<PAGE>
Form 10-Q
---------
SECURITIES AND EXCHANGE COMMISSION
----------------------------------
Washington, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
-------------
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________________to____________________
Commission File Number 0-24320
---------------
NAPRO BIOTHERAPEUTICS, INC.
---------------------------
(Exact name of registrant as specified in its charter)
Delaware 84-1187753
- --------------------------------------------------------------------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization Identification No.)
6304 Spine Road Unit A, Boulder, Colorado 80301
- --------------------------------------------------------------------------------
(Address of principal executive offices) (zip code)
(303) 530-3891
-------------------------------------------------------------------------
(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
----- -----
The number of shares outstanding of each of the issuer's classes of common stock
as of the latest practicable date:
Class Outstanding at August 12, 1996
----- ------------------------------
Common Stock, $.0075 par value 12,025,405
Non-voting Common Stock, $.0075 par value 395,000
TOTAL number of pages in document - 13
----
Exhibit Index located on page - 11
----
<PAGE>
NAPRO BIOTHERAPEUTICS, INC. AND SUBSIDIARIES
--------------------------------------------
TABLE OF CONTENTS
-----------------
PAGE NO.
--------
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
Consolidated Balance Sheets as of June 30, 1996,
and December 31, 1995 2
Consolidated Statements of Operations for the
three months and six months ended
June 30, 1996 and 1995 4
Consolidated Statements of Cash Flows for the
six months ended June 30, 1996 and 1995 5
Notes to Consolidated Financial Statements 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS 7
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS 10
ITEM 2. CHANGES IN SECURITIES 10
ITEM 3. DEFAULTS UPON SENIOR SECURITIES 10
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 10
ITEM 5. OTHER INFORMATION 11
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 11
SIGNATURES 12
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
NAPRO BIOTHERAPEUTICS, INC. AND SUBSIDIARIES
--------------------------------------------
CONSOLIDATED BALANCE SHEETS
---------------------------
ASSETS
------
JUNE 30, DECEMBER 31,
1996 1995
---- ----
(UNAUDITED)
Current assets:
Cash and cash equivalents $ 4,849,685 $ 7,133,390
Securities held to maturity 260,883 667,000
Accounts receivable 975,100 325,814
Inventory 1,689,091 1,211,959
Prepaid expenses, deposits and
other 283,236 310,451
----------- -----------
Total current assets 8,057,995 9,648,614
Property and equipment, net 3,150,796 1,782,164
Restricted cash 406,117 123,750
Receivables from related parties 18,487 18,487
Other assets 503,300 380,335
----------- -----------
Total assets $12,136,695 $11,953,350
=========== ===========
2
<PAGE>
NAPRO BIOTHERAPEUTICS, INC. AND SUBSIDIARIES
--------------------------------------------
CONSOLIDATED BALANCE SHEETS
---------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
June 30, December 31,
1996 1995
---- ----
(unaudited)
Current liabilities:
Accounts payable $ 953,371 $ 662,726
Payroll and payroll taxes 190,540 338,032
Capital lease obligations-- current 98,762 105,454
Notes payable -- current portion 35,096 38,801
Deferred revenue 15,431 51,431
------------ ------------
Total current liabilities 1,293,200 1,196,444
Capital lease obligations-- long term 541,269 298,811
Notes payable -- long term 1,166,667 1,150,000
Compensation due to officers and directors 169,358 169,358
------------ ------------
Total long-term liabilities 1,877,294 1,618,169
------------ ------------
Total liabilities 3,170,494 2,814,613
Minority Interest 3,715,139 3,715,139
Stockholders' equity
Series A preferred stock, $0.001
par value:
2,000,000 shares authorized
-- 125,000 shares issued in 1996
(unaudited) and 1995 (preference in
liquidation $1,000,000) 125 125
Non-voting common stock,convertible
on disposition into 400,000 shares of
Common Stock, $.0075 par value;
1,000,000 shares authorized;
400,000 issued and outstanding 3,000 3,000
Common stock, $.0075 par value:
19,000,000 authorized
10,180,405 shares issued in 1996
(unaudited),
8,525,265 issued in 1995 76,353 63,939
Additional paid-in capital 29,840,345 26,675,099
Unearned compensation -- (9,426)
Notes receivable from stockholders (956,221) (924,789)
Deficit (22,027,993) (18,699,803)
Treasury stock -- 144,288 in 1996
(unaudited) and 1995 (1,684,547) (1,684,547)
----------- -----------
Total stockholders' equity 5,251,062 5,423,598
----------- -----------
Total liabilities and stockholders'
equity $ 12,136,695 $ 11,953,350
============ ============
See accompanying notes
3
<PAGE>
NAPRO BIOTHERAPEUTICS, INC, AND SUBSIDIARIES
--------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
-------------------------------------
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
--------------- -------------
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Revenues:
Sales $ 770,400 $1,090,969 $ 1,461,230 $ 2,239,150
Other -- -- -- 708
----------- ---------- ----------- -----------
770,400 1,090,969 1,461,230 2,239,858
Expenses:
Research, development and cost
of products sold 1,403,784 1,097,585 3,189,921 2,440,974
General and administrative 958,505 588,740 1,662,018 1,039,543
----------- ---------- ----------- -----------
2,362,289 1,686,325 4,851,939 3,480,517
----------- ---------- ----------- -----------
Operating loss (1,591,889) (595,356) (3,390,709) (1,240,659)
Other income(expense):
Interest income 106,014 45,121 206,149 93,541
Interest and other expense (82,577) (40,060) (143,630) (80,121)
----------- ---------- ----------- -----------
Net loss $(1,568,452) $ (590,295) $(3,328,190) $(1,227,239)
=========== ========== =========== ===========
Loss per common share $(0.18) $(0.08) $(0.39) $(0.16)
=========== ========== =========== ===========
Weighted average shares outstanding 8,594,156 7,716,998 8,592,501 7,715,211
=========== ========== =========== ===========
</TABLE>
See accompanying notes.
4
<PAGE>
NAPRO BIOTHERAPEUTICS, INC. AND SUBSIDIARIES
--------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
(UNAUDITED)
SIX MONTHS ENDED JUNE 30,
----------------------------------------
1996 1995
---------- ----------
Operating activities
Net loss $(3,328,190) $(1,227,239)
Adjustments to reconcile net loss to
net cash used by operating activities:
Depreciation and amortization 291,072 97,440
Compensation for common stock
and options 9,426 10,672
Loss on disposal of property
and equipment 15,249 43,362
Changes in operating assets and
liabilities:
Accounts receivable (649,286) (557,897)
Inventory (477,132) 625,402
Prepaid expenses,
deposits and other
assets (112,693) 218,737
Accounts payable 290,646 254,128
Accrued liabilities (178,925) 26,253
Deferred revenues (36,000) (300,000)
---------- ---------
Net cash used by operating activities (4,175,833) (809,142)
Investing activities
Transfer of restricted cash 123,750 --
Additions to property and equipment (1,641,343) (532,995)
Proceeds from sale of short-term
investments -- 503,450
---------- ---------
Net cash used by investing activities (1,517,593) (29,545)
Financing activities
Proceeds from notes payable 407,086 664,608
Repayments of notes payable (175,026) (108,369)
Proceeds from sale of common
stock, and exercise of common
stock warrants, net of
offering costs 3,177,661 10,000
---------- ---------
Net cash provided by financing
activities 3,409,721 566,239
---------- ---------
Net decrease in cash and
cash equivalents (2,283,705) (272,448)
Cash and cash equivalents at beginning
of period 7,133,390 892,146
---------- ---------
Cash and cash equivalents at end of
period $ 4,849,685 $ 619,698
========== =========
See accompanying notes.
5
<PAGE>
NAPRO BIOTHERAPEUTICS, INC. AND SUBSIDIARIES
--------------------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
JUNE 30, 1996
(UNAUDITED)
1. Basis of Presentation
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the six month period ended June 30, 1996
are not necessarily indicative of the results that may be expected for the year
ended December 31, 1996. For further information, refer to the consolidated
financial statements and footnotes thereto included in the Company's annual
report on Form 10-K for the year ended December 31, 1995.
2. Inventories June 30, December 31,
1996 1995
---- ----
Raw materials $ 442,662 $ 286,617
Work-in-process 382,004 432,898
Finished goods 864,425 492,444
---------- ------------
$1,689,091 $1,211,959
========== ============
3. Cash Flow Supplemental Disclosures
Six Months Ended June 30,
-------------------------
1996 1995
---- ----
Interest paid $ 69,657 $ 20,760
Deferred revenue converted into long-term debt -- 300,000
4. Common Stock
In June 1996, the Company completed the call of 2,070,000 redeemable public
warrants issued in connection with its August 1994 intial public offering.
630,620 warrants were exercised for cash resulting in $3,073,100 net proceeds to
the Company and the issuance of 630,620 shares of common stock. Additionally,
1,438,720 warrants were exercised in a cash-less exchange of .70 shares of
common stock per warrant, resulting in the issuance of 1,007,102 shares of
common stock. In August 1996, the Company closed a public offering of 1,790,000
shares of its common stock, including 190,000 shares issued to cover over-
allotments, which resulted in net proceeds of approximately $14.1 million to the
Company.
5. Faulding Agreement
Under the Faulding Agreement the Company is paid a fixed sum for NBT
Paclitaxel supplied for noncommercial users, and a fixed percentage of
Faulding's sales price for NBT Paclitaxel supplied to commercial use. The
Company recognizes the corresponding revenue at the time of shipment, based upon
the intended use indicated by Faulding on its purchase orders. Faulding's actual
selling price, however, may differ from the amounts originally budgeted and
indicated to the Company. The Company has received Faulding's reconciliation of
product used during 1995, and has concluded its reserve for any pricing
adjustments is adequate.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The following discussion and analysis provide information which the
Company's management believes is relevant to an assessment and understanding of
the Company's results of operations and financial condition. This discussion
should be read in conjunction with the consolidated financial statements and
notes thereto appearing elsewhere herein as well as with the consolidated
financial statements, notes thereto and the related management's discussion and
analysis of financial condition and results of operations included in the
Company's Annual Report on Form 10-K for the year ended December 31, 1995.
Background
- ----------
Through December 31, 1995, the Company was in the development stage and
had devoted the majority of its efforts to the development and implementation of
its proprietary extraction, isolation and purification ("EIPTM") technology for
producing paclitaxel (referred to in some scientific and medical literature as
"taxol")/1/. Although the majority of the Company's production of paclitaxel
continues to be limited to pilot scale production largely for use in clinical
trials and for research and development purposes, NaPro's strategic marketing
and development partner in Australia, F.H. Faulding & Co., Ltd. ("Faulding"),
received approval to market and began commercial sales of its formulation of the
Company's paclitaxel in January 1995. The Company anticipates its operating
losses will continue until such time, if ever, as the Company is able to
generate sufficient revenues to support its operations.
Results of Operations
- ---------------------
Three months ended June 30, 1996 compared to the three months ended June 30,
1995
Revenues for the three months ended June 30, 1996 were $770,000,
representing a decrease of $321,000 from the three months ended June 30, 1995.
The decrease related primarily to the timing of product shipments. Shipments to
Faulding and Baker Norton Pharmaceuticals, a subsidiary of IVAX Corporation
("IVAX"), may vary significantly on a quarter to quarter basis depending on a
number of factors, including the timing and size of any clinical trials
conducted by either company. This quarter to quarter variability will continue
until stable commercial demand has been established for the product in one of
the Company's major markets. The Company has received Faulding's reconciliation
of product used, and has adequately reserved for any price adjustment.
Research and development and cost of products sold expenses for the three
months ended June 30, 1996 were $1,404,000, representing an increase of $306,000
from the three months ended June 30, 1995. The increase resulted from an
increase in the level of process development and research expenses as well as
higher production costs. The cost to produce paclitaxel, much of which is being
used for clinical research by the Company's strategic marketing and development
partners, is being expensed as process development until the process to be used
to extract the product has been more firmly established.
General and administrative expenses for the three months ended June 30,
1996 were $959,000, an increase of $370,000 from the three months ended June 30,
1995. The increase is primarily attributable to an increase in facility costs
and an increase in administrative and support staff.
Interest income for the three months ended June 30, 1996 was $106,000,
representing an increase
__________________
/1/TAXOL(R) is a registered trademark of Bristol-Myers Squibb Company for an
anti-cancer pharmaceutical preparation containing paclitaxel.
7
<PAGE>
of $61,000 from the three months ended June 30, 1995. The increase is
attributable to increased cash balances associated with the completion of the
Company's private placements in August 1995. (See Liquidity and Capital
Resources).
Interest and other expense for the three months ended June 30, 1996 were
$83,000, representing a increase of $43,000 from the three months ended June 30,
1995. The increase is attributable to interest on increased borrowings on the
equipment lease line.
Six months ended June 30, 1996 compared to the six months ended June 30, 1995
Revenues for the six months ended June 30, 1996 were $1,461,000,
representing a decrease of $779,000 from the six months ended June 30, 1995.
The decrease related primarily to the timing of product shipments. Shipments to
Faulding and IVAX may vary significantly on a quarter to quarter basis depending
on a number of factors, including the timing and size of any clinical trials
conducted by either company. This quarter to quarter variability will continue
until stable commercial demand has been established for the product in one of
the Company's major markets. The Company has received Faulding's reconciliation
of product used during 1995 and has adequately reserved for any price
adjustment.
Research and development and cost of products sold expenses for the six
months ended June 30, 1996 were $3,190,000, representing an increase of $749,000
from the six months ended June 30, 1995. The increase resulted from an increase
in the level of process development and research expenses as well as higher
production costs. The cost to produce paclitaxel, much of which is being used
for clinical research by the Company's strategic marketing and development
partners, is being expensed as process development until the process to be used
to extract the product has been more firmly established.
General and administrative expenses for the six months ended June 30, 1996
were $1,662,000, an increase of $622,000 from the six months ended June 30,
1995. The increase is primarily attributable to an increase in facility costs
and an increase in administrative and support staff.
Interest income for the six months ended June 30, 1996 was $206,000,
representing an increase of $113,000 from the six months ended June 30, 1995.
The increase is attributable to increased cash balances associated with the
completion of the Company's private placements in August 1995. (See Liquidity
and Capital Resources).
Interest and other expense for the six months ended June 30, 1996 were
$144,000, representing a increase of $64,000 from the six months ended June 30,
1995. The increase is attributable to interest on increased borrowings on the
equipment lease line.
Liquidity and Capital Resources
- -------------------------------
The Company's capital requirements have been and will continue to be
significant. At June 30, 1996, the Company had working capital of $6,765,000.
This compared to a working capital balance of $1,530,000 as of June 30, 1995. To
date the Company has been dependent primary on net proceeds of its IPO of
approximately $7.4 million, on private placements of its equity securities
aggregating approximately $18.9 million (including proceeds of approximately
$10.2 million during 1995), on the June 1996 call of warrants aggregating
approximately $3.1 million, and on loans and advances from its stockholders and
strategic business partners to fund its capital requirements. In August 1996,
the Company closed a public offering of 1,790,000 shares of its common stock
with net proceeds to the Company of approximately $14.1 million. This amount
includes 190,000 shares sold to cover over-allotments.
The balance of cash and cash equivalents was $4,850,000 at June 30, 1996.
During the first half of 1996, cash provided by financing activities totaled
$3,410,000, while the cash used by operating and investing activities totaled
$4,176,00 and $1,518,000, respectively. In addition, the Company had short term
investments available of
8
<PAGE>
$261,000.
The Company expended $1.6 million for capital projects during the first
half of 1996, which included the capitalization of $783,000 of plantation costs.
During the remainder of 1996, the Company expects to invest $3.0 million to $4.0
million in plant and equipment, primarily to expand its plantation and upgrade
its current domestic and foreign manufacturing capabilities, as well as to begin
construction of a new large-scale commercial EIPTM manufacturing facility which
is expected to be completed in 1997.
The Company anticipates that its existing capital resources, with the
$14,116,000 in net proceeds from the August 1996 public offering including the
interest earned thereon, will be adequate to fund operations and capital
expenditures until commercial approval of the product is obtained, in the first
quarter of 1998 . If the company is not generating sufficient operating revenues
from the sale of NBT Paclitaxel by the end of the first quarter of 1998, the
Company will need to seek additional financing, of which there can be no
assurance due to numerous factors, including the progress of the Company's
research and development programs, the magnitude and scope of these activities,
the cost of preparing, filing, prosecuting, maintaining and enforcing patent
claims and other strategic partnerships, the establishment of additional
strategic relationships and the cost of manufacturing scale-up. In the event of
any unanticipated future capital requirements, the Company may seek to raise
additional capital. The Company may seek additional long-term financing to fund
capital expenditures should such financing become available on terms acceptable
to the Company.
9
<PAGE>
PART II-OTHER INFORMATION
1 Legal Proceedings:
-----------------
None.
2 Changes in Securities
---------------------
None
3 Defaults upon Senior Securities
-------------------------------
None
4 Submission of Matters to a Vote of Security Holders
---------------------------------------------------
The annual meeting of shareholders was held on July 30, 1996. At this
meeting, 4,587,277 shares of the Company's voting Common Stock were present
in person or by proxy. This represented 53.8% of the Company's outstanding
shares. The following matters were submitted to a vote:
Election of Directors:
----------------------
The following persons were elected to serve as Directors. Class I directors
will serve until the 1997 annual meeting of shareholders; Class II
directors will serve until the 1998 annual meeting of shareholders; and
Class III directors will serve until the 1999 annual meeting of directors.
Class I Directors
Leonard P. Shaykin
Philip Frost, M.D.
Arthur H. Hayes, Jr., M.D.
Class II Directors
E. Garrett Bewkes, Jr.
Vaughn D. Bryson
Patricia A. Pilia, Ph.D.
Class III Directors
Sterling K. Ainsworth, Ph.D.
Mark B. Hacken
Richard C. Pfenniger, Jr.
4,574,677 shares were voted to elect all of these directors. 12,600
shares withheld their vote from all of these directors.
Ratification of Amendments to the Company's Amended and Restated
----------------------------------------------------------------
Certificate of Incorporation:
-----------------------------
The shareholders voted on proposed amendments to the Company's Amended and
Restated Certificate of Incorporation to:
(a) classify the Board of Directors into three classes;
(b) provide that directors may be removed only for cause and only with
the approval of the holders of at least of 80% of the voting power of the
Company; and
(c) require concurrence of the holders of at least 80% of the voting
power of the Company to alter, amend or repeal, or to adopt any provision
inconsistent with the foregoing amendments.
These amendments were ratified by a vote of 4,435,475 for and 143,902
against, with 7,900 abstaining.
10
<PAGE>
Ratification of Amendments to the Company's 1994 Long-Term Performance
----------------------------------------------------------------------
Incentive Plan:
---------------
The shareholders voted on proposed amendments to the Company's 1994 Long-
Term Performance Incentive Plan (the "1994 Plan") to:
(a) increase the maximum number of shares of Common Stock issuable as
awards under the Plan from 375,000 to 875,000 (of which 180,000 shares will
be reserved for issuance to non-employee directors under the formula
provisions of the 1994 Plan);
(b) provide that the maximum number of underlying shares of Common
Stock that any participant may be granted under awards under the 1994 Plan
in any one taxable year will be 200,000 shares;
(c) increase the number of shares of Common Stock underlying automatic
grants of non-qualified stock options to non-employee directors from 5,000
to 10,000 shares;
(d) provide for automatic grants of non-qualified stock options to
purchase 10,000 shares of Common Stock to each director who serves as
chairman of the Audit, Compensation and Strategic Planning committees of
the Board of Directors;
(e) provide for a period of 90 days following termination of an
employee's relationship with the Company, or for a period of three years
in the case of a resignation or removal of a non-employee director, during
which vested stock options granted under the 1994 Plan will remain
exercisable, unless an employee or a non-employee director, as the case may
be, is terminated or removed for cause; and
(f) provide that plan participants who resume employment or performance
of services for the Company after termination by reason of disability may
exercise unvested stock options in accordance with a revised vesting
schedule and that the expiration date of such stock options (other than
incentive stock options) be automatically extended by the length of time
such participant remained terminated by reason of disability.
These amendments to the 1994 Plan were ratified by a vote of 4,435,575 for
and 146,202 against, with 5,500 abstaining.
Ratification of Accountants:
----------------------------
The selection of Ernst & Young LLP as the Company's Auditors was ratified
by a vote of 4,458,877 for and 2,200 against, with 1,200 abstaining
5 Other Information
-----------------
In August 1996, the Company closed a public offering of its common
stock with net proceeds to the Company of approximately $14.1 million. The
offering consisted of 1,600,000 shares of Common Stock of NaPro
BioTherapeutics, Inc. The Company had granted the underwriters a 30 day
option to purchase up to 240,000 additional shares of common stock to cover
over-allotments. This over-allotment option included 50,000 shares from
selling shareholders. This option was exercised in full on on August 9,
1996.
6 Exhibits and Reports on Form 8-K
--------------------------------
There are no Reports on Form 8-K
11
<PAGE>
NAPRO BIOTHERAPEUTICS, INC.
---------------------------
JUNE 30, 1996
-------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed in its behalf by the
undersigned thereunto duly authorized.
NAPRO BIOTHERAPEUTICS, INC.
DATE: , 1996 By: /s/ Sterling K. Ainsworth
----------------- ---------------------------------------------
Sterling K. Ainsworth
President and Chief Executive Officer
(Principal Executive Officer)
DATE: , 1996 By: /s/ Gordon Link
----------------- ---------------------------------------------
Gordon Link
Vice President and Chief Financial Officer
(Principal Financial Officer and Principal
Accounting Officer)
12
<PAGE>
NAPRO BIOTHERAPEUTICS, INC.
---------------------------
June 30, 1996
-------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed in its behalf by the
undersigned thereunto duly authorized.
NAPRO BIOTHERAPEUTICS, INC.
DATE: , 1996 By: _______________________________________
---------------
Sterling K. Ainsworth
President and Chief Executive Officer
(Principal Executive Officer)
DATE: , 1996 By: _______________________________________
-----------------
Gordon Link
Vice President and Chief Financial Officer
(Principal Financial Officer and Principal
Accounting Officer)
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 4,849,685
<SECURITIES> 260,883
<RECEIVABLES> 975,100
<ALLOWANCES> 0
<INVENTORY> 1,689,091
<CURRENT-ASSETS> 8,057,995
<PP&E> 4,125,423
<DEPRECIATION> 974,628
<TOTAL-ASSETS> 12,136,695
<CURRENT-LIABILITIES> 1,293,200
<BONDS> 1,166,667
0
125
<COMMON> 76,353
<OTHER-SE> 5,171,584
<TOTAL-LIABILITY-AND-EQUITY> 12,136,695
<SALES> 1,461,230
<TOTAL-REVENUES> 1,667,379
<CGS> 0
<TOTAL-COSTS> 4,851,939
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 143,630
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,328,190)
<EPS-PRIMARY> (.39)
<EPS-DILUTED> 0
</TABLE>
