UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
or
[ ] TRANSITION REPORTS PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
----------------------- ------------------------
Commission File Number: 0-26082
VIDAMED, INC.
(exact name of registrant as specified in its charter)
Delaware 77-0314454
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
1380 Willow Road, Suite 101
Menlo Park, CA 94025
(Address of principal executive offices)
(415) 328-8781
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
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. [ X ] Yes [ ] No
The number of outstanding shares of the registrant's Common Stock, $.001 par
value, was 10,904,837 as of November 1, 1996.
Page 1 of 16
Exhibit Index at Page 15
<PAGE>
VIDAMED, INC.
<TABLE>
INDEX
<CAPTION>
PART I: FINANCIAL INFORMATION
Page
<S> <C>
Item 1. Condensed consolidated financial statements - unaudited
Condensed consolidated balance sheets - September 30, 1996
and December 31, 1995 3
Condensed consolidated statements of operations - three months
ended September 30, 1996 and 1995 and nine months ended
September 30, 1996 and 1995 4
Condensed consolidated statements of cash flows - nine months
ended September 30, 1996 and 1995 5
Notes to condensed consolidated financial statements 6
Item 2. Management's discussion and analysis of financial condition
and results of operations 9
PART II: OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 2. Changes in Securities 12
Item 3. Defaults Upon Senior Securities 12
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 13
</TABLE>
Page 2 of 16
<PAGE>
PART I: FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
VidaMed, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
September 30, December 31,
1996 1995
------------- ------------
(Unaudited) (*)
Assets
Current Assets:
Cash and cash equivalents $ 7,973 $ 5,687
Short-term investments 1,989 8,003
Other current assets 2,561 1,982
-------- --------
Total current assets 12,523 15,672
Property and equipment, net 2,502 2,909
Other assets, net 215 235
-------- --------
Total assets $ 15,240 $ 18,816
======== ========
Liabilities and stockholders' equity
Current liabilities:
Notes payable, current portion $ 1,034 $ 3,650
Accounts payable 710 487
Accrued professional fees 371 338
Accrued clinical trial costs 915 978
Accrued and other liabilities 2,880 2,376
Current portion of obligations
under capital leases 596 696
Deferred revenue 517 779
-------- --------
Total current liabilities 7,023 9,304
Notes payable, noncurrent 757 1,543
Other long-term liabilities 842 1,214
Stockholders' equity:
Capital stock 55,379 45,088
Accumulated deficit (48,761) (38,333)
-------- --------
Total stockholders' equity 6,618 6,755
-------- --------
Total liabilities and
stockholders' equity $ 15,240 $ 18,816
======== ========
* The Balance Sheet at December 31, 1995 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.
See accompanying notes.
Page 3 of 16
<PAGE>
<TABLE>
VidaMed, Inc.
Condensed Consolidated Statements of Operations
(In thousands except per share amounts)
(Unaudited)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
1996 1995 1996 1995
--------- -------- --------- --------
<S> <C> <C> <C> <C>
Revenues:
Product sales, net $ 245 $ 615 $ 1,121 $ 2,083
License fees and grant revenue 50 109 264 328
------- ------ -------- --------
Net revenues 295 724 1,385 2,411
Operating Expenses:
Cost of product sales 709 1,058 2,331 2,887
Research and development 1,249 1,868 3,999 4,957
Selling, general and administrative 1,891 1,736 5,502 5,209
------- ------- -------- --------
Total operating expenses 3,849 4,662 11,832 13,053
------- ------- -------- --------
Loss from operations (3,554) (3,938) (10,447) (10,642)
Other income (expense), net 10 20 19 (301)
------- ------- -------- --------
Net loss $(3,544) $(3,918) $(10,428) $(10,943)
======= ======= ======== ========
Net loss per share $(.33) $(.43) $(1.02) $(2.38)
======= ======= ======== ========
Shares used in computing net loss per share 10,854 9,055 10,208 4,593
======= ======= ======== ========
<FN>
See accompanying notes.
</FN>
</TABLE>
Page 4 of 16
<PAGE>
VidaMed, Inc.
Condensed Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended
September 30,
--------------------
1996 1995
-------- --------
Cash flows from operating activities:
Net loss $(10,428) $(10,943)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 1,063 853
Other 146 (13)
Changes in assets and liabilities:
Other current assets (579) (466)
Other assets 20 (19)
Accounts payable 145 (807)
Accrued and other liabilities 523 1,944
Deferred revenue (262) (319)
-------- --------
Net cash used in operating activities (9,372) (9,770)
-------- --------
Cash flows from investing activities:
Expenditures for property and equipment (584) (553)
Purchase of short-term investments (9,816) (7,882)
Proceeds from maturities of short-term investments 15,667 --
-------- --------
Net cash provided by/(used in) investing activities 5,267 (8,435)
-------- --------
Cash flows from financing activities:
Net cash proceeds from issuance of Common Stock 554 20,855
Principal payments under capital leases (519) (487)
Principal payments of long-term debt (18) (15)
Principal payments of notes payable (3,402) (286)
Net proceeds from issuance of
long-term debt 100 --
Net proceeds from issuance of notes payable
and convertible notes 9,676 7,219
-------- --------
Net cash provided by financing activities 6,391 27,286
-------- --------
Net increase in cash and cash equivalents 2,286 9,081
Cash and cash equivalents at the beginning
of the period 5,687 372
-------- --------
Cash and cash equivalents at the end of the period $ 7,973 $ 9,453
======== ========
See accompanying notes.
Page 5 of 16
<PAGE>
VIDAMED, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1996
(Unaudited)
1. Basis of presentation
The accompanying unaudited condensed consolidated financial statements of
VidaMed, Inc. (the "Company" or "VidaMed") have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions for Form 10-Q and Article 10 of Regulation S-X. The
balance sheet as of September 30, 1996 and the statements of operations for the
three and nine month periods ended September 30, 1996 and 1995, and the
statements of cash flows for the nine month periods ended September 30, 1996 and
1995, are unaudited but include all adjustments (consisting of normal recurring
adjustments) which the Company considers necessary for a fair presentation of
the financial position at such dates and the operating results and cash flows
for those periods. Although the Company believes that the disclosures in these
financial statements are adequate to make the information presented not
misleading, certain information normally included in financial statements and
related footnotes prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to the rules and regulations
of the Securities and Exchange Commission. The accompanying financial statements
should be read in conjunction with the financial statements and notes thereto
included in the Company's annual report on Form 10-K for the year ended December
31, 1995 filed with the Securities and Exchange Commission.
Results for any interim period are not necessarily indicative of results for any
other interim period or for the entire year.
2. Net loss per share
Net loss per share is computed using the weighted average number of shares of
common stock outstanding during the periods presented. Common equivalent shares
are excluded from the computation as their effect is antidilutive, except that,
pursuant to the Securities and Exchange Commission Staff Accounting Bulletins,
common and common equivalent shares (stock options, warrants, convertible notes
and preferred stock) issued during the 12 month period prior to the Company's
initial public offering (IPO) have been included in the calculation as if they
were outstanding for all periods through March 31, 1995 (using the treasury
stock method for stock options and warrants and the if-converted method for
convertible notes and preferred stock).
The pro forma calculation of net loss per share presented below has been
computed as described above but also gives retroactive effect from the date of
issuance to the conversion of the convertible preferred stock which
automatically converted to common shares upon closing of the Company's initial
public offering.
Nine months ended
September 30, 1995
------------------
Pro forma net loss per share $(1.59)
====================
Shares used in computation 6,903,000
====================
Page 6 of 16
<PAGE>
3. Initial public offering
In June 1995, the Company completed an initial public offering ("IPO") of
3,565,000 shares of Common Stock at a price to the public of $6.50 per share.
The net proceeds of the offering to the Company, after deducting underwriting
discounts and expenses, were $20.8 million. Upon completion of the IPO all then
outstanding shares of convertible preferred stock were automatically converted
into shares of Common Stock. Upon completion of the IPO $1,518,805 of
convertible notes issued during March and April 1995 were automatically
converted into 333,800 shares of common stock. The conversion price equaled 70%
of the IPO price.
4. Inventories
Inventories are stated at the lower of cost (determined using the first-in,
first-out method) or market value. Inventories at September 30, 1996 and
December 31, 1995 consist of the following:
September 30, December 31,
1996 1995
---------- ----------
Raw Materials $ 502,000 $ 507,000
Work in process 179,000 154,000
Finished Goods 956,000 684,000
---------- ----------
$1,637,000 $1,345,000
========== ==========
5. Intellectual Property Litigation Risks
The Company is aware that EP Technologies, Inc. ("EPT") and the University of
California ("UC") have filed a United States patent application in the field of
ablation of body tissue. These parties have also requested the United States
Patent and Trademark Office to declare an interference with two of VidaMed's
United States patent applications on which notices of allowances have been
received. The inventors identified on the EPT/UC application are Stuart Edwards,
who was previously VidaMed's Chief Executive Officer and was previously the
Chief Technical Officer of EPT, and a cardiologist from the University of
California, San Francisco, who worked as a consultant to EPT while Mr. Edwards
was employed there.
Although the Company believes that the interference will not be allowed on the
patents, an adverse determination in the current patent office proceeding or in
other litigation or interference proceedings to which the Company may become a
party could subject the Company to significant liabilities to third parties or
require the Company to seek licenses from third parties. There can be no
assurance that necessary licenses would be available to the Company on
satisfactory terms or at all. Accordingly, an adverse determination in a
judicial or administrative proceeding or failure to obtain necessary licenses
could prevent the Company from manufacturing and selling its products, which
would have a material adverse effect on the Company's business, financial
condition and results of operations.
6. Cash, cash equivalents and short-term investments
The Company considers all highly liquid investments with maturities from the
date of purchase of 90 days or less to be cash equivalents. The Company invests
its excess cash with major banks or investment managers. Short-term investments
consist of corporate paper and government securities with remaining maturities
at
Page 7 of 16
<PAGE>
the date of purchase of greater than 90 days and less than one year. Short-term
investments are designated as available for sale and carried at fair market
value, with unrealized gains and losses reported in stockholders' equity.
7. Convertible notes
In March 1996, the Company completed the sale of $10.1 million of 5% convertible
subordinated notes (the "Notes"). Interest is payable semiannually in either
cash or Common Stock of the Company. The Notes are convertible into Common Stock
of VidaMed based upon a percentage (ranging from 80% to 85%) of the average
closing bid price over a period of five trading days prior to conversion. As of
June 30, 1996 all of the $10.1 million in principal and accrued interest on the
Notes had been converted into an aggregate of 1,375,676 shares of Common Stock.
Page 8 of 16
<PAGE>
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Management's Discussion and Analysis of Financial Condition and Results of
Operations for the three and nine months ended September 30, 1996 and 1995,
should be read in conjunction with the Management's Discussion and Analysis of
Financial Condition and Results of Operations included in the Company's 10K for
the year ended December 31, 1995.
This Management's Discussion and Analysis of Financial Condition and Results of
Operations contains forward-looking statements which involve risks and
uncertainties. The Company's actual results may differ significantly from those
anticipated by the forward-looking statements. Factors that might cause such a
difference include, but are not limited to, those discussed below and in the
Company's report on Form 10-K for the year ended December 31, 1995.
Overview
VidaMed has a limited history of operations and has experienced significant
operating losses since inception. As of September 30, 1996, the Company had an
accumulated deficit of $48.8 million. The Company commenced sales of its
TransUrethral Needle Ablation ("TUNA") system in late 1993. Revenues for the
three and nine months ended September 30, 1995 also include consulting revenues
and electronic component sales by Scionex, a wholly-owned subsidiary acquired in
June 1994. Sales by Scionex to third parties have been discontinued as of the
end of 1995 as Scionex has directed all of its activities to development and
production of the radiofrequency generators for the TUNA System. Revenues for
the quarters ended September 30, 1996 and 1995 include license fees for
distribution rights in Japan and for the quarter ended September 30, 1995
includes a United Kingdom government grant which ended June 30, 1996.
VidaMed anticipates that a substantial amount of its revenues from product sales
in the future will be from sales in the United States. The Company filed a
premarket 510(k) notification with the Food and Drug Administration ("FDA") for
the TUNA System in March 1996. The Company will not be permitted to market the
TUNA System for BPH in the United States until approval of such 510(k)
notification is received. The company received FDA clearance to market the TUNA
System in the United States on October 8, 1996. Currently, VidaMed sells its
products primarily internationally to distributors who resell to physicians and
hospitals. Sales to distributors are made on open credit terms and may include
volume purchase discounts and extended payment terms. Therefore, distributors
may purchase several months of inventory at one time to take advantage of
discounts and extended payment terms. While revenue from product sales are
generally recognized at the time of shipment (net of allowances for discounts
and estimated returns), a portion of the Company's initial shipments to
distributors have not been recognized as revenues due to extended payment terms
or limited sell through experience associated with these distributors. The
Company anticipates continuing this revenue recognition policy; however, as its
distributor relationships mature, the Company believes that it will recognize a
greater portion of revenues upon shipment.
The Company expects its operating losses to continue through at least fiscal
year 1996 as it continues to expend substantial resources in expansion of
marketing and sales activities as a result of recent FDA approval of the
Company's 510(k) notification for the TUNA System, funding clinical trials in
support of regulatory and reimbursement approvals, and research and development.
The Company's future profitability
Page 9 of 16
<PAGE>
will be dependent upon, among other factors, market acceptance of the TUNA
System and availability of third-party reimbursement for procedures performed
with the TUNA System.
Although the Company has received FDA approval of its 510(k) notification for
the TUNA System for treatment of BPH and has commenced marketing of the TUNA
System in the United States, there can be no assurance that the TUNA System will
be deemed clinically or cost effective by health care providers and payors, will
be deemed superior to other current and emerging methods for treating BPH or
will achieve significant market acceptance in the United States market.
Furthermore, determinations as to eligibility of the TUNA System for
reimbursement by private and governmental health payors are made by such payors
independently of the FDA approval, and, accordingly, there can be no assurance
that the TUNA procedure will be eligible for reimbursement in the United States
under either private or governmental healthcare payment systems. Ineligibility
of TUNA procedures for reimbursement would have an adverse effect on the ability
of the TUNA System to achieve market acceptance. Failure of the TUNA System to
achieve market acceptance in the United States would have a material adverse
effect on business, financial condition and results of operations of the
Company.
The Company does not have a backlog of orders for its products in countries
where the TUNA System is approved and anticipates that it will continue to
manufacture and ship orders after their receipt. Accordingly, the Company does
not anticipate that it will develop a significant backlog in the future.
Results of Operations
Net revenue for the three months ended September 30, 1996 decreased 59% to
$295,000 from $724,000 in the three months ended September 30, 1995. Product
sales in the third quarter of 1996 decreased 60% to $245,000 from $615,000 in
the same period in 1995. The decrease in product sales between the third quarter
of 1995 and 1996 is the result of the discontinuance of Scionex sales to third
party customers in 1996, shipment of products for clinical evaluation to the
Japanese distributor in 1995 and the completion of a U.K. government grant in
the Company's second quarter of 1996. For the first nine months of 1996 net
revenue decreased 43% to $1,385,000 from $2,411,000 during the same period in
1995. Product sales for the first nine months of 1996 decreased 46% to
$1,121,000 from $2,083,000 during the same period in 1995. The decrease in
product sales is primarily due to the discontinuance of Scionex sales to third
party customers. Scionex had sales of approximately $725,000 in the first nine
months of 1995.
Cost of product sales decreased 33% to $709,000 in the three months ended
September 30, 1996 from $1,058,000 in the three months ended September 30, 1995.
For the nine months ended September 30, 1996 cost of product sales decreased 19%
to $2,331,000 from $2,887,000 in the same period in 1995. The decrease is
primarily due to lower product sales in the first nine months of 1996, although
excess overhead caused by decreased production partially offset the reduction.
Research and development expenses decreased 33% to $1,249,000 in the three
months ended September 30, 1996 from $1,869,000 in the three months ended
September 30, 1995. For the nine months ended September 30, 1996 research and
development expenses decreased 19% to $3,999,000 from $4,957,000 in the same
period in 1995. The decrease was primarily due to lower clinical trial expenses
in 1996, but was partially offset by an increase in product development material
costs. The decrease in clinical trial costs is due to the completion of the
enrollment in the U.S. clinical trials in 1995.
Selling, general and administrative expenses increased 9% to $1,891,000 in the
three months ended September 30, 1996 from $1,736,000 in the three months ended
September 30, 1995. For the nine months ended
Page 10 of 16
<PAGE>
September 30, 1996 selling, general and administrative expenses increased 6% to
$5,502,000 from $5,209,000 in the same period in 1995. The increase was
primarily due to increased sales and marketing expense incurred in anticipation
of the U.S. TUNA product launch. Sales and administrative personnel were hired
throughout 1996 in preparation of U.S. commercial introduction of the TUNA
System.
Total operating expenses in the three months ended September 30, 1996 decreased
17% to $3,848,000 from $4,662,000 in the three months ended September 30, 1995.
Total operating expenses for the first nine months of 1996 decreased 9% to
$11,832,000 from $13,053,000 in the same period in 1995.
Other income for the three and nine months ended September 30, 1996 was $10,000
and $19,000, respectively, compared to other income of $20,000 and other expense
of $301,000 for the comparable periods in 1995. This change in the nine month
amount is primarily due to interest earned on proceeds from the IPO in June 1995
and Convertible Notes issued March 1996 offsetting interest expense in 1996.
The net loss for the three and nine month periods ended September 30, 1996 was
$3,544,000 and $10,428,000, respectively, compared to $3,918,000 and $10,943,000
for the comparable periods in 1995.
Liquidity and Capital Resources
At September 30, 1996 the Company's cash, cash equivalents and short-term
investments were $9,962,000, compared to $13,690,000 at December 31, 1995. In
June 1995 the Company completed an initial public offering of 3,565,000 shares
of Common Stock at a price to the public of $6.50 per share. The net proceeds of
the offering to the Company, after deducting underwriting discounts and
expenses, were $20.8 million. In March 1996, the Company completed the issuance
of $10.1 million in convertible subordinated notes. As of June 30, 1996 all of
the $10.1 million in principal and accrued interest on these notes had been
converted into an aggregate of 1,375,676 shares of Common Stock.
In April 1995, the Company obtained a $3,000,000 secured credit facility. To
date, the Company has borrowed $3,000,000 under this facility. Borrowings bear
interest at the prime rate plus 3% per annum plus additional lump-sum interest
of 15% of each borrowing, payable at maturity. Repayment is based on a three
year amortization schedule.
In January and February 1996, the Company repaid $2,700,000 in previously
outstanding notes payable issued by the Company in January and February 1995.
Interest on these notes accrued at the prime rate.
During the nine months ended September 30, 1996 and 1995, VidaMed consumed cash
in operations of $9,372,000 and $9,770,000, respectively. The changes in cash
used in operations were due to decreased research and development associated
with clinical trial costs offset in part by increased selling expenses
associated with the anticipated U.S. TUNA product launch.
Although VidaMed believes that its current capital resources and cash generated
from the sale of products will be sufficient to meet the Company's operating and
capital requirements through the next twelve months, there can be no assurance
that the Company will not require additional financing within this time frame.
There can be no assurance that additional financing, if required, will be
available on satisfactory terms or at all. In any event, VidaMed may in the
future seek to raise additional funds through bank facilities, debt or equity
offerings or other sources of capital. VidaMed's future liquidity and capital
requirements will depend on numerous other factors, including progress of
clinical trials, actions related to regulatory and reimbursement matters, and
the extent to which the TUNA system gains market acceptance.
Page 11 of 16
<PAGE>
VIDAMED, INC.
PART II: OTHER INFORMATION
Item 1. Legal Proceedings
None
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
(11.1) Statement Re: Computation of Net Loss Per Share
(27.1) Financial Data Schedule
b) Reports on Form 8-K. No reports on Form 8-K were filed
during the quarter ended September 30, 1996.
Page 12 of 16
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto.
VIDAMED, INC.
Date: November 12, 1996 By: /s/ James A. Heisch
-------------------------- ------------------------
James A. Heisch
President, Chief Executive Officer,
Chief Financial Officer
(Principal Financial Officer)
Date: November 12, 1996 By: /s/ Thomas M. Fahey
----------------------------- ------------------------
Thomas M. Fahey
Director of Finance
(Principal Accounting Officer)
Page 13 of 16
<PAGE>
INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
11.1 Statement regarding computation of net loss per share
27.1 Financial Data Schedule
Page 14 of 16
EXHIBIT 11.1
VIDAMED, INC.
<TABLE>
STATEMENT RE: COMPUTATION OF NET LOSS PER SHARE
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- ----------------------------
1996 1995 1996 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Calculation of shares outstanding for
computing net loss per share:
Weighted average shares of
common stock outstanding 10,854,000 4,236,000 10,208,000 4,236,000
Common equivalents shares pursuant
to SEC Staff Accounting Bulletin
Nos. 55, 64 and 83 -- -- -- 357,000
------------ ------------ ------------ ------------
Total shares used in calculation
of net loss per share 10,854,000 9,055,000 10,208,000 4,593,000
============ ============ ============ ============
Net loss $ (3,544,000) $ (3,918,000) $(10,428,000) $(10,943,000)
============ ============ ============ ============
Net loss per share ($.33) ($.43) ($1.02) ($2.38)
============ ============ ============ ============
Calculation of shares outstanding for
computing pro forma net loss per share:
Total shares from above 4,593,000
Common equivalent shares
assuming conversion of
preferred shares 2,310,000
------------
Shares used in computing pro forma
net loss per share 6,903,000
============
Net loss $(10,943,000)
============
Pro forma net loss per share ($1.59)
============
</TABLE>
Page 15 of 16
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 7,973
<SECURITIES> 1,989
<RECEIVABLES> 453
<ALLOWANCES> 142
<INVENTORY> 1,637
<CURRENT-ASSETS> 12,523
<PP&E> 5,006
<DEPRECIATION> 2,504
<TOTAL-ASSETS> 15,240
<CURRENT-LIABILITIES> 7,023
<BONDS> 1,463
<COMMON> 11
0
0
<OTHER-SE> 6,607
<TOTAL-LIABILITY-AND-EQUITY> 15,240
<SALES> 1,121
<TOTAL-REVENUES> 1,385
<CGS> 2,331
<TOTAL-COSTS> 9,501
<OTHER-EXPENSES> (19)
<LOSS-PROVISION> 108
<INTEREST-EXPENSE> (42)
<INCOME-PRETAX> (10,387)
<INCOME-TAX> 41
<INCOME-CONTINUING> (10,428)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (10,428)
<EPS-PRIMARY> (1.02)
<EPS-DILUTED> (1.02)
</TABLE>
