<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> AUG-31-1998 <PERIOD-START> SEP-01-1997 <PERIOD-END> NOV-30-1997 <CASH> 40,458 <SECURITIES> 0 <RECEIVABLES> 1,700,809 <ALLOWANCES> 924,447 <INVENTORY> 1,139,441 <CURRENT-ASSETS> 3,249,872 <PP&E> 3,444,670 <DEPRECIATION> 1,031,027 <TOTAL-ASSETS> 9,669,892 <CURRENT-LIABILITIES> 4,418,626 <BONDS> 0 <PREFERRED-MANDATORY> 292,558 <PREFERRED> 0 <COMMON> 24,774,154 <OTHER-SE> 0 <TOTAL-LIABILITY-AND-EQUITY> 9,669,892 <SALES> 1,311,488 <TOTAL-REVENUES> 1,311,488 <CGS> 912,040 <TOTAL-COSTS> 912,040 <OTHER-EXPENSES> 121,755 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 118,616 <INCOME-PRETAX> (1,348,352) <INCOME-TAX> 1,600 <INCOME-CONTINUING> (1,349,952) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (1,244,196) <EPS-PRIMARY> (.01) <EPS-DILUTED> (.01)