deficiency of $2.687 million and a capital deficiency
of $2.575 million. During the current interim period and for all of 1999 and
1998, the Company has relied on financial support from its controlling
stockholder, The Trinity Group, Inc. ("Trinity"). Management is currently
seeking additional financing; however no assurances can be made that such
financing will be obtained. The continuation of the Company as a going concern
is dependent upon its ability to obtain financing, and to use the proceeds from
any such financing to increase its business to achieve profitable operations.
The accompanying financial statements do not include any adjustments that would
result should the Company be unable to continue as a going concern.
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(27) Financial Data Schedule.(1)
(1) Filed only with the SEC in electronic format.
(b) Reports on Form 8-K
Current report on Form 8-K reporting under Item 5 Other Events the
consummation of a non-binding term sheet between the Company and
Shopclue.com, Inc. (formerly Webmall.com) whereby the Company intends
to obtain an equity interest in Shopclue.com, Inc.
.............................
12
<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, thereunto duly
authorized.
FINGERMATRIX, INC.
/S/______________ Chief Executive Officer and Director May 22, 2000
Lewis S. Schiller (Principal Executive and Accounting Officer)
13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET AND THE CONSOLIDATED STATEMENT OF OPERATIONS FILED
AS PART OF THE ANNUAL REPORT ON FORM 10-QSB AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH ANNUAL REPORT ON FORM 10-QSB.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 9,000
<SECURITIES> 0
<RECEIVABLES> 399,000
<ALLOWANCES> 10,000
<INVENTORY> 1,400,000
<CURRENT-ASSETS> 1,813,000
<PP&E> 2,459,000
<DEPRECIATION> 2,376,000
<TOTAL-ASSETS> 1,925,000
<CURRENT-LIABILITIES> 4,500,000
<BONDS> 0
<COMMON> 200,000
0
1,000
<OTHER-SE> (2,776,000)
<TOTAL-LIABILITY-AND-EQUITY> 1,925,000
<SALES> 688,000
<TOTAL-REVENUES> 688,000
<CGS> 328,000
<TOTAL-COSTS> 328,000
<OTHER-EXPENSES> 720,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 94,000
<INCOME-PRETAX> (454,000)
<INCOME-TAX> 0
<INCOME-CONTINUING> (454,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (454,000)
<EPS-BASIC> (0.02)
<EPS-DILUTED> (0.02)
</TABLE>
