-----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, M1R/aQe5uuq+h6YOht+5zRrhgyWRbF5mIRpoXOUZujZkJXXf51yvclDAmoFoL802 tm6hdzIvF/VrCNlOAXYMVg== 0000950129-00-000622.txt : 20000215 0000950129-00-000622.hdr.sgml : 20000215 ACCESSION NUMBER: 0000950129-00-000622 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991231 FILED AS OF DATE: 20000214 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SHARPS COMPLIANCE CORP CENTRAL INDEX KEY: 0000898770 STANDARD INDUSTRIAL CLASSIFICATION: ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842] IRS NUMBER: 742657168 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-22390 FILM NUMBER: 542979 BUSINESS ADDRESS: STREET 1: 9050 KIRBY DRIVE STREET 2: STE 350 CITY: HOUSTON STATE: TX ZIP: 77054 BUSINESS PHONE: 713-432-0300 MAIL ADDRESS: STREET 1: 7600 BURNET RD STREET 2: STE 350 CITY: AUSTIN STATE: TX ZIP: 78757 FORMER COMPANY: FORMER CONFORMED NAME: US MEDICAL SYSTEMS INC DATE OF NAME CHANGE: 19970128 FORMER COMPANY: FORMER CONFORMED NAME: MEDICAL POLYMERS TECHNOLOGIES INC DATE OF NAME CHANGE: 19930916 10QSB 1 SHARPS COMPLIANCE CORP. - DATED 12/31/1999 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------- FORM 10-QSB [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 1999 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from to . --------------- ----------------- Commission File Number: 0-22390 ------------------- SHARPS COMPLIANCE CORP. (Name of Small Business Issuer in its Charter) DELAWARE 74-2657168 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 9050 KIRBY DRIVE, HOUSTON, TEXAS 77054 (Address of principal executive offices) (Zip Code) (713) 432-0300 Registrant's telephone number Securities Registered under 12(g) of the Exchange Act: Title of Each Class ------------------- Common Stock, $0.01 Par Value Check whether the registrant (1) has 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 [ ] Number of shares outstanding of the issuer's Capital Stock as of February 11, 2000: 7,626,444 Transitional Small Business Disclosure Format (check one): Yes [ ] No [X] 2 SHARPS COMPLIANCE CORP. INDEX
PAGE PART I FINANCIAL INFORMATION Item 1. Financial Statements Condensed Consolidated Balance Sheets - December 31, 1999 (Unaudited) and June 30, 1999...............................................................................3 Condensed Consolidated Statements of Operations (Unaudited) - For the three months ended December 31, 1999 and 1998............................................4 Condensed Consolidated Statements of Operations (Unaudited) - For the six months ended December 31, 1999 and 1998............................................5 Condensed Consolidated Statements of Cash Flows (Unaudited) - For the six months ended December 31, 1999 and 1998............................................6 Notes to Condensed Consolidated Financial Statements (Unaudited).......................7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations..............................................................8 PART II. OTHER INFORMATION............................................................11 Item 4. Submission of Matters to a Vote of Security Holders...................................11 Item 6. Exhibits and Reports on Form 8-K......................................................11 SIGNATURE......................................................................................11
3 PART I FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS SHARPS COMPLIANCE CORP. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS DECEMBER 31, JUNE 30, 1999 1999 --------------- --------------- (UNAUDITED) CURRENT ASSETS: Cash and cash equivalents $ 416,000 $ 15,000 Short-term investments -- 1,300,000 Accounts receivable, net 817,000 474,000 Inventory 341,000 132,000 Prepaids and other 46,000 83,000 --------------- --------------- 1,620,000 2,004,000 PROPERTY AND EQUIPMENT, net 182,000 189,000 INTANGIBLE ASSETS, net 71,000 81,000 NOTE RECEIVABLE FROM STOCKHOLDER 320,000 320,000 --------------- --------------- Total assets $ 2,193,000 $ 2,594,000 =============== =============== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 139,000 $ 162,000 Accrued liabilities 186,000 148,000 Accrued disposal costs 1,371,000 1,073,000 Current maturities of long-term debt 8,000 23,000 --------------- --------------- Total current liabilities 1,704,000 1,406,000 LONG-TERM DEBT, net of current maturities 12,000 15,000 --------------- --------------- Total liabilities 1,716,000 1,421,000 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Common stock, $.01 par value per share; 20,000,000 shares 7,626,444 shares issued and outstanding 76,000 76,000 Preferred stock, $.01 par value per share; 1,000,000 shares 0 shares issued and outstanding -- -- Additional paid-in capital 4,371,000 4,371,000 Deferred compensation (6,000) (11,000) Accumulated deficit (3,964,000) (3,263,000) --------------- --------------- Total stockholders' equity 477,000 1,173,000 --------------- --------------- Total liabilities and stockholders' equity $ 2,193,000 $ 2,594,000 =============== ===============
The accompanying notes are an integral part of these consolidated financial statements. 3 4 SHARPS COMPLIANCE CORP. AND SUBSIDIARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31, 1999 1998 ----------- ----------- REVENUES: Sales, net $ 989,000 $ 509,000 Consulting services 40,000 -- ----------- ----------- Total revenues 1,029,000 509,000 COSTS AND EXPENSES: Cost of revenues 576,000 331,000 Selling, general and administrative 821,000 617,000 Depreciation and amortization 24,000 15,000 ----------- ----------- Operating loss (392,000) (454,000) INTEREST INCOME 13,000 39,000 ----------- ----------- Net loss $ (379,000) $ (415,000) =========== =========== BASIC AND DILUTED NET LOSS PER SHARE $ (.05) $ (.05) =========== =========== WEIGHTED AVERAGE SHARES USED IN COMPUTING DILUTED NET LOSS PER SHARE 7,626,444 7,619,379 =========== ===========
The accompanying notes are an integral part of these consolidated financial statements. 4 5 SHARPS COMPLIANCE CORP. AND SUBSIDIARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1999 1998 ------------ ------------ REVENUES: Sales, net $ 1,964,000 $ 1,088,000 Consulting services 71,000 -- ------------ ------------ Total revenues 2,035,000 1,088,000 COSTS AND EXPENSES: Cost of revenues 1,171,000 685,000 Selling, general and administrative 1,544,000 1,328,000 Depreciation and amortization 48,000 25,000 ------------ ------------ Operating loss (728,000) (950,000) INTEREST INCOME 27,000 84,000 ------------ ------------ Net loss $ (701,000) $ (866,000) ============ ============ BASIC AND DILUTED NET LOSS PER SHARE $ (.09) $ (.11) ============ ============ WEIGHTED AVERAGE SHARES USED IN COMPUTING DILUTED NET LOSS PER SHARE 7,626,444 7,604,868 ============ ============
The accompanying notes are an integral part of these consolidated financial statements. 5 6 SHARPS COMPLIANCE CORP. AND SUBSIDIARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1999 1998 ------------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (701,000) $ (866,000) Adjustments to reconcile net loss to net cash used in operating activities- Depreciation and amortization 43,000 25,000 Amortization of deferred compensation 5,000 -- Changes in operating assets and liabilities- Increase in accounts receivable (343,000) (126,000) (Increase) decrease in inventory (209,000) 15,000 Decrease in other current assets 37,000 14,000 Increase (decrease) in accounts payable and liabilities 15,000 (154,000) Increase in accrued disposal costs 298,000 254,000 ------------- ------------- Net cash used in operating activities (855,000) (838,000) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (26,000) (75,000) Sales of short-term investments 1,300,000 600,000 ------------- ------------- Net cash provided by investing activities 1,274,000 525,000 CASH FLOWS FROM FINANCING ACTIVITIES: Payments on long-term debt (18,000) (18,000) ------------- ------------- Net cash used in financing activities (18,000) (18,000) ------------- ------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 401,000 (331,000) CASH AND CASH EQUIVALENTS, beginning of period 15,000 444,000 ------------- ------------- CASH AND CASH EQUIVALENTS, end of period $ 416,000 $ 113,000 ============= ============= SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES: Issuance of common stock to satisfy accrued liabilities $ -- $ 85,000 ============= =============
The accompanying notes are an integral part of these consolidated financial statements. 6 7 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1999 1. ORGANIZATION AND BACKGROUND: ORGANIZATION The accompanying consolidated financial statements include the accounts of Sharps Compliance Corp. ("SCC") (formerly U.S. Medical Systems, Inc.) and its wholly owned subsidiary, Sharps Compliance of Texas, Inc., d.b.a. Sharps Compliance, Inc. d.b.a. Inscite ("SCI") (collectively, the "Company" or "Sharps"). All significant intercompany accounts and transactions have been eliminated in consolidation. BUSINESS Sharps provides products for disposal of certain medical sharps products (i.e., needles, razors and syringes) as well as other systems to provide the home healthcare industry with cost effective alternatives to traditional methods of transporting medical equipment from home healthcare patients. Sharps' products are designed primarily to facilitate small waste generators' compliance with local, state and federal regulations for the disposal of medical waste. Sharps also provides consulting services to other entities related to medical sharps products. Waste generators that use the Sharps Disposal By Mail System (the "Mail Disposal System") are responsible for mailing the systems to a third party for incineration. Sharps is responsible for paying the postage and burn costs associated with the Mail Disposal Systems that are mailed directly to the third-party incinerators by the customer. Sharps records accrued disposal costs for estimated future postage and burn costs based on Mail Disposal Systems sold that management estimates will eventually be returned for incineration. The estimated returns are based on historical experience. The accrued disposal costs are adjusted prospectively for revisions in the estimated costs. Depending upon the experience of Sharps, such revisions could be significant. Prior to August 1, 1999, Sharps contracted through a third party who held an exclusive contract to incinerate medical waste at a facility in the City of Carthage, Texas (the "facility"). Sharps was notified by the City of Carthage in August 1999 that, effective July 31, 1999, the third party's exclusivity for medical waste incineration at the facility had been terminated. Sharps continues to utilize the facility and is currently negotiating directly with the City of Carthage to allow Sharps to continue to incinerate its medical waste products at the facility. Sharps signed a contract with an additional disposal facility on February 9, 2000. This contract provides Sharps with an additional disposal facility to utilize as operational needs dictate. Sharps has sole-sourced the majority of its manufacturing, assembly and transportation functions and its disposal function. Sharps may be affected by its dependence on the suppliers of these functions. The risk is mitigated by the long-standing business relationships with and reputation of Sharps' suppliers. Although there are no assurances with regard to future business associations after expirations of certain agreements between Sharps and its suppliers, management believes that alternative sources would be available at similar costs and terms. Sharps has received limited revenues to date, has incurred cumulative losses since its inception and has a working capital deficit at December 31, 1999. The future success of Sharps is dependent upon many factors, including environmental regulation, continuity of its license and disposal agreements, successful completion of its product development activities, the identification and penetration of markets for its products and services, and obtaining funds necessary to complete these activities. Management cannot accurately predict when Sharps will be required to fund the disposal costs, but management believes it will not have to pay all of the accrued disposal costs within one year of December 31, 1999; however, the Company does not have enough information to classify any amounts as long-term. Based on the Company's operating results through December 31, 1999, the Company is not achieving its fiscal year 2000 projected sales or cash flows from operations. If this trend were to continue, the Company may require additional financing in calendar 2000 to meet its operating cash flow needs and to enable it to continue as a going concern. 7 8 2. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and, accordingly, do not include all information and footnotes required under generally accepted accounting principles for complete financial statements. In the opinion of management, these interim condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the financial position of the Company as of December 31, 1999, and the results of its operations for the three months and six months ended December 31, 1999 and its cash flows for the six months ended December 31, 1999 and 1998. The results of operations for the six months ended December 31, 1999 are not necessarily indicative of the results to be expected for the entire fiscal year ending June 30, 2000. These condensed consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-KSB for the year ended June 30, 1999. 3. NOTE RECEIVABLE FROM STOCKHOLDER: In November 1997, Sharps entered into a $400,000 personal, full recourse note receivable with a stockholder and officer of Sharps. In November 1999, the terms of the note for the remaining balance due of $320,000 were amended. The amended note bears interest at 8 percent with interest due annually beginning in November 2000 and principal and accrued but unpaid interest due in November 2002 In January 2000, the stockholder paid approximately $26,000 of accrued interest. At December 31, 1999, approximately $29,000 in accrued interest was owed under the note. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This quarterly report on Form 10-QSB contains certain forward-looking statements and information relating to SCC and its subsidiary that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. When used in this report, the words "anticipate," "believe," "estimate" and "intend" and words or phrases of similar import, as they relate to the Company or its subsidiaries or Company management, are intended to identify forward-looking statements. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors, governmental regulation and supervision, seasonality, distribution networks, product introductions and acceptance, technological change, changes in industry practices, onetime events and other factors described herein. Based upon changing conditions, should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended. The Company does not intend to update these forward-looking statements. GENERAL The Company's revenues increased $23,000 or 2% for the quarter ended December 31, 1999 over the quarter ended September 30, 1999. The increase in revenues is attributed to the increased acceptance of the Company's Sharps Disposal by Mail and Trip LesSystem(TM). This increase was partially offset by a significant decrease in sales to one large distributor. The Company believes that the ultimate use of its product by end users increased from the quarter September 30, 1999 to the quarter ended December 31, 1999; however, this was not reflected in the Company's revenues as this distributor used previously purchased inventory to fill a larger portion of its orders than during the previous quarter. The Company expects that its results of operations will continue to fluctuate between periods based upon the timing and level of sales to distributors. Selling, general and administrative expenses increased $98,000, or 13%, from the quarter ended December 31, 1999 over the quarter ended September 30, 1999. The increase is due to staffing increases as well as a $40,000 executive bonus earned during 8 9 the quarter ended December 31, 1999. The bonus was paid in January 2000. The Company's net loss widened 18% from $322,000 for the quarter ended September 30, 1999, to $379,000 in the quarter ended December 31, 1999. RESULTS OF OPERATIONS The discussion below analyzes changes in the consolidated operating results and financial condition of the Company during the three and six months ended December 31, 1999 and 1998. The following table sets forth, for the periods indicated, certain items from the Company's Condensed Consolidated Financial Statements of Operations, expressed as a percentage of revenue:
THREE MONTHS SIX MONTHS ENDED ENDED DECEMBER 31, DECEMBER 31, 1999 1998 1999 1998 ---------- ---------- ---------- ---------- Net sales 100% 100% 100% 100% Costs and expenses: Cost of revenues (56)% (650% (58)% (63)% Selling, general and administrative (80)% (121)% (76)% (122)% Depreciation and amortization (2)% (3)% (2)% (2)% ---------- ---------- ---------- ---------- Total operating expenses (138)% (189)% (136)% (187)% ---------- ---------- ---------- ---------- Loss from operations (38)% (89)% (36)% (87)% Total other income (expense) 1% (8)% 1% (7)% ---------- ---------- ---------- ---------- Net loss (37)% (81)% (35)% (80)% ========== ========== ========== ==========
QUARTER ENDED DECEMBER 31, 1999 COMPARED TO QUARTER ENDED DECEMBER 31, 1998 Revenues increased $520,000, or 102%, from $509,000 for the quarter ended December 31, 1998 to $1,029,000 for the quarter ended December 31, 1999. The increase in revenues is the result of continued market penetration and acceptance of Sharps' logistical solutions for the home healthcare industry. The Sharps Disposal by Mail System ("Mail Disposal System") is being accepted as a more cost-effective means of disposing of contaminated sharps. The home healthcare industry is also increasing its acceptance of Sharps Trip LesSystem(TM) and the Sharps Pitch-It series of disposable IV poles as they focus on reducing costs associated with trips to the patient's home to retrieve used sharps containers, infusion pumps and IV poles. Consulting revenue increased from $-0- for the quarter ended December 31, 1998 to $40,000 for the quarter ended December 31, 1999. The increase is due to the formation of INSCITE, Sharps' consulting division, on March 1, 1999 and its activities since inception. The increase in cost of revenues of $245,000, or 74%, is due to the increase in the Company's sales volume. Cost of revenues decreased as a percentage of sales primarily due to increased coverage of fixed costs through increased sales volume. Cost of revenues also decreased as a percentage of sales due to a downward revision of management's estimate of the rate of return for mail disposal units expected to be returned for incineration. Selling, general and administrative expenses increased $204,000, or 33%, from $617,000 to $821,000. The increase is due to additional support and sales staffing, the expenses related to the consulting division and travel expenses associated with Sharps' sales personnel. The increase was also due to a $40,000 executive bonus earned during the quarter ended December 31, 1999. 9 10 SIX MONTHS ENDED DECEMBER 31, 1999 COMPARED TO SIX MONTHS ENDED DECEMBER 31, 1998 Revenues increased $947,000, or 87%, from $1,088,000 for the six months ended December 31, 1998 to $2,035,000 for the six months ended December 31, 1999. The sales increase can be attributed to increased marketing efforts, which include additional personnel and advertising. These continuing efforts have created a wider acceptance of the Mail Disposal System and the Trip LesSystem(TM) as cost effective logistical solutions for Sharps' primary customer, home healthcare facilities. Consulting revenue increased from $-0- for the six months ended December 31, 1998 to $71,000 for the six months ended December 31, 1999. The increase is due to the formation of INSCITE, Sharps' consulting division, on March 1, 1999 and its activities since inception. The increase in cost of revenues of $486,000, or 71%, is due to the increase in the Company's sales volume. Cost of revenues decreased as a percentage of sales primarily due to increased coverage of fixed costs through increased sales volume. Cost of revenues also decreased as a percentage of sales due to adjustments made to the estimated rate of return for mail disposal units expected to be returned for incineration. Selling, general and administrative expenses increased $216,000, or 16%, from $1,328,000 to $1,544,000. The increase is due to additional support and sales staffing, the expenses related to the consulting division and travel expenses associated with Sharps' sales personnel. The increase was also due to a $40,000 executive bonus earned during the quarter ended December 31, 1999. These increases were offset by the elimination of the expenses attributable to Sharps' former subsidiary, U.S. Medical, Inc., of $122,000. This included the net book value of the assets and liabilities of U.S. Medical, Inc. (approximately $92,000) which were transferred to SCC's former chief executive officer and president as noted in the Company's 10-KSB for the year ended June 30, 1999. LIQUIDITY AND CAPITAL RESOURCES As of December 31, 1999, Sharps had approximately $416,000 in cash. The working capital deficit at December 31, 1999 was $84,000. Inventory increased $209,000 during the six months ended December 31, 1999 due to the timing of material purchases during the period. Capital expenditures during the six months ended December 31, 1999 were approximately $26,000 and consisted mainly of computer equipment. Although Sharps realized a decline in its net loss for the six months ended December 31, 1999, negative operating cash flows increased, primarily due to individually significant receivables which had not been collected as of December 31, 1999. At December 31, 1999, total long-term debt outstanding was approximately $12,000. Sharps expects to continue to incur substantial costs related to sales, marketing and administrative activities. The amount and timing of anticipated expenditures will depend upon numerous factors both within and outside Sharps' control, including the nature and timing of marketing and sale activities. Moreover, Sharps' ability to generate income from operations will be dependent upon, among other things, sufficient penetration of the home healthcare, industrial and other markets. Based on the Company's operating results through December 31, 1999, the Company is not achieving its fiscal year 2000 projected sales or cash flows from operations. If this trend were to continue, the Company may require additional financing in calendar 2000 to meet its operating cash flow needs and to enable it to continue as a going concern. There can be no assurance that such financing would be available on acceptable terms. 10 11 PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K a) Exhibits The following exhibit is filed as part of this report. Exhibit No. Description ----------- ----------- 27.1 Financial Data Schedule (filed herewith) b) Reports on Form 8-K None. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS At the Annual Meeting of Stockholders held on November 16, 1999, the following matters were adopted by the margins indicated: 1. To elect directors Lee Cooke, Parris H. Holmes, Dr. Burt Kunik and Philip C. Zerrillo to serve until the 2000 Annual Meeting of Stockholders. For: 5,943,071 Against: -- Abstain: 372 2. To ratify the appointment of Arthur Andersen LLP as independent public accountants of the Company for the fiscal year ending June 30, 2000. For: 5,943,068 Against: -- Abstain: 218 ITEMS 1, 2, 3, AND 5 ARE NOT APPLICABLE AND HAVE BEEN OMITTED. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereto duly authorized. REGISTRANT: SHARPS COMPLIANCE CORP. Dated: February 14, 2000 By: /s/ Kent D. Manby ----------------------------------- Kent D. Manby, Vice President and Chief Financial Officer 11 12 EXHIBIT INDEX EXHIBIT NUMBER DESCRIPTION -------- ----------- 27.1 Financial Data Schedule (filed herewith)
EX-27.1 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AS OF DECEMBER 31, 1999, AND THE STATEMENT OF OPERATIONS FOR THE PERIOD THEN ENDED AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS JUN-30-2000 OCT-01-1999 DEC-31-1999 416,000 0 795,000 27,000 341,000 1,620,000 279,000 97,000 2,193,000 1,704,000 12,000 0 0 76,000 401,000 2,193,000 989,000 1,029,000 556,000 576,000 845,000 3,000 0 0 0 380,000 0 0 0 380,000 0.05 0.05
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