UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to _______.
Commission File Number: 0-11371
BIOSONICS, INC.
(Exact name of small business issuer as specified in its charter)
<TABLE>
<S> <C>
Pennsylvania 23-2161932
(State or other jurisdiction of (IRS Employer Identification
incorporation or organization) No.)
</TABLE>
185 Commerce Drive, Suite 103
Fort Washington, Pennsylvania 19034
(Address of principal executive offices) (Zip Code)
(215) 646-7100
(Issuer's telephone number including area code)
N/A
(Former name, former address and former fiscal year, if changed
since last report)
Check mark whether the issuer (1) filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 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
State the number of shares outstanding of each of the issuers
classes of common equity, as of the latest practicable date: as
of March 31, 1999, there were outstanding 327,994,536 shares of
the Issuer's Common Stock, $.0001 par value.
<Page 2>
BIOSONICS, INC.
INDEX
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Page Number
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets:
March 31, 1999 and December 31, 1998 3
Statements of Loss:
Three Months Ended March 31, 1999 and 1998 and
the period from November 13, 1980 (Inception) to
March 31, 1999 4
Statements of Deficit Accumulated:
Three Months Ended March 31, 1999 and 1998 and
the Period from November 13, 1980 (Inception)
to March 31, 1999 5
Statements of Cash Flows:
Three Months Ended March 31, 1999 and 1998 and
the Period from November 13, 1980 (Inception)
to March 31, 1999 6 & 7
Statements of Shareholders' Equity - Paid-In-
Capital:
November 30, 1980 (Inception) to March 31, 1999 8 - 10
Note to Financial Statements 12
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations 13
PART II OTHER INFORMATION
Item 1. Legal Proceedings 15
Item 2. Changes in Securities and Use of Proceeds 15
Item 6. Exhibits and Reports on Form 8-K 15
Signatures 15
</TABLE>
<Page 3>
BIOSONICS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
BALANCE SHEETS
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<S> <C> <C>
Unaudited
MARCH DECEMBER 31,
31, 1999 1998
ASSETS
Current assets
Cash $100 $100
Accounts receivable (net of allowance
for doubtful accounts
of $3,000 in 1999 and 1998) 2,831 5,101
Interest receivable 5,442 3,534
Inventory 53,889 54,255
Notes Receivable 15,000 15,000
Advances to affiliate (net of allowance
for doubtful accounts of $50,000 in 1998 67,602 65,293
Prepaid expenses and other current assets 4,279 0
Total current assets 149,143 143,283
Equipment, furniture and leaseholds, net
of accumulated depreciation 31,584 17,452
Deposits 100 8,531
Total assets $180,827 $169,266
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current Liabilities
Notes payable, officer and affiliate $91,000 $91,000
Notes payable, other 208,000 218,000
Accrued payroll, officer 901,250 875,500
Accrued interest, officer and affiliate 77,548 75,501
Accrued interest, other 228,410 225,343
Accounts payable and accrued expenses 892,435 905,965
Advances from affiliates 123,450 62,450
Payments received from unissued debentures 187,000 187,000
Total current liabilities 2,709,093 2,640,759
Long Term Liabilities
Capital lease payable 15,666 0
Total long term liabilities 15,666 0
Shareholders' deficit
Common stock - authorized 750,000,000
shares at .0001 par value; Issued and
outstanding 327,994,536 and 32,800 32,700
326,994,536 shares at March 31, 1999
and December 31, 1998 respectively
Capital in excess of par value 13,199,217 13,169,317
Notes receivable from sale of stock (142,500) (192,500)
Deficit accumulated during development
stage (15,633,449)(15,481,010)
Total shareholders' deficit (2,543,932) (2,471,493)
Total liabilities and shareholders' $180,827 $169,266
deficit
</TABLE>
The accompanying note is an integral part of these financial
statements
<Page 4>
BIOSONICS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENTS OF OPERATIONS
(UNAUDITED)
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<S> <C> <C> <C>
THREE MONTHS ENDED 11/13/80
MARCH 31 (INCEPTION)
TO MARCH 31,
1999 1998 1999
Sales $3,575 $3,070 $878,780
Cost of sales 366 2,540 692,471
Gross profit 3,209 530 186,309
Development stage expenses
Research and development
costs 0 0 4,166,833
Professional fees 41,289 31,874 3,157,464
Interest expense 6,781 0 351,146
Other development stage
expenses 110,661 117,252 9,038,361
Total development stage
expenses 158,731 149,126 16,713,804
Less: revenues from cost
recovery program - - 118,082
Net development stage
expenses 158,731 149,126 16,595,722
Other Income
Investment and other income 3,083 1,955 768,344
Gain on sale of fixed assets - - 7,620
Total other income 3,083 1,955 775,964
Net loss $(152,439) $(146,641)$(15,633,449)
Loss per common share ($.00) ($.00) ($.05)
</TABLE>
The accompanying note is an integral part of these financial
statements.
<Page 5>
BIOSONICS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENTS OF DEFICIT ACCUMULATED DURING DEVELOPMENT STAGE
(UNAUDITED)
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<S> <C> <C> <C>
THREE MONTHS ENDED 11/13/80
MARCH 31 (INCEPTION)
TO MARCH 31,
1999 1998 1999
BEGINNING BALANCE $(15,481,010) $(14,784,832) $ -
NET LOSS (152,439) (146,641) (15,633,449)
ENDING BALANCE $(15,633,449) $(14,931,473) $(15,633,449)
</TABLE>
The accompanying note is an integral part of these financial
statements.
<Page 6>
BIOSONICS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
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<S> <C> <C> <C>
THREE MONTHS 11/13/80
ENDED (INCEPTION)
MARCH 31, TO MARCH
1999 1998 31, 1999
Cash flows used in operating activities
Net loss $(152,439) $(146,641) $(15,633,449)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation and amortization 1,927 1,201 394,080
Increase in allowance for
doubtful accounts - - 33,000
Increase in reserve for
inventory obsolescence - - 27,000
Loss on lease abandonment - - 19,550
Gain on sale of fixed assets - - (7,620)
Common stock issued for services 30,000 - 619,059
Common stock options issued
for services - - 190,928
Common stock issued for inventory - - 136,500
Common stock issued for product
rights - - 12,501
Change in operating assets and
liabilities
Accounts receivable 362 (1,375) (11,273)
Inventory 366 347 (80,889)
Prepaid expenses and other current
assets (4,279) (1,613) (4,279)
Accrued payroll, officer 25,750 25,750 901,250
Accrued interest, officer and
affiliates 2,047 2,351 151,751
Accrued interest, other 3,067 6,651 228,410
Accounts payable and accrued
expenses (13,530) (34,774) 960,437
Long term payable 15,666 - 15,666
Advances from (to) affiliates 58,691 (18,887) 149,168
Total adjustments 120,067 (20,349) 3,735,239
Net cash used in operating
activities ($32,372)($166,990) ($11,898,210)
</TABLE>
The accompanying note is an integral part of these financial
statements
<Page 7>
BIOSONICS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENTS OF CASH FLOWS (CONTINUED)
(UNAUDITED)
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<S> <C> <C> <C>
11/13/80
THREE MONTHS ENDED (INCEPTION)
MARCH 31 TO MARCH
1999 1998 31, 1999
Cash flows from investing activities
Sale of fixed assets $ - $ - $10,825
Capital expenditures (16,059) - (395,275)
Issuance of note receivable - - (45,000)
(Increase) decrease in deposits 8,431 - (100)
Decrease in note receivable 50,000 - 80,000
Decrease in capitalized patents - - (45,690)
Net cash provided (used) in
investing activities $42,372 $ - $(395,240)
Cash flows from financing activities
Proceeds for unissued debentures
and securities $ $ $498,000
Principal payments of note
payable (10,000) - (391,000)
Proceeds from issuance
of note payable - 84,330 1,006,444
Increase in capitalized
organization costs - - (7,453)
Proceeds from issuance of
preferred stock - - 1,105,000
Proceeds from issuance of
common stock - 82,500 10,082,559
Net cash provided by financing
activities $(10,000) $166,830 $12,293,550
Net increase (decrease)
in cash and - (160) 100
cash equivalents
Cash and cash equivalents,
beginning 100 260 -
Cash and cash equivalents,
ending $100 $100 $100
</TABLE>
The accompanying note is an integral part of these financial
statements.
<Page 8>
BIOSONICS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENT OF SHAREHOLDERS' EQUITY - PAID-IN CAPITAL
NOVEMBER 13, 1980 (INCEPTION) TO SEPTEMBER 30, 1998
(UNAUDITED)
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<S> <C> <C> <C> <C>
DATE STOCK NUMBER PRICE PER AMOUNT
ISSUED OF SHARES SHARE RECEIVED NOTES
1/13/81 150,000,000 0.0001 15,001 (A)
1/31/81 4,400,000 0.0250 110,000 (B)
1981 400,000 0.0250 10,000 (C)
1981 20,000,000 0.0500 1,000,000 (B)
1982 20,000 0.4000 8,000 (C)
1982 97,500 0.2000 19,500 (C)
1982 1,000,000 0.0600 60,100 (D)
1983 52,500 0.2000 10,500 (C)
1983 75,000 0.3050 22,875 (E)
1983 25,000 0.2350 5,875 (E)
1983 20,000 0.5000 10,000 (C)
12/29/83 7,300,000 0.5000 3,650,000 (F)
1984 390 1.0000 390 (G)
1984 5,948 0.5000 2,975 (G)
1984 1,000 0.3750 375 (C)
1984 72,500 0.2500 18,125 (C)
1984 2,000 0.3750 750 (H)
1984 4,000 0.2500 1,000 (C)
1984 350,000 0.2000 70,000 (C)
1985 26,500 0.2810 7,453 (C)
1985 20,000 0.2500 5,000 (H)
1985 500 0.5000 250 (G)
1985 5,000 0.3440 1,719 (C)
1985 50 1.0000 50 (G)
1985 2,000 0.3750 750 (H)
1985 7,500 0.1560 1,172 (C)
1986 6,882 0.5000 3,472 (G)
1986 85,000 0.1875 15,938 (H)
1986 11,650 0.2810 3,276 (H)
1986 100,000 0.2190 21,875 (H)
1986 10,665,000 0.1810 1,929,737 (I)
1986 202,000 0.1560 31,562 (H)
1986 70,000 0.3130 21,875 (H)
1986 134,855 0.2000 26,939 (H)
1987 7,613,551 0.2000 1,522,710 (G)
1987 476,110 0.2950 140,478 (H)
1987 7,000 0.1590 1,113 (B)
1987 15,000 0.3120 4,687 (C)
1987 240,000 0.2000 48,000 (B)
1987 100,000 0.2180 21,875 (C)
</TABLE>
The accompanying note is an integral part of these financial
statements.
<Page 9>
BIOSONICS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENT OF SHAREHOLDERS' EQUITY - PAID-IN CAPITAL (CONTINUED)
NOVEMBER 13, 1980 (INCEPTION) TO SEPTEMBER 30, 1998
(UNAUDITED)
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<S> <C> <C> <C> <C>
DATE STOCK PRICE PER AMOUNT
ISSUED NUMBER OF SHARES SHARE RECEIVED NOTES
1988 125,000 0.2500 31,250 (C)
1988 2,500 0.2180 547 (H)
1988 10,000 0.2000 2,000 (G)
1988 100,000 0.2500 25,000 (B)
1988 4,227,000 0.2000 845,400 (B)
1988 25,000 0.1560 3,906 (C)
1988 11,000 0.0130 143 (H)
1989 400,000 0.0800 32,000 (B)
1989 3,000 0.0938 282 (H)
1989 100,000 0.0800 8,000 (B)
1990 25,000 0.0100 250 (H)
1990 20,311,000 0.0100 203,110 (B)
1990 10,500,000 0.0100 105,000 (B)
1991 1,100,000 0.0100 11,000 (B)
1991 100,000 0.0100 1,000 (H)
1991 48,000 0.0625 3,000 (J)
1991 32,000 0.0625 2,000 (J)
1991 1,100,000 0.0100 11,000 (J)
1991 1,100,000 0.0100 11,000 (B)
1991 400,000 0.0100 4,000 (C)
1995 0 0.0000 87,750 (Q)
1996 1,250,000 0.0800 100,000 (K)
1996 11,375,000 0.0286 325,000 (K)
1996 16,100,000 0.0500 805,000 (K)
1996 1,300,000 0.0100 13,000 (L)
1996 12,900,000 0.0200 258,000 (L)
1996 300,000 0.0300 9,000 (M)
1996 280,000 0.0500 14,000 (M)
1996 400,000 0.0800 32,000 (M)
1996 100,000 0.0650 6,500 (M)
1996 250,000 0.0850 21,250 (M)
1996 (15,368,820) -0- (N)
1996 420,000 0.0238 10,000 (L)
1996 11,150,000 0.0200 223,000 (L)
1996 428,600 0.0350 15,000 (L)
1996 250,000 0.0400 10,000 (L)
1996 1,075,220 0.0500 53,761 (L)
1996 350,000 0.0258 9,032 (J)
1996 1,695,000 0.0345 59,175 (J)
1996 75,000 0.0400 3,000 (O)
1996 200,000 0.0500 10,000 (B)
</TABLE>
The accompanying note is an integral part of these financial
statements.
<Page 10>
BIOSONICS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENT OF SHAREHOLDERS' EQUITY - PAID-IN CAPITAL (CONTINUED)
NOVEMBER 13, 1980 (INCEPTION) TO SEPTEMBER 30, 1998
(UNAUDITED)
<TABLE>
<S> <C> <C> <C> <C>
DATE STOCK PRICE AMOUNT
ISSUED NUMBER OF SHARES PER SHARE RECEIVED NOTES
1996 - - 75,530 (Q)
1997 550,000 0.0500 27,500 (M)
1997 200,000 0.0500 10,000 (O)
1997 5,000,000 0.0100 50,000 (P)
1997 1,000,000 0.0200 20,000 (P)
1997 - - 14,398 (Q)
1997 11,130,600 0.0500 556,529 (R)
1997 500,000 0.0500 25,000 (P)
1997 40,000 0.0500 2,000 (M)
1997 80,000 0.0200 1,600 (L)
1997 1,600,000 0.0500 80,000 (R)
1998 1,650,000 0.0500 82,500 (R)
1998 100,000 0.0500 5,000 (O)
1998 2,730,000 0.0500 136,500 (S)
1998 1,100,000 0.0500 80,000 (R)
1998 - - 13,250 (Q)
1998 (1,600,000) - -0- (N)
1998 1,600,000 0.0500 80,000 (M)
1998 13,190,000 0.0250 329,750 (R)
1998 30,000 0.0500 1,500 (M)
1998 200,000 0.0250 5,000 (O)
1998 110,000 0.0200 2,200 (P)
1998 20,000 0.0250 500 (M)
1998 (100,000) 0.0800 (8,000) (T)
1999 1,000,000 0.0300 30,000 (M)
</TABLE>
TOTAL SHARES - COMMON STOCK 327,994,536
TOTAL PAID-IN CAPITAL $ 13,672,712
LESS: Notes Receivable for Stock Purchase 142,500
LESS: Offering Expenses 473,495
NET PAID-IN CAPITAL - COMMON STOCK $ 13,056,717
The accompanying note is an integral part of these financial
statements.
<Page 11>
BIOSONICS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENT OF SHAREHOLDERS' EQUITY - PAID-IN CAPITAL (CONTINUED)
NOVEMBER 13, 1980 (INCEPTION) TO SEPTEMBER 30 , 1998
(UNAUDITED)
NOTES
(A) $1 additional was paid on stock certificate #3.
(B) Cash purchases.
(C) Represents stock issued in consideration for services
rendered. The value assigned was based on the fair market
value of the stock on the date the transaction was
authorized.
(D) 1,000,000 common stock warrants were issued to the
underwriter, Monarch Funding Corporation, at par value
($.0001). On November 15, 1982, these warrants were
exercised at $.06 per share.
(E) Represents stock issued in consideration for services
rendered and $7,500 cash. The value assigned was based on
the fair market value of the stock on the date the
transaction was authorized.
(F) Stock issued as part of unit offering. Each unit consisted
of 2 shares common stock, 2 Series "A" warrants and 1
Series "B" warrant. No separate value was assigned to the
warrants.
(G) Issued pursuant to the exercise of warrants described in
(F).
(H) Issued pursuant to the employee incentive stock bonus plan.
(I) Issued as part of an offering completed March 26, 1986 for
cash and redemption of warrants described in (F).
(J) Liabilities converted to common stock.
(K) Preferred Stock transferred to Common Stock as per
agreement.
(L) Issued stock for monies received during time when common
stock was not able to be issued.
(M) Issued stock as payment for services rendered.
(N) Shares contributed by IMRCH.
(O) Issued stock as payment for interest on loans received.
(P) Issued pursuant to exercising stock purchase option.
(Q) Stock Options granted.
(R) Issued pursuant to a private offering.
(S) Issued stock as payment for Inventory that was repurchased
for previous Dry Mouth Center locations.
(T) Shares returned to the company and retired.
The accompanying note is an integral part of these
financial statements.
<Page 12>
BIOSONICS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
NOTE TO FINANCIAL STATEMENTS
SEPTEMBER 30 , 1998
Note 1 - The unaudited financial statements presented herein have
been prepared in accordance with the instructions to Form 10-QSB
and do not include all of the information and note disclosures
required by generally accepted accounting principles. These
statements should be read in conjunction with the financial
statements and notes thereto included in the Company's Form 10-K
annual report for the year ended December 31, 1998. In the
opinion of management, these financial statements include all
adjustments, consisting only of normal recurring adjustments,
necessary to summarize fairly the Company's financial position
and results of operations. The results of operations for the
three-month period ended March 31, 1999 may not be indicative of
the results that may be expected for the year ending December 31,
1999.
<Page 13>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
OPERATIONS.
PLAN OF OPERATIONS
Biosonics has been working with a legal firm located in
Washington DC to receive acceptance by the Health Care Financing
Administration ("HCFA"), for Medicare reimbursement of the
Salitron device (dry mouth). It has been a consistent time
consuming effort to receive this approval. Although Biosonics is
continuing their efforts with HCFA, the Company has decided that
it is no longer prudent to wait for this acceptance to generate
sales of our inventoried devices. Therefore, the Company is
initiating a sales/marketing program to ascertain statistics on
patients who suffer from dry mouth and are not relying on
Medicare to reimburse this device. Our Medical Team/Customer
Relations Department will continue on this program for the next
few months for further evaluation.
Upon the receipt of sufficient funds, the Company will put into
process a marketing plan for the Cystotron(trademark) device
(incontinence) which includes a six-month market study. The
purpose of the study is to provide further data for physicians to
assist them in deciding whether to prescribe the Cystotron System
for their patients. The company believes there is a sizable
market for the Cystotron, and the marketing of this product is
not depending on Medicare reimbursement.
Biosonics is also planning to develop a strategy to market its
products in the international market. The Company has initiated
contact with various companies in the European market. Further
development of this plan will require engineering aspects and the
qualification of the European CE mark for importing into Europe.
These steps have been initiated with the
engineering/manufacturing review of the products and the
compliance of ISO regulations.
Biosonics does not have any material commitments for capital
expenditures, although management is considering making capital
expenditures during 1999 in connection with the manufacturing of
the Cystotron System, if funds become available. The extent of
the development or testing, if any, of Biosonics' other devices
will depend on the availability of funds, and there is no
assurance that development or testing of the devices will occur
or be successful or that sufficient funds will be available.
FORWARD LOOKING STATEMENTS
All statements contained in this report that are not historical
facts, including but not limited to the Company's plans for
product development and marketing, are based on current
expectations. These statements are forward-looking (as defined
in the U.S. Private Securities Litigation Reform Act of 1995 and
the Act) in nature and involve a number of risks and
uncertainties. Such statements can be identified by the use of
forward-looking terminology such as "may", "will", "should",
"expect", "anticipate", "believe", "estimate" or "continue", or
the negative thereof or other variations thereon or comparable
terminology. Actual results may vary materially, as discussed
herein. The factors that could cause actual results to vary
materially include: The availability of capital to finance the
Company's operations on terms satisfactory to the Company; the
availability of clearances or approvals of the Company's products
by federal, state and foreign governmental authorities; the
market acceptance of the Company's products; the availability of
reimbursement by third part payors, including Medicare
reimbursement; product liability claims; the availability of
protection of the Company's patents and future litigation
relating to protection of its patent, trade secret and know-how;
the Company's dependence on Jack Paller, Chief Executive
Officer; general business and economic conditions and competition
from products that address the same or similar medical problems
as those addressed by the Company's products; and other risks
that may be described from time to time in the reports that the
Company will be required to file with the Commission. The
Company cautions potential investors not to place undue reliance
on any such forward-looking statements.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
Biosonics' primary sources of funds to date have been proceeds
from the sale of its securities and investment income on such
proceeds, including loans and advances for securities purchased
through private and public offerings. Biosonics will require
additional funds estimated to be approximately $3.0 million to
implement current manufacturing and marketing plans for the
Salitron and Cystotron. The Company will also require additional
funds in the immediate future to maintain the operations of the
Company.
The Company has developed a Y2K Plan that includes all office
equipment as well as purchasing, manufacturing and general
operations with other companies. The Company's newer computers
have been tested and passed all Y2K qualifications. The software
used primarily by the company has passed all Y2K qualifications,
and letters reflecting the approved status have been placed with
the Y2K Plan. The additional purchase of an office network
system including a server computer and software, will comply to
Y2K qualification and will be installed within the second and
third quarters. As based on the Plan, the Company has been
receiving Y2K compliance letters from all out-sourcing companies
it plans to work with. None of our manufactured products are
computer driven, therefore will not be effected by the "Y2K bug".
Net development stage expenses for the three months ended March
31, 1999 ($158,731) were higher then the comparable period of the
prior year ($149,126) due to additional costs associated with the
relocation of the office and the purchase of additional
equipment, security system and required furniture. Other
development stage expenses include primarily salaries, rent,
supplies, transfer agent fees, manufacturing, marketing, public
relations and travel expenses.
The Company's professional fees for the three months ended March
31, 1999 ($41,289) were higher than the comparable period on the
prior year ($31,874) due to a consulting fee of $30,000.
The Company's sales for the three months ended March 31, 1999
($3,575) were higher as compared to the same period of the prior
year ($3,070) The increase in sales resulted primarily from
maintaining contact with Patients and Physicians for sales of the
Salitron System and components of the Salitron System.
PART II OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES.
Biosonics issued 1,000,000 shares of its common stock for
contractual consulting services.
TEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
*3.1 Articles of Incorporation as amended (incorporated
by reference to Registrant's Quarterly Report on Form 10-Q for
the quarter ended September 30, 1996).
*3.5 By-laws of Registrant, as amended. (incorporated
by reference to Registrant's Annual Report or Form 10-K for the
year ended December 31, 1983 ["1983 Form 10-K"]).
*10.7 Lease dated September 9, 1998 between Biosonics
Inc. and 185 Commerce Drive Associates, L.P.
27 Financial Data Schedule
(b) Reports on Form 8-K:
None
* Incorporated by reference
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 thereunder duly
authorized.
BIOSONICS, INC.
Date: June 2 , 1999 By: /s/Jack Paller
Jack Paller, President, Chairman
and Executive Officer, Financial
Officer and Principal Accounting
Officer and Sole Director.
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000352715
<NAME> BIOSONICS, INC.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<EXCHANGE-RATE> 1
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 8,273
<ALLOWANCES> 3,000
<INVENTORY> 53,889
<CURRENT-ASSETS> 149,143
<PP&E> 197,759
<DEPRECIATION> (166,175)
<TOTAL-ASSETS> 180,827
<CURRENT-LIABILITIES> 2,709,093
<BONDS> 0
0
0
<COMMON> 32,800
<OTHER-SE> (15,633,449)
<TOTAL-LIABILITY-AND-EQUITY> 180,827
<SALES> 3,575
<TOTAL-REVENUES> 6,658
<CGS> 366
<TOTAL-COSTS> 366
<OTHER-EXPENSES> 158,731
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6,781
<INCOME-PRETAX> (152,439)
<INCOME-TAX> (152,439)
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (152,439)
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
