<ARTICLE> 5 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> SEP-30-1998 <CASH> 443,000 <SECURITIES> 0 <RECEIVABLES> 707,000 <ALLOWANCES> 0 <INVENTORY> 2,206,000 <CURRENT-ASSETS> 4,128,000 <PP&E> 6,059,000<F1> <DEPRECIATION> 0 <TOTAL-ASSETS> 10,714,000 <CURRENT-LIABILITIES> 5,019,000 <BONDS> 2,402,000 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 64,343,000 <OTHER-SE> 149,000<F2> <TOTAL-LIABILITY-AND-EQUITY> 10,714,000 <SALES> 6,869,000 <TOTAL-REVENUES> 6,869,000 <CGS> 0 <TOTAL-COSTS> 7,702,000 <OTHER-EXPENSES> 6,000<F3> <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 448,000<F4> <INCOME-PRETAX> (1,287,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (1,287,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (1,287,000) <EPS-PRIMARY> (0.11) <EPS-DILUTED> (0.11) <FN> <F1>This value is net of depreciation. <F2>Value represents redeemable common stock warrants. <F3>Amount includes $100,000 of interest income. <F4>Amount is included in "Other-Expenses." </FN>