<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> AUG-31-1996 <PERIOD-START> SEP-01-1996 <PERIOD-END> NOV-30-1996 <CASH> 7,974 <SECURITIES> 0 <RECEIVABLES> 55,678 <F1> <ALLOWANCES> 0 <INVENTORY> 9,106 <CURRENT-ASSETS> 133,591 <PP&E> 1,576,243 <DEPRECIATION> 296,518 <TOTAL-ASSETS> 2,135,718 <CURRENT-LIABILITIES> 2,088,519 <BONDS> 826,837 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 21,050 <OTHER-SE> 6,250 <TOTAL-LIABILITY-AND-EQUITY> 2,135,718 <SALES> 28,198 <F1> <TOTAL-REVENUES> 87,041 <CGS> 27,490 <TOTAL-COSTS> 188,012 <OTHER-EXPENSES> 542,018 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (33,334) <INCOME-PRETAX> (676,323) <INCOME-TAX> 0 <INCOME-CONTINUING> (642,989) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (676,323) <EPS-PRIMARY> (.14) <EPS-DILUTED> (.14) <FN> <F1>Due to the results of an investigation, the Company eliminated $800,000 of software revenue since it was determined that it has never delivered the software even though it received $791,750 from two purported sublicensees for said software. </FN>