-----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, EOvRoa7/58zvUV5Q7hmIV/pE2WFNE6fnXkmXQDJwrTPXK/khBVei0l8cq32Fofi+ y0eLDue+HOKrH0EtsbIjnA== 0000950148-00-000024.txt : 20000202 0000950148-00-000024.hdr.sgml : 20000202 ACCESSION NUMBER: 0000950148-00-000024 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991130 FILED AS OF DATE: 20000111 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DENSE PAC MICROSYSTEMS INC CENTRAL INDEX KEY: 0000784770 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 330033759 STATE OF INCORPORATION: CA FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-14843 FILM NUMBER: 505171 BUSINESS ADDRESS: STREET 1: 7321 LINCOLN WAY CITY: GARDEN GROVE STATE: CA ZIP: 92641 BUSINESS PHONE: 7148980007 MAIL ADDRESS: STREET 1: 7321 LINCOLN WAY STREET 2: 7321 LINCOLN WAY CITY: GARDEN GROVE STATE: CA ZIP: 92641 10QSB 1 FORM 10QSB 1 - ------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB (Mark One) X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 1999 - 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 0-14843 DENSE-PAC MICROSYSTEMS, INC. (Exact Name of Small Business Issuer as Specified in Its Charter) CALIFORNIA 33-0033759 (State or other Jurisdiction of (IRS Employer Incorporation or Organization) Identification No.) 7321 LINCOLN WAY GARDEN GROVE, CALIFORNIA 92841 (Address of Principal Executive Offices) (714) 898-0007 Issuer's Telephone Number, Including Area Code Not Applicable (Former Name, Former Address and Former Fiscal Year if Changed Since Last Year) Check whether the issuer: (1) filed all reports required to be filed by Section 13 or 15 (d) of the Exchange Act during the past 12 months ( or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO --- --- APPLICABLE ONLY TO CORPORATE ISSUERS The number of shares of common stock, no par value, outstanding as of January 10, 2000 was 19,273,672. Transitional Small Business Disclosure Format (check one): Yes No X --- --- - ------------------------------------------------------------------------------- 2 PART I- FINANCIAL INFORMATION ITEM 1. Financial Statements Dense-Pac Microsystems, Inc. Consolidated Balance Sheet
November 30, February 28, 1999 1999 -------------- ------------- (unaudited) ASSETS Curent Assets: Cash and cash equivalents $ 2,518,111 $ 1,273,887 Accounts receivable, net 3,402,147 1,756,953 Inventories 1,579,165 3,696,471 Other current assets 90,641 166,400 ------------ ------------ Total current assets 7,590,064 6,893,711 Property, net 5,283,141 3,371,309 Other assets 14,360 14,360 ------------ ------------ $ 12,887,565 $ 10,279,380 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt 663,046 351,731 Accounts payable 1,338,830 2,793,304 Accrued compensation 757,030 240,762 Other accrued liabilities 288,753 217,176 Deferred royalty revenue 300,000 -- ------------ ------------ Total current liabilities 3,347,659 3,602,973 ------------ ------------ Notes payable to related parties -- 1,900,000 ------------ ------------ Other long-term debt 1,227,162 269,157 ------------ ------------ Stockholders' equity Common stock 19,649,549 17,544,267 Accumulated deficit (11,336,805) (13,037,017) ------------ ------------ Total stockholders' equity 8,312,744 4,507,250 ------------ ------------ $ 12,887,565 $ 10,279,380 ============ ============
See accompanying notes to consolidated financial statements. 3 Dense-Pac Microsystems, Inc. Consoidated Statements of Operations (Unaudited)
For the quarter ended Nine months ended, November 30, November 30, November 30, November 30, 1999 1998 1999 1998 ------------- ------------ ------------ ----------- NET SALES $ 7,544,364 $ 3,417,133 $ 20,940,982 $ 8,397,356 COST OF SALES Cost of sales 4,805,664 2,664,390 14,210,429 7,556,114 Inventory write-down 773,954 ------------ ------------ ------------ ------------ Total cost of sales 4,805,664 2,664,390 14,210,429 8,330,068 GROSS PROFIT 2,738,700 752,743 6,730,553 67,288 COSTS AND EXPENSES: Selling, general and administrative 1,448,094 710,184 3,974,609 2,326,144 Research and development 418,715 285,824 860,930 940,853 Other costs 372,447 ------------ ------------ ------------ ------------ Total costs and expenses 1,866,809 996,008 4,835,539 3,639,444 PROFIT (LOSS) FROM OPERATIONS 871,891 (243,265) 1,895,014 (3,572,156) ------------ ------------ ------------ ------------ OTHER EXPENSE (INCOME) Interest expense 55,870 31,653 189,456 147,902 Interest income (21,003) (14,443) (35,454) (70,906) ------------ ------------ ------------ ------------ Total other expense 34,867 17,210 154,002 76,996 PROFIT (LOSS) BEFORE INCOME TAX PROVISION 837,024 (260,475) 1,741,012 (3,649,152) INCOME TAX PROVISION 20,000 -- 40,800 2,400 ------------ ------------ ------------ ------------ NET PROFIT (LOSS) $ 817,024 $ (260,475) $ 1,700,212 $ (3,651,552) ============ ============ ============ ============ BASIC NET INCOME (LOSS) PER SHARE $ 0.04 ($ 0.01) $ 0.09 ($ 0.20) ============ ============ ============ ============ DILUTED NET INCOME (LOSS) PER SHARE $ 0.04 ($ 0.01) $ 0.09 ($ 0.20) ============ ============ ============ ============ WEIGHTED AVERAGE SHARES USED TO CALCULATE BASIC NET INCOME (LOSS) PER SHARE 18,858,000 17,810,000 18,594,000 17,800,000 ============ ============ ============ ============ WEIGHTED AVERAGE SHARES USED TO CALCULATE DILUTED NET INCOME (LOSS) PER SHARE 20,304,000 17,810,000 19,753,000 17,800,000 ============ ============ ============ ============
See accompanying notes to condensed financial statements. 4 DENSE-PAC MICROSYSTEMS, INC. Statements of Cash Flow (Unaudited)
For the nine months ended November 30, November 30, 1999 1998 ------------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 1,700,212 $(3,651,552) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 1,294,256 827,589 Write-off of fixed assets -- 373,196 Inventory write-down -- 773,954 Changes in operating assets and liabilities: Accounts receivable (1,645,194) (577,539) Inventories 2,117,306 102,102 Other current assets 75,759 85,569 Accounts payable (1,454,474) (97,460) Accrued compensation 516,268 (59,260) Accrued liabilities 71,577 51,870 Deferred royalty revenue 300,000 -- ----------- ----------- Net cash provided by (used in) operations 2,975,710 (2,171,531) ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Property additions (924,662) (434,326) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on other long-term debt (1,012,106) (286,854) Proceeds from issuance of common stock 205,282 508,529 ----------- ----------- Net cash (used in) provided by financing activities (806,824) 221,675 ----------- ----------- ........... NET INCREASE (DECREASE) IN CASH 1,244,224 (2,384,182) CASH AT BEGINNING OF YEAR 1,273,887 3,626,388 ----------- ----------- CASH AT END OF QUARTER $ 2,518,111 $ 1,242,206 =========== =========== SUPPLEMENTAL CASH FLOW INFORMATION: Interest paid $ 151,720 $ 151,720 =========== =========== Income taxes paid $ 800 $ 2,400 =========== =========== SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES: Acquisition of property under capital leases $ 2,281,426 =========== Conversion of notes payable to related parties to common stock $ 1,900,000 ===========
See accompanying notes to condensed financial statements. 5 DENSE-PAC MICROSYSTEMS, INC. CONDENSED NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOTE 1 - Dense-Pac Microsystems, Inc. (Dense-Pac or the Parent Company), a California corporation, and its wholly-owned subsidiary, TypeHaus, Inc. (TypeHaus) (together, the Company) designs and manufacturers proprietary chip-stacking components and subsystems. The Company's revenues are generated primarily from manufacturers of electronic components, as well as from subcontracts where the primary contractor is the United States government. The Company grants credit to customers included in the military, aerospace, and a variety of commercial industries. TypeHaus provides printer media devices, printer memory, and electronic laser products to a variety of OEM customers. It also supplies custom memory subsystems and support software for OEM manufacturers of laser printers. NOTE 2 - As contemplated by the Securities and Exchange Commission ("SEC") under Item 310 (b) of Regulation S-B, the accompanying financial statements and footnotes have been condensed and therefore do not contain all disclosures required by generally accepted accounting principles. This report on Form 10-QSB for the period ended November 30, 1999 should be read in conjunction with the Company's Annual Report on Form 10-KSB for the fiscal year ended February 28, 1999 filed with the SEC. In the opinion of the Company management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly the Company's financial position as of November 30, 1999 and November 30, 1998, and the results of its operations and its cash flows for the quarters ended November 30, 1999 and 1998. Results for the interim periods are not necessarily indicative of those to be expected for the full year. NOTE 3 - Recent Accounting Pronouncements - In June 1998, the Financial Accounting Standards Board (FASB) issued SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities. This statement establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts and for hedging activities. The Company does not invest in derivative investments nor does it engage in hedging activity and, therefore, does not believe that the adoption of SFAS No. 133 will have an impact on the Company's financial statements. In fiscal 1999, the Company adopted SFAS No. 131, Disclosures About Segments of an Enterprise and Related Information. This statement establishes standards for the way companies report information about operating segments in annual financial statements. It also establishes standards for related disclosure about products and services, geographic areas, and major customers. The Company engages in business activity primarily in two operating segments: the design and manufacturing of proprietary and patented three-dimensional, high-density semiconductor products and the design and manufacturing of memory and memory related products for the laser printer industry (through its wholly-owned subsidiary, TypeHaus, Inc.). Required operating segment data were as follows: 6
Quarter ended 11/30/99: ... Dense-Pac TypeHaus Eliminations Total - ---------------------- --------- -------- ------------ -------- (000's) Net sales ................. $ 7,222 $ 322 $ 7,544 Net income (loss) ......... $ 943 $ (126) -- $ 817 Total assets .............. $ 12,376$ 522 $ (10) $ 12,888 Quarter ended 11/30/98: ... Dense-Pac TypeHaus Eliminations Total - ---------------------- --------- -------- ------------ -------- (000's) Net sales ................. $ 2,976 $ 443 $ (2) $ 3,417 Net income(loss) .......... $ (329) $ 68 -- $ (261) Total assets .............. $ 8,153 $ 562 $ (10) $ 8,705 Nine months ended 11/30/99: Dense-Pac TypeHaus Eliminations Total - -------------------------- --------- -------- ------------ ------- (000's) Net sales ................. $ 19,777 $ 1,171 $ (7) $ 20,941 Net income ................ $ 1,720 $ (20) -- $ 1,700 Nine months ended 11/30/98: Dense-Pac TypeHaus Eliminations Total - -------------------------- --------- -------- ------------ --------- (000's) Net sales ................. $ 7,358 $ 1,054 $ (14) $ 8,397 Net income(loss) .......... $ (3,811) $ 160 -- $ (3,652)
NOTE 4 - The following table summarizes stock option activity under Dense-Pac's 1985 and 1996 Stock Option Plans for the nine months ended November 30, 1999:
Number of Price per Number of Shares Share Options Exercisable ----------- ----------------- ------------------- Balance, February 28, 1999 1,811,550 $ .81 - $ 4.41 617,247 ----------- ----------------- ======= Granted .... 411,470 1.56 - 7.00 Exercised .. (204,620) .81 - 2.34 Canceled ... (97,750) ----------- ----------------- Balance, November 30,1999 1,920,650 $ .81 - $ 7.00 728,580 =========== ================= =======
NOTE 5 - Basic and diluted net income per share have been computed under the guidelines of Statement of Financial Accounting Standards No. 128, "Earnings per Shares." Basic net income per share is computed by dividing net income by the weighted average number of common stock outstanding for the period. Diluted net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding for the period, adjusted for the dilutive effect of common stock equivalents, consisting of dilutive common stock options. Dilutive securities are not considered in periods with a loss. The following table sets forth the reconciliation of basic to diluted shares used in computing net income per share (in thousands): 7
Three months ended Nine months ended November 30 November 30 ----------------------- --------------------- 1999 1998 1999 1998 ---- ---- ---- ---- Shares used in computing basic net income (loss) per share............... 18,858 17,810 18,594 17,800 Diluted effect of options............... 1,446 - 1,160 - Shares used in computing diluted net income (loss) per share............... 20,304 17,810 19,753 17,800 ------ ------ ------ ------
For the three and nine months ended November 30, 1998, all common stock equivalents were excluded from the computation of diluted net loss per share because a loss was incurred for the three and nine month period. At November 30, 1999, 1,920,650 shares of the Company's common stock were outstanding at exercise prices ranging from $.81 to $7.00. At November 30, 1998, options to purchase 1,544,725 shares of the Company's common stock were outstanding at an exercise prices ranging from $.81 to $4.41. ITEM 2 - Management's Discussion and Analysis or Plan of Operation RESULTS OF OPERATIONS Net sales for the quarter ended November 30, 1999 increased $4,127,000 or 121% compared to the quarter ended November 30, 1998. For the nine months ended November 30, 1999, sales increased $12,544,000 or 149%, as compared to the nine months ended November 30, 1998. The increase in net sales for the quarter and nine months ended November 30, 1999, when compared to the same periods in the prior year was due primarily to a focused sales effort associated with the Company's high density commercial products which continue to be accepted in the marketplace. Additionally, the Company's industrial, defense and aerospace products continue to rebound with a number of new design wins and contracts. In the nine month period ended November 30, 1998, the Company had marketed a significant number of off-the-shelf type commercial products and concentrated a majority of its efforts on selling these lower margin commercial products. At the end of August, 1998, the Company changed its marketing strategy to offer only the Company's patented technology in a format to support a larger customer base. Additionally in August 1998, the sales department was re-structured to differentiate sales personnel in the area of commercial sales from industrial, defense and aerospace sales. Management believes this has increased the effectiveness of the sales personnel as individuals could be utilized based on their experience, increasing the revenue associated with the Company's focused product line. See "Forward Looking Statements." Gross profit as a percentage of sales was 36% for the three month period ended November 30, 1999, as compared to a margin of 22% for the three month period ended November 30, 1998. For the nine month period ended November 30, 1999 the margin was 32% as compared to a margin of 1% in the same period in the prior year. The increase in the gross margin for the quarterly period and the nine month period ended November 30, can be attributed 8 to the complete change in the type of products that the Company was selling during these periods as compared to the comparable periods of the prior fiscal year. Additionally, the Company received approximately $ 247,000 in royalty revenue during the quarter which directly increased the gross margin of the Company. During the nine month period ended November 30, 1999, the Company increased its production by acquiring new equipment, creating economics of scale which resulted in an increase in gross margin. One other factor in the margin improvement was that recently the Company typically would not purchase the memory for stacking orders, but rather require the customer to consign the memory to the Company. In situations where the Company may purchase the memory on behalf of the customer, the price to the customer was fixed at the time of the order, to eliminate risk to the Company of potential fluctuation in memory prices. See "Forward Looking Statements." During the nine month period ended November 30, 1998, slower moving ceramic products that were being replaced by newer technology were written-down in inventory value by approximately $450,000. Additionally, the inventory reserve for obsolete products was increased by $100,000 and the scrap associated with the production of commercial and other products was written-off, representing a charge of approximately $270,000. These charges were recognized in the cost of goods sold for the quarter. In addition, at the end of the quarter, the Company discontinued several commercial product lines and commercial ceramic memory module lines, resulting in a charge of $774,000. Selling, general and administrative expenses increased in the third quarter of fiscal 1999 by $738,000 or 104% from the third quarter of the prior fiscal quarter. For the nine months ended November 30, 1999 these expenses increased $1,648,000 or 71% over the same period in the prior year. The increase in selling, general and administrative expenses during the related periods is primarily related to the increase in revenues. With an increase of 121% in revenues for the first nine months of the fiscal year compared to the same fiscal period in the prior year, expenses increased to support the new level of operations. There were also increases in legal expense for the nine months ended November 30, 1999 of $265,000 associated with a patent infringement lawsuit and other legal expenses associated with the filing of new patents. For the nine month period ended November 30, 1998, the Company wrote-off $372,000 of equipment used in the production of commercial products no longer bei ng offered for sale by the Company. For the quarter ended November 30, 1999, research and development costs increased $133,000 or 46% from the same quarter in the previous fiscal year. For the nine months ended November 30, 1999, such expenses decreased by $80,000 or 8% as compared to the prior year nine month period. The increase in the current quarter is primarily due to a concentrated effort to develop and produce new advanced packaging technology for future products. The nine month decrease is due to the Company completing the development of the commercial plastic product that the Company is currently selling in the prior year. The Company is continuing to invest in research and development for new products in the aerospace and commercial marketplace. See "Forward Looking Statements". For the three months ended November 30, 1999, other expenses increased $18,000 from the same period last year and for the nine months ended November 30, 1999, other expenses increased $77,000 as compared to the same period in the prior fiscal year. This increase is due to additional interest expense associated with the utilization of debt to finance equipment purchases, offset by reduced interest expense associated with the conversion of notes payable to related parties. 9 LIQUIDITY AND CAPITAL RESOURCES The Company's primary source of liquidity for the first nine months of fiscal 2000 was cash generated from operations. The Company continued to improve its operating performance and generate cash for operations. Assuming that the Company is successful in its efforts to continue its third quarter financial performance, the Company believes that the cash from operations will be sufficient to meet the Company's operating cash needs for the next twelve months. See "Forward Looking Statements." Net cash provided by operations was approximately $2,976,000 during the first nine months of fiscal year 2000. This increase was primarily the net result of net income of $1,700,000, depreciation and amortization of $1,294,000, an increase in accounts receivable of $1,645,000, and a decrease in inventories of $2,117,000 primarily attributed to requiring customers to consign inventory to the Company. Management considers that the requirement to consign invesntory represents a one time benefit to cash flows. The Company purchased approximately $3,206,000 in new equipment during the first nine months of fiscal year 2000, of which approximately $2,281,000 was financed through capital leases. The Company is expecting that it will incur approximately $250,000 of additional lease debt with the purchase of additional equipment during the fourth quarter. See "Forward-Looking Statements". On April 8, 1999, the Company amended the terms of its $1.8 million loan payable to a major shareholder and a $100,000 loan payable to a director. Under the terms of the amendment, $1,200,000 of the outstanding principal was converted into 662,069 shares of common stock at $1.8125 per share, the fair market value of the Company's common stock at the date of the amendment. The remaining outstanding principal remained as debt with interest at 8.75% per annum, interest only payments due quarterly and the principal due on December 31, 2000. On November 1, 1999, the remaining outstanding principal was converted into 386,208 shares of common stock at the price of $1.8125, based on the terms defined in the agreement. The Company also had a loan from a Belgium bank, previously due November 2000, which provided for semi-annual principal payments of $70,533. The interest rate was two points over the LIBOR rate in effect at the time of each principal payment, and interest was payable semi-annually. On November 30, 1999, the Company paid the outstanding balance of this loan of $141,126 plus interest. At November 30, 1999, there was no outstanding amount to the Belgium bank. FORWARD-LOOKING STATEMENTS Included in the Notes to Consolidated Financial Statements, this Item 2. Management's Discussion and Analysis or Plan of Operation and elsewhere in this Report are certain statements that do not present historical information or express management's beliefs. These are forward-looking statements and reflect the Company's current assumptions and expectations. Although the Company believes that its current views and expectations are based on reasonable assumptions, there can no assurance that the Company's goals or expectations will be realized. Numerous factors may affect the Company's actual results and may cause results to differ materially from those expressed in forward-looking statements made by or on behalf of the Company. 10 Some of these factors include demand for and acceptance of new and existing products, technological advances and product obsolescence, availability of semiconductor devices at reasonable prices, competitive factors, costs and risks concerning litigation, the ability to protect proprietary intellectual property, and the availability of capital to finance operations and if applicable, growth, the willingness of customers to procure and consign inventory to the Company, competitive conditions, and pricing pressures. These and other factors which could cause actual results to differ materially from those in the forward looking statements are discussed in greater detail in the Company's Annual Report on Form 10-KSB for the year ended February 29, 1999 under the heading "Cautionary Statements". These Cautionary Statements are incorporated by reference herein. Investors are cautioned against ascribing undue weight to any forward looking statements herein. PART II - OTHER INFORMATION Item 1 - Legal Proceedings On September 23, 1998, Dense-Pac Microsystems, Inc. was served with a complaint from Simple Technology, Inc., filed in U.S. District Court for the Central District of California, Santa Ana Division for an undetermined amount, alleging that Dense-Pac's stacking technology infringes on a Simple Technology patent. Dense-Pac intends to vigorously defend itself against such charges. On October 23, 1998, Dense-Pac filed a cross-compliant in the U.S. District Court for the Central District of California, Santa Ana for patent infringement against Simple Technology. The suit also alleges that Simple Technology unlawfully interfered with Dense-Pac's sales efforts. In April 1999, Dense-Pac filed two motions for summary judgement, one relating to Dense-Pac's non-infringement of the Simple patent and the second relating to prior art, which is alleged to invalidate the claims in the Simple Technology patent. Simple Technology also filed a summary judgement motion. The ruling on the summary motions is still open. The ultimate outcome or any resulting potential loss cannot be determined at this time. Item 6 - Exhibits and Reports on Form 8-K (a) Exhibits The exhibits listed below are hereby filed with the Securities and Exchange Commission (the "SEC") as part of the Quarterly Report. Exhibit 27 - Financial Data Schedule Exhibit 99.1 - The text under the heading "Cautionary Statements" on pages 18 to 20 of the Company's Form 10-KSB filed on May 26, 1999 with the SEC (b) Reports on Form 8-K - No reports on Form 8-K were filed during the third quarter of fiscal 2000 covered by this Form 10-QSB. 11 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. DENSE-PAC MICROSYSTEMS, INC. (Small Business Issuer) January 11, 2000 /s/ Ted Bruce - ------------------------------- ------------------------------------------- Date Ted Bruce, Chief Executive Officer January 11, 2000 /s/ William M. Stowell - ------------------------------- ------------------------------------------- Date William M. Stowell, Chief Financial Officer EX-27 2 EXHIBIT 27
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM QUARTERLY REPORT -- FORM 10-QSB FOR THE PERIOD ENDED NOVEMBER 30, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FORM 10-QSB FOR QUARTER ENDED NOVEMBER 30, 1999. 9-MOS FEB-28-2000 MAR-01-1999 NOV-30-1999 2,518,111 0 3,522,147 120,000 1,579,165 7,590,064 8,725,300 3,442,159 12,887,565 3,347,659 0 0 0 19,649,549 0 12,887,565 20,940,982 20,940,982 14,210,429 19,045,968 154,002 120,000 189,456 1,741,012 40,800 1,700,212 0 0 0 1,700,212 .09 .09
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