<TABLE>
HAMPTON INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<CAPTION>
June 29, July 1, December 30,
1996 1995 1995
<S> <C> <C> <C>
ASSETS
Current assets:
Cash $ 22,660 $ 63,015 $ 351,982
Accounts receivable - net 14,627,238 18,197,063 22,283,271
Inventories 56,698,465 73,268,571 46,314,931
Deferred income tax benefits 1,896,463 3,576,241 1,106,963
Other current assets 1,220,291 727,635 1,290,823
------------ ------------ ------------
Total current assets 74,465,117 95,832,525 71,347,970
Property, plant and equipment - net 18,014,916 20,241,526 19,601,188
Assets held for sale - net 1,087,312 1,399,640 937,916
Investments in and advances to
unconsolidated affiliates 1,628,439 1,518,027 1,675,853
Other assets 1,053,096 678,908 707,998
------------ ------------ ------------
$ 96,248,880 $119,670,626 $ 94,270,925
============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable - banks and current
maturities of long-term debt $ 18,719,925 $ 30,846,618 $ 20,612,673
Accounts payable 9,126,774 12,196,579 10,896,560
Accrued liabilities 2,104,871 3,584,477 2,289,907
Income taxes - 70,320 48,183
------------ ------------ ------------
Total current liabilities 29,951,570 46,697,994 33,847,323
Deferred income tax liabilities 817,962 1,494,483 948,662
Long-term debt 12,750,012 18,665,685 5,304,540
Retirement plan obligations 4,066,084 4,219,677 4,059,287
Stockholders' equity 48,663,252 48,592,787 50,111,113
------------ ------------ ------------
$ 96,248,880 $119,670,626 $ 94,270,925
============ ============ ============
</TABLE>
Note: The consolidated balance sheet at December 30, 1995 has been taken
from the audited financial statements and condensed.
See notes to consolidated financial statements.
I-1
<TABLE>
HAMPTON INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Twenty-Six
Weeks Ended
June, 29 July, 1
1996 1995
------------ ------------
<S> <C> <C>
Net sales $ 61,231,250 $ 65,137,429
------------ ------------
Costs and expenses:
Cost of products sold 48,965,326 53,423,324
Selling, general and administrative 13,971,606 14,656,040
Equity in loss (earnings) of 49,066 (5,613)
unconsolidated affiliates
Provision for restructuring costs - 1,211,077
Gain on disposal of assets (785,090) (47,217)
------------ ------------
Operating loss (969,658) (4,100,182)
Interest 1,398,403 1,521,797
------------ ------------
Loss before income tax benefit (2,368,061) (5,621,979)
Income tax benefit (920,200) (1,939,800)
------------ ------------
Net loss $ (1,447,861) $ (3,682,179)
============ ============
Net loss per common share $(.32) $(.80)
==== ====
Average common shares outstanding 4,585,629 4,585,629
======== ========
</TABLE>
See notes to consolidated financial statements.
I-2
<TABLE>
HAMPTON INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Thirteen
Weeks Ended
June 29, July 1,
1996 1995
------------ ------------
<S> <C> <C>
Net sales $ 25,295,098 $ 25,055,196
------------ ------------
Costs and expenses:
Cost of products sold 20,728,133 21,271,540
Selling, general and administrative 6,367,561 6,976,276
Equity in loss of unconsolidated 58,874 608
affiliates
Provision for restructuring costs - 1,211,077
Gain on disposal of assets (653,096) (8,054)
------------ ------------
Operating loss (1,206,374) (4,396,251)
Interest 744,821 945,424
------------ ------------
Loss before income tax
benefit (1,951,195) (5,341,675)
Income tax benefit (767,300) (1,845,500)
------------ ------------
Net loss $ (1,183,895) $ (3,496,175)
============ ============
Net loss per common share $(.26) $(.76)
==== ====
Average common shares outstanding 4,585,629 4,585,629
======== ========
</TABLE>
See notes to consolidated financial statements.
I-3
<TABLE>
HAMPTON INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
Twenty-Six
Weeks Ended
June 29, July 1,
1996 1995
------------ ------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net loss $ (1,447,861) $ (3,682,179)
Adjustments to reconcile net loss to net
cash used in operating activities:
Amortization 13,988 26,106
Depreciation 1,243,354 1,363,446
Deferred income taxes (920,200) (1,939,800)
LIFO charge 1,193,295 874,200
Reserve for doubtful accounts (607,967) 234,479
and allowances
Retirement plan obligations 6,797 27,887
Gain on sale of assets held for (785,090) (47,217)
disposal
Equity in loss (earnings) of 49,066 (5,613)
unconsolidated affiliates
Provision for restructuring costs (530,899) 1,193,924
Changes in current assets and
current liabilities:
Accounts receivable 8,264,000 3,828,545
Inventories on a FIFO basis (11,576,829) (35,170,526)
Other current assets 70,532 123,521
Accounts payable (1,769,786) 2,016,822
Accrued liabilities 345,863 (285,738)
Income taxes (48,183) (1,044,850)
NET CASH USED IN ------------ ------------
OPERATING ACTIVITIES (6,499,920) (32,486,993)
------------ ------------
INVESTING ACTIVITIES:
Additions to property, (226,553) (333,067)
plant and equipment
Net proceeds received from disposition
of assets held for sale 1,188,890 186,467
Decrease in investments and advances to
unconsolidated affiliates 14,623 42,485
(Increase) decrease in other assets (359,086) 76,486
NET CASH PROVIDED BY (USED BY) ------------ ------------
INVESTING ACTIVITIES 617,874 (27,629)
------------ ------------
FINANCING ACTIVITIES:
Additions to debt -Banks 6,957,260 32,075,000
Payments on debt -Banks (846,071) -
-Other (558,465) (629,568)
NET CASH PROVIDED BY FINANCING ------------ ------------
ACTIVITIES 5,552,724 31,445,432
------------ ------------
DECREASE IN CASH (329,322) (1,069,190)
CASH AT BEGINNING OF PERIOD 351,982 1,132,205
------------ ------------
CASH AT END OF PERIOD $ 22,660 $ 63,015
============ ============
Cash paid during the period - Interest $ 1,208,000 $ 1,299,000
============ ============
- Income Taxes $ 76,000 $ 1,358,000
============ ============
</TABLE>
See notes to condensed consolidated financial statements.
I-4
HAMPTON INDUSTRIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Information as of June 29, 1996 and July 1, 1995 is
unaudited.)
1. BASIS OF PRESENTATION
The consolidated balance sheets as of June 29, 1996 and
July 1, 1995 and the consolidated statements of operations for
the twenty-six and thirteen-week periods then ended have been
prepared by the Company, without audit. In the opinion of
management, all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial position,
results of operations and cash flows at June 29, 1996 and for
all periods presented have been made.
Certain information and footnote disclosures normally
included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or
omitted. It is suggested that these condensed consolidated
financial statements be read in conjunction with the audited
financial statements and notes thereto included in the Company's
December 30, 1995 annual report to shareholders. The results of
operations for the period ended June 29, 1996 are not
necessarily indicative of the operating results for the full
year.
Certain reclassifications have been made to the comparative
period consolidated financial statements to conform to
classifications used at June 29, 1996.
<TABLE>
2. INVENTORIES
Inventories consist of the following:
<CAPTION>
June 29, July 1, December 30,
1996 1995 1995
----------- ----------- -----------
<S> <C> <C> <C>
Finished goods $42,176,779 $46,949,406 $37,092,349
Work-in-process 5,657,397 9,985,328 4,041,951
Piece goods 7,429,354 14,454,889 4,118,109
Supplies and other 1,434,935 1,878,948 1,062,522
----------- ----------- -----------
$56,698,465 $73,268,571 $46,314,931
</TABLE>
Inventories are stated at the lower-of-cost or market.
Cost is determined primarily by the last-in, first-out method
(LIFO). The LIFO method results in a better matching of cost
and revenues. At June 29, 1996, July 1, 1995, and December 30,
1995, inventories at LIFO were approximately $6,278,000,
$6,163,000 and $5,084,000 lower, respectively, than they would
have been had the first-in, first-out method of determining cost
been used. The LIFO valuation method had the effect of
increasing the net loss by $729,600 ($.16 per share) for the
twenty-six weeks and $237,300 ($.05 per share) for the thirteen
weeks ended June 29, 1996 and increasing the net loss by
$529,000 ($.12 per share) for the twenty-six weeks and $197,000
($.05 per share) for the thirteen weeks ended July 1, 1995.
I-5
3. OTHER CURRENT ASSETS
Included in other current assets are estimated tax refunds
of approximately $819,000 at June 29, 1996, $400,000 at July 1,
1995 and $1,083,000 at December 30, 1995.
4. BANK AGREEMENT
On May 3, 1996, Hampton Industries, Inc. entered into a new
credit facility ("New Facility") with BNY Financial Corporation,
as Agent. The New Facility provides for a maximum line of
credit of $100,000,000, which includes both direct loans and
letters of credit. The initial proceeds of the New Facility
were used to repay the outstanding indebtedness under the
Company's previously existing bank line of credit.
Availability under the New Facility is based on a formula
of eligible accounts receivable and eligible inventory and
provides for a seasonal overadvance of up to $23,000,000 within
the $100,000,000 maximum line of credit. Direct borrowings bear
interest at the London Interbank Offered Rate or the Prime Rate,
at the option of the Company, plus the applicable margin (as
defined in the New Facility). Borrowings are collateralized by
accounts receivable, inventory and general intangibles of the
Company and its subsidiaries. The New Facility expires in May
1999.
The New Facility contains financial covenants, including
but not limited to tangible net worth and interest coverage, and
restricts fixed asset purchases. It does not allow for the
payment of cash dividends. The Company is not required to
maintain compensating balances, however, it is required to pay a
fee of 1/4% of 1% per annum on the unused portion of the total
facility plus certain other administrative costs.
5. STOCK OPTIONS
The Company has a non-qualified stock option plan ("The
Plan"), under which it has reserved 363,000 shares of common
stock. The Plan was adopted in 1992 and expires in 2002. The
Plan is administered by a committee designated by the board of
directors. Options granted to eligible employees are
exercisable in increments of 20% annually.
On May 30, 1996, options were granted for 279,500 shares
exercisable at $4.50 per share, the fair market value on the
date of grant. The options expire 61 months from the date of
grant. The exercise price may be paid in cash, common stock of
the company or a combination thereof. All of the options were
outstanding at June 29, 1996.
I-6
<TABLE>
The Company applies APB Opinion 25 and related Interpretations
in accounting for its stock options. Accordingly, no compensation
cost has been recognized for the foregoing options. Had compensation
cost for these options been determined using the Black-Scholes
option-pricing model described in FASB Statement 123, the Company
would have recorded aggregate compensation expense of approximately
$490,100 which would be expensed at the rate of 20% per annum over
the option's vesting period. The assumptions used in the option-
pricing model include a risk-free interest rate of 6.7%, expected
life of 3 years and ten months and expected volatility of 39.25%.
The pro forma impact of following the provisions of FASB statement
123 on the Company's operations and loss per share would be as
follows:
<CAPTION>
Twenty-Six Thirteen
Weeks Ended Weeks Ended
June 29, 1996 June 29, 1996
------------- -------------
<S> <C> <C>
Net Loss -As Reported $(1,447,861) $(1,183,895)
-Pro Forma $(1,482,281) $(1,218,315)
Net Loss Per -As Reported $(.32) $(.26)
Common -Pro Forma $(.32) $(.27)
Share
</TABLE>
Net loss per share has been calculated using the weighted
average shares outstanding during the periods. Common stock
equivalents have been excluded from the computation because they
are anti-dilutive.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
Over the past year the Company has implemented several
programs that have had an impact on its operations. With an
increasing amount of product being sourced in both the Caribbean
basin, as well as, in lesser developed countries throughout the
world, the Company has been able to reduce its excess domestic
production capacity by closing several domestic production
facilities. Contracts are negotiated in U. S. Dollars, which
eliminates the exposure to foreign exchange currency risks.
Several major customers have had significant programs with the
Company which were extremely price sensitive. Due to the
Company's establishment of specific goals which set a minimum
profit margin to be achieved, several of these programs have
been discontinued. Branded apparel is generally imported and
continues to grow in importance to the Company. For the current
six month period, this category has contributed 33.0% of
consolidated sales as compared to 15.3% in the comparative six
months. The Company has also become the licensee for a line of
men's loungewear by Ron Chereskin Studios, as well as, expanded
the Rawlings license to include boys and women's activewear.
These new lines will not contribute to sales until 1997.
I-7
<TABLE>
The following table summarizes the operating data for the
periods indicated:
<CAPTION>
Twenty-six Thirteen
Weeks Ended Weeks Ended
June 29, July 1, June 29, July 1,
1996 1995 1996 1995
-------- ------- -------- -------
<S> <C> <C> <C> <C>
Net Sales 100.0% 100.0% 100.0% 100.0%
Cost of products sold 80.0 82.0 81.9 84.9
Selling, general
and administrative 22.8 22.5 25.2 27.8
Equity in loss of
unconsolidated
affiliates 0.1 - 0.3 -
Provision for
restructruing cost - 1.9 - 4.8
Gain on sale of assets
held for disposal (1.3) (0.1) (2.6) -
----- ----- ----- ------
Operating loss (1.6) (6.3) (4.8) (17.5)
Interest 2.3 2.3 2.9 3.8
----- ----- ----- ------
Loss before income
tax benefit (3.9) (8.6) (7.7) (21.3)
Income tax benefit (1.5) (2.9) (3.0) (7.3)
----- ----- ----- ------
Net Loss (2.4)% (5.7)% (4.7)% (14.0)%
</TABLE>
THIRTEEN WEEKS ENDED JUNE 29, 1996 AS COMPARED TO THE THIRTEEN
WEEKS ENDED JULY 1, 1995
Net sales increased by 1.0% during the period. Dozens
shipped declined by 7.4% which was offset by an 8.4% increase in
average price per dozen. The "Nautica for Boys" and "Rawlings"
line of branded apparel comprised a significant portion of the
increase in average selling prices. The two lines represented
28.9% of the Company's sales for the period versus 13.9% in the
prior year.
Gross profit margins for the current period increased from
15.1% to 18.1%. The increase in margins is attributable to the
higher margins received on the branded apparel sales, which
increased by $4,023,000 for the period, and the elimination of
certain programs that had low gross margins.
Operating expenses declined by $609,000 from the prior year
in spite of higher royalty fees due to the growth in sales
referred to above. The decreases in operating expenses are
primarily related to wages and fringe benefits of terminated
employees.
The decrease in interest expense was due to lower average
borrowings for the period.
For the thirteen weeks ended July 1, 1995, restructuring
costs of $1,211,000 attributable to the closing of two domestic
manufacturing facilities were recorded. The restructuring
reduced the work force by approximately 400 associates. This
charge included both the expected cost of termination of
employees and a non-cash charge of $610,000 to record certain
assets at estimated realizable values. During the quarter ended
June 29, 1996, a gain on the sale of property held for sale of
$653,000 was realized.
I-8
TWENTY-SIX WEEKS ENDED JUNE 29, 1996 AS COMPARED TO THE
TWENTY-SIX WEEKS ENDED JULY 1, 1995
Net sales decreased by 6.0% during the period. Dozens
shipped declined by 12.7% which was offset by a 7.7% increase in
average price per dozen. The "Nautica for Boys" and "Rawlings"
lines of branded apparel comprised a significant portion of the
increase in the average selling prices. Also, these two lines
combined for a total of 33.0% of the Company's sales for the
current period versus 15.3% in the prior year.
Gross profit margins for the period increased from 18.0%
to 20.0%. The increase in margins is attributed to the higher
margins received on the branded apparel sales, which increased
by $10,252,000 for the period, and the elimination of certain
programs that had low gross margins.
Operating expenses declined by $637,000 from the prior year
in spite of higher royalty fees due to the growth in sales
referred to above. The decreases in operating expenses are
primarily related to wages and fringe benefits of terminated
employees.
The decrease in interest expense was due to lower average
borrowings for the period.
For the twenty six weeks ended July 1, 1995, restructuring
costs of $1,211,000 attributable to the closing of two domestic
manufacturing facilities were recorded. The restructuring
reduced the work force by approximately 400 associates. This
charge included both the expected cost of termination of
employees and a non-cash charge of $610,000 to record certain
assets at estimated realizable values. During the twenty six
weeks ended June 29,1996, a gain on the sale of property held
for sale of $785,000 was realized.
Liquidity and Capital Resources
On May 3, 1996, Hampton Industries, Inc. entered into a new
credit facility ("New Facility") with BNY Financial Corporation,
as Agent. The New Facility provides for a maximum line of
credit of $100,000,000, which includes both direct loans and
letters of credit. The initial proceeds of the New Facility
were used to repay the outstanding indebtedness under the
Company's previously existing bank line of credit.
Availability under the New Facility is based on a formula
of eligible accounts receivable and eligible inventory and
provides for a seasonal overadvance of up to $23,000,000 within
the $100,000,000 maximum line of credit. Direct borrowings bear
interest at the London Interbank Offered Rate or the Prime Rate,
at the option of the Company, plus the applicable margin (as
defined in the New Facility). Borrowings are collateralized by
accounts receivable, inventory and general intangibles of the
Company and its subsidiaries. The New Facility expires in May
1999.
The New Facility contains financial covenants, including
but not limited to tangible net worth and interest coverage, and
restricts fixed asset purchases. It does not allow for the
payment of cash dividends. The Company is not required to
maintain compensating balances, however, it is required to pay a
fee of 1/4% of 1% per annum on the unused portion of the total
facility plus certain other administrative costs.
I-9
Bank borrowings amounted to $25,711,000 at June 29, 1996 as
compared to $42,760,000 on July 1, 1995 and $19,600,000 on
December 30, 1995. Outstanding letters of credit amounted to
$21,321,000 at June 29, 1996 as compared to $30,870,000 on July,
1, 1995 and $27,465,000 on December 30, 1995. During the twenty
six weeks ended July 1, 1995, inventories were growing at a
substantial rate, $35,171,000 for the period as compared to an
increase of $11,577,000 for the current twenty six week period.
The largest portion of the growth in inventories in the prior
period was financed by an increase in bank debt. The current
periods growth in inventories was partially financed with bank
debt with the remainder financed through improved collection of
receivables. The decrease in accounts receivable of $8,264,000
in the current period as compared to a decrease of $3,829,000 in
the prior period is primarily due to improved collection efforts.
Net cash used in operating activities significantly
improved in the current six month period versus the prior
period. Due to a lower level of domestic manufacturing
activities, accounts payable have declined since December 30,
1995. Due to the operating loss recorded for the year ending
December 30,1995, there was no requirement to make substantial
tax payments in the current period. In the prior period,
payments for taxes amounted to $1,358,000 relating to operating
profits reported for the year ending December 31, 1994. The
reduction in the reserve for doubtful accounts and allowances
relates to the write-off of old uncollectable accounts,
collection of disputed amounts and a lower level of disputed
amounts with customers.
Investing activities include normal replacements of
machinery and equipment and building improvements. Expenditures
during the period have been financed from the proceeds of the
sales of assets which were classified as held for resale due to
prior plant closings. There are no major expenditures planned
for the remainder of 1996. The increase in other assets is
primarily due to deferred financing costs related the new credit
facility .
Financing activities report the changes in bank borrowings
and other debt which support inventory levels and other
investments.
At June 29, 1996, the company's working capital
approximated $44,514,000 and its current ratio was 2.49 to 1.
The Company has a non-qualified stock option plan ("The
Plan"), under which it has reserved 363,000 shares of common
stock. The Plan was adopted in 1992 and expires in 2002. The
Plan is administered by a committee designated by the board of
directors. Options granted to eligible employees are
exercisable in increments of 20% annually.
On May 30, 1996, options were granted for 279,500 shares
exercisable at $4.50 per share, the fair market value on the
date of grant. The options expire 61 months from the date of
grant. The exercise price may be paid in cash, common stock of
the company or a combination thereof. All of the options were
outstanding at June 30, 1996.
The Company applies APB Opinion 25 and related
Interpretations in accounting for its stock options.
Accordingly, no compensation cost has been recognized for the
foregoing options. Had compensation cost for these options been
determined using the Black-Scholes option-pricing model
described in FASB Statement 123, the Company would have recorded
aggregate compensation expense of approximately $490,100 which
would be expensed at the rate of 20%
I-10
per annum over the option's vesting period. The assumptions
used in the option-pricing model include a risk-free interest
rate of 6.7%, expected life of 3 years and ten months and
expected volatility of 39.25%.
The Company's backlog of orders at June 29, 1996 was
approximately $96,607,000 as compared to $129,411,000 in the
prior year. A change in the buying patterns of our customers, a
planned reduction in the current year sales of approximately 10%
and a change in product mix have caused this reduction in the
backlog. Management believes that the sales to date, the order
backlog and anticipated new orders will be sufficient to meet
the sales goals for the Company.
Management believes that the credit available under the new
credit facility together with the cash expected to be generated
from operations, is adequate to meet the Company's financing
requirements for the foreseeable future.
Impact of Inflation
General inflation in the economy has driven the operating
expenses of many businesses higher, and accordingly, the Company
has increased compensation and bore higher prices for materials
, goods and services. The Company continuously seeks methods of
reducing costs and streamlining operations while maximizing
efficiency through improved internal operating procedures and
controls. While the Company is subject to inflation as
described above, management believes that inflation currently
does not have a material effect on the Company's operating
results, but there can be no assurance that this will continue
to be so in the future.
Accounting Changes
In March 1995, the Financial Accounting Standards Board
("FASB") issued Statement of Financial Accounting Standards
("SFAS") No. 121, "Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to be Disposed Of," which
requires impairment losses to be recorded on long-lived assets
used in operations when indicators of impairment are present and
the undiscounted cash flows estimated to be generated by those
assets are less than the assets' carrying amount. SFAS No. 121
also addresses the accounting for long-lived assets that are
expected to be disposed of. SFAS No. 121 is effective for
financial statements for fiscal years beginning after December
15, 1995; therefore, the Company will adopt SFAS No. 121 in the
first quarter of fiscal 1997 and, based on current
circumstances, does not believe the effect of adoption will be
material.
I-11
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of l934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned thereunder duly authorized.
HAMPTON INDUSTRIES, INC.
Registrant
S/STEVEN FUCHS
________________________
Steven Fuchs, President
S/ROBERT J. STIEHL, JR.
________________________
Robert J. Stiehl, JR.
Executive Vice President -
Operations and Chief
Financial Officer
Date: August 2, 1996
I-12
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-28-1996
<PERIOD-END> JUN-29-1996
<CASH> 22,660
<SECURITIES> 0
<RECEIVABLES> 14,627,238
<ALLOWANCES> 0
<INVENTORY> 56,698,465
<CURRENT-ASSETS> 1,220,291
<PP&E> 18,014,916
<DEPRECIATION> 0
<TOTAL-ASSETS> 96,248,880
<CURRENT-LIABILITIES> 29,951,570
<BONDS> 0
<COMMON> 5,191,454
0
0
<OTHER-SE> 43,471,798
<TOTAL-LIABILITY-AND-EQUITY> 96,248,880
<SALES> 61,231,250
<TOTAL-REVENUES> 61,967,274
<CGS> 48,965,326
<TOTAL-COSTS> 48,965,326
<OTHER-EXPENSES> 13,971,606
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,398,403
<INCOME-PRETAX> (2,368,061)
<INCOME-TAX> (920,200)
<INCOME-CONTINUING> (1,447,861)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,447,861)
<EPS-PRIMARY> (.32)
<EPS-DILUTED> (.32)
</TABLE>
