<ARTICLE> 5 <MULTIPLIER> 1 <CURRENCY> U.S. <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUN-30-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> MAR-31-1998 <EXCHANGE-RATE> 1 <CASH> 65,000 <SECURITIES> 0 <RECEIVABLES> 128,000 <ALLOWANCES> (48,000) <INVENTORY> 880,000 <CURRENT-ASSETS> 1,596,000 <PP&E> 1,094,000 <DEPRECIATION> 424,000 <TOTAL-ASSETS> 2,334,000 <CURRENT-LIABILITIES> 6,284,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 3,060,000 <COMMON> 9,325,000 <OTHER-SE> (16,940,000) <TOTAL-LIABILITY-AND-EQUITY> 2,334,000 <SALES> 0 <TOTAL-REVENUES> 252,000 <CGS> 115,000 <TOTAL-COSTS> 4,064,000 <OTHER-EXPENSES> (164,000) <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 439,000 <INCOME-PRETAX> (4,416,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (4,416,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (4,416,000) <EPS-PRIMARY> (0.48) <EPS-DILUTED> (0.48)