FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended January 31, 1997
OR
[ ] 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: 0-3338
NMC CORP.
(Exact name of registrant as specified in its charter)
Delaware 22-1558317
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
477 Madison Avenue, Suite 701
New York, New York 10022
(Address of principal executive offices)
(Zip Code)
212-207-4560
(Registrant's telephone number, including area code)
________________________________________________________________________________
(Former name, former address and former fiscal year, if changed
since last report)
Indicate by check mark whether the registrant (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
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes |X| No |_|
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
At March 1, 1997 there were 1,136,677 shares of Common Stock, $.06 2/3 par
value, outstanding.
<PAGE>
NMC CORP.
INDEX
Page No.
--------
Part I - Financial Information 1
Item 1. Financial Statements
Consolidated Balance Sheets as of
January 31, 1997 (unaudited) and
July 31, 1996 2 - 3
Consolidated Statements of Operations
for the Six Months and Three Months Ended
January 31, 1997 and 1996 (unaudited) 4
Consolidated Statements of Cash Flows
for the Six Months Ended January 31,
1997 and 1996 (unaudited) 5 - 6
Notes to Consolidated Financial
Statements (unaudited) 7 - 10
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations 11 - 12
Part II - Other Information
Item 6. Exhibits and Reports on Form 8-K 13
Signatures 14
<PAGE>
PART I. Financial Information
Item 1. Financial Statements
Certain information and footnote disclosures required under generally
accepted accounting principles have been condensed or omitted from the following
consolidated financial statements pursuant to the rules and regulations of the
Securities and Exchange Commission. It is suggested that the following
consolidated financial statements be read in conjunction with the year-end
consolidated financial statements and notes thereto included in the Company's
Annual Report on Form 10-K for the year ended July 31, 1996.
The results of operations for the six month period ended January 31, 1997,
are not necessarily indicative of the results to be expected for the entire
fiscal year or for any other period.
-1-
<PAGE>
NMC CORP. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
ASSETS
January 31, July 31,
1997 1996
----------- -----------
(Unaudited)
Current Assets:
Cash $ 11,457 $ 15,592
Accounts receivable - less allowance
for doubtful accounts of $9,000 484,929 587,696
Inventories 74,523 13,468
Prepaid expenses and sundry
receivables 45,416 132,823
----------- -----------
Total Current Assets 616,325 749,579
----------- -----------
Property, plant and equipment - net 1,446,693 1,437,612
Unamortized excess of cost over fair
value of assets acquired 961,901 979,595
Deferred costs 113,458 18,868
----------- -----------
TOTAL ASSETS $ 3,138,377 $ 3,185,654
=========== ===========
(Continued)
See notes to consolidated financial statements.
-2-
<PAGE>
NMC CORP. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
January 31, July 31,
1997 1996
----------- -----------
(Unaudited)
Current Liabilities:
Short-term borrowings $ 1,310,487 $ 1,251,373
Current portion of long-term debt 30,835 27,343
Current portion of capital lease
obligations 317,354 380,897
Accounts payable 257,117 333,153
Accrued expenses 395,747 274,811
Customer deposits 120,142 105,873
Deferred revenue 125,231 138,312
Due to officer 275,000 200,000
Income taxes payable 7,970 7,970
----------- -----------
Total Current Liabilities 2,839,883 2,719,732
----------- -----------
Long-term debt 55,217 68,944
Deferred revenues 5,301 7,392
----------- -----------
Total Liabilities 2,900,401 2,796,068
----------- -----------
Minority interest in consolidated
subsidiary 559,634 543,461
Stockholders' Deficiency:
Preferred stock, par value $1; authorized
500,000 shares (involuntary liquidation
value $777,912):
Convertible Series B, at redemption
value; issued and outstanding 65,141
shares 130,282 130,282
Cumulative Series C, par value $1,
issued and outstanding 64,763 shares 64,763 64,763
Common, par value $.06-2/3; authorized
20,000,000 shares; issued and outstanding
1,136,677 and 986,677 shares 75,816 65,811
Additional paid-in capital 7,508,105 7,368,110
Deficit (8,114,466) (7,792,894)
Foreign currency translation adjustment 13,842 10,053
----------- -----------
Total Stockholders' Deficiency (321,658) (153,875)
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS'
DEFICIENCY $ 3,138,377 $ 3,185,654
=========== ===========
See notes to consolidated financial statements.
-3-
<PAGE>
NMC CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Six Months Ended Three Months Ended
January 31, January 31,
------------------------- -------------------------
1997 1996 1997 1996
----------- ----------- ----------- -----------
Revenues:
Sales $ 1,052,486 $ 513,345 $ 510,816 $ 314,381
----------- ----------- ----------- -----------
Costs and Expenses:
Cost of sales 198,909 105,037 103,652 51,011
Selling, general and
administrative
expenses 1,098,419 548,583 567,451 349,143
Interest expense 85,918 70,314 42,927 60,715
Other (income) -- (10,017) -- (10,017)
----------- ----------- ----------- -----------
1,383,246 713,917 714,030 450,852
----------- ----------- ----------- -----------
(Loss) before income
tax provision (330,760) (200,572) (203,214) (136,471)
Minority interest in
net (loss) of
consolidated subsidiary (13,863) -- (25,331) --
----------- ----------- ----------- -----------
(Loss) before income
tax provision (316,897) (200,572) (177,883) (136,471)
Income tax provision -- -- -- --
----------- ----------- ----------- -----------
Net (loss) $ (316,897) $ (200,572) $ (177,883) $ (136,471)
=========== =========== =========== ===========
(Loss) per common share $(.30) $(.21) $(.16) $(.15)
===== ===== ===== =====
Weighted average number
of common shares
outstanding 1,062,220 936,677 1,126,351 936,677
=========== =========== =========== ===========
See notes to consolidated financial statements.
-4-
<PAGE>
NMC CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
January 31,
------------------------
1997 1996
--------- ---------
Cash flows from operating activities:
Net (loss) $(316,897) $(200,572)
Adjustments to reconcile net (loss) to
net cash from operating activities:
Depreciation and amortization 202,083 93,741
(Gain) loss on sale of equipment 9,459 (10,017)
Minority interest in loss of con-
solidated subsidiary (13,863) --
Unpaid executive compensation 75,000 --
Changes in operating assets and
liabilities net of effect from
purchase of Water Express 78,526 (72,060)
--------- ---------
Net Cash Provided by (Used in)
Operating Activities 34,308 (188,908)
--------- ---------
Cash flows from investing activities:
Purchase of property, plant and
equipment (140,719) (67,473)
--------- ---------
Cash flows from financing activities:
Proceeds from borrowings 499,443 575,703
Repayments of borrowings (437,094) (279,616)
Proceeds from sale of equipment 36,138 16,382
--------- ---------
Net Cash Provided by
Financing Activities 98,487 312,469
--------- ---------
Foreign currency translation ad-
justment 3,789 (36,730)
--------- ---------
Net increase (decrease) in cash
and cash equivalents (4,135) 19,358
Cash and Cash Equivalents - beginning
of period 15,592 14,043
--------- ---------
Cash and Cash Equivalents - end of
period $ 11,457 $ 33,401
========= =========
(Continued)
See notes to consolidated financial statements
-5-
<PAGE>
NMC CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Continued)
Six Months Ended
January 31,
-----------------------
1997 1996
--------- ---------
Changes in operating assets and liabilities:
Decrease in accounts receivable $ 102,767 $ 99,806
(Increase) in inventories (61,055) (6,626)
Decrease in prepaid expenses and sundry
receivables 87,407 1,754
(Increase) in deferred acquisition costs (94,590) (56,478)
(Decrease) in accounts payable (76,036) (38,138)
Increase (decrease) in accrued expenses 120,936 (70,962)
(Decrease) in income taxes payable -- (810)
(Decrease) in deferred revenue (15,172) (4,027)
Increase in customer deposits 14,269 3,421
--------- ---------
$ 78,526 $ (72,060)
========= =========
Supplemental Information:
Cash paid during the year for:
Interest $ 72,255 $ 11,360
========= =========
Income taxes $ -- $ 810
========= =========
Supplementary information of non-cash
investing and financing activities:
Conversion of convertible debt to common
stock $ 100,000
=========
See notes to consolidated financial statements.
-6-
<PAGE>
NMC CORP. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. The consolidated balance sheet as of January 31, 1997, the consolidated
statement of operations for the six months ended January 31, 1997 and 1996, and
the consolidated statement of cash flows for the periods then ended have been
prepared by NMC Corp. and Subsidiary ("The Company" or "NMC") and are unaudited.
In the opinion of management, all adjustments (consisting solely of normal
recurring adjustments) necessary to present fairly the financial position,
results of operations and cash flows for all periods presented have been made.
Certain items in the January 31, 1996 financial statements have been
reclassified to conform to January 31, 1997 classifications. The information for
July 31, 1996 was derived from audited financial statements.
2. The Board of Directors authorized a 1-10 reverse stock split effective as of
April 17, 1995. All share and per share data for prior periods presented have
been restated to reflect the reverse stock split.
3. On February 21, 1997, the Company completed the sale of its only operating
business, Krystal Fountain Water Company Limited ("Krystal") to Matthew
Mitchison, NMC's fifty (50%) percent equity partner in Krystal. The selling
price was approximately $1,600,000 resulting in a gain on the sale of
approximately $400,000.
Subsequent to the sale the Company liquidated substantially all of its
liabilities. (See Note 9 of Notes to Consolidated Financial Statements). The
Company believes the net cash proceeds resulting from the sale of Krystal after
liquidating the liabilities of the Company will be more than sufficient to
support the Company's operations during the next twelve (12) months. The Company
will also use these funds to pursue additional investment opportunities.
4. On March 14, 1997 the Company amended its original agreement in principle, to
acquire Select Acquisitions, Inc. ("Select"). The amended agreement resolves the
Company exchanging 500,000 shares of NMC common stock for 1,000,000 shares of
common stock of Compost American Holding Company ("CAHC") held by Select.
The Company has entered into an agreement in principle with Brokerage
Services Management, Inc. ("BSM") whereby the Company will issue to BSM
1,500,000 shares of NMC common stock in exchange for BSM assigning to the
Company BSM's right, title and interest in the following contracts:
(1) An agreement with Microplastics, Inc. ("Microplastics") to acquire
Microplastic's North and South Americas rights to the design and
methodology of enhancing and converting injection mold machines to accept
recycled plastics and product plastic pallets and other plastic container
and products.
(2) An agreement with Microplastics to acquire Microplastic's rights to a
Liquid Nitrogen Injection Molding Process for the conversion of waste
plastics into plastic products including, but not limited to, plastic
pallets and to develop a facility in the Miami, Florida area for the
purpose of recycling waste plastic and manufacturing plastic pallets and
other plastic products.
-7-
<PAGE>
NMC CORP. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(3) An agreement to purchase Universal Vinyl Corporation, a plastics
recycling and manufacturing company in Florida, that manufactures
PVC-Vinyl Blinds from recycled plastic, for $1,500,000.
(4) An agreement to purchase a fifty (50%) percent interest in a golf
course community development project in Thomaston, Georgia.
The issuance of shares to BSM is subject to the Company completing its due
diligence and the consummation of the contemplated transactions.
5. In October 1995, the Financial Accounting Standards Board issued SFAS No.
123, "Accounting for Stock-Based Compensation". The standard encourages, but
does not require, companies to recognize compensation expense of grants for
stock, stock options and other equity instruments to employees based on fair
value accounting rules. SFAS No. 123 requires companies that choose not to adopt
the new fair value accounting rules to disclose pro forma net income and
earnings per share under the new method. The standard is effective for fiscal
years beginning after December 15, 1995. The Company has not yet determined if
it will adopt the accounting provisions of SFAS No. 123 or only the disclosure
provision. However, the Company does not believe that adoption of SFAS No. 123
will have a significant effect on its results of operations.
6. (Loss) per common share is computed using the weighted average number of
common shares outstanding during the year. The convertible preferred stock and
exercise of warrants are not considered common share equivalents for purposes of
the computation of earnings per share because their effect is antidilutive.
7. Property, plant and equipment consists of the following:
January 31, July 31,
1997 1996
---------- ----------
Machinery and equipment $1,836,048 $1,652,225
Leasehold improvements 6,197 6,197
Master tapes 20,001 20,001
---------- ----------
1,862,246 1,678,423
Less accumulated depreciation and
amortization 415,553 240,811
---------- ----------
Net Property, Plant and Equipment $1,446,693 $1,437,612
========== ==========
-8-
<PAGE>
NMC CORP. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
9. Short-term debt consists of the following:
January 31, July 31,
1997 1996
---------- ----------
Secured note, due March 20, 1997
interest at 7.5% per year (1) $ 100,000 $ 100,000
Secured note, due the earlier of
March 31, 1997 or within three (3)
days after the closing of a secondary
offering of the Company's securities,
interest at 18% per year (2) 510,791 649,692
Secured note, due the earlier of
July 31, 1997 or within ten (10) days
after the closing of a secondary offering
of the Company's securities, interest at
10% per year (3) 100,000 200,000
Secured note, due on demand, interest
at 5% per year (4) 104,987 71,593
Unsecured note, due on demand,
interest at 5% per year (5) 108,417 103,541
Unsecured note, due on demand, interest
at 5% per year (6) 242,892 120,416
Unsecured note, due on demand,
interest at 5% per year (7) 143,400 6,131
---------- ----------
$1,310,487 $1,251,373
========== ==========
Long-term debt is as follows:
January 31, July 31,
1997 1996
---------- ----------
Secured notes payable, due July, 1997
through April, 2000, interest at 9%
per year $ 86,052 $ 96,287
Less current maturities 30,835 27,343
---------- ----------
$ 55,217 $ 68,944
========== ==========
The scheduled repayment of long-term debt is as follows:
Years Ending July 31,
- - ---------------------
1997 $ 27,343
1998 32,334
1999 16,322
2000 20,288
Thereafter --
----------
$ 96,287
==========
-9-
<PAGE>
NMC CORP. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1) The note payable due Republic Bank was collateralized by a certificate of
deposit of an affiliate of Mrs. Barbara Greenfield ("Mrs. Greenfield"),
wife of Mr. Marvin E. Greenfield ("Mr. Greenfield"), the Company's
President and Chief Executive Officer. The note was repaid on February 28,
1997 from the proceeds from the sale of Krystal.
(2) On December 8, 1995, NMC and Krystal entered into separate loan agreements
with Ballydine Investments Limited ("Ballydine") for a combined
line-of-credit ("line-of-credit") of up to $750,000. The line-of-credit was
guaranteed by NMC and was secured by the fifty (50%) percent of Krystal
owned by the Company. Any amount that Krystal borrowed was secured by an
English debenture ("Security Agreement") from Krystal which encumbered all
of Krystal's assets in favor of Ballydine. The lien on this collateral was
superior to prior liens given to other lenders, including the affiliated
entities.
On September 30, 1996, Krystal paid Ballydine $286,000 which liquidated the
liability to Ballydine from Krystal. The lien on the assets of Krystal by
Ballydine was released. The monies were advanced from the shareholders of
Krystal to repay the loan. The advances from the shareholders were due on
demand if there is sufficient cash flow to pay the shareholders.
As additional consideration for the line-of-credit, the Company will issue
9.9% of the outstanding, fully diluted shares of the Company, or 108,414
shares, in the form of a warrant exercisable at $.001 per share, with
registration rights.
The amount due Ballydine from NMC in the amount of $510,791 was repaid on
February 28, 1997 from the proceeds from the sale of Krystal.
(3) The secured note to an unaffiliated third party was collateralized by all
of the common stock of Krystal owned by the Company subordinated to the
line-of-credit. The note was repaid on February 28, 1997 from the proceeds
from the sale of Krystal.
(4) The secured note payable to Mrs. Greenfield was also collateralized by all
of the common stock of Krystal owned by the Company. The security interest
was subordinate to the line-of-credit and the third party lender. The note
was repaid on March 20, 1997 from the proceeds from the sale of Krystal.
(5) The unsecured note was payable to Mrs. Greenfield representing advances
made by Mrs. Greenfield to Krystal. The note was repaid on February 28,
1997 from the proceeds from the sale of Krystal.
(6) The unsecured note is payable to Matthew Mitchison, the fifty (50%) percent
owner of Krystal in connection with the acquisition of Water Express by
Krystal. This liability was assumed by Krystal as part of the agreement by
Mr. Mitchison to purchase NMC's fifty (50%) percent interest in Krystal.
(7) The unsecured note was payable to Brokerage Services Management, Inc.
("BSM") representing advances for professional fees and interest charges
made on behalf of NMC. The note was repaid on February 28, 1997 from the
proceeds from the sale of Krystal.
-10-
<PAGE>
Item 2. Managements' Discussion and Analysis of Financial Condition and Results
of Operations
-----------------------------------------------------------------------
Liquidity and Capital Resources
- - -------------------------------
On February 21, 1997, the Company consummated the sale of its only
operating subsidiary, Krystal Fountain Water Company Limited. The selling price
was approximately $1,600,000 resulting in a gain of approximately $400,000.
Subsequent to the sale the Company liquidated substantially all of its
liabilities. The net cash proceeds from the sale after the liquidation of the
Company's liabilities should be sufficient to support the Company's operations
for the next twelve (12) months. As of this date, the Company has no operations
to generate any cash flows. The Company will continue to pursue other
investment opportunities.
On March 14, 1997 the Company amended its agreement in principle with
Select Acquisitions, Inc. ("Select"), whereby the Company will exchange 500,000
shares of NMC common stock for 1,000,000 shares of Compost American Holding
Company ("CAHC") common stock owned by Select.
The Company has entered into an agreement in principle with Brokerage
Services Management Inc. ("BSM") whereby BSM has assigned its right, title and
interest in four contracts to purchase various entities and their respective
rights. The Company will issue BSM 1,500,000 shares of NMC common stock as
consideration for the assignment subject to the completion of the Company's due
diligence and the consummation of the contemplated transactions.
In connection with the agreement with Microplastics, Inc. ("Microplastics")
the Company advanced BSM $150,000 as initial funding to purchase equipment for
the Liquid Nitrogen Injection Molding Process. The Company is obligated to pay
within one-hundred twenty (120) days from the date of deposit, the balance of up
to a maximum of $3,500,000 when the molds are ready and the machine has been
subject to test runs. Should the Company not be able to finance the equipment
the Company would lose its right to acquire Microplastic's rights. At that time
BSM will be obligated to repay the $150,000 advance.
The Company has also agreed to obtain approximately $3,000,000 in funding
to finance the golf course community project.
Finally, the Company has agreed to purchase Universal Vinyl Corporation, a
plastics recycling and manufacturing company in Florida, that manufactures
PVC-Vinyl Blinds from recycled plastic, for $1,500,000, of which $1,000,000
shall be in cash payable from the proceeds of a contemplated securities offering
by NMC and $500,000 shall be in the form of NMC common stock equivalent to that
sum based on the then average price of NMC shares based on the bid and ask
average at the date of the closing of the contemplated transactions.
As of this date no financing has been consummated and there is no
assurance that it ever will.
Results of Operations
- - ---------------------
Six Months Ended January 31, 1997 vs. Six Months Ended January 31, 1996
- - -----------------------------------------------------------------------
As of January 31, 1997, the Company currently operates its only operating
business through Krystal. On November 1, 1995, Krystal acquired substantially
all the net assets of Water Express. The operating results of Water Express have
been included in the consolidated statement of operations from the date of
acquisition.
-11-
<PAGE>
Item 2. Managements' Discussion and Analysis of Financial Condition and Results
of Operations (Continued)
-----------------------------------------------------------------------
Revenues from sales increased 105.0% to $1,052,486 during the six months
ended January 31, 1997 from $513,345 for the six months ended January 31, 1996.
The increase is primarily due to the inclusion of Water Express in the
settlement of operations, an increase in the number of customers and more demand
for the Company's product.
Cost of sales increased 89.4% to $198,909 during the six months ended
January 31, 1997 from $105,037 for the six months ended January 31, 1996 due to
the reasons explained above.
Selling, general and administrative expenses increased 100.2% to
$1,098,419 for the six months ended January 31, 1997 from $548,583 for the six
months ended January 31, 1996. The increase is primarily due to the inclusion
of Water Express in the statement of operations, an expansion of the Company's
marketing program, increase in officers compensation and increases in
depreciation of equipment and amortization of goodwill in connection with the
Water Express acquisition.
Interest expense increased to $85,918 for the six months ended January 31,
1997 from $70,314 for the six months ended January 31, 1996. The increase is
attributable to the increase in debt incurred by the Company in the six months
ended January 31, 1997.
The net loss increased 64.9% to $316,897 for the six months ended January
31, 1997 from $200,572 for the six months ended January 31, 1996. The Company
attributes the increase primarily to the increase in officers compensation. The
improved operations of Krystal have not been able to offset the overhead of the
Company at its corporate offices.
Three Months Ended January 31, 1997 vs. Three Months Ended January 31, 1996
- - ---------------------------------------------------------------------------
Revenue from sales increased 62.5% to $510,816 during the three months
ended January 31, 1997 from $314,381 for the three months ended January 31,
1996. The increase is primarily due to the inclusion of Water Express in the
settlement of operations, an increase in the number of customers and more demand
for the Company's product.
Cost of sales increased 103.2% to $103,652 during the three months ended
January 31, 1997 from $51,011 for the three months ended January 31, 1996 due to
the reasons explained above.
Selling, general and administrative expenses increased 62.5% to $567,451
for the three months ended January 31, 1997 from $349,143 for the three months
ended January 31, 1996. The increase is primarily due to the inclusion of
Water Express in the statement of operations, an expansion of the Company's
marketing program, increase in officers compensation and increases in
depreciation of equipment and amortization of goodwill in connection with the
Water Express acquisition.
Interest expense decreased to $42,927 for the three months ended January
31, 1997 from $60,715 for the three months ended January 31, 1996. The decrease
is attributable to the orgination fees charged by Ballydine on advances made to
NMC and Krystal during the three months ended January 31, 1997.
The net loss increased 30.3% to $177,883 for the three months ended January
31, 1997 from $136,471 for the three months ended January 31, 1996. The Company
attributes the increase primarily to the increase in officers compensation. The
improved operations of Krystal have not been able to offset the overhead of the
Company at its corporate offices.
-12-
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits: Exhibit 27.1 Financial Data Schedule.
(b) There were no Current Reports on Form 8-K filed by
the registrant during the quarter ended January 31,
1997.
-13-
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed in its behalf by the
undersigned thereunto duly authorized.
NMC CORP.
----------------------------------------------
(Registrant)
Date: March 21, 1997 By: /s/ Marvin Greenfield
----------------------------------------------
Marvin Greenfield, President and
Treasurer Duly Authorized Officer of the
Registrant (Principal Financial Officer)
-14-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM NMC CORP.
AND SUBSIDIARY FINANCIAL STATEMENTS AT JANUARY 31, 1997 AND THE SIX MONTHS THEN
ENDED AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JAN-31-1997
<CASH> 11,457
<SECURITIES> 0
<RECEIVABLES> 493,929
<ALLOWANCES> 9,000
<INVENTORY> 74,523
<CURRENT-ASSETS> 616,325
<PP&E> 1,862,246
<DEPRECIATION> 415,553
<TOTAL-ASSETS> 3,138,377
<CURRENT-LIABILITIES> 2,839,883
<BONDS> 0
0
257,521
<COMMON> 75,816
<OTHER-SE> (592,519)
<TOTAL-LIABILITY-AND-EQUITY> 3,138,377
<SALES> 1,052,486
<TOTAL-REVENUES> 1,052,486
<CGS> 198,909
<TOTAL-COSTS> 1,297,328
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 85,918
<INCOME-PRETAX> (316,897)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (316,897)
<EPS-PRIMARY> (.30)
<EPS-DILUTED> 0
</TABLE>
