<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] Quarterly Report Under Section 13 or 15(d) of the
Securities Exchange Act of 1934 for the quarterly period
ended March 31, 1997.
[ ] Transition Report Under Section 13 or 15(d) of the
Exchange Act for the transition period from _________ to
_________
Commission File Number: 0-12697
Dynatronics Corporation
- ----------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Utah 87-0398434
-------------------------------- ----------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
7030 Park Centre Drive, Salt Lake City, UT 84121
-------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(801) 568-7000
-------------------------
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the
past 12 months (or 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.
X Yes No
------- ------
The number of shares outstanding of the issuer's common
stock, no par value, as of May 7, 1997 is 8,424,747 shares.
Transitional Small Business Disclosure Format.
Yes X No
----- -------
<PAGE>
DYNATRONICS CORPORATION
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements Page Number
Condensed Balance Sheet
March 31, 1997 1
Condensed Statements of Income
Three Months and Nine Months Ended March 31, 1997,
and March 31, 1996 2
Condensed Statements of Cash Flows
Nine Months Ended March 31, 1997,
and March 31, 1996 3
Notes to Condensed Financial Statements 4
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations 6
Part II. OTHER INFORMATION 10
<PAGE>
DYNATRONICS CORPORATION
Condensed Balance Sheet
(Unaudited)
<TABLE>
<CAPTION>
March 31,
ASSETS 1997
--------------
<S> <C>
Current assets:
Cash and cash equivalents $ 80,049
Trade accounts receivable, less allowance for doubtful
accounts of $89,277 2,061,307
Other receivables 50,698
Inventories 1,906,275
Prepaid expenses 58,213
Deferred tax asset-current 91,757
------------
Total current assets 4,248,299
Net property and equipment 2,543,553
Excess of cost over book value, net of accumulated amortization
of $192,297 1,242,477
Deferred tax asset-noncurrent 228,365
Other assets 496,224
------------
$ 8,758,918
============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current installments of long-term debt $ 140,429
Current installments of capital lease obligations 7,450
Line of credit 167,156
Accounts payable 601,724
Accrued expenses 466,162
------------
Total current liabilities 1,382,921
Long-term debt, excluding current installments 2,135,084
Deferred compensation 426,984
------------
Total long-term liabilities, excluding current installments 2,562,068
------------
Total liabilities 3,944,989
Stockholders' equity:
Common stock, no par value. Authorized 50,000,000
shares; issued and outstanding 8,424,747 shares 1,981,204
Retained earnings 2,832,725
------------
Total stockholders' equity 4,813,929
------------
$ 8,758,918
============
</TABLE>
See accompanying notes to condensed financial statements.
1
<PAGE>
DYNATRONICS CORPORATION
Condensed Statements Of Income
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31 March 31
1997 1996 1997 1996
------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C>
Net sales $ 2,545,178 1,633,092 7,150,478 4,958,410
Cost of sales 1,448,611 872,606 4,081,976 2,638,708
------------- -------------- ------------- --------------
Gross profit 1,096,567 760,486 3,068,502 2,319,702
Selling, general, and administrative expenses 805,899 488,077 2,226,840 1,454,019
Research and development expenses 139,274 133,504 428,746 426,515
------------- -------------- ------------- --------------
Operating income (loss) 151,394 138,905 412,916 439,168
Other income (expense):
Interest income 126 11,308 7,316 29,111
Interest expense (46,546) (38,290) (146,183) (116,949)
Other income, net 280,829 38,595 330,467 125,864
Write-off of ITEC note receivable (228,824)
------------- -------------- -------------- ---------------
Total other income (expense) 234,409 11,613 191,600 (190,798)
Income before income taxes 385,803 150,518 604,516 248,370
Income tax expense (benefit) 112,736 61,443 187,787 29,047
------------- -------------- -------------- ---------------
Net income $ 273,067 89,075 416,729 219,323
============= ============== ============== ===============
Net income per common share and common
share equivalents (note 2): $ 0.03 0.01 0.05 0.03
============= ============== ============== ===============
Weighted average number of common shares
and common share equivalents outstanding 8,424,747 7,984,121 8,424,747 7,964,438
</TABLE>
See accompanying notes to condensed financial statements.
2
<PAGE>
DYNATRONICS CORPORATION
Condensed Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
March 31
1997 1996
------------ -----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 416,729 219,323
Adjustments to reconcile net income to net cash provided
by (used in) operating activities:
Depreciation and amortization of property and equipment 129,577 129,601
Gain on sale of land (259,953) 0
Other amortization 65,154 6,584
Provision for doubtful accounts 9,000 9,000
Provision for inventory obsolescence 78,000 72,000
Provision for warranty reserve 82,853 82,832
Decrease (increase) in operating assets:
Receivables (442,737) (205,242)
Inventories (366,440) 218,278
Prepaid expenses and other assets (73,563) (81,017)
Deferred tax assets 1,135 (100,596)
Increase (decrease) in operating liabilities:
Trade accounts payable and accrued expenses 99,372 (6,050)
Deferred compensation 60,138 57,438
Income taxes payables 133,009 65,703
----------- -----------
Net cash provided by (used in) operating activities (67,726) 467,854
----------- -----------
Cash flows from investing activities:
Capital expenditures (139,976) (35,112)
Proceeds from sale of assets 362,620 0
----------- -----------
Net cash provided by (used in) investing activities 222,644 (35,112)
----------- -----------
Cash flows from financing activities:
Principal payments under capital lease obligations (15,221) (35,166)
Principal payments on long-term debt (357,747) (75,299)
Net change in line of credit (118,755) 0
Proceeds from sale of common stock 0 35,744
----------- -----------
Net cash provided by (used in) financing activities (491,723) (74,721)
----------- -----------
Net increase (decrease) in cash and cash equivalents (336,805) 358,021
Cash and cash equivalents at beginning of period 416,854 779,054
----------- -----------
Cash and cash equivalents at end of period $ 80,049 1,137,075
=========== ===========
Supplemental cash flow information
Cash paid for interest (net of amounts capitalized) 146,183 116,949
Cash paid for income taxes 52,100 88,900
Supplemental disclosure of non-cash investing and financing activities
Long-term debt incurred for fixed assets 0 0
Capital lease obligations incurred for property and equipment 0 0
</TABLE>
See accompanying notes to condensed financial statements.
3
<PAGE>
DYNATRONICS CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
March 31, 1997
(Unaudited)
NOTE 1. PRESENTATION
The financial statements as of March 31, 1997 and for the
nine months then ended were prepared by the Company without
audit pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information
and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted
pursuant to such rules and regulations. In the opinion of
management, all necessary adjustments to the financial
statements have been made to present fairly the financial
position and results of operations and cash flows. All
adjustments were of a normal recurring nature. The results
of operations for the respective periods presented are not
necessarily indicative of the results for the respective
complete years. The Company has previously filed with the
SEC Annual Reports on Form 10-K under the name of
Dynatronics Corporation and/or Dynatronics Laser
Corporation which included audited financial statements for
the three years ending June 30, 1996, 1995, and 1994. It
is suggested that the financial statements contained in
this filing be read in conjunction with the statements and
notes thereto contained in the Company's 10-K filing.
NOTE 2. EARNINGS PER SHARE
Earnings per common share and common share equivalents are
computed by dividing net income by the weighted average
number of shares of common stock and common stock
equivalents outstanding during the period. Common stock
equivalents include shares issuable upon exercise of the
Company's stock options.
NOTE 3. INVENTORIES
Inventories consisted of the following:
March 31
1997
------------
Raw Materials $ 1,168,412
Finished Goods 855,323
Inventory Reserve (117,460)
------------
$ 1,906,275
============
<PAGE>
NOTE 4. PROPERTY AND EQUIPMENT
Property and equipment were as follows:
March 31
1997
--------------
Land $ 354,183
Buildings 2,068,367
Machinery and equipment, and
equipment under capital lease 994,440
-------------
3,416,990
Less Accumulated depreciation
and amortization. $ 873,437
-------------
$ 2,543,553
=============
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Results of Operations
- ---------------------
Sales for the three-month period ended March 31, 1997
increased 56 percent to $2,545,178 as compared to $1,633,092
in the prior year period. Sales for the nine-month period
ended March 31, 1997 increased 44 percent to $7,150,478 as
compared to $4,958,410 in the same period of the prior
year.
The strong increase in sales for the reporting period of
fiscal 1997 is attributable to five key factors: 1) The
introduction of the new "50 Series Plus" line of
electrotherapy and ultrasound products in February, 1997; 2)
Increased sales of medical soft goods and supplies resulting
from the Company's acquisition of Superior Orthopaedic
Supplies in May, 1996; 3) Sales of iontophoresis products
through the Company's exclusive distribution agreement with
Life-Tech, Inc. entered into in August, 1996; 4) Sales of
treatment tables and rehabilitation equipment resulting from
the Company's acquisition of manufacturing operations in
Columbia, South Carolina; and 5) Increased sales
internationally, following the receipt of marketing approval
for certain products in Japan.
With the introduction of the new "50 Series Plus" product
line, the Company continues to gain market share through
increased sales of these products both domestically and
internationally. By incorporating state-of-the-art
technology to reduce manufacturing costs, profit margins for
these products are the highest of any devices manufactured by
the Company.
The development of sales obtained through the acquisition of
Superior Orthopaedics accounts for the majority of increased
sales for the reporting period and continues to be a focal
point of the Company's overall strategy. Combining the
Superior product line with Dynatronics' distribution network
creates a strategic advantage that management believes will
sustain continued sales growth through the remainder of
fiscal year 1997 and into future periods. The publication of
Dynatronics' first full-line catalogue in January, 1997, gave
a significant boost to sales of these products and is
expected to continue to fuel sales growth through the next
two quarters.
In August 1996, the Company announced the signing of an
agreement with Life-Tech, Inc. which appointed Dynatronics as
the exclusive distributor of Life-Tech iontophoresis products
to the physical medicine market. Iontophoresis is a process
of transdermally delivering certain anti-inflammatory and
anesthetic drugs into a localized area without the use of
needles. Sales of iontophoresis products accounted for 18
percent of the increase in sales over the three-month period
ended March 31, 1996. The development of new marketing
strategies emphasizing Dynatronics' position as the low-cost
provider of iontophoresis products is expected to reinforce
continued sales growth.
<PAGE>
In January, the Company announced it had acquired assets to
begin manufacturing physical therapy treatment tables,
parallel bars, and other specialty rehabilitation treatment
tables at a facility in Columbia, South Carolina. Agreements
were signed effective January 1, 1997 with Mr. Charlton
"Stoney" Floyd to purchase certain inventory and lease
equipment and real property owned by Mr. Floyd who in turn
agreed to act as general manager of the facility. These
products are being manufactured under the direction of a
seasoned management team with 30 years of experience in this
industry. This acquisition is the second such transaction in
the past year.
During the reporting quarter, the Company also announced it
received government approval to begin marketing two of its
most popular products in Japan--the Dynatron 650
Electrotherapy device and Dynatron 950 Combination
Electrotherapy and Ultrasound device. Management views this
as a major step in the Company's international expansion
efforts and expects sales to Japan will ultimately boost
overall sales of capital equipment by 10-20 percent over
current levels.
Gross Margins for the three-month period increased 44
percent to $1,096,567 as compared to $760,486 in the prior
year period. Gross Margins for the nine-month period
increased 32 percent to $3,068,502 as compared to
$2,319,702 in the prior year period. These increases are
primarily attributable to the increase in sales volume as
mentioned above. In spite of higher margins on the new "50
Series Plus" products, gross margins as a percentage of
sales declined to 43 percent during the reporting quarter
as compared to 46 percent in the prior year period. This
decrease is due entirely to the addition of medical
supplies and soft goods which carry lower margins than the
Company's electronic medical devices. Management expects
gross margins will remain at current levels in future
periods based on anticipated manufacturing costs, sales
pricing levels and product mix.
Selling, General and Administrative (SG&A) expenses for the
three-month period increased to $805,899 as compared to
$488,077 in the same period last year while SG&A for the
nine-month period increased to $2,226,840 as compared to
$1,454,019 in the prior year period. These increases are
directly related to additional SG&A expenses associated
with the new operations acquired in Tennessee and South
Carolina. Labor expense also increased due to staffing
needs created by higher sales volume and the anticipation
of and preparation for further sales increases in the
future.
Research and development expenses in the three-month period
totaled $139,274 compared to $133,504 in the prior year
period. R&D for the nine month period totaled $428,746
compared to $426,515 in the previous year. R&D expenses
for the reporting quarter were primarily related to
development of the newly redesigned line of capital
equipment known as the "50 Series Plus" which was
introduced during the quarter.
Operating income increased to $151,394 in the three-month
period ended March 31, 1997 compared to $138,905 in the
prior year period, while operating income for the nine
month period decreased to $412,916 as compared to $439,168
in the previous year. The increased sales volumes and
higher margins associated with the new "50 Series Plus"
products were the primary reason for increased operating
income during the quarter. These increases were partially
offset by the lower profit margins associated with the
medical supplies and soft goods products and the increased
expenses noted above.
<PAGE>
In its first full reporting quarter, the treatment table
manufacturing operation in Columbia, SC reported losses of
$56,600. This was the most significant impact on operating
income for the reporting period. Based on the growth trend
in sales and profits, management fully expects this part of
operations to be profitable in the fourth quarter of the
current fiscal year.
Income before tax for the three-month period increased
significantly to $385,428 compared to $150,518 during the
similar period of the prior year. Income before tax for
the nine-month period increased to $604,141 compared to
$248,370 in the prior year period. Increased sales
together with the higher margins associated with the new
"50 Series Plus" products contributed to the increased
profit from operations. In addition, during the reporting
quarter the Company realized a pre-tax gain in the amount
of $249,798 from the sale of 2.25 acres of land in Utah.
The sale of the Utah property was part of a tax-free
exchange in which the Company acquired two 11,000 sq. ft.
buildings and 3.4 acres of land which currently house the
Company's Tennessee operations. The sale price of the Utah
property was $1,000,000 while the purchase price of the
Tennessee property was $575,000. The $425,000 surplus was
used to reduce debt, pay sales commissions, and to pay
taxes on the transaction. As a result of the acquisition
of the Tennessee property, the Company will decrease its
operating expenses by approximately $50,000 annually from
the elimination of rental payments on these facilities.
The Company also deferred $115,457 in tax on the sale of
the Utah property due to the tax-free exchange. The
Company plans to expand its Tennessee operations on the
vacant land acquired in the transaction.
During the first nine months of fiscal 1996, the Company
was required to recognize a charge in the amount of
$228,824 which affected operating income for that period.
This amount represented the write-off of a note receivable
due from ITEC Attractions, which at the time was an
affiliate of the Company. ITEC filed a voluntary petition
for protection under Chapter 11 of the U.S. bankruptcy laws
on January 25, 1996. ITEC filed a Plan of Reorganization
with the U.S. Bankruptcy Court that was approved on
February 6, 1997. As a result of this approval, in May,
1997, Dynatronics received approximately $90,000 as its
share of the bankruptcy dividend payments to creditors.
This amount will be recognized as income next quarter.
Income tax expense for the three-month period ended March
31, 1997 equaled $112,736 as compared to $61,443 in the
prior year period. For the nine-month period, income tax
expense equaled $187,787 compared to $29,047 in the prior
year period. In fiscal 1996, the Company recognized
certain income tax benefits related to the write-offs
associated with the ITEC Attractions bankruptcy filing.
Net income for the three-month period increased to $272,692
compared to $89,075 for the same period in the prior year.
Net income for the nine-month period increased to $416,354
compared to $219,323 in the previous year period. These
increases are a result of the factors discussed above.
Management expects profits from operations will continue to
improve as sales volumes increase.
<PAGE>
Liquidity and Capital Resources
- -------------------------------
The Company expects revenues from operations, together with
available sources of borrowing, will be adequate to meet
its working capital needs related to its business and its
planned capital expenditures for the upcoming operating
year.
The Company continues to maintain a liquid position. The
Company's current ratio at March 31, 1997 was 3.1 to 1.
Current assets represent 48 percent of total assets.
Trade accounts receivable are from the Company's dealer
network and are generally considered to be within term.
All accounts payable are within term with the Company
continuing its policy of taking advantage of any and all
payment discounts available.
The Company maintains a revolving line of credit in the
amount of $1,500,000 with a commercial bank. The
outstanding balance on this line of credit at March 31,
1997 was $167,156, with $1,332,844 available to the
Company.
Inventory levels at March 31, 1997 equaled $1,906,275.
Accounts receivable at March 31, 1997 totaled $2,061,307.
Management anticipates inventory and accounts receivable
levels may increase in future quarters as new products are
introduced and sales volumes continue to grow.
Long-term debt excluding current installments at March 31,
1997 totaled $2,135,084, comprised primarily of the
mortgage loan on the Company's office and manufacturing
facility and the note payable associated with the
acquisition of Superior Orthopaedic Supplies. The balance
on the mortgage loan is approximately $2 million with
monthly principal and interest payments of $19,700. This
loan was reduced by $239,000 with proceeds from the sale of
the Utah property mentioned previously.
Business Plan
- -------------
During the reporting quarter, the Company introduced the
new, improved "50 Series Plus" product line which
management anticipates will continue to support the
Company's dramatic growth trends and further increase
market share in the most profitable segment of its market.
This product line offers the greatest number of features at
the lowest price of any previous products offered by the
Company. By re-engineering these products, their cost of
manufacturing was greatly reduced insuring Dynatronics
remains a market leader in the sales of electrotherapy and
ultrasound products.
With the acquisition of Superior Orthopaedic Supplies in
May 1996, the Company has been able to expand distribution
of Superior's product line of soft goods and supply
products through Dynatronics' dealer network. The
Company's recent start-up of the treatment table
manufacturing operation in South Carolina will further
broaden its product line. Offering a broad product line is
of strategic importance as clinics continue to consolidate
and develop centralized purchasing which favors single
source suppliers for their medical device and supplies
needs.
<PAGE>
To capitalize on its broadened product line, the Company
published its first full-line catalogue in January, 1997.
The distribution of this catalogue has begun to
significantly boost sales and is expected to support
continued sales growth. Work on the next generation
catalogue is already underway.
Another avenue to increase sales and profits being pursued
by management is that of strategic business alliances such
as the exclusive distribution agreement signed with Life-
Tech, Inc. in August 1996. The Company continues to
evaluate additional strategic alliances and acquisition
opportunities which could enhance and broaden the Company's
product line.
The Company's sales are expanding internationally with the
recent approval to market products in Japan. Management
anticipates obtaining additional marketing approvals in
fiscal 1998 in Europe which is expected to continue the
Company's international expansion.
The Company recognizes the need to continually upgrade and
re-engineer existing products as well as introduce new
products. The Company's continuing commitment to Research
and Development enables Dynatronics to be a technological
leader in the market. New products and engineering
improvements are constantly being evaluated and developed.
The Company continues to evaluate research into areas of
potential efficacy of its low-power laser device. Should
any such research provide evidence deemed sufficient for
submission to the U.S. Food and Drug Administration, the
Company would give consideration to submitting a Pre-Market
Approval Application for the laser to the FDA.
Forward-looking Statements
- --------------------------
This quarterly report contains forward-looking statements
relating to anticipated financial performance, product
development, and similar matters. The Private Securities
Litigation Reform Act of 1995 provides a safe harbor for
forward-looking statements. With the exception of
historical information, statements in this report are
forward-looking within the meaning of the law, including
statements regarding future products, product development,
research and development spending, and the Company's
business plan, as well as statements regarding the levels
of future international sales The Company notes that risks
inherent in its business and a variety of factors could
cause or contribute to a difference between actual results
and anticipated results. Those risks include, but are not
limited to, such factors as market acceptance of Company
products (particularly new product lines and re-designed
product lines), the ability to hire and retain the services
of trained personnel at cost-effective labor rates, the
absence of new adverse government regulation of the
Company's products, the actions of foreign regulators that
may adversely affect the expansion of the Company's
marketing activities in foreign markets, political or
economic changes in the United States and abroad which may
adversely affect the market for physical therapy devices or
soft goods in general or the Company's products in
particular, the Company's ability to keep pace with
technological advances which can occur rapidly, the
Company's ability to meet increasing demand, the ability to
<PAGE>
introduce new products on a timely basis, changing customer
requirements, delays in new products qualifications, the
timing and extent of research and development expenses, the
Company's access to and ability to finance such changes.
The foregoing and other factors, both within and outside
the Company's control, may cause actual results to differ
from those described in forward-looking statements made in
this Report.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
There are no material legal proceedings pending
to which the Company or any of its subsidiaries
is a party or of which any of their property is
the subject which require disclosure in this
statement.
Item 2. Changes in Securities
---------------------
Not applicable.
Item 3. Defaults Upon Senior Securities
-------------------------------
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
Not Applicable.
Item 5. Other Information
-----------------
Not Applicable.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
A) Exhibits
No. Description
--- -----------
27 Financial Data Schedule
B) Reports on Form 8-K
During the reporting quarter, the Company
filed a Current Report on Form 8-K. This
report was dated March 26, 1997 and included
Item 2 disclosure to reflect the disposition
of certain assets by the Company. The asset
disposed of consisted of 2.25 acres of
undeveloped real property adjacent to the
Company's existing manufacturing facility and
corporate offices in Utah. As a continuation
of the transaction reported in the Form 8-K,
the Company on May 12, 1997 completed the
acquisition of real property located in
Tennessee, which acquisition was structured as
a tax-free exchange under the Internal Revenue
Code.
<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.
DYNATRONICS CORPORATION
-----------------------
Registrant
Date May 14, 1997 /s/ Kelvyn H. Cullimore, Jr.
---------------- ----------------------------
Kelvyn H. Cullimore, Jr.
President
Chief Executive Officer
Date May 14, 1997 /s/ John L. Hales
----------------- -----------------------------
John L. Hales
Chief Financial Officer and
Principal Accounting Officer
15
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BALANCE
SHEET AND STATEMENT OF INCOME 3/31/97 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL INFORMATION.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 80,049
<SECURITIES> 0
<RECEIVABLES> 2,150,584
<ALLOWANCES> 89,277
<INVENTORY> 1,906,275
<CURRENT-ASSETS> 4,248,299
<PP&E> 3,416,990
<DEPRECIATION> 873,437
<TOTAL-ASSETS> 8,758,918
<CURRENT-LIABILITIES> 1,382,921
<BONDS> 2,135,084
0
0
<COMMON> 1,981,204
<OTHER-SE> 2,832,725
<TOTAL-LIABILITY-AND-EQUITY> 8,758,918
<SALES> 2,545,178
<TOTAL-REVENUES> 2,545,178
<CGS> 1,448,611
<TOTAL-COSTS> 1,448,611
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 4,200
<INTEREST-EXPENSE> 46,546
<INCOME-PRETAX> 385,803
<INCOME-TAX> 112,736
<INCOME-CONTINUING> 273,067
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 273,067
<EPS-PRIMARY> .032
<EPS-DILUTED> .032
</TABLE>
