<ARTICLE> 5 <PERIOD-TYPE> YEAR YEAR <FISCAL-YEAR-END> JUL-31-1998 JUL-31-1997 <PERIOD-END> JUL-31-1998 JUL-31-1997 <CASH> 1,108,581 503,217 <SECURITIES> 0 0 <RECEIVABLES> 50,477 115,571 <ALLOWANCES> (6,000) (6,000) <INVENTORY> 3,210,268 3,173,792 <CURRENT-ASSETS> 4,399,673 3,944,478 <PP&E> 2,404,810 2,325,993 <DEPRECIATION> (1,994,822) (1,938,188) <TOTAL-ASSETS> 4,819,464 4,339,752 <CURRENT-LIABILITIES> 207,132 1,488,357 <BONDS> 0 0 <PREFERRED-MANDATORY> 77,500 77,500 <PREFERRED> 597 597 <COMMON> 3,724,773 2,803,473 <OTHER-SE> 809,462 (30,175) <TOTAL-LIABILITY-AND-EQUITY> 4,819,464 4,339,752 <SALES> 746,420 1,123,390 <TOTAL-REVENUES> 746,420 1,123,390 <CGS> 529,958 917,379 <TOTAL-COSTS> 940,717 945,80 <OTHER-EXPENSES> 1,548,446 2,054,630 <LOSS-PROVISION> 0 0 <INTEREST-EXPENSE> 22,447 82,932 <INCOME-PRETAX> (1,765,190) (1,959,652) <INCOME-TAX> 200 10,084 <INCOME-CONTINUING> (1,765,390) (1,969,736) <DISCONTINUED> 0 0 <EXTRAORDINARY> 0 (1,841,000) <CHANGES> 0 0 <NET-INCOME> (1,765,390) (3,810,736) <EPS-PRIMARY> (.54) (2.41) <EPS-DILUTED> (.54) (2.41)