<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10Q-SB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For Quarter Ended November 30, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____ to _____
Commission File No. 0-12240
BIO-LOGIC SYSTEMS CORP.
(Exact name of small business issuer as specified in its charter)
<TABLE>
<S> <C>
Delaware 36-3025678
(State or other jurisdiction of incorporation or (I.R.S. Employer Identification Number)
organization)
One Bio-logic Plaza, Mundelein, Illinois 60060
(Address of principal executive offices) (zip code)
</TABLE>
Registrant's telephone number, including area code (847-949-5200)
(Former address, if changed since last report): not applicable
Check whether the issuer (1) has filed all reports required to be
filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the issuer 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 issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding at January 12, 1998
Common Stock $.01 par value 3,982,354 shares
Traditional Small Business Disclosure Format
YES X NO
--- ---
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Part I. Financial Information
Page
<S> <C>
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets at November 30, 1997
and February 28, 1997 3
Condensed Consolidated Statements of Operations and
Retained Earnings for the three and nine months ended
November 30, 1997 and 1996 4
Condensed Consolidated Statements of Cash Flows for
the nine months ended November 30, 1997 and 1996 5
Notes to Condensed Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K 11
Signatures 15
</TABLE>
<PAGE>
Bio-logic Systems Corp.
Form 10Q-SB
Part 1. Financial Information
Item 1 Financial Statements
Condensed Consolidated Balance Sheets
(Unaudited)
<TABLE>
<CAPTION>
November 30, 1997 February 28, 1997
----------------- -----------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 3,130,184 $ 1,134,310
Marketable securities - held to maturity 1,500,396 1,291,384
Accounts receivable, less allowance for doubtful
accounts of $204,531 at November 30, 1997
and $152,068 at February 28, 1997 4,384,271 3,583,673
Inventories 3,349,287 3,055,429
Prepaid expenses 74,561 141,928
Deferred income taxes 262,039 262,039
----------- ------------
Total current assets 12,700,738 9,468,763
PROPERTY, PLANT AND EQUIPMENT - Net 1,836,557 1,827,859
MARKETABLE SECURITIES - Held to maturity ---- 1,501,287
OTHER ASSETS 945,231 1,126,493
---------- ------------
TOTAL ASSETS $15,482,526 $13,924,402
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 132,054 $ 126,343
Accounts payable 524,205 484,323
Accrued salaries & payroll taxes 828,514 560,676
Accrued interest & other expenses 432,977 309,861
Accrued income taxes 340,375 48,931
Deferred revenue 343,993 293,589
----------- -----------
Total current liabilities 2,602,118 1,823,723
LONG-TERM DEBT - Less current maturities 462,680 562,879
DEFERRED INCOME TAXES 338,398 338,398
COMMITMENTS --- ---
--------- ----------
Total liabilities 3,403,196 2,725,000
--------- ----------
SHAREHOLDERS' EQUITY:
Capital stock, $.01 par value. authorized 10,000,000
shares, issued and outstanding 3,982,354 shares at,
November 30, 1997 and 4,229,519 at February 28, 1997 39,823 42,295
Additional paid-in capital 4,684,061 5,478,464
Retained Earnings 7,355,446 6,561,349
---------- -----------
Total shareholders' equity 12,079,330 12,082,108
Less treasury stock, at cost: 286,310 shares -- (882,706)
---------- ----------
Shareholders equity - net 12,079,330 11,199,402
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $15,482,526 $13,924,402
========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
-3-
<PAGE>
Bio-logic Systems Corp.
Form 10Q-SB
Condensed Consolidated Statements of Operations and Retained Earnings
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
November 30, November 30,
------------------------------- ------------------------
1997 1996 1997 1996
--------------- ------------- -----------------------
<S> <C> <C> <C> <C>
NET SALES $4,549,481 $4,321,251 $13,304,511 $10,740,897
COST OF SALES 1,390,959 1,462,115 4,258,481 3,707,826
---------- ---------- ---------- ----------
Gross Profit 3,158,522 2,859,136 9,046,030 7,033,071
---------- ---------- ---------- ----------
OPERATING EXPENSES:
Selling, general & administrative 2,066,456 1,835,130 6,193,026 5,237,513
Research & development 608,875 558,588 1,809,960 1,391,931
---------- ---------- ---------- ----------
Total operating expenses 2,675,331 2,393,718 8,002,986 6,629,444
---------- ---------- ---------- ----------
OPERATING INCOME (LOSS) 483,191 465,418 1,043,044 403,627
OTHER INCOME (EXPENSE):
Interest income 56,084 52,140 156,371 167,019
Interest expense (10,694) (12,190) (32,299) (40,201)
Miscellaneous 1,758 1,778 2,544 2,522
---------- ---------- ---------- ----------
TOTAL OTHER INCOME 47,148 41,728 126,614 129,340
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES 530,339 507,146 1,169,660 532,967
PROVISION FOR INCOME TAXES 169,700 148,500 375,563 172,958
---------- ---------- ---------- ----------
NET INCOME $ 360,639 $ 358,646 $ 794,097 $ 360,009
========== ========== ========== ==========
RETAINED EARNINGS,
BEGINNING OF PERIOD 6,994,807 5,878,867 6,561,349 5,877,504
---------- ---------- ---------- ----------
RETAINED EARNINGS,
END OF PERIOD $7,355,446 $6,237,513 $7,355,446 $6,237,513
========== ========== ========== ==========
EARNINGS PER SHARE:
Primary and Fully Diluted $0.09 $0.09 $0.19 $0.09
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these statements.
-4-
<PAGE>
Bio-logic Systems Corp.
Form 10Q-SB
Condensed Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
November 30,
-----------------
1997 1996
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 794,097 $ 360,009
Adjustments to reconcile net income to net cash flows
from (used in) operating activities:
Depreciation and amortization 275,347 271,789
Provision for bad debts 72,000 83,000
Provision for inventory valuation 231,975 222,975
Deferred income taxes
(Increases) decreases in assets:
Accounts receivable (872,598) (693,486)
Inventories (525,833) (424,394)
Prepaid expenses 67,367 4,821
Increases (decreases) in liabilities:
Accounts payable and overdrafts 39,882 73,381
Accrued liabilities and deferred revenue 441,358 28,568
Accrued income taxes 291,444 (135,610)
----------- -----------
Net cash flows from (used in) operating activities 815,039 (208,947)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (129,695) (151,338)
Other assets 26,912 (129,361)
Proceeds from maturities of investments 1,292,275 411,760
Purchases of marketable securities held to maturity -- (1,501,584)
----------- -----------
Net cash flows from (used in) investing activities 1,189,492 (1,370,523)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options 85,831 951
Purchase of treasury stock -- (882,705)
Payments of long-term debt (94,488) (88,425)
----------- -----------
Net cash flows from (used in) financing activities (8,657) (970,179)
----------- -----------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,995,874 (2,549,649)
CASH AND CASH EQUIVALENTS - Beginning of period 1,134,310 3,249,071
----------- -----------
CASH AND CASH EQUIVALENTS - End of period $ 3,130,184 $ 699,422
=========== ===========
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS:
Cash paid during the period for:
Interest $ 32,889 $ 44,398
=========== ===========
Income Taxes $ 120,000 $ 300,780
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
-5-
<PAGE>
Bio-logic Systems Corp.
Form 10Q-SB
Notes to Condensed Consolidated Financial Statements
1. The information furnished in this report reflects all adjustments
which are, in the opinion of management, necessary to a fair
statement of the results for the interim periods. The results of
operations for the three and nine months ended November 30, 1997 are
not necessarily indicative of the results to be expected for the full
year.
2. Inventories
Inventories, consisting principally of components, parts and
supplies, are stated at the lower of cost, determined by the
first-in, first-out method or market.
3. Net Income Per Share
Primary earnings per share are based on the weighted average number
of common and dilutive common equivalent shares outstanding during
each quarter. The weighted average shares for computing primary
earnings per share were 4,192,309 and 4,028,336 for the quarters
ended November 30, 1997 and 1996, respectively, and 4,106,043 and
4,189,846 for the nine months ended November 30, 1997 and 1996,
respectively.
Fully diluted earnings per share are based on the weighted average
number of common and dilutive common equivalent shares calculated at
quarter-end market prices. The weighted average shares for computing
fully diluted earnings per share were 4,192,309 and 4,028,336 for the
quarters ended November 30, 1997, and 1996, respectively, and
4,140,744 and 4,189,846 for the nine months ended November 30, 1997
and 1996.
4. Accounting for Income Taxes
The Company follows Statement of Financial Accounting Standards
(SFAS) No. 109, "Accounting for Income Taxes," which requires an
asset and liability approach of accounting for income taxes. Deferred
tax assets and liabilities are computed annually for differences
between financial statement basis and tax basis of assets,
liabilities and available general business tax credit carry-forwards.
A valuation allowance is established when necessary to reduce
deferred tax assets to the amount expected to be realized.
-6-
<PAGE>
Bio-logic Systems Corp.
Form 10Q-SB
5. Marketable Securities
Effective March 1, 1994, the company adopted Statement of Financial
Accounting Standards No.115, "Accounting for Certain Investments in
Debt and Equity Securities" (SFAS No. 115.)
As required by SFAS 115, securities are classified into three
categories: trading, held-to-maturity, and available for sale. Debt
securities that the Company has the positive intent and ability to
hold to maturity are classified as held-to-maturity debt securities.
The entire Company's portfolio of debt securities has been classified
as held-to-maturity and are stated at cost, with premiums amortized
and discounts accredited using the simple-interest method.
Investment Securities Held-To-Maturity
The amortized cost, unrealized gains, unrealized losses and estimated fair
values of investment securities are summarized as follows:
<TABLE>
<CAPTION>
Gross Gross Estimated
Unrealized Unrealized Fair
Amortized Cost Gain Losses Value
-------------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
November 30, 1997
- -----------------
US Government securities $1,500,396 $2,424 $0 $1,502,820
November 30, 1996
- -----------------
US Government securities $2,801,584 $ 10,131 $0 $2,811,715
</TABLE>
At November 30, 1997, the maturities of marketable securities held-to-maturity
are as follows:
Estimated Fair
Term to Maturity Amortized Cost Value
------------- --------------
Due one year or less $1,500,396 $1,502,820
Due after one year through
five years --- ---
---------- ----------
Total $1,500,396 $1,502,820
========== ==========
-7-
<PAGE>
Bio-logic Systems Corp.
Form 10Q-SB
6. Earnings per Share Presentation
In February 1997, the Financial Accountings Standards Board issued
SFAS No. 128, "Earnings per Share," which requires presentation of
basic and diluted earnings per share together with disclosure of how
the per share amounts were computed. The adoption of SFAS No. 128 is
effective for financial statements issued after December 15, 1997.
Early adoption of the new standard is not permitted. The adoption of
SFAS No. 128 is not expected to have a material impact on the
disclosure of earnings per share in the Company's financial
statements.
7. Treasury Stock Retirement
During 1997, 286,310 shares of the Corporation's common stock
purchased in 1996 for a total cost of $882,706, and held in treasury
at February 28, 1997, were retired.
8. Stock Repurchase
On January 9, 1998 the Board of Directors of the Company authorized
the repurchase, from time to time, of up to 100,000 shares of the
Company's common stock.
-8-
<PAGE>
Bio-logic Systems Corp.
Form 10Q-SB
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Except for the description of historical facts contained herein, this
Form 10Q-SB contains certain forward looking statements that involve risks and
uncertainties as detailed herein and from time to time in the Company's
filings with Securities and Exchange Commission and elsewhere. Such statements
are based on management's current expectations and are subject to a number of
factors and uncertainties which could cause actual results to differ
materially from those described in the forward-looking statements. These
factors include, among others, fluctuations in sales and operating results,
risks associated with international operations; regulatory, competitive, and
contractual risks; the effects of economic conditions; any delays or
additional costs associated with the introduction of the Company's AuDX(TM)
product and the availability of capital to finance planned growth, as well as
other risk detailed from time to time in the company's filings with the
Securities and Exchange Commission.
Liquidity and Capital Resources
As of November 30, 1997 the Company had working capital of
$10,098,620 including $4,630,580 in cash, cash equivalents and short-term
investments. The Company believes its capital and liquidity requirements for
the foreseeable future will be satisfied by available and internally generated
funds. To the extent the Company's capital and liquidity requirements are not
satisfied internally, the Company may utilize a $1,000,000 unsecured bank line
of credit, all of which is currently available. Borrowings under this line
will bear interest at the bank's prime rate.
For the nine months ended November 30, 1997, cash flow increased by
$1,995,874 and net cash flow from operations increased by $815,039. Net income
for the nine months ended November 30, 1997 increased net cash flow from
operating activities by $794,097 compared to only $360,009 for the nine months
ended November 30, 1996. In the nine months ended November 30, 1997,
marketable securities of approximately $1,292,000 matured and provided net
cash flow from investing activities.
Results of Operations
Net sales for the three month period ended November 30, 1997 ("1997
three months") increased by approximately 5% to $4,549,481 from $4,321,251 in
the three month period ended November 30, 1996 ("1996 three months."), while
net sales for the nine month period ended November 30, 1997 ("1997 nine
months") increased by 24% to $13,304,511 compared to $10,740,897 in the nine
month period ended November 30, 1996 ("1996 nine months.") Domestic sales
increased by 17% and 32% to $3,678,529 and $10,590,092 for the 1997 three and
nine months, respectively, compared to $3,141,103 and $8,038,149 for the 1996
three and nine months,
-9-
<PAGE>
Bio-logic Systems Corp.
Form 10Q-SB
respectively. Foreign sales of $870,952 and $2,714,419 contributed 19% and 20%
of net sales for the 1997 three and nine months, respectively, a decrease of
26% from $1,180,148 for 1996 three months, while an increase of .4% from
$2,702.748 for the 1996 nine months. The foreign sales in the 1997 three
months were negatively impacted by the Far Eastern monetary crisis. The
Company's increase in net sales for both the 1997 three and nine months was
the result of higher unit sales of the Ceegraph, Sleep, and OAE product lines.
Cost of sales increased to $1,390,959 and $4,258,481 for the 1997
three and nine months, respectively, compared to $1,462,115 and $3,707,826 for
the 1996 three and nine months, respectively. Cost of sales as a percentage of
net sales decreased however, to 31% and 32% for the 1997 three and nine
months, respectively, from 34% and 35% for the 1996 three and nine months,
respectively. This decrease in cost of sales as a percentage of net sales in
the 1997 three and nine months was primarily the result of sales of higher
margin products and fixed manufacturing costs as compared to higher sales
prices.
Selling, general and administrative expenses increased by 13% and 18%
to $2,066,456 and $6,193,026 during the 1997 three and nine months,
respectively, compared to $1,835,130 and $5,237,513 for the 1996 three and
nine months, respectively. Selling, general and administrative expenses as a
percentage of net sales, increased to 45% from 42% for the 1997 and 1996 three
months, respectively, and decreased to 47% from 49% for the 1997 and 1996 nine
months, respectively. The increases in the 1997 three and nine months reflects
additional employee and travel costs, higher sales commissions, plus increased
marketing expenses for product promotions and trade show exhibitions,
including expenses for the introduction of the Company's AuDX product. Future
marketing expenses will continue to be higher until expanded coverage of AuDX
is achieved.
Research and development costs increased by 9% and 30% to $608,875
and $1,809,960 for the 1997 three and nine months, respectively, from $558,588
and $1,391,931 for the 1996 three and nine months, respectively. As a
percentage of net sales, total research and development costs remained at 13%
for the 1997 and 1996 three months while increasing to 14% from 13% for the
1997 and 1996 nine months, respectively. The increase in costs were partially
due to higher individual salaries plus the reduction in the capitalization of
certain research and development costs aligned with specific identifiable
future products. The capitalization of products under development amounted to
approximately $0 and $144,400 during the nine months ended November 30, 1997
and 1996, respectively. Amortization expense of these capitalized research and
development costs increased to $137,690 for the 1997 nine months compared to
$54,092 in 1996 nine months. Biologic will continue to invest in research and
development, including with respect to it's AuDX product, regularly upgrading
its core neurology, audiology and sleep product lines to second and third
generation technologies, and adding enhanced features.
The Company had operating income of $483,191 and $1,043,044 for the
1997 three and nine months, respectively, compared to operating income of
$465,418 and $403,627 for 1996 three and
-10-
<PAGE>
Bio-logic Systems Corp.
Form 10Q-SB
nine months, respectively. The increase in operating income for the 1997 nine
months was the result of higher net sales with higher gross margins partially
offset by higher selling, general and administrative expenses and research and
development costs.
Net interest income decreased to $124,072 for the 1997 nine months
compared to $126,818 for the 1996 nine months. This decrease reflects lower
investment returns on marketable securities offset by lower interest expense
on long term debt.
The Company had income tax expense of $169,700 and $375,563 or 32% of
net income before taxes for each of the 1997 three and nine months, compared
to $148,500 and $172,958 or 29% and 32% of net income before taxes for the
1996 three and nine months, respectively. The company's income tax rate
differs from the federal statutory rate of 34% due to the differences between
financial statement basis and tax basis of assets, liabilities and available
general business tax credit carry-forwards.
The Company had net income of $360,639 and $794,097, or $.09 and
$0.19 per share, for the 1997 three and nine months, respectively, compared to
net income of $358,646 and $360,009, or $0.09 and $0.09, per share for the
1996 three and nine months, respectively. Although, the Company attributes the
higher earnings in the nine month period to higher net sales partially offset
by higher selling, general and administrative and research and development
costs, management expects that the higher expenses involved with the
marketing, R&D and production of its AuDX product will continue to affect net
income results until expanded market coverage of AuDX is achieved.
-11-
<PAGE>
Bio-logic Systems Corp.
Form 10Q-SB
Item 6. Exhibits and Reports on 8-K
(a) Exhibits
3.1 Certificate of Incorporation, Certificate of Amendment to
Certificate of Incorporation, Agreement of Merger and
Certificate of Merger and By-Laws (1)
3.2 Certificate of Amendment to Certificate of Incorporation (7)
10.1 Lease between the Company and Harris Trust & Savings Bank
dated August 9, 1983 (2)
10.2 Technology License Agreement between the Company and
Neurographic Technologies dated August 13, 1984 (3)
10.3 Real Estate Sale Contract between the Company and First
National Bank of Lake Forest, as Trustee, dated December 23,
1985 (4)
10.4 Loan Agreement between the Company and Village of Mundelein,
Illinois dated as of December 1, 1985 (4)
10.5 Mortgage and Security Agreement between the Company and
Village of Mundelein, Illinois dated as of December 1, 1985
(4)
10.6 Bond Purchase Agreement between the Company and First
American Bank of Dundee dated as of December 1, 1985 (4)
10.7 Agreement among Gabriel Raviv, Gil Raviv, Charles Z.
Weingarten and the Company (5)
10.8 Employment Agreement between the Company and Gabriel Raviv
(5)
10.9 Employment Agreement between the Company and Gil Raviv (5)
10.10 Form of Export Property Sale, Commission and Lease Agreement
between the Company and Bio-logic International Corporation
(6)
10.11 Agreement and General Release between the Company and Gil
Raviv (9)
10.12 Letter dated May 2, 1994 from First American Bank to the
Company (10)
10.13 Letter of Intent dated June 30, 1994 by and among the
Company, Luther Medical Products, Inc. and Neuro
Diagnostics, Inc. (11)
10.14 Asset Purchase Agreement dated as of July 1, 1994 by and
among the Company, NDI Acquisition Corp., Luther Medical
Products, Inc. and Neuro Diagnostics, Inc. (12)
10.15 1994 Stock Option Plan, as amended (13)
21. Subsidiaries of the Company (8)
23.1 Consent of Independent Auditors
27. Financial Data Schedule
- --------------------
(1) Incorporated by reference from the Company's Registration Statement
on Form S-18 filed on August 7, 1981 (File No. 2-73587-C).
(2) Incorporated by reference from the Company's Report on Form 10-Q for
the quarter ended August 31, 1983.
-12-
<PAGE>
Bio-logic Systems Corp.
Form 10Q-SB
(3) Incorporated by reference from the Company's Annual Report on Form
10-K for the year ended February 28, 1985.
(4) Incorporated by reference from the Company's Report on Form 10-Q for
the quarter ended November 30, 1985.
(5) Incorporated by reference from the Company's Registration Statement
on Form S-1 (File No. 33-5471).
(6) Incorporated by reference from the Company's Report on Form 10-Q for
the quarter ended May 31, 1986.
(7) Incorporated by reference from the Company's Annual Report on Form
10-K for the Fiscal Year ended February 28, 1987.
(8) Incorporated by reference from the Company's Annual Report on Form
10-K for the Fiscal Year ended February 28, 1990.
(9) Incorporated by reference from the Company's Annual Report on Form
10-K for the Fiscal Year ended February 28, 1993.
(10) Incorporated by reference from the Company's Annual Report on Form
10-K for the Fiscal Year ended February 28, 1994.
(11) Incorporated by reference from the Company's Report on Form 10-Q for
the quarter ended May 31, 1994.
(12) Incorporated by reference from the Company's Report on Form 10-Q for
the quarter ended August 31, 1994.
(13) Incorporated by reference from the Company's Proxy Statement for its
1997 Annual Meeting of Stockholders
- --------------------
-13-
<PAGE>
Bio-logic Systems Corp.
Form 10Q-SB
Signatures
Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
Date: January 14, 1998 By: /s/ Gabriel Raviv
-----------------
Gabriel Raviv, President
Date: January 14, 1998 By: /s/ William K. Roenitz
----------------------
William K. Roenitz,
Controller and Treasurer
-15-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> FEB-28-1998
<PERIOD-END> NOV-30-1997
<CASH> $3,130,184
<SECURITIES> 1,500,396
<RECEIVABLES> 4,384,271
<ALLOWANCES> 204,531
<INVENTORY> 3,349,287
<CURRENT-ASSETS> 12,700,738
<PP&E> 4,593,535
<DEPRECIATION> 2,756,978
<TOTAL-ASSETS> 15,482,526
<CURRENT-LIABILITIES> 2,602,118
<BONDS> 594,734
0
0
<COMMON> 39,823
<OTHER-SE> 12,039,507
<TOTAL-LIABILITY-AND-EQUITY> 15,482,526
<SALES> 13,304,511
<TOTAL-REVENUES> 13,304,511
<CGS> 4,258,481
<TOTAL-COSTS> 4,258,481
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 72,000
<INTEREST-EXPENSE> 32,889
<INCOME-PRETAX> 1,169,660
<INCOME-TAX> 375,563
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 794,097
<EPS-PRIMARY> $0.19
<EPS-DILUTED> $0.19
</TABLE>
