================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED: JUNE 30, 1999
COMMISSION FILE NUMBER 0-15885
NATIONAL DATACOMPUTER, INC.
---------------------------
(Name of Small Business Issuer in its Charter)
DELAWARE 04-2942832
-------- ----------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification #)
900 Middlesex Turnpike, Bldg. 5
Billerica, Ma. 01821
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code (978)663-7677
---------------------------------------------
Check whether the issuer (1) filed all reports required to be filed by section
13 or 15 (d) of the Securities and Exchange Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such
report(s), and (2) has been subject to such filing requirements for the past
ninety (90) days.
Yes X No
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of June 30, 1999.
COMMON STOCK, $0.08 PAR VALUE 2,875,704
- ----------------------------- ------------------
(Title of each class) (number of shares)
<PAGE>
NATIONAL DATACOMPUTER, INC.
INDEX
PART I. FINANCIAL INFORMATION
Page No.
--------
ITEM 1. FINANCIAL STATEMENTS:
Balance Sheet as of June 30, 1999 (unaudited)
and December 31,1998...............................................3
Statement of Operations
Three and six months ended
June 30, 1999 and June 30, 1998 (unaudited)........................4
Statement of Stockholders' Equity for
the six months ended June 30, 1999 (unaudited).....................5
Statement of Cash Flows
for the six months ended
June 30, 1999 and June 30, 1998 (unaudited)........................6
Notes to Financial Statements.......................................7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS
AND RESULTS OF OPERATIONS..........................................9
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings..................................................11
ITEM 2. Changes in Securities..............................................11
ITEM 3. Defaults upon Senior Securities....................................11
ITEM 4. Submissions of Matters to a Vote of Security Holder................11
ITEM 5. Other Information..................................................11
ITEM 6. Exhibits and Reports on Form 8 - K.................................11
SIGNATURES..................................................................12
2
<PAGE>
NATIONAL DATACOMPUTER, INC.
BALANCE SHEET
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
June 30, December 31,
1999 1998
(Unaudited)
<S> <C> <C>
Assets
Current Assets:
Cash and cash equivalents $ 200,495 $ 491,174
Accounts receivable, net of allowance for doubtful accounts 1,162,073 1,048,315
Inventories 1,512,245 1,516,306
Other current assets 40,060 31,493
----------------- ----------------
Total current assets 2,914,873 3,087,288
Fixed assets, net 176,057 205,508
----------------- ----------------
$ 3,090,930 $ 3,292,796
================= ================
Liabilities and stockholders' equity Current Liabilities:
Current obligations under capital lease $ 35,055 $ 44,198
Accounts payable 374,907 356,866
Accrued payroll and related taxes 94,942 78,224
Accrued expenses - other 100,069 218,264
Accrued interest on preferred stock - 6,125
Deferred revenues, current portion 574,819 552,334
----------------- ----------------
Total current liabilities 1,179,792 1,256,011
Obligations under capital lease 11,606 25,754
Deferred revenues 41,307 6,143
----------------- ----------------
1,232,705 1,287,908
----------------- ----------------
Stockholders' equity
Preferred stock, Series A convertible, $0.001 par value; 20 shares
authorized; 0 shares issued and outstanding at June 30, 1999 and December 31, 1998 - -
Preferred stock, Series B convertible $0.001 par value; 4,200 shares
authorized, issued and outstanding (liquidating preference of $4,200,000) 3,685,206 3,685,206
Preferred stock, Series C convertible $0.001 par value; 900 shares
authorized, issued and outstanding (liquidating preference of $900,000) 834,370 834,370
Preferred stock, Series D convertible $0.001 par value; 350 shares
authorized, issued and outstanding (liquidating preference $350,000) 324,639 324,639
Preferred stock, Series E convertible $0.001 par value; 500 shares
authorized, issued and outstanding (liquidating preference $500,000) 273,880 273,880
Preferred stock, Series F convertible $0.001 par value; 175 shares
authorized, issued and outstanding (liquidating preference $175,000) 156,250 118,750
Common stock, $0.08 par value; 5,000,000 shares authorized; 2,875,704 and 2,276,850
shares issued and outstanding at June 30, 1999 and December 31, 1998, respectively 230,056 182,148
Capital in excess of par value 11,118,995 10,998,903
Accumulated deficit (14,368,729) (14,000,566)
Unamortized stock compensation (45,173) (61,173)
Notes receivable - employees (351,269) (351,269)
----------------- ----------------
Total stockholders' equity 1,858,225 2,004,888
----------------- ----------------
$ 3,090,930 $ 3,292,796
================= ================
</TABLE>
The accompanying notes are an integral part
of these financial statements.
3
<PAGE>
NATIONAL DATACOMPUTER, INC.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
Second Fiscal Quarter Six Months
Ended Ended
------------------------------------- -------------------------------------
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Revenues
Net product revenue $ 812,616 $ 915,536 $ 1,474,646 $ 1,386,677
Service and other revenue 425,351 417,966 818,019 848,578
---------------- ---------------- ---------------- ----------------
1,237,967 1,333,502 2,292,665 2,235,255
Cost of sales and services 572,404 682,928 1,173,450 1,257,190
---------------- ---------------- ---------------- ----------------
665,563 650,574 1,119,215 978,065
---------------- ---------------- ---------------- ----------------
Operating expenses:
Research and development 240,386 212,465 483,291 418,486
Selling, general and administrative 381,270 489,716 789,229 967,338
---------------- ---------------- ---------------- ----------------
621,656 702,181 1,272,520 1,385,824
---------------- ---------------- ---------------- ----------------
Income (loss) from operations 43,907 (51,607) (153,305) (407,759)
Other income (expense):
Interest income - 1,056 - 1,056
Interest expense (2,569) (5,979) (4,983) (31,671)
---------------- ---------------- ---------------- ----------------
Net income (loss) $ 41,338 $ (56,530) $ (158,288) $ (438,374)
================ ================ ================ ================
Calculation of net loss per common share and dilutive share equivalents:
Net income (loss) $ 41,338 $ (56,530) $ (158,288) $ (438,374)
Preferred stock preferences (124,125) (102,750) (247,375) (466,102)
---------------- ---------------- ---------------- ----------------
Net loss attributable to common
shareholders $ (82,787) $ (159,280) $ (405,663) $ (904,476)
================ ================ ================ ================
Basic and diluted net loss per share $ (0.03) $ (0.10) $ (0.17) $ (0.51)
================ ================ ================ ================
Weighted average shares 2,534,046 1,666,740 2,404,745 1,771,383
================ ================ ================ ================
</TABLE>
The accompanying notes are an integral part
of these financial statements
4
<PAGE>
NATIONAL DATACOMPUTER, INC.
STATEMENT OF STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
PREFERRED STOCK SERIES B PREFERRED STOCK SERIES C PREFERRED STOCK SERIES D
------------------------ ------------------------ ------------------------
NET ISSUANCE NET ISSUANCE NET ISSUANCE
SHARES PRICE SHARES PRICE SHARES PRICE
<S> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1998 4,200 $3,685,206 900 $834,370 350 $324,639
Net loss
Issuance of preferred stock
Interest on preferred stock (Note 7)
Issuance of common stock
in satisfaction of accrued
interest
Amortization of stock compensation
Discounted conversion rate on
Preferred Stock
Amortization of discounted
conversion rate on Preferred
Stock
------ ----------- ------ ----------- ------ -----------
Balance at March 31, 1999 4,200 $3,685,206 900 $834,370 350 $324,639
====== =========== ====== =========== ====== ===========
Net income
Issuance of preferred stock
Interest on preferred stock (Note 7)
Issuance of common stock
in satisfaction of accrued
interest
Amortization of stock compensation
Discounted conversion rate on
Preferred Stock
Amortization of discounted
conversion rate on Preferred
Stock
------ ----------- ------ ----------- ------ -----------
Balance at June 30, 1999 4,200 $3,685,206 900 $834,370 350 $324,639
====== =========== ====== =========== ====== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PREFERRED STOCK SERIES E PREFERRED STOCK SERIES F COMMON STOCK
------------------------ ------------------------ -------------------------------------
CAPITAL IN
NET ISSUANCE NET ISSUANCE PAR EXCESS
SHARES PRICE SHARES PRICE SHARES VALUE OF PAR VALUE
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1998 500 $273,880 175 $118,750 2,276,850 $182,148 $10,998,903
Net loss
Issuance of preferred stock
Interest on preferred stock (Note 7)
Issuance of common stock
in satisfaction of accrued
interest 320,742 25,659 74,466
Amortization of stock compensation
Discounted conversion rate on
Preferred Stock
Amortization of discounted
conversion rate on Preferred
Stock 18,750 (18,750)
------ ----------- ------ ----------- ---------- ----------- ------------
Balance at March 31, 1999 500 $273,880 175 $137,500 2,597,592 $207,807 $11,054,619
====== =========== ====== =========== ========== =========== ============
Net income
Issuance of preferred stock
Interest on preferred stock (Note 7)
Issuance of common stock
in satisfaction of accrued
interest 278,112 22,249 83,126
Amortization of stock compensation
Discounted conversion rate on
Preferred Stock
Amortization of discounted
conversion rate on Preferred
Stock 18,750 (18,750)
------ ----------- ------ ----------- ---------- ----------- ------------
Balance at June 30, 1999 500 $273,880 175 $156,250 2,875,704 $230,056 $11,118,995
====== =========== ====== =========== ========== =========== ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NOTES UNAMORTIZED TOTAL
RECEIVABLE STOCK ACCUMULATED STOCKHOLDERS'
EMPOLYEES COMPENSATION DEFICIT EQUITY
<S> <C> <C> <C> <C>
Balance at December 31, 1998 ($351,269) ($61,173) ($14,000,566) $2,004,888
Net loss (199,626) ($199,626)
Issuance of preferred stock
Interest on preferred stock (Note 7) (104,500) ($104,500)
Issuance of common stock
in satisfaction of accrued
interest $100,125
Amortization of stock compensation 8,000 $8,000
Discounted conversion rate on
Preferred Stock
Amortization of discounted
conversion rate on Preferred
Stock
---------- --------- ------------- -----------
Balance at March 31, 1999 ($351,269) ($53,173) ($14,304,692) $1,808,887
========== ========= ============= ===========
Net income 41,338 $41,338
Issuance of preferred stock
Interest on preferred stock (Note 7) (105,375) ($105,375)
Issuance of common stock
in satisfaction of accrued
interest $105,375
Amortization of stock compensation 8,000 $8,000
Discounted conversion rate on
Preferred Stock
Amortization of discounted
conversion rate on Preferred
Stock
---------- --------- ------------- -----------
Balance at June 30, 1999 ($351,269) ($45,173) ($14,368,729) $1,858,225
========== ========= ============= ===========
</TABLE>
The accompanying notes are an integral part
of these financial statements
5
<PAGE>
NATIONAL DATACOMPUTER, INC.
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Six Months Ended
June 30, 1999 June 30, 1998
(Unaudited) (Unaudited)
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (158,288) $ (438,374)
Adjustments to reconcile net loss to net
cash used for operating activities:
Depreciation 40,228 57,585
Amortization of stock compensation 16,000 16,000
Amortization of deferred debt issuance costs
and debt discount - 18,789
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (113,758) 774,634
Decrease (increase) in inventories 4,061 (294,783)
Increase in other current assets (8,567) (86,209)
Increase (decrease) in accounts payable 18,041 (159,609)
Decrease in accrued expenses
and deferred compensation (107,602) (11,550)
Increase in deferred revenues 57,649 132,807
---------------- ----------------
Net cash (used for) provided by operating activities (252,236) 9,290
---------------- ----------------
Cash flows from investing activities:
Purchases of fixed assets (10,777) (5,557)
---------------- ----------------
Net cash used for investing activities (10,777) (5,557)
---------------- ----------------
Cash flows from financing activities:
Proceeds from issuance of preferred stock and warrants,
net of issuance costs - 487,880
Principal payment on convertible debt - (75,000)
Payment of interest on preferred stock (4,375) -
Principal payments on obligations under capital lease (23,291) (21,893)
---------------- ----------------
Net cash (used for) provided by financing activities (27,666) 390,987
---------------- ----------------
Net increase (decrease) in cash and cash equivalents (290,679) 394,720
Cash and cash equivalents at beginning of year 491,174 208,731
---------------- ----------------
Cash and cash equivalents at end of period $ 200,495 $ 603,451
================ ================
Supplemental Cash Flow Information:
Cash paid for interest $ 14,867 $ 12,822
Non cash investing and financing activities:
Accrued interest on preferred stock charged to
accumulated deficit 209,875 205,500
Common stock issued in satisfaction of interest on
preferred stock 205,500 308,250
</TABLE>
The accompanying notes are an integral part
of these financial statements
6
<PAGE>
NATIONAL DATACOMPUTER, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. ORGANIZATION
National Datacomputer, Inc. (the "Company") designs, develops,
manufactures, markets and services a line of hand-held battery powered
microprocessor-based data collection products and computers and associated
peripherals for use in mobile operations.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying unaudited financial statements, which are for interim
periods, do not include all disclosures provided in the annual financial
statements. These unaudited financial statements should be read in
conjunction with the financial statements and the footnotes thereto
contained in the Annual Report on Form 10-KSB for the year ended December
31, 1998 of National Datacomputer, Inc., as filed with the Securities and
Exchange Commission.
INTERIM PERIODS
In the opinion of the Company, the accompanying unaudited financial
statements contain all adjustments (which are of a normal and recurring
nature) necessary for a fair presentation of the financial statements. The
results of operations for the six months ended June 30, 1999 are not
necessarily indicative of the results to be expected for the full year.
REVENUE RECOGNITION
The Company recognizes revenues for products upon shipment at the time
of delivery to the customer, provided that the Company has no remaining
significant service obligations that are essential to the functionality of
the product delivered, collectibility is considered probable, and the fees
are fixed and determinable.
Revenue from installation and training is recognized upon completion of
the project. Service revenue is recognized ratably over the contractual
periods.
7
<PAGE>
LOSS PER SHARE
Net loss per share is computed under SFAS No. 128, "Earnings Per
Share." Basic loss per share is computed by dividing net loss, after
deducting certain amounts associated with the Company's preferred stock,
by the weighted average number of common shares outstanding for the
period. Diluted earnings per share is computed using the weighted average
number of common shares outstanding and gives effect to all dilutive
common share equivalents outstanding during the period.
Interest payable to preferred stockholders, the fair value of
inducements to convert preferred stock into common stock, and any
discounts implicit in the conversion terms upon issuance of preferred
stock are added to the net loss to determine the amount of net loss
attributable to common stockholders
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amount of assets and liabilities and
disclosure of contingencies at the date of the financial statements, and
the reported results of operations during the reporting period. Actual
results could differ from these estimates.
3. INVENTORIES
Inventories consist
of the following: JUNE 30, DECEMBER 31,
1999 1998
----------------- -----------------
Raw material $ 423,037 $ 424,173
Work-in-process 729,770 731,730
Finished goods 359,438 360,403
----------------- -----------------
Total $1,512,245 $1,516,306
================= =================
Inventories are stated at the lower of cost (first-in, first-out) or
market.
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.
The following discussion and analysis should be read in conjunction with
the financial statements and notes thereto appearing elsewhere herein.
8
<PAGE>
RESULTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 1999 COMPARED TO THREE MONTHS ENDED JUNE 30,
1998.
Total revenues in the second quarter of fiscal year 1999 were $1,237,967
compared to $1,333,502 in the prior comparable quarter, a decrease of 7%. The
decrease in revenue was attributable to a decrease in sales of units of the
Company's Datacomputers.
Cost of sales and services, as a percentage of net revenues decreased in
the second quarter of fiscal 1999 to 46% from 51% in the second quarter of the
prior fiscal year. The decrease is primarily attributable to the sales of a
different mix of products in the second quarter of 1999 which carry a higher
margin. The higher margins which resulted from the product mix in the second
quarter of 1999 are not indicative of the margins to be expected in future
quarters.
Research and development expenses as a percentage of net revenue for the
second quarter of fiscal 1999 increased to 19% from 16% in the second quarter of
the prior fiscal year. Actual research and development spending increased by 13%
in absolute dollars to $240,386 in the second quarter of fiscal 1999, from
$212,465 for the same period in 1998. The increased spending was due to the
addition of development personnel associated with the development of new and
enhanced products.
Selling, general and administrative expenses as a percentage of net
revenues for the second quarter of fiscal 1999 decreased to 31% from 37% in the
second quarter of the prior fiscal year. Actual selling, general and
administrative spending decreased by 22% in absolute dollars to $381,270 in the
second quarter of fiscal 1999, from $489,716 for the same period in 1998. The
lower level of costs resulted primarily from a decrease in sales personnel costs
and professional fees.
The Company's operating income was $43,907 for the second quarter of
fiscal 1999, compared to an operating loss of $51,607 in the second quarter of
the prior fiscal year. The decreased loss was primarily attributable to the
improved margin combined with the decrease in the expenses as discussed above.
SIX MONTHS ENDED JUNE 30, 1999 COMPARED TO SIX MONTHS ENDED JUNE 30, 1998.
The Company's total revenues for the six months ended June 30, 1999 were
$2,292,665 which represents a 3% increase from total revenue of $2,235,255 for
the same period of the prior fiscal year. The increase in revenue was
attributable to an increase in sales of units of the Company's Datacomputers
9
<PAGE>
Cost of sales and services, as a percentage of net revenues for the six
months ended June 30, 1999 was 51% as compared to 56% for the same period of the
prior fiscal year. The improved gross margin is primarily attributable to the
sales of a different mix of products in the second quarter of 1999 which carry a
higher margin. The higher margins which resulted from the product mix in the
second quarter of 1999 are not indicative of the margins to be expected in
future quarters.
Research and development expenses as a percentage of net revenues for the
six months ended June 30, 1999 increased to 21% from 19% for the same period in
the prior fiscal year. Actual research and development spending increased by 15%
in absolute dollars to $483,291 in the six months ended June 30, 1999 from
$418,486 for the same period in the prior fiscal year. The increased spending
was due to the addition of development personnel associated with the development
of new and enhanced products.
Selling, general and administrative expenses as a percentage of net
revenues for the six months ended June 30, 1999 decreased to 34% from 43% for
the same period in the prior fiscal year. Actual selling, general and
administrative spending decreased by 18% in absolute dollars to $789,229 in the
six months ended June 30, 1999 from $967,338 for the same period in the prior
fiscal year. The lower level of costs resulted primarily from a decrease in
sales personnel costs and professional fees.
The Company's operating loss was $153,305 for the six months ended June
30, 1999, compared to an operating loss of $407,759 for the same period in the
prior fiscal year. The decreased loss was primarily attributable to the decrease
in the expenses as discussed above.
Interest expense was $4,983 in the first six months of fiscal 1999,
compared to $31,671 in the same period of the prior fiscal year. This decrease
resulted primarily from the amortization in the first quarter of 1998 of
approximately $23,000 to interest expense related to the discount on the
convertible debt recorded in 1997.
LIQUIDITY AND CAPITAL RESOURCES
At June 30, 1999, the Company had cash of $200,495 and a current ratio of
2.5:1. The cash balance at March 31, 1999 was $129,611. The Company anticipates
that available cash, together with cash flow from anticipated operations, will
be sufficient to meet its working capital needs for the remainder of fiscal
1999. However, unanticipated adverse results of operations could impact
anticipated cash flows and, as a result, there can be no assurance that the
Company will not be required to raise additional capital or that the Company
will be able to raise additional capital on favorable terms, if at all.
10
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is not presently involved in any material pending
litigation.
ITEM 2. CHANGES IN SECURITIES
Not Applicable
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not Applicable
ITEM 4. SUBMISSIONS 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
(11) Statement Re: Computation of Per Share Earnings (Loss).
(27) Financial Data Schedule.
11
<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 thereunto duly authorized.
NATIONAL DATACOMPUTER, INC.
July 23, 1999 /s/ Malcolm M. Bibby
-----------------------------
Malcolm M. Bibby
President
July 23, 1999 /s/ Gerald S. Eilberg
-----------------------------
Gerald S. Eilberg
Vice President, Finance and Administration
Chief Financial Officer
12
EXHIBIT 11
COMPUTATION OF PER SHARE EARNINGS (LOSS) ----------
National Datacomputer, Inc.
Statement recomputation of net income (loss) per common share
<TABLE>
<CAPTION>
June 30, June 30,
1999 1998
--------------- ---------------
<S> <C> <C>
Net loss, as reported $ (158,288) $ (438,374)
Preferred stock preference items:
Warrant $ (214,000)
Discount inherent in conversion terms of Series C
convertible preferred stock upon issuance $ (25,958)
Discount inherent in conversion terms of Series D
convertible preferred stock upon issuance $ (20,644)
Discount inherent in conversion terms of Series F
convertible preferred stock upon issuance $ (37,500) -
Interest on Series B, C, D and F convertible preferred stock $ (209,875) $ (205,500)
--------------- ---------------
Total preferred stock preference item $ (247,375) $ (466,102)
Net loss attributable to common stockholders $ (405,663) $ (904,476)
Weighted average shares outstanding:
A. Shares attributable to common stock outstanding 2,404,745 1,771,383
B. Shares attributable to convertible preferred stock outstanding - -
C. Shares attributable to common stock options and warrants
pursuant to APB 15, paragraph 38 (a) - -
--------------- ---------------
Weighted average shares outstanding 2,404,745 1,771,383
=============== ===============
Net loss per share $ (0.17) $ (0.51)
=============== ===============
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> APR-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 200,495
<SECURITIES> 0
<RECEIVABLES> 1,308,884
<ALLOWANCES> (146,811)
<INVENTORY> 1,512,245
<CURRENT-ASSETS> 40,060
<PP&E> 1,636,898
<DEPRECIATION> (1,460,841)
<TOTAL-ASSETS> 3,090,930
<CURRENT-LIABILITIES> 1,179,792
<BONDS> 52,913
0
5,274,345
<COMMON> 230,056
<OTHER-SE> (3,646,176)
<TOTAL-LIABILITY-AND-EQUITY> 3,090,930
<SALES> 1,237,967
<TOTAL-REVENUES> 1,237,967
<CGS> 572,404
<TOTAL-COSTS> 572,404
<OTHER-EXPENSES> 621,656
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,569
<INCOME-PRETAX> 41,338
<INCOME-TAX> 0
<INCOME-CONTINUING> 41,338
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 41,338
<EPS-BASIC> (0.03)
<EPS-DILUTED> (0.03)
</TABLE>
