<PAGE>
FORM 10-QSB
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 JUNE 30, 1995
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
_________________________
For Quarter Ended June 30, 1995 Commission File #0-15303
UNICO, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 73-1215433
------------------------------- ----------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
1101-B SOVEREIGN ROW, OKLAHOMA CITY, OK 73108
----------------------------------------------------
(Address of principal executive offices) (Zip Code)
(Registrant's telephone no., including area code) (405) 848-9511
--------------
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 ___
----
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Class: Common Stock, $.01 par value
------------------------------------
Number of SHARES OUTSTANDING as of August 11, 1995 7,883,095
---------
<PAGE>
UNICO, INC.
INDEX
-----
<TABLE>
<CAPTION>
Page No.
--------
PART I - FINANCIAL INFORMATION
<S> <C> <C>
ITEM 1 Consolidated Balance Sheets
June 30, 1995 and December 31, 1994 3 & 4
Consolidated Statements of Operations
For the Quarter Ended June 30, 1995
and the Quarter Ended June 30, 1994 5
For the Six Months Ended June 30, 1995
and the Six Months Ended June 30, 1994 6
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 1995 7
and the Six Months Ended June 30, 1994
Notes to Interim Consolidated Financial Statements 8
ITEM 2 Management's Discussion and Analysis of
Financial Condition and Results of
Operations 10
PART II - OTHER INFORMATION 13
SIGNATURE PAGE 14
</TABLE>
2
-
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
------------------------------
UNICO, INC.
-----------
CONSOLIDATED BALANCE SHEETS 1 OF 2
--------------------------- ------
ASSETS
------
<TABLE>
<CAPTION>
June 30, December 31,
CURRENT: 1995 1994
---------- ------------
<S> <C> <C>
Cash and cash equivalents $490,223 $708,742
Accounts receivable:
Trade (net of allowance for uncollectible
accounts of $379,297 and $334,553) 1,940,884 1,789,437
Inventory 289,182 214,402
Notes receivable 6,482 6,482
Notes receivable - Stockholders 280,000 280,000
Prepaid expenses 138,233 109,415
Deferred tax asset 19,134 19,134
----------- -----------
Total current assets 3,164,138 3,127,612
PROPERTY:
Furniture, fixtures, & equipment 4,340,245 4,010,540
Leasehold improvements 188,931 136,144
Less accumulated depreciation (1,593,462) (1,377,225)
----------- -----------
Property, net 2,935,714 2,769,459
GOODWILL (net of amortization of
$294,220 and $272,754) 1,730,801 1,627,826
DEFERRED TAX ASSET 238,396 247,866
DEPOSITS AND OTHER 499,551 486,848
----------- -----------
TOTAL $8,568,600 $8,259,611
=========== ===========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
3
-
<PAGE>
UNICO, INC.
-----------
CONSOLIDATED BALANCE SHEETS 2 OF 2
--------------------------- ------
<TABLE>
<CAPTION>
LIABILITIES & STOCKHOLDERS' EQUITY June 30, December 31,
----------------------------------
1995 1994
----------- -----------
<S> <C> <C>
CURRENT LIABILITIES:
Accounts payable $ 1,228,640 $ 1,074,977
Accrued liabilities 311,506 277,021
Notes payable, current portion 212,775 301,252
Deferred revenue 107,879
----------- -----------
Total current liabilities 1,752,921 1,761,129
LONG-TERM LIABILITIES:
Notes payable 1,267,259 1,153,556
Convertible debenture - Affiliate 1,250,000 1,250,000
Subordinated debenture 560,000 560,000
Other 109,314 253,563
----------- -----------
Total long-term liabilities 3,186,573 3,217,119
----------- -----------
Total liabilities 4,939,494 4,978,248
REDEEMABLE PREFERRED STOCK:
Preferred stock - $.01 par value:
5,000,000 shares authorized;
Series A and B Redeemable Preferred stock -
280 shares issued and outstanding at June 30, 1995 3 6
and 600 shares issued and outstanding at December 31, 1994
COMMITMENTS & CONTINGENCIES (NOTE 2)
STOCKHOLDERS' EQUITY:
Preferred stock - $.01 par value:
5,000,000 shares authorized;
Series A Convertible Preferred stock -
1,000 shares issued and outstanding December 31, 1994 10
Common stock - $.01 par value:
20,000,000 shares authorized;
8,054,118 shares outstanding at June 30, 1995
and 7,477,544 at December 31, 1994 80,541 74,773
Additional paid-in capital 5,264,401 5,070,024
Accumulated deficit (1,423,762) (1,571,373)
----------- ------------
3,921,183 3,573,440
Less treasury stock (171,023 shares at cost) (292,077) (292,077)
----------- -----------
Total stockholders' equity 3,629,106 3,281,363
----------- -----------
TOTAL $ 8,568,600 $ 8,259,611
=========== ===========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
4
-
<PAGE>
UNICO, INC.
-----------
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE QUARTERS ENDED JUNE 30, 1995 AND 1994
---------------------------------------------
<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
REVENUES:
Coupon and advertising sales,
net of discounts and allowances $3,337,200 $3,604,675
Franchise fees 28,150 28,255
Other 166,549 285,567
---------- ----------
TOTAL REVENUES 3,531,899 3,918,497
---------- ----------
EXPENSES:
Production 2,470,180 2,503,510
General and administrative 709,770 1,034,143
Franchise development 96,949 76,759
Interest Expense - Affiliate 39,384 38,528
Interest Expense - Other 65,356 45,150
---------- ----------
TOTAL EXPENSES 3,381,639 3,698,090
---------- ----------
NET INCOME BEFORE $ 150,260 $ 220,407
INCOME TAXES
DEFERRED INCOME TAX EXPENSE 6,741
---------- ----------
NET INCOME $ 143,519 $ 220,407
========== ==========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 7,728,342 6,883,766
========== ==========
NET INCOME PER COMMON SHARE $ .02 $ .03
========== ==========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
5
-
<PAGE>
UNICO, INC.
-----------
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED June 30, 1995 and 1994
-----------------------------------------------
<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
REVENUES:
Coupon and advertising sales,
net of discounts and allowances $6,384,074 $7,383,478
Franchise fees 28,150 56,983
Other 259,518 349,471
---------- ----------
TOTAL REVENUES 6,671,742 7,789,932
---------- ----------
EXPENSES:
Production 4,568,344 5,042,721
General and administrative 1,566,066 2,015,435
Franchise development 195,277 142,492
Interest Expense - Affiliate 77,912 77,056
Interest Expense - Other 107,061 97,616
---------- ----------
TOTAL EXPENSES 6,514,660 7,375,320
---------- ----------
NET INCOME BEFORE $ 157,082 $ 414,612
INCOME TAXES
DEFERRED INCOME TAX EXPENSE 9,470
---------- ----------
NET INCOME $ 147,612 $ 414,612
========== ==========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 7,557,533 6,867,566
========== ==========
NET INCOME PER COMMON SHARE $.02 $.06
========== ==========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
6
-
<PAGE>
UNICO, INC.
-----------
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
-----------------------------------------------
<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 147,612 $ 414,612
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation & amortization 251,149 265,790
Provision for bad debts 44,744 22,800
Deferred income taxes 9,470
Other income Effect
of Exchange of Stock for Debt (121,561)
Changes in operating assets & liabilities:
Accounts receivable (196,191) (281,077)
Prepaid expenses and inventory (103,600) (128,913)
Deposits and other (12,703) 47,568
Accounts payable and accrued liabilities 227,707 484,547
Deferred revenue (107,879) (183,427)
--------- ---------
Net Cash Provided by Operating Activities 138,748 641,900
--------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property (382,492) (276,104)
Cash received from Stock Options 45,000
Repayment from note receivable 109,350
---------- -------
Net Cash Used in Investing Activities (382,492) (121,754)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from debentures 25,000
Proceeds from notes payable 315,000 540,000
Payment of notes payable (289,775) (123,462)
Payment of funding costs (62,834)
---------- ----------
Net Cash Provided by (Used in) Financing Activities 25,225 378,704
---------- --------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (218,519) 898,850
CASH AND CASH EQUIVALENTS,
Beginning of Period 708,742 341,415
--------- ---------
CASH AND CASH EQUIVALENTS,
End of Period $ 490,223 $ 1,240,265
========= ===========
SUPPLEMENTAL CASH FLOW DISCLOSURES:
Cash paid for income taxes $ 0 $ 0
Cash paid for interest 192,607 174,672
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
7
-
<PAGE>
UNICO, INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIODS ENDED June 30, 1995 and 1994
--------------------------------------------
1. BASIS OF PRESENTATION
---------------------
The interim consolidated financial statements at June 30, 1995 and for the
three and six months ended June 30, 1995, and 1994 are unaudited, but include
all adjustments which the Company considers necessary for a fair presentation.
The December 31, 1994 balance sheet was derived from the Company's audited
financial statements.
The accompanying unaudited financials are for the interim periods and do not
include all disclosures normally provided in annual financial statements, and
should be read in conjunction with the Company's audited financial statements.
The accompanying unaudited interim financial statements for the three and six
months ended June 30, 1995 are not necessarily indicative of the results which
can be expected for the entire fiscal year.
2. COMMITMENTS & CONTINGENCIES
---------------------------
The Florida Department of Revenue has issued a Notice of Intent to levy
additional sales taxes with penalty and interest charges totalling approximately
$480,000 against the Company's subsidiary, Cal-Central Marketing Corporation.
The Company has filed a formal objection to the Intent to Levy and intends to
vigorously contest substantial aspects of the audit which resulted in the levy.
A liability for this matter was recorded by the subsidiary in a prior period and
is included in other long-term liabilities in the financial statements at
December 31, 1994 and June 30, 1995. While the ultimate outcome cannot be
predicted, management believes that the amount accrued for this contingency is
adequate and that resolution of this issue will not have a material adverse
effect on the Company's financial position or results of operation.
3. INCOME TAXES
------------
Management has determined that it is not more likely than not that the Company
will be able to realize all the tax benefits from the available net operating
losses carryforward and has, therefore, provided a valuation allowance of
$878,364. Given the level of net income before taxes in 1994, and the
expectation of net income in 1995, the Company has recognized a net deferred tax
asset of $267,000 at December 31, 1994 and $257,530 at June 30, 1995. A deferred
income tax benefit of $267,000 was recognized for 1994 and $53,363 was
recognized for the six months ended June 30, 1995. Management will continue to
evaluate the need to increase or decrease the valuation allowance as operating
results for 1995 develop further. The Company recognized a $9,470 deferred
income tax provision for the six months ended June 30, 1995.
4. OTHER INCOME
------------
In February, 1994, the Company restructured a $130,000 Note Receivable and
approximately $120,000 in accounts receivable from The American Education
Corporation ("TAEC"), in connection with the recapitalization of TAEC. The
terms of the restructuring provided for a cash payment of $75,000, a one year
note for $50,000 with 7% annual interest, and 260,602 shares of TAEC Common
Stock. The new note was paid in March 1994. In addition, the Company converted
its TAEC Convertible Preferred Stock into 1,371,420 shares of TAEC Common Stock.
On June 9, 1994, the Company sold its investment in TAEC Common Stock for cash.
Total proceeds of the sale were $501,520 and resulted in other income of
approximately $340,000.
8
-
<PAGE>
5. EXCHANGE OF DEBT FOR STOCK
--------------------------
On February 22, 1995, the Company entered into an agreement with the holders
of the Company's Redeemable Preferred stock to exchange 320 shares of such
stock for 355,556 shares of Common stock. This transaction was completed with
the issuance of these restricted shares on April 20, 1995. The impact of this
transaction was a $320,000 reduction of required future cash redemption.
As a component of the consolidation of administrative functions and reduction
of debt at the Company's subsidiary, Cal-Central Marketing Corporation, the
Company entered into agreements on February 22, 1995 with two vendors of the
Company to exchange 92,963 shares of Common stock for $83,667 of accounts
payable in lieu of cash payment. Additional agreements were reached on the
same date with two note holders of Cal-Central Marketing Corporation, to
exchange $115,250 of notes payable, in lieu of payment, for 128,055 shares of
Common stock of the Company. These transactions were completed with the
issuance of the restricted shares on April 20, 1995.
Due to a prevailing market price that was lower than the agreed upon exchange
price of common stock for these liabilities, the Company recognized gross
benefit of approximately $120,000, offset by expenses or accrued expenses of
approximately $80,000, which resulted in other revenue of approximately
$37,000. Accounting for these events is reflected in the accompanying
financial statements.
Subsequent to December 31, 1994, the conversion rights to the Company's
outstanding convertible preferred stock expired and the stock was cancelled.
9
-
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
_______________________________________________________
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
The Company's principal measures of liquidity are cash, certificates of
deposit, accounts receivable and saleable inventory. Also, management deems
appropriately managed and collateralized bank lines of credit as a proper
supplement to its liquidity.
The Company's working capital was $1,411,217 at June 30, 1995, a 3%
increase from December 31, 1994. This change reflects: a decrease in Cash and
Equivalents of $218,519 resulting primarily from payment of debt and additions
to plant and equipment; a net increase of $151,447 in trade Accounts Receivable;
an increase of $74,780 in paper Inventory at United Coupon Corporation ("United
Coupon") in preparation for upcoming peak periods; and an increase of $28,818 in
Prepaid Expenses related to payment of various annual charges and expenses.
These increases were partially offset by an increase of $153,663 in Accounts
Payable and a $34,485 increase in Accrued Liabilities related to increasing
business activity and build up of inventory. Working capital was also aided by
a $107,879 reduction in Deferred Revenue related to timing of work completion
and billing at the end of the quarter as compared to the end of the year. Also,
current Notes Payable was reduced by $88,477. Certain liabilities have maturity
dates of less than twelve months. The Company has an established history of
renewal for these items. Management has the intent and believes the Company has
the ability to renew these items, thus, they have been appropriately classified
as long term.
Long term liabilities decreased by $30,546 during the period as a result of
payment of debt and reclassification of pertinent portions to short term.
Management has considered acquisitions and additions which have required
substantial utilization of funds, as well as anticipated operating requirements
for the near term, and believes that sufficient liquidity is available from
operations and through borrowing capacity to support the requirements of
continuing operations for the foreseeable future. Management considers
acquisition of existing businesses and product lines as appropriate means for
accelerating the growth of the Company and for providing return to investors.
Such transactions, if completed, could require securities, debt, or cash beyond
that currently available within the Company. Management will consider
appropriate options available in providing such funding.
RESULTS OF OPERATIONS - QUARTER ENDED JUNE 30, 1995
AS COMPARED TO THE QUARTER ENDED JUNE 30, 1994
----------------------------------------------
Gross Revenue for the quarter ended June 30, 1995 declined 10% from the
same period in 1994, from $3,918,497 to $3,531,899. Coupon and Advertising
Sales, which include coupon production service fees, national account
advertising fees, advertising sales and commercial printing, and which represent
95% of total revenue for 1995, decreased by 7%, from the corresponding period in
1994. Coupon Sales from United Coupon Corporation were equivalent to the prior
year, at $1,363,511 compared to $1,365,331 for the same period in 1994.
National Account sales and Commercial Printing revenue increased approximately
$204,147 during the current period, while Advertising Sales at Cal-Central
declined by $471,622. The increase in National Account sales is related to
heavier emphasis on this revenue source within United Coupon. The increase in
Commercial Printing is a result of the establishment of this specialty printing
division within United Coupon during the latter portion of 1994. The Cal-
Central decline was caused by a reduction in menu products produced for two
national restaurant chains and planned down-sizing through the elimination of
marginally profitable sales locations.
Franchise Fee Income for the period was virtually equal to the prior year,
with $28,150 reported for the 1995 quarter compared to $28,255 for the same
period in 1994. Franchise sales continue to receive intensive effort and
management attention.
Other Revenue for the current period was $166,549 compared to $285,567 in
1994. Included in the 1994 results, is $175,000 of non-recurring proceeds from
the sale of the Company's prior publishing assets and
10
--
<PAGE>
subsequent third party investment. Included in 1995 results is approximately
$37,000 of other income related to the exchange of common stock for payment of
liabilities at an exchange price per share that was greater than the prevailing
market price for common stock.
Production Expenses, which include art development, printing, bindery,
delivery, product development, distributor support and selling expense,
decreased $33,330 during the 1995 quarter in contrast to the same period in
1994. This decrease is related to the decline in Advertising Sales and related
production activities at Cal-Central, offset by the higher levels of Commercial
Printing at United Coupon.
General and Administrative Expense decreased 31% over the same period last
year primarily as a result of cost containment and consolidation of
administrative functions at Cal-Central. The decrease is comprised of a
$294,088 expense reduction at Cal-Central along with a similar reduction of
$29,949 at United Coupon.
Franchise Development Costs, which include the costs of developing,
advertising, selling, training and supporting United Coupon franchises,
increased approximately 26% during the 1995 quarter, from $76,759 in 1994 to
$96,949 in 1995. This increase reflects expanded advertising for new franchise
sales as well as the addition of franchise sales staff.
Interest Expense - Other increased 45% over the same period last year as a
result of higher prevailing interest rates and slightly higher levels of debt
subject to interest.
Net Income for the current period declined by $76,888 from the prior year
as a result of the non-recurring Other Revenue experienced in 1994, offset
partially by the net effect of revenue variations and cost reductions noted
above.
The Company is currently involved in the consolidation of administrative
functions for its subsidiary, Cal-Central Marketing, with those of the parent
company, resulting in the elimination of several positions and the future
reduction of administrative and operating costs.
RESULTS OF OPERATIONS - SIX MONTHS ENDED JUNE 30, 1995
AS COMPARED TO THE SIX MONTHS ENDED JUNE 30, 1994
-------------------------------------------------
Gross Revenue for the six months ended June 30, 1995 declined 14% from the
same period in 1994, from $7,789,932 to $6,671,742. Coupon and Advertising
Sales, which represent 96% of total revenue for 1995, decreased by 13%, from the
corresponding period in 1994. Coupon Sales from United Coupon Corporation were
$3,541,381 compared to $2,894,133 for the same period in 1994. United Coupon's
coupon sales increase was offset by a decline in revenues at Cal-Central from
$4,300,000 in 1994 to $2,842,973 in 1995. This lower sales level at Cal-Central
was caused by a decline in menu products produced for two national restaurant
chains, along with planned down-sizing through the elimination of marginally
profitable sales offices. The increase in Coupon and Advertising Sales at
United Coupon was caused by increases in both National Account Advertising Sales
and Commercial Printing.
Franchise Fee Income for the 1995 period was $28,150 compared to $56,983
reported for the same period in 1994. Franchise sales efforts are continuing
on an intensified basis.
Other revenue declined by $89,953 during the first six months of 1995
compared to the prior year as a result of $190,000 in non-recurring revenue
recognized during the 1994 period related to the disposition of the Company's
prior publishing assets and investment. Included in 1995 results is
approximately $37,000 in other income related to the exchange of common stock
for payment of liabilities at an exchange price per share that was greater than
the prevailing market price for common stock.
11
--
<PAGE>
Production Expenses, which include art development, printing, bindery,
delivery, product development, distributor support and selling expense,
decreased 9% during the 1995 period in contrast to the same period in 1994.
This $474,377 decrease is caused by the decline in Coupon and Advertising Sales.
General and Administrative Expense decreased 22% over the same period last
year primarily as a result of cost containment and consolidation of
administrative functions at Cal-Central. The decrease is comprised of a
$440,000 expense reduction at Cal-Central and a $9,369 reduction at United
Coupon.
Franchise Development Costs, which include the costs of developing,
advertising, selling, training and supporting United Coupon franchises,
increased approximately 37% during the 1995 period, from $142,492 in 1994 to
$195,277 in 1995. This increase reflects expanded advertising for new franchise
sales as well as addition of franchise sales staff.
Interest Expense - Other increased 9% over the same period last year as a
result of higher prevailing interest rates and slightly higher debt levels
subject to interest.
Net Income for the six month period declined by $267,000 from the prior
year as a result of the non-recurring revenue experienced in 1994, offset by the
net effect of the revenue variations and cost reductions noted above.
12
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<PAGE>
PART II - OTHER INFORMATION
---------------------------
Item 1. Legal Proceedings
-----------------
Omitted from this report as inapplicable.
Item 2. Changes in Securities
---------------------
Omitted from this report as inapplicable.
Item 3. Default Upon Senior Securities
------------------------------
Omitted from this report as inapplicable.
Item 4. Submission of Matters to Vote of Securities Holders
---------------------------------------------------
Omitted from this report as inapplicable.
Item 5. Other Information
-----------------
Omitted from this report as inapplicable.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
A. Exhibits
Omitted from this report as inapplicable.
B. Report on Form 8-K
There were no reports on Form 8-K filed or required to be
filed for the quarter ended June 30, 1995.
13
--
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
Undersigned.
UNICO, INC.
August 11, 1995 By: s/W. Douglas Frans
-------------------------
W. Douglas Frans
Chief Executive Officer
and President
By: s/Rodney L. Kroutil
-------------------------
Rodney L. Kroutil
Chief Financial Officer
14
--
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1994 DEC-31-1994
<PERIOD-START> JAN-01-1995 JAN-01-1995
<PERIOD-END> JUN-30-1995 JUN-30-1995
<CASH> 490,223 708,742
<SECURITIES> 0 0
<RECEIVABLES> 1,940,884 1,789,437
<ALLOWANCES> (379,297) (334,553)
<INVENTORY> 289,182 214,402
<CURRENT-ASSETS> 3,164,138 3,127,612
<PP&E> 2,935,714 2,769,459
<DEPRECIATION> (1,593,462) (1,377,225)
<TOTAL-ASSETS> 8,568,600 8,259,611
<CURRENT-LIABILITIES> 1,752,921 1,761,129
<BONDS> 0 0
<COMMON> 80,541 74,773
3 6
0 10
<OTHER-SE> 3,548,562 3,206,574
<TOTAL-LIABILITY-AND-EQUITY> 8,568,600 8,259,611
<SALES> 6,384,074 13,564,975
<TOTAL-REVENUES> 6,671,742 14,579,163
<CGS> 4,568,344 9,215,427
<TOTAL-COSTS> 6,514,660 14,219,182
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 184,973 324,887
<INCOME-PRETAX> 157,082 359,981
<INCOME-TAX> 9,470 (267,000)
<INCOME-CONTINUING> 147,612 626,981
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 147,612 626,981
<EPS-PRIMARY> .02 .09
<EPS-DILUTED> .02 .09
</TABLE>
