U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10 - QSB
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarterly Period Ended December 31, 1999
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from ___________ to _______________
Commission file number 000-15216
AUTOCORP EQUITIES, INC.
(Exact name of small business issuer as specified in its charter)
Nevada 87 - 0522501
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
2740 N. Dallas Parkway, Suite 110
Plano, Texas 75093
(Address of Principal Executive offices)
972.378.5355
(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. Yes X No___
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 6,189,971 shares of Common
Stock, $.001 par value, as of January 31, 2000.
Transitional Small Business Disclosure Format (check one): Yes___ No X
<PAGE>
INDEX
Page
----
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets at December 31, 1999
(unaudited) and September 30 1999 2
Condensed Consolidated Statements of Operations
(unaudited) for the three months ended December 31, 1999
and December 31, 1998 4
Condensed Consolidated Statements of Cash Flows
(unaudited) for the three months ended December 31, 1999
and December 31, 1998 5
Notes to Condensed Consolidated Financial Statements
(unaudited) 8
Item 2. Management's Discussion and Analysis or Plan of Operation 12
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 15
Item 2. Changes in Securities and Use of Proceeds 15
Item 3. Defaults Upon Senior Securities 15
Item 4. Submission of Matters to a Vote of Security Holders 15
Item 5. Other Information 15
Item 6. Exhibits and Reports on Form 8-K 15
Signatures 16
<PAGE>
Part I
FINANCIAL INFORMATION
Item 1. Financial Statements
AUTOCORP EQUITIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31, 1999 and September 30, 1999
December 31, September 30,
1999 1999
------------- -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 159,325 $ 347,046
Notes receivable, net of allowance
for doubtful accounts of $329,975
at December 31,1999 and $479,926
at September 30,1999 458,077 737,391
Other receivables 12,238 5,783
Inventory 1,401,257 1,607,538
Prepaid expenses 54,283 59,066
------------- -------------
Total current assets 2,085,180 2,756,824
PROPERTY AND EQUIPMENT
Furniture and fixtures 11,295 11,295
Office equipment 213,862 208,513
Computer equipment 43,897 42,134
Automobiles 2,500 2,500
Machinery and equipment 100,103 91,865
Leasehold improvements 21,674 21,674
------------- -------------
393,331 377,981
Less accumulated depreciation 42,496 36,216
------------- -------------
350,835 341,765
OTHER ASSETS
Deposits 7,764 7,743
------------- -------------
Total assets $ 2,443,779 $ 3,106,332
============= =============
The accompanying notes are an integral part of these condensed consolidated
financial statements.
2
<PAGE>
AUTOCORP EQUITIES,INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31, 1999 and September 30, 1999
December 31, September 30,
1999 1999
------------- -------------
LIABILITIES AND SHAREHOLDERS' DEFICIT
CURRENT LIABILITIES:
Current portion, long-term debt $ 131,223 $ 683,001
Accounts payable 396,286 292,772
Accrued expenses 490,018 529,302
Sales tax payable 947,488 641,824
Line of credit 1,397,133 1,196,921
Related party payable 1,627,193 538,847
Note payable, related party 4,235,620 4,590,617
Other current liabilities 193,853 219,077
------------- -------------
Total current liabilities 9,418,814 8,692,361
Provision for recourse liability 3,228,000 2,884,000
Related party payable 6,578,485 6,578,485
Commitments and contingencies - -
SHAREHOLDERS' DEFICIT:
Convertible preferred stock, no par value,
5% non-cumulative; liquidation preference
of $1.00 per share; 10,000,000 shares
authorized, 0 shares issued and outstanding
at December 31, 1999 - -
Common stock, par value $.001; 110,000,000
shares authorized, 6,189,971 and 6,137,184
shares issued and outstanding at December 31,
1999 and September 30,1999,respectively 6,190 6,137
Additional paid-in-capital 11,584,392 11,536,718
Accumulated deficit (28,134,602) (26,353,869)
Less shares in trust (227,500) (227,500)
Less stock subscriptions receivable (10,000) (10,000)
------------- -------------
Total shareholders' deficit (16,781,520) (15,048,514)
------------- -------------
Total liabilities and
shareholders' deficit $ 2,443,779 $ 3,106,332
============= =============
The accompanying notes are an integral part of these condensed consolidated
financial statements.
3
<PAGE>
AUTOCORP EQUITIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the Three Months Ended December 31, 1999 and 1998
Three Months Ended
December 31,
1999 1998
------------ ------------
Net Revenues $ 6,548,529 $ 1,027,078
Cost of sales 5,479,363 534,039
------------ ------------
Gross profit 1,069,166 493,039
Selling, administrative
and other operating expenses 1,473,328 645,235
Provision for recourse liability 1,219,515 330,000
------------ ------------
Operating loss (1,623,677) (482,196)
Other expense:
Interest expense (157,056) (162,796)
Gain on disposition of subsidiaries - 595,245
------------ ------------
Net loss $ (1,780,733) $ (49,747)
============ ============
Net loss per share,
basic and diluted $ (.29) $ (.01)
============ ============
Weighted average number
of shares outstanding,
basic and diluted 6,170,463 6,155,218
============ ============
The accompanying notes are an integral part of these condensed consolidated
financial statements.
4
<PAGE>
AUTOCORP EQUITIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Three Months Ended December 31, 1999 and 1998
1999 1998
------------ ------------
Net loss $( 1,780,733) $ ( 49,747)
Adjustments to reconcile
net loss to net cash used
in operating activities:
Depreciation and
amortization 6,280 9,788
Gain on disposition of subsidiaries - (595,245)
Provision for recourse liability 344,000 330,000
Changes in:
Accounts receivable - (187,624)
Notes receivable 279,314 -
Related party payables 733,349 -
Prepaid expenses 4,783 -
Inventory 206,281 (602,207)
Accounts payable 103,514 611,591
Accrued expenses (39,284) -
Sales tax payable 305,664 -
Line of credit 200,212 602,960
Other 16,027 1,700
------------ ------------
Total adjustments 2,160,140 170,963
------------ ------------
Net cash provided by
operating activities 379,407 121,216
------------ ------------
Cash flows from investing activities:
Capital expenditures ( 15,350) (172,395)
------------ ------------
Net cash used in
investing activities ( 15,350) (172,395)
------------ ------------
The accompanying notes are an integral part of these condensed consolidated
financial statements.
5
<PAGE>
AUTOCORP EQUITIES, INC. AND SUBSIDIARIES
CONDENDED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(UNAUDITED)
For the Three Months Ended December 31, 1999 and 1998
1999 1998
----------- -----------
Cash flows from financing activities:
Principal payments
on long-term debt $ (551,778) $ (25,744)
Additional borrowings - 170,000
----------- -----------
Net cash provided (used) by
financing activities (551,778) 144,256
----------- -----------
Net increase/(decrease) in
cash and cash equivalents (187,721) 93,077
Cash and cash equivalents
at beginning of period 347,046 51,979
----------- -----------
Cash and cash equivalents
at end of period $ 159,325 $ 145,056
=========== ===========
Supplemental disclosures of cash flow information:
Cash paid for interest $ 157,056 $ 10,914
=========== ===========
Cash paid for income taxes $ - $ -
=========== ===========
The accompanying notes are an integral part of these condensed consolidated
financial statements.
6
<PAGE>
AUTOCORP EQUITIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(UNAUDITED)
For the Three Months Ended December 31, 1999 and 1998
1999 1998
----------- -----------
Non-cash transactions
Stock issued for services $ 52,787 $ 2,737
During the three months ended December 31, 1998, the Company tendered preferred
shares valued at $6,578,485 and net other equity of $355,803 in exchange for the
extinguishment of $2,223,159 of debt, $4,278,068 of related party payables and
$1,028,306 of other liabilities resulting in a net gain on disposition of
subsidiaries of $595,245. The other equity consisted of $1,724,775 in treasury
stock obtained in the disposition of the Company's subsidiaries, $227,500 of
treasury stock received into a trust, other treasury stock of $2,293,775 issued
in extinguishment of debt and liabilities and $14,303 for 22,000 shares of
common stock converted from debt at $0.65 per share.
The accompanying notes are an integral part of these condensed consolidated
financial statements.
7
<PAGE>
AUTOCORP EQUITIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
December 31, 1999
NOTE 1. BASIS OF PRESENTATION
In the opinion of the Company, the accompanying condensed consolidated financial
statements contain all adjustments necessary to present fairly its financial
position and the results of its operations and cash flows for the periods shown.
Certain prior period amounts have been reclassified to conform to the current
period's presentation.
The preparation of the Company's financial statements in conformity with
generally accepted accounting principles necessarily requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
The results of operations for the respective three month periods are not
necessarily indicative of the results to be expected from a full year of
operations.
These unaudited condensed consolidated financial statements should be read in
conjunction with the Company's annual report on Form 10-KSB for the year ended
September 30, 1999.
A summary of significant accounting policies is currently on file with the
Securities and Exchange Commission on Form 10-KSB.
During the three months ended December 31, 1999 and the full year ended
September 30, 1999, the Company's operations were negatively impacted by the
poor performance of the automobile sales and financing subsidiaries. The Company
has a shareholder's deficit of approximately $16,782,000 at December 31, 1999
and a history of operating losses. At December 31, 1999, the Company also had
negative working capital of approximately $7,335,000.
Management's plans to return to profitability are three-fold. First, to divest
itself of non-productive operations. Second, to reduce debt and make
arrangements to reduce the Company's exposure to further liability. Third, to
generate higher quality notes receivable. The Company has no plans to purchase
note portfolios in the near term.
It is not possible to predict the success of management's subsequent efforts to
achieve profitability. If management is unable to achieve its goals, the Company
may find it necessary to undertake other actions as may be appropriate.
The accompanying condensed consolidated financial statements do not include any
adjustments relating to the recoverability and classification of the recorded
asset amounts and classification of liabilities that might be necessary should
the Company be unable to continue in existence.
8
<PAGE>
AUTOCORP EQUITIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
December 31, 1999
NOTE 2. NOTES RECEIVABLE
Notes receivable consist of the following at December 31, 1999 and September 30,
1999:
December 31, September 30,
1999 1999
------------- -------------
Notes receivable, secured by autos, interest
rate from 24% to 27%, 36 month terms,
maturing by 2002 $ 788,052 $ 1,217,317
Allowance for doubtful accounts 156,960 79,926
Provision for discount on sale of notes receivable 173,015 400,000
------------- -------------
$ 458,077 $ 737,391
============= =============
The Company expects to sell its notes receivable within a year.
NOTE 3. DISPOSITION OF SUBSIDIARIES
In December, 1998, an agreement was reached between the two officers (and
largest shareholders) of the Company and the largest creditor of the Company.
The Company agreed to take back 2,653,500 shares of common stock owned by the
two officers. In exchange, the Company transferred and disposed of control over
certain operations of the Company to individuals who were officers of the
Company. The largest creditor, AutoPrime, was tendered 1,091,113 shares of
common stock and 6,578,485 shares of preferred stock, in exchange for the
conversion of debt of $6,081,042. These shares were placed in trust for
AutoPrime. The Company further agreed to put certain shares in trust accounts to
help settle other liabilities and contingencies, including obligations to
certain long-term bondholders.
NOTE 4. LINE OF CREDIT
The Company currently has two lines of credit totaling $1,400,000 with AutoPrime
to purchase used and repossessed cars for resale on the Company lots. Both lines
of credit, or flooring plans, are secured 100% by the vehicle inventory. The
line to purchase used cars is for $1,000,000 and bore interest at a rate of 15%
per annum at December 31, 1999. The line to purchase repossessed cars is for
$400,000 and bears interest at 12% per annum. The current agreements expire
March 8, 2000. There are certain covenants in the agreements that allow for an
earlier due date. At December 31, 1999 and September 30 ,1999, the amount
outstanding against the total was $1,397,133 and $1,196,921, respectively.
9
<PAGE>
<TABLE>
<CAPTION>
AUTOCORP EQUITIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
December 31, 1999
NOTE 5. LONG - TERM DEBT
Long - term debt at December 31, 1999 and September 30, 1999 consisted of the
following:
December 31, September 30,
1999 1999
------------- -------------
<S> <C> <C>
Note payable, unsecured, for acquisition of car lot,
payable in quarterly installments of $50,000,
non-interest bearing, matures March 2000 $ 84,000 $ 134,000
Notepayable, secured by retail installment notes,
interest on matured, unpaid principal payable at
12% per annum, matures December 1999 - 473,445
Note payable, unsecured, for acquisition of finance
servicing facility, payable in monthly installments
of $9,444, non-interest bearing, matures May 2000 47,223 75,556
------------- -------------
131,223 683,001
Less current portion 131,223 683,001
------------- -------------
$ - $ -
============= =============
</TABLE>
NOTE 6. COMMITMENTS AND CONTINGENCIES
The Company leases office space and auto lots under non-cancelable operating
lease agreements which require payments of $17,109 per month and expire in June
2004.
The Company sells used automobiles using auto financing contracts. The Company
then sells the contracts to a finance company, generally under a recourse
agreement, whereby the Company guarantees the repayment of the note. If the note
holder defaults, the Company is responsible for repossessing the automobile and
then either paying the amount due the finance company or substituting a new loan
for the one in default.
In October 1997, the Company entered into an agreement with AutoPrime to provide
financing for the Company's automobile transactions. The agreement allows
AutoPrime to buy the notes at a percentage of face value (ranging from 55% to
70%) and then to pay the Company an additional percentage as a service fee
(ranging from 20% to 37%) on all gross collections. The loss ratios of the notes
sold have been much greater than expected to date. However, with a change in
management and changes in the Company's lending criteria, management expects to
have better loan collection results in future periods. The loan balances and
contingent losses reserved are as follows:
December 31, September 30,
1999 1999
------------- -------------
Total liability, including the contracts sold
to related parties $ 12,900,000 $ 11,536,000
Recorded provision for recourse liability 3,228,000 2,884,000
10
<PAGE>
AUTOCORP EQUITIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
December 31, 1999
NOTE 7. STOCK TRANSACTIONS
In November 1999, the Company issued 52,787 shares of common stock at $ .001 par
value for consulting services.
NOTE 8. RELATED PARTY TRANSACTIONS
In April and September 1999, the Company issued promissory notes to AutoPrime
totaling $4,935,620 to restructure payables to AutoPrime. These notes require
monthly payments totaling $100,000, are due June 1, 2000 and incur interest at
9% per annum. At December 31, 1999 the balance on these notes was $4,235,620.
11
<PAGE>
AUTOCORP EQUITIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
December 31, 1999
Item 2. Management's Discussion and Analysis of Financial Condition or Plan of
Operation
(a) Plan of Operation.
Not Applicable.
(b) Management's Discussion and Analysis of Financial Condition
and Results of Operations.
Forward looking statements:
This report contains forward looking statements. Additional written or oral
forward looking statements may be made by the Company from time to time in
filings with the Securities and Exchange Commission or otherwise. Such forward
looking statements are within the meaning of that term in Section 27A of the
Securities Act, and Section 21E of the Securities Exchange Act of 1934, as
amended (the "Exchange Act") . Such statements may include, but not be limited
to, projections of revenue, income, or loss, estimates of capital expenditures,
plans for future operations, products or services, financing needs or plans, as
well as assumptions relating to the foregoing. The words "believe", "expect",
"anticipate", "estimate" , "project" and similar expressions identify forward
looking statements, which speak only as of the date the statement was made.
Forward looking statements are inherently subject to risks and uncertainties,
some of which cannot be predicted or quantified. Future events and actual
results could differ materially from those set forth in, contemplated by, or
underlying the forward looking statements. The Company undertakes no obligation
to publicly update or revise any forward looking statements, whether as a result
of new information, future events, or otherwise. The following disclosures, as
well as other statements in this Report on Form 10 - QSB, including those in the
notes to the Company's consolidated financial statements, describe factors,
among others, that could contribute to or cause such differences, or that could
affect the Company's stock price.
RESULTS OF OPERATIONS
Overview
The Company operates "Buy Here - Pay Here" used car dealerships and underwrites,
finances and services retail installment contracts generated by sales of used
cars by the Company's dealerships. The Company targets the non - prime borrowing
segment of the automobile financing industry. The Company finances much of its
operations by selling the contracts to various lending sources on a full
recourse basis. The contracts are sold at a 30% to 45% discount and the Company
retains certain servicing income from collection of the contracts.
In fiscal 1999 the Company experienced a complete transformation from 1998. The
operations and management were dramatically changed. Most of the used car lots
operated in 1998 were closed and new lots were added so that at the end of
fiscal 1999 the Company was operating five lots in total, all of which were in
Texas. Three are in Dallas, one in Austin and one in Lufkin. A change of control
took place and a new Chief Executive Officer was hired who has put a new
management team in place. A loan servicing operation was established with four
offices, one in Kentucky and three in Texas. Both the level of car sales and the
volume of retail installment contracts serviced increased significantly.
Although the Company is in the same business , the size, focus and direction
that currently is in place bears little resemblance to what existed at the end
of fiscal 1998.
12
<PAGE>
AUTOCORP EQUITIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
December 31, 1999
General Discussion
Net sales of used cars continued the trend established in the latter portion of
1999 and totaled $6,123,000 in the first quarter of 2000, compared to $813,000
in the comparable period in 1999. With five used car lots in operation for all
the 2000 first quarter, volumes were representative of the operational capacity
available.
Service fee revenues amounted to $426,000 in the 2000 first quarter,
approximately twice the level of $214,000 realized in the first quarter of 1999.
The 2000 result is also due to the continuation of the program put in place in
the latter part of 1999, representing a significant increase in the level of
loan servicing activity by the Company.
Gross profit of $1,069,166 in first quarter 2000 was an increase in absolute
dollars over the comparable period in the prior year, however the percentage
relationship to sales declined to 16.3% from 48.0% in the prior year period. In
addition, there was also a decline from the 39.6% rate of the fourth quarter of
1999. This is attributable to the large portion of sales of repossessed units in
the sales mix of the current year quarter . Sales of repossessed units are
typically lower margin, in particular because of the high level of
reconditioning expense required. The high level of repossessed units sales in
the first quarter 2000 sales mix is attributable to the large number of
repossessed units that resulted from the substantial amount of loan defaults
that were experienced at the end of fiscal 1999.
Selling, administrative and other operating expenses of $1,473,328 represented
22.5% of sales , a substantial reduction from the 62.8% level of one year ago.
As significant is that the most recent quarter's level is below the absolute
dollar level of fourth quarter 1999, and approximately 10 percentage points
below the percentage of sales rate experienced in fourth quarter 1999. This is
the result of the cost reduction efforts made in the latter part of fourth
quarter 1999.
The provision for recourse liability increased from $330,000 in first quarter of
1999 to $1,219,515 in the current quarter. The major difference results from
charges of approximately $864,000 in first quarter 2000 related to installment
loan defaults. Although improvements have been made, the Company still has not
achieved the desired level of improvement in the performance of the loan
portfolio on which it has a recourse obligation.
Interest expense is incurred by the Company in connection with its line of
credit that is used to floor purchased automobiles and from the outstanding note
payable to AutoPrime.
In December 1998, an agreement was reached between two officers (and largest
shareholders) of the Company and the largest creditor of the Company. The
Company agreed to take back 2,653,500 shares of Common stock owned by the
officers. In exchange, the Company transferred and disposed of control over
certain operations of the Company to the officers and a gain on disposition was
recorded as a result.
LIQUIDITY
The Company continues to be in a negative working capital position and to be
dependent on AutoPrime to provide the needed working capital to supplement
internally generated cash flow in funding operating needs of the Company. As a
result of the significant changes made to operations and management in fiscal
1999, there has been a substantial improvement in the cash flow performance of
the Company. Management believes that AutoPrime will continue to support the
working capital needs of the Company until such time as the Company becomes cash
self -sufficient.
13
<PAGE>
AUTOCORP EQUITIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
December 31, 1999
Effect of Inflation
The Company does not expect any material negative effect to operations from an
increase in the inflation rate.
Concentration of Risk
The Company is reliant on the financing supplied by AutoPrime. Management
believes that because of the related party relationship with AutoPrime,
Autoprime will provide the appropriate support that will allow the Company to
continue to finance its automobile transactions.
Year 2000 Compliance
The Company has assessed its need to address and prepare for the potential
impact of the year 2000 on the ability of its computerized systems to accurately
process information that may be date sensitive. Any programs that recognize a
date using "00" as the year 1900 rather than the year 2000 could result in
errors or system failures. Modifications to and replacements of portions of the
Company's software have been made to address this issue. In the opinion of
management, the changes made will result in its computer systems functioning
properly with respect to dates in the year 2000 and thereafter
14
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Previously reported in Form 10-KSB, filed January 13, 2000.
Item 2. Changes in Securities and Use of Proceeds
Not Applicable.
Item 3. Defaults Upon Senior Securities
Not Applicable.
Item 4. Submission of Matters to a Vote of Sedurity Holders
Not Applicable.
Item 5. Other Information
Not Applicable.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Attached as Exhibits are the following documents.
27. Financial data schedule.
(b) Reports on Form 8-K
Not Applicable.
15
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto authorized.
AutoCorp Equities, Inc.
Registrant
Date: February 18, 2000 By: /s/ Hunter Ennis
-----------------------------------
Hunter Ennis
Secretary, Treasurer and
Director (Principal Financial
Officer)
16
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
</LEGEND>
<CIK> 0000790066
<NAME> AutoCorp Equities, Inc.
<MULTIPLIER> 1
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-2000
<PERIOD-START> OCT-01-1999
<PERIOD-END> DEC-31-1999
<EXCHANGE-RATE> 1
<CASH> 159,325
<SECURITIES> 0
<RECEIVABLES> 458,077
<ALLOWANCES> 329,975
<INVENTORY> 1,401,257
<CURRENT-ASSETS> 2,085,180
<PP&E> 393,331
<DEPRECIATION> (42,496)
<TOTAL-ASSETS> 2,443,779
<CURRENT-LIABILITIES> 9,418,814
<BONDS> 0
0
0
<COMMON> 6,190
<OTHER-SE> (16,781,520)
<TOTAL-LIABILITY-AND-EQUITY> 2,443,779
<SALES> 6,548,529
<TOTAL-REVENUES> 6,548,529
<CGS> 5,479,363
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,473,328
<LOSS-PROVISION> 1,219,515
<INTEREST-EXPENSE> 157,056
<INCOME-PRETAX> (1,780,733)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,780,733)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,780,733)
<EPS-BASIC> (0.29)
<EPS-DILUTED> (0.29)
</TABLE>
