-----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, LCfbEe7NTICn7wS9i1xiejuN5PAmpMR+R+R6yjiAWEGipkLdUWngnLtzEYAmQeFU R14uuEj46VZj6tOPxneLpw== 0000912057-96-025541.txt : 19961113 0000912057-96-025541.hdr.sgml : 19961113 ACCESSION NUMBER: 0000912057-96-025541 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960928 FILED AS OF DATE: 19961112 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MICROFIELD GRAPHICS INC /OR CENTRAL INDEX KEY: 0000944947 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER PERIPHERAL EQUIPMENT, NEC [3577] IRS NUMBER: 930935149 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-26226 FILM NUMBER: 96658511 BUSINESS ADDRESS: STREET 1: 9825 SW SUNSHINE COURT CITY: BEAVERTON STATE: OR ZIP: 97005 BUSINESS PHONE: 5036269393 MAIL ADDRESS: STREET 2: 9825 SW SUNSHINE CT CITY: BEAVERTON STATE: OR ZIP: 97005 10QSB 1 10QSB UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 1O-QSB [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 28, 1996 [ ] 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: 0-26226 MICROFIELD GRAPHICS, INC. (Exact name of small business issuer as specified in its charter) OREGON 93-0935149 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 7216 SW DURHAM RD. PORTLAND, OREGON 97224 (Address of principal executive offices and zip code) (503) 620-4000 (Issuer's telephone number including area code) Check whether the issuer (1) 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 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 [ ] The number of shares outstanding of the Registrant's Common Stock as of October 24, 1996 was 3,193,930 shares. Transitional Small Business Disclosure Format (check one): Yes [ ] No [X] MICROFIELD GRAPHICS, INC. FORM 10-QSB INDEX PART I FINANCIAL INFORMATION PAGE ---- Item 1. Financial Statements Consolidated Balance Sheets - September 28, 1996 and December 30, 1995 3 Consolidated Statements of Operations -Quarter and Nine Months Ended September 28, 1996 and September 30, 1995 4 Consolidated Statements of Cash Flows -Nine Months Ended September 28, 1996 and September 30, 1995 5 Notes to Consolidated Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K 10 2 MICROFIELD GRAPHICS, INC. CONSOLIDATED BALANCE SHEETS
September 28, December 30, 1996 1995 ------------- ------------- Current assets: Cash and cash equivalents $ 2,603,735 $ 3,180,872 Short-term investments in marketable securities - 1,564,002 Accounts receivable, net of allowances of $44,313 and $41,963 1,019,898 965,590 Inventories 632,854 551,619 Prepaid expenses and other 307,729 304,784 -------------- ------------- Total current assets 4,564,216 6,566,867 Property and equipment, net 558,682 318,097 Other assets 89,421 81,300 -------------- ------------- $ 5,212,319 $ 6,966,264 -------------- ------------- -------------- ------------- Current liabilities: Current portion of capital lease obligation $ 89,103 $ 136,671 Accounts payable 402,297 543,607 Accrued liabilities 480,324 360,737 -------------- ------------- Total current liabilities 971,724 1,041,015 Capital lease obligations, less current portion - 51,483 -------------- ------------- 971,724 1,092,498 Shareholders' equity: Common stock, no par value, 25,000,000 shares authorized, 3,192,345 and 3,127,954 shares issued and outstanding 12,138,984 12,060,048 Accumulated deficit (7,898,389) (6,186,282) -------------- ------------- Total shareholders' equity 4,240,595 5,873,766 -------------- ------------- $ 5,212,319 $ 6,966,264 -------------- ------------- -------------- -------------
The accompanying notes are an integral part of these financial statements. 3 MICROFIELD GRAPHICS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended Nine months ended September 28, September 30, September 28, September 30, 1996 1995 1996 1995 ------------- ------------- ------------- ------------- Sales $ 1,662,607 $ 1,361,707 $ 4,788,503 $ 3,878,795 Cost of goods sold 828,474 756,816 2,367,160 2,239,635 ------------- -------------- -------------- -------------- Gross profit 834,133 604,891 2,421,343 1,639,160 Operating expenses Research and development 302,675 282,726 1,048,477 824,985 Marketing and sales 793,957 551,593 2,473,787 1,607,383 General and administrative 222,954 185,890 745,231 517,500 ------------- -------------- -------------- -------------- 1,319,586 1,020,209 4,267,495 2,949,868 ------------- -------------- -------------- -------------- Loss from operations (485,453) (415,318) (1,846,152) (1,310,708) Other income (expense) Interest income (expense) 29,625 68,535 115,098 (9,083) Other income (expense) 12,983 2,439 20,223 3,360 ------------- -------------- -------------- -------------- Loss from continuing operations before income taxes (442,845) (344,344) (1,710,831) (1,316,431) Provision for income taxes 476 10 1,276 3,210 ------------- -------------- -------------- -------------- Loss from continuing operations (443,321) (344,354) (1,712,107) (1,319,641) Income from discontinued operations - - - 74,780 Gain on disposal of discontinued operations - - - 472,750 ------------- -------------- -------------- -------------- - - - 547,530 ------------- -------------- -------------- -------------- Net loss $ (443,321) $ (344,354) $(1,712,107) $ (772,111) ------------- -------------- -------------- -------------- ------------- -------------- -------------- -------------- Loss per share: Loss from continuing operations $ (0.14) $ (0.11) $ (0.54) $ (0.60) Income from discontinued operations - - - 0.25 ------------- -------------- -------------- -------------- Net loss per share $ (0.14) $ (0.11) $ (0.54) $ (0.35) ------------- -------------- -------------- -------------- ------------- -------------- -------------- -------------- Shares used in per share calculations 3,191,589 3,087,366 3,170,770 2,208,663 ------------- -------------- -------------- -------------- ------------- -------------- -------------- --------------
The accompanying notes are an integral part of these financial statements. 4 MICROFIELD GRAPHICS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine months ended ------------------------------- September 28, September 30, 1996 1995 ------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (1,712,107) $ (772,111) Income from discontinued operations - (74,780) Gain on disposal of discontinued operations - (472,750) --------------- ------------- Loss from continuing operations (1,712,107) (1,319,641) Adjustments to reconcile loss from continuing operations to operating cash flows: Depreciation and amortization 219,090 105,661 Gain on sale and leaseback of property and equipment (6,504) (5,688) Changes in assets and liabilties: Accounts receivable (54,308) (315,609) Inventories (81,235) (191,773) Prepaid expenses and other (2,945) (134,706) Accounts payable (141,310) 56,909 Accrued liabilties 126,091 (128,561) --------------- ------------- Net cash used in operating activities (1,653,228) (1,933,408) Cash flows from investing activities: Proceeds from sale of discontinued operations - 1,800,000 Sales of marketable securities 1,564,002 - Acquisition of property and equipment (451,575) (113,810) Purchases of other assets (16,221) (17,738) Advances from discontinued operations - 160,425 Proceeds from sale and leaseback of equipment - 250,000 --------------- ------------- Net cash provided by investing activities 1,096,206 2,078,877 Cash flows from financing activities: Payments on line of credit agreement - (1,665,000) Payments on capital lease obligations (99,051) (32,938) Proceeds from issuance of common stock - 6,275,416 Proceeds from exercise of common stock options and warrants 78,936 500,581 --------------- ------------- Net cash (used in) provided by financing activities (20,115) 5,078,059 Net (decrease) increase in cash and cash equivalents (577,137) 5,223,528 Cash and cash equivalents, beginning of period 3,180,872 79,272 --------------- ------------- Cash and cash equivalents, end of period $ 2,603,735 $ 5,302,800 --------------- ------------- --------------- ------------- Supplemental disclosure of cash flow information: Cash paid for: Interest $ 31,547 $ 99,111 Income taxes 1,276 3,210
The accompanying notes are an integral part of these financial statements. 5 MICROFIELD GRAPHICS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements of Microfield Graphics, Inc. (the "Company") for the quarters and the nine months ended September 28, 1996 and September 30, 1995 have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission. The financial information as of December 30, 1995 is derived from the Company's Annual Report on Form 10-KSB. The accompanying consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles and should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 30, 1995. In the opinion of Company management, the unaudited consolidated financial statements for the interim periods presented include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for such interim periods. Operating results for the quarter and the nine months ended September 28, 1996 are not necessarily indicative of the results that may be expected for the full year or any portion thereof. The Company's fiscal year is the 52- or 53-week period ending on the Saturday closest to the last day of December. The Company's last fiscal year was 52 weeks ended December 30, 1995. The Company's third fiscal quarters in fiscal 1996 and 1995 were the 13-week periods ended September 28, 1996, and September 30, 1995, respectively. 2. INVENTORIES Inventories are stated at the lower of standard cost (which approximates the first-in, first-out method), or market value, and consist of the following: September 28, December 30, 1996 1995 ------------- ------------ Raw materials $ 540,516 $ 440,592 Work in process 350 9,130 Finished goods 91,988 101,897 ------------- ------------ $ 632,854 $ 551,619 ------------- ------------ 3. PROPERTY AND EQUIPMENT Property and equipment consist of the following: September 28, December 30, 1996 1995 ------------- ------------- Machinery and equipment $ 661,803 $ 220,865 Capitalized leased assets 238,618 238,618 ------------- ------------- 900,421 459,483 Less accumulated depreciation and amortization 341,739 141,386 ------------- ------------- $ 558,682 $ 318,097 ------------- ------------- 6 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW Microfield Graphics, Inc. (the "Company"), develops, manufactures and markets computer conferencing and telecommunications products to facilitate group communications. The Company's initial products are a series of digital whiteboards and digital whiteboard rear projection systems marketed under the brand name SoftBoard. Information written or drawn on the SoftBoard surface is recorded and displayed on a personal computer simultaneously and in color using the Company's proprietary technology. The information is recorded in a computer file that can be replayed, printed, faxed, e-mailed or saved for future applications. Optional proprietary software allows the information to be communicated in real time to remote computers. In June 1994 the Company entered into an exclusive OEM agreement with Steelcase Inc. ("Steelcase") for sale of SoftBoard products into the office furniture market through its subsidiary, Metropolitan Furniture Corporation ("Metro"). The initial phase of the agreement concluded at the end of June 1995. In May 1995, the agreement was verbally extended through December 1995, at the same monthly shipment rate that had been in effect over the previous nine month period ended March, 1995. In July 1995, Metro informed the Company that it was experiencing non-SoftBoard related material shortages that were causing shipping delays of its product that incorporates SoftBoard. Metro has not purchased a material amount of product since the third quarter of 1995. In the third quarter of 1996 and 1995, approximately 0% and 20%, respectively, of the Company's sales were attributable to sales to Steelcase and Metro. For the nine months ended September 28, 1996 and September 30, 1995, approximately 0% and 20% of the Company's sales were attributable to Steelcase and Metro. The Company is unable to predict when, if ever, Steelcase or Metro will resume purchases of a substantial quantity of SoftBoard products from the Company. In November 1994, the Company entered into an exclusive distributorship arrangement with Sord Computer Corporation ("SORD"), a subsidiary of Toshiba Corporation, to market SoftBoards in Japan. In the third quarter of 1996 and 1995, approximately 12% and 16%, respectively, of the Company's sales were attributable to SORD. For the nine months ended September 28, 1996 and September 30, 1995 approximately 18% and 19%, respectively, of the Company's sales were attributable to SORD. Although SORD is experiencing significant sales growth of SoftBoard products, they are expected to purchase fewer units over the next several months in order to balance inventories. The Company has no commitment from SORD to purchase product past the fourth quarter of 1996, and no assurance SORD will purchase significant quantities of SoftBoard products in the future. As with any large OEM or distributor relationship, order rates may be subject to quarterly fluctuations as demand builds and inventories are adjusted. The absence of sales to Steelcase and Metro in the first nine months of 1996 has had an adverse effect on the company's business. In addition, the failure of SORD to continue its purchase of SoftBoard products at rates comparable to its historic levels could have a material adverse effect on the Company's financial condition and results of operations. Prior to the introduction of SoftBoard, the Company designed, developed, manufactured and marketed advanced graphics hardware and software. Imagraph Corporation, acquired by the Company in January 1991, developed, manufactured and marketed advanced graphics controllers and frame grabbers. On March 31, 1995, the Company sold all of the stock of Imagraph Corporation, a wholly-owned subsidiary of the Company (the "Discontinued Operations"), for $2.0 million, including securities of the acquiring company valued at approximately $200,000. The Company recognized a gain on the sale of Imagraph Corporation of approximately $473,000 in fiscal 1995. In December 1995, the securities of the acquiring company were sold, resulting in a gain of approximately $74,000. The Company's consolidated financial statements reflect the results of operations of the Discontinued Operations in a single line item, which encompasses revenue from the Discontinued Operations offset by related expenses associated solely with those operations. Following the sale of the Discontinued Operations, the Company's business consists principally of the development, manufacture and marketing of computer conferencing and telecommunications products. 7 The Company's SoftBoard products are expected to provide the substantial majority of its sales in the foreseeable future. The Company's results will therefore depend on continued and increased market acceptance of these products and the Company's ability to modify them to meet the needs of its customers. Any reduction in demand for, or increasing competition with respect to, these products would have a material adverse effect on the Company's financial condition and results of operations. Except as otherwise noted, the financial and related information presented below under "Results of Operations" relates solely to the SoftBoard business. RESULTS OF OPERATIONS The following table sets forth, as a percentage of sales, certain consolidated statement of operations data relating to the SoftBoard Business for the periods indicated.
Quarter Ended Nine Months Ended --------------------------- --------------------------- September 28, September 30, September 28, September 30, 1996 1995 1996 1995 ---- ---- ---- ---- Sales . . . . . . . . . . . . . . . . . 100% 100% 100% 100% Cost of goods sold. . . . . . . . . . . 50 56 49 58 ---- ---- ---- ---- Gross profit . . . . . . . . . . . . 50 44 51 42 Research & development expenses . . . . 18 20 22 21 Marketing & sales expenses. . . . . . . 48 40 52 42 General & administrative expenses . . . 13 14 16 13 ---- ---- ---- ---- Loss from operations . . . . . . . . (29) (30) (39) (34) Other income. . . . . . . . . . . . . . 2 5 3 -- ---- ---- ---- ---- Loss from continuing operations before income taxes. . . . . . . . (27) (25) (36) (34) Provision for income taxes. . . . . . . -- -- -- -- ---- ---- ---- ---- Loss from continuing operations. . . (27) (25) (36) (34) Discontinued operations:. . . . . . . . Income from discontinued . . . . . . operations . . . . . . . . . . . . -- -- -- 2 Gain on disposal of . . . . . . . . discontinued operations. . . . . . -- -- -- 12 ---- ---- ---- ---- Net loss. . . . . . . . . . . . . . . . (27)% (25)% (36)% (20)% ---- ---- ---- ----
THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 28, 1996 COMPARED WITH THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 1995 SALES. Sales increased $301,000 (22%) to $1,663,000 in the third quarter of 1996 from $1,362,000 in the third quarter of 1995. Sales increased $910,000 (23%) to $4,789,000 in the first nine months of 1996 from $3,879,000 in the first nine months of 1995. The increases resulted primarily from overall increased demand for the Company's SoftBoard products and accessories. SEE OVERVIEW GROSS PROFIT. Cost of goods sold includes the cost of raw materials needed to assemble the products, assembly and preparation by vendors and direct and indirect costs associated with the procurement, testing, scheduling and quality assurance functions performed by the Company. The Company's gross margin improved to 50% in the third quarter of 1996 from 44% in the third quarter of 1995. The Company's gross margin improved to 51% in the first nine months of 1996 from 42% in the first nine months of 1995. The improvements in gross margins were due primarily to increased sales through the end user channel which provided higher overall average sales prices on those products. The increase was also affected by increased software and accessory sales, more effective capacity utilization due to higher volume, and to decreases in materials costs gained from the Company's ongoing product cost reduction program. 8 RESEARCH AND DEVELOPMENT EXPENSES. Research and development costs are expensed as incurred. These expenses increased $20,000 (7%) to $303,000 in the third quarter of 1996 from $283,000 in the third quarter of 1995. These expenses increased $223,000 (27%) to $1,048,000 in the first nine months of 1996 from $825,000 in the first nine months of 1995. The increases were due primarily to an accelerated rate of expenditure related to the development of the System 400 SoftBoard rear projection unit introduced in June 1996. Additionally, the lower rate of spending in 1995 was caused by a shortage of working capital during the first six months of that period. The Company also reduced salaried employees' pay from between 20 to 50% for a period of time in the first quarter of 1995. Research and development expenses increased as a percentage of sales to 22% in the first nine months of 1996 from 21% in the first nine months of 1995. The development of the System 400 was substantially complete as of the end of June 1996. MARKETING AND SALES EXPENSES. Marketing and sales expenses increased $242,000 (44%) to $794,000 in the third quarter of 1996 from $552,000 in the third quarter of 1995. These expenses increased $867,000 (54%) to $2,474,000 in the first nine months of 1996 from $1,607,000 in the first nine months of 1995. The increases were due primarily to additional marketing and sales expenses incurred to increase product awareness and to increase the penetration of products into the marketplace. These included increases in advertising, marketing and participation in additional trade shows. This increase was also a result of the Company's expense reduction plan carried out in the first quarter 1995 due to the shortage of working capital. Marketing and sales expenses increased as a percentage of sales to 52% in the first nine months of 1996 from 42% in the first nine months of 1995. GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative expenses increased $37,000 (20%) to $223,000 in the third quarter of 1996 from $186,000 in the third quarter of 1995. These expenses increased $227,000 (44%) to $745,000 in the first nine months of 1996 from $518,000 in the first nine months of 1995. The increase was due primarily to the higher insurance and administrative costs associated with status as a public company. The increase in the first nine months of 1996 was also a result of the Company's expense reduction plan carried out in the first quarter 1995 to help ease the shortage of working capital. General and administrative expenses increased as a percentage of sales to 16% in the first nine months of 1996 from 13% in the first nine months of 1995. OTHER INCOME (EXPENSE). Other income (expense) includes interest income, interest expense, and miscellaneous income. Other income, net was $43,000 in the third quarter of 1996 compared to $71,000, net in the third quarter of 1995. Other income, net was $135,000 in the first nine months of 1996 compared to $6,000 of other expense, net in the first nine months of 1995. The decrease between quarters was due primarily to lower interest earned on a smaller invested cash balance in 1996 compared to the interest earned in the third quarter 1995 on the cash balances available immediately following the Company's June 1995 initial public offering. The difference between the nine month periods ending September 1996 and 1995 was due to interest income earned on available cash balances in the first nine months of 1996, compared to the interest expense on the borrowings under the Company's line of credit during six of the first nine months of 1995. INCOME TAXES. As of September 28, 1996 the Company had available net operating loss carryforwards of approximately $6.8 million for federal income tax purposes. Such carryforwards may be used to reduce consolidated taxable income, if any, in future years through their expiration in 2003 to 2010. Utilization of net operating loss carryforwards may be limited due to the ownership changes resulting from the Company's initial public offering in 1995 and other stock transactions. In addition, the Company has research and development credits aggregating approximately $189,000 for income tax purposes at September 28, 1996. Such credits may be used to reduce taxes payable, if any, on a consolidated basis in future years through their expiration in 2000 to 2009. 9 LIQUIDITY AND CAPITAL RESOURCES On June 28, 1995 the Company sold 1,100,000 shares of Common Stock to the public in conjunction with its initial public offering at $6.00 per share. An additional 165,000 shares were sold at $6.00 per share on July 6, 1995 pursuant to an overallotment option exercised by the underwriters of the initial public offering. In total, the Company received net proceeds from the offering of approximately $6.6 million. At September 28, 1996, the Company had working capital of approximately $3.6 million and its principal sources of liquidity consisted of $2.6 million in cash and cash equivalents, and $2.25 million under two lines of credit, of which there were no amounts outstanding at September 28, 1996. Accounts receivable and inventories increased in the first nine months of 1996 due to increased sales. Fixed assets increased in the first nine months of 1996 due primarily to the Company's move to its new headquarters in July 1996. Accounts payable decreased in the first nine months of 1996 due to the timing of inventory purchases. During the third quarter of 1996, the Company obtained a $2.0 million operating line of credit with interest at prime (8.25% at September 28, 1996), which is secured by the Company's assets. This line of credit expires at the end of September 1997. At September 28, 1996 the Company had no material commitments for capital expenditures. The Company believes its existing cash and cash equivalents, amounts available under its credit facilities and cash from operations will be sufficient to fund its operations for the next 12 months. PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) The exhibit filed as part of this report is listed below: EXHIBIT NO. 11 Statement regarding computation of per share loss 27 Financial data schedule (b) Reports on Form 8-K No reports on Form 8-K were filed during the quarter ended September 28, 1996. 10 SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the issuer caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Dated: November 7, 1996 MICROFIELD GRAPHICS, INC. By:/s/JOHN B. CONROY ------------------ John B. Conroy President and Chief Executive Officer (Principal Executive Officer) By:/s/ RANDALL R. REED ------------------- Randall R. Reed Chief Financial Officer and Secretary (Principal Financial and Accounting Officer) 11 EX-11 2 EXHIBIT 11 EXHIBIT 11 MICROFIELD GRAPHICS, INC. CALCULATION OF NET LOSS PER SHARE
THREE MONTHS ENDED NINE MONTHS ENDED --------------------------------- --------------------------------- SEPTEMBER 28, SEPTEMBER 30, SEPTEMBER 28, SEPTEMBER 30, 1996 1995 1996 1995 -------------- ------------- ------------- ------------- Actual weighted average shares outstanding for the period 3,191,589 3,087,366 3,170,770 2,179,492 Dilutive common stock options and warrants using the treasury stock method -- -- -- 29,193 ----------- ----------- ----------- ----------- Total shares used in per share calculations 3,191,589 3,087,366 3,170,770 2,208,663 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Net loss $ (443,221) $ (344,354) $ (1,712,107) $ (772,111) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Net loss per share $ (0.14) $ (0.11) $ (0.54) $ (0.35) ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
EX-27 3 EXHIBIT 27
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED FINANCIAL STATEMENTS FOUND IN THE COMPANY'S FORM 10-QSB FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 28, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-28-1996 DEC-31-1995 SEP-28-1996 2,604 0 1,064 44 633 4,564 900 342 5,212 972 0 0 0 12,139 (7,898) 5,212 4,789 4,789 2,367 2,367 4,267 0 0 (1,712) 0 (1,712) 0 0 0 (1,712) (.54) (.54)
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