-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, U+s60y7zRrwDjU0cZNDC8B4J0m2GxvPD8bG7ESsZnwKBkirfZHkxmJuUmST3BAZU rOkGZagUW+/wfhPYVXTnpQ== 0000950123-96-006341.txt : 19961113 0000950123-96-006341.hdr.sgml : 19961113 ACCESSION NUMBER: 0000950123-96-006341 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961112 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ROSE INTERNATIONAL LTD CENTRAL INDEX KEY: 0001017655 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 731479833 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-28720 FILM NUMBER: 96657892 BUSINESS ADDRESS: STREET 1: 100 W 5TH STREET STREET 2: SUITE 601 CITY: TULSA STATE: OK ZIP: 74103 BUSINESS PHONE: 9185821788 MAIL ADDRESS: STREET 1: 100 W 5TH STREET STREET 2: SUITE 601 CITY: TULSA STATE: OK ZIP: 74103 10QSB 1 FORM 10-QSB 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended: SEPTEMBER 30, 1996 Commission File Number: 0-28720 ROSE INTERNATIONAL LTD. (Exact name of small business issuer as specified in its charter) DELAWARE 73-1479833 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 100 WEST 5TH STREET, SUITE 601, TULSA, OKLAHOMA 74103 (Address of principal executive office) (918) 582-1788 (Issuer's telephone number, including area code) Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act during the preceding 12 months (or for such shorter period that registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- --- State the number of shares outstanding of each of the issuer's classes of common equity, as of the close of the period covered by this report.
COMMON STOCK $0.01 PAR VALUE 6,522,243 ---------------------------- --------- Class Outstanding at September 30, 1996
Transitional Small Business Disclosure Format: Yes ; No X --- --- 2 ROSE INTERNATIONAL LTD. AND SUBSIDIARIES INDEX
Page No. --- PART I. Financial Information Item 1. Condensed Consolidated Balance Sheets - 3 September 30, 1996 and December 31, 1995 Condensed Consolidated Statements of Operations - 4 Three and Nine Months Ended September 30, 1996 and 1995 Condensed Consolidated Statement of Stockholders' Equity - 5 Nine Months Ended September 30, 1996 Condensed Consolidated Statements of Cash Flows - 6-7 Nine Months Ended September 30, 1996 and 1995 Notes to Condensed Consolidated Financial Statements - 8-10 Nine Months Ended September 30, 1996 and 1995 Item 2. Management's Discussion and Analysis of 11-13 Financial Condition and Results of Operations PART II. Other information 14
2 3 ROSE INTERNATIONAL LTD. AND SUBSIDIARIES (A MAJORITY-OWNED SUBSIDIARY OF M&M GROUP) CONSOLIDATED BALANCE SHEET
September 30, December 31, 1996 1995 (Unaudited) (Audited) ----------- --------- ASSETS CURRENT ASSETS Cash and cash equivalents $ 338,113 $ 178,670 Marketable equity securities 23,287 213,348 Receivables, net 1,094,499 862,376 Inventories 1,728,076 1,285,434 Prepaid expenses and other assets 62,655 36,330 ------------ ------------ Total current assets 3,246,630 2,576,158 Property and equipment, net 6,296,238 6,259,906 Goodwill, net of amortization 2,224,188 2,249,930 Investment in MRCI 292,070 417,512 Other 9,345 11,032 ------------ ------------ $ 12,068,471 $ 11,514,538 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 804,253 $ 396,834 Accrued liabilities 136,389 20,307 Payable to parent company -- 215,386 Current maturities of long-term obligations 100,567 101,630 Notes payable - related party -- 125,000 ------------ ------------ 1,041,209 859,157 Long-term obligations 143,940 219,425 Deferred income taxes 739,000 831,000 STOCKHOLDERS' EQUITY Common stock 65,222 47,750 Paid-in capital 11,005,076 9,806,548 Stock subscription receivable (798,000) Retained earnings (deficit) (84,186) (209,616) Foreign currency translation adjustment (43,790) (39,726) ------------ ------------ Total stockholders' equity 10,144,322 9,604,956 ------------ ------------ $ 12,068,471 $ 11,514,538 ============ ============
See accompanying notes to consolidated financial statements. 3 4 ROSE INTERNATIONAL LTD. AND SUBSIDIARIES (A MAJORITY-OWNED SUBSIDIARY OF M&M GROUP) CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended September 30, September 30, 1996 1995 1996 1995 ---- ---- ---- ---- SALES AND REVENUES $ 1,294,380 $ 1,195,483 $ 4,740,331 $ 4,130,296 COST OF SALES 1,151,720 1,000,451 3,706,186 3,201,817 ----------- ----------- ----------- ----------- GROSS PROFIT 142,660 195,032 1,034,145 928,479 OTHER EXPENSE (INCOME) Selling, general and administrative expense 236,708 183,074 831,106 648,952 Interest expense - Parent -- -- 6,473 -- Interest expense - Other 7,765 21,772 28,343 96,711 Equity in loss of MRCI 531 -- 72,378 -- Gain from sale of marketable equity securities -- -- (167,123) -- Interest and other income (1,402) (721) (6,462) (489) ----------- ----------- ----------- ----------- 243,602 204,125 764,715 745,174 ----------- ----------- ----------- ----------- EARNINGS BEFORE INCOME TAXES (100,942) (9,093) 269,430 183,305 INCOME TAX EXPENSE (23,000) -- 144,000 -- ----------- ----------- ----------- ----------- NET EARNINGS $ (77,942) $ (9,093) $ 125,430 $ 183,305 =========== =========== =========== =========== NET EARNINGS PER SHARE $ (0.01) $ (0.00) $ 0.02 $ 0.04 =========== =========== =========== =========== WEIGHTED AVERAGE SHARES OUTSTANDING 6,522,243 4,775,000 5,696,921 4,775,000 =========== =========== =========== ===========
See accompanying notes to consolidated financial statements. 4 5 ROSE INTERNATIONAL LTD. AND SUBSIDIARIES (A MAJORITY-OWNED SUBSIDIARY OF M&M GROUP) CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
Stock Foreign Common Stock Paid-in Subscription Accumulated Currency Shares Par Value Capital Receivable Deficit Adjustment Total ------ --------- ------- ---------- ------- ---------- ----- BALANCE, January 1, 1996 4,775,000 $47,750 $ 9,806,548 $ (209,616) $ (39,726) $ 9,604,956 Sale of common stock 997,243 9,972 990,028 (798,000) 202,000 Net earnings 125,430 125,430 Foreign currency translation adjustment (4,064) (4,064) Conversion of Parent debt to common stock 750,000 7,500 208,500 216,000 --------- ------- ------------ --------- ---------- ------------ ------------ BALANCE, September 30, 1996 6,522,243 $65,222 $ 11,005,076 $(798,000) $ (84,186) $ (43,790) $ 10,144,322 ========= ======= ============ ========= ========== ============ ============
See accompanying notes to consolidated financial statements. 5 6 ROSE INTERNATIONAL LTD. AND SUBSIDIARIES (A MAJORITY-OWNED SUBSIDIARY OF M&M GROUP) CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended September 30, 1996 1995 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES Net earnings $ 125,430 $ 183,305 Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 290,064 249,376 Deferred income taxes 144,000 -- Foreign operations, net 101,378 -- Gain on sale of equity securities (166,888) -- Interest due parent 6,473 -- Changes in assets and liabilities: Receivables (232,122) 47,445 Inventories (442,642) (95,250) Prepaid and other assets 12,555 1,928 Accounts payable and accrued liabilities 484,619 (548,269) --------- ----------- Net cash provided by (used in) operating activities 322,867 (161,465) --------- ----------- CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES Capital expenditures (223,965) (376,297) Investment in MRCI -- (179,788) Investment in SPS Alfachem, Inc. (75,000) -- Sale of equity securities 665,471 -- Purchase of equity securities (308,522) -- --------- ----------- Net cash provided by (used in) investing activities 57,984 (556,085) --------- ----------- CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES Sale of common stock 202,000 -- Contributions by (to) parent company -- 1,353,591 Repayment of parent loan (221,859) -- Loan from related party -- 500,000 Loan principal repayments (201,548) (631,115) --------- ----------- Net cash provided by (used in) financing activities (221,407) 1,222,476 --------- ----------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 159,444 504,926 CASH AND CASH EQUIVALENTS, beginning of period 178,669 258,043 --------- ----------- CASH AND CASH EQUIVALENTS, end of period $ 338,113 $ 762,969 ========= ===========
See accompanying notes to consolidated financial statements. 6 7 ROSE INTERNATIONAL LTD. AND SUBSIDIARIES (A MAJORITY-OWNED SUBSIDIARY OF M&M GROUP) CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended September 30, 1996 1995 ---- ---- SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Interest paid $ 36,539 $96,711 ======== ======= Income taxes paid $ -- $ -- ======== ======= SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES Common stock exchanged for stock subscriptions receivable $798,000 $ -- Common stock issued in exchange for debt to parent $216,000 $ --
See accompanying notes to consolidated financial statements. 7 8 ROSE INTERNATIONAL LTD. AND SUBSIDIARIES (A MAJORITY-OWNED SUBSIDIARY OF M&M GROUP) (UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements of Rose International Ltd. include the accounts of Rose International Ltd. ("Rose Ltd."), its wholly-owned subsidiaries, Rose Color, Inc. ("Rose Color") and SPS Alfachem, Inc. ("SPS") and the 80% owned subsidiary of Rose Color, JBW International, Inc. ("JBW"). Rose Ltd. is a majority-owned subsidiary of M&M Group, a Nevada corporation, ("M&M"). (Rose Ltd. and its subsidiaries are collectively referred to as the "Company"). On April 26, 1994, Rose Color entered into a contract with Indian Dyestuff Industries LTD. ("IDI"), headquartered in Bombay, India to form a new company in India (Mafatlal Rose Color Industries Ltd. ("MRCI")), to produce a wide range of dyes and related intermediates in a facility leased to the new joint venture company by IDI. During 1995, Rose Color paid approximately $600,000 for its initial 49% ownership in the joint venture company. Construction on the facility, which is located within the IDI Baroda, India plant, was completed and the first commercial production commenced during the fourth quarter of 1995. The financial statements included in this report have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission for interim reporting and include all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation. These financial statements have not been audited. The consolidated balance sheet at December 31, 1995 included in this report has been derived from the audited consolidated balance sheet. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations for interim reporting. The Company believes that the disclosures contained herein are adequate to make the information presented not misleading. However, these financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report for the year ended December 31, 1995, which is included in the Company's Form 10-SB which was filed in August 1996. The financial data for the interim periods presented may not necessarily reflect the results to be anticipated for the complete year. Certain reclassifications of the amounts presented for the comparative period have been made to conform to the current presentation. B. ACQUISITION During May 1996, the Company paid $75,000 to acquire 100% ownership of SPS, a New Jersey development-stage corporation, whose principal business will be production and supply of fine chemicals, pharmaceutical intermediates and agrochemicals. SPS also plans to offer custom/toll product development and manufacturing capabilities. Sales for SPS commenced during August 1996. The acquisition cost of $75,000 was treated as goodwill, which is being amortized over a fifteen year period. 8 9 ROSE INTERNATIONAL LTD. AND SUBSIDIARIES (A MAJORITY-OWNED SUBSIDIARY OF M&M GROUP) (UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS C. MARKETABLE SECURITIES During March 1996, the Company exercised its option to acquire for $285,000 an additional 142,500 shares of Proactive Technologies, Inc., which increased its total investment to 285,000 shares with a cost basis of $498,348. The shares were sold for $665,471, resulting in a gain of $167,123. The payment of $285,000 for the exercise of the option was made during April 1996. As of September 30, 1996, the Company has an investment in marketable equity securities which are classified as trading securities. As of September 30, 1996 cost exceed the fair value of the securities by $235 and this amount has been included as a loss. D. LONG-TERM OBLIGATIONS During the nine months ended September 30, 1996, the Company reduced long-term obligations by $76,548 and retired the remaining balance of a related party loan in the amount of $125,000. The Company did not add any additional long-term obligations during the period. E. COMMON STOCK During the nine months ended September 30, 1996, the Company collected a total of $202,000 attributable to the sale of its common stock in an exempt offering under Rule 504 of Regulation D. A stock subscription receivable in the amount of $798,000 is treated as a reduction in stockholders' equity, and represents the balance of the offering. During the nine months ended September 30, 1996, the Company issued an additional 750,000 common shares to Struthers Industries, Inc. as consideration for the forgiveness of $216,000 of debt during the period. On August 7, 1995 the Board of Directors of the Company authorized an Incentive Stock Option Plan (the "Plan") which for a term of ten years provides that one million shares of the Company's common stock be reserved for issuance to selected key employees and consultants. The Plan is to be administered by a compensation committee composed of two directors of the Company and this committee may grant no more than three hundred thousand shares of common stock to any one individual at a price based on the fair market value of the shares at the date of grant. The grant may be exercised over a ten year period, in not less than one thousand share lots and when exercised, the stock must be held for six months prior to sale. The options may be exercised only by the person to whom the option is granted and the Plan may be modified by the Board of Directors at any time. At September 30, 1996 the Company had granted options totaling 525,000 shares for ten years at an exercise price of $1.00 per share in accordance with the Plan, none of which had been exercised. On August 10, 1995 the Board of Directors adopted a 1995-1996 Nonstatutory Stock Option Plan for its officers, directors, key employees and consultants reserving 500,000 common shares for this option plan, which expires December 31, 1996. The options may be granted at prices determined by the compensation committee, which administers this 9 10 ROSE INTERNATIONAL LTD. AND SUBSIDIARIES (A MAJORITY-OWNED SUBSIDIARY OF M&M GROUP) (UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS plan, and may be exercised upon grant and paid for at the discretion of the Compensation Committee, with any unpaid amounts for shares received being evidenced by promissory notes. At September 30, 1996 the Company had granted 300,000 shares at an exercise price of $2.50 per share and 30,000 shares at an exercise price of $2.25 per share, for three years, none of which had been exercised. Common stock options do not have an impact on primary earnings per share or fully-diluted earnings per share as the average trading price and the ending trading price has approximated the lowest exercise price of the common stock options. F. INCOME TAXES The Company follows SFAS No. 109, "Accounting for Income Taxes". Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. SFAS No. 109 requires that a valuation allowance be established to reduce deferred tax assets to the amount that is more likely than not to be realized. Deferred income taxes result primarily from temporary differences in recognizing depreciation expense and foreign operations for tax and financial reporting purposes. The following reconciles the Company's expected income tax expense utilizing statutory tax rates to the actual tax expense for the nine month periods ended September 30:
1996 1995 ---- ---- Tax expense at federal statutory rate $ 92,000 $ 62,000 Non-deductible goodwill amortization 33,000 33,000 State income tax, net of federal benefit 19,000 11,000 Change in valuation allowance and other - - 106,000 ================== ================== $ 144,000 $ - ================== ==================
10 11 ROSE INTERNATIONAL LTD. AND SUBSIDIARIES (A MAJORITY-OWNED SUBSIDIARY OF M&M GROUP) (UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS A. LIQUIDITY AND CAPITAL The Company had working capital of $2,205,421 at September 30, 1996 as compared to $1,717,001 at December 31, 1995, an improvement of $488,420. Current assets increased $670,472 and current liabilities increased $182,052. Approximately 67% of the asset increase is an increase in inventory with the remainder representing an increase in accounts receivable. Increases in cash and prepaid expenses are offset by reductions in marketable equity securities. Accounts payable and accrued expenses increased $523,501, primarily to finance the increase in inventory. This increase was offset by a reduction in notes payable and the payable to parent which totaled $340,386. During the nine months ended September 30, 1996, cash flows from operating activities was $322,867 and cash flows from investing activities was $57,984 while financing activities used $221,407, resulting in an increase in cash of $159,444. During the same 1995 nine month period, cash was used in operating activities in the amount of $161,465 and cash was used in investing activities in the amount of $556,085, while financing activities provided cash in the amount of $1,222,476, which resulted in an increase in cash of $504,926. During the nine months ended September 30, 1996, the Company incurred $223,965 for capital expenditures. The Company has a capital expenditure plan which calls for a total investment of approximately $1,200,000 during 1996 and 1997, as the funds become available. Some of the planned investment may be delayed, depending upon the availability of funds. The major items included in the capital expenditure budget include construction of a semi-automatic waste treatment facility, the replacement of older reactors and added storage, the purchase of additional equipment to be utilized in expanding powder dye production, the construction of a manual ice plant and laboratory and office equipment. B. RESULTS OF OPERATIONS The operations of the Company are all within one segment, the manufacture and marketing of chemicals. SALES AND COSTS OF SALES Total revenues increased 15% during the nine month period ended September 30, 1996, as compared to the same period in 1995. Total revenues increased 8% during the three month period ended September 30, 1996, as compared to the same period in 1996. Gross profit margins were 22% during both nine month periods, while the gross profit experienced during the three months ended September 30, 1996 was 11% as compared to 16% during the same period in 1995. The sales increases during both the nine and three month periods ended September 30, 1996 were from the sale of new products. The sales increases are even more dramatic when the decline in red dye sales is considered. During the nine months ended 11 12 ROSE INTERNATIONAL LTD. AND SUBSIDIARIES (A MAJORITY-OWNED SUBSIDIARY OF M&M GROUP) (UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 1996, Rose Color's sales of its red 614 dye declined 22% from the year earlier period. This reduced its share of sales from 38% during the 1995 period to 26% during the 1996 period. This same sales decline was 57% during the three month period ended September 30, 1996 as compared to the same period during 1995. Red dye sales during the 1996 third quarter represented only 16% of total sales, whereas it represented 38% of the same 1995 period. The manufacture and sale of a wider variety of dyes is not without its cost. The efficiencies gained when producing the same product on a fairly continuous basis are lost when the manufacturing effort emphasizes a larger variety of dyes. Although sales did increase 15% during the nine month period ended September 30, 1996 as compared to the same year earlier period, manufacturing costs increased 21% during the same period. During the nine months ended September 30, 1996, the Company reduced the production of its red 614 dye by approximately 18% due to lower demand. During the nine months ended September 30, 1996, the red dye represented 36% of total production, whereas, in the same period during 1995, the red dye represented 55% of total production. Since 85% of the reduced production was made during the three months ended September 30, 1996, the lower manufacturing volume resulted in a lower gross profit margin during the 1996 third quarter as compared to the 1995 third quarter. OTHER EXPENSE (INCOME) Selling, general and administrative expense increased 28% during the nine month period ended September 30, 1996 as compared to the same 1995 period. These same expenses increased 30% during the three month period ended September 30, 1996 as compared to the same 1995 period. During the nine month period, one-half of the increase was incurred in Rose Ltd. and SPS. Rose Ltd. had only nominal costs during the 1995 period, while SPS was not acquired until 1996. Of the remaining $90,000 increase in costs, $45,000 was from increased travel costs, primarily to India for meetings relating to Rose Color's investment in MRCI, $18,000 was from increased sales commissions, less a reduction in direct sales salaries and the remainder related primarily to increased administrative compensation and related office expenses. The remainder of the increase during the three month period ended September 30, 1996 as compared to the same 1995 period was primarily due to the travel costs discussed above. Interest expense during both the nine month period and the three month period ended September 30, 1996 is approximately one-third the amount incurred during the same 1995 periods. The reduction in interest expense is due to the repayment of the related party loan, which was originally $500,000 in January 1995 and repaid in full during February 1996, and the reduction of other debt during the periods. During the first six months of 1996, the Company recognized a loss in the amount of $72,000 from its share of the start-up operations of MRCI. The MRCI operations reached a break-even point during the three months ended September 30, 1996, and are expected to yield a positive contribution to earnings in the future. MRCI completed its plant construction and had initial commercial production during the fourth quarter of 1995. 12 13 ROSE INTERNATIONAL LTD. AND SUBSIDIARIES (A MAJORITY-OWNED SUBSIDIARY OF M&M GROUP) (UNAUDITED) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Company realized a gain of $167,123 from the sale of marketable equity securities during the first quarter of 1996. The Company had not had any transactions of this nature prior to that time. During the nine and three month periods ended September 30, 1996, respectively, the Company recorded deferred income tax expense to recognize the effects of changes in temporary differences. During the year ended December 31, 1995 and for the eight months ended August 31, 1996, the Company was included in the consolidated income tax return of Struthers Industries, Inc., its former majority owner. Deferred income taxes were not recorded by the subsidiary for 1995 until the fourth quarter of 1995, due to the significant losses incurred by Struthers. 13 14 PART II OTHER INFORMATION Items 1 through 5 of Part II have been omitted as not required, not significant, or because the information has been previously reported. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits - Not applicable (b) Reports on Form 8-K - Not applicable SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ROSE INTERNATIONAL LTD. Date: November 8, 1996 By: /s/ G. David Gordon -------------------- --------------------------- G. David Gordon President Date: November 8, 1996 By: /s/ James R. Ross -------------------- --------------------------- James R. Ross Controller 14 EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 1996 AND FOR THE NINE MONTH PERIOD THEN ENDED AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FORM 10-QSB FOR THE QUARTER ENDED SEPTEMBER 30, 1996. 9-MOS DEC-31-1996 SEP-30-1996 338,113 23,287 1,094,499 30,000 1,728,076 3,246,630 6,966,797 670,559 12,068,471 1,041,209 0 0 0 65,222 10,079,100 12,068,471 4,740,331 4,740,331 3,706,186 3,706,186 831,106 0 34,816 269,430 144,000 125,430 0 0 0 125,430 0.02 0.02
-----END PRIVACY-ENHANCED MESSAGE-----