<ARTICLE> 5 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <CASH> 535,000 <SECURITIES> 0 <RECEIVABLES> 564,000 <ALLOWANCES> 0 <INVENTORY> 2,024,000 <CURRENT-ASSETS> 3,369,000 <PP&E> 4,661,000<F1> <DEPRECIATION> 0 <TOTAL-ASSETS> 9,152,000 <CURRENT-LIABILITIES> 4,123,000 <BONDS> 2,403,000 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 65,349,000 <OTHER-SE> 149,000<F2> <TOTAL-LIABILITY-AND-EQUITY> 9,152,000 <SALES> 9,307,000 <TOTAL-REVENUES> 9,307,000 <CGS> 0 <TOTAL-COSTS> 11,678,000 <OTHER-EXPENSES> 589,000<F3> <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (2,960,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (2,960,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (2,960,000) <EPS-PRIMARY> (0.24) <EPS-DILUTED> (0.24) <FN> <F1>This value is net of depreciation. <F2>Value represents redeemable common stock warrants. <F3>Amount includes $107,000 of interest income. </FN>