<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JUL-01-1998 <PERIOD-END> SEP-30-1998 <CASH> 2,117,000 <SECURITIES> 0 <RECEIVABLES> 859,000 <ALLOWANCES> (706,000) <INVENTORY> 889,000 <CURRENT-ASSETS> 0<F1> <PP&E> 93,000 <DEPRECIATION> (92,000) <TOTAL-ASSETS> 3,318,000 <CURRENT-LIABILITIES> 0<F1> <BONDS> 12,757,000 <COMMON> 532,000 <PREFERRED-MANDATORY> 0 <PREFERRED> 2,000,000 <OTHER-SE> (24,257,000) <TOTAL-LIABILITY-AND-EQUITY> 3,318,000 <SALES> 28,000 <TOTAL-REVENUES> 170,000 <CGS> 5,000 <TOTAL-COSTS> 10,000 <OTHER-EXPENSES> 134,000 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 438,000 <INCOME-PRETAX> (412,000) <INCOME-TAX> (104,000) <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (308,000) <EPS-PRIMARY> (.09) <EPS-DILUTED> (.09) <FN> <F1> CURRENT ASSETS AND CURRENT LIABILITIES VALUES ARE ZERO BECAUSE OF AN UNCLASSIFIED BALANCE SHEET.