<PAGE>
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
For the quarterly period ended December 31, 1999
Commission File Number: 0-17493
OMNI U.S.A., INC.
(Exact name of registrant as specified in its charter)
NEVADA 88-0237223
(State of Incorporation) (IRS Employer Identification No.)
7502 MESA ROAD, HOUSTON, TEXAS 77028
(Address of principal executive offices)
(713) 635-6331
(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 ____
At February 11, 2000 there were 3,623,092 shares of common stock $.004995 par
value outstanding.
1
<PAGE>
OMNI U.S.A., INC. AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheets
December 31, 1999 and June 30, 1999
Condensed Consolidated Statements of Operations
Three Months and Six Months Ended December 31, 1999 and
December 31, 1998
Condensed Consolidated Statements of Cash Flows
Three Months and Six Months Ended December 31, 1999 and
December 31, 1998
Notes to Condensed Consolidated Financial Statements
Management's Discussion and Analysis of Financial Condition and Results of
Operations
2
<PAGE>
OMNI U.S.A., INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1999 AND JUNE 30, 1999
<TABLE>
<CAPTION>
ASSETS
December 31, 1999 June 30, 1999
------------------- ---------------
<S> <C> <C>
CURRENT ASSETS
Cash $ 359,678 $ 292,903
Accounts receivable, trade, net 2,996,614 2,920,896
Accounts receivable, related parties 15,720 12,069
Inventories 4,126,099 3,207,542
Prepaid expenses 72,746 69,693
------------------- ---------------
TOTAL CURRENT ASSETS 7,570,857 6,503,103
------------------- ---------------
PROPERTY AND EQUIPMENT, net of
Accumulated depreciation and amortization 2,235,276 2,158,715
------------------- ---------------
OTHER ASSETS
Primarily intangible assets, net 216,993 265,103
------------------- ---------------
TOTAL ASSETS $ 10,023,126 $ 8,926,921
=================== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 2,763,801 $ 2,672,455
Line of credit 2,271,301 2,088,917
Accrued expenses 429,469 486,205
Current portion of long-term debt 245,818 230,502
------------------- ---------------
TOTAL CURRENT LIABILITIES 5,710,389 5,478,079
------------------- ---------------
LONG-TERM DEBT 1,722,858 646,776
------------------- ---------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock 22,880 17,885
Additional paid-in capital 5,356,065 5,248,560
Treasury Stock (57,141) (57,141)
Retained earnings (deficit) (2,829,956) (2,505,269)
Foreign currency translation adjustment 98,031 98,031
------------------- ---------------
TOTAL STOCKHOLDERS' EQUITY 2,589,879 2,802,066
------------------- ---------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $10,023,126 $ 8,926,921
=================== ===============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
3
<PAGE>
OMNI U.S.A., INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Three Months and the Six Months Ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
--------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
NET SALES $5,053,520 $3,409,658 $8,893,968 $7,215,648
COST OF SALES 3,719,782 2,504,551 6,708,494 5,295,826
--------------- -------------- -------------- --------------
GROSS PROFIT 1,333,738 905,107 2,185,474 1,919,822
OPERATING EXPENSES
Selling, general and administrative 1,178,072 1,084,609 2,283,213 2,048,857
--------------- -------------- -------------- --------------
OPERATING INCOME (LOSS) 155,666 (179,502) (97,739) (129,035)
OTHER INCOME (EXPENSE)
Interest expense (87,966) (91,169) (162,832) (174,126)
Other,net (5,485) 13,822 (64,116) 40,083
--------------- -------------- -------------- --------------
TOTAL OTHER INCOME (EXPENSE) (93,451) (77,347) (226,948) (134,043)
--------------- -------------- -------------- --------------
NET AND COMPREHENSIVE INCOME (LOSS) $ 62,215 $ (256,849) $ (324,687) $ (263,078)
=============== ============= ============== =============
BASIC AND COMPREHENSIVE EARNINGS (LOSS)
PER SHARE $ 0.02 $ (0.07) $ (0.09) $ (0.07)
=============== ============= ============== =============
DILUTED EARNINGS (LOSS) PER SHARE $ 0.02 $ (0.06) $ (0.08) $ (0.07)
=============== ============= ============== =============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
4
<PAGE>
OMNI U.S.A., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS AND THE SIX MONTHS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 62,215 $(256,849) $(324,687) $(263,078)
Adjustments to reconcile net income (loss)
to net cash (used) provided by operating
activities:
Depreciation and amortization 82,669 142,279 182,711 197,473
Changes in operating assets and
liabilities:
Accounts receivable (676,149) 419,771 (79,369) 902,064
Inventories (316,937) (179,559) (668,557) (443,851)
Prepaid expenses 45,111 (44,726) (3053) (43,964)
Intangible assets 38,502
Accounts payable and accrued
expenses 195,515 298,819 34,610 242,293
------------- ------------- ------------- -------------
Total adjustments (669,791) 636,584 (495,156) 854,015
------------- ------------- ------------- -------------
Net cash (used) provided by
operating activities (607,576) 379,735 (819,843) 590,937
------------- ------------- ------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of Piecemaker, Inc. (350,990)
Capital expenditures (7,096) (40,559) (36,174) (40,559)
------------- ------------- ------------- -------------
Net cash used by investing
activities (7,096) (40,559) (387,164) (40,559)
------------- ------------- ------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds of borrowing on long-term debt 1,000,000
Proceeds of Piecemaker acquisition financing 200,000
Net borrowings/(payments) on line of credit (35,597) (286,902) 192,384 (607,350)
Net borrowings/(payments) on long-term debt (59,418) (39,796) (108,602) (56,389)
------------- ------------- ------------- -------------
Net cash (used) provided by
financing activities (95,015) (326,698) 1,273,782 (663,739)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN CASH (709,687) 12,478 66,775 (113,361)
CASH AT BEGINNING OF PERIOD 1,069,365 152,458 292,903 278,297
------------- ------------- ------------- -------------
CASH AT END OF PERIOD $ 359,678 $ 164,936 $359,678 $ 164,936
============= ============= ============= =============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
5
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The consolidated financial statements have been prepared by the Company,
without audit, pursuant to the rules and regulations of the Securities and
Exchange Commission. The Company believes that the disclosures made in this
report are adequate to make the information presented not misleading. These
condensed financial statements should be read in conjunction with the
financial statements and the notes thereto included in the Company's latest
annual report on Form 10-KSB. In the opinion of the Company, all adjustments,
consisting only of normal recurring adjustments, necessary to present fairly
the financial position of Omni U.S.A., Inc. and subsidiaries as of December
31, 1999, and the results of their operations and cash flows for the six
month and three month periods ended December 31, 1999, and December 31, 1998,
have been included. The results of operations for such interim periods are
not necessarily indicative of the results for the full year.
2. During the first fiscal quarter ended September 30, 1999, the Company
acquired $212,000 of fixed assets and $250,000 of inventory from Piecemaker,
Inc., a Madill, Oklahoma manufacturer of horse, livestock and utility trailer
component parts, in exchange for 100,000 shares of Omni USA, Inc. common
stock and $350,990 in cash.
3. During the first fiscal quarter ended September 30, 1999, the Company
entered into a loan agreement with PACCAR Inc. in the amount of $1,000,000.
Loan proceeds are to be used to support Shanghai Omni Gear's manufacturing of
planetary geardrives which will be sold by PACCAR Inc. under the distribution
agreement with them, dated September 9, 1999. The note term is 5 years with
quarterly payments of principle plus accrued interest of 8% commencing
December 2000. Under the terms of the loan, PACCAR, Inc. will be issued
between 350,000 and 500,000 warrants to purchase common stock. The warrants
may be exercised through September 2009, at $2.00 per share.
4. Basic, comprehensive and diluted earnings (loss) per share is based on the
weighted average number of shares of common stock outstanding. For the six
month and three month periods ended December 31, 1999, and December 31, 1998,
the Company's weighted average shares outstanding are calculated as follows:
<TABLE>
<CAPTION>
Quarter Quarter Six Months Six Months
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Weighted average common shares 3,623,092 3,523,092 3,623,092 3,523,092
Conversion of dilutive stock
options 30,778 473,517 401,042 482,705
------------ ------------ ------------ ------------
Dilutive weighted average
common shares 3,653,870 3,996,609 4,024,134 4,005,797
============ ============ ============ ============
</TABLE>
5. Interest paid on debt for the three months ended December 31, 1999 and
1998, was $87,966 and $91,169 respectively. Interest paid on debt for the six
months ended December 31, 1999 and December 31, 1998 was $162,832 and
$174,126, respectively. No income taxes were paid during the three months or
six months ended December 31, 1999 and 1998, respectively.
6. During the first fiscal quarter ended September 30, 1999, the Company
expensed $38,502 of unamortized organizational cost relating to the
implementation of Financial Accounting Standards Board SOP 98-5, "Reporting
on the Costs of Start-Up Activities."
6
<PAGE>
7. MAJOR CUSTOMERS AND VENDORS: During the six months ended December 31,
1999, the Company and its subsidiaries had consolidated sales of $1,862,203
to a domestic customer for a total of 21% of consolidated sales. During the
six months ended December 31, 1999, the Company and its subsidiaries had
consolidated purchases of $4,906,963 from two vendors for a total of 55% of
consolidated sales.
8. SEGMENT INFORMATION: The Company and its subsidiaries are engaged in the
business of designing, developing and distributing power transmissions and
trailer and implement components used for agricultural, construction and
industrial equipment.
<TABLE>
<CAPTION>
SEGMENT INFORMATION
FOR OMNI USA, INC. AND SUBSIDIARIES
- -------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED NET SALES INCOME FROM INTEREST IDENTIFIABLE CAPITAL DEPRECIATION/
DECEMBER 31, 1999 OPERATIONS EXPENSE ASSETS EXPENDITURES AMORTIZATION
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Power Transmission
Components $4,060,481 $ 283,036 $71,103 $ 7,164,718 $16,477 $70,009
- -------------------------------------------------------------------------------------------------------
Trailer and Implement
Components 993,039 5,730 17,323 2,858,408 12,601 12,690
- -------------------------------------------------------------------------------------------------------
Corporate and
Eliminations (133,100)
- -------------------------------------------------------------------------------------------------------
Total $5,053,520 $ 155,666 $87,966 $10,023,126 $29,078 $82,669
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED NET SALES INCOME FROM INTEREST IDENTIFIABLE CAPITAL DEPRECIATION/
DECEMBER 31, 1998 OPERATIONS EXPENSE ASSETS EXPENDITURES AMORTIZATION
- -------------------------------------------------------------------------------------------------------
Power Transmission
Components $2,605,204 $(110,130) $70,848 $5,571,432 $40,559 $ 125,208
- -------------------------------------------------------------------------------------------------------
Trailer and Implement
Components 804,454 5,628 20,321 2,069,021 17,071
- -------------------------------------------------------------------------------------------------------
Corporate and
Eliminations* (75,000)
- -------------------------------------------------------------------------------------------------------
Total $3,409,658 $(179,502) $91,169 $7,640,453 $40,559 $ 142,279
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED NET SALES INCOME FROM INTEREST IDENTIFIABLE CAPITAL DEPRECIATION/
DECEMBER 31, 1999 OPERATIONS EXPENSE ASSETS EXPENDITURES AMORTIZATION
- -------------------------------------------------------------------------------------------------------
Power Transmission
Components $6,909,301 $ 131,658 $135,139 $ 7,164,718 $23,573 $159,881
- -------------------------------------------------------------------------------------------------------
Trailer and Implement
Components 1,984,357 30,312 27,693 2,858,408 12,601 22,830
- -------------------------------------------------------------------------------------------------------
Corporate and
Eliminations (259,709)
- -------------------------------------------------------------------------------------------------------
Total $8,893,658 $ (97,739) $162,832 $10,023,126 $36,174 $182,711
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED NET SALES INCOME FROM INTEREST IDENTIFIABLE CAPITAL DEPRECIATION/
DECEMBER 31, 1998 OPERATIONS EXPENSE ASSETS EXPENDITURES AMORTIZATION
- -------------------------------------------------------------------------------------------------------
Power Transmission
Components $5,372,109 $ (74,879) $127,922 $5,571,432 $40,559 $165,639
- -------------------------------------------------------------------------------------------------------
Trailer and Implement
Components 1,843,539 95,844 46,204 2,069,021 31,834
- -------------------------------------------------------------------------------------------------------
Corporate and
Eliminations* (150,000)
- -------------------------------------------------------------------------------------------------------
Total $7,215,648 $(129,035) $174,126 $7,640,453 $40,559 $197,473
- -------------------------------------------------------------------------------------------------------
</TABLE>
* - Amounts estimated for prior years
7
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
This report has been prepared pursuant to the rules and regulations
of the Securities and Exchange Commission. This report should be read in
conjunction with the Company's latest Form 10-KSB, a copy of which may be
obtained by visiting the Company's home page at WWW.OUSA.COM, or by writing
to the Investor Relations Department, Omni U.S.A., Inc., 7502 Mesa Road,
Houston, Texas 77028.
LIQUIDITY AND CAPITAL RESOURCES
The Company's current ratio was 1.3 as of December 31, 1999, compared
with a current ratio of 1.2 as of June 30, 1999. The Company had working
capital of $1,860,468 as of December 31, 1999 and working capital of
$1,025,024 as of June 30, 1999. This represents an increase of $835,444 from
June 30, 1999. The change in working capital from June 30, 1999 was due
primarily to the funding of the PACCAR, Inc. loan (see Note 3) and increase
in inventory, partly due to the acquisition of Piecemaker, Inc. inventory
(see Note 2), in addition to other changes in working capital.
The cash balance was $359,678 as of December 31, 1999; an increase of
$66,775 compared to the June 30, 1999 cash balance of $292,903. Accounts
receivable balance of $2,996,614 as of December 31, 1999 increased $75,718
compared to June 30, 1999 accounts receivable balance of $2,920,896. The
receivable collection period increased from 59 days to 61 days from June 30,
1999 to December 31, 1999, respectively.
Inventory balance as of December 31, 1999 was $4,126,099; an increase
of $918,557 compared to June 30, 1999. At December 31, 1999, inventory
turnover was 100 days compared to 89 days at June 30, 1999.
The Company believes that between its access to the revolving credit
facility and its ability to generate funds internally, it has adequate
capital resources to meet its working capital requirements for the
foreseeable future, given its current working capital requirements and known
obligations, and assuming current levels of operations. In addition, the
Company believes that it has the ability to raise additional financing in the
form of debt or equity to fund additional capital expenditures, if required.
RESULTS FOR THE QUARTER ENDED DECEMBER 31, 1999 COMPARED WITH THE QUARTER
ENDED DECEMBER 31, 1998
The Company had an operating income of $155,666 for the quarter ended
December 31, 1999 compared to operating loss of $179,502 for the quarter
ended December 31, 1998. The Company had a net income of $62,215 ($0.02 per
share) for the quarter ended December 31, 1999, compared with a net loss of
$256,849 ($0.06 per share) for the quarter ended December 31, 1998.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
QUARTER % QUARTER % DOLLAR %
ENDED ENDED
NET SALES 12/31/99 OF TOTAL 12/31/98 OF TOTAL CHANGE CHANGE
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
Power Transmission Components $4,060,481 80% $2,605,204 76% $1,455,277 56%
- -----------------------------------------------------------------------------------------
Trailer and Implement
Components 993,039 20% 804,454 24% 188,585 23%
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
Consolidated $5,053,520 100% $3,409,658 100% $1,643,862 48%
- -----------------------------------------------------------------------------------------
</TABLE>
Selling, general and administrative expenses were $1,178,072 for the
quarter ended December 31, 1999, an increase of $93,463 or approximately 8.6%
over the quarter ended December 31, 1998 expenses of $1,084,609. These
expenses were approximately 23% of net sales compared to 32% for the quarter
ended December 31, 1998.
8
<PAGE>
RESULTS FOR THE SIX MONTHS ENDED DECEMBER 31, 1999 COMPARED WITH THE SIX MONTHS
ENDED DECEMBER 31, 1998
The Company had an operating loss of $97,739 for the six months ended
December 31, 1999 compared to operating loss of $129,035 for the six months
ended December 31, 1998. The Company had a net loss of $324,687 ($0.08 per
share) for the six months ended December 31, 1999, compared with a net loss
of $263,078 ($0.07 per share) for the six months ended December 31, 1998.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
SIX MONTHS % SIX MONTHS % DOLLAR %
ENDED ENDED
NET SALES 12/31/99 OF TOTAL 12/31/98 OF TOTAL CHANGE CHANGE
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
Power Transmission Components $6,909,301 78% $5,372,109 75% $1,537,192 29%
- -----------------------------------------------------------------------------------------
Trailer and Implement
Components 1,984,357 22% 1,843,539 25% 140,818 8%
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
Consolidated $8,893,658 100% $7,215,648 100% $1,678,010 23%
- -----------------------------------------------------------------------------------------
</TABLE>
Selling, general and administrative expenses were $2,283,213 for the
six months ended December 31, 1999, an increase of $234,356 or approximately
11% over the six months ended December 31, 1998 expenses of $2,048,857. These
expenses were approximately 26% of net sales compared to 28% for the six
months ended December 31, 1998.
Although the Company has been increasing its first and second quarter
sales, the Company historically has experienced its lowest sales in the first
and second quarters, with a significant portion of its sales in the third and
fourth quarters. Management believes that fiscal year 2000 will continue in
that sales pattern.
YEAR 2000
The Company has identified the internal software and imbedded
technology Year 2000 risks. The Company has performed internal test
operations using dates subsequent to Year 2000 (specifically, the Company's
financial and inventory systems) and has tested and evaluated its computer
operated machinery and facilities equipment.
The Company has tested and has requested, and in some instances,
received written assurances from its software and hardware vendors and key
suppliers in its efforts to achieve Year 2000 compliance. Where such vendors
or key suppliers are unable to verify their readiness to the Company's
satisfaction, the Company will consider alternative or contingent vendors or
suppliers.
The Company completed its Year 2000 assessment and remediation by
December 31, and has spent approximately $30,000 to date to assure Year 2000
compliance.
As a result of the Company's year 2000 assessment and remediation,
the Company has not experienced any materially adverse effects on its
operations as a result of the Year 2000 issue. Nevertheless, there is no
assurance that the systems of other companies that interact with the Company
are sufficiently Year 2000 compliant so as to avoid any future adverse impact
on the Company's operations, financial condition and results of operations.
9
<PAGE>
CAUTIONARY STATEMENT
The following is a "Safe Harbor" Statement under the Private
Securities Litigation Reform Act of 1995:
With the exception of historical facts, the statements contained in
Item 2 of this form 10-QSB are forward looking statements. Actual results may
differ materially from those contemplated by the forward-looking statements.
These forward looking statements involve risks and uncertainties, including
but not limited to, the following risks: 1) cyclical downturns affecting the
markets for capital goods, 2) substantial increases in interest rates, 3)
availability or material increases in the costs of select raw materials, and
4) actions taken by competitors with regard to such matters as product
offerings pricing, and delivery. Investors are directed to the Company's
documents, such as its Annual Report on Form 10-KSB, Form 10-QSB's and Form
8-KSB filed with the Securities and Exchange Commission.
10
<PAGE>
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS.
There have been no material changes from the disclosure in the
Company's Form 10-KSB for the fiscal year ended June 30, 1999.
Item 2. CHANGE IN SECURITIES.
Not applicable.
Item 3. DEFAULTS UPON SENIOR SECURITIES.
Not applicable.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
Item 5. OTHER INFORMATION.
None.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K.
None.
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.
Date: February 10, 2000 OMNI U.S.A., INC.
By: /s/ Jeffrey K. Daniel
----------------------------
Jeffrey K. Daniel
President and Chief Executive Officer
By: /s/ David M. Sallean
----------------------------
David M. Sallean
Chief Financial Officer
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> OCT-01-1999
<PERIOD-END> DEC-31-1999
<CASH> 359,678
<SECURITIES> 0
<RECEIVABLES> 3,139,302
<ALLOWANCES> 126,968
<INVENTORY> 4,126,099
<CURRENT-ASSETS> 7,570,857
<PP&E> 4,115,238
<DEPRECIATION> 1,879,962
<TOTAL-ASSETS> 10,023,126
<CURRENT-LIABILITIES> 5,710,389
<BONDS> 0
0
0
<COMMON> 22,880
<OTHER-SE> 2,566,999
<TOTAL-LIABILITY-AND-EQUITY> 10,023,126
<SALES> 5,053,520
<TOTAL-REVENUES> 5,053,520
<CGS> 3,719,782
<TOTAL-COSTS> 4,897,854
<OTHER-EXPENSES> 5,485
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 87,966
<INCOME-PRETAX> 62,215
<INCOME-TAX> 0
<INCOME-CONTINUING> 62,215
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 62,215
<EPS-BASIC> 0.02
<EPS-DILUTED> 0.02
</TABLE>
