-----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, CpmasmDNLbUzH7n3UGfFgr1gANC0x96uFVRlKerinnfaFgpH3id5X1M5vuYa9e5d vU3kTmuWimND8XtJS5v94A== 0000950005-97-000921.txt : 19971113 0000950005-97-000921.hdr.sgml : 19971113 ACCESSION NUMBER: 0000950005-97-000921 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971113 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: EROX CORP CENTRAL INDEX KEY: 0000878616 STANDARD INDUSTRIAL CLASSIFICATION: PERFUMES, COSMETICS & OTHER TOILET PREPARATIONS [2844] IRS NUMBER: 943107202 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-23544 FILM NUMBER: 97715502 BUSINESS ADDRESS: STREET 1: 4034 CLIPPER CT CITY: FREMONT STATE: CA ZIP: 94538 BUSINESS PHONE: 5102266874 10QSB 1 FORM 10QSB U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB (MARK ONE) [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended September 30, 1997 [ ] TRANSITION REPORT UNDER SECTION 13 OR A5(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (no fee required) Commission file number 0-23544 EROX CORPORATION --------------------------------------------- (Name of small business issuer in its charter) California 94-3107202 - --------------------------------------------- ------------------- (State or other jurisdiction of incorporation (I.R.S. employee or organization) Identification No.) 4034 Clipper Court, Fremont, California 94538 - --------------------------------------------- ------------------- (Address of principal executive offices) (Zip code) Issuer's telephone number: (510) 226-6874 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 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 REGISTRANTS) State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date. 10,289,488 shares of Common Stock as of October 31, 1997. Total Pages: 16 EROX CORPORATION INDEX
Page ---- PART I FINANCIAL INFORMATION Item 1. Financial Statements Condensed Balance Sheets (Unaudited) as of September 30, 1997 and December 31, 1996...........................................................................2 Condensed Statements of Operations (Unaudited) for the Three Months and Nine Months Ended September 30, 1997 and 1996.....................................................................3 Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 1997 and 1996...............................................................4 Notes to Condensed Financial Statements (Unaudited).............................................5 Item 2. Management's Discussion and Analysis Management's Discussion and Analysis of Financial Condition and Results of Operations...........6 PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K................................................................10 SIGNATURES.......................................................................................................11
PART I FINANCIAL INFORMATION Item 1. Financial Statements EROX CORPORATION Condensed Balance Sheets (unaudited)
September 30, December 31, 1997 1996 ------------ ------------ Assets Current assets: Cash and cash equivalents $ 11,857 $ 2,059,084 Accounts receivable, net of allowances of $553,853 3,249,142 2,813,135 and $501,677 in 1997 and 1996, respectively Inventory 4,187,583 2,906,517 Other current assets 166,674 74,414 ------------ ------------ Total current assets 7,615,256 7,853,150 Property and equipment, net 115,404 71,516 ------------ ------------ $ 7,730,660 $ 7,924,666 ============ ============ Liabilities and Shareholders' equity Current liabilities: Accounts payable $ 880,753 $ 1,218,741 Loan payable, bank 1,272,149 500,000 Other accrued expenses 1,279,907 876,320 ------------ ------------ Total current liabilities 3,432,809 2,595,061 Commitments -- -- Shareholders' equity: Convertible preferred stock, issuable in series no par value, shares authorized, 1,433,333 and -0- shares issued and outstanding at September 30, 1997 and December 31, 1996, respectively at September 30, 1997 and December 31, 1996, respectively 2,150,000 -- Common stock, no par value, 40,000,000 shares authorized, 10,289,488 and 10,156,905 shares issued and outstanding at September 30, 1997 and December 31, 1996, respectively 17,667,023 17,374,734 Accumulated deficit (15,519,172) (12,045,129) ------------ ------------ Total shareholders' equity 4,297,851 5,329,605 ------------ ------------ $ 7,730,660 $ 7,924,666 ============ ============
EROX CORPORATION Condensed Statements of Operations (unaudited)
Three months ended September 30, Nine months ended September 30, 1997 1996 1997 1996 ------------ ------------ ------------ ------------ Net sales $ 3,847,893 $ 4,472,682 $ 12,761,724 $ 13,665,684 Cost of goods sold 1,095,898 1,227,048 2,985,541 3,738,410 ------------ ------------ ------------ ------------ Gross profit 2,751,995 3,245,634 9,776,183 9,927,274 Expenses: Research and development 86,844 140,364 251,700 301,670 Selling, general and administrative 2,356,938 2,875,166 12,941,739 9,247,882 ------------ ------------ ------------ ------------ Total expenses 2,443,782 3,015,530 13,193,439 9,549,552 ------------ ------------ ------------ ------------ Income (loss) from operations 308,213 230,104 (3,417,256) 377,722 Interest income 15 11,266 12,486 24,094 Interest expense 23,514 522 60,342 2,981 Other income (expense), net (34) 14,193 2,358 15,820 ------------ ------------ ------------ ------------ Income (loss) before taxes 284,680 255,041 (3,462,754) 414,655 Income taxes 10,489 20,733 11,289 20,733 ------------ ------------ ------------ ------------ Net income (loss) $ 274,191 $ 234,308 $ (3,474,043) $ 393,922 ============ ============ ============ ============ Net income (loss) per share $ 0.03 $ 0.02 $ (0.34) $ 0.04 ============ ============ ============ ============ Shares used in calculation of net income (loss) per share 10,304,125 10,624,096 10,265,274 10,459,904 ============ ============ ============ ============
EROX CORPORATION Condensed Statements of Operations (unaudited)
Nine months ended September 30, 1997 1996 ----------- ----------- Cash Flows from Operating Activities Net income (loss) $(3,474,043) $ 393,922 Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 48,040 82,296 Changes in operating assets and liabilities: Accounts receivable (436,007) (782,717) Inventory (1,281,066) (1,604,590) Other current assets (92,260) 40,189 Accounts payable and accrued liabilities 65,599 744,912 ----------- ----------- Net cash used in operating activities (5,169,737) (1,125,988) Cash Flows from Investing Activities Purchase of property and equipment (91,928) (79,220) ----------- ----------- Net cash used in investing activities (91,928) (79,220) Cash Flows from Financing Activities Proceeds from issuance of preferred stock 2,150,000 -- Proceeds from issuance of common stock 292,289 500,816 Proceeds from (payments on) bank borrowings 772,149 (500,000) ----------- ----------- Net cash provided by financing activities 3,214,438 816 Net decrease in cash and cash equivalents (2,047,227) (1,204,392) Cash and cash equivalents at beginning of the period 2,059,084 2,186,828 ----------- ----------- Cash and cash equivalents at end of the period $ 11,857 $ 982,436 =========== ===========
EROX Corporation Notes to Condensed Financial Statements (Unaudited) September 30, 1997 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months and nine months ended September 30, 1997 are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 1997. For further information, refer to the financial statements and footnotes thereto included in the Company's annual report on Form 10-KSB for the year ended December 31, 1996. Inventory Inventories are stated at the lower of cost (first in - first out method) or market. The inventory at September 30, 1997 consists of finished goods inventory valued at $1,840,296 work in process of $322,835 and raw materials of $2,024,452. At December 31, 1996, these balances were $1,188,882, $154,347 and $1,563,288, respectively. Line of Credit On July 1, 1997, the Company renegotiated its Business Loan Agreement with Mid Peninsula Bank of Palo Alto, California. The Company may borrow up to $3.0 million at an interest rate equal to the bank's prime rate plus .75% with borrowings secured primarily by the Company's trade receivables and inventory. The agreement, which expires on April 1, 1998, contains certain debt-to-equity and working capital covenants. Convertible Preferred Stock On August 25, 1997, the Company obtained additional equity capital from affiliates of a current shareholder by issuing 1,433,333 shares of convertible preferred stock. This investment provided the Company with $2,150,000 in equity capital that was used to reduce bank borrowings and finance accounts receivable. Net Income (Loss) Per Share Net income per share is computed using the weighted average number of shares of common stock outstanding and common equivalent shares from stock options. The latter are excluded from the computation of net loss per share as their effect is antidilutive. Accounting Pronouncements In February, 1997, the Financial Accounting Standards Board issued Statement No. 128, Earnings Per Share, which is required to be adopted by the Company on December 31, 1997. At that time, the Company will be required to change the method currently used to compute earnings per share and restate all prior periods. Under the new requirements for calculating primary earnings per share, the dilutive effect of stock options will be excluded. There is expected to be no impact on primary or fully diluted earnings per share for either the three or nine month periods ended September 30, 1996 or September 30, 1997. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Subsequent Event On October 8, 1997, a request for dismissal of the Levy v. Erox Corporation packaging lawsuit was filed by the plaintiff in Contra Costa County Superior Court. The dismissal was entered as requested, and the Company knows of no other pending legal action. Item 2. Management's Discussion and Analysis This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Except for the historical information contained in this discussion and analysis of financial condition and results of operations, the matters discussed herein are forward looking statements. These forward looking statements include but are not limited to the Company's plans for sales growth and expansion into new channels of trade, expectations of gross margin, expenses, new product introduction, and the Company's liquidity and capital needs. These matters involve risks and uncertainties which include but are not limited to the acceptance of new products, the credit risk associated with consolidation in the retail trade, the costs of components and advertising associated with product retail roll-out and new product introductions, supply constraints or difficulties, the impact of competitive pricing or government regulation and the risk of diverted goods in a slow retail environment. These and other factors may cause actual results to differ materially from those anticipated in forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Risk Factors The Company's future results may be affected to a greater or lesser degree by the following factors among others: Competition: The prestige fragrance market is volatile and extremely competitive. Consumer preferences and demands can shift dramatically reflecting changes in fashion and current fads. There are numerous fragrance products which are better known than the products marketed by the Company. There are also many companies which have substantially greater resources than EROX and which have the ability to invest heavily in new product development and introduction. The Company can expect that its competitors will attempt to compete with the Company through the introduction of new products and promotion of existing products. In addition, the product life cycle of fragrances is shortening. Traditional fragrance companies now introduce a new fragrance every one to two years compared to every four to five years as in the past. This increase in competing fragrances makes it difficult for any one fragrance to hold the consumer's attention on a long-term basis. Although the Company believes the inclusion of human pheromones as a component clearly differentiates its products, other fragrances are competing for space with the Company's products at both the store level and in print and media advertising. Marketing: The failure to establish and maintain the necessary sales or distribution channels could have a material adverse effect on the Company's business. Although the Company believes its marketing strategy is the most cost effective way to introduce its products, there can be no assurance that broader-scale retail launches will be successful. The Company cannot guarantee that retail outlets or catalogues will continue to carry the EROX products. If the current strategy is unsuccessful, marketing of the Company's products would require a new strategy and may require a significantly more expensive sales effort for which the Company may not have sufficient funds. Retail environment: Continued consolidation in the retail trade has led to the emergence of four major retail players who control the major share of the market. Federated Department Stores, The May Company, Dayton Hudson/Marshall Fields and Dillard Department Stores now comprise the majority of U.S. better priced department stores. This consolidation could lead to price and promotional pressure and increased credit risk for the Company. The major U.S. retailers are also moving away from the traditional service oriented environment toward one that is based on "value pricing" and self service. This change in emphasis away from trained sales personnel and retailer support of manufacturer's products has created an environment that values "newness" and price above quality and value. In light of these changes in the retail environment, the Company may find it necessary to seek alternate channels of distribution to sell their products. Seasonality: Sales in the fragrance industry are generally seasonal, with generally higher sales in the second half of the calendar year as a result of increased demand for fragrance products in anticipation of and during the Christmas holiday season. The anticipated seasonality of the Company's sales could cause a significant variation in its quarterly operating results. Patent protection: There can be no assurance that any patent or patent application owned or controlled by the Company will continue to provide commercially significant protection of the Company's technology or ensure that the Company may not be determined to infringe valid patents of others. No assurance can be given that others will not independently develop substantially equivalent proprietary information or otherwise gain access to the Company's trade secrets or that the Company can meaningfully protect its technology, proprietary information or trade secrets. Attraction and retention of key employees: The success of the Company's future operations depends in large part on the Company's ability to recruit and retain key employees and consultants with research, product development and marketing experience, as well as other professionals who are in considerable demand. There can be no assurance that the Company will be successful in retaining or recruiting such key personnel. Dependence on third parties for manufacturing: The Company does not have facilities to manufacture its products and relies on Pherin to manufacture its pheromones and third parties to supply components and to blend, fill and package its fragrance products. The Company believes that such manufacturing services are the most effective method of producing its products. Contract fillers are used by the majority of the fragrance industry, and the Company has no current plans to set up its own filling facilities. However, as with any business that is not vertically integrated, if the Company is unable to obtain or retain fragrance suppliers, component manufacturers or third party manufacturing on acceptable terms, it may not be able to obtain commercial quantities of its products, which would adversely affect results. Results of Operations Three Months ended September 30, 1997 as compared to the Three Months ended September 30, 1996 Net sales for the third quarter of 1997 were $3,847,893 compared to $4,472,682 for the third quarter of 1996. This decrease was due to the overall softening of the US Department Store fragrance market in general. Also contributing to this decrease in net sales was the high percentage of return authorizations the Company issued to Department Store customers in line with the Company's policy to rationalize inventories prior to the holiday season. These return authorizations are a means of removing certain slow moving ancillary items from the Department Store shelves in exchange for new orders of the Company's better selling fragrance items. The Company saw expansion in the Perfumeries and Distributor class of trade as shipments were made to open new retail outlets. The Company opened one new department store chain, Herbergers, in the third quarter of 1997. compared to four chains,: Castner Knott, Carson Pirie Scott, T. Eaton Company, and Kaufmann's during the third quarter of 1996. These openings boosted sales by the initial sell-in orders required to stock the store's shelves for the launch of Realm Men(R) and Realm Women(R). During the third quarter of 1997, the Company did not open any new distributors or new duty free markets. This compares to the third quarter of 1996 when the Company opened Middle Eastern and North American Duty Free distribution. The comparison of sales for these periods is as follows: - -------------------------------------------------------------------------------- Class of Trade 1997 1996 - -------------------------------------------------------------------------------- North American Department Store $2,935,151 $3,811,993 Perfumeries/Distributors 626,045 0 Duty Free and International 281,021 643,917 Direct Marketing 5,676 16,772 ---------- ---------- Net Sales $3,847,893 $4,472,682 Gross margin showed a slight decrease to 71.5% in the quarter ended September 30 1997 from 72.6% in the same quarter in the prior year. This decrease is attributable to increased sales to non-department store classes of trade and to the high percentage of return authorizations recorded for department stores in the third quarter of 1997. Future quarters may have a different gross margin depending on the demand for promotional products and the percentage of higher margin department store sales in comparison to sales through third party distributors. Research and Development expenses for the third quarters of 1997 and 1996 were $86,844 and $140,364, respectively. During 1997, these costs were principally payments and costs under the Company's contract with Pherin Corporation compared to 1996 when the Company was incurring costs associated with the development of its second women's fragrance: inner REALM(TM). Selling and marketing expenses decreased to $1,834,346 (48% of sales) in the three months ended September 30, 1997 from $2,461,254 (55% of sales) in the period ended September 30, 1996. This decrease was the result of stringent spending controls instituted at the end of the second quarter. The Company has been reassessing advertising and promotional activities undertaken to support sales in retail department store chains with the goal of reducing these expenditures as a percentage of net department store sales. Sales force headcount was reduced in the third quarter as territories were realigned and selling responsibilities restructured. The Company instituted stricter, more comprehensive controls on cooperative advertising spending and fragrance selling specialist expenses. These controls enabled the Company to hold spending to budgeted levels in the third quarter of 1997. In the third quarter of 1996, the Company increased headcount and advertising spending to serve new department store retail customers. Distribution and general and administrative expenses for the period increased to $522,592 in 1997 from $413,912 in 1996, as a result of operational expenses being reclassified as period expenses and not capitalized into inventory and additional warehousing charges from fillers and fulfillment providers. Net interest income/(expense) was $(23,499) in the third quarter of 1997 compared to $10,744 for the same period in 1996. The Company's tax expense for the third quarter of 1997 was $10,489. This is the result of minimum income taxes for the States in which the Company has a tax presence. Tax expense of $20,733 in the third quarter of 1996 was based upon projected profits for the year 1996 after taking into account utilization of net operating loss carry forwards. Nine Months ended September 30, 1997 as compared to the Nine Months ended September 30, 1996 Net sales for the nine months ended September 30, 1997 were $12,761,724 compared to $13,665,684 for the same period in 1996. This was due to decreases in US Department Store and International sales partially offset by sales to Perfumeries and Distributors. In 1996, the Company launched its products in the California market with the opening of 91 doors of Macy's West. Additionally in 1996, the Company entered into distribution agreements for the Middle East, Latin American and Caribbean duty free markets. The following table shows a comparison of the nine month's net sales by class of trade: - -------------------------------------------------------------------------------- Class of Trade 1997 1996 - -------------------------------------------------------------------------------- North American Department Store/Retail $10,574,651 $12,431,974 Perfumeries/Distributors 1,229,063 0 Duty Free 646,110 493,871 International 297,382 673,169 Direct Marketing 14,518 66,670 ----------- ----------- Net Sales $12,761,724 $13,665,684 Gross margin increased to 77% from 73% for the first nine months of 1997 compared to the same period in 1996. This increase was the result of reductions in the Company's cost of goods structure and the reclassification of certain operational costs as general and administrative, period expenses. Also in 1997, the Company introduced its second fragrance offering for women: inner REALM(TM). This line of products carries a higher gross margin than the Company's first fragrances. In 1996, the Company was still working through high cost inventories that had been purchased from higher cost suppliers or were manufactured using less efficient or higher cost methods. Research and development expenses decreased 17% to $251,700 in the nine months ended September 30, 1997. These costs were principally comprised of payments under the Company's contract with Pherin Corporation. In the prior year period, the Company began development of a new line of women's products for launch in 1997 and incurred costs of $301,670. Selling and marketing expenses for the nine months ending September 30, 1997 were $11,124,927 compared to $8,119,743 for the same period in 1996. The expense restatement of $984,279 for the second quarter of 1997 is included in these numbers. These expenses were the result of unanticipated second quarter co-op advertising charges that were charged back to the Company during the third quarter. Advertising expenses for the Department Store class of trade remain high, and the Company has begun to sell its products to distributors and into Duty Free markets. These sales channels, while resulting in lower gross margins, provide more profit potential as the advertising and promotional expenses necessary for retail sell through are borne by the distributor. On going expenses in the sales and marketing area are employee staffing, commissions, radio advertising and fragrance modeling to support local in-store promotions and to support the REALM brand in general. The Company's general and administrative expenses increased to $1,816,812 in 1997 from $1,128,139 in 1996. This increase is attributable to the reclassification of overhead expenses necessary to support the sales of products to general and administrative period expenses. These expenses had been capitalized into inventory in the prior year. The Company also incurred additional legal expenses related to the registration of its products and trademarks in foreign countries and to its defense against the now dismissed lawsuit brought against the Company in 1996. Interest income was $12,486 and $24,094 for the first three quarters of 1997 and 1996, respectively. The decrease in interest income was due to lower cash balances. In 1997, the Company paid $60,342 in interest expense related to advances under its bank line of credit. During 1996, the Company's interest expense was $2,981. The Company's tax expense in 1997 relates to minimum income taxes payable to States in which the Company has a tax presence. The Company's effective tax rate for the first nine months of 1996 was 5% based upon projected profits for the entire year and after taking into account utilization of net operating loss carry forwards. LIQUIDITY At September 30, 1997, the Company had working capital of $4,182,447. Net cash used in operating activities was $5,169,737 for the nine months ended September 30, 1997. During 1997, the Company received $292,289 in cash from the exercise of stock options issued under the Company's Employee Stock Option Plan. Also in 1997, the Company obtained $2,150,000 in additional working capital from affiliates of a current shareholder by issuing 1,433,333 shares of convertible preferred stock. The money was used to reduce bank borrowings and finance accounts receivable. On July 1, 1997, the Company renegotiated its Business Loan Agreement with Mid-Peninsula Bank of Palo Alto, California. The Company may borrow up to $3,000,000 at an interest rate equal to the bank's prime rate plus .75% with borrowings primarily secured by the Company's trade receivables and inventory. The agreement, which has a one year term, contains certain debt to equity and working capital covenants. Under the terms of the renegotiated bank line, the Company may borrow against both eligible accounts receivable and eligible inventory. There were borrowings totaling $1,272,149 at September 30, 1997. Assuming the Company's activities proceed substantially as planned and if there are no new brand introductions, the Company's current cash, line of credit and anticipated revenues from product sales should be adequate to meet its working capital needs over the next twelve months. Working capital requirements will primarily be for the supply of inventory, staffing, product promotion and training and accounts receivable financing. If the Company fails to achieve significant revenues from its 1997 marketing efforts or if ongoing business proves to be more capital intensive than planned or if the Company elects to develop and launch a new brand, additional funding may be required. There can be no assurance that such funding will be available. PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K (a) Exhibit 11-Statement re: Computation of Per Share Earnings E- 12 Exhibit 27.01-Financial Data Schedule E- 13 (b) The Company did not file any reports on Form 8-K during the three months ended September 30, 1997.
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant had duly caused this Report to be signed on behalf by the undersigned thereunto duly authorized. EROX CORPORATION Registrant Date: November 10, 1997 /s/ William P. Horgan --------------------- William P. Horgan Chairman of the Board and Chief Executive Officer Date: November 10, 1997 /s/ Maxine C. Harmatta ---------------------- Maxine C. Harmatta CFO, Vice President Finance and Administration EX-11 2 COMPUTATION OF PER SHARE EARNINGS (LOSS) Exhibit 11 Statement Re: Computation of Per share Earnings (Loss)
Three months ended September 30, Nine months ended September 30, 1997 1996 1997 1996 ----------- ----------- ----------- ----------- Primary Average shares outstanding 10,289,488 10,007,454 10,265,274 9,947,653 Net effect of dilutive stock options-based on the treasury stock method using average market price 14,637 616,642 -- 512,251 ----------- ----------- ----------- ----------- Total 10,304,125 10,624,096 10,265,274 10,459,904 Net income (loss) $ 274,191 $ 234,308 $(3,474,043) $ 393,922 =========== =========== =========== =========== Per share amount $ 0.03 $ 0.02 $ (0.34) $ 0.04 =========== =========== =========== =========== Fully Diluted Average common shares outstanding 10,289,488 10,007,454 10,265,274 9,947,653 Average convertible preferred shares outstanding 560,869 -- -- -- Net effect of dilutive stock options-based on the treasury stock method using the period-end market price if higher than average market price 14,637 616,642 -- 553,377 ----------- ----------- ----------- ----------- Total 10,864,994 10,624,096 10,265,274 10,501,030 Net income (loss) $ 274,191 $ 234,308 $(3,474,043) $ 393,922 =========== =========== =========== =========== Per share amount $ 0.03 $ 0.02 $ (0.34) $ 0.04 =========== =========== =========== ===========
EX-27 3 FINANCIAL DATA SCHEDULE
5 The Schedule Contains Summary Financial Information Extracted From Balance Sheets and Statements of Income 0000878616 Erox Corporation 1 9-MOS DEC-31-1997 JAN-01-1997 SEP-30-1997 11,857 0 3,802,995 (553,853) 4,187,583 7,615,256 790,466 (675,062) 7,730,660 3,432,809 0 0 2,150,000 17,667,023 (15,519,172) 7,730,660 12,761,724 12,761,724 2,985,541 2,985,541 251,700 0 47,856 (3,462,754) 11,289 (3,474,043) 0 0 0 (3,474,043) (0.34) (0.34)
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