UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1996 COMMISSION FILE NUMBER 0-20270
THE NATIONAL REGISTRY INC.
(Exact name of registrant as specified in its charter)
DELAWARE 95-4346070
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2501 - 118TH AVENUE NORTH, ST. PETERSBURG, FLORIDA 33716
(Address of principal executive offices and zip code)
(813) 573-3353
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name, former address and former fiscal year if changed
since last report)
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 |_|
There were 24,837,421 shares of outstanding Common Stock of the
registrant as of May 9, 1996.
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
THE NATIONAL REGISTRY INC.
(A Development Stage Company)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
<TABLE>
<CAPTION>
March 31, December 31,
ASSETS 1996 1995
-------- --------
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 5,838 $ 178
Receivables 1,019 21
Prepaid expense 53 182
Deferred charges 115 159
Inventory 0 143
Note receivable-related party 60 60
Other 13 12
-------- --------
Total current assets 7,098 755
-------- --------
EQUIPMENT
Computer equipment 1,960 1,848
Office equipment and other 224 215
-------- --------
2,184 2,063
Less accumulated depreciation (1,401) (1,323)
-------- --------
783 740
-------- --------
Investment 105 105
-------- --------
TOTAL ASSETS $ 7,986 $ 1,600
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 547 $ 510
-------- --------
Total current liabilities 547 510
-------- --------
STOCKHOLDERS' EQUITY
Common stock, $.01 par value
Authorized - 50,000,000 shares
Issued and outstanding - 24,359,753 and 24,244,253 shares
as of March 31, 1996 and December 31, 1995, respectively 244 242
Preferred stock, $.01 par value convertible
Authorized - 1,000,000 shares
Issued and outstanding - 100,800 and 100,000 shares as of
March 31, 1996 and
December 31, 1995, respectively
(liquidation preference of $100 per share) 1 1
Capital in excess of par value 33,851 26,475
Deficit accumulated in the development stage (26,471) (25,376)
Unamortized deferred compensation (186) (252)
-------- --------
7,439 1,090
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 7,986 $ 1,600
======== ========
See accompanying notes
</TABLE>
2
<PAGE>
THE NATIONAL REGISTRY INC.
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
<TABLE>
<CAPTION>
From October
23, 1991 to
Three Months March 31, 1996
March 31, (Inception
1996 1995 to Date)
-------- -------- ------------
<S> <C> <C> <C>
Revenue $ 1,084 $ 13 $ 1,485
Cost of Revenue 579 7 853
-------- -------- ------------
GROSS PROFIT 505 6 632
-------- -------- ------------
OPERATING EXPENSES:
Selling and marketing 645 232 8,550
Product development 323 474 8,197
General and administrative 690 403 11,022
-------- -------- ------------
TOTAL OPERATING EXPENSES 1,658 1,109 27,769
OTHER INCOME:
Interest Income 58 8 666
-------- -------- ------------
NET LOSS ($ 1,095) ($ 1,095) ($ 26,471)
======== ======== ============
Loss per common share ($ 0.04) ($ 0.06) ($ 1.39)
Weighted average number of common shares 24,335 19,822 19,091
See accompanying notes.
</TABLE>
3
<PAGE>
THE NATIONAL REGISTRY INC.
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
<TABLE>
<CAPTION>
From October 23,
Three Months Ended 1991 (Inception)
March 31, to March 31,
1996 1995 1996
----------- ---------- ----------------
<S> <C> <C> <C>
Cash used in operating activities:
Net Loss ($1,095) ($1,095) ($26,471)
Adjustments to reconcile net loss to net cash
used in operating activities:
Compensation applicable to stock option grants 66 81 3,155
Compensation applicable to stock gifts by
principal stockholder --- --- 195
Compensation applicable to Phoenix stock grant --- --- 183
Compensation applicable to Cogent warrants --- --- 176
Compensation applicable to Cogent stock --- --- 250
Depreciation 114 144 1,926
Compensation applicable to transfer of stock --- --- 9
Expenses paid by Home Shopping Network --- --- 647
Changes in operating assets and liabilities:
(Increase) decrease in assets:
Accounts receivable (933) (10) (935)
Prepaid expense 129 136 (53)
Deferred charges 44 --- (115)
Inventory 143 --- 0
Note from related party --- --- (60)
Other assets (66) 13 (91)
Increase (decrease) in liabilities:
Accounts payable and accrued liabilities 37 184 547
----------- ---------- ----------------
Total adjustments (466) 558 5,834
----------- ---------- ----------------
Net cash used in operating activities (1,561) (537) (20,637)
----------- ---------- ----------------
Cash used in investing activities:
Additions to organizational costs --- --- (6)
Purchase of equipment (157) (6) (2,529)
Increase in investments --- --- (105)
----------- ---------- ----------------
Net cash used in investing activities (157) (6) (2,640)
----------- ---------- ----------------
Cash provided by financing activities:
Proceeds from issuance of common stock 173 3,970 12,240
Proceeds from issuance of preferred stock 7,205 --- 12,205
Capital contributions from related parties --- --- 4,660
----------- ---------- ----------------
Net cash provided by financing activities 7,378 3,970 29,105
----------- ---------- ----------------
Net increase in cash and cash equivalents 5,660 3,427 5,828
Cash and cash equivalents at beginning of period 178 645 ---
Cash received from merger --- --- 10
----------- ---------- ----------------
Cash and cash equivalents at end of period $5,838 $4,072 $5,838
=========== ========== ================
See accompanying notes.
</TABLE>
4
<PAGE>
THE NATIONAL REGISTRY INC.
(A Development Stage Company)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1996
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying financial statements are unaudited and condensed and,
therefore, do not contain certain information included in the annual financial
statements of The National Registry Inc. (the "Company"). In the opinion of
management, all adjustments (consisting only of normally recurring accruals) it
considers necessary for a fair presentation have been included.
The Company's condensed consolidated interim financial results are not
necessarily indicative of results to be expected for a full fiscal year and
should be read in conjunction with its financial statements and the notes
thereto included in the Company's Annual Report on Form 10-K for the fiscal year
ended December 31, 1995, as filed with the Securities and Exchange Commission on
March 29, 1996 and as amended on April 29, 1996.
2. PRINCIPLES OF CONSOLIDATION
The condensed consolidated financial statements include the accounts of
the Company and its subsidiaries. All material intercompany transactions have
been eliminated in consolidation.
3. NET LOSS PER COMMON SHARE
For the three month periods ended March 31, 1996 and 1995 and for the
period October 23, 1991 (inception) to March 31, 1996, the loss per common share
was computed by dividing net loss by the weighted average number of shares of
common stock, par value $.01 per share (the "Common Stock"), outstanding during
the period. Due to their anti-dilutive effect, the following shares were not
included in the calculation: (1) common share equivalents, relating to the
assumed conversion of the Series A Preferred into 6,336,154 shares of Common
Stock, (2) common share equivalents, relating to the assumed conversion of the
Series B Preferred Stock, par value $.01 per share (the "Series B Preferred
Stock"), into 5,228,758 shares of Common Stock, assuming conversion at March 31,
1996 (but subject to anti-dilution adjustment under certain circumstances), (3)
exercise of certain vested stock options to purchase up to 2,825,334 shares of
Common Stock and (4) exercise of certain warrants to purchase up to 359,785
shares of Common Stock of the Company.
5
<PAGE>
THE NATIONAL REGISTRY INC.
(A Development Stage Company)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
4. STOCKHOLDERS' EQUITY
On January 29, 1996, the Company completed an equity financing
pursuant to which certain investors purchased from the Company 800 shares of
Series B Preferred Stock for an aggregate purchase price of $8.0 million before
commissions and expenses (the "Series B Preferred Stock Private Placement").
Shares of Series B Preferred Stock are convertible at the option of the holder
thereof into shares of Common Stock, based upon the result obtained by dividing
the $10,000 per share purchase price (increasing at the rate of eight per cent
per annum) (the "Stated Value") by a conversion price equal to the lesser of (i)
$2.53 per share or (ii) 85% of a floating price equal to the average closing bid
price of the Common Stock for the five trading days immediately proceeding the
date of conversion. All outstanding shares of Series B Preferred Stock will
automatically convert into Common Stock on January 19, 1999. The Company may
redeem the Series B Preferred Stock, in cash, at a premium of up to 125% of the
Stated Value commencing on July 30, 1996, or, under certain other circumstances,
at a price based on the Stated Value in the event of a notice of conversion at
less than $2.53 per share of Common Stock. The shares of Series B Preferred
Stock have no voting rights except as required by law and have a liquidation
preference equal to their Stated Value.
In connection with the Series B Preferred Stock Private Placement,
the Company issued to Swartz Investments, LLC, the placement agent involved in
the Series B Preferred Stock Private Placement, warrants to purchase 284,585
shares of Common Stock at an exercise price of $2.53 per share. Such warrants
are exerciseable at any time and expire on January 29, 2001. The Company has
also agreed to certain registration rights with respect to such warrants.
On February 20, 1996 the Company filed a registration
statement to register certain shares of Common Stock issuable upon conversion of
certain shares of Series B Preferred Stock, certain shares of Common Stock held
by certain selling stockholders named in such registration statement and certain
shares of Common Stock issuable upon the exercise of certain warrants.
6
<PAGE>
THE NATIONAL REGISTRY INC.
(A Development Stage Company)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
A. RESULTS OF DEVELOPMENT ACTIVITIES
For the three month period ended March 31, 1996, the Company incurred a
net loss of $1,095,000, resulting in a loss per common share of $0.04. This
compares with a net loss and loss per common share for the three month period
ended March 31, 1995 of $1,095,000 and $0.06 per common share. Approximately
$180,000 of the net loss in the three month period ended March 31, 1996 and
$225,000 of the net loss in the three month period ended March 31, 1995 were
attributable to non-cash charges to income, including depreciation and the
issuance of certain stock options.
REVENUE AND GROSS PROFIT
For the three month period ended March 31, 1996, the Company reported
operating revenues and gross profit of $1,084,000 and $505,000. This compares
with operating revenues and gross profits of $13,000 and $6,000 for the three
month period ended March 31, 1995. The increases are primarily due to the
additions of the New Jersey State contract in August 1995 (representing revenue
of approximately $67,000 per month through January 1997) and the Connecticut
State contract in January 1996 (representing revenue of approximately $860,000
for the three months ended March 31, 1996). Revenues for the Connecticut
contract are anticipated at approximately $24,000 per month for the balance of
1996 and $15,000 per month for the remaining two years of the contract. As a
result, the operating revenues and gross profit for the three month period ended
March 31, 1996 are not necessarily indicative of the results for the balance of
1996 or any other future period.
OPERATING EXPENSES
The operating expenses for the three month period ended March 31, 1996
increased over the same period in 1995 by $549,000, or 50%. The increase for the
three month period ended March 31, 1995 was primarily due to increases in
Selling and Marketing expense primarily due to hiring of individuals to seek to
develop strategic relationships and secure new contracts, increases in General
and Administrative expense primarily due to the hiring of additional staff,
increases in corporate communications expense and unabsorbed overhead associated
with the Company's systems integration department, offset by decreases in
Product Development expenses associated with development of the Microreader (as
hereinafter defined) and decreases in depreciation expense for equipment which
became fully depreciated in 1995. Operating expenses, including the functional
areas of selling and marketing, product development and general and
administrative, are expected to increase for the remainder of the year as the
Company attempts to secure new contracts, develop strategic relationships and
continue development of its technology.
7
<PAGE>
THE NATIONAL REGISTRY INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS - (CONTINUED)
The following table sets forth certain changes in operating expenses,
including the absolute dollar and percentage changes, for the three month period
ended March 31, 1996 as compared to the same period in 1995:
CHANGES IN OPERATING EXPENSES
THREE MONTHS ENDED
MARCH 31, 1996
--------------
(IN THOUSANDS, EXCEPT %)
$ %
CHANGE CHANGE
------ ------
Selling and marketing $ 413 178%
Product development (151) (32)
General and administrative 287 71
------- ---
$ 549 50%
======= ===
SELLING AND MARKETING
Sales and marketing expense increased $413,000, or 178%, for the three
month period ended March 31, 1996 compared to the same period in 1995 primarily
due to increases in (1) employee and consulting expenses ($329,000), (2) travel
expense ($48,000) and (3) advertising expense ($17,000).
The Company is focusing its sales efforts on seeking agreements from
governmental agencies to provide welfare fraud control systems and services, and
is currently involved in discussions with a number of governmental authorities
to seek their authorization to develop and install fraud control systems using
finger image identification technology. The Company is also engaged in marketing
its finger image identification technology to a wide range of potential
commercial markets including computer access security, voter registration
systems, national identification cards for foreign countries, identification
services for the departments of motor vehicles of various states and selected
components of the healthcare industry (i.e. insurers, physicians, pharmacies,
laboratories, clinics and hospitals).
8
<PAGE>
THE NATIONAL REGISTRY INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS - (CONTINUED)
PRODUCT DEVELOPMENT
Product development expenses for the three month period ended March 31,
1996 decreased $151,000, or 32%, compared to the same period in 1995 due
primarily to decreases in employee and consulting expense ($85,000) associated
with the development of low cost optical scanning computer peripheral products,
designed to, among other things, optically scan a user's fingerprint (the
"Microreader") and decreases in depreciation expense of equipment purchased in
1992 which was fully depreciated in 1995 ($80,000).
The Company currently intends to develop both analog and digital
Microreader prototypes for use in a wide range of potential applications that
require positive identification, including welfare fraud control, medical
insurance fraud control, medical record access security, voter registration and
voting fraud control, credit card fraud control and computer access control.
Although the Company's sales efforts are not dependent upon the successful
development of a Microreader, the Company believes that the development of the
Microreader will give the Company a competitive advantage in selling and
implementing its finger image identification systems. While the Company expects
that additional modifications will be necessary, it is currently testing a
possible prototype of the Microreader. Completion of testing of a prototype,
which is expected by June 1996, may assist the Company's marketing efforts. The
Company is working on refining its software technology used with the Microreader
and other similar systems. The Company has established tentative relationships
with certain manufacturers who may both produce the Microreader, once developed,
and serve as an original equipment manufacturer in an attempt to create
additional sales opportunities for the product. There is no assurance that the
Company will successfully develop the Microreader or any other similar system.
GENERAL AND ADMINISTRATIVE
For the three month period ended March 31, 1996, general and
administrative expenses increased $287,000, or 71%, compared to the same period
in 1995 due primarily to increases in employee and consulting expenses
($170,000) due to the hiring of various management personnel and unabsorbed
systems integration personnel expense, an increase in expenses related to
corporate communications ($60,000), an increase in rent expense ($15,000)
primarily due to the opening of the Maryland office, and increases in various
other expenses associated with increased personnel. The Company expects that the
trend of increased general and administrative expenses will continue.
9
<PAGE>
THE NATIONAL REGISTRY INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS - (CONTINUED)
B. LIQUIDITY AND CAPITAL RESOURCES
Cash and working capital as of March 31, 1996 was $5,838,000 and
$6,492,000, respectively, as compared to $178,000 and $245,000, respectively, as
of December 31, 1995 and $4,062,000 and $3,650,000, respectively, as of March
31, 1995. This represents an increase from the Company's cash and working
capital as of December 31, 1995 of $5,660,000 and $6,247,000, respectively, and
an increase from that as of March 31, 1995 of $1,776,000 and $2,842,000,
respectively.
The increase in the Company's cash and working capital as of March 31,
1996 from that as of March 31, 1995 primarily relates to $7,836,000 in capital
contributions from the equity financing described below and exercise of certain
employee stock options, offset, in part, by cash operating expenses and certain
capital additions. The increase in the Company's cash and working capital as of
March 31, 1996 from that as of December 31, 1995 primarily relates to $7,378,000
in capital contributions offset, in part, by cash operating expenses and certain
capital additions incurred during 1996.
The Company anticipates additional 1996 capital expenditures of at
least $960,000 to support anticipated growth in personnel, purchase computer
hardware to support various product development projects and support additional
development of the Microreader.
On January 29, 1996, the Company completed an equity financing
pursuant to which certain investors purchased from the Company 800 shares of
Series B Preferred for an aggregate purchase price of $8.0 million before
commissions and expenses (estimated at approximately $795,000 in the aggregate).
Shares of Series B Preferred Stock are convertible at the option of the holder
thereof into shares of Common Stock, based upon the result obtained by dividing
the $10,000 per share purchase price (increasing at the rate of eight per cent
per annum) (the "Stated Value") by a conversion price equal to the lesser of (i)
$2.53 per share or (ii) 85% of a floating price equal to the average closing bid
price of the Common Stock for the five trading days immediately proceeding the
date of conversion. All outstanding shares of Series B Preferred Stock will
automatically convert into Common Stock on January 19, 1999. The Company may
redeem the Series B Preferred Stock, in cash, at a premium commencing on July
30, 1996, or, under certain circumstances, at a price based on the Stated Value
in the event of a notice of conversion at less than $2.53 per share of Common
Stock. Any exercise by the Company of its redemption rights, absent new
financing, would adversely impact the Company's liquidity. The shares of Series
B Preferred Stock have no voting rights except as required by law and have a
liquidation preference equal to their Stated Value.
10
<PAGE>
THE NATIONAL REGISTRY INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS - (CONTINUED)
On February 20, 1996 the Company filed a registration
statement to register certain shares of Common Stock issuable upon conversion of
certain shares of Series B Preferred Stock, certain shares of Common Stock held
by certain selling stockholders named in such registration statement and certain
shares of Common Stock issuable upon the exercise of certain warrants. The
Company has agreed with the holders of the Series B Preferred Stock to use its
reasonable best efforts to cause such registration of Series B Preferred Stock
to become as soon as practicable.
On May 24, 1994, the Company, Blue Cross and Blue Shield of
New Jersey, Inc. ("BCBSNJ") and a wholly owned subsidiary of BCBSNJ entered into
the Stockholders Agreement pursuant to which the parties agreed to form a
corporation jointly owned by the Company and such BCBSNJ subsidiary, BIOMETRx
Inc. ("BIOMETRx"), for the purpose of marketing the Company's finger image
identification technology to, among other markets, the healthcare industry
nationwide and to certain governmental agencies in New Jersey. The Company and
BCBSNJ have each agreed to loan up to $300,000 to BIOMETRx for working capital
purposes. Through May 10, 1996, the Company and BCBSNJ have each loaned $60,000
to BIOMETRx to fund preliminary organizational and development activities. As of
May 10, 1996, BIOMETRx has not commenced operations. There is no assurance that
BIOMETRx will commence operations or, if it commences operations, when such
operations will commence and whether such operations will be successful in the
marketing of any systems, services or products.
Since its incorporation, the Company has not paid or declared
dividends on the Common Stock, nor does it intend to pay or declare cash
dividends on its Common Stock in the foreseeable future. While the Series B
Preferred Stock does not carry any dividend preference, the Stated Value of such
shares increases at the rate of eight percent (8%) per annum.
Management believes that the adequacy of its cash resources
will be dependent on its ability to achieve sales and, to the extent necessary,
obtain additional capital to complete the development and marketing of its
finger image identification systems and services. There can be no assurance that
the Company will be able to complete significant additional sales of its systems
or services during 1996. The Company continues to spend net cash at a recurring
rate of approximately $400,000 to $500,000 per month (including capital
expenditures). The Company believes that its existing working capital, together
with anticipated cash flows from operations and other funding sources will be
sufficient to meet its expected working capital needs through early-1997.
However, absent a significant increase in sales, the Company will require
additional funds thereafter to continue, among other things, development,
testing and marketing of its finger image identification systems and services
and to maintain its operations. There is a significant likelihood that such
additional funds will not be available on terms acceptable to the Company, if at
all. It is likely that any such additional infusion of capital would be in the
form of the sale and issuance of additional shares of Common Stock, which would
substantially increase the number of shares of Common Stock outstanding on a
fully-diluted basis. The failure to obtain such additional funds may cause
11
<PAGE>
THE NATIONAL REGISTRY INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS - (CONTINUED)
the Company to cease or curtail operations. Even if such additional funding is
obtained, there can be no assurance that the Company will be able to complete
developing and testing of its systems and services or,if completed, that it
will be able to consummate significant sales of its systems or services.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit
No. Description
------- -----------
11 Computation of Earnings Per Share
27 * Financial Data Schedule
* Electronic filing only
(b) Reports on Form 8-K
During the quarterly period ended March 31, 1996, the Company
filed one report on Form 8-K, dated as of January 25, 1996, in which
under "Item 5. Other Events" the Company reported the consummation of
the Series B Preferred Stock Private Placement.
12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE NATIONAL REGISTRY INC.
DATE: May 13, 1996 BY: /s/ Steven T. Price
-------------------------
Steven T. Price
Treasurer and Controller
(duly authorized officer and
principal financial officer)
13
<PAGE>
EXHIBIT 11
THE NATIONAL REGISTRY INC.
(A Development Stage Company)
CALCULATION OF LOSS PER SHARE
(In thousands except per share amounts)
<TABLE>
<CAPTION>
From October
23, 1991
(inception)
For the Three Months to
Ended March 31, March 31,
PRIMARY LOSS PER SHARE: (1) 1996 1995 1996
---- ---- -----
<S> <C> <C> <C>
Weighted average shares outstanding of
Common Stock 24,335 19,822 19,091
====== ====== ======
Net loss ($1,095) ($1,095) ($26,471)
======= ====== =======
Net loss per share ($0.04) ($0.06) ($1.39)
======= ======= =======
</TABLE>
(1) The Company has 100,000 shares of Series A preferred stock convertible into
6,336,154 shares of the Company's common stock, 800 shares of Series B preferred
stock convertible into 5,228,758 shares of the Company's common stock, assuming
conversion as of March 31, 1996 (but subject to anti-dilution adjustment under
certain circumstances), vested options to purchase up to 2,825,334 shares of the
Company's common stock and warrants to purchase up to 359,785 shares of the
Company's common stock. Preferred stock, stock options and warrants are not
considered in the computation because they are anti-dilutive in the aggregate.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF THE NATIONAL REGISTRY INC., FOR THE QUARTERLY PERIOD
ENDED MARCH 31, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 5,838
<SECURITIES> 0
<RECEIVABLES> 1,019
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 7,098
<PP&E> 2,184
<DEPRECIATION> 1,401
<TOTAL-ASSETS> 7,986
<CURRENT-LIABILITIES> 547
<BONDS> 0
<COMMON> 244
0
1
<OTHER-SE> 7,194
<TOTAL-LIABILITY-AND-EQUITY> 7,986
<SALES> 0
<TOTAL-REVENUES> 1,084
<CGS> 0
<TOTAL-COSTS> 579
<OTHER-EXPENSES> 1,658
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,095)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,095)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,095)
<EPS-PRIMARY> (.04)
<EPS-DILUTED> .00
</TABLE>
