-----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, ByhlxuOE3w8OQ1MHXRI9oZsZE7fYoX93v4cPIO//iTI4Ubn3nIZNfUP8TzMq0g9F +gGnTyOPAAVPlC4sodvk8g== 0000922811-96-000003.txt : 19960814 0000922811-96-000003.hdr.sgml : 19960814 ACCESSION NUMBER: 0000922811-96-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960813 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRACK DATA CORP CENTRAL INDEX KEY: 0000922811 STANDARD INDUSTRIAL CLASSIFICATION: SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES [6200] IRS NUMBER: 223181095 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-24634 FILM NUMBER: 96609638 BUSINESS ADDRESS: STREET 1: 56 PINE STREET CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 2125220222 MAIL ADDRESS: STREET 1: 56 PINE STREET CITY: NEW YORK STATE: NY ZIP: 10005 FORMER COMPANY: FORMER CONFORMED NAME: GLOBAL MARKET INFORMATION INC DATE OF NAME CHANGE: 19940506 10-Q 1 1 U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended JUNE 30, 1996 Commission File Number 0-24634 TRACK DATA CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 22-3181095 (State or other jurisdiction (I.R.S. Employer of incorporation) Identification No.) 56 PINE STREET NEW YORK, NY 10005 (Address of principal executive offices) (212) 422-4300 (Registrant's telephone number) GLOBAL MARKET INFORMATION, INC. (Former Name) Indicate by check mark whether the 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 past 12 months (or 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 --- --- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: As of July 31, 1996 there were 14,875,272 shares of common stock outstanding. 2 PART I. FINANCIAL INFORMATION Item 1. Financial Statements See pages 2-8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations See pages 9-11 PART ll. OTHER INFORMATION See page 12 1 3 TRACK DATA CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
JUNE 30, DECEMBER 31, 1996 1995 ----------- ----------- ASSETS CASH AND EQUIVALENTS $ 120,947 $ 2,004,827 ACCOUNTS RECEIVABLE - net 1,725,294 2,122,605 FIXED ASSETS - net 9,561,655 9,092,324 INVESTMENT IN AFFILIATE 2,818,989 2,705,155 MARKETABLE EQUITY SECURITIES (Note 1) - 324,979 DUE FROM RELATED PARTIES (Note 3) 722,959 2,609,078 EXCESS OF COST OVER NET ASSETS ACQUIRED 3,736,990 3,892,951 NET DEFERRED INCOME TAX ASSETS (Note 4) 1,535,748 1,037,419 OTHER ASSETS 2,468,383 2,461,026 ----------- ----------- TOTAL $22,690,965 $26,250,364 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Accounts payable and accrued expenses $ 4,797,518 $ 4,574,138 Note payable - bank 2,467,648 4,444,451 Notes payable - other 1,834,013 2,003,555 Capital lease obligations 4,434,723 4,528,312 Deferred compensation payable (Note 1) -- 3,877,571 Other liabilities 878,818 915,123 ----------- ----------- 14,412,720 20,343,150 ----------- ----------- STOCKHOLDERS' EQUITY (Notes 1, 3 and 5) Common stock - $.01 par value; 30,000,000 shares authorized;issued and outstanding - 14,875,272 shares in 1996 and 13,976,967 shares in 1995 148,753 139,770 Additional paid-in capital 14,049,972 9,958,640 Unrealized gain on available-for-sale securities (Note 4) - 174,801 Foreign currency translation adjustment 54,737 59,517 Deficit (5,975,217) (4,425,514) ----------- ----------- Total stockholders' equity 8,278,245 5,907,214 ----------- ----------- TOTAL $22,690,965 $26,250,364 =========== =========== See notes to condensed consolidated financial statements 2
4 TRACK DATA CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1996 AND 1995 (unaudited)
1996 1995 ----------- ----------- REVENUES $23,394,909 $22,267,989 ----------- ----------- OPERATING COSTS AND EXPENSES: Direct operating costs 12,768,425 12,615,527 Selling and administrative expenses 10,095,139 10,800,108 Deferred compensation expense (Note 1) 294,894 (168,577) Interest expense - net 442,514 362,816 ----------- ----------- Total 23,600,972 23,609,874 ----------- ----------- LOSS FROM OPERATIONS (206,063) (1,341,885) ----------- ----------- OTHER INCOME: Gain on securities 288,418 223,744 Other income - 2,819 ----------- ----------- 288,418 226,563 ----------- ----------- INCOME (LOSS) BEFORE INCOME TAX BENEFIT AND EQUITY IN NET INCOME OF AFFILIATE 82,355 (1,115,322) INCOME TAX BENEFIT (Note 4) (364,058) (368,325) ----------- ----------- INCOME (LOSS) BEFORE EQUITY IN NET INCOME OF AFFILIATE 446,413 (746,997) EQUITY IN NET INCOME OF AFFILIATE 92,582 193,227 ----------- ----------- NET INCOME (LOSS) $ 538,995 $ (553,770) =========== =========== NET INCOME (LOSS) PER SHARE $.04 $(.04) ==== ===== WEIGHTED AVERAGE SHARES OUTSTANDING 14,426,000 13,977,000 =========== =========== See notes to condensed consolidated financial statements 3
5 TRACK DATA CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS THREE MONTHS ENDED JUNE 30, 1996 AND 1995 (unaudited)
1996 1995 ----------- ----------- REVENUES $11,626,615 $11,186,856 ----------- ----------- OPERATING COSTS AND EXPENSES: Direct operating costs 6,098,811 6,311,308 Selling and administrative expenses 5,203,719 5,079,712 Deferred compensation expense (Note 1) - (107,163) Interest expense - net 219,806 192,092 ----------- ----------- Total 11,522,336 11,475,949 ----------- ----------- INCOME (LOSS) FROM OPERATIONS 104,279 (289,093) ----------- ----------- OTHER INCOME: Gain on securities - 99,173 Other income - (2,236) ----------- ----------- - 96,937 ----------- ----------- INCOME (LOSS) BEFORE INCOME TAXES (BENEFIT) AND EQUITY IN NET INCOME OF AFFILIATE 104,279 (192,156) INCOME TAXES (BENEFIT) (Note 4) 47,000 (64,429) ----------- ----------- INCOME (LOSS) BEFORE EQUITY IN NET INCOME OF AFFILIATE 57,279 (127,727) EQUITY IN NET INCOME OF AFFILIATE 3,500 103,081 ----------- ----------- NET INCOME (LOSS) $ 60,779 $ (24,646) =========== =========== NET INCOME (LOSS) PER SHARE $ - $ - === === WEIGHTED AVERAGE SHARES OUTSTANDING 14,875,000 13,977,000 =========== =========== See notes to condensed consolidated financial statements 4
6 TRACK DATA CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY SIX MONTHS ENDED JUNE 30, 1996 (unaudited)
UNREALIZED GAIN ON FOREIGN ADDITIONAL AVAILABLE- CURRENCY COMMON PAID-IN FOR-SALE TRANSLATION STOCK CAPITAL SECURITIES ADJUSTMENT DEFICIT BALANCE, JANUARY 1, 1996 $139,770 $ 9,958,640 $ 174,801 $ 59,517 $(4,425,514) Foreign currency translation adjustment (4,780) Appreciation in investment in affiliate 21,252 Dividend paid to Track S corporation stockholder (2,088,698) Gain on transfer of Innodata shares to Trust (174,801) Issuance of common stock to Trust in satisfaction of Track Phantom Stock Plan obligation 8,359 3,836,703 Issuance of common stock in satisfaction of bonus obligation 624 233,377 Net income 538,995 -------- ----------- ---------- ---------- ----------- BALANCE, JUNE 30, 1996 $148,753 $14,049,972 $ - $ 54,737 $(5,975,217) ======== =========== ========== ========== =========== See notes to condensed consolidated financial statements 5
7 TRACK DATA CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 1996 AND 1995 (unaudited)
1996 1995 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 538,995 $ (553,770) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 1,680,787 2,289,227 Equity in net income of affiliate (92,582) (193,226) Deferred compensation 294,893 (168,576) Profit sharing and charitable contributions paid in stock of affiliates - 289,983 Gain on contributions of stock of affiliates - (130,071) (Gain) loss on sale and transfer of marketable securities (335,340) 105,108 Allowance for decline in market value of securities 46,922 5,876 Deferred income taxes (498,329) (382,334) Changes in operating assets and liabilities: Accounts receivable 397,311 81,705 Other assets 62,170 284,036 Accounts payable and accrued expenses 457,380 (102,884) Other liabilities (33,055) 92,565 ----------- ----------- Net cash provided by operating activities 2,519,152 1,617,639 ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of fixed assets (532,663) (1,302,007) Repayment of related party loans 639,673 1,950,642 Loans to related parties (900,509) (1,827,486) Loans to others (30,743) (60,000) Purchase of marketable securities (76,931) - Proceeds from sale of marketable securities - 26,436 Acquisition costs - (2,175,582) ----------- ----------- Net cash used in investing activities (901,173) (3,387,997) ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Payments under capital lease obligations (1,404,863) (1,120,245) Net payments on note payable - bank (1,976,803) (53,907) Net proceeds from notes payable - other 13,713 18,674 Net (payments) proceeds on loans from employee savings program (3,247) 59,671 Purchase of treasury stock - (23,566) Payments of acquisition notes (125,000) (125,000) ----------- ----------- Net cash used in financing activities (3,496,200) (1,244,373) ----------- ----------- EFFECT OF EXCHANGE RATE DIFFERENCES ON CASH (5,659) (4,857) ----------- ----------- NET DECREASE IN CASH (1,883,880) (3,019,588) CASH AND EQUIVALENTS, BEGINNING OF PERIOD 2,004,827 5,155,132 ----------- ----------- CASH AND EQUIVALENTS, END OF PERIOD $ 120,947 $ 2,135,544 =========== =========== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid for: Interest $ 491,051 $ 474,885 Income taxes 16,149 79,464 SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES: Equipment acquisitions financed by capital leases $ 1,311,274 $ 2,123,894 See notes to condensed consolidated financial statements 6
8 TRACK DATA CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SIX MONTHS ENDED JUNE 30, 1996 AND 1995 (unaudited) 1. On March 31, 1996, Track Data Corporation ("Track"), a principal stockholder of Global Market Information, Inc. ("Global"), merged into Global and the name of Global was changed to Track Data Corporation (the "Company"). Pursuant to the merger (the "Merger"), Global issued 12,000,000 shares of its common stock in exchange for all of the outstanding stock of Track. The 1,599,837 shares of Global common stock owned by Track prior to the Merger were cancelled. Global, as the surviving corporation, assumed all of Track's assets, liabilities and obligations. Effective March 31, 1996, the Company issued 835,905 shares of its common stock and transferred 74,281 shares of Innodata Corporation common stock to a Trust to be held by a bank trustee for the benefit of certain key employees and consultants of Track to satisfy obligations under a deferred compensation plan maintained by Track. Upon issuance of the shares to the Trust, the liability for the deferred compensation was satisfied. These shares will be released to the participants upon termination of employment, or earlier with approval of the Board of Directors. Track provided "real-time" financial market data, financial and historical databases and analytic services through a sophisticated private data network to the professional trading and investment community prior to the Merger. Track also provided database services to Global pursuant to a facilities management agreement that was to expire in 2001. For accounting purposes the Merger is treated as a combination of entities under common control similar to a pooling-of-interests. Accordingly, the financial statements for all current and prior periods include the results of operations of Global and Track. 2. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of June 30, 1996, and the results of operations for the three and six month periods ended June 30, 1996 and 1995 and of cash flows for the six months ended June 30, 1996 and 1995. The results of operations for the six months ended June 30, 1996 are not necessarily indicative of results that may be expected for any other interim period or for the full year. These financial statements should be read in conjunction with the financial statements and notes thereto for the year ended December 31, 1995 included in the Company's Current Report on Form 8-K/A dated as of March 26, 1996. The accounting policies used in preparing these financial statements are the same as those described in the December 31, 1995 Track financial statements. 7 9 3. On March 26, 1996, in accordance with the Merger Agreement, a dividend in the amount of $2,088,698 was paid to Track's sole stockholder, who is the Company's Chairman of the Board, representing the undistributed earnings of Track as an S corporation. The dividend was paid to the stockholder by assigning amounts due from him or entities controlled by him. 4. Effective upon the Merger, deferred taxes which were previously provided at state and local rates and which related to Track temporary differences were recalculated based on the changed status to a C corporation. This resulted in a recognition of additional deferred tax assets deemed realizable by management of approximately $500,000 in the three months ended March 31, 1996. 5. On April 23, 1996, the Company granted options to purchase 479,400 shares of the Company's common stock at $4.00 per share to employees ($3.75 market price at date of grant). On July 16, 1996, the Board of Directors changed the option exercise price to $2.00 per share ($1.63 market price at date of change). Further, the Company issued 62,400 shares of its common stock (60,000 shares to its president) to satisfy certain bonus payments for 1995. 8 10 TRACK DATA CORPORATION AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS GENERAL The Company provides real-time financial market data, fundamental research, charting and analytical services to both institutional and individual investors. The Company also redistributes news and third party data base information from more than 100 sources worldwide. The Company's lead products include MarkeTrack MX and MarkeTrack NT, Dial/Data, Track OnLine and InfoVest. Its AIQ Systems division provides expert systems software, including artificial intelligence products for market timing and stock selection. THREE MONTHS ENDED JUNE 30, 1996 AND 1995 For the three months ended June 30, 1996 the Company's revenues were $11,626,615, an increase of 4% over revenues for the similar period in 1995 of $11,186,856. The increase in revenues is primarily attributable to an increase in the subscriber base for the Company's Dial/Data division. Direct operating costs were $6,098,811 for the second quarter of 1996 and $6,311,308 for the similar period in 1995, a decrease of 3%. Direct operating costs as a percentage of revenues was 52% in 1996 and 56% in 1995. Direct operating costs include direct payroll, direct telecommunication costs, computer supplies, depreciation and equipment lease expense and the amortization of software development costs. Selling and administrative expenses were $5,203,719 and $5,079,712 in the 1996 and 1995 periods, respectively, an increase of 2% in the 1996 period from the 1995 period. Selling and administrative expenses as a percentage of revenues was 45% in each period. The Company incurred no deferred compensation expense in 1996, while recognizing a reduction in such expense of $107,163 in 1995. These changes relate to the Company's phantom stock plan which was discontinued as of March 31, 1996. The underlying 835,905 shares of the Company's common stock and 74,281 shares of Innodata Corporation common stock to which certain employees were vested have been placed in a trust for the benefit of the participants. Accordingly, future changes in the market price of the respective stocks will not be reflected as changes in deferred compensation expense. Interest expense increased to $219,806 in the 1996 period compared to $192,092 in 1995 due to increased borrowings. 9 11 There was no other income in the three months ended June 30, 1996 and $96,937 for the three months ended June 30, 1995. The income in 1995 resulted principally from gains from Innodata Corporation common stock given as charitable contributions in 1995. The gain represents the difference between the carrying value of such securities and the market price at date of disposition. As a result of the above mentioned factors, the Company realized net income of $60,779 in the 1996 period compared to a loss of $24,646 in 1995, which included equity in net income of an affiliate of $103,081. SIX MONTHS ENDED JUNE 30, 1996 AND 1995 For the six months ended June 30, 1996 the Company's revenues were $23,394,909, an increase of 5% over revenues for the similar period in 1995 of $22,267,989. The increase in revenues is primarily attributable to an increase in the subscriber base for the Company's Dial/Data division. Direct operating costs were $12,768,425 for the first six months of 1996 and $12,615,527 for the similar period in 1995, an increase of 1%. Direct operating costs as a percentage of revenues was 55% in 1996 and 57% in 1995. Selling and administrative expenses were $10,095,139 and $10,800,108 in the 1996 and 1995 periods, respectively, a decrease of 7% in the 1996 period from the 1995 period. Selling and administrative expenses as a percentage of revenues was 43% in 1996 and 49% in 1995. The dollar and percentage decrease primarily reflects a contribution expense of approximately $200,000 in the 1995 period and a reduction of approximately $500,000 in salary expense for the Company's Chairman in 1996 as compared to the 1995 period. The Company incurred deferred compensation expense of $294,894 in 1996, while recognizing a reduction in such expense of $168,577 in 1995. These changes relate to the Company's phantom stock plan which was discontinued as of March 31, 1996. The underlying 835,905 shares of the Company's common stock and 74,281 shares of Innodata Corporation common stock to which certain employees were vested have been placed in a trust for the benefit of the participants. Accordingly, future changes in the market price of the respective stocks will not be reflected as changes in deferred compensation expense. Interest expense increased to $442,514 in the 1996 period compared to $362,816 in 1995 due to increased borrowings. The loss from operations for the six months ended June 30, 1996 of $206,063 was due principally to the deferred compensation expense described above. The loss of $1,341,885 in the 1995 period was due principally to the higher selling and administrative expenses and lower revenues described above. Other income was $288,418 and $226,563 for the six months ended June 30, 1996 and 1995, respectively, principally from gains in each period from Innodata Corporation common stock placed in a trust to satisfy obligations to employees 10 12 in 1996 and for charitable contributions in 1995. In each period the gain represents the difference between the carrying value of such securities and the market price at date of disposition. The income tax benefit in the 1996 period of $364,058 is due to the recognition of the anticipated realizable amount of tax benefits from a change in tax status, effective upon the merger of Track at March 31, 1996, from an S corporation, for which the majority of taxes were paid by the former sole stockholder, to a C corporation. As a result of the above mentioned factors, the Company realized net income of $538,995 in the 1996 period compared to a loss of $553,770 in 1995. LIQUIDITY AND CAPITAL RESOURCES During the six months ended June 30, 1996 and 1995 cash provided by operating activities was $2,519,152 and $1,617,639, respectively. The increase was due principally to profitable operations in 1996. Cash flows used in investing activities was $901,173 and $3,387,997 for the six months ended June 30, 1996 and 1995, respectively. Purchases of fixed assets decreased by approximately $800,000 in 1996 compared to 1995. The 1995 amount also includes the acquisition of the All-Quotes business. Cash used in financing activities was $3,496,200 and $1,244,373 for the six months ended June 30, 1996 and 1995, respectively. The increase in 1996 is primarily due to a repayment of bank loans. The Company has a line of credit with a bank. The line is collateralized by the assets of the Company and is guaranteed by its principal stockholder. Interest is charged at 1.75% above the bank's prime rate and is due on demand. The Company may borrow up to 80% of eligible accounts receivable and is required to maintain a compensating balance of 10% of the outstanding loans. The Company did not meet this requirement from time to time prior to the Merger. The line of credit is sufficient for the Company's cash requirements. There are no major capital expenditures anticipated beyond the normal replacement of equipment and additional equipment to meet increased customer demand. Prior to the Merger, Track paid a dividend to its sole stockholder, Mr. Hertz, of approximately $2,100,000, equivalent to the previously taxed income to Mr. Hertz as the sole stockholder of Track, a subchapter S corporation. The dividend was paid by assigning to Mr. Hertz receivables from him or entities controlled by him. Further, Mr. Hertz has agreed to reduce compensation paid to him by the Company from approximately $1,500,000 in 1995 to $350,000 for each of 1996 and 1997. INFLATION AND SEASONALITY To date, inflation has not had a significant impact on the Company's operations. The Company's revenues are not affected by seasonality. 11 13 PART II. OTHER INFORMATION Item 1. Legal Proceedings. Not Applicable Item 2. Changes in Securities. Not Applicable Item 3. Defaults upon Senior Securities. Not Applicable Item 4. Submission of Matters to a Vote of Security Holders. Not Applicable. Item 5. Other Information. Not Applicable. Item 6. (a) Exhibits. None. (b) Reports on Form 8-K. None. 12 14 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. TRACK DATA CORPORATION Date: 8/12/96 /s/ ----------------------- Barry Hertz Chairman of the Board Chief Executive Officer Date: 8/12/96 /s/ ----------------------- Martin Kaye V.P. Finance, Principal Financial Officer 15 EXHIBIT INDEX Exhibit 27 - Financial Data Schedule EX-7 2 FINANCIAL DATA SCHEDULE [ARTICLE] 5 [CIK] 0000903651 [NAME] INNODATA CORPORATION [PERIOD-TYPE] 6-MOS [FISCAL-YEAR-END] DEC-31-1996 [PERIOD-START] JAN-01-1996 [PERIOD-END] JUN-30-1996 [CASH] 120,947 [SECURITIES] 0 [RECEIVABLES] 1,725,294 [ALLOWANCES] 0 [INVENTORY] 0 [CURRENT-ASSETS] 0 [PP&E] 9,561,655 [DEPRECIATION] 0 [TOTAL-ASSETS] 22,690,965 [CURRENT-LIABILITIES] 0 [BONDS] 0 [PREFERRED-MANDATORY] 0 [PREFERRED] 0 [COMMON] 148,753 [OTHER-SE] 0 [TOTAL-LIABILITY-AND-EQUITY] 22,690,965 [SALES] 0 [TOTAL-REVENUES] 23,394,909 [CGS] 12,768,425 [TOTAL-COSTS] 23,600,972 [OTHER-EXPENSES] 0 [LOSS-PROVISION] 0 [INTEREST-EXPENSE] 442,514 [INCOME-PRETAX] 82,355 [INCOME-TAX] (364,058) [INCOME-CONTINUING] 0 [DISCONTINUED] 0 [EXTRAORDINARY] 0 [CHANGES] 0 [NET-INCOME] 538,995 [EPS-PRIMARY] .04 [EPS-DILUTED] 0
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