UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES AND EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
Commission File Number 0-20770
RESPONSE USA, INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware #22-3088639
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification Number)
11-H Princess Road, Lawrenceville, New Jersey 08648
(Address of principal executive offices) (Zip code)
(609) 896-4500
(Registrant's telephone number, including area code)
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___
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date: 5,349,490 shares of $.008 par
value common stock as of April 30, 1997.
Response USA, Inc. and Subsidiaries
Index
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets for March 31, 1997
and June 30, 1996 1-2
Consolidated Statements of Operations for the
Nine Months and Three Months ended March 31, 1997
and 1996 3
Consolidated Statement of Stockholders' Equity for
March 31, 1997 4
Consolidated Statement of Cash Flows for the Nine Months
Ended March 31, 1997 and 1996 5-7
Notes to Consolidated Financial Statements 8-15
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 16-22
PART II. OTHER INFORMATION 23-25
Response USA, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
ASSETS
March 31, June 30,
------------ -----------
1997 1996
------------ -----------
(Unaudited)
CURRENT ASSETS
Cash $601,741 $1,926,766
Marketable securities 93,750 100,000
Accounts receivable - Current portion
Trade - Net of allowance for doubtful accounts
of $648,984 and $327,072 respectively 1,400,653 1,461,911
Net investment in sales-type leases 87,203 125,385
Preferred stock subscription receivable 6,525,000
Inventory 832,255 652,551
Prepaid expenses and other current assets 221,841 118,689
----------- -----------
Total current assets 3,237,443 10,910,302
----------- -----------
MONITORING CONTRACT COSTS - Net of accumulated
amortization of $4,511,525 and $2,838,374
respectively 18,762,958 16,950,387
----------- -----------
PROPERTY AND EQUIPMENT - Net of accumulated
depreciation and amortization of $2,206,321
and $1,862,915 respectively 1,557,985 1,261,007
----------- -----------
OTHER ASSETS
Accounts receivable - Noncurrent portion
Trade 60,327 29,421
Net investment in sales-type leases 202,482 323,817
Deposits 48,289 48,008
Deferred financing costs - Net of accumulated
amortization of $133,924 and $111,945
respectively 543,250 3,411,803
Investment in Joint Venture 3,276,186
----------- -----------
4,130,534 3,813,049
----------- -----------
$27,688,920 $32,934,745
=========== ===========
See accompanying Notes to Consolidated Financial Statements
-1-
Response USA, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, June 30,
------------ ----------
1997 1996
------------ ----------
(Unaudited)
CURRENT LIABILITIES
Current portion of long-term debt
Notes payable $166,009 $194,914
Capitalized lease obligations 61,876 51,064
Accounts payable - Trade 639,472 424,921
Purchase holdbacks - Current portion 228,117 636,493
Accrued expenses and other current liabilities 1,124,701 2,033,701
Deferred revenue - Current portion 1,910,710 1,568,059
----------- -----------
Total current liabilities 4,130,885 4,909,152
----------- -----------
LONG-TERM LIABILITIES - Net of current portion
Long-term debt
Notes payable 11,509,632 12,374,607
Capitalized lease obligations 98,111 31,189
Purchase holdbacks 72,487 10,483
Deferred revenue 22,715 23,044
Dividends payable 523,755
Put obligation payable 2,580,338
----------- -----------
12,226,700 15,019,661
----------- -----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock - Par value $1,000
Authorized 250,000 shares
Issued and outstanding 7,500 - June 30, 1996
and 6,890 shares - March 31, 1997 9,232,600 7,500,000
Common stock - Par value $.008
Authorized 12,500,000 shares
Issued and outstanding 3,854,944 shares -
June 30, 1996 and 5,304,356 shares -
March 31, 1997 42,435 30,840
Additional paid-in capital 23,667,286 19,056,240
Unrealized holding losses on available-for-
sale securities (199,593) (193,343)
Accumulated deficit (21,411,393) (13,387,805)
----------- -----------
11,331,335 13,005,932
----------- -----------
$27,688,920 $32,934,745
=========== ===========
See accompanying Notes to Consolidated Financial Statements.
-2-
Response USA, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Nine Months Ended Three Months Ended
March 31, March 31,
----------------------- ----------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
OPERATING REVENUES
Product sales $2,138,229 $1,984,146 $860,187 $507,803
Services 5,857,823 4,689,132 2,047,503 1,576,126
Finance and rentals 1,319,018 1,361,762 421,407 450,906
---------- ---------- ---------- ----------
9,315,070 8,035,040 3,329,097 2,534,835
---------- ---------- ---------- ----------
COST OF REVENUES
Product sales 1,526,201 1,409,579 653,206 412,158
Services and rentals 1,513,193 1,098,089 500,408 386,292
---------- ---------- ---------- ----------
3,039,394 2,507,668 1,153,614 798,450
---------- ---------- ---------- ----------
GROSS PROFIT 6,275,676 5,527,372 2,175,483 1,736,385
---------- ---------- ---------- ----------
OPERATING EXPENSES
Selling,general and
administrative 5,759,123 4,329,022 2,681,072 1,440,578
Compensation - Options
(see Note 10) 142,284
Depreciation and
amortization 2,062,515 1,602,071 724,174 576,028
Interest (see Note 8) 894,275 2,282,864 4,640 817,021
---------- ---------- ---------- ----------
8,858,197 8,213,957 3,409,886 2,833,627
---------- ---------- ---------- ----------
LOSS FROM OPERATIONS (2,582,521) (2,686,585) (1,234,403) (1,097,242)
---------- ---------- ---------- ----------
OTHER INCOME/(EXPENSE)
Interest 12,177 18,512 2,119 5,839
Joint Venture (28,442) (28,442)
---------- ---------- ---------- ----------
(16,265) 18,512 (26,323) 5,839
---------- ---------- ---------- ----------
LOSS BEFORE EXTRAORDINARY
ITEM (2,598,786) (2,668,073) (1,260,726) (1,091,403)
EXTRAORDINARY ITEM
Loss on debt extinguishment 2,549,708
---------- ---------- ---------- ----------
NET LOSS ($5,148,494) ($2,668,073) ($1,260,726)($1,091,403)
========== ========== ========== ==========
Loss per common share
Loss before extraordinary
item ($1.32) ($2.37) ($0.32) ($0.72)
Extraordinary item ($0.61)
---------- ---------- ---------- ----------
Net loss ($1.93) ($2.37) ($0.32) ($0.72)
========== ========== ========== ==========
Weighted average number of
shares outstanding 4,152,348 1,123,536 4,442,241 1,521,176
========== ========== ========== ==========
See accompanying Notes to Consolidated Financial Statements.
-3-
<TABLE>
RESPONSE USA, INC. AND SUBSIDIARIES
Consolidated Statement of Stockholders' Equity
(Unaudited)
<CAPTION>
Preferred Stock Common Stock Unrealized
----------------- ------------------ Additional Holding Loss on
Number of Number of Paid-in Avaliable-For- Accumulated
Shares Amount Shares Amount Capital Sale Securities Deficit Total
----------------- ------------------ ----------- --------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance - July 1, 1996 7,500 $7,500,000 3,854,944 $30,840 $19,056,240 ($193,343) ($13,387,805) $13,005,932
Net loss for the nine
months ended March 31, 1997 (5,148,494) (5,148,494)
Unrealized holding loss on
available-for-sale securities (6,250) (6,250)
Conversion of convertible
subordinated promissory notes 11,110 89 44,843 44,932
Exercise of stock options
and warrants 162,100 1,297 477,838 479,135
Conversion of preferred
stock (610) (817,400) 190,338 1,522 579,768 207,400 (28,710)
Preferred stock deemed
dividends (532,494) (532,494)
Cancellation of common
stock held in escrow (50,000) (400) 400
Issuance of stock options 142,284 142,284
Stock issued in connection
with acquisitions 41,700 334 74,666 75,000
Investment in Joint Venture 1,094,164 8,753 3,291,247 3,300,000
Discount on convertible
preferred stock 2,550,000 (2,550,000)
----- ----------- ---------- ------- ----------- --------------- ----------- -----------
Balance - March 31, 1997 6,890 $9,232,600 5,304,356 $42,435 $23,667,286 ($199,593) ($21,411,393) $11,331,335
===== =========== ========== ======= =========== =============== =========== ===========
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
-4-
Response USA, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
March 31,
---------------------------
1997 1996
---------- ----------
CASH FLOW FROM OPERATING ACTIVITIES
Net loss ($5,148,494) ($2,668,073)
Adjustments to reconcile net loss to net
cash used in operating activities:
Amortization of monitoring contract costs 1,673,150 1,239,398
Depreciation and amortization of property
and equipment 389,366 326,272
Amortization of deferred financing costs
and debt discount 260,387 98,993
Loss on Joint Venture investment 28,442
Loss on sale of property and equipment 16,743
Gain on sale of monitoring contracts (91,663)
Issuance of common stock for consulting fees 8,125
Compensation expense in connection with the
issuance of stock options (see Note 10) 142,284
(Increase) decrease in accounts receivable
Trade 2,266 (764,971)
Net investment in sales-type leases 33,034 21,618
Decrease in notes receivable 68,873
Increase in inventory (179,704) (77,935)
Increase in prepaid expenses and other
current assets (103,151) (116,905)
(Increase) decrease in deposits (282) 24,487
Increase in accounts payable - Trade 213,939 42,596
Increase (decrease) in purchase holdbacks (51,719) 571,843
Decrease in accrued expenses and other
current liabilities (876,513) (356,756)
Increase in deferred revenue 342,321 236,891
------------- ------------
Net cash used in operating activities (3,257,931) (1,437,207)
------------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property and equipment 39,864
Purchase of property and equipment (525,823) (304,835)
Proceeds from sale of monitoring contracts 233,548
Purchase of monitoring contracts (3,550,806) (3,027,232)
Investment in Joint Venture (4,629)
Acquisitions (3,157,478)
------------- ------------
Net cash used in investing activities (4,041,394) (6,255,997)
------------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of preferred stock 7,500,000
Costs incurred in connection with the
issuance of preferred stock (1,012,449)
Proceeds from the exercise of stock options
and warrants 447,260 1,198,500
Proceeds from private placement 1,960,000
Proceeds from long-term debt
Notes payable 14,300,000 6,924,809
Capitalized lease obligations 43,933
Debt issue costs incurred 22,761 (286,750)
Principal payments on long-term debt
Notes payable (15,217,908) (1,430,599)
Capitalized lease obligations (65,364) (36,037)
------------- ------------
Net cash provided by financing activities 5,974,300 8,373,856
------------- ------------
NET INCREASE (DECREASE) IN CASH ($1,325,025) $680,652
CASH - BEGINNING 1,926,766 159,445
------------- ------------
CASH - ENDING $601,741 $840,097
============= ============
See accompanying Notes to Consolidated Financial Statements.
-5-
Response, USA, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (Continued)
(Unaudited)
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for
Interest $ 776,156 $1,982,828
Income Taxes $ 0 $ 0
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCIAL ACTIVITIES
During the nine months ended March 31, 1997 and 1996, convertible subordinated
promissory notes of $50,000 and $1,075,000, respectively, were converted to
common stock. The Company reduced deferred financing costs and additional
paid-in capital in the amount of $5,068 for 1996, in connection with the
conversion of the subordinated promissory notes.
During the nine months ended March 31, 1997 and 1996, long term notes payable
of $74,028 and $63,933, respectively, were incurred for the purchase of
property and equipment.
During the nine months ended March 31, 1997 and 1996, the Company reduced
monitoring contract costs and the corresponding purchase holdback liability
in the amount of $294,652 and $776,038, respectively. The company issued
14,500 shares of its common stock valued at $70,282, as payment for purchase
holdback liabilities for 1996.
During the nine months ended March 31, 1997 and 1996, the Company issued
25,000 and 152,858 shares of its common stock, valued at $75,000 and $750,276,
respectively, in connection with the purchase of monitoring contracts.
During the nine months ended March 31, 1997 and 1996, the Company issued
16,700 and 61,941 shares of its common stock, respectively, in connection
with its acquisition of monitoring contracts, pursuant to a guarantee of
stock valuation.
During the nine months ended March 31, 1997, the Company reduced accrued
expenses by $31,875 in connection with the exercise of warrants.
During the nine months ended March 31, 1997, the Company reduced the put
obligation payable and the corresponding charge to deferred financing costs
by $2,580,338.
During the nine months ended March 31, 1997, the Company recorded accretion to
the preferred stock account of $2,550,000, with a corresponding charge to
accumulated deficit (see Note 9).
During the nine months ended March 31, 1997, the Company recorded a deemed
dividend payable of $532,494 in connection with the preferred stock agreement
(see Note 9).
See accompanying Notes to Consolidated Financial Statements.
-6-
Response, USA, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (Continued)
(Unaudited)
During the nine months ended March 31, 1997, $610,000 of preferred stock and
$8,740 in deemed dividends payable were converted to 190,338 shares of common
stock. As a result, the Company reduced the accretion to the preferred stock
and reduced accumulated deficit in the amount of $207,400.
In March 1997, The Company issued 1,094,164 shares of its common stock, valued
at $3.3 million in connection with a Joint Venture (see Note 5 of Notes to
Consolidated Financial Statements).
During the nine months ended March 31, 1997, capitalized lease obligations of
$143,100 were incurred for the acquisition of property and equipment.
During the nine months ended March 31, 1997, the Company reduced accounts
receivable and increased monitoring contract costs in the amount of $154,570,
in connection with the purchase of monitoring contracts.
During the nine months ended March 31, 1996, the Company issued 2,000 shares
of its common stock, valued at $8,125 as payment for consulting services.
During the nine months ended March 31, 1996, the Company issued 32,000 shares
of its common stock, valued at $147,200 as payment on a note payable incurred
in connection with its acquisition of ERS.
See accompanying Notes to Consolidated Financial Statements.
-7-
Response, USA, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
March 31, 1997
(Unaudited)
1. Basis of Presentation
The accompanying interim balance sheet as of March 31, 1997, and the related
statements of operations, stockholders' equity and cash flows have been
prepared by management of the Company and are in conformity with generally
accepted accounting principles. In the opinion of management, all adjustments,
comprising normal recurring accruals necessary for a fair presentation of the
results of the Company's operations, are included.
These financial statements should be read in conjunction with the Company's
annual financial statements.
2. Marketable Securities
The Company's investments in marketable securities have been categorized as
available-for-sale and are stated at fair value. Realized gains and losses,
determined using the specific identification method, are included in opera-
tions;unrealized holding gains and losses are reported as a separate component
of stockholders' equity.
Marketable securities consist of common stock. At March 31, 1997, the cost of
these securities was $293,343, and gross unrealized losses were $199,593.
3. Inventory
March 31, June 30,
1997 1996
--------- --------
(Unaudited)
Raw Materials $ 321,832 $ 145,098
Finished Goods 510,423 507,453
--------- --------
$ 832,255 $ 652,551
========= ========
-8-
Response, USA, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
March 31, 1997
(Unaudited)
4. Acquisitions
On March 27, 1997, the Company completed the acquisition of all of the out-
standing common stock of Reliable-Hawk, Inc (RHI), a NJ corporation, after
giving effect to RHI's distribution to its stockholders of all of its net
assets other than monitoring and service contracts. Reliable-Hawk, Inc. is
engaged in the installation, servicing and monitoring of electronic security
systems. In consideration of the acquisition with a cost of $1,718,181, the
Company paid $1,469,503 in cash, incurred acquisition costs of $10,400,
recorded purchase holdbacks of $163,278, and issued 25,000 shares of its
common stock valued at $75,000.
The following represents total assets purchased and liabilities assumed:
Assets
Monitoring contracts $1,707,781
Acquisition costs 10,400
---------
$1,718,181
=========
During the nine months ended March 31, 1997, the Company purchased additional
monitoring contracts totalling $1,907,623. As consideration, the Company paid
$1,517,410 in cash, incurred acquisition costs of $283,645, and recorded
purchase holdbacks of $106,568.
5. Investment in Joint Venture
On March 4, 1997 Response USA, Inc. (USA) entered into a purchase agreement
with BKR, Inc. (BKR), a Nevada corporation and Healthlink, Ltd. (HL), a Nevada
limited liability company. The parties have agreed to the purchase by USA of a
50% interest in the assets of BKR, the contribution of BKR's remaining 50%
interest in the assets to HL and the contribution of USA's 50% interest in
BKR's assets to HL. Healthlink Ltd. is engaged in the sale and monitoring of
personal emergency response systems, (PERS) to the general public primarily
through national retail and pharmacy chains. In consideration of the Joint
Venture, the Company issued 1,094,164 shares of its common stock, valued at
$3.3 million, to BKR for their 50% interest in Healthlink, Ltd.
-9-
Response, USA, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
March 31, 1997
(Unaudited)
6. Loss Per Common Share
For the three month and nine month periods ended March 31, 1997 and 1996, loss
per common share is based solely on the weighted average number of common
shares outstanding, because the effect of common stock equivalents and other
securities is antidilutive. The net loss, for 1997, was adjusted for accretion
and deemed dividends on the preferred stock (see Note 9) in the computation of
the loss per common share.
7. Purchase Holdbacks
The company records Purchase Holdbacks, in connection with its acquisitions of
monitoring contracts, as a liability for delinquent accounts and for future
cancellations within an agreed upon time period. Monitoring contract costs and
the corresponding purchase holdback liabilities are reduced for delinquent
accounts and future cancellations as specified in each agreement.
8. Long-Term Notes Payable
Equipment Financing
- -------------------
Payable in monthly installments aggregating $5,329 including
interest at rates ranging from 3.90% to 11.83%; final payments
due April, 1997 through March, 2000;collateralized by related
equipment. $101,475
Reorganization Debt
- -------------------
As part of the 1990 plan of reorganization of a 1987 bankruptcy,
the U.S. Bankruptcy Court approved a 30.5% settlement on the
total unsecured claims submitted; payments are due March 1 of
every year, as follows: 3% ($86,817) each year--1998 through
2000; interest imputed at 14%; net of imputed interest of $58,894. 201,557
Federal priority tax claims payable in annual installments of
$2,211 through March, 1999, and $1,896 thereafter. 10,109
-10-
Response, USA, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
March 31, 1997
(Unaudited)
8. Long-Term Notes Payable (continued)
Convertible Subordinated Promissory Notes
- -----------------------------------------
5% convertible subordinated promissory notes due
November 30, 1996. 62,500
Line of Credit Agreement
- ------------------------
Note Payable with interest only due through June 30, 2000 at
prime plus 1-3/4% on the outstanding loan balance; a commitment
fee of .5% is payable on the average daily unused credit;
collateralized by all assets of the Company. 11,300,000
__________
11,675,641
Less Current Portion 166,009
----------
$ 11,509,632
==========
On June 30, 1996, the Company entered into a four-year $15,000,000 revolving
bank line of credit agreement. Loans outstanding bear interest at prime plus
1-3/4%, are collateralized by all assets of the Company, and are subject to
certain restrictive covenants. The agreement also provides for a commitment
fee, payable monthly in arrears, of .5% based on the average daily unused
credit.
-11-
Response, USA, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
March 31, 1997
(Unaudited)
8. Long-Term Notes Payable (continued)
In connection with the line of credit agreement, the Company issued warrants to
an affiliate of the bank to purchase 1,032,135 shares of the Company's common
stock at an exercise price of $3.25. The warrants expire June 30, 2006.
Under the terms of the agreement, the Company may be required to purchase the
warrants (put obligation) upon 10 days' notice, at a price equal to the excess
of the market price on the delivery date over the exercise price ($3.25). As
of June 30, 1996, the value of the warrants were estimated at $5.75 per share
of common stock based on a discounted market value of the average price of the
Company's common stock, resulting in a put obligation payable of $2,580,338,
with a corresponding charge to deferred financing costs. At March 31, 1997,
the value of the warrants were estimated at $2.25 per share of common stock.
As a result, the Company reduced the put obligation payable by $2,580,338 and
the corresponding deferred financing costs by $2,134,823 and interest expense
by $445,515.
Debt issue costs associated with this agreement are being amortized using the
effective interest method over the four-year term of the agreement.
With the proceeds received from the issuance of preferred stock (see Note 9)
and a $10,500,000 advance on July 1, 1996, from a line of credit, the Company
paid off notes payable with balances aggregating $12,072,668 at June 30, 1996
plus a prepayment penalty. The prepayment penalty of $2,415,877 and unamor-
tized deferred financing costs of $133,831 associated with the notes paid have
been recorded as an extraordinary item during the quarter ended September 30,
1996.
9. Preferred Stock
On July 2, 1996, the Company issued 7,500 shares of 1996 Series A Convertible
Preferred Stock with a par value of $1,000 per share. (The Company recorded a
preferred stock subscription receivable of $6,525,000 at June 30, 1996; which
was received on July 2, 1996.) The holders of the preferred stock are not
entitled to receive dividends and have no voting rights. The preferred shares
are convertible into a number of common shares determined by using a formula
of "the premium plus $1,000, divided by the conversion price." The premium,
as defined, equates to an annual 10% deemed dividend, and the conversion price
is equal to the lesser of $5.00 or 80% of the average closing bid price of the
Company's common stock for the five days immediately preceding the date of
conversion.
-12-
Response, USA, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
March 31, 1997
(Unaudited)
9. Preferred Stock (continued)
Up to 50% of the preferred stock may be converted beginning 45 days after
closing, and the balance may be converted beginning 70 days after closing.
After June 1, 1999, the Company may require conversion.
The Company, for the quarter ended September 30, 1996, recorded accretion to
the preferred stock account of $2,550,000, representing the difference between
the value of common stock into which the preferred stock is convertible and
the issue price of the preferred stock on June 30, 1996, up to eligibility
for conversion of the preferred stock, as described above, with a corresponding
increase in accumulated deficit.
The Company, for the nine months ended March 31, 1997, recorded a deemed
dividend of $532,494.
During the nine months ended March 31, 1997, 610 shares of Series A Convertible
Preferred Stock, with a value of $610,000, and $8,740 in deemed dividends
payable were converted to 190,338 shares of common stock. As a result, the
Company reduced the accretion to the preferred stock and reduced the
accumulated deficit in the amount of $207,400.
On September 30, 1996, the Company suspended conversion of its 1996 Series A
Convertible Preferred Stock. The Company intends to re-negotiate the terms and
conditions of the Preferred Stock (See Part II, Item 1. Legal Proceedings).
-13-
Response, USA, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
March 31, 1997
(Unaudited)
10. Common Stock and Additional Paid-in Capital
During the nine months ended March 31, 1997, 11,110 shares of common stock,
with a value of $50,000, were issued in connection with the conversion of 10%
convertible subordinated promissory notes.
During the nine months ended March 31, 1997, 124,500 shares of common stock
were issued as a result of the exercise of warrants and stock options. The
Company recorded common stock of $996 and additional paid-in capital of
$474,379.
The Company, on December 10, 1996, cancelled 50,000 shares of common stock held
in escrow, in connection with an acquisition.
On December 16, 1996, the Company granted 56,350 Non-Qualified Stock Options
(NQO) at $.10 per share, expiring November 27, 2001 to employees. As a result,
the Company recorded compensation expense and increased additional paid-in
capital in the amount of $142,284. In addition, the Company granted 20,500
Non-Qualified Stock Options and 8,500 Incentive Stock Options to employees at
$2.625, the prevailing market price, expiring November 27, 2001. As of
March 31, 1997, 37,600 NQO at $.10 were exercised. The Company recorded common
stock of $301 and additional paid in capital of $3,459.
During March 1997, The Company issued 25,000 shares of its common stock in
connection with an acquisition of monitoring contracts. As a result, The
Company recorded common stock of $200 and additional paid-in capital of
$74,800.
The Company, in March 1997, issued 16,700 shares of its common stock, pursuant
to a guarantee of stock valuation in connection with an acquisition.
In March 1997, The Company issued 1,094,164 shares of its common stock, valued
at $3.3 million in connection with a Joint Venture (see Note 5 of Notes to
Consolidated Financial Statements).
-14-
Response, USA, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
March 31, 1997
(Unaudited)
10. Common Stock and Additional Paid in Capital (continued)
The following is a summary of warrant activity:
Number of Exercise Price
Shares Per Share
--------- ------------
Warrants outstanding at June 30, 1996 3,114,430 $2.50--$8.00
Warrants exercised in connection with
10% Notes--Class C (30,000) $3.875--$6.00
Warrants exercised in connection with
12% Notes--Class A (92,000) $3.25
--------- ------------
Warrants outstanding at March 31, 1997 2,992,430 $2.50--$8.00
========= ============
11. Commitments and Contingencies
Contingencies
- -------------
In the normal course of business, the Company is subject to litigation, none of
which is expected to have a material effect on the consolidated financial
position, results of operations or cash flows of the Company.
As part of certain acquisitions, the Company has guaranteed the value of its
common stock at various prices ranging from $3.01 to $17.34 [for periods
expiring at various dates through March, 2000]. As of March 31, 1997, the
Company's contingent liabilities under these agreements aggregated approximate-
ly $196,200, which may be settled in cash or by the issuance of common stock;
to the extent that settlement is in common stock, the holders are entitled to
piggy-back registration rights and the Company has filed a registration state-
ment for 114,102 shares of common stock which are expected to be sufficient to
satisfy the Company's obligation.
-15-
Response USA, Inc. and Subsidiaries
ITEM 2. MANAGEMENT'S DISCUSSION ON AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
Forward Looking Information
The Private Securities Litigation Reform Act of 1995 (the "Reform Act")
provides a "safe harbor" for forward-looking statements to encourage
companies to provide prospective information about their companies, so long
as those statements are identified as forward-looking and are accompanied by
meaningful cautionary statements identifying important factors that would
cause actual results to differ materially from those discussed in the
statement. The Company desires to take advantage of the "safe harbor"
provisions of the Reform Act. Except for the historical information contained
herein, the matters discussed in this Form 10-QSB quarterly report are forward-
looking statements which involve risks and uncertainties. Although the Company
believes that the expectations reflected in such forward-looking statements are
based upon reasonable assumptions, it can give no assurance that its expecta-
tions will be achieved. Important factors that could cause actual results to
differ materially from the Company's expectations are disclosed in conjunction
with the forward-looking statements or elsewhere herein.
Liquidity and Capital Resources
On June 30, 1996 through July 3, 1996, the Company completed a complete
restructuring of its long-term debt. The Company obtained a $15.0 million
dollar revolving credit facility from Mellon Bank, N.A. and issued $7.5 million
dollars of its 1996 Series A Convertible Preferred Stock to institutional
and individual domestic and foreign investors. The proceeds of the financing
were utilized to repay the Company's existing long-term indebtedness and will
result in a substantial decrease of the Company's borrowing costs. As of
March 31, 1997, the Company has available on its revolving credit facility the
amount of $3.7 million dollars. The credit facility bears interest at the
Prime Rate, plus 1 3/4 %. The restructuring resulted in an extraordinary charge
of $2,549,708 for the first quarter ended September 30, 1996 for early
extinguishment of debt. The Company's working capital decreased by $6.9 million
from $6.0 million to a working capital deficiency of $.9 million at March 31,
1997. On June 30, 1996, the Company recorded a preferred stock subscription
receivable for $6,525,000, from a Series-A Convertible Preferred Stock
subscribed with a par value of $7,500,000, net of related placement fees of
$975,000 paid from the proceeds at the closing. On July 1, 1996 the Company
-16-
Response USA, Inc. and Subsidiaries
Liquidity and Capital Resources (continued)
entered into a four-year $15 million revolving bank line of credit agreement
(see Note 8 of Notes to the Consolidated Financial Statements). With the
proceeds received from the issuance of Preferred Stock on July 2, 1996 and
$10,500,000 from the revolving line of credit, the Company paid off notes
payable used to finance its growth through acquisitions, with balances
aggregating $12.1 million. The Company believes its cash flows from operations
will be sufficient to fund the Company's interest payments on its debt and
capital expenditures, which are the Company's principal uses of cash other than
the acquisitions of portfolios of subscriber accounts.
Net cash used in operating activities was $3.3 million. A net loss of
$5,148,494 which included depreciation and amortization of $2,062,515 and
prepayment fees on early extinguishment of debt of $2,549,708, were the
primary reasons for cash used in operating activities. Other significant
changes included changes in inventory, accounts payable trade, accrued expenses
and deferred revenue. The increase in inventory of $180,000 is attributable
to an increase in future orders for PERS by both private label resellers and
home healthcare agencies. Accounts Payable and accrued expenses decreased by
$660,000 primarily due to costs related to both the Mellon Bank, N.A. Line of
Credit Agreement (see Note 8) and the issuance of Preferred Stock (see Note 9)
having been accrued at June 30, 1996. Deferred revenue increased as a result
of the acquisition of approximately 5,200 accounts over the past twelve months
and the continued success of the Company's extended warranty program.
-17-
Response USA, Inc. and Subsidiaries
Liquidity and Capital Resources (Continued)
Net cash used in investing activities for the nine months ended March 31, 1997
was $4,041,394. The purchase of monitoring contracts during the nine months
ended March 31, 1997 accounted for $3.6 million of the cash used in investing
activities. Other investing activity included the purchase of property and
equipment of $525,823 (including equipment used for rentals in the amount of
$119,340), which was offset by the proceeds from the sale of equipment of
$39,894, and costs incurred in connection with the Joint Venture of $4,629.
Net cash provided by financing activities was $5,974,300 for the nine month
period ended March 31, 1997. Net proceeds of $6,487,551 were received from
the issuance of Preferred Stock in July 1996. Proceeds from the exercise of
stock options and warrants totalled $447,260. Net proceeds received from a
line of credit (see Note 8 to Consolidated Financial Statements) along with the
proceeds from the Preferred Stock issuance totalling $20.8 million were used to
pay off notes payable totalling $12.1 million and the purchase of monitoring
contracts. Principal payments on long-term debt, excluding notes payable paid
off with the line of credit and preferred stock proceeds, totalling $3,210,604,
were made during the nine months ended March 31, 1997.
The Company's wholly-owned subsidiary, Response Ability Systems, Inc. (RAS)
filed a petition for reorganization under Chapter 11 of the Federal Bankruptcy
Act in October 1987. RAS' Plan of Reorganization became effective in February
1990. As of March 31, 1997, deferred payment obligations to such pre-reorgani-
zation creditors totalled $260,451, which is payable in varying installments
through the year 2000.
The Company has no material commitments for capital expenditures during the
next twelve months and believes that its current cash and working capital
position and future cash flow from operations will be sufficient to meet its
cash and working capital needs for twelve months.
The Company intends to use borrowings under the revolving bank line of credit
(see Note 8--Notes to Consolidated Financial Statements) together with the
remaining cash flow from operations to continue to acquire monitoring
contracts. Additional funds beyond those currently available may be required
to continue the acquisition program, and there can be no assurance that the
Company will be able to obtain such financing.
-18-
Response USA, Inc. and Subsidiaries
Results of Operations
A majority of the Company's revenues are derived from recurring payments for
the monitoring, rental and servicing of both electronic security systems and
PERS, pursuant to contracts with initial terms up to five years. Service
revenues are derived from payments under extended warranty contracts and for
service calls performed on a time and material basis. The remainder of the
Company's revenues are generated from the sale and installation of security
systems and PERS. Monitoring and service revenues are recognized as the
service is provided. Sale and installation revenues are recognized when the
required work is completed. All direct installation costs, which include
materials, labor and installation overhead, and selling and marketing costs are
expensed in the period incurred. Alarm monitoring and rental services generate
significantly higher gross margins than do the other services provided by the
Company.
Operating revenues increased by $1,280,000 (16%) and $794,000 (31%) for the
nine months and three months ended March 31, 1997 as compared to the same
periods ended March 31, 1996. Product sales accounted for an increase of
$154,000 (8%) and $352,000 (69%) for the nine months and three months ended
March 31, 1997. The increase in products sales for the nine months was
primarily due to the increase in revenues from the sale of personal emergency
response systems (PERS) to private label wholesalers and home healthcare
agencies totalling $408,000. This increase was offset by a decrease in sales
of electronic security systems of $240,000. The increase in product sales for
the quarter ended March 31, 1997 as compared to the same period ended March 31,
1996 was due to the increase in sales of personal emergency response systems
to both home healthcare agencies and private label wholesalers totalling
$169,000 and an increase in sales of electronic security systems of $189,000.
The significant growth in monitoring and service revenues of $1,169,000 (25%)
and $472,000 (30%) for the nine and three month periods ended March 31, 1997,
as compared to the same periods ended March 31, 1996, were due to the
acquisition of 5,200 monitoring contracts over the past twelve months and the
success of the Company's extended warranty program. Finance and rental income
declined by $43,000 (3%) and $30,000 (7%) for the nine and three months ended
March 31, 1997 as compared to the same periods ended March 31, 1996.
In December 1996, the Company entered into an Agreement granting exclusive
worldwide distribution rights to Wanderwatch, a state of the art communications
system designed to assist in the care of Alzheimer's afflicted patients. The
Wanderwatch system provides around-the-clock monitoring of patients that may
wander due to Alzheimer's Disease, Dementia, Autism, or Head Injury. It
enables the Company to distribute a new product through its existing network of
subscribers, hospitals, home healthcare agencies, and its dealer network. The
Company will monitor the Wanderwatch System at its central monitoring station.
-19-
Response USA, Inc. and Subsidiaries
Results of Operations (continued)
On March 4, 1997, the Company entered into a joint venture with BKR, Inc., to
form Healthlink, Ltd. Healthlink will sell an affordable Emergency Medical
Dispatch System through national retail and pharmacy chains. It currently has
a commitment for a national roll out from one of the largest national retail
chains in the United States. Healthlink has been in development for
approximately two years, and has been successfully test marketed using an
innovative marketing program. Healthlink anticipates having its product in
approximately 10,000 stores within the next 24 months. The Company anticpates
Healthlink will become a national brand name associated with consumer products
marketed at retail. Response USA, Inc. will provide all of the monitoring and
customer support services for Healthlink subscribers and owns 50% of the newly
formed company.
The Company is in the process of developing additional cooperative marketing
programs in which the Company's PERS products are distributed in conjunction
with another vendor's products or utilizing other marketing methods developed
by a co-participant specializing in direct sales to the consumer or home
healthcare agency. The Company currently distributes its PERS through
approximately 3,000 pharmacy departments of national retail chains. The
Company will continue to acquire monitoring customers from other security
system companies. The Company believes the foregoing will result in a
substantial increase in monitoring and service revenues.
The Gross Profit Margin (GPM), as a percentage of sales, increased from 68.8%
to 69.7% and from 68.5% to 71.9% for the nine and three months ended March 31,
1997 as compared to the same periods ended March 31, 1996, respectively. To
calculate the gross profit margin as a percentage of revenues, the Company
added back an inventory adjustment of $217,000 for 1997. The inventory
adjustment was primarily due to the reduction of valuation of parts used in
the repair of outdated electronic security systems acquired from other alarm
dealers. Services and rental costs of sales increased slightly, for both the
nine and three months ended March 31, 1997 as compared to 1996, due to an
increase in the monitoring charges per subscriber. The decline in GPM from
services and rentals was offset by significant increases in GPM's on product
sales of 9% and 20% for the same nine and three month periods ended March 31,
1997 as compared to the same periods ended March 31, 1996, respectively. The
increase in the GPM's on product sales is due to increased revenues derived
from the installation of electronic security systems to commercial accounts as
opposed to residential customers and the utilization of in-house labor in lieu
of subcontractors for the installation of electronic security systems.
Selling, general and administrative expenses grew to $5.0 million and $1.7
million for the nine and three months ended March 31, 1997, which represents
increases of $700,000 (16%) and $300,000 (21%), over selling, general and
administrative expenses for the same periods ended March 31, 1996. Selling,
general and administrative expenses, as a percentage of total operating
revenues, decreased from 54% and 57% to 53% and 53%, for the nine and three
month periods ended March 31, 1997 and 1996, respectively. To calculate
-20-
Response USA, Inc. and Subsidiaries
Results of Operations (continued)
both the increase in SG&A expense and the decrease in SG&A, as a percentage
of operating revenues, the Company reduced expenses for nonrecurring charges
totaling approximately $900,000. The nonrecurring charges include direct write-
offs of accounts receivable of $228,000, an increase in the Company's allowance
for doubtful accounts of $322,000, engineering, development and licensing costs
of approximately $50,000, approximately $200,000 in professional and legal
fees attributable primarily to the litigation involving the Company's 1996
Series A Preferred Stock (See Part II Item 1. Legal Proceedings), and
approximately $100,000 in due diligence costs associated with loss from
acquisition terminations and amortized transition costs. Transition costs
amortized for the nine and three month periods ended March 31, 1997 and 1996,
decreased by $452,000 and $293,000 respectively. The decrease in selling,
general and administrative expenses of 1% and 4%, for the nine and three months
ended March 31, 1997 as compared to the same periods ended for 1996, along with
19% and 22% increases in monthly recurring revenues between comparable periods,
reflect efficiencies realized in the Company's corporate offices. The Company
anticipates that its current level of selling, general and administrative
expenses, as a percentage of sales, will continue to decrease as a result of
the Company's operating revenues increasing substantially due to increases in
monitoring and service revenues.
Amortization and depreciation expenses increased by $460,000 and $148,000 for
the nine and three months ended March 31, 1997, respectively. The increases
in amortization expense is the result of the Company's acquisitions of
approximately 5,200 monitoring contracts during the past twelve months.
Interest expense decreased by $944,000 and $367,000 for the nine and three
month periods ended March 31, 1997, as compared to the same periods ended
March 31, 1996. To calculate the decrease in interest expense, the Company
added back $445,000 relating to the reversal of debt issue costs amortization,
in connection with a change in estimate of the put obligation payable (see
Note 8-- Notes to Consolidated Financial Statements). In July 1996, the Company
paid off notes payable with balances aggregating $12,072,688 with proceeds
received from the issuance of preferred stock (see Note 9) and an advance from
the line of credit (see Note 8), which resulted in a substantial decrease in
the Company's borrowing costs.
The net losses for the nine and three month periods ended March 31, 1997 were
$1.9 million and $600,000 (excluding an extraordinary item for early
extinguishment of debt of $2.5 million and nonrecurring charges totalling
$672,000), or ($1.16) and ($.17) per share based on 4,152,348 and 4,442,241
shares outstanding (after effecting net loss for accretion and deemed dividends
on preferred stock totalling $2,875,000), as compared to net losses of $2.7
million and $1.1 million or ($2.37) and ($.72) per share based on 1,123,536
-21-
Response USA, Inc. and Subsidiaries
Results of Operations (continued)
and 1,521,176 shares outstanding, for the nine and three months ended March 31,
1996. Earnings before interest, taxes, depreciation and amortization (EBITDA),
excluding the loss on debt extinguishment and nonrecurring charges, improved
from $1.2 million to $1.6 million and from $296,000 to $583,000 for the nine
and three months ended March 31, 1996 and 1997, respectively.
-22-
Response USA, Inc. and Subsidiaries
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Response USA, Inc. (the "Company"), effective September 30, 1996, suspended
conversion of its 1996 Series A Convertible Preferred Stock ("Preferred
Stock").
On January 2, 1997, Lake Management LDC and KA Investments LDC, each holders
of the Preferred Stock, filed a complaint in the Court of Chancery of the
State of Delaware against the Company challenging among other things, the
Company's decision to suspend conversion and seeking, among other things,
specific performance under a Certificate of Designation to convert their
Preferred Stock to Common Stock of the Company. The case is captioned Lake
Management LDC and KA Investments LDC v. Response USA, Inc., Civil Action No.
15449. On February 10, 1997, the Company responded to the complaint by filing
an Answer, Defenses and Counterclaim. A Reply to the Counterclaim was filed
on March 3, 1997.
On February 18, 1997, Halifax Fund, L.P., a holder of the Preferred Stock,
filed a Complaint, a Motion for a Preliminary Injunction and a Motion for
Expediting Proceedings in the Court of Chancery of the State of Delaware
against the Company also challenging, among other things, the Company's
decision to suspend conversion and seeking, among other things, specific per-
formance under a Certificate of Designation to convert its Preferred Stock to
Common Stock, No. 15553. On March 5, 1997, the court held a conference and
denied plaintiff's request for a hearing on plaintiff's motion for a
preliminary injunction. On March 11, 1997, plaintiff filed a second Motion for
a Preliminary Injunction. The Court held a telephonic conference on March 12,
1997 and denied plaintiff's request on its second preliminary injunction
motion. Plaintiff filed a motion for summary judgment, and the Court held
a hearing on that motion on May 13, 1997.
On May 13, 1997, the Delaware Court of Chancery granted partial summary
judgement to Halifax solely with respect to their right to convert Preferred
Stock into Common Stock. Subsequent to the hearing, Response USA, Inc., reached
an agreement in principle with Halifax Fund, L.P., a holder of 1,000 shares of
the Company's Series A Convertible Preferred Stock (14.5% of the outstanding
shares), which provides for the conversion of the Preferred Stock and orderly
sale of the underlying common stock to certain unaffiliated purchasers. The
agreement with Halifax is subject to the completion of satisfactory documenta-
tion and performance of all obligations thereunder.
On May 13, 1997, the Company also announced that Holders of the requisite
number of shares of Preferred Stock (other than Halifax), have expressed
agreement, either orally or in writing, with the Company's proposed modifica-
tion to the terms of the Preferred Stock, which provides that the Company shall
-23-
Response USA, Inc. and Subsidiaries
PART II. OTHER INFORMATION
Item 1. Legal Proceedings (continued)
have the right to redeem the Preferred Stock at any time through November 30,
1997, for cash in an amount equal to 135% of the original purchase price,
together with interest at the rate of 12% per annum for the period from May 12,
1997, through the date of repayment. According to the terms of the proposal,
after November 30, 1997, any outstanding shares of Preferred Stock may be
converted in the discretion of the holder based upon a value of the Preferred
Stock equal to 120% of the holder's investment. The Company believes that a
formal consent and approval of the modification to the terms of the Preferred
Stock (which includes the foregoing terms), will be achieved and will be
binding upon all holders of Preferred Stock.
Item 2. Changes in Securities - None.
Item 3. Defaults Upon Senior Securities - None.
Item 4. Submission of Matters to a Vote of Security Holders - None.
Item 5. Other Information - None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits -
(11) Computation of Loss per Common Share
(b) Report on Form 8-K - Filed on March 20, 1997.
-24-
Response USA, Inc. and Subsidiaries
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Company has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Response USA, Inc. May 14, 1997
------------------ ------------
Registrant
By:/S/Richard M. Brooks
--------------------
Richard M. Brooks
President and Chief Executive and Financial Officer
Principal Financial Officer
Principal Accounting Officer
By:/S/Ronald A. Feldman
--------------------
Ronald A. Feldman
Chief Operating Officer
Vice President, Secretary
Treasurer
-25-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> MAR-31-1997
<CASH> 602
<SECURITIES> 94
<RECEIVABLES> 2400
<ALLOWANCES> 649
<INVENTORY> 832
<CURRENT-ASSETS> 3237
<PP&E> 3764
<DEPRECIATION> 2206
<TOTAL-ASSETS> 27689
<CURRENT-LIABILITIES> 4131
<BONDS> 0
0
9233
<COMMON> 42
<OTHER-SE> 2056
<TOTAL-LIABILITY-AND-EQUITY> 27689
<SALES> 2138
<TOTAL-REVENUES> 9315
<CGS> 1526
<TOTAL-COSTS> 3039
<OTHER-EXPENSES> 7964
<LOSS-PROVISION> 649
<INTEREST-EXPENSE> 894
<INCOME-PRETAX> (2583)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2583)
<DISCONTINUED> 0
<EXTRAORDINARY> (2550)
<CHANGES> 0
<NET-INCOME> (5148)
<EPS-PRIMARY> (1.93)
<EPS-DILUTED> (1.93)
</TABLE>
<TABLE>
RESPONSE USA, INC.
EARNINGS PER SHARE
For Nine Months Ended March 31, 1997
<CAPTION>
TOTAL WEIGHTED TOTAL AVERAGE
DATE DATE EXERCISE DAYS SHARES AVERAGE PROCEEDS PROCEEDS
ISSUED EXPIRE TRANSACTION PRICE O/S ISSUED # SHARES OBTAINABLE OBTAINABLE
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OUTSTANDING SHARES:
01-Jul-90 ORIGINAL ISSUANCE 274 37,922 37,922
17-Aug-90 PURCHASE OF SYSTEMS 274 6,656 6,656
13-May-91 ISSUED FOR ASSETS 274 358 358
30-Oct-92 PUBLIC OFFERING 274 80,000 80,000
30-Oct-92 BRIDGE LOAN SHARES ISSUED 274 3,450 3,450
25-Nov-92 OVER-ALLOTMENT ISSUANCE 274 12,000 12,000
30-Jun-93 WARRANTS EXERCISED - GRANTED 2-16-93 0.008 274 5,000 5,000
30-Jun-93 RESTRICTED OPTIONS EXERCISED 0.008 274 1,429 1,429
30-Jun-93 RESTRICTED OPTIONS EXERCISED 0.008 274 136 136
30-Jun-93 RESTRICTED OPTIONS EXERCISED 0.008 274 704 704
30-Jun-93 RESTRICTED OPTIONS EXERCISED 0.008 274 1,250 1,250
30-Jun-93 ADDITIONAL OPTIONS 0.008 274 5,893 5,893
12-May-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 3,572 3,572
17-May-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 6,786 6,786
21-May-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 715 715
25-May-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 1,429 1,429
01-Jun-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 1,072 1,072
02-Jun-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 6,072 6,072
18-Jun-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 5,714 5,714
21-Jun-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 2,143 2,143
23-Jun-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 2,858 2,858
25-Jun-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 1,072 1,072
30-Jun-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 2,143 2,143
06-Jul-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 358 358
09-Jul-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 7,858 7,858
20-Jul-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 1,429 1,429
29-Jul-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 2,858 2,858
04-Aug-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 1,072 1,072
05-Aug-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 358 358
13-Aug-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 1,072 1,072
20-Aug-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 2,143 2,143
25-Aug-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 715 715
07-Sep-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 1,072 1,072
18-Oct-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 2,143 2,143
19-Oct-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 1,429 1,429
28-Oct-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 2,143 2,143
03-Nov-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 2,500 2,500
24-Nov-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 1,429 1,429
31-Jan-94 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 715 715
21-Mar-94 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 715 715
29-Mar-94 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 375 375
11-Mar-96 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 14,286 14,286
22-Mar-96 CONVERSION OF CONVERTIBLE NOTES #1/#2 3.50 274 35,715 35,715
27-Mar-96 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 7,143 7,143
09-Apr-96 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 3,572 3,572
09-Apr-96 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 3,572 3,572
26-Apr-96 CONVERSION OF CONVERTIBLE NOTES #1 4.50 274 2,778 2,778
10-Jun-96 CONVERSION OF CONVERTIBLE NOTES #1/#2 1.50 274 67,553 67,553
12-Jun-96 CONVERSION OF CONVERTIBLE NOTES #1 3.50 274 3,571 3,571
14-Jun-96 CONVERSION OF CONVERTIBLE NOTES #1 5.75 274 4,348 4,348
07-Jul-93 PRIVATE PLACEMENT 2.50 274 60,000 60,000
09-Jul-93 PRIVATE PLACEMENT 0.008 274 15,000 15,000
04-Mar-94 PURCHASE UVA/NSF (ORIG) 1.73 274 31,893 31,893
04-Mar-94 PURCHASE UVA/NSF (ORIG) 1.73 274 11,676 11,676
24-Feb-95 PURCHASE UVA/NSF - GUARANTEE 0.375 274 3,126 3,126
24-Feb-95 PURCHASE UVA/NSF - GUARANTEE 0.375 274 7,838 7,838
24-Feb-95 PURCHASE UVA/NSF - GUARANTEE 0.375 274 22,199 22,199
30-Jun-95 PURCHASE UVA/NSF - GUARANTEE 0.40625 274 29,940 29,940
30-Jun-95 PURCHASE UVA/NSF - GUARANTEE 0.40625 274 27,823 27,823
30-Jun-95 PURCHASE UVA/NSF - GUARANTEE 0.40625 274 3,650 3,650
30-Jun-95 PURCHASE UVA/NSF - GUARANTEE 0.40625 274 4,717 4,717
30-Jun-95 PURCHASE UVA/NSF - GUARANTEE 0.40625 274 7,599 7,599
30-Jun-95 PURCHASE UVA/NSF - GUARANTEE 0.40625 274 11,735 11,735
30-Jun-95 PURCHASE UVA/NSF - GUARANTEE 0.40625 274 1,378 1,378
29-Dec-95 PURCHASE UVA/NSF - GUARANTEE (BB) 3.75 274 4,000 4,000
02-Feb-96 PURCHASE UVA/NSF - GUARANTEE 5.00 274 9,177 9,177
02-Feb-96 PURCHASE UVA/NSF - GUARANTEE 5.00 274 9,177 9,177
12-Mar-96 PURCHASE UVA/NSF - GUARANTEE 4.39 274 6,200 6,200
12-Mar-96 PURCHASE UVA/NSF - GUARANTEE 4.39 274 6,100 6,100
12-Mar-96 PURCHASE UVA/NSF - GUARANTEE 4.42 274 4,200 4,200
12-Mar-96 PURCHASE UVA/NSF - GUARANTEE 4.32 274 3,225 3,225
31-May-96 PURCHASE UVA/NSF - GUARANTEE 7.00 274 1,400 1,400
30-Jun-96 PURCHASE UVA/NSF - GUARANTEE 0.008 274 11,500 11,500
12-Mar-97 PURCHASE UVA/NSF - GUARANTEE (BG) 0.008 274 5,700 395
30-Nov-95 PURCHASE USS - GUARANTEE (SL) 3.75 274 18,354 18,354
18-Jan-96 PURCHASE USS - GUARANTEE (SL) 4.125 274 23,862 23,862
12-Mar-97 PURCHASE USS - GUARANTEE (RG) 0.008 274 1,000 69
14-Jul-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 274 11,000 11,000
21-Jul-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 274 46,000 46,000
22-Jul-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 274 16,000 16,000
26-Jul-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 274 26,000 26,000
02-Aug-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 274 13,000 13,000
11-Aug-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 274 10,000 10,000
16-Aug-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 274 2,000 2,000
18-Aug-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 274 8,000 8,000
24-Aug-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 274 16,000 16,000
26-Aug-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 274 18,000 18,000
06-Sep-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 274 13,000 13,000
09-Sep-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 274 2,000 2,000
23-Sep-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 274 8,000 8,000
04-Oct-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 274 2,000 2,000
07-Oct-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 274 2,000 2,000
14-Oct-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 274 4,000 4,000
09-Apr-96 CONVERSION OF CONVERTIBLE NOTES #2 3.50 274 7,143 7,143
01-May-96 CONVERSION OF CONVERTIBLE NOTES #2 5.00 274 2,500 2,500
02-Aug-94 PURCHASE TOTAL SECURITY ACCOUNTS 1.00 274 7,500 7,500
12-Mar-97 PURCHASE TOTAL SECURITY ACCOUNTS-GUAR 0.008 19 10,000 693
02-Aug-94 PURCHASE VAULT ACCOUNTS 1.00 274 1,640 1,640
24-Feb-95 PURCHASE VAULT ACCOUNTS 1.00 274 1,860 1,860
01-Nov-94 PURCHASE UNIVERSAL 0.75 274 75,689 75,689
22-Nov-94 PURCHASE ERS 1.00 274 10,000 10,000
22-Nov-94 PURCHASE ERS - McGinn 0.008 274 10,000 10,000
31-May-96 PURCHASE ERS - GUARANTEE (SPIEGELMANS) 7.00 274 6,000 6,000
24-Feb-95 MONITOR ACQUISITION CORP. 0.34375 274 15,000 15,000
12-May-95 PURCHASE ALERT CENTRE - McGinn 0.40625 274 22,500 22,500
12-Jul-95 DELAWARE ACQUISITION - KEYSER 0.40625 274 10,000 10,000
15-Jul-95 WESTERGARD (CONSULTING) 0.40625 274 2,000 2,000
25-Jul-95 DELAWARE ACQUISITION - MCGINN 0.46875 274 15,000 15,000
04-Dec-95 ERS - N/P Pay-off 4.60 274 32,000 32,000
06-Dec-95 EXERCISE CLASS C WARRANTS 3.75 274 10,800 10,800
08-Dec-95 EXERCISE CLASS C WARRANTS 3.75 274 3,000 3,000
14-Dec-95 EXERCISE CLASS C WARRANTS 3.75 274 4,000 4,000
19-Dec-95 EXERCISE CLASS C WARRANTS 3.75 274 2,000 2,000
31-Dec-95 EXERCISE CLASS C WARRANTS 3.75 274 500 500
30-Mar-96 EXERCISE CLASS C WARRANTS (HI-TEL) 3.50 274 17,500 17,500
04-Jun-96 EXERCISE CLASS C WARRANTS 5.625 274 4,000 4,000
10-Jun-96 EXERCISE CLASS C WARRANTS 3.75 274 3,500 3,500
12-Jun-96 EXERCISE CLASS C WARRANTS 5.625 274 5,000 5,000
18-Jun-96 EXERCISE CLASS C WARRANTS 3.75 274 1,000 1,000
20-Jun-96 EXERCISE CLASS C WARRANTS 5.625 274 7,000 7,000
20-Jun-96 EXERCISE CLASS C WARRANTS 5.625 274 10,000 10,000
20-Jun-96 EXERCISE CLASS C WARRANTS 5.825 274 2,000 2,000
20-Jun-96 EXERCISE CLASS C WARRANTS 5.631 274 500 500
25-Jun-96 EXERCISE CLASS C WARRANTS 3.75 274 2,000 2,000
03-Jul-96 EXERCISE CLASS C WARRANTS 5.625 271 5,000 4,945
17-Jul-96 EXERCISE CLASS C WARRANTS 6.00 257 20,000 18,759
17-Jul-96 EXERCISE CLASS C WARRANTS 5.625 257 2,000 1,876
25-Jul-96 EXERCISE CLASS C WARRANTS 5.625 249 1,000 909
25-Jul-96 EXERCISE CLASS C WARRANTS 3.875 249 1,000 909
03-Sep-96 EXERCISE CLASS C WARRANTS 5.625 209 1,000 763
09-Nov-95 CONVERSION OF CONVERTIBLE NOTES #3 0.30 274 75,000 75,000
13-Nov-95 CONVERSION OF CONVERTIBLE NOTES #3 0.275 274 9,091 9,091
16-Nov-95 CONVERSION OF CONVERTIBLE NOTES #3 2.00 274 74,306 74,306
17-Nov-95 CONVERSION OF CONVERTIBLE NOTES #3 2.00 274 75,000 75,000
21-Nov-95 CONVERSION OF CONVERTIBLE NOTES #3 2.25 274 83,339 83,339
21-Nov-95 CONVERSION OF CONVERTIBLE NOTES #3 2.25 274 11,112 11,112
21-Nov-95 CONVERSION OF CONVERTIBLE NOTES #3 2.00 274 12,500 12,500
21-Nov-95 CONVERSION OF CONVERTIBLE NOTES #3 2.25 274 38,891 38,891
30-Apr-96 CONVERSION OF CONVERTIBLE NOTES #3 3.75 274 6,667 6,667
01-May-96 CONVERSION OF CONVERTIBLE NOTES #3 3.75 274 3,334 3,334
18-Jan-96 EXERCISE WARRANT (BOULDER) 3.50 274 25,000 25,000
31-Jan-96 EXERCISE WARRANT (BOULDER) 3.50 274 12,500 12,500
20-Feb-96 EXERCISE WARRANT (BOULDER) 3.50 274 12,500 12,500
23-Feb-96 EXERCISE WARRANT (BOULDER) 3.50 274 62,500 62,500
01-Mar-96 EXERCISE WARRANT (BOULDER) 3.50 274 60,000 60,000
06-Mar-96 EXERCISE WARRANT (BOULDER) 3.50 274 70,000 70,000
21-Mar-96 EXERCISE WARRANT (BOULDER) 3.50 274 25,000 25,000
01-Apr-96 EXERCISE WARRANT (BOULDER) 3.50 274 35,000 35,000
04-Apr-96 EXERCISE WARRANT (BOULDER) 3.50 274 25,000 25,000
11-Apr-96 EXERCISE WARRANT (BOULDER) 3.50 274 75,000 75,000
17-Apr-96 EXERCISE WARRANT (BOULDER) 3.50 274 100,000 100,000
18-Apr-96 EXERCISE WARRANT (BOULDER) 3.50 274 50,000 50,000
26-Apr-96 EXERCISE WARRANT (BOULDER) 3.50 274 75,000 75,000
01-May-96 EXERCISE WARRANT (BOULDER) 3.50 274 100,000 100,000
02-May-96 EXERCISE WARRANT (BOULDER) 3.50 274 100,000 100,000
14-May-96 EXERCISE WARRANT (BOULDER) 2.50 274 100,000 100,000
14-May-96 EXERCISE WARRANT (BOULDER) 3.50 274 2,500 2,500
21-May-96 EXERCISE WARRANT (BOULDER) 2.50 274 125,000 125,000
23-May-96 EXERCISE WARRANT (BOULDER) 2.50 274 70,000 70,000
14-Jun-96 EXERCISE WARRANT (BOULDER) 2.50 274 125,000 125,000
10-Jun-96 R. RUBIN (BOULDER-COMMISSION) 2.50 274 60,000 60,000
02-Feb-96 EXERCISE OPTIONS (J.B.) 3.75 274 2,500 2,500
15-Feb-96 EXERCISE OPTIONS (R.B.) 2.50 274 25,000 25,000
15-Feb-96 EXERCISE OPTIONS (R.F.) 2.50 274 25,000 25,000
17-Jul-96 EXERCISE OPTIONS (S.L.) 3.75 257 2,500 2,345
07-Feb-96 UNIVERSAL BURG & FIRE - HOLDBACK 4.99 274 7,500 7,500
12-Mar-96 ACCURATE - HOLDBACK 4.68 274 7,000 7,000
12-Mar-96 SHELTON - HOLDBACK (IN ESCROW) 0.008 274 50,000 50,000
10-Dec-96 SHELTON - HOLDBACK (IN ESCROW) xcled 0.008 111 (50,000) (50,000)
28-Feb-96 PURCHASE MAC 4.99 274 127,868 127,868
15-May-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 274 149,998 149,998
16-May-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 274 52,774 52,774
17-May-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 274 11,111 11,111
22-May-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 274 41,663 41,663
31-May-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 274 5,555 5,555
04-Jun-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 274 13,887 13,887
10-Jun-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 274 5,555 5,555
12-Jun-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 274 30,552 30,552
13-Jun-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 274 11,111 11,111
20-Jun-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 274 5,555 5,555
03-Jul-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 271 11,110 10,988
08-May-96 EXERCISE WARRANTS (Kuzon) 3.50 274 17,500 17,500
17-May-96 EXERCISE WARRANTS 3.75 274 2,000 2,000
22-May-96 EXERCISE WARRANTS 3.75 274 500 500
27-Aug-96 EXERCISE WARRANTS (ECC) - Class A 3.25 216 14,000 11,036 originally belonged to L
26-Jul-96 EXERCISE WARRANTS (LLC) - Class A 3.25 248 78,000 70,599
04-Jun-96 N/P STOCKHOLDERS (TH/JC) 6.92 274 44,500 44,500
10-Jun-96 N/P STOCKHOLDERS (RR) 2.50 274 84,208 84,208
03-Jun-96 CONVERSION OF CONVERTIBLE NOTES - MCGI 3.26 274 133,436 133,436
30-Jun-96 MCGINN ANTIDILUTIVE SHARES 0.008 274 115,251 115,251
27-Aug-96 Preferred Stock Conversion 4.33 216 4,682 3,691
19-Sep-96 Preferred Stock Conversion 3.739 193 11,768 8,289
19-Sep-96 Preferred Stock Conversion 3.55 193 3,944 2,778
20-Sep-96 Preferred Stock Conversion 3.37 192 2,077 1,455
26-Sep-96 Preferred Stock Conversion 3.37 186 106,657 72,402
26-Sep-96 Preferred Stock Conversion 3.19 186 21,943 14,896
22-Nov-96 Preferred Stock Conversion 2.64 129 39,250 18,479
06-Mar-97 Joint Venture - Healthlink 3.01 25 1,094,164 99,832
17-Mar-97 Acquisition - Reliable Hawk 3.00 14 25,000 1,277
31-Mar-97 NQO Exercised 0.10 0 37,600 0
-----------------------
TOTAL OUTSTANDING SHARES 5,304,356 4,152,348
=======================
COMMON STOCK EQUIVALENTS:
30-Aug-90 31-Jan-96 RESTRICTED OPTIONS $2.80 274 7,142 7,142 $19,998 $29,779
30-Aug-90 31-Jan-97 RESTRICTED OPTIONS 2.80 274 7,142 7,142 19,998 $29,779
30-Jun-93 31-Jan-97 RESTRICTED OPTIONS EXERCISED 2.80 274 (14,284) (14,284) (39,995) ($59,558)
31-Jan-91 31-Jan-96 RESTRICTED OPTIONS 7.00 274 21,428 21,428 149,996 $223,364
31-Jan-91 31-Jan-96 RESTRICTED OPTIONS CANCELLED 7.00 274 (20,070) (20,070) (140,490) ($209,208)
30-Jun-93 31-Jan-96 RESTRICTED OPTIONS EXERCISED 7.00 274 (1,358) (1,358) (9,506) ($14,156)
31-Jan-91 31-Jan-96 RESTRICTED OPTIONS (E.E.) 70.00 274 7,142 7,142 499,940 $744,476
31-Jan-91 31-Jan-96 RESTRICTED OPTIONS (E.E.) Reverse 70.00 274 (6,427) (6,427) (449,890) ($669,945)
31-Jan-91 31-Jan-96 RESTRICTED OPTIONS (E.E.) EXPIRED 70.00 274 (715) (715) (50,050) ($74,531)
15-Nov-91 15-Nov-96 RESTRICTED OPTIONS 4.20 274 10,714 10,714 44,999 $67,009
15-Nov-91 15-Nov-96 RESTRICTED OPTIONS CANCELLED 4.20 274 (3,680) (3,680) (15,456) ($23,016)
30-Jun-93 15-Nov-96 RESTRICTED OPTIONS EXERCISED 4.20 274 (7,034) (7,034) (29,543) ($43,993)
02-Jan-92 02-Jan-97 RESTRICTED OPTIONS 3.50 274 12,500 12,500 43,750 $65,149
30-Jun-93 02-Jan-97 RESTRICTED OPTIONS EXERCISED 3.50 274 (12,500) (12,500) (43,750) ($65,149)
02-Jan-92 02-Jan-97 RESTRICTED OPTIONS (S.A.) 3.75 274 3,571 3,571 13,391 $19,941
02-Jan-92 02-Jan-97 RESTRICTED OPTIONS - REVRSE STCK SPLIT 3.75 274 (3,213) (3,213) (12,049) ($17,942)
02-Jan-92 02-Jan-97 RESTRICTED OPTIONS CANCELLED 3.75 274 (358) (358) (1,343) ($1,999)
30-Oct-92 30-Oct-95 RESTRICTED OPTIONS 3.75 274 15,000 15,000 56,250 $83,764
30-Oct-92 30-Oct-95 RESTRICTED OPTIONS - REVERSE 3.75 274 (13,500) (13,500) (50,625) ($75,387)
30-Oct-92 30-Oct-95 RESTRICTED OPTIONS EXPIRED 3.75 274 (1,500) (1,500) (5,625) ($8,376)
30-Oct-92 30-Oct-95 RESTRICTED OPTIONS 52.50 274 5,000 5,000 262,500 $390,897
30-Oct-92 30-Oct-95 RESTRICTED OPTIONS EXPIRED 52.50 274 (5,000) (5,000) (262,500) ($390,897)
16-Feb-94 28-Feb-99 RESTRICTED OPTIONS 3.75 274 15,000 15,000 56,250 $83,764
16-Feb-94 28-Feb-99 RESTRICTED OPTIONS - REVRSE STCK SPLIT 3.75 274 (13,500) (13,500) (50,625) ($75,387)
16-Feb-94 28-Feb-99 RESTRICTED OPTIONS CANCELLED 3.75 274 (1,500) (1,500) (5,624) ($8,376)
15-Nov-95 14-Nov-04 RESTRICTED OPTIONS (SA) 3.875 274 13,358 13,358 51,763 $77,081
15-Nov-95 14-Nov-04 RESTRICTED OPTIONS (MG) 3.875 274 15,000 15,000 58,126 $86,556
02-Jan-92 02-Jan-97 RESTRICTED OPTIONS (Consultants) 35.00 274 83,929 83,929 2,937,515 $4,374,343
02-Jan-92 02-Jan-97 RESTRICTED OPTIONS CANCELLED 35.00 274 (6,250) (6,250) (218,750) ($325,747)
30-Jun-93 02-Jan-97 RESTRICTED OPTIONS EXERCISED 35.00 274 (58,929) (58,929) (2,062,515)($3,071,354)
30-Jun-93 02-Jan-97 RESTRICTED OPTIONS (Consult) Reverse 35.00 274 (16,875) (16,875) (590,625) ($879,518)
30-Jun-93 02-Jan-97 RESTRICTED OPTIONS CANCELLED 35.00 274 (1,250) (1,250) (43,750) ($65,149)
07-Sep-94 07-Sep-04 RESTRICTED OPTIONS (Consultants R.R.) 3.75 274 150,000 150,000 562,500 $837,636
01-Feb-95 01-Feb-05 RESTRICTED OPTIONS (Consultants R.R.) 3.75 274 150,000 150,000 562,500 $837,636
07-Sep-94 07-Sep-04 RESTRICTED OPTIONS CANCELLED 3.75 274 (150,000) (150,000) (562,500) ($837,636)
01-Feb-95 01-Feb-05 RESTRICTED OPTIONS CANCELLED 3.75 274 (150,000) (150,000) (562,500) ($837,636)
15-Nov-95 14-Nov-04 RESTRICTED OPTIONS (Consultants R.R.) 2.50 274 300,000 300,000 750,000 $1,116,848
01-Aug-95 31-Jul-05 RESTRICTED OPTIONS (Consultants LPI) 4.45 274 41,250 41,250 183,563 $273,349
01-Feb-95 01-Feb-05 RESTRICTED OPTIONS (Director - SL) 3.75 274 25,000 25,000 93,750 $139,606
01-Feb-95 01-Feb-05 RESTRICTED OPTIONS (SL) Reverse Split 3.75 274 (22,500) (22,500) (84,375) ($125,645)
01-Feb-95 01-Feb-05 RESTRICTED OPTIONS (SL) CANCELLED 3.75 274 (2,500) (2,500) (9,375) ($13,961)
01-Feb-95 01-Feb-05 RESTRICTED OPTIONS (Director - JB) 3.75 274 25,000 25,000 93,750 $139,606
01-Feb-95 01-Feb-05 RESTRICTED OPTIONS (JB) Reverse Split 3.75 274 (22,500) (22,500) (84,375) ($125,645)
01-Feb-95 01-Feb-05 RESTRICTED OPTIONS (JB) EXERCISED 3.75 274 (2,500) (2,500) (9,375) ($13,961)
15-Nov-95 14-Nov-04 RESTRICTED OPTIONS (Director - SL) 3.75 274 2,500 2,500 9,375 $13,961
17-Jul-96 14-Nov-04 RESTRICTED OPTIONS (SL) EXERCISED 3.75 17 (2,500) (2,345) (9,375) ($866)
28-Aug-92 28-Aug-97 EMPLOYMENT AGREEMENT OPTIONS (R.B.) 3.75 274 133,333 133,333 499,999 $744,563
31-Aug-94 31-Aug-04 EMPLOYMENT AGREEMENT OPTIONS (R.B.) 3.75 274 300,000 300,000 1,125,000 $1,675,272
01-Feb-95 01-Feb-05 EMPLOYMENT AGREEMENT OPTIONS (R.B.) 3.75 274 300,000 300,000 1,125,000 $1,675,272
28-Aug-92 28-Aug-97 EMPLOYMENT OPTIONS (R.B.) CANCELLED 3.75 274 (733,333) (733,333) (2,749,999)($4,095,107)
28-Aug-92 28-Aug-97 EMPLOYMENT AGREEMENT OPTIONS (R.F.) 3.75 274 85,067 85,067 319,001 $475,034
31-Aug-94 31-Aug-04 EMPLOYMENT AGREEMENT OPTIONS (R.F.) 3.75 274 100,000 100,000 375,000 $558,424
01-Feb-95 01-Feb-05 EMPLOYMENT AGREEMENT OPTIONS (R.F.) 3.75 274 100,000 100,000 375,000 $558,424
28-Aug-92 28-Aug-97 EMPLOYMENT OPTIONS (R.F.) CANCELLED 3.75 274 (285,067) (285,067) (1,069,001)($1,591,882)
28-Aug-92 28-Aug-97 EMPLOYMENT AGREEMENT OPTIONS (H.L.) 5.00 274 181,600 181,600 908,000 $1,352,130
28-Aug-92 28-Aug-97 EMPLOYMENT OPTIONS (H.L.) CANCELLED 5.00 274 (181,600) (181,600) (908,000)($1,352,130)
04-Mar-94 31-Mar-99 EMPLOYMENT AGREEMENT OPTIONS (T.H.) 3.75 274 300,000 300,000 1,125,000 $1,675,272
04-Mar-94 31-Mar-99 EMPLOYMENT OPTIONS (T.H.) CANCELLED 3.75 274 (300,000) (300,000) (1,125,000)($1,675,272)
04-Mar-94 31-Mar-99 EMPLOYMENT AGREEMENT OPTIONS (J.C.) 3.75 274 300,000 300,000 1,125,000 $1,675,272
04-Mar-94 31-Mar-99 EMPLOYMENT OPTIONS (J.C.) CANCELLED 3.75 274 (300,000) (300,000) (1,125,000)($1,675,272)
15-Nov-95 14-Nov-04 EMPLOYMENT AGREEMENT OPTIONS (R.B.) 2.50 274 733,333 733,333 1,833,333 $2,730,071
15-Nov-95 14-Nov-04 EMPLOYMENT OPTIONS (R.B.) EXERCISED 2.50 274 (25,000) (25,000) (62,500) ($93,071)
15-Nov-95 14-Nov-04 EMPLOYMENT AGREEMENT OPTIONS (R.F.) 2.50 274 285,067 285,067 712,668 $1,061,255
15-Nov-95 14-Nov-04 EMPLOYMENT OPTIONS (R.F.) EXERCISED 2.50 274 (25,000) (25,000) (62,500) ($93,071)
15-Nov-95 14-Nov-04 EMPLOYMENT AGREEMENT OPTIONS (T.H.) 2.50 274 300,000 300,000 750,000 $1,116,848
15-Nov-95 14-Nov-04 EMPLOYMENT AGREEMENT OPTIONS (J.C.) 2.50 274 300,000 300,000 750,000 $1,116,848
30-Mar-92 NONE BRIDGE LOAN SHARES ISSUABLE 0.008 274 30,000 30,000 240 $357
23-Jun-92 NONE BRIDGE LOAN SHARES ISSUABLE 0.008 274 4,500 4,500 36 $54
30-Oct-92 NONE BRIDGE LOAN SHARES ISSUED 0.008 274 (34,500) (34,500) (276) ($411)
30-Oct-92 30-Oct-95 INCENTIVE OPTIONS (RAS) 5.25 274 30,500 30,500 160,125 $238,447
30-Oct-92 30-Oct-95 INCENTIVE OPTIONS (RAS) EXPIRED 5.25 274 (30,500) (30,500) (160,125) ($238,447)
16-Feb-94 28-Feb-99 INCENTIVE OPTIONS (RAS) 2.625 274 37,000 37,000 97,125 $144,632
16-Feb-94 28-Feb-99 INCENTIVE OPTIONS (RAS) CANCELLED 2.625 274 (18,500) (18,500) (48,563) ($72,316)
16-Feb-94 28-Feb-99 INCENTIVE OPTIONS (RAS) REVERSE SPLIT 2.625 274 (16,650) (16,650) (43,706) ($65,084)
20-Apr-94 30-Apr-99 INCENTIVE OPTIONS (UVS) 2.625 274 35,000 35,000 91,875 $136,814
20-Apr-94 30-Apr-99 INCENTIVE OPTIONS (UVS) CANCELLED 2.625 274 (15,500) (15,500) (40,688) ($60,589)
20-Apr-94 30-Apr-99 INCENTIVE OPTIONS (USS) REVERSE SPLIT 2.625 274 (17,550) (17,550) (46,069) ($68,602)
22-Dec-94 22-Dec-99 INCENTIVE OPTIONS (UVS) 2.625 274 13,000 13,000 34,125 $50,817
22-Dec-94 22-Dec-99 INCENTIVE OPTIONS (UVS) CANCELLED 2.625 274 (8,000) (8,000) (21,000) ($31,272)
22-Dec-94 22-Dec-99 INCENTIVE OPTIONS (USS) REVERSE SPLIT 2.625 274 (4,500) (4,500) (11,813) ($17,590)
27-Nov-95 27-Nov-01 INCENTIVE OPTIONS (USA) 2.625 274 62,750 62,750 164,719 $245,288
27-Nov-95 27-Nov-01 INCENTIVE OPTIONS - EXPIRED 2.625 274 (9,000) (9,000) (23,625) ($35,181)
16-Dec-96 27-Nov-01 INCENTIVE OPTIONS 2.625 169 8,500 3,257 22,313 $20,494
16-Dec-96 27-Nov-01 NONQUALIFIED STOCK OPTIONS 0.10 169 56,350 21,594 5,635 $5,176
16-Dec-96 27-Nov-01 NONQUALIFIED STOCK OPTIONS - Exercised 0.10 169 (37,600) (14,409) (3,760) ($3,453)
16-Dec-96 27-Nov-01 NONQUALIFIED STOCK OPTIONS 2.625 169 20,500 7,856 53,813 $49,426
30-Oct-92 22-Oct-97 CLASS A WARRANTS - IPO 4.50 274 80,000 80,000 360,000 $536,087
30-Oct-92 22-Oct-97 CLASS B WARRANTS - IPO 5.50 274 80,000 80,000 440,000 $655,217
25-Nov-92 22-Oct-97 CLASS A WARRANTS - OVER ALLOTMENT 4.50 274 12,000 12,000 54,000 $80,413
25-Nov-92 22-Oct-97 CLASS B WARRANTS - OVER ALLOTMENT 5.50 274 12,000 12,000 66,000 $98,283
30-Oct-92 30-Oct-96 CLASS A UNDERWRITER WARRANTS 4.50 274 8,000 8,000 36,000 $53,609
30-Oct-92 22-Oct-97 CLASS A WTS UNDERLYING U/W WTS 4.50 274 8,000 8,000 36,000 $53,609
30-Oct-92 22-Oct-97 CLASS B WTS UNDERLYING U/W WTS 5.50 274 8,000 8,000 44,000 $65,522
25-Nov-92 25-Nov-96 CLASS A UNDERWRITER WARRANTS 4.50 274 1,200 1,200 5,400 $8,041
25-Nov-92 22-Oct-97 CLASS A WTS UNDERLYING U/W WTS 4.50 274 1,200 1,200 5,400 $8,041
25-Nov-92 22-Oct-97 CLASS B WTS UNDERLYING U/W WTS 5.50 274 1,200 1,200 6,600 $9,828
16-Feb-93 NONE WARRANTS 0.008 274 50,000 50,000 400 $596
30-Jun-93 NONE WARRANTS EXERCISED 0.008 274 (50,000) (50,000) (400) ($596)
24-Mar-93 31-Mar-96 CLASS B WARRANTS 5.50 274 17,858 17,858 98,219 $146,261
31-Mar-93 31-Mar-96 CLASS B WARRANTS 5.50 274 19,286 19,286 106,073 $157,957
07-Apr-93 31-Mar-96 CLASS B WARRANTS 5.50 274 14,643 14,643 80,537 $119,929
22-Apr-93 31-Mar-96 CLASS B WARRANTS 5.50 274 17,143 17,143 94,287 $140,405
26-Apr-93 31-Mar-96 CLASS B WARRANTS 5.50 274 2,142 2,142 11,781 $17,543
22-Nov-93 31-Mar-96 CLASS B WARRANTS-PLACEMENT AGENT 5.50 274 7,108 7,108 39,094 $58,216
22-Nov-93 31-Mar-96 CLASS A WARRANTS (ORIG HOLDERS) 4.50 274 14,215 14,215 63,968 $95,256
15-Dec-93 30-Nov-96 CLASS A WARRANTS 4.50 274 133,000 133,000 598,500 $891,245
15-Dec-93 30-Nov-96 CLASS B WARRANTS 5.50 274 133,000 133,000 731,500 $1,089,299
15-Dec-93 30-Nov-96 CLASS A WARRANTS-PLACEMENT AGENT 4.50 274 13,300 13,300 59,850 $89,124
15-Dec-93 30-Nov-96 CLASS B WARRANTS-PLACEMENT AGENT 5.50 274 13,300 13,300 73,150 $108,930
15-Dec-93 30-Nov-96 CLASS B WARRANTS-PLACEMENT AGENT 5.50 274 2,000 2,000 11,000 $16,380
30-Dec-93 30-Nov-96 CLASS A WARRANTS 4.50 274 71,000 71,000 319,500 $475,777
30-Dec-93 30-Nov-96 CLASS B WARRANTS 5.50 274 71,000 71,000 390,500 $581,505
30-Dec-93 30-Nov-96 CLASS A WARRANTS-PLACEMENT AGENT 4.50 274 7,100 7,100 31,950 $47,578
30-Dec-93 30-Nov-96 CLASS B WARRANTS-PLACEMENT AGENT 5.50 274 7,100 7,100 39,050 $58,151
18-Jan-94 30-Nov-96 CLASS A WARRANTS 4.50 274 11,000 11,000 49,500 $73,712
18-Jan-94 30-Nov-96 CLASS B WARRANTS 5.50 274 11,000 11,000 60,500 $90,092
18-Jan-94 30-Nov-96 CLASS A WARRANTS-PLACEMENT AGENT 4.50 274 1,100 1,100 4,950 $7,371
18-Jan-94 30-Nov-96 CLASS B WARRANTS-PLACEMENT AGENT 5.50 274 1,100 1,100 6,050 $9,009
08-Feb-94 30-Nov-96 CLASS A WARRANTS 4.50 274 3,000 3,000 13,500 $20,103
08-Feb-94 30-Nov-96 CLASS B WARRANTS 5.50 274 3,000 3,000 16,500 $24,571
08-Feb-94 30-Nov-96 CLASS A WARRANTS-PLACEMENT AGENT 4.50 274 300 300 1,350 $2,010
08-Feb-94 30-Nov-96 CLASS B WARRANTS-PLACEMENT AGENT 5.50 274 300 300 1,650 $2,457
10-Mar-95 15-Jan-00 CLASS C WARRANTS - 12% 3.75 274 20,000 20,000 75,000 $111,685
17-Mar-95 15-Jan-00 CLASS C WARRANTS - 12% 3.75 274 10,000 10,000 37,500 $55,842
07-Apr-95 15-Jan-00 CLASS C WARRANTS - 12% 3.75 274 4,500 4,500 16,875 $25,129
21-Apr-95 15-Jan-00 CLASS C WARRANTS - 12% 3.75 274 2,000 2,000 7,500 $11,168
10-Mar-96 15-Jan-00 CLASS C WARRANTS - EXERCISED 12% 3.75 274 (20,000) (20,000) (75,000) ($111,685)
17-Mar-96 15-Jan-00 CLASS C WARRANTS - EXERCISED 12% 3.75 274 (9,300) (9,300) (34,875) ($51,933)
31-Mar-95 15-Jan-00 CLASS C WARRANTS-PLACEMENT AGENTS 3.75 274 20,000 20,000 75,000 $111,685
31-Mar-96 15-Jan-00 CLASS A WARRANTS-PLACEMENT AGENTS 3.25 274 92,000 92,000 299,000 $445,250
27-Aug-96 CLASS A WARRANTS-EXERCISED 3.25 58 (14,000) (11,036) (45,500) ($14,342)
28-Jul-95 30-Jun-97 CLASS C WARRANTS - McGinn 13.8% 3.26 274 6,667 6,667 21,734 $32,365
04-Oct-95 30-Jun-97 CLASS C WARRANTS - McGinn 13.8% 3.26 274 6,667 6,667 21,734 $32,365
01-Dec-95 30-Jun-97 CLASS C WARRANTS - McGinn 13.8% 3.26 274 6,666 6,666 21,731 $32,361
10-Jan-96 31-Dec-97 CLASS C WARRANTS - 10% 5.625 274 27,000 27,000 151,875 $226,162
22-Jan-96 31-Dec-97 CLASS C WARRANTS - 10% 5.625 274 17,000 17,000 95,625 $142,398
31-Jan-96 31-Dec-97 CLASS C WARRANTS - 10% 5.625 274 12,000 12,000 67,500 $100,516
28-Feb-96 31-Dec-97 CLASS C WARRANTS - 10% 5.625 274 5,000 5,000 28,125 $41,882
10-Jan-96 31-Dec-97 CLASS C WARRANTS - EXERCISED 10% 5.625 274 (27,000) (27,000) (151,875) ($226,162)
22-Jan-96 31-Dec-97 CLASS C WARRANTS - EXERCISED 10% 5.625 274 (1,500) (1,500) (8,438) ($12,565)
03-Jul-96 CLASS C WARRANTS - EXERCISED 5.625 3 (5,000) (4,945) (28,125) ($459)
17-Jul-96 CLASS C WARRANTS - EXERCISED 6.00 17 (20,000) (18,759) (120,000) ($11,087)
17-Jul-96 CLASS C WARRANTS - EXERCISED 5.625 17 (2,000) (1,876) (11,250) ($1,039)
25-Jul-96 CLASS C WARRANTS - EXERCISED 5.625 25 (1,000) (909) (5,625) ($764)
25-Jul-96 CLASS C WARRANTS - EXERCISED 3.875 25 (1,000) (909) (3,875) ($526)
03-Sep-96 CLASS C WARRANTS - EXERCISED 5.625 65 (1,000) (763) (5,625) ($1,987)
30-Jun-96 30-Jun-01 WARRANTS - ECC CONSULTING 5.125 274 200,000 200,000 1,025,000 $1,526,359
30-Jun-96 01-Jul-00 WARRANTS - BWF CONSULTING - MELLON 4.50 274 100,000 100,000 450,000 $670,109
30-Jun-96 30-Jun-01 WARRANTS - ZANNETT CAPITAL - PREFERRED 6.13 274 500,000 500,000 3,065,000 $4,564,185
30-Jun-96 30-Jun-01 WARRANTS - ZANNETT CAPITAL - PREFERRED 8.00 274 250,000 250,000 2,000,000 $2,978,261
30-Jun-96 30-Jun-00 WARRANTS - BWF CONSULTING - PREFERRED 4.50 274 75,000 75,000 337,500 $502,582
30-Jun-96 30-Jun-06 WARRANTS - PUT OPTIONS - MELLON 3.25 274 1,032,135 1,032,135 3,354,439 $4,995,197
--------- --------- --------- ---------
TOTAL COMMON STOCK EQUIVALENTS 5,114,863 5,090,369 $19,834,018 $29,801,422
========= ========= ========= =========
OTHER POTENTIALLY DILUTIVE SECURITIES:
24-Mar-93 31-Mar-96 $625,000 CONVERTIBLE NOTES 7% 3.50 274 178,571 178,571 $624,999 $930,704
31-Mar-93 31-Mar-96 $675,000 CONVERTIBLE NOTES 7% 3.50 274 192,857 192,857 $675,000 $1,005,162
07-Apr-93 31-Mar-96 $512,500 CONVERTIBLE NOTES 7% 3.50 274 146,429 146,429 $512,502 $763,182
22-Apr-93 31-Mar-96 $600,000 CONVERTIBLE NOTES 7% 3.50 274 171,429 171,429 $600,002 $893,480
26-Apr-93 31-Mar-96 $75,000 CONVERTIBLE NOTES 7% 3.50 274 21,428 21,428 $74,998 $111,682
15-Dec-93 30-Nov-96 $1,662,500 CONVERTIBLE NOTES 5% 1.25 274 1,330,000 1,330,000 $1,662,500 $2,475,679
30-Dec-93 30-Nov-96 $887,500 CONVERTIBLE NOTES 5% 1.25 274 710,000 710,000 $887,500 $1,321,603
18-Jan-94 30-Nov-96 $137,500 CONVERTIBLE NOTES 5% 1.25 274 110,000 110,000 $137,500 $204,755
08-Feb-94 30-Nov-96 $37,500 CONVERTIBLE NOTES 5% 1.25 274 30,000 30,000 $37,500 $55,842
10-Mar-95 31-Dec-96 $500,000 CONVERTIBLE NOTES 12% 2.50 274 200,000 200,000 $500,000 $744,565
17-Mar-95 31-Dec-96 $250,000 CONVERTIBLE NOTES 12% 2.50 274 100,000 100,000 $250,000 $372,283
07-Apr-95 31-Dec-96 $112,500 CONVERTIBLE NOTES 12% 2.50 274 45,000 45,000 $112,500 $167,527
21-Apr-95 31-Dec-96 $50,000 CONVERTIBLE NOTES 12% 2.50 274 20,000 20,000 $50,000 $74,457
Adjust for Reverse Stock Split/Price 274 (2,394,238)(2,394,238)($4,256,309) $0
10-Jan-96 31-Dec-97 $675,000 CONVERTIBLE NOTES 10% 4.50 274 150,000 150,000 $675,000 $1,005,163
22-Jan-96 31-Dec-97 $425,000 CONVERTIBLE NOTES 10% 4.50 274 94,444 94,444 $425,000 $632,880
31-Jan-96 31-Dec-97 $300,000 CONVERTIBLE NOTES 10% 4.50 274 66,667 66,667 $300,000 $446,739
28-Feb-96 31-Dec-97 $125,000 CONVERTIBLE NOTES 10% 4.50 274 27,778 27,778 $125,000 $186,141
28-Jul-95 30-Jun-97 $145,000 CONVERTIBLE NOTES 13.8% 3.26 274 44,479 44,479 $145,002 $215,926
04-Oct-95 30-Jun-97 $145,000 CONVERTIBLE NOTES 13.8% 3.26 274 44,479 44,479 $145,002 $215,926
01-Dec-95 30-Jun-97 $145,000 CONVERTIBLE NOTES 13.8% 3.26 274 44,478 44,478 $144,998 $215,921
12-May-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (3,572) (3,572) ($12,502) ($18,617)
17-May-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (6,786) (6,786) ($23,751) ($35,368)
21-May-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (715) (715) ($2,503) ($3,727)
25-May-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (1,429) (1,429) ($5,002) ($7,448)
01-Jun-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (1,072) (1,072) ($3,752) ($5,587)
02-Jun-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (6,072) (6,072) ($21,252) ($31,647)
18-Jun-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (5,714) (5,714) ($19,999) ($29,781)
21-Jun-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (2,143) (2,143) ($7,501) ($11,169)
23-Jun-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (2,858) (2,858) ($10,003) ($14,896)
25-Jun-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (1,072) (1,072) ($3,752) ($5,587)
30-Jun-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (2,143) (2,143) ($7,501) ($11,169)
06-Jul-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (358) (358) ($1,253) ($1,866)
09-Jul-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (7,858) (7,858) ($27,503) ($40,956)
20-Jul-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (1,429) (1,429) ($5,002) ($7,448)
29-Jul-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (2,858) (2,858) ($10,003) ($14,896)
04-Aug-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (1,072) (1,072) ($3,752) ($5,587)
05-Aug-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (358) (358) ($1,253) ($1,866)
13-Aug-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (1,072) (1,072) ($3,752) ($5,587)
20-Aug-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (2,143) (2,143) ($7,501) ($11,169)
25-Aug-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (715) (715) ($2,503) ($3,727)
07-Sep-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (1,072) (1,072) ($3,752) ($5,587)
18-Oct-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (2,143) (2,143) ($7,501) ($11,169)
19-Oct-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (1,429) (1,429) ($5,002) ($7,448)
28-Oct-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (2,143) (2,143) ($7,501) ($11,169)
03-Nov-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (2,500) (2,500) ($8,750) ($13,030)
24-Nov-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (1,429) (1,429) ($5,002) ($7,448)
31-Jan-94 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (715) (715) ($2,503) ($3,727)
21-Mar-94 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (715) (715) ($2,503) ($3,727)
29-Mar-94 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (357) (357) ($1,250) ($1,861)
11-Mar-96 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (14,286) (14,286) ($50,001) ($74,458)
22-Mar-96 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (7,143) (7,143) ($25,001) ($37,229)
27-Mar-96 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (7,143) (7,143) ($25,001) ($37,229)
09-Apr-96 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (7,144) (7,144) ($25,004) ($37,234)
26-Apr-96 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 4.50 274 (2,778) (2,778) ($12,501) ($18,616)
10-Jun-96 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 1.50 274 (33,333) (33,333) ($50,000) ($74,456)
12-Jun-96 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 274 (3,571) (3,571) ($12,499) ($18,612)
14-Jun-96 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 5.75 274 (4,348) (4,348) ($25,001) ($37,230)
14-Jul-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 274 (11,000) (11,000) ($13,750) ($20,476)
21-Jul-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 274 (46,000) (46,000) ($57,500) ($85,625)
22-Jul-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 274 (16,000) (16,000) ($20,000) ($29,783)
26-Jul-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 274 (26,000) (26,000) ($32,500) ($48,397)
02-Aug-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 274 (13,000) (13,000) ($16,250) ($24,198)
11-Aug-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 274 (10,000) (10,000) ($12,500) ($18,614)
16-Aug-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 274 (2,000) (2,000) ($2,500) ($3,723)
18-Aug-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 274 (8,000) (8,000) ($10,000) ($14,891)
24-Aug-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 274 (16,000) (16,000) ($20,000) ($29,783)
26-Aug-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 274 (18,000) (18,000) ($22,500) ($33,505)
06-Sep-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 274 (13,000) (13,000) ($16,250) ($24,198)
09-Sep-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 274 (2,000) (2,000) ($2,500) ($3,723)
23-Sep-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 274 (8,000) (8,000) ($10,000) ($14,891)
04-Oct-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 274 (2,000) (2,000) ($2,500) ($3,723)
07-Oct-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 274 (2,000) (2,000) ($2,500) ($3,723)
14-Oct-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 274 (4,000) (4,000) ($5,000) ($7,446)
22-Mar-96 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 3.50 274 (28,572) (28,572) ($100,002) ($148,916)
09-Apr-96 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 3.50 274 (7,143) (7,143) ($25,001) ($37,229)
01-May-96 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 5.00 274 (2,500) (2,500) ($12,500) ($18,614)
10-Jun-96 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.50 274 (33,333) (33,333) ($50,000) ($74,456)
02-Dec-96 30-Nov-96 CONVERTIBLE NOTES 5% PAID IN FULL 1.25 155 (10,000) (4,343) ($12,500) ($10,530)
09-Nov-95 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 3.00 274 (75,000) (75,000) ($225,000) ($335,054)
13-Nov-95 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 2.750 274 (9,091) (9,091) ($25,000) ($37,229)
16-Nov-95 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 2.00 274 (74,306) (74,306) ($148,612) ($221,303)
17-Nov-95 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 2.00 274 (75,000) (75,000) ($150,000) ($223,370)
21-Nov-95 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 2.25 274 (83,339) (83,339) ($187,513) ($279,231)
21-Nov-95 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 2.25 274 (11,112) (11,112) ($25,002) ($37,231)
21-Nov-95 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 2.00 274 (12,500) (12,500) ($25,000) ($37,228)
21-Nov-95 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 2.25 274 (38,891) (38,891) ($87,505) ($130,306)
30-Apr-96 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 3.75 274 (6,667) (6,667) ($25,001) ($37,230)
01-May-96 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 3.75 274 (3,334) (3,334) ($12,503) ($18,618)
15-May-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 274 (149,998) (149,998) ($674,991)($1,005,150)
16-May-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 274 (52,774) (52,774) ($237,483) ($353,643)
17-May-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 274 (11,111) (11,111) ($50,000) ($74,456)
22-May-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 274 (41,663) (41,663) ($187,484) ($279,187)
31-May-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 274 (5,555) (5,555) ($24,998) ($37,225)
04-Jun-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 274 (13,887) (13,887) ($62,492) ($93,058)
10-Jun-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 274 (5,555) (5,555) ($24,998) ($37,225)
12-Jun-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 274 (30,569) (30,569) ($137,561) ($204,846)
13-Jun-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 274 (11,111) (11,111) ($50,000) ($74,456)
20-Jun-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 274 (5,555) (5,555) ($24,997) ($37,225)
03-Jul-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 3 (11,110) (10,988) ($49,994) ($815)
03-Jun-96 30-Jun-97 CONVERSION OF CONVERTIBLE NOTES 13.8% 3.26 274 (133,436) (133,436) ($435,000) ($647,774)
30-Jun-96 01-Jun-99 Preferred Stock 5.00 274 2,010,000 2,010,000 $10,050,000 $14,965,761
19-Aug-96 01-Jun-99 CONVERSION OF PREFERRED STOCK 5.00 50 (5,360) (4,382) ($26,800) ($7,283)
17-Sep-96 01-Jun-99 CONVERSION OF PREFERRED STOCK 5.00 79 (11,792) (8,392) ($58,960) ($25,314)
19-Sep-96 01-Jun-99 CONVERSION OF PREFERRED STOCK 5.00 81 (3,752) (2,643) ($18,760) ($8,258)
20-Sep-96 01-Jun-99 CONVERSION OF PREFERRED STOCK 5.00 82 (97,016) (67,982) ($485,080) ($216,177)
23-Sep-96 01-Jun-99 CONVERSION OF PREFERRED STOCK 5.00 85 (18,760) (12,940) ($93,800) ($43,332)
22-Nov-96 01-Jun-99 CONVERSION OF PREFERRED STOCK 5.00 145 (26,800) (12,618) ($134,000) ($105,598)
--------- --------- --------- ---------
TOTAL OTHER POTENTIALLY DILUTIVE SECURITIES 1,896,521 1,956,823 $9,295,107 $21,072,792
========= ========= ========= =========
</TABLE>
RESPONSE USA, INC.
EARNINGS PER SHARE
For the Nine Months Ended March 31, 1997
EARNINGS PER SHARE COMPUTATIONS:
MODIFIED TREASURY STOCK METHOD:
TOTAL EXERCISE PROCEEDS $29,801,422
----------
PERIOD-END OUTSTANDING SHARES 5,304,356
----------
20% OF PERIOD-END OUTSTANDING SHARES 1,060,871
----------
AVERAGE SHARE PRICE DURING PERIOD $4.51
----------
PROCEEDS USED TO PURCHASE SHARES 4,784,529
----------
REMAINING PROCEEDS 25,016,893
----------
PROCEEDS USED TO RETIRE AVERAGE DEBT 9,693,469
----------
REMAINING PROCEEDS INVESTED $15,323,424
==========
ADJUSTED INCOME (LOSS):
NET INCOME (LOSS) ($5,148,494)
ACCRETION TO PREFERRED STOCK (2,342,600)
DEEMED DIVIDENDS (532,493)
------------
ADJUSTED INCOME (LOSS) (8,023,587)
INTEREST (EXPENSE) ON RETIRED DEBT (10.25%) 745,185
INTEREST INCOME ON PROCEEDS INVESTED (2.5%) 287,314
TAX EFFECT OF INTEREST ADJUSTMENTS (40%) (413,000)
------------
NET (LOSS) FOR EARNINGS PER SHARE PURPOSES (7,404,087)
------------
SHARES:
WEIGHTED AVERAGE SHARES OUTSTANDING 4,152,348
WEIGHTED AVERAGE EQUIVALENT SHARES OUTSTANDING 5,090,369
20% OF PERIOD-END OUTSTANDING SHARES (1,060,871)
------------
TOTAL SHARES FOR EARNINGS PER SHARE PURPOSES 8,181,846
------------
NET INCOME (LOSS) PER SHARE ($0.90)
============
MAXIMUM INCOME (MINIMUM LOSS) PER SHARE:
ADJUSTED INCOME (LOSS) ($8,023,587)
------------
WEIGHTED AVERAGE SHARES OUTSTANDING 4,152,348
------------
NET INCOME (LOSS) PER SHARE ($1.93)
============
<TABLE>
RESPONSE USA, INC.
EARNINGS PER SHARE
For the Quarter Ended March 31, 1997
<CAPTION>
WEIGHTED
TOTAL WEIGHTED TOTAL AVERAGE
DATE DATE EXERCISE DAYS SHARES AVERAGE PROCEEDS PROCEEDS
ISSUED EXPIRE TRANSACTION PRICE O/S ISSUED # SHARES OBTAINABLE OBTAINABLE
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OUTSTANDING SHARES:
01-Jul-90 ORIGINAL ISSUANCE 90 37,922 37,922
17-Aug-90 PURCHASE OF SYSTEMS 90 6,656 6,656
13-May-91 ISSUED FOR ASSETS 90 358 358
30-Oct-92 PUBLIC OFFERING 90 80,000 80,000
30-Oct-92 BRIDGE LOAN SHARES ISSUED 90 3,450 3,450
25-Nov-92 OVER-ALLOTMENT ISSUANCE 90 12,000 12,000
30-Jun-93 WARRANTS EXERCISED - GRANTED 2-16-93 0.008 90 5,000 5,000
30-Jun-93 RESTRICTED OPTIONS EXERCISED 0.008 90 1,429 1,429
30-Jun-93 RESTRICTED OPTIONS EXERCISED 0.008 90 136 136
30-Jun-93 RESTRICTED OPTIONS EXERCISED 0.008 90 704 704
30-Jun-93 RESTRICTED OPTIONS EXERCISED 0.008 90 1,250 1,250
30-Jun-93 ADDITIONAL OPTIONS 0.008 90 5,893 5,893
12-May-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 3,572 3,572
17-May-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 6,786 6,786
21-May-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 715 715
25-May-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 1,429 1,429
01-Jun-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 1,072 1,072
02-Jun-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 6,072 6,072
18-Jun-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 5,714 5,714
21-Jun-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 2,143 2,143
23-Jun-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 2,858 2,858
25-Jun-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 1,072 1,072
30-Jun-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 2,143 2,143
06-Jul-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 358 358
09-Jul-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 7,858 7,858
20-Jul-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 1,429 1,429
29-Jul-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 2,858 2,858
04-Aug-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 1,072 1,072
05-Aug-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 358 358
13-Aug-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 1,072 1,072
20-Aug-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 2,143 2,143
25-Aug-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 715 715
07-Sep-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 1,072 1,072
18-Oct-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 2,143 2,143
19-Oct-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 1,429 1,429
28-Oct-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 2,143 2,143
03-Nov-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 2,500 2,500
24-Nov-93 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 1,429 1,429
31-Jan-94 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 715 715
21-Mar-94 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 715 715
29-Mar-94 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 375 375
11-Mar-96 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 14,286 14,286
22-Mar-96 CONVERSION OF CONVERTIBLE NOTES #1/#2 3.50 90 35,715 35,715
27-Mar-96 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 7,143 7,143
09-Apr-96 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 3,572 3,572
09-Apr-96 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 3,572 3,572
26-Apr-96 CONVERSION OF CONVERTIBLE NOTES #1 4.50 90 2,778 2,778
10-Jun-96 CONVERSION OF CONVERTIBLE NOTES #1/#2 1.50 90 67,553 67,553
12-Jun-96 CONVERSION OF CONVERTIBLE NOTES #1 3.50 90 3,571 3,571
14-Jun-96 CONVERSION OF CONVERTIBLE NOTES #1 5.75 90 4,348 4,348
07-Jul-93 PRIVATE PLACEMENT 2.50 90 60,000 60,000
09-Jul-93 PRIVATE PLACEMENT 0.008 90 15,000 15,000
04-Mar-94 PURCHASE UVA/NSF (ORIG) 1.73 90 31,893 31,893
04-Mar-94 PURCHASE UVA/NSF (ORIG) 1.73 90 11,676 11,676
24-Feb-95 PURCHASE UVA/NSF - GUARANTEE 0.375 90 3,126 3,126
24-Feb-95 PURCHASE UVA/NSF - GUARANTEE 0.375 90 7,838 7,838
24-Feb-95 PURCHASE UVA/NSF - GUARANTEE 0.375 90 22,199 22,199
30-Jun-95 PURCHASE UVA/NSF - GUARANTEE 0.40625 90 29,940 29,940
30-Jun-95 PURCHASE UVA/NSF - GUARANTEE 0.40625 90 27,823 27,823
30-Jun-95 PURCHASE UVA/NSF - GUARANTEE 0.40625 90 3,650 3,650
30-Jun-95 PURCHASE UVA/NSF - GUARANTEE 0.40625 90 4,717 4,717
30-Jun-95 PURCHASE UVA/NSF - GUARANTEE 0.40625 90 7,599 7,599
30-Jun-95 PURCHASE UVA/NSF - GUARANTEE 0.40625 90 11,735 11,735
30-Jun-95 PURCHASE UVA/NSF - GUARANTEE 0.40625 90 1,378 1,378
29-Dec-95 PURCHASE UVA/NSF - GUARANTEE (BB) 3.75 90 4,000 4,000
02-Feb-96 PURCHASE UVA/NSF - GUARANTEE 5.00 90 9,177 9,177
02-Feb-96 PURCHASE UVA/NSF - GUARANTEE 5.00 90 9,177 9,177
12-Mar-96 PURCHASE UVA/NSF - GUARANTEE 4.39 90 6,200 6,200
12-Mar-96 PURCHASE UVA/NSF - GUARANTEE 4.39 90 6,100 6,100
12-Mar-96 PURCHASE UVA/NSF - GUARANTEE 4.42 90 4,200 4,200
12-Mar-96 PURCHASE UVA/NSF - GUARANTEE 4.32 90 3,225 3,225
31-May-96 PURCHASE UVA/NSF - GUARANTEE 7.00 90 1,400 1,400
30-Jun-96 PURCHASE UVA/NSF - GUARANTEE 0.008 90 11,500 11,500
12-Mar-97 PURCHASE UVA/NSF - GUARANTEE (BG) 0.008 19 5,700 1,203
30-Nov-95 PURCHASE USS - GUARANTEE (SL) 3.75 90 18,354 18,354
18-Jan-96 PURCHASE USS - GUARANTEE (SL) 4.125 90 23,862 23,862
12-Mar-97 PURCHASE USS - GUARANTEE (RG) 0.008 19 1,000 211
14-Jul-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 90 11,000 11,000
21-Jul-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 90 46,000 46,000
22-Jul-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 90 16,000 16,000
26-Jul-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 90 26,000 26,000
02-Aug-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 90 13,000 13,000
11-Aug-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 90 10,000 10,000
16-Aug-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 90 2,000 2,000
18-Aug-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 90 8,000 8,000
24-Aug-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 90 16,000 16,000
26-Aug-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 90 18,000 18,000
06-Sep-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 90 13,000 13,000
09-Sep-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 90 2,000 2,000
23-Sep-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 90 8,000 8,000
04-Oct-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 90 2,000 2,000
07-Oct-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 90 2,000 2,000
14-Oct-94 CONVERSION OF CONVERTIBLE NOTES #2 1.25 90 4,000 4,000
09-Apr-96 CONVERSION OF CONVERTIBLE NOTES #2 3.50 90 7,143 7,143
01-May-96 CONVERSION OF CONVERTIBLE NOTES #2 5.00 90 2,500 2,500
02-Aug-94 PURCHASE TOTAL SECURITY ACCOUNTS 1.00 90 7,500 7,500
12-Mar-97 PURCHASE TOTAL SECURITY ACCOUNTS-GUAR 0.008 19 10,000 2,111
02-Aug-94 PURCHASE VAULT ACCOUNTS 1.00 90 1,640 1,640
24-Feb-95 PURCHASE VAULT ACCOUNTS 1.00 90 1,860 1,860
01-Nov-94 PURCHASE UNIVERSAL 0.75 90 75,689 75,689
22-Nov-94 PURCHASE ERS 1.00 90 10,000 10,000
22-Nov-94 PURCHASE ERS - McGinn 0.008 90 10,000 10,000
31-May-96 PURCHASE ERS - GUARANTEE (SPIEGELMANS) 7.00 90 6,000 6,000
24-Feb-95 MONITOR ACQUISITION CORP. 0.34375 90 15,000 15,000
12-May-95 PURCHASE ALERT CENTRE - McGinn 0.40625 90 22,500 22,500
12-Jul-95 DELAWARE ACQUISITION - KEYSER 0.40625 90 10,000 10,000
15-Jul-95 WESTERGARD (CONSULTING) 0.40625 90 2,000 2,000
25-Jul-95 DELAWARE ACQUISITION - MCGINN 0.46875 90 15,000 15,000
04-Dec-95 ERS - N/P Pay-off 4.60 90 32,000 32,000
06-Dec-95 EXERCISE CLASS C WARRANTS 3.75 90 10,800 10,800
08-Dec-95 EXERCISE CLASS C WARRANTS 3.75 90 3,000 3,000
14-Dec-95 EXERCISE CLASS C WARRANTS 3.75 90 4,000 4,000
19-Dec-95 EXERCISE CLASS C WARRANTS 3.75 90 2,000 2,000
31-Dec-95 EXERCISE CLASS C WARRANTS 3.75 90 500 500
30-Mar-96 EXERCISE CLASS C WARRANTS (HI-TEL) 3.50 90 17,500 17,500
04-Jun-96 EXERCISE CLASS C WARRANTS 5.625 90 4,000 4,000
10-Jun-96 EXERCISE CLASS C WARRANTS 3.75 90 3,500 3,500
12-Jun-96 EXERCISE CLASS C WARRANTS 5.625 90 5,000 5,000
18-Jun-96 EXERCISE CLASS C WARRANTS 3.75 90 1,000 1,000
20-Jun-96 EXERCISE CLASS C WARRANTS 5.625 90 7,000 7,000
20-Jun-96 EXERCISE CLASS C WARRANTS 5.625 90 10,000 10,000
20-Jun-96 EXERCISE CLASS C WARRANTS 5.825 90 2,000 2,000
20-Jun-96 EXERCISE CLASS C WARRANTS 5.631 90 500 500
25-Jun-96 EXERCISE CLASS C WARRANTS 3.75 90 2,000 2,000
03-Jul-96 EXERCISE CLASS C WARRANTS 5.625 90 5,000 5,000
17-Jul-96 EXERCISE CLASS C WARRANTS 6.00 90 20,000 20,000
17-Jul-96 EXERCISE CLASS C WARRANTS 5.625 90 2,000 2,000
25-Jul-96 EXERCISE CLASS C WARRANTS 5.625 90 1,000 1,000
25-Jul-96 EXERCISE CLASS C WARRANTS 3.875 90 1,000 1,000
03-Sep-96 EXERCISE CLASS C WARRANTS 5.625 90 1,000 1,000
09-Nov-95 CONVERSION OF CONVERTIBLE NOTES #3 0.30 90 75,000 75,000
13-Nov-95 CONVERSION OF CONVERTIBLE NOTES #3 0.275 90 9,091 9,091
16-Nov-95 CONVERSION OF CONVERTIBLE NOTES #3 2.00 90 74,306 74,306
17-Nov-95 CONVERSION OF CONVERTIBLE NOTES #3 2.00 90 75,000 75,000
21-Nov-95 CONVERSION OF CONVERTIBLE NOTES #3 2.25 90 83,339 83,339
21-Nov-95 CONVERSION OF CONVERTIBLE NOTES #3 2.25 90 11,112 11,112
21-Nov-95 CONVERSION OF CONVERTIBLE NOTES #3 2.00 90 12,500 12,500
21-Nov-95 CONVERSION OF CONVERTIBLE NOTES #3 2.25 90 38,891 38,891
30-Apr-96 CONVERSION OF CONVERTIBLE NOTES #3 3.75 90 6,667 6,667
01-May-96 CONVERSION OF CONVERTIBLE NOTES #3 3.75 90 3,334 3,334
18-Jan-96 EXERCISE WARRANT (BOULDER) 3.50 90 25,000 25,000
31-Jan-96 EXERCISE WARRANT (BOULDER) 3.50 90 12,500 12,500
20-Feb-96 EXERCISE WARRANT (BOULDER) 3.50 90 12,500 12,500
23-Feb-96 EXERCISE WARRANT (BOULDER) 3.50 90 62,500 62,500
01-Mar-96 EXERCISE WARRANT (BOULDER) 3.50 90 60,000 60,000
06-Mar-96 EXERCISE WARRANT (BOULDER) 3.50 90 70,000 70,000
21-Mar-96 EXERCISE WARRANT (BOULDER) 3.50 90 25,000 25,000
01-Apr-96 EXERCISE WARRANT (BOULDER) 3.50 90 35,000 35,000
04-Apr-96 EXERCISE WARRANT (BOULDER) 3.50 90 25,000 25,000
11-Apr-96 EXERCISE WARRANT (BOULDER) 3.50 90 75,000 75,000
17-Apr-96 EXERCISE WARRANT (BOULDER) 3.50 90 100,000 100,000
18-Apr-96 EXERCISE WARRANT (BOULDER) 3.50 90 50,000 50,000
26-Apr-96 EXERCISE WARRANT (BOULDER) 3.50 90 75,000 75,000
01-May-96 EXERCISE WARRANT (BOULDER) 3.50 90 100,000 100,000
02-May-96 EXERCISE WARRANT (BOULDER) 3.50 90 100,000 100,000
14-May-96 EXERCISE WARRANT (BOULDER) 2.50 90 100,000 100,000
14-May-96 EXERCISE WARRANT (BOULDER) 3.50 90 2,500 2,500
21-May-96 EXERCISE WARRANT (BOULDER) 2.50 90 125,000 125,000
23-May-96 EXERCISE WARRANT (BOULDER) 2.50 90 70,000 70,000
14-Jun-96 EXERCISE WARRANT (BOULDER) 2.50 90 125,000 125,000
10-Jun-96 R. RUBIN (BOULDER-COMMISSION) 2.50 90 60,000 60,000
02-Feb-96 EXERCISE OPTIONS (J.B.) 3.75 90 2,500 2,500
15-Feb-96 EXERCISE OPTIONS (R.B.) 2.50 90 25,000 25,000
15-Feb-96 EXERCISE OPTIONS (R.F.) 2.50 90 25,000 25,000
17-Jul-96 EXERCISE OPTIONS (S.L.) 3.75 90 2,500 2,500
07-Feb-96 UNIVERSAL BURG & FIRE - HOLDBACK 4.99 90 7,500 7,500
12-Mar-96 ACCURATE - HOLDBACK 4.68 90 7,000 7,000
12-Mar-96 SHELTON - HOLDBACK (IN ESCROW) 0.008 90 50,000 50,000
10-Dec-96 SHELTON - HOLDBACK (IN ESCROW) xcled 0.008 90 (50,000) (50,000)
28-Feb-96 PURCHASE MAC 4.99 90 127,868 127,868
15-May-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 90 149,998 149,998
16-May-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 90 52,774 52,774
17-May-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 90 11,111 11,111
22-May-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 90 41,663 41,663
31-May-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 90 5,555 5,555
04-Jun-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 90 13,887 13,887
10-Jun-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 90 5,555 5,555
12-Jun-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 90 30,552 30,552
13-Jun-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 90 11,111 11,111
20-Jun-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 90 5,555 5,555
03-Jul-96 CONVERSION OF CONVERTIBLE NOTES #4 4.50 90 11,110 11,110
08-May-96 EXERCISE WARRANTS (Kuzon) 3.50 90 17,500 17,500
17-May-96 EXERCISE WARRANTS 3.75 90 2,000 2,000
22-May-96 EXERCISE WARRANTS 3.75 90 500 500
27-Aug-96 EXERCISE WARRANTS (ECC) - Class A 3.25 90 14,000 14,000 originally belonged to L
26-Jul-96 EXERCISE WARRANTS (LLC) - Class A 3.25 90 78,000 78,000
04-Jun-96 N/P STOCKHOLDERS (TH/JC) 6.92 90 44,500 44,500
10-Jun-96 N/P STOCKHOLDERS (RR) 2.50 90 84,208 84,208
03-Jun-96 CONVERSION OF CONVERTIBLE NOTES - MCGI 3.26 90 133,436 133,436
30-Jun-96 MCGINN ANTIDILUTIVE SHARES 0.008 90 115,251 115,251
27-Aug-96 Preferred Stock Conversion 4.33 90 4,682 4,682
19-Sep-96 Preferred Stock Conversion 3.739 90 11,768 11,768
19-Sep-96 Preferred Stock Conversion 3.55 90 3,944 3,944
20-Sep-96 Preferred Stock Conversion 3.37 90 2,077 2,077
26-Sep-96 Preferred Stock Conversion 3.37 90 106,657 106,657
26-Sep-96 Preferred Stock Conversion 3.19 90 21,943 21,943
22-Nov-96 Preferred Stock Conversion 2.64 90 39,250 39,250
06-Mar-97 Joint Venture - Healthlink 3.01 25 1,094,164 303,934
17-Mar-97 Acquisition - Reliable Hawk 3.00 14 25,000 3,889
31-Mar-97 NQO Exercised 0.10 0 37,600 0
-----------------------
TOTAL OUTSTANDING SHARES 5,304,356 4,442,241
=======================
COMMON STOCK EQUIVALENTS:
30-Aug-90 31-Jan-96 RESTRICTED OPTIONS $2.80 90 7,142 7,142 $19,998 $9,781
30-Aug-90 31-Jan-97 RESTRICTED OPTIONS 2.80 90 7,142 7,142 19,998 $9,781
30-Jun-93 31-Jan-97 RESTRICTED OPTIONS EXERCISED 2.80 90 (14,284) (14,284) (39,995) ($19,563)
31-Jan-91 31-Jan-96 RESTRICTED OPTIONS 7.00 90 21,428 21,428 149,996 $73,368
31-Jan-91 31-Jan-96 RESTRICTED OPTIONS CANCELLED 7.00 90 (20,070) (20,070) (140,490) ($68,718)
30-Jun-93 31-Jan-96 RESTRICTED OPTIONS EXERCISED 7.00 90 (1,358) (1,358) (9,506) ($4,650)
31-Jan-91 31-Jan-96 RESTRICTED OPTIONS (E.E.) 70.00 90 7,142 7,142 499,940 $244,536
31-Jan-91 31-Jan-96 RESTRICTED OPTIONS (E.E.) Reverse 70.00 90 (6,427) (6,427) (449,890) ($220,055)
31-Jan-91 31-Jan-96 RESTRICTED OPTIONS (E.E.) EXPIRED 70.00 90 (715) (715) (50,050) ($24,481)
15-Nov-91 15-Nov-96 RESTRICTED OPTIONS 4.20 90 10,714 10,714 44,999 $22,010
15-Nov-91 15-Nov-96 RESTRICTED OPTIONS CANCELLED 4.20 90 (3,680) (3,680) (15,456) ($7,560)
30-Jun-93 15-Nov-96 RESTRICTED OPTIONS EXERCISED 4.20 90 (7,034) (7,034) (29,543) ($14,450)
02-Jan-92 02-Jan-97 RESTRICTED OPTIONS 3.50 90 12,500 12,500 43,750 $21,399
30-Jun-93 02-Jan-97 RESTRICTED OPTIONS EXERCISED 3.50 90 (12,500) (12,500) (43,750) ($21,399)
02-Jan-92 02-Jan-97 RESTRICTED OPTIONS (S.A.) 3.75 90 3,571 3,571 13,391 $6,550
02-Jan-92 02-Jan-97 RESTRICTED OPTIONS - REVRSE STCK SPLIT 3.75 90 (3,213) (3,213) (12,049) ($5,893)
02-Jan-92 02-Jan-97 RESTRICTED OPTIONS CANCELLED 3.75 90 (358) (358) (1,343) ($657)
30-Oct-92 30-Oct-95 RESTRICTED OPTIONS 3.75 90 15,000 15,000 56,250 $27,514
30-Oct-92 30-Oct-95 RESTRICTED OPTIONS - REVERSE 3.75 90 (13,500) (13,500) (50,625) ($24,762)
30-Oct-92 30-Oct-95 RESTRICTED OPTIONS EXPIRED 3.75 90 (1,500) (1,500) (5,625) ($2,751)
30-Oct-92 30-Oct-95 RESTRICTED OPTIONS 52.50 90 5,000 5,000 262,500 $128,397
30-Oct-92 30-Oct-95 RESTRICTED OPTIONS EXPIRED 52.50 90 (5,000) (5,000) (262,500) ($128,397)
16-Feb-94 28-Feb-99 RESTRICTED OPTIONS 3.75 90 15,000 15,000 56,250 $27,514
16-Feb-94 28-Feb-99 RESTRICTED OPTIONS - REVRSE STCK SPLIT 3.75 90 (13,500) (13,500) (50,625) ($24,762)
16-Feb-94 28-Feb-99 RESTRICTED OPTIONS CANCELLED 3.75 90 (1,500) (1,500) (5,624) ($2,751)
15-Nov-95 14-Nov-04 RESTRICTED OPTIONS (SA) 3.875 90 13,358 13,358 51,763 $25,318
15-Nov-95 14-Nov-04 RESTRICTED OPTIONS (MG) 3.875 90 15,000 15,000 58,126 $28,431
02-Jan-92 02-Jan-97 RESTRICTED OPTIONS (Consultants) 35.00 90 83,929 83,929 2,937,515 $1,436,828
02-Jan-92 02-Jan-97 RESTRICTED OPTIONS CANCELLED 35.00 90 (6,250) (6,250) (218,750) ($106,997)
30-Jun-93 02-Jan-97 RESTRICTED OPTIONS EXERCISED 35.00 90 (58,929) (58,929) (2,062,515)($1,008,839)
30-Jun-93 02-Jan-97 RESTRICTED OPTIONS (Consult) Reverse 35.00 90 (16,875) (16,875) (590,625) ($288,893)
30-Jun-93 02-Jan-97 RESTRICTED OPTIONS CANCELLED 35.00 90 (1,250) (1,250) (43,750) ($21,399)
07-Sep-94 07-Sep-04 RESTRICTED OPTIONS (Consultants R.R.) 3.75 90 150,000 150,000 562,500 $275,136
01-Feb-95 01-Feb-05 RESTRICTED OPTIONS (Consultants R.R.) 3.75 90 150,000 150,000 562,500 $275,136
07-Sep-94 07-Sep-04 RESTRICTED OPTIONS CANCELLED 3.75 90 (150,000) (150,000) (562,500) ($275,136)
01-Feb-95 01-Feb-05 RESTRICTED OPTIONS CANCELLED 3.75 90 (150,000) (150,000) (562,500) ($275,136)
15-Nov-95 14-Nov-04 RESTRICTED OPTIONS (Consultants R.R.) 2.50 90 300,000 300,000 750,000 $366,848
01-Aug-95 31-Jul-05 RESTRICTED OPTIONS (Consultants LPI) 4.45 90 41,250 41,250 183,563 $89,786
01-Feb-95 01-Feb-05 RESTRICTED OPTIONS (Director - SL) 3.75 90 25,000 25,000 93,750 $45,856
01-Feb-95 01-Feb-05 RESTRICTED OPTIONS (SL) Reverse Split 3.75 90 (22,500) (22,500) (84,375) ($41,270)
01-Feb-95 01-Feb-05 RESTRICTED OPTIONS (SL) CANCELLED 3.75 90 (2,500) (2,500) (9,375) ($4,586)
01-Feb-95 01-Feb-05 RESTRICTED OPTIONS (Director - JB) 3.75 90 25,000 25,000 93,750 $45,856
01-Feb-95 01-Feb-05 RESTRICTED OPTIONS (JB) Reverse Split 3.75 90 (22,500) (22,500) (84,375) ($41,270)
01-Feb-95 01-Feb-05 RESTRICTED OPTIONS (JB) EXERCISED 3.75 90 (2,500) (2,500) (9,375) ($4,586)
15-Nov-95 14-Nov-04 RESTRICTED OPTIONS (Director - SL) 3.75 90 2,500 2,500 9,375 $4,586
17-Jul-96 14-Nov-04 RESTRICTED OPTIONS (SL) EXERCISED 3.75 90 (2,500) (2,500) (9,375) ($4,586)
28-Aug-92 28-Aug-97 EMPLOYMENT AGREEMENT OPTIONS (R.B.) 3.75 90 133,333 133,333 499,999 $244,565
31-Aug-94 31-Aug-04 EMPLOYMENT AGREEMENT OPTIONS (R.B.) 3.75 90 300,000 300,000 1,125,000 $550,272
01-Feb-95 01-Feb-05 EMPLOYMENT AGREEMENT OPTIONS (R.B.) 3.75 90 300,000 300,000 1,125,000 $550,272
28-Aug-92 28-Aug-97 EMPLOYMENT OPTIONS (R.B.) CANCELLED 3.75 90 (733,333) (733,333) (2,749,999)($1,345,108)
28-Aug-92 28-Aug-97 EMPLOYMENT AGREEMENT OPTIONS (R.F.) 3.75 90 85,067 85,067 319,001 $156,033
31-Aug-94 31-Aug-04 EMPLOYMENT AGREEMENT OPTIONS (R.F.) 3.75 90 100,000 100,000 375,000 $183,424
01-Feb-95 01-Feb-05 EMPLOYMENT AGREEMENT OPTIONS (R.F.) 3.75 90 100,000 100,000 375,000 $183,424
28-Aug-92 28-Aug-97 EMPLOYMENT OPTIONS (R.F.) CANCELLED 3.75 90 (285,067) (285,067) (1,069,001) ($522,881)
28-Aug-92 28-Aug-97 EMPLOYMENT AGREEMENT OPTIONS (H.L.) 5.00 90 181,600 181,600 908,000 $444,130
28-Aug-92 28-Aug-97 EMPLOYMENT OPTIONS (H.L.) CANCELLED 5.00 90 (181,600) (181,600) (908,000) ($444,130)
04-Mar-94 31-Mar-99 EMPLOYMENT AGREEMENT OPTIONS (T.H.) 3.75 90 300,000 300,000 1,125,000 $550,272
04-Mar-94 31-Mar-99 EMPLOYMENT OPTIONS (T.H.) CANCELLED 3.75 90 (300,000) (300,000) (1,125,000) ($550,272)
04-Mar-94 31-Mar-99 EMPLOYMENT AGREEMENT OPTIONS (J.C.) 3.75 90 300,000 300,000 1,125,000 $550,272
04-Mar-94 31-Mar-99 EMPLOYMENT OPTIONS (J.C.) CANCELLED 3.75 90 (300,000) (300,000) (1,125,000) ($550,272)
15-Nov-95 14-Nov-04 EMPLOYMENT AGREEMENT OPTIONS (R.B.) 2.50 90 733,333 733,333 1,833,333 $896,739
15-Nov-95 14-Nov-04 EMPLOYMENT OPTIONS (R.B.) EXERCISED 2.50 90 (25,000) (25,000) (62,500) ($30,571)
15-Nov-95 14-Nov-04 EMPLOYMENT AGREEMENT OPTIONS (R.F.) 2.50 90 285,067 285,067 712,668 $348,587
15-Nov-95 14-Nov-04 EMPLOYMENT OPTIONS (R.F.) EXERCISED 2.50 90 (25,000) (25,000) (62,500) ($30,571)
15-Nov-95 14-Nov-04 EMPLOYMENT AGREEMENT OPTIONS (T.H.) 2.50 90 300,000 300,000 750,000 $366,848
15-Nov-95 14-Nov-04 EMPLOYMENT AGREEMENT OPTIONS (J.C.) 2.50 90 300,000 300,000 750,000 $366,848
30-Mar-92 NONE BRIDGE LOAN SHARES ISSUABLE 0.008 90 30,000 30,000 240 $117
23-Jun-92 NONE BRIDGE LOAN SHARES ISSUABLE 0.008 90 4,500 4,500 36 $18
30-Oct-92 NONE BRIDGE LOAN SHARES ISSUED 0.008 90 (34,500) (34,500) (276) ($135)
30-Oct-92 30-Oct-95 INCENTIVE OPTIONS (RAS) 5.25 90 30,500 30,500 160,125 $78,322
30-Oct-92 30-Oct-95 INCENTIVE OPTIONS (RAS) EXPIRED 5.25 90 (30,500) (30,500) (160,125) ($78,322)
16-Feb-94 28-Feb-99 INCENTIVE OPTIONS (RAS) 2.625 90 37,000 37,000 97,125 $47,507
16-Feb-94 28-Feb-99 INCENTIVE OPTIONS (RAS) CANCELLED 2.625 90 (18,500) (18,500) (48,563) ($23,753)
16-Feb-94 28-Feb-99 INCENTIVE OPTIONS (RAS) REVERSE SPLIT 2.625 90 (16,650) (16,650) (43,706) ($21,378)
20-Apr-94 30-Apr-99 INCENTIVE OPTIONS (UVS) 2.625 90 35,000 35,000 91,875 $44,939
20-Apr-94 30-Apr-99 INCENTIVE OPTIONS (UVS) CANCELLED 2.625 90 (15,500) (15,500) (40,688) ($19,901)
20-Apr-94 30-Apr-99 INCENTIVE OPTIONS (USS) REVERSE SPLIT 2.625 90 (17,550) (17,550) (46,069) ($22,534)
22-Dec-94 22-Dec-99 INCENTIVE OPTIONS (UVS) 2.625 90 13,000 13,000 34,125 $16,692
22-Dec-94 22-Dec-99 INCENTIVE OPTIONS (UVS) CANCELLED 2.625 90 (8,000) (8,000) (21,000) ($10,272)
22-Dec-94 22-Dec-99 INCENTIVE OPTIONS (USS) REVERSE SPLIT 2.625 90 (4,500) (4,500) (11,813) ($5,778)
27-Nov-95 27-Nov-01 INCENTIVE OPTIONS (USA) 2.625 90 62,750 62,750 164,719 $80,569
27-Nov-95 27-Nov-01 INCENTIVE OPTIONS - EXPIRED 2.625 90 (9,000) (9,000) (23,625) ($11,556)
16-Dec-96 27-Nov-01 INCENTIVE OPTIONS 2.625 90 8,500 8,500 22,313 $10,914
16-Dec-96 27-Nov-01 NONQUALIFIED STOCK OPTIONS 0.10 90 56,350 56,350 5,635 $2,756
16-Dec-96 27-Nov-01 NONQUALIFIED STOCK OPTIONS - Exercised 0.10 90 (37,600) (37,600) (3,760) ($1,839)
16-Dec-96 27-Nov-01 NONQUALIFIED STOCK OPTIONS 2.625 90 20,500 20,500 53,813 $26,321
30-Oct-92 22-Oct-97 CLASS A WARRANTS - IPO 4.50 90 80,000 80,000 360,000 $176,087
30-Oct-92 22-Oct-97 CLASS B WARRANTS - IPO 5.50 90 80,000 80,000 440,000 $215,217
25-Nov-92 22-Oct-97 CLASS A WARRANTS - OVER ALLOTMENT 4.50 90 12,000 12,000 54,000 $26,413
25-Nov-92 22-Oct-97 CLASS B WARRANTS - OVER ALLOTMENT 5.50 90 12,000 12,000 66,000 $32,283
30-Oct-92 30-Oct-96 CLASS A UNDERWRITER WARRANTS 4.50 90 8,000 8,000 36,000 $17,609
30-Oct-92 22-Oct-97 CLASS A WTS UNDERLYING U/W WTS 4.50 90 8,000 8,000 36,000 $17,609
30-Oct-92 22-Oct-97 CLASS B WTS UNDERLYING U/W WTS 5.50 90 8,000 8,000 44,000 $21,522
25-Nov-92 25-Nov-96 CLASS A UNDERWRITER WARRANTS 4.50 90 1,200 1,200 5,400 $2,641
25-Nov-92 22-Oct-97 CLASS A WTS UNDERLYING U/W WTS 4.50 90 1,200 1,200 5,400 $2,641
25-Nov-92 22-Oct-97 CLASS B WTS UNDERLYING U/W WTS 5.50 90 1,200 1,200 6,600 $3,228
16-Feb-93 NONE WARRANTS 0.008 90 50,000 50,000 400 $196
30-Jun-93 NONE WARRANTS EXERCISED 0.008 90 (50,000) (50,000) (400) ($196)
24-Mar-93 31-Mar-96 CLASS B WARRANTS 5.50 90 17,858 17,858 98,219 $48,042
31-Mar-93 31-Mar-96 CLASS B WARRANTS 5.50 90 19,286 19,286 106,073 $51,884
07-Apr-93 31-Mar-96 CLASS B WARRANTS 5.50 90 14,643 14,643 80,537 $39,393
22-Apr-93 31-Mar-96 CLASS B WARRANTS 5.50 90 17,143 17,143 94,287 $46,118
26-Apr-93 31-Mar-96 CLASS B WARRANTS 5.50 90 2,142 2,142 11,781 $5,762
22-Nov-93 31-Mar-96 CLASS B WARRANTS-PLACEMENT AGENT 5.50 90 7,108 7,108 39,094 $19,122
22-Nov-93 31-Mar-96 CLASS A WARRANTS (ORIG HOLDERS) 4.50 90 14,215 14,215 63,968 $31,288
15-Dec-93 30-Nov-96 CLASS A WARRANTS 4.50 90 133,000 133,000 598,500 $292,745
15-Dec-93 30-Nov-96 CLASS B WARRANTS 5.50 90 133,000 133,000 731,500 $357,799
15-Dec-93 30-Nov-96 CLASS A WARRANTS-PLACEMENT AGENT 4.50 90 13,300 13,300 59,850 $29,274
15-Dec-93 30-Nov-96 CLASS B WARRANTS-PLACEMENT AGENT 5.50 90 13,300 13,300 73,150 $35,780
15-Dec-93 30-Nov-96 CLASS B WARRANTS-PLACEMENT AGENT 5.50 90 2,000 2,000 11,000 $5,380
30-Dec-93 30-Nov-96 CLASS A WARRANTS 4.50 90 71,000 71,000 319,500 $156,277
30-Dec-93 30-Nov-96 CLASS B WARRANTS 5.50 90 71,000 71,000 390,500 $191,005
30-Dec-93 30-Nov-96 CLASS A WARRANTS-PLACEMENT AGENT 4.50 90 7,100 7,100 31,950 $15,628
30-Dec-93 30-Nov-96 CLASS B WARRANTS-PLACEMENT AGENT 5.50 90 7,100 7,100 39,050 $19,101
18-Jan-94 30-Nov-96 CLASS A WARRANTS 4.50 90 11,000 11,000 49,500 $24,212
18-Jan-94 30-Nov-96 CLASS B WARRANTS 5.50 90 11,000 11,000 60,500 $29,592
18-Jan-94 30-Nov-96 CLASS A WARRANTS-PLACEMENT AGENT 4.50 90 1,100 1,100 4,950 $2,421
18-Jan-94 30-Nov-96 CLASS B WARRANTS-PLACEMENT AGENT 5.50 90 1,100 1,100 6,050 $2,959
08-Feb-94 30-Nov-96 CLASS A WARRANTS 4.50 90 3,000 3,000 13,500 $6,603
08-Feb-94 30-Nov-96 CLASS B WARRANTS 5.50 90 3,000 3,000 16,500 $8,071
08-Feb-94 30-Nov-96 CLASS A WARRANTS-PLACEMENT AGENT 4.50 90 300 300 1,350 $660
08-Feb-94 30-Nov-96 CLASS B WARRANTS-PLACEMENT AGENT 5.50 90 300 300 1,650 $807
10-Mar-95 15-Jan-00 CLASS C WARRANTS - 12% 3.75 90 20,000 20,000 75,000 $36,685
17-Mar-95 15-Jan-00 CLASS C WARRANTS - 12% 3.75 90 10,000 10,000 37,500 $18,342
07-Apr-95 15-Jan-00 CLASS C WARRANTS - 12% 3.75 90 4,500 4,500 16,875 $8,254
21-Apr-95 15-Jan-00 CLASS C WARRANTS - 12% 3.75 90 2,000 2,000 7,500 $3,668
10-Mar-96 15-Jan-00 CLASS C WARRANTS - EXERCISED 12% 3.75 90 (20,000) (20,000) (75,000) ($36,685)
17-Mar-96 15-Jan-00 CLASS C WARRANTS - EXERCISED 12% 3.75 90 (9,300) (9,300) (34,875) ($17,058)
31-Mar-95 15-Jan-00 CLASS C WARRANTS-PLACEMENT AGENTS 3.75 90 20,000 20,000 75,000 $36,685
31-Mar-96 15-Jan-00 CLASS A WARRANTS-PLACEMENT AGENTS 3.25 90 92,000 92,000 299,000 $146,250
27-Aug-96 CLASS A WARRANTS-EXERCISED 3.25 90 (14,000) (14,000) (45,500) ($22,255)
28-Jul-95 30-Jun-97 CLASS C WARRANTS - McGinn 13.8% 3.26 90 6,667 6,667 21,734 $10,631
04-Oct-95 30-Jun-97 CLASS C WARRANTS - McGinn 13.8% 3.26 90 6,667 6,667 21,734 $10,631
01-Dec-95 30-Jun-97 CLASS C WARRANTS - McGinn 13.8% 3.26 90 6,666 6,666 21,731 $10,629
10-Jan-96 31-Dec-97 CLASS C WARRANTS - 10% 5.625 90 27,000 27,000 151,875 $74,287
22-Jan-96 31-Dec-97 CLASS C WARRANTS - 10% 5.625 90 17,000 17,000 95,625 $46,773
31-Jan-96 31-Dec-97 CLASS C WARRANTS - 10% 5.625 90 12,000 12,000 67,500 $33,016
28-Feb-96 31-Dec-97 CLASS C WARRANTS - 10% 5.625 90 5,000 5,000 28,125 $13,757
10-Jan-96 31-Dec-97 CLASS C WARRANTS - EXERCISED 10% 5.625 90 (27,000) (27,000) (151,875) ($74,287)
22-Jan-96 31-Dec-97 CLASS C WARRANTS - EXERCISED 10% 5.625 90 (1,500) (1,500) (8,438) ($4,127)
03-Jul-96 CLASS C WARRANTS - EXERCISED 5.625 90 (5,000) (5,000) (28,125) ($13,757)
17-Jul-96 CLASS C WARRANTS - EXERCISED 6.00 90 (20,000) (20,000) (120,000) ($58,696)
17-Jul-96 CLASS C WARRANTS - EXERCISED 5.625 90 (2,000) (2,000) (11,250) ($5,503)
25-Jul-96 CLASS C WARRANTS - EXERCISED 5.625 90 (1,000) (1,000) (5,625) ($2,751)
25-Jul-96 CLASS C WARRANTS - EXERCISED 3.875 90 (1,000) (1,000) (3,875) ($1,895)
03-Sep-96 CLASS C WARRANTS - EXERCISED 5.625 90 (1,000) (1,000) (5,625) ($2,751)
30-Jun-96 30-Jun-01 WARRANTS - ECC CONSULTING 5.125 90 200,000 200,000 1,025,000 $501,359
30-Jun-96 01-Jul-00 WARRANTS - BWF CONSULTING - MELLON 4.50 90 100,000 100,000 450,000 $220,109
30-Jun-96 30-Jun-01 WARRANTS - ZANNETT CAPITAL - PREFERRED 6.13 90 500,000 500,000 3,065,000 $1,499,185
30-Jun-96 30-Jun-01 WARRANTS - ZANNETT CAPITAL - PREFERRED 8.00 90 250,000 250,000 2,000,000 $978,261
30-Jun-96 30-Jun-00 WARRANTS - BWF CONSULTING - PREFERRED 4.50 90 75,000 75,000 337,500 $165,082
30-Jun-96 30-Jun-06 WARRANTS - PUT OPTIONS - MELLON 3.25 90 1,032,135 1,032,135 3,354,439 $1,640,758
--------- --------- --------- ---------
TOTAL COMMON STOCK EQUIVALENTS 5,114,863 5,114,863 $19,834,018 $9,701,420
========= ========= ========= =========
OTHER POTENTIALLY DILUTIVE SECURITIES:
24-Mar-93 31-Mar-96 $625,000 CONVERTIBLE NOTES 7% 3.50 90 178,571 178,571 $624,999 $305,706
31-Mar-93 31-Mar-96 $675,000 CONVERTIBLE NOTES 7% 3.50 90 192,857 192,857 $675,000 $330,163
07-Apr-93 31-Mar-96 $512,500 CONVERTIBLE NOTES 7% 3.50 90 146,429 146,429 $512,502 $250,680
22-Apr-93 31-Mar-96 $600,000 CONVERTIBLE NOTES 7% 3.50 90 171,429 171,429 $600,002 $293,479
26-Apr-93 31-Mar-96 $75,000 CONVERTIBLE NOTES 7% 3.50 90 21,428 21,428 $74,998 $36,684
15-Dec-93 30-Nov-96 $1,662,500 CONVERTIBLE NOTES 5% 1.25 90 1,330,000 1,330,000 $1,662,500 $813,179
30-Dec-93 30-Nov-96 $887,500 CONVERTIBLE NOTES 5% 1.25 90 710,000 710,000 $887,500 $434,103
18-Jan-94 30-Nov-96 $137,500 CONVERTIBLE NOTES 5% 1.25 90 110,000 110,000 $137,500 $67,255
08-Feb-94 30-Nov-96 $37,500 CONVERTIBLE NOTES 5% 1.25 90 30,000 30,000 $37,500 $18,342
10-Mar-95 31-Dec-96 $500,000 CONVERTIBLE NOTES 12% 2.50 90 200,000 200,000 $500,000 $244,565
17-Mar-95 31-Dec-96 $250,000 CONVERTIBLE NOTES 12% 2.50 90 100,000 100,000 $250,000 $122,283
07-Apr-95 31-Dec-96 $112,500 CONVERTIBLE NOTES 12% 2.50 90 45,000 45,000 $112,500 $55,027
21-Apr-95 31-Dec-96 $50,000 CONVERTIBLE NOTES 12% 2.50 90 20,000 20,000 $50,000 $24,457
Adjust for Reverse Stock Split/Price 90 (2,394,238)(2,394,238)($4,256,309) $0
10-Jan-96 31-Dec-97 $675,000 CONVERTIBLE NOTES 10% 4.50 90 150,000 150,000 $675,000 $330,163
22-Jan-96 31-Dec-97 $425,000 CONVERTIBLE NOTES 10% 4.50 90 94,444 94,444 $425,000 $207,880
31-Jan-96 31-Dec-97 $300,000 CONVERTIBLE NOTES 10% 4.50 90 66,667 66,667 $300,000 $146,739
28-Feb-96 31-Dec-97 $125,000 CONVERTIBLE NOTES 10% 4.50 90 27,778 27,778 $125,000 $61,141
28-Jul-95 30-Jun-97 $145,000 CONVERTIBLE NOTES 13.8% 3.26 90 44,479 44,479 $145,002 $70,925
04-Oct-95 30-Jun-97 $145,000 CONVERTIBLE NOTES 13.8% 3.26 90 44,479 44,479 $145,002 $70,925
01-Dec-95 30-Jun-97 $145,000 CONVERTIBLE NOTES 13.8% 3.26 90 44,478 44,478 $144,998 $70,923
12-May-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (3,572) (3,572) ($12,502) ($6,115)
17-May-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (6,786) (6,786) ($23,751) ($11,617)
21-May-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (715) (715) ($2,503) ($1,224)
25-May-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (1,429) (1,429) ($5,002) ($2,446)
01-Jun-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (1,072) (1,072) ($3,752) ($1,835)
02-Jun-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (6,072) (6,072) ($21,252) ($10,395)
18-Jun-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (5,714) (5,714) ($19,999) ($9,782)
21-Jun-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (2,143) (2,143) ($7,501) ($3,669)
23-Jun-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (2,858) (2,858) ($10,003) ($4,893)
25-Jun-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (1,072) (1,072) ($3,752) ($1,835)
30-Jun-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (2,143) (2,143) ($7,501) ($3,669)
06-Jul-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (358) (358) ($1,253) ($613)
09-Jul-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (7,858) (7,858) ($27,503) ($13,453)
20-Jul-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (1,429) (1,429) ($5,002) ($2,446)
29-Jul-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (2,858) (2,858) ($10,003) ($4,893)
04-Aug-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (1,072) (1,072) ($3,752) ($1,835)
05-Aug-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (358) (358) ($1,253) ($613)
13-Aug-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (1,072) (1,072) ($3,752) ($1,835)
20-Aug-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (2,143) (2,143) ($7,501) ($3,669)
25-Aug-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (715) (715) ($2,503) ($1,224)
07-Sep-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (1,072) (1,072) ($3,752) ($1,835)
18-Oct-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (2,143) (2,143) ($7,501) ($3,669)
19-Oct-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (1,429) (1,429) ($5,002) ($2,446)
28-Oct-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (2,143) (2,143) ($7,501) ($3,669)
03-Nov-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (2,500) (2,500) ($8,750) ($4,280)
24-Nov-93 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (1,429) (1,429) ($5,002) ($2,446)
31-Jan-94 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (715) (715) ($2,503) ($1,224)
21-Mar-94 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (715) (715) ($2,503) ($1,224)
29-Mar-94 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (357) (357) ($1,250) ($611)
11-Mar-96 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (14,286) (14,286) ($50,001) ($24,457)
22-Mar-96 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (7,143) (7,143) ($25,001) ($12,229)
27-Mar-96 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (7,143) (7,143) ($25,001) ($12,229)
09-Apr-96 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (7,144) (7,144) ($25,004) ($12,230)
26-Apr-96 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 4.50 90 (2,778) (2,778) ($12,501) ($6,115)
10-Jun-96 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 1.50 90 (33,333) (33,333) ($50,000) ($24,456)
12-Jun-96 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 3.50 90 (3,571) (3,571) ($12,499) ($6,113)
14-Jun-96 31-Mar-96 CONVERSION OF CONVERTIBLE NOTES 7% 5.75 90 (4,348) (4,348) ($25,001) ($12,229)
14-Jul-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 90 (11,000) (11,000) ($13,750) ($6,726)
21-Jul-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 90 (46,000) (46,000) ($57,500) ($28,125)
22-Jul-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 90 (16,000) (16,000) ($20,000) ($9,783)
26-Jul-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 90 (26,000) (26,000) ($32,500) ($15,897)
02-Aug-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 90 (13,000) (13,000) ($16,250) ($7,948)
11-Aug-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 90 (10,000) (10,000) ($12,500) ($6,114)
16-Aug-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 90 (2,000) (2,000) ($2,500) ($1,223)
18-Aug-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 90 (8,000) (8,000) ($10,000) ($4,891)
24-Aug-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 90 (16,000) (16,000) ($20,000) ($9,783)
26-Aug-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 90 (18,000) (18,000) ($22,500) ($11,005)
06-Sep-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 90 (13,000) (13,000) ($16,250) ($7,948)
09-Sep-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 90 (2,000) (2,000) ($2,500) ($1,223)
23-Sep-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 90 (8,000) (8,000) ($10,000) ($4,891)
04-Oct-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 90 (2,000) (2,000) ($2,500) ($1,223)
07-Oct-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 90 (2,000) (2,000) ($2,500) ($1,223)
14-Oct-94 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.25 90 (4,000) (4,000) ($5,000) ($2,446)
22-Mar-96 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 3.50 90 (28,572) (28,572) ($100,002) ($48,914)
09-Apr-96 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 3.50 90 (7,143) (7,143) ($25,001) ($12,229)
01-May-96 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 5.00 90 (2,500) (2,500) ($12,500) ($6,114)
10-Jun-96 30-Nov-96 CONVERSION OF CONVERTIBLE NOTES 5% 1.50 90 (33,333) (33,333) ($50,000) ($24,456)
02-Dec-96 30-Nov-96 CONVERTIBLE NOTES 5% PAID IN FULL 1.25 90 (10,000) (10,000) ($12,500) ($6,114)
09-Nov-95 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 3.00 90 (75,000) (75,000) ($225,000) ($110,054)
13-Nov-95 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 2.750 90 (9,091) (9,091) ($25,000) ($12,228)
16-Nov-95 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 2.00 90 (74,306) (74,306) ($148,612) ($72,691)
17-Nov-95 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 2.00 90 (75,000) (75,000) ($150,000) ($73,370)
21-Nov-95 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 2.25 90 (83,339) (83,339) ($187,513) ($91,718)
21-Nov-95 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 2.25 90 (11,112) (11,112) ($25,002) ($12,229)
21-Nov-95 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 2.00 90 (12,500) (12,500) ($25,000) ($12,228)
21-Nov-95 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 2.25 90 (38,891) (38,891) ($87,505) ($42,801)
30-Apr-96 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 3.75 90 (6,667) (6,667) ($25,001) ($12,229)
01-May-96 31-Dec-96 CONVERSION OF CONVERTIBLE NOTES 12% 3.75 90 (3,334) (3,334) ($12,503) ($6,115)
15-May-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 90 (149,998) (149,998) ($674,991) ($330,159)
16-May-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 90 (52,774) (52,774) ($237,483) ($116,160)
17-May-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 90 (11,111) (11,111) ($50,000) ($24,456)
22-May-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 90 (41,663) (41,663) ($187,484) ($91,704)
31-May-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 90 (5,555) (5,555) ($24,998) ($12,227)
04-Jun-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 90 (13,887) (13,887) ($62,492) ($30,566)
10-Jun-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 90 (5,555) (5,555) ($24,998) ($12,227)
12-Jun-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 90 (30,569) (30,569) ($137,561) ($67,285)
13-Jun-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 90 (11,111) (11,111) ($50,000) ($24,456)
20-Jun-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 90 (5,555) (5,555) ($24,997) ($12,227)
03-Jul-96 31-Dec-97 CONVERSION OF CONVERTIBLE NOTES 10% 4.50 90 (11,110) (11,110) ($49,994) ($24,454)
03-Jun-96 30-Jun-97 CONVERSION OF CONVERTIBLE NOTES 13.8% 3.26 90 (133,436) (133,436) ($435,000) ($212,772)
30-Jun-96 01-Jun-99 Preferred Stock 5.00 90 2,010,000 2,010,000 $10,050,000 $4,915,761
19-Aug-96 01-Jun-99 CONVERSION OF PREFERRED STOCK 5.00 90 (5,360) (5,360) ($26,800) ($13,109)
17-Sep-96 01-Jun-99 CONVERSION OF PREFERRED STOCK 5.00 90 (11,792) (11,792) ($58,960) ($28,839)
19-Sep-96 01-Jun-99 CONVERSION OF PREFERRED STOCK 5.00 90 (3,752) (3,752) ($18,760) ($9,176)
20-Sep-96 01-Jun-99 CONVERSION OF PREFERRED STOCK 5.00 90 (97,016) (97,016) ($485,080) ($237,267)
23-Sep-96 01-Jun-99 CONVERSION OF PREFERRED STOCK 5.00 90 (18,760) (18,760) ($93,800) ($45,880)
22-Nov-96 01-Jun-99 CONVERSION OF PREFERRED STOCK 5.00 90 (26,800) (26,800) ($134,000) ($65,543)
--------- --------- --------- ---------
TOTAL OTHER POTENTIALLY DILUTIVE SECURITIES 1,896,521 1,896,521 $9,295,107 $6,628,408
========= ========= ========= =========
</TABLE>
RESPONSE USA, INC.
EARNINGS PER SHARE
For the Quarter Ended March 31, 1997
EARNINGS PER SHARE COMPUTATIONS:
MODIFIED TREASURY STOCK METHOD:
TOTAL EXERCISE PROCEEDS $9,701,420
---------
PERIOD-END OUTSTANDING SHARES 5,304,356
---------
20% OF PERIOD-END OUTSTANDING SHARES 1,060,871
---------
AVERAGE SHARE PRICE DURING PERIOD $3.57
---------
PROCEEDS USED TO PURCHASE SHARES 3,787,310
---------
REMAINING PROCEEDS 5,914,110
---------
PROCEEDS USED TO RETIRE AVERAGE DEBT 10,451,669
---------
REMAINING PROCEEDS INVESTED ($4,537,559)
=========
ADJUSTED INCOME (LOSS):
NET INCOME (LOSS) ($1,260,726)
ACCRETION TO PREFERRED STOCK 0
DEEMED DIVIDENDS (169,891)
------------
ADJUSTED INCOME (LOSS) (1,430,617)
INTEREST (EXPENSE) ON RETIRED DEBT (10.25%) 267,824
INTEREST INCOME ON PROCEEDS INVESTED (2.5%) 0
TAX EFFECT OF INTEREST ADJUSTMENTS (40%) (107,130)
---------
NET (LOSS) FOR EARNINGS PER SHARE PURPOSES (1,269,923)
---------
SHARES:
WEIGHTED AVERAGE SHARES OUTSTANDING 4,442,241
WEIGHTED AVERAGE EQUIVALENT SHARES OUTSTANDING 5,114,863
20% OF PERIOD-END OUTSTANDING SHARES (1,060,871)
---------
TOTAL SHARES FOR EARNINGS PER SHARE PURPOSES 8,496,233
---------
NET INCOME (LOSS) PER SHARE ($0.15)
=========
MAXIMUM INCOME (MINIMUM LOSS) PER SHARE:
ADJUSTED INCOME (LOSS) ($1,430,617)
---------
WEIGHTED AVERAGE SHARES OUTSTANDING 4,442,241
---------
NET INCOME (LOSS) PER SHARE ($0.32)
=========
