-----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, OqYW8g3kqm6nbJTdYVJXWwGQQK4n4JjBWuEeM3bSAkwHKlKhBFGGFT/0FOW3Ah1t VSR7WPxZXdCFKVKqlWmwgQ== 0000889812-97-001178.txt : 19970520 0000889812-97-001178.hdr.sgml : 19970520 ACCESSION NUMBER: 0000889812-97-001178 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970515 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MARK SOLUTIONS INC CENTRAL INDEX KEY: 0000807397 STANDARD INDUSTRIAL CLASSIFICATION: PREFABRICATED METAL BUILDINGS & COMPONENTS [3448] IRS NUMBER: 112684481 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-17118 FILM NUMBER: 97607323 BUSINESS ADDRESS: STREET 1: 1515 BROAD ST STREET 2: PARKWAY TECHNICAL CENTER CITY: BLOOMFIELD STATE: NJ ZIP: 07003 BUSINESS PHONE: 2013688118 MAIL ADDRESS: STREET 1: 1515 BROAD ST STREET 2: PARKWAY TECHNICAL CENTER CITY: BLOOMFIELD STATE: NJ ZIP: 07003 FORMER COMPANY: FORMER CONFORMED NAME: SHOWCASE COSMETICS INC DATE OF NAME CHANGE: 19920703 10-Q 1 QUARTERLY REPORT 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: March 31, 1997 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: 0-17118 Mark Solutions, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 11-2864481 (State or Other Jurisdiction (I.R.S. Employer of Incorporation) Identification No.) Parkway Technical Center 1515 Broad Street Bloomfield, New Jersey 07003 (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, Including Area Code: (201) 893-0500 Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report Indicate by check whether 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 registrant 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: Indicate the number of shares outstanding of each of the issuer's classes of Common Stock, as of the latest practicable date: Common Stock, $ .01 par value: 14,755,467 shares outstanding as of May 13, 1997. MARK SOLUTIONS, INC. Form 10-Q for Quarter Ended March 31, 1997 Index Part I. Financial Information Page No. Item 1. Financial Statements Consolidated Balance Sheets as of March 31, 1997 and June 30, 1996 ........ 3 Consolidated Statements of Operations for the Nine Months Ended March 31, 1997 and March 31, 1996 ....... 5 Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 1997 and March 31, 1996 ................. 6 Notes to Consolidated Financial Statements ... 7 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 6. Exhibits and Reports on Form 8-K ............. 12 Signatures 13 Mark Solutions, Inc. and Subsidiaries Consolidated Balance Sheets
Assets March 31, 1997 June 30, 1996 -------------- ------------- Current Assets: Cash and cash equivalents $ 37,924 $ 263,922 Restricted cash 18,861 181,781 Accounts receivable 2,299,139 904,596 Inventories 943,965 146,305 Other current assets 110,125 133,325 ---------- ---------- Total Current Assets $3,410,014 $1,629,929 Property and Equipment: Machinery and equipment 1,488,255 1,472,528 Demonstration equipment 436,348 395,419 Office furniture and equipment 378,594 324,006 Leasehold improvements 41,568 14,254 Vehicles 62,283 68,783 Property held under capital lease --- 40,929 ---------- ---------- Total 2,407,048 2,315,919 Less: Accumulated depreciation and amortization 2,047,565 1,939,415 ---------- ---------- Net Property and Equipment 359,483 376,504 Other Assets: Costs in excess of net assets of businesses acquired, less accumulated amortization of $174,950 and $17,495 at March 31, 1997 and June 30, 1996, respectively 874,741 1,032,196 Debt issue costs, less accumulated amortization of $47,454 at March 31, 1997 115,246 --- Other assets 79,549 45,134 ---------- ---------- Total Other Assets 1,069,536 1,077,330 ---------- ---------- Total Assets $4,839,033 $3,083,763 ========== ==========
- 3 - Mark Solutions, Inc. and Subsidiaries Consolidated Balance Sheets
Liabilities and Stockholders' Equity March 31, 1997 June 30, 1996 -------------- ------------- Current Liabilities: Accounts payable $ 1,330,900 $ 499,254 Short-term borrowings 250,000 --- Current maturities of long-term debt 97,434 80,558 Current portion of obligations under capital leases --- 5,921 Due to related parties 204,076 45,194 Accrued liabilities 165,373 323,138 ----------- ---------- Total Current Liabilities $ 2,047,783 $ 954,065 Other Liabilities: Long-term debt excluding current maturities 1,739,343 19,989 Long-term portion of obligations under capital leases --- 30,308 ----------- ---------- Total Other Liabilities 1,739,343 50,297 Commitments and Contingencies Stockholders' Equity: Common stock, $.01 par value, 25,000,000 shares authorized, 14,616,282 shares issued and outstanding at March 31, 1997 and 13,576,315 shares issued and outstanding at June 30, 1996 144,850 135,762 Additional paid-in capital 26,222,518 24,260,299 Retained earnings (deficit) (25,315,461) (22,316,660) ---------- ---------- Total Stockholders' Equity 1,051,907 2,079,401 --------- --------- Total Liabilities and Stockholders' Equity $ 4,839,033 $ 3,083,763 ========= ==========
-4- Mark Solutions, Inc. and Subsidiaries Consolidated Statements of Operations
Nine Months Ended Three Months Ended March 31 March 31 ----------------------------- ----------------------------- 1997 1996 1997 1996 ----------- ----------- ----------- ---------- Revenues: Sales $ 3,276,578 $ 3,206,371 $ 1,581,371 $ 655,879 ----------- ----------- ----------- ---------- Cost and Expenses: Cost of sales 2,665,643 3,656,949 1,307,268 749,210 Selling, general and administrative 2,899,160 2,807,949 1,076,520 808,724 ----------- ----------- ----------- ---------- Total Costs and Expenses 5,564,803 6,464,898 2,383,788 1,557,934 ----------- ----------- ----------- ---------- Operating (Loss) (2,288,225) (3,258,527) (802,417) (902,055) ---------- ----------- ----------- ---------- Other Income (Expense): Interest earned 21,272 20,167 4,126 8,123 Interest expense (728,728) (8,344) (203,145) (3,365) Loss on asset disposal (3,120) (72,117) --- (72,117) Gain on sale of equipment --- 12,116 --- 12,116 ----------- ----------- ----------- ---------- Net Other Income (Expense) (710,576) (48,178) (199,019) (55,243) ----------- ----------- ----------- ---------- (Loss) From Continuing Operations (2,998,801) (3,306,705) (1,001,436) (957,298) ----------- ----------- ----------- ---------- Discontinued Operations: Loss of Bar-Lor Subsidiaries --- (35,078) --- --- Loss on disposal of Bar-Lor Subsidiaries --- (69,425) --- --- ----------- ----------- ----------- ---------- Loss From Discontinued Operations --- (104,503) --- --- ----------- ----------- ----------- ---------- Net (Loss) $ (2,998,801) $ (3,411,208) $ (1,001,436) $ (957,298) ============ ============ ============ =========== (Loss) Per Share $ (.21) $ (.27) $ (.10) $ (.07) ============ ============ ============ =========== Weighted Average Shares Outstanding 13,974,665 12,500,250 14,475,378 12,923,356 ============ ============ ============ ============ Dividends Paid $ - 0 - $ - 0 - $ - 0 - $ - 0 - ============ ========== ========== ========== -5- Mark Solutions, Inc. and Subsidiaries Consolidated Statements of Cash Flows
Nine Months Ended Nine Months Ended March 31, 1997 March 31, 1996 ----------------------------- ----------------------------- Cash Flows From Operating Activities: Net (loss) $ (2,998,801) $ (3,411,208) Adjustments to reconcile net (loss) to net cash (used for) operating activities: Depreciation and amortization $ 316,453 $ 466,350 Imputed and accrued interest expense on convertible debt 637,810 --- Loss from discontinued operations --- 104,503 Loss on asset disposal --- 60,001 Loss on sale of equipment 3,120 --- (Increase) decrease in assets: Restricted cash 162,920 58,269 Accounts receivable (1,394,543) 344,016 Costs and estimated earnings in excess of billings on contract in process --- (95,714) Inventories (797,660) (53,724) Other current assets 23,200 (109,226) Other assets (34,415) (67,154) Increase (decrease) in liabilities: Accounts payable 831,646 (869,801) Due to related parties 158,882 (162,036) Accrued liabilities (157,765) (50,934) ---------- --------- Net adjustments to reconcile net (loss) to net cash (used for) operating activities (250,352) (375,450) --------- --------- Net Cash (Used for) Operating Activities (3,249,153) (3,786,658) Cash Flows From Investing Activities: Additions to property and equipment (97,629) (35,437) Proceeds from disposition of segment --- 100,000 Proceeds on sale of assets --- 12,500 ---------- --------- Net Cash Provided by (Used for) Investing Activities (97,629) 77,063 Cash Flows From Financing Activities: Repayment of notes payable for equipment --- (25,394) Proceeds from short-term borrowings 250,000 --- Proceeds from convertible debt 2,950,000 --- Increase from notes payable to bank 12,649 --- Repayment of notes payable to bank (12,561) --- Payment of offering costs and commissions --- (6,092) Proceeds from issuance of common stock 105,894 3,639,477 Debt issue costs (162,700) --- Payment of issuance costs (22,498) --- ---------- --------- Net Cash Provided by Financing Activities 3,120,784 3,607,991 ---------- ---------- Net (Decrease) in Cash (225,998) (101,604) Cash at Beginning of Year 263,922 116,704 ---------- ---------- Cash at End of Period $ 37,924 $ 15,100 ========== ==========
-6- Mark Solutions, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note 1 - Financial Statement Presentation: In the opinion of management, the accompanying consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the financial position of Mark Solutions, Inc. and Subsidiaries (the "Company") as of March 31, 1997 and June 30, 1996 and the results of operations and cash flows for the nine months ended March 31, 1997 and 1996. The accounting policies followed by the Company are set forth in the Notes to Financial Statements included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 1996 and such notes are incorporated herein by reference. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full fiscal year. Convertible Debenture Conversion Discount- The conversion discount rate to market value of convertible debentures to common stock is recorded as interest expense over the period from the sale of the debentures to the first conversion date. Certain reclassifications have been made to the current and prior year amounts to conform to the current period presentation. Note 2 - Inventories: Inventories at March 31, 1997 and June 30, 1996 consist of the following: March 31, 1997 June 30, 1996 -------------- ------------- Raw materials $ 717,413 $ 127,477 Finished goods 226,552 18,828 ----------- ---------- $ 943,965 $ 146,305 =========== ========== Note 3 - Short-Term Borrowings: The Company has available a bank line of credit based on 60% of eligible accounts receivable and 32% of the appraised value of eligible machinery and equipment, not to exceed the line of credit amount of $400,000. The above revolving credit is collateralized by substantially all of the Company's assets plus the personal guarantee of the Company's president. Interest is payable monthly at 1-1/2% above the bank's prime rate and is due March 1998. - 7 - Note 4 - Convertible Debentures: On August 23, 1996, the Company sold $ 2,200,000 principal amount 7% convertible debentures due August 22, 1998 (the "1996 Debentures"). On December 26, 1996, the terms of the 1996 Debentures were amended to (i) prohibit additional conversions until March 31, 1997 unless the trading price of the common stock reaches levels in excess of $ 3.00 per share and (ii) modify the conversion price to the lesser of (a) $ 1.38 or (b) 80% of the average closing bid price on the five trading days immediately preceding the date(s) of conversion. The outstanding balance of $ 950,000 as of March 31, 1997 is included in long-term debt excluding current maturities on the accompanying balance sheet. In connection with the issuance of the 1996 Debentures, the Company incurred $ 162,700 of debt issue costs. These costs have been capitalized and are amortized over the term of the 1996 Debentures. On January 21, 1997, the Company sold $ 750,000 principal amount 7% convertible debentures due January 20, 1999 (the "1997 Debentures"). The 1997 Debentures are convertible, on or after July 15, 1997, into shares of common stock at a conversion price which is the lesser of (i) $ 2.125 or (ii) 80% of the average closing bid price on the five trading days immediately preceding the date(s) of conversion. Interest on the Debentures is payable in cash or common stock at the Company's option. Included in interest expense for the period ended March 31, 1997 is $ 590,000 of imputed interest which represents the twenty percent discount on conversion of each of the above convertible debentures into common stock. Note 5 - Common Stock and Additional Paid-In Capital: During the nine months ended March 31, 1997, the Company issued 43,572 shares of common stock as a result of exercise of warrants, receiving gross proceeds of $ 105,894. Note 6 - Legal Proceedings: On March 3, 1997 a verdict was received in favor of the Company on the complaint of JTF Management Associates Ltd. and Joel Fishman alleging commissions of $ 10,000,000 due from the Company. The Company was not awarded any damages on its counterclaims. - 8 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS General Mark Solutions, Inc.'s (the "Company") results of operations, liquidity, and working capital position have been historically impacted by sporadic sales of its principal products, modular steel cells. This sales pattern is primarily the result of the construction industry's unfamiliarity with the Company's products and the emergence of competition. The Company's modular steel products represent an alternative to traditional concrete construction methods, and penetration into the construction market has met resistance typically associated with an unfamiliar product. Accordingly, the Company has been, and will continue to be, subject to significant sales fluctuations until its modular cell technology receives greater acceptance in the construction market, which management believes will occur as new projects are awarded and completed. In an attempt to achieve greater acceptance in the architectural, engineering and construction communities, the Company's internal sales and engineering personnel and its nationwide network of independent sales representatives conduct sales presentations and participate in trade shows and other promotional activities. The Company has expanded its marketing efforts to more aggressively pursue domestic and international joint venture and design/build development opportunities to obtain projects and improve its results of operations in efforts to achieve profitability. Since January 1, 1996, the Company has reduced office staff. From January 1996 to September 1996, the Company decided not to occupy factory space, but outsourced the manufacturing of its small modular cell projects to third party manufacturers. As of October 1996 the Company has occupied new factory facilities. The Company will continue to review its overhead and personnel expenses based on operating results and prospects. The Company is continually bidding on and soliciting joint venture opportunities regarding construction projects. The anticipated revenues from any major project, would substantially improve the Company's operating results and cash flow, although no assurances can be given that any of these projects will be awarded to the Company. On July 17, 1996, the Company was awarded a contract from the State of New York which management anticipates will generate revenues of approximately $ 50,000,000 over three years ending December 31, 1999. Through February 14, 1997 the Company has received orders aggregating approximately $3,000,000 under the New York State agreement. The Company currently has bids pending on approximately $ 12,140,000 in projects. For the nine months ended March 31, 1997, the Company submitted bids on approximately $ 31,800,000 in projects, of which $ 743,029 was awarded to the Company. The Company continues to be under consideration for approximately $12,140,000 of these projects. Through its subsidiary, MarkCare Medical Systems, Inc. ("MarkCare"), the Company continues to market its IntraScan II PACS and teleradiology systems and is forming strategic alliances with other companies with related medical products. Consistent with this marketing approach, the Company has entered into a master supplier agreement with Data General Corporation, a large computer hardware and systems integration provider with a client base of over 1,000 institutions, pursuant to which Data General will include the IntraScan II PACS and teleradiology software applications in proposals to healthcare institutions. Management anticipates that the sale of the IntraScan II systems will begin to generate revenues in the calendar year ending December 31, 1997, although no assurances can be given in this regard. If the IntraScan marketing plan is successful, management believes that the revenues from resulting sales will be more constant then those of the modular steel products presently and will reduce fluctuations in the Company's results of operations and financial condition. - 9 - Results of Operations The substantial majority of the Company's operating revenues for the reported periods were derived from the sale of its modular cells for correctional institutions. Management believes that the sale of these modular steel products will continue to represent the substantial majority of the Company's operating revenues through September 30, 1997. For the nine months ended March 31, 1997, sales of the modular steel products represented 94.7% of total revenues. Revenues from sales for the nine months ended March 31, 1997 increased 2.2% to $ 3,276,578 from $ 3,206,371 for the comparable 1996 period. These stagnant sales are attributable to the continued sporadic sales of its modular steel cell products as discussed in "General". Cost of sales for the nine months ended March 31, 1997, which consists primarily of materials, labor, supplies, and fixed factory overhead expense, decreased 27.1% to $ 2,665,643 from $ 3,656,949 for the comparable 1996. Cost of sales as a percentage of revenues was 81.4% for the nine months ended March 31, 1997 as compared to 114.0% for the comparable 1996 period. Despite losses incurred in connection with the outsourcing of projects for the three months ended September 30, 1996 and factory start up costs incurred in the quarter ended December 31, 1996, the Company reduced its cost of sales as a percentage of revenues for the modular cell products from 114.0% for the period ended March 31, 1996 to 82.4% for the period ended March 31, 1997 through improved gross profit margins and operating efficiencies. For the nine months ended March 31, 1997 fixed factory overhead expenses were $ 114,767 as compared to $ 154,090 for the comparable 1996 period due to savings associated with the decision not to maintain a factory for the three months ended September 30, 1996. Additionally, the Company's MarkCare product line has lower costs of sales (49.8% as a percentage of revenues) as compared to the modular cell product line. Management believes that the substantial majority of the revenues of the MarkCare line will be attributable to software sales and support services, which have virtually no costs of sales. Selling, general and administrative expenses for the nine months ended March 31, 1997 increased 3.2% to $ 2,899,160 from $ 2,807,949 for the comparable 1996 period. This stabilization is attributable to a reductions in office staff, trade show expenses, professional fees and the elimination of amortization expenses related to the IntraScan I acquisition, partially offset by the inclusion of $ 631,564 of selling, general and administrative expenses of Simis Medical Imaging, Ltd. which was acquired in May 1996. Liquidity and Capital Resources The Company's working capital requirements result principally from staff and management overhead, office expense and marketing efforts. The Company's working capital requirements have historically exceeded its working capital from operations due to the sporadic sales of its products. Accordingly, the Company has been dependent and, absent significant improvements in operations, will continue to be dependent on the infusion of new capital in the form of equity or debt financing to meet its working capital deficiencies, although no assurance can be given that such financing will be available. The Company believes its present available working capital is sufficient to meet its operating requirements through July 31, 1997. On March 10, 1997, the Company obtained a $400,000 revolving line of credit collateralized by substantially all of the Company's assets. To the extent it requires additional capital, the Company will continue to principally look to private sources. On August 23, 1996, the Company sold $ 2,200,000 principal amount 7% convertible debentures due August 22, 1998 (the "1996 Debentures"). The 1996 Debentures, as amended, are convertible into shares of Common Stock at a conversion price which is the lesser of (i) $ 1.38 or (ii) 80% of the average closing bid price on the five trading days immediately preceding the date(s) of conversion. Interest on the 1996 Debentures is payable in cash or Common Stock at the Company's option. - 10 - On January 21, 1997, the Company sold $ 750,000 principal amount 7% convertible debentures due January 20, 1999 (the "1997 Debentures"). The 1997 Debentures are convertible, on or after July 15, 1997, into shares of Common Stock at a conversion price which is the lesser of (i) $ 2.125 or (ii) 80% of the average closing bid price on the five trading days immediately preceding the date(s) of conversion. Interest on the 1997 Debentures is payable in cash or Common Stock at the Company's option. The Company presently has an effective registration statement relating to 3,368,880 shares of Common Stock issuable upon the exercise of warrants and options, the majority of which are at exercise prices ranging from $ 2.00 to $5.00 per share. The Company will initially look to the exercise of presently outstanding warrants and options to meet working capital deficits, however, if sufficient securities are not exercised, the Company will be required to seek additional private sales of its securities, which, if available, would most likely be at discounts to the current trading price of the Company's Common Stock. The Company's inventory increased to $ 943,965 at March 31, 1997 from $ 146,305 at June 30, 1996 as the Company increased purchases of raw materials and components for projects in production. Cash and cash equivalents decreased from $ 263,922 at June 30, 1996 to $ 37,924 at March 31, 1997 as certain accounts payable were satisfied. During the six months ended March 31, 1997, cash and cash equivalents decreased $1,517,955 as accounts receivable related to projects for which the Company purchased raw materials and cell components remain outstanding. Working capital increased to $ 1,362,231 at March 31, 1997 from $ 675,864 at June 30, 1996 primarily due to proceeds from the 1996 Debentures and 1997 Debentures placements offset by operating expenses. - 11 - PART II - OTHER INFORMATION Item 1. Legal Proceedings. On March 3, 1997 a verdict in favor of the Company was rendered in the Supreme Court of New York State, Westchester County (JTF Management Associates, Ltd. and Joel Fishman v. Mark Correctional Systems, Inc. and Mark Lighting Index No. 93-22722). Plaintiffs alleged damages for commissions in the sum of $ 10 million. The Company was not awarded any damages on its counterclaim for fraud and misrepresentation. Item 2. Changes in Securities. (a) On August 23, 1996, the Company sold $ 2,200,000 principal amount 7% convertible debentures due August 22, 1998 (the "1996 Debentures"). On December 26, 1996, the terms of the 1996 Debentures were amended to (i) prohibit additional conversions until March 31, 1997 unless the trading price of the common stock reaches levels in excess of $ 3.00 per share and (ii) modify the conversion price to the lesser of (a) $ 1.38 or (b) 80% of the average closing bid price on the five trading days immediately preceding the date(s) of conversion. The outstanding principal amount of the debentures as of March 31, 1997 was $ 950,000. (c) On January 21, 1997, the Company sold $ 750,000 principal amount 7% convertible debentures due January 20, 1999 (the "1997 Debentures") to Frank Brosens. The 1997 Debentures are convertible, on or after July 15, 1997, into shares of common stock at a conversion price which is the lesser of (i) $ 2.125 or (ii) 80% of the average closing bid price on the five trading days immediately preceding the date(s) of conversion. Interest on the Debentures is payable in cash or common stock at the Company's option. The 1997 Debentures were sold without registration in reliance of the exemption provided by Section 4(2) of the Securities Act of 1933 due to the sophistication of the investor and the limited nature of the offering. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits Exhibit No. Exhibit Description 27.1 Financial Data Schedule - 12 - SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed by the undersigned thereunto duly authorized. Date: May 14, 1997 MARK SOLUTIONS, INC. By: /s/ Carl Coppola Carl Coppola - President, Chief Executive Officer and Chief Financial Officer - 13 - EX-27.1 2 FINANCIAL DATA SCHEDULE
5 The schedule contains summary financial information extracted from the consolidated financial statements and is qualified in its entirety by reference to such financial statements. 9-MOS JUN-30-1997 JUL-01-1996 MAR-31-1997 37,924 0 2,299,139 0 943,965 3,410,014 2,407,048 2,047,565 4,839,033 2,047,783 0 0 0 144,850 907,057 4,839,033 3,276,578 3,276,578 2,665,643 5,564,803 3,120 0 707,456 (2,998,801) 0 (2,998,801) 0 0 0 (2,998,801) (.21) (.21)
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