UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
(Mark One)
(X) Quarterly report pursuant to section 13 or 15 (d) of the Securities
Exchange Act of 1934, for the quarterly period ended April 30, 1997.
( ) 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 0-17872
ECHO SPRINGS WATER CO., INC.
(Exact name of small business issuer as specified in its charter)
New York #16-1433379
(State of Incorporation) (I.R.S. Employer ID No.)
Building 100A, Hackensack Avenue, Kearny, New Jersey 07032
(Address of Principal Executive Offices)
(201) 465-5151
(Issuer's Telephone Number)
N/A
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (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 issuer 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.
Class Outstanding at April 30, 1997
Common stock, $.0001 par value 3,557,149 shares
Transitional Small Business Disclosure Format Yes No X
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ECHO SPRINGS WATER CO., INC.
Index to Form 10-QSB
Page
Item Number
PART I. FINANCIAL INFORMATION 3
Item 1. Financial Statements:
Consolidated balance sheets -
April 30, 1997 and October 31, 1996 3
Consolidated statements of operations -
Three months ended April 30, 1997 and 1996 4
Six months ended April 30, 1997 and 1996 5
Consolidated statements of cash flows -
Six months ended April 30, 1997 and 1996 6
Notes to Consolidated Financial Statements 7-9
Management's Discussion and Analysis of Financial
Condition and Results of Operations 10-12
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 13
Item 5. Other Events 13
Item 6. Exhibits and Reports on Form 8-K 13
Signatures 14
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ECHO SPRINGS WATER CO., INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
ASSETS
April 30, October 31,
1997 1996
Current Assets:
Cash $ 51,543 $ 44,631
Accounts receivable - net of allowance
for doubtful accounts of $15,000 in
1997 and $14,000 in 1996 250,505 257,212
Notes receivable, current portion 26,800 26,010
Inventories 31,424 34,221
Prepaid expenses 58,774 30,178
--------- ---------
Total Current Assets 419,046 392,252
Notes receivable, net of current portion 146,268 159,868
Property, plant and equipment - net 1,314,177 1,278,230
Other assets 257,584 220,026
--------- ---------
TOTAL ASSETS $2,137,075 $2,050,376
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY)
Current Liabilities:
Current portion of debt $ 280,000 $ 552,153
Debentures 50,000 50,000
Accounts payable and accrued expenses 1,523,601 1,513,582
Customer deposits 281,200 213,000
Unearned revenues 16,297 17,677
--------- ---------
Total Current Liabilities 2,151,098 2,346,412
--------- ---------
Shareholders' Equity (Deficiency):
Common stock, $.0001 par, 75,000,000
shares authorized; issued and
outstanding 3,557,149 shares
in 1997 and 2,907,149 shares in 1996 356 291
Additional paid-in capital 8,551,660 7,967,725
Accumulated deficit (8,566,039) (8,264,052)
--------- ---------
Total Shareholders'
Equity (Deficiency) (14,023) (296,036)
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIENCY) $2,137,075 $2,050,376
========= =========
The accompanying notes are an integral part of these consolidated financial
statements.
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ECHO SPRINGS WATER CO., INC.
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED APRIL 30,
(UNAUDITED)
1997 1996
---- ----
Revenues:
Gross sales $ 507,755 $ 568,696
Credits and allowances (63,525) (2,356)
Freight out (10,839) (10,014)
Other income 3,831 10,272
---------- ----------
437,222 566,598
---------- ----------
Costs and Expenses:
Cost of sales 180,568 219,273
Selling, general and
administrative 402,453 372,133
Interest 8,901 58,223
Amortization of other assets 1,219 1,219
Loss (gain) on sale of assets (1,653) (2,160)
---------- ----------
Total Costs and Expenses 591,488 648,688
---------- ----------
Net loss $ (154,266) $ (82,090)
========== ==========
Net loss per share $ (.04) $ (.05)
========== ==========
Weighted average shares outstanding 3,540,482 1,699,996
========== ==========
The accompanying notes are an integral part of these consolidated financial
statements.
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ECHO SPRINGS WATER CO., INC.
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30,
(UNAUDITED)
1997 1996
---- ----
Revenues:
Gross sales $ 952,231 $ 1,094,308
Credits and allowances (66,177) (6,675)
Freight out (19,788) (22,065)
Other income 3,696 14,417
---------- ----------
869,962 1,079,985
---------- ----------
Costs and Expenses:
Cost of sales 369,362 438,933
Selling, general and
administrative 776,287 733,503
Interest 26,375 115,581
Amortization of other assets 2,438 2,438
Loss (gain) on sale of assets (2,513) (3,360)
---------- ----------
Total Costs and Expenses 1,171,949 1,287,095
---------- ----------
Net loss $ (301,987) $ (207,110)
========== ==========
Net loss per share $ (.09) $ (.12)
========== ==========
Weighted average shares outstanding 3,223,816 1,679,996
========== ==========
The accompanying notes are an integral part of these consolidated financial
statements.
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ECHO SPRINGS WATER CO., INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED APRIL 30,
(UNAUDITED)
1997 1996
---- ----
Operating Activities:
Net loss $(301,987) $(207,110)
Adjustments to reconcile net loss to
net cash used by
operating activities:
Depreciation and amortization 82,588 76,243
Loss (gain) on sale of assets (2,513) (3,360)
Provision for doubtful accounts 1,000 3,000
Changes in assets and liabilities -
Accounts receivable 5,707 (37,368)
Inventories 2,797 8,603
Prepaid expenses (28,596) (50,762)
Other assets (28,752) (693)
Accounts payable and accrued
expenses 10,019 21,934
Customer deposits 68,200 13,600
Unearned revenues (1,380) (29,884)
-------- --------
Net Cash Used by
Operating Activities (192,917) (205,797)
-------- --------
Investing Activities:
Capital expenditures (125,559) (18,595)
Collections on notes receivable 12,810 8,437
Proceeds from sale of assets 11,975 3,360
-------- --------
Net Cash Used by
Investing Activities (100,774) (6,798)
-------- --------
Financing Activities:
Proceeds from issuance of
common stock 584,000 60,000
Increase in installment debt 110,000 135,000
Repayment of installment debt (382,153) (29,011)
Deferred public offering costs (11,244)
--------
Net Cash Provided
by Financing Activities 300,603 165,989
-------- --------
Net increase (decrease) in cash 6,912 (46,606)
Cash - beginning 44,631 57,224
-------- --------
CASH - ENDING $ 51,543 $ 10,618
======== ========
SUPPLEMENTAL INFORMATION:
Cash paid for interest $ 33,269 $ 9,765
The accompanying notes are an integral part of these consolidated financial
statements.
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ECHO SPRINGS WATER CO., INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
-------------------------------
BASIS OF PRESENTATION
The interim consolidated financial statements are prepared
pursuant to the requirements for reporting on Form 10-QSB. The
October 31, 1996 balance sheet data was derived from audited
consolidated financial statements and together with the
interim consolidated financial statements and notes thereto
should be read in conjunction with the consolidated financial
statements and notes included in the Company's latest annual
report on Form 10-KSB/A. In the opinion of management, the
interim consolidated financial statements reflect all
adjustments of a normal recurring nature neces sary for a fair
statement of the results for interim peri ods. The current
period results of operations are not necessarily indicative of
results which ultimately will be reported for the full fiscal
year.
BUSINESS
Echo Springs Water Co., Inc. ("the Company"), through its
subsidiaries, is engaged principally in the distribution of
bottled water and allied products. The Company bottles water
from its own natural springs in Burlington, NY for direct
distribution and sale to business and residential customers as
well as for wholesale to supermarkets and other bottled water
distributors.
REVENUE RECOGNITION
Revenue from equipment rental is recognized based on the
period in which it is earned and unearned revenue is recorded
for the portion billed in advance. Revenues from product sales
are recognized upon shipment to the wholesal er or delivery to
the customer, as applicable.
LOSS PER SHARE
Net loss per share is based upon the weighted average number
of shares outstanding during each period. All share and per
share amounts give effect to a 1-for-25 reverse stock split in
October, 1996.
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ECHO SPRINGS WATER CO., INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
NOTE 2 - INVENTORIES
-----------
Inventories are valued at the lower of cost or market on the
first-in, first-out basis and at October 31, 1996 and April
30, 1997 consist of the following:
April October
30, 1997 31, 1996
Bottles $ 2,085 $ 1,722
Product held for sale 13,080 16,415
Supplies 16,259 16,084
------ ------
$31,424 $34,221
====== ======
NOTE 3 - PROPERTY, PLANT AND EQUIPMENT
-----------------------------
Property, plant and equipment are recorded at cost and
depreciated by the straight-line method over the estimated
economic useful lives of the various asset groups of 5 - 40
years and consist of the following:
April October
30, 1997 31, 1996
Land 150,000 $ 150,000
Buildings and improvements 362,298 362,298
Water coolers, bottles and
brewers 976,517 918,730
Machinery and equipment 390,821 335,069
Vehicles 60,500 60,850
Furniture and fixtures 126,393 127,128
--------- ---------
2,066,529 1,954,075
Less: accumulated depreciation
and amortization 752,352 675,845
--------- ---------
$1,314,177 $1,278,230
========= =========
NOTE 4 - OTHER ASSETS
------------
Other assets at October 31, 1996 and April 30, 1997 are
comprised of the following:
April October
30, 1997 31, 1996
Water rights 205,000 $205,000
Accumulated amortization 35,967 33,529
------- -------
Net deferred charges 169,033 171,471
Security deposits 59,289 30,537
Deferred public offering costs 29,262 18,018
------- -------
$257,584 $220,026
======= =======
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ECHO SPRINGS WATER CO., INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
NOTE 5 - INDEBTEDNESS
------------
The Company is currently in default as to principal and
interest on its debt and debentures except for advances
payable to stockholder of $282,153 at October 31, 1996 and
$60,000 at April 30, 1997. Although the debt is in default and
therefore currently due, the debtholders have informally
agreed to wait for payment until completion of the proposed
public offering. (See Note 7).
NOTE 6 - INCOME TAXES
------------
The Company files a consolidated federal income tax return
with its subsidiaries. At October 31, 1996, the estimated
maximum amount of net operating loss carryforward available to
reduce future taxable income is approximately $8,200,000,
expiring from 2004 through 2010. Deferred tax benefits from
the use of net operating loss carryforwards of approximately
$2,780,000 are offset by a corresponding amount of valuation
allowance since it is more likely than not that all or some
portion of the defered tax asset will not be realized.
NOTE 7 - GOING CONCERN
-------------
The Company sustained losses of $228,571 (before extraordi
nary gain) for the fiscal year ended October 31, 1996 and
$301,987 for the six months ended April 30, 1997. The Company
had deficit net worths of $296,036 at October 31, 1996 and
$14,023 at April 30, 1997. In addition, the Compa ny was in
default on principal and interest payments on a substantial
portion of its debt. These facts raise sub stantial doubt
about the Company's ability to continue as a going concern.
Considerations which tend to mitigate the question of going
concern include management's successful efforts in raising
funds through private placements, the ability to renegotiate
and restructure long-term financing with major creditors, past
and present efforts to convert debt to equity and the ability
to acquire, restructure and develop the bottled water business
which it believes will be able to achieve profitable
operations. In June, 1996, the Company entered into
negotiations to consummate a public offering with minimum
gross proceeds of approximately $4,000,000. The Company
intends to use a protion of the proceeds of the proposed
public offering to seek and consum mate acquisitions of
companies in the bottled water and allied products business.
No assurance can be given that the Company will be successful
in identifying potential acquisitions or, if made, that such
acquisitions will have a beneficial effect on the Company. The
Company has no cur rent agreement to acquire any business or
property, or intent to acquire any specific business or
property. The Company believes that these factors provide
meaningful evidence as to the Company's ability to continue in
operat ion for the next fiscal year and support the going
concern presentation in the accompanying consolidated
financial statements in favor of the liquidation basis. There
can be no assurance, however, that management will continue to
be able to raise sufficient capital or convert existing debt
to equity or to achieve profitable operations going forward.
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ECHO SPRINGS WATER CO., INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1997 COMPARED WITH THE
SIX MONTHS ENDED APRIL 30, 1996
Gross sales decreased $142,077 (13.0%) to $952,231 for the six months ended
April 30, 1997 ("1997") from $1,094,308 for the six months ended April 30, 1996
("1996"). Five-gallon sales to Aramark Corporation increased by approximately
$73,000, primarily due to the Company's expansion into this customer's
Pennsylvania locations. However, five-gallon and allied product sales to and
rental income from the Company's regular customer base fell by approximately
$57,000, $37,000 and $47,000, respectively, largely due to a deliberate
discontinuance of service to marginal customers and a lack of sales and
marketing staff as the Company concentrated its efforts toward the Aramark
business as this business requires no capital investment outlay for cooler
equipment and provides its own sales and marketing at no additional cost to the
Company. The 2.5-gallon sales fell by approximately $12,000 as this low-margin,
low-volume product line was discontinued in July, 1996. Sales of one gallons,
another low-margin product, decreased by approxi mately $62,000, largely due to
a discontinuance of service to one supermarket customer and the loss of one
private label brand of one of the Company's distributors to supply competition.
Credits and allowanc es increased by approximately $60,000 as a result of a
half-price discount offered to Aramark for three months (March 10 through June
8, 1997) as an incentive to obtain their Pennsylvania business. Other income in
1996 included approximately $8,000 of discounts earned upon the renegotiation
and settlement of two older payables, which event did not recur in 1997.
Cost of sales for 1997 was $369,362 (38.8% of gross sales) as compared to
$438,933 (40.1% of gross sales) for 1996. This 1.3 percentage point improvement
is comprised of a 3.0 percentage point gain due to the above-noted reductions in
the sales of low-margin product lines, offset by a 1.7 percentage point increase
caused by the above-noted decrease in the equipment rental portion of gross
sales.
Selling, general and administrative expenses were $776,287 in 1997 as compared
to $733,503 in 1996. Delivery and warehouse costs increased approximately
$35,000, primarily due to start-up of the Pennsylvania operations plus a 50%
truck rental price increase in May, 1996. Further, general and administrative
expenses rose by approximately $32,000. Increased clerical costs accounted for
approximately $14,000. The investor relation costs of the debt-to-equity
conversion and the reverse stock split accounted for another approximately
$9,000 and the final factor was increased business development costs of
approximately $9,000 to investigate new potential business investments. These
increases were offset by reduced selling costs of approximately $24,000. Bad
debt expense decreased approximately $13,000, primarily as a result of the
above-noted discontinuance of service to marginal customers. Reduced yellow page
advertising accounted for another approximately $7,000. Third party commissions
fell approximately $4,000 as a result of the above-noted reductions in sales of
low-margin product lines.
Interest expense decreased from $115,581 in 1997 to $26,376 in 1996, primarily
as a result of the October, 1996 debt-to-equity conversion. Amortization of
other assets of $2,438 in 1997 and 1996 related to the amortization of water
rights.
The net loss for 1997 increased by $94,877 from $207,110 in 1996 to $301,987 in
1997.
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ECHO SPRINGS WATER CO., INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FOR THE THREE MONTHS ENDED APRIL 30, 1997 COMPARED WITH THE
THREE MONTHS ENDED APRIL 30, 1996
Gross sales decreased $60,941 (10.7%) to $507,755 for the three months ended
April 30, 1997 ("1997") from $568,696 for the three months ended April 30, 1996
("1996"). Five-gallon sales to Aramark Corporation increased by approximately
$58,000, primarily due to the Company's expansion into this customer's
Pennsylvania locations. However, five-gallon and allied product sales to and
rental income from the Company's regular customer base fell by approximately
$31,000, $16,000 and $18,000, respectively, largely due to a deliberate
discontinuance of service to marginal customers and a lack of sales and
marketing staff as the Company concentrated its efforts toward the Aramark
business as this business requires no capital investment outlay for cooler
equipment and provides its own sales and marketing at no additional cost to the
Company. The 2.5-gallon sales fell by approximately $7,000 as this low-margin,
low-volume product line was discontinued in July, 1996. Sales of one gallons,
another low-margin product, decreased by approximately $46,000, largely due to a
discontinuance of service to one supermarket customer and the loss of one
private label brand of one of the Company's distributors to supply competition.
Credits and allowances increased by approximately $61,000 as a result of a
half-price discount offered to Aramark for three months (March 10 through June
8, 1997) as an incentive to obtain their Pennsylvania business. Other income in
1996 included approximately $8,000 of discounts earned upon the renegotiation
and settlement of two older payables, which event did not recur in 1997.
Cost of sales for 1997 was $180,568 (35.6% of gross sales) as compared to
$219,273 (38.6% of gross sales) for 1996. This 3.0 percentage point improvement
is comprised of a 4.4 percentage point gain due to the above-noted reductions in
the sales of low-margin product lines, offset by a 1.4 percentage point increase
caused by the above-noted decrease in the equipment rental portion of gross
sales.
Selling, general and administration expenses were $402,453 in 1997 as compared
to $372,133 in 1996. Delivery and warehouse costs increased approximately
$28,000, primarily due to start-up of the Pennsylvania operations. Further,
general and administrative expenses rose by approximately $14,000, largely due
to increased clerical costs. These increases were offset by an approximate
$12,000 decrease in bad debt expense, primarily as a result of the above-noted
discontinuance of service to marginal customers.
Interest expense decreased from $58,223 in 1997 to $8,901 in 1996, primarily as
a result of the October, 1996 debt-to-equity conversion. Amortization of other
assets of $1,219 in 1997 and 1996 related to the amortization of water rights.
The net loss for 1997 increased by $72,176 from $82,090 in 1996 to $154,266 in
1997.
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ECHO SPRINGS WATER CO., INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary sources of liquidity have been cash generated from sales,
issuance of common stock, debentures and installment debt, and borrowings from
its officers.
During the six months ended April 30, 1997 and 1996, the Company had negative
cash flows from operating activities of $192,917 and $205,797, respectively.
Investing activities used cash of $100,774 in 1997 and $6,798 in 1996, primarily
for the acquisition of property and equipment. The Company has financed its
operating and investing activities during these periods primarily through the
issuance of common stock and installment debt.
At April 30, 1997, the Company had a working capital deficiency of $1,732,052.
Short-term credit sources are limited to trade credit on purchases and services.
The report issued by the Company's accountants that accompanies the Company's
Consolidated Financial Statements for the year ended October 31, 1996 states
that there is a substantial doubt about the Company's ability to continue as a
going concern.
As indicated in Note 5 to the accompanying Consolidated Financial Statements,
certain of the Company's indebtedness is in default. Although the debt is in
default and therefore currently due, the debtholders have informally agreed to
wait for payment until completion of the proposed public offering noted below.
Considerations which tend to mitigate the question of going concern include
management's successful efforts in raising funds through private placements, the
ability to renegotiate and restructure long-term financing with major creditors,
past and present efforts to convert debt to equity and the ability to acquire,
restructure and develop the bottled water business which it believes will be
able to achieve profitable operations.
In June, 1996, the Company entered into negotiations to consummate a public
offering with minimum gross proceeds of approximately $4,000,000. Such offering
is expected to take place during Fiscal 1997. The Company intends to use a
portion of the proceeds of the proposed public offering to seek and consummate
acquisitions of companies in the bottled water and allied products business. No
assurance can be given that the company will be successful in identifying
potential acquisitions or, if made, that such acquisitions will have a
beneficial effect on the Company. The Company has no current agreement to
acquire any business or property, or intent to acquire any specific business or
property.
The Company believes that these factors provide meaningful evidence as to the
Company's ability to continue in operation for the next fiscal year and support
the going concern presentation in the accompanying Consolidated Financial
Statements in favor of the liquidation basis. There can be no assurance,
however, that management will continue to be able to raise sufficient capital or
convert existing debt to equity or to achieve profitable operations going
forward.
The Company has no plans or commitments for capital expenditures during the next
twelve months other than the ordinary equipment purchases which are expected to
be funded with additional installment debt. The Company is close to settling its
prior years' unpaid payroll taxes and, upon agreement, intends to pay such
amounts from additional borrowings.
The Company's business is subject to seasonal fluctuation, with summer being the
busiest season and winter the slowest. To date, seasonality has not had any
material effect on the Company's financial condition or results of operations.
- 12 -
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ECHO SPRINGS WATER CO., INC.
PART II OTHER INFORMATION
ITEM 1. Legal Proceedings
There have been no new legal proceedings or material changes
to legal proceedings during the period from those reported in
the Company's Form 10-KSB/A for the year ended October 31,
1996.
ITEM 5. Other Events
In March, 1997, Echo Springs Water Co., Inc. (the "Company")
concluded a private placement of 50,000 shares of its common
stock, par value $.0001 ("Common Stock") at $1.00 per share,
for gross proceeds of 50,000.00 to one investor, an "ac
credited investor" within the meaning of Regulation D of the
Securities Act of 1933, as amended (the "Act"). The issu ance
of the shares of Common Stock was exempt from the registration
provision of the Act by reason of Section 4(2) thereof.
ITEM 6. Exhibits and Reports on Form 8-K
a. Exhibits - None
b. Reports on Form 8-K
Report dated February 11, 1997 noted sale of 400,000 shares of
common stock to private investors for $400,000 and sale of
200,000 shares of common stock pursuant to Regulation S for
$200,000.
- 13 -
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the issuer has duly caused this report to be signed on its behalf by
the undersigned, hereunto duly authorized.
ECHO SPRINGS WATER CO., INC.
(Issuer)
By /s/ Michael S. Rakusin
Michael S. Rakusin
President
Dated: June 23, 1997
- 14 -
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ECHO SPRINGS WATER CO., INC.
FINANCIAL DATA SCHEDULE
FOR THE SIX MONTHS ENDED APRIL 30, 1997
This schedule contains summary financial information extracted from the
financial statements for the six months ended April 30, 1997 and is qualified in
its entirety by reference to such financial state ments.
Item # Item Description Amount
5-02(1) Cash and cash items $ 51,543
5-02(2) Marketable securities 0
5-02(3)(a)(1) Notes and accounts receivable-trade 265,505
5-02(4) Allowances for doubtful accounts 15,000
5-02(6) Inventory 31,424
5-02(9) Total current assets 419,046
5-02(13) Property, plant and equipment 2,066,529
5-02(14) Accumulated depreciation 752,352
5-02(18) Total assets 2,137,075
5-02(21) Total current liabilities 2,151,098
5-02(22) Bonds, mortgages and similar debt 0
5-02(28) Preferred stock-mandatory redemption 0
5-02(29) Preferred stock-no
mandatory redemption 0
5-02(30) Common stock 356
5-02(31) Other stockholders' equity (14,379)
5-02(32) Total liabilities and
stockholders' equity 2,137,075
5-03(b)(1)(a) Net sales of tangible products 866,266
5-03(b)(1) Total revenues 869,962
5-03(b)(2)(a) Cost of tangible goods sold 369,362
5-03(b)(2) Total costs and expenses applicable
to sales and revenues 369,362
5-03(b)(3) Other costs and expenses 0
5-03(b)(5) Provision for doubtful
accounts and notes 0
5-03(b)(8) Interest and amortization
of debt discount 26,375
5-03(b)(10) Income before taxes and
other items (301,987)
5-03(b)(11) Income tax expense 0
5-03(b)(14) Income/loss continuing operations 0
5-03(b)(15) Discontinued operations 0
5-03(b)(17) Extraordinary items 0
5-03(b)(18) Cumulative effect-changes
in accounting principles 0
5-03(b)(19) Net income or loss (301,987)
5-03(b)(20) Earnings per share-primary (.09)
5-03(b)(20) Earnings per share-fully diluted 0
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