Washington, DC. 20549

                                FORM 10-Q

                Quarterly Report Pursuant to Section 13 or 15 (d)
                    of the Securities Exchange Act of 1934

For the quarterly period ended                 Commission File Number 0-19437
MARCH 31, 1996

                (Exact Name of Registrant as Specified in Its Charter)

          DELAWARE                                    11-2962080
- - -------------------------------                   -------------------
(State of Other Jurisdiction of                    (I.R.S. Employer
Incorporation or Organization)                    Identification No.)

                2401 FOURTH AVENUE, SEATTLE, WASHINGTON 98121
             (Address of Principal Executive Offices) (Zip Code)

       Registrant's telephone number, including area code: (206) 443-6400

                              NOT APPLICABLE
              (Former name, former address and former fiscal year, 
                      if changed since last report.)

          Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to the
filing requirements for the past 90 days. Yes X  No 

          10,945,984 Common Shares were outstanding as of May 9, 1996.

                                    Page 1



                       TABLE OF CONTENTS FOR FORM 10-Q

PART I.  FINANCIAL INFORMATION................................................3

ITEM 1.  FINANCIAL STATEMENTS.................................................3

         AND RESULTS OF OPERATIONS............................................6

PART II.  OTHER INFORMATION..................................................11

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.....................................11

                                    Page 2



                      PART I.  FINANCIAL INFORMATION

Item 1.   Financial Statements

                                BALANCE SHEETS


                                                 MARCH 31, 1996      DECEMBER 31, 1995
                                                 --------------      -----------------
<S>                                              <C>                 <C>


Cash and cash equivalents                         $ 5,720,399            $ 9,448,255
Accounts receivable, net                              480,309                508,238
Inventories, net                                    2,783,130              1,947,060
Prepaid expenses and other current assets           1,289,477                827,712
                                                 --------------      -----------------
    Total Current Assets                           10,273,315             12,731,265

PROPERTY AND EQUIPMENT, net                         2,257,209              2,292,632

SOFTWARE DEVELOPMENT COSTS, net                     3,500,605              3,346,748
                                                 --------------      -----------------
TOTAL ASSETS                                      $16,031,129            $18,370,645
                                                 --------------      -----------------
                                                 --------------      -----------------


  Accounts payable and accrued liabilities        $   912,989            $ 1,154,396
  Payroll related liabilities                         296,526                223,222
  Taxes (other than payroll and income)                28,825                197,843
  Deferred revenue and customers' deposits            195,421                 61,973
                                                 --------------      -----------------
Total Current Liabilities                           1,433,761              1,637,434

  Preferred Stock, $0.01 par value per share,
    5,000,000 shares authorized, none issued
    and outstanding

  Common Stock, $0.001 par value per share, 
    30,000,000 shares authorized, 10,853,234 
    shares issued and outstanding in 1996 
    and 10,801,384 in 1995                             10,853                 10,801
  Additional paid-in capital                       20,713,338             20,348,674
  Deficit                                          (6,126,823)            (3,626,264)
                                                 --------------      -----------------
Total Stockholders' Equity                         14,597,368             16,733,211
                                                 --------------      -----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY        $16,031,129            $18,370,645
                                                 --------------      -----------------
                                                 --------------      -----------------

The accompanying notes are an integral part of these financial statements.

                                    Page 3


                             STATEMENTS OF OPERATIONS

                                                      THREE MONTHS ENDED
                                                          MARCH 31,
                                                     1996             1995
                                                 -------------    -------------
<S>                                              <C>              <C>
License and service fees                         $   645,622       $ 2,736,768
Equipment sales                                       89,164           612,812
Interest income                                      107,493           118,984
                                                 -------------    -------------
Total Revenues                                       842,279         3,468,564
Cost of license and service fees                     785,200           922,539
Cost of equipment sales                              278,405           611,731
Sales and marketing                                  822,873           507,607
General and administrative                           510,611           601,783
Research and development                             945,749           576,777
                                                 -------------    -------------
Total Costs and Expenses                           3,342,838         3,220,437
                                                 -------------    -------------
INCOME (LOSS) BEFORE INCOME TAXES                 (2,500,559)          248,127

PROVISION FOR INCOME TAXES                                               5,000
                                                 -------------    -------------
NET INCOME (LOSS)                                $(2,500,559)       $  243,127
                                                 -------------    -------------
                                                 -------------    -------------
NET INCOME (LOSS) PER SHARE                      $      (.23)       $      .02
                                                 -------------    -------------
                                                 -------------    -------------
WEIGHTED AVERAGE SHARES OUTSTANDING               10,804,450        11,079,343
                                                 -------------    -------------
                                                 -------------    -------------

The accompanying notes are an integral part of these financial statements.

                                    Page 4


                          STATEMENTS OF CASH FLOWS

                                                                       THREE MONTHS ENDED
                                                                             MARCH 31,
                                                                        1996         1995
                                                                    -----------  -----------
<S>                                                                 <C>          <C>
  Net income (loss)                                                  $(2,500,559) $  243,127
  Adjustments to reconcile net income (loss) 
    to net cash (used in) provided by operating activities:
    Depreciation and amortization of property and equipment              180,651     127,401
    Amortization of software development costs                           279,972     241,775
    Changes in operating assets and liabilities:
      Decrease (increase) in accounts receivable                          27,929  (1,528,363)
      (Increase) in inventories                                         (836,070)   (209,194)
      (Increase) in prepaid expenses and other current assets           (461,765)   (204,007)
      (Decrease) increase in accounts payable and 
        accrued liabilities                                             (241,407)    119,575
      Increase (decrease) in payroll related liabilities                  73,304    (134,552)
      (Decrease) increase in taxes (other than payroll and income)      (169,018)      2,120
      Increase in deferred revenue and customers' deposits               133,448     331,408
                                                                    -----------  -----------
NET CASH USED IN OPERATING ACTIVITIES                                 (3,513,515) (1,010,710)

  Purchase of property and equipment                                    (145,228)   (597,204)
  Capitalization of software development costs                          (433,829)   (413,857)
                                                                    -----------  -----------
NET CASH USED IN INVESTING ACTIVITIES                                   (579,057) (1,011,061)

  Proceeds from exercise of stock options                                364,716     268,399
                                                                    -----------  -----------
NET CASH PROVIDED BY FINANCING ACTIVITIES                                364,716     268,399
                                                                    -----------  -----------
NET (DECREASE) IN CASH AND CASH EQUIVALENTS                           (3,727,856) (1,753,372)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                       9,448,255   9,041,985
                                                                    -----------  -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                            $5,720,399  $7,288,613
                                                                    -----------  -----------
                                                                    -----------  -----------

The accompanying notes are an integral part of these financial statements.

                                    Page 5



                        NOTES TO FINANCIAL STATEMENTS


The accompanying unaudited financial statements of Cellular Technical 
Services Company, Inc. (the "Company"), including the December 31, 1995 
balance sheet which has been derived from audited financial statements, have 
been prepared in accordance with generally accepted accounting principles for 
interim financial information and with the instructions to Form 10-Q and Rule 
10-01 of Regulation S-X.  Accordingly, they do not include all of the 
information and footnotes required by generally accepted accounting 
principles for complete financial statements.  In the opinion of management, 
all adjustments (consisting of normal recurring accruals) considered 
necessary for a fair presentation have been included.  The operating results 
for the three  month period ended March 31, 1996 are not necessarily 
indicative of the results that may be expected for the fiscal year ending 
December 31, 1996.  For further information, refer to the financial 
statements and footnotes thereto included in the Company's Annual Report on 
Form 10-K for the year ended December 31, 1995.


The following information should be read in conjunction with the unaudited 
financial data and the notes thereto included in Item 1. of this Quarterly 
Report and Management's Discussion and Analysis of Financial Condition and 
Results of Operations contained in the Company's Annual Report on Form 10-K 
for the year ended December 31, 1995.

MARCH 31, 1995

Total revenues decreased 76% to $842,279 in 1996 from $3,468,564 in 1995 and 
the Company had a net loss of $2,500,559, or $.23 per share, compared to net 
income of $243,127, or $.02 per share, in 1995.  These operating results were 
consistent with previously announced expectations and are primarily 
attributable to: (i) long sales cycles, (ii) uneven contract revenue streams 
from the Company's Hotwatch-Registered Trademark- Platform and related 
application products ("Hotwatch Products"), and (iii) acceleration of efforts 
and expenditures in both sales and marketing and research and development of 
the Company's Blackbird-TM- Platform and PreTect-TM- fraud protection 
products ("Blackbird products").  The Company expects to achieve improved 
financial results from the Company's products beginning in the second quarter

License and service fees derived from the Company's Hotwatch products and 
phone rental products decreased 76% to $645,622 in 1996 from $2,736,768 in 
1995.  License and service revenues for the Company's Hotwatch products are 
principally derived from agreements with four customers.  These agreements 
consist of the Axys and Accountlink-TM- (referred to in the Company's Form 
10-K as "Interim Metered Billing") Agreements (collectively, "AWS 
Agreements") between the Company and AT&T Wireless Services, Inc. ("AWS"), a 
license agreement ("LIN/ACC Agreement") between the Company and collectively 
LIN Broadcasting Company ("LIN") and American Cellular Communications 
("ACC"), subsidiaries of AWS and BellSouth Cellular, respectively, and 
license agreements with 360DEG.  Communications Company (formerly Sprint 
Cellular Company) ("360DEG. CC") and Ameritech Mobile Communications, Inc. 
("Ameritech").  The Company also received license and service fees under 
agreements for its phone rental products which are in a wind down phase, as 
discussed below. Additionally, the Company recently signed contracts with 
AirTouch Cellular ("AirTouch") and Bell Atlantic NYNEX Mobile ("BANM") for 
installation of the Blackbird products in over 1,000 cell sites that are 
expected to increase revenues in subsequent periods of 1996 (discussed below 
in "Operating Outlook").  These contracts resulted from trials that had been 
conducted during 1995 for purposes of testing and evaluating the Company's 
Blackbird products.

License and service revenues from the Company's Hotwatch products decreased 
80% to $508,000 in 1996 from $2,511,000 in 1995.  Such revenues under the AWS 
Agreements totaled $90,000 and $1,820,000 during 1996 and 

                                    Page 6


1995, respectively.  This decrease is due primarily to completion of various 
phases of these contracts in 1995 that included large non-recurring license, 
service and implementation fees. License and service revenues under the 
LIN/ACC Agreement continued their expected decline as they decreased 24% to 
$292,000 in 1996 from $385,000 in 1995.  Recurring license and service fees 
from this agreement are expected to be minimal once products under the AWS 
Agreements are deployed and as AWS installs its internally-developed fraud 
management system in some or all of the LIN/ACC markets covered under the 
agreement.  Other Hotwatch license and service revenues decreased 59% to 
$126,000 from $306,000 principally as a result of non-recurring 1995 license 
fees associated with the installation of licenses called for in the Company's 
1994 agreement with 360DEG. CC.

License and service fees from the Company's phone rental products decreased 
38% to $147,000 in 1996 from $237,000 in 1995.  Marketing and further 
deployment of these products ceased in early 1995 as a result of the 
Company's decision to exit the phone rental market. This decision was 
prompted by the Company's evaluation of the long term prospects of this 
market as anticipated growth had been lower than previously expected.  
Revenues during the remainder of 1996 are expected to be minimal and reflect 
the wind down of the phone rental operations.

The Company anticipates that revenues under the agreements with AirTouch and 
BANM for licensing of the Company's Blackbird products will begin in late 
second quarter, or early third quarter, 1996.  Although the Company cannot 
definitively state the amount of revenues expected during the year ended 
December 31, 1996, it is management's opinion that such revenues will 
contribute significantly toward obtaining profitability during the year.

Equipment sales, which primarily consist of the sale of computer systems 
(which are generally non-recurring) and various peripheral and hardware 
components, decreased 85% to $89,164 from $612,812 in 1995.  Revenues during 
1995 were primarily derived from equipment sales associated with the AWS, 
360DEG. CC and Ameritech agreements.

Interest income decreased 10% to $107,493 in 1996 from $118,984 and is 
attributable to lower average cash balances invested at lower average 
interest rates during 1996 as compared to 1995.

Cost of license and service fees includes (i) the customer service and 
engineering support costs that are directly associated with supporting 
software license and service fee revenues, (ii) the amortization of software 
development costs, and (iii) the costs associated with the design and 
development of custom programming and related services.  Cost of license and 
service fees decreased 15% to $785,200 in 1996 from $922,539 in 1995.  The 
decrease is principally attributed to $250,000 of non-recurring design and 
development costs associated with service revenues under the AWS agreements 
recorded during 1995, which costs were partially offset by, (a) a 16% 
increase to $279,972 in 1996 from $241,775 in 1995 in amortization of 
software development costs primarily attributable to the 1995 release of the 
first phase of the Company's Blackbird products for which no license revenues 
were received, and (b) a 34% increase to $390,000 in 1996 from $291,000 in 
1995 for personnel and overhead related costs incurred in supporting 
anticipated growth in new customers and products during 1996.

Cost of equipment sales decreased 54% to $278,405 in 1996 from $611,731 in 
1995.  Cost of equipment sales, which includes purchased hardware, allocated 
installation costs, and, more recently, manufacturing overhead costs, has 
historically exceeded the related revenues from equipment sales.  Amounts 
recorded during 1995 include the costs of purchased hardware associated with 
the AWS, 360DEG. CC and Ameritech equipment sales.  The costs to sales ratio 
increased to 312% in 1996 from 100% in 1995.  The negative margins are 
primarily attributable to fixed engineering, installation overhead, and 
manufacturing overhead costs that were not recovered from equipment sales, 
and, in 1996, include overhead-related costs associated with the Company's 
new Blackbird products which are being deployed under both sales contracts 
and trial agreements for testing and evaluation in several markets and for 
which no revenues were recorded.  The Company anticipates however, that sales 
of equipment in support of its new Blackbird products will result in an 
improved cost to sales ratio and such sales are expected to contribute to 
profits in future periods.

                                    Page 7


Sales and marketing expenses increased 62% to $822,873 in 1996 from $507,607 
in 1995 as a result of increased personnel and related costs incurred in 
connection with the Company's expansion efforts to generate demand for the 
Company's products.  The Company's first quarter activities generally include 
its largest expenditures for trade shows and related events.  Sales and 
marketing expenses for the remainder of the current year are expected to 
increase substantially over those reported in 1995.

General and administrative expenses decreased 15% to $510,611 in 1996 from 
$601,783 in 1995.  This decrease is primarily the result of reduced 
management fees paid to Nationwide Cellular Service, Inc. ("Nationwide") 
under the four-year management services agreement between the Company and 
Nationwide that expired in August 1995.  General and administrative expenses 
for all of 1996, however, are expected to equal or exceed those levels 
reported in 1995.

Research and development costs increased 64% to $945,749 in 1996 from 
$576,777 in 1995 primarily due to the continued and expanded investment in 
the Company's Blackbird products.  Software development costs of $433,829 and 
$413,857 were capitalized during 1996 and 1995, respectively, and relate 
primarily to the development of the Company's Blackbird products.  In 
addition, expenditures of $224,000 related primarily to billable design and 
development services under the AWS Agreements were expensed as costs of 
services in 1995. Such expenses for 1996 were minimal.  Including capitalized 
software development and contract design and development costs, the Company 
incurred gross research and development expenditures of $1,397,000 in 1996 
which represents a 15% increase over 1995.  This increase is primarily the 
result of additional expenditures for personnel related costs for development 
of the Company's Blackbird products, and for legal fees expended to protect 
the Company's intellectual property.  The Company anticipates that 
development expenditures will continue to increase in 1996 and beyond in 
response to increased market demand for new and enhanced products as 
technology in the telecommunications industry moves forward at a rapid pace.


The Company's capital requirements consist primarily of funding software 
development, equipment requirements and the expansion of the Company's 
business.  On March 31, 1996 the Company's cash balance was $5,720,399 as 
compared to $9,448,255 on December 31, 1995 and working capital decreased to 
$8,839,554 at March 31, 1996 from $11,093,831 at December 31, 1995.

Cash used by operating activities amounted to $3,513,515 in 1996 as compared 
to $1,010,710 during 1995.  This increased utilization of cash reflects the 
loss in 1996, as compared to a profit in 1995, with the 1996 results being 
partially offset by increased depreciation and amortization and the changes 
in the balances of operating assets and liabilities.  The Company continues 
to increase its proprietary Blackbird hardware inventory to meet anticipated 
sales demand for Blackbird-related products during 1996.  The Company expects 
inventory levels to continue to grow during the second quarter of 1996 with 
reductions beginning during the last half of 1996 due to increased sales.  
Additional inventory, currently exceeding $2,000,000, is on order and is 
expected to be funded by customer deposits from signed contracts, cash 
generated from operating activities and/or from March 31, 1996 cash balances. 
At March 31, 1996 approximately $600,000 in deposits was prepaid for these 
inventory orders.  The Company does not currently expect its operating 
activities to provide consistent positive cash flow on a quarter-to-quarter 
basis as long sales cycles and staggered sales contract payments cause uneven 
cash flow streams.

Cash utilized by investing activities totaled $579,057 and $1,011,061 during 
1996 and 1995, respectively.  The Company's capital requirements have been 
for the funding of (i) property and equipment, primarily for furniture, 
leaseholds, and equipment associated with expanding the Company's business, 
and (ii) software development, particularly with respect to the Company's 
Blackbird products. These expenditure levels are expected to continue in 1996 
at or above the levels of 1995.  At March 31, 1996 the Company had no 
significant commitments for capital expenditures.  The Company, as part of 
its growth strategy, would consider the cost/benefit of purchasing software 
technology in the event that an attractive opportunity arises.

                                    Page 8


Cash provided by financing activities has been generated from the exercise of 
stock options issued to the Company's directors, officers and employees.  
Proceeds from these activities totaled $364,716 and $268,399 in 1996 and 
1995, respectively.

Should the Company's recent contract signings and expanded sales efforts lead 
to additional sales of its Blackbird products, and/or, should the cash flow 
from the Company's existing backlog of sales be deferred past current 
expectations, the Company may need to obtain additional financing to fund 
this growth and its operations.  Factors impacting the need will be timing of 
contract signings, negotiated payment terms, timing of system installation 
and acceptance, manufacturing and inventory lead times and other issues.  The 
Company believes that debt or equity financing could be obtained from 
currently identified or new sources.


In March 1996, the Company signed an agreement with AirTouch under which the 
Company will be the exclusive provider of cellular fraud prevention systems 
using radio frequency technology to AirTouch and its affiliates.  AirTouch's 
cellular licenses include both "A Band" and "B Band" properties.  The Company 
and AirTouch have begun installation of the Company's Blackbird products in 
AirTouch's Atlanta (A Band) and Los Angeles (B Band) markets.  In addition,
AirTouch's New Par and Bay Area Cellular Telephone Company affiliates have
agreed to deploy the Blackbird products in their Detroit and San Francisco
A Band properties respectively.  The exclusive five year contract, which calls
for the purchase of the Company's products in at least 1,000 cell sites,
schedules minimum deployment in the majority of the cell sites during 1996
and 1997.  Concurrently, contracts were signed for support services and CTS's
real-time roaming fraud prevention services.

In March 1996, the Company signed an interim agreement with BANM, which holds
cellular licenses for both "A Band" and "B Band" properties.  Under the interim
agreement, the Company and BANM are currently deploying the Company's Blackbird
products in BANM's New York (B Band) market.  Concurrently, both parties are
negotiating a definitive license agreement, which will ultimately determine the
size and scope of an anticipated greater deployment.  The Company believes that
the definitive agreement will provide for installation of the Company's products
in a large number of BANM's cell sites, and will also include provisions for 
the Company's support and maintenance services and CTS's real-time roaming 
fraud prevention service.

Revenues from the agreements discussed above, and others which may be signed 
in the near future, may contribute only modestly to financial results for the
first half of 1996.  The Company is, however, optimistic about the anticipated
ramp-up in the second half of the year and for 1997 and beyond.

The Company's sources of revenue are highly concentrated among a few large 
domestic cellular carriers due to the significant concentration of ownership 
and/or control of cellular licenses.  The Company expects that a relatively 
small number of customers will continue to account for a high percentage of 
its total revenues.  The AWS and LIN/ACC Agreements discussed above accounted 
for 52% of the Company's total product and service revenues in 1996, which 
compares to 66% in 1995.  As the Company expands its marketing efforts 
internationally and as the wireless industry expands beyond cellular 
telephony to include Personal Communications Services ("PCS"), and other 
wireless infrastructures, the Company believes that markets for its products 
and services will expand.  This diversification should broaden the Company's 
revenue base and allow for less dependence on a small group of customers.  
The Company has made and will continue to make significant efforts to 
diversify its revenue sources in the wireless industry and expects to achieve 
such in 1996 and beyond.  Revenues originating from the recent contract
signings for the Company's Blackbird products will decrease the Company's
reliance on the AWS and LIN/ACC Agreements.

                                    Page 9


In April 1996, the Company announced the signing of a letter of intent with 
Authentix Network, Inc. ("Authentix") to form a strategic alliance which 
would complement CTS's real-time roaming fraud prevention service.  The 
proposed alliance would combine the strength of the Authentix nationwide 
roamer verification service with the strength of the Company's Blackbird 
products.  It will also enable carriers to extend the reach of the Company's 
Blackbird products into markets that do not utilize the Company's fraud 
prevention products, and to provide a less obtrusive delivery of roamer 
verification to their customers.  Under the terms of the proposed strategic 
alliance, Authentix would grant the Company rights to jointly market and 
support Authentix nationwide roamer verification products and services.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" 
for forward looking statements.  The statements above which are not 
historical facts are forward-looking statements that involve risks and 
uncertainties, including, but not limited to, demand for the Company's 
products and market acceptance risks, the effect of economic conditions, the 
impact of competitive products and pricing, hardware and software product 
development, commercialization and technological difficulties, manufacturing 
capacity and product supply constraints or difficulties, actual purchases by 
current and prospective customers under existing and expected agreements, the 
progress of contract implementation efforts that allow the Company to recognize
revenue under its accounting policies, and the results of financing efforts,
along with other risks detailed in the Company's Form 10-K and 10-Q Securities
and Exchange Commission filings.

                                    Page 10


                      PART II.  OTHER INFORMATION



     11.1 Computation of Earnings Per Share

     27   Financial Data Schedule - filed only with EDGAR submission

b)   No reports on Form 8-K have been filed during the quarter for which this 
     report is filed.


Pursuant to the requirements of the Securities Exchange Act of 1934, the 
Registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.


                                  By: /s/ Michael E. McConnell
                                     Michael E. McConnell
                                     Vice President and Chief Financial Officer
                                     May 14, 1996

                                    Page 11




                                                      THREE MONTHS ENDED
                                                           MARCH 31,
                                                      1996         1995
                                                    -----------  ----------
Primary earnings per share:
  Net income (loss) for calculation of primary
    earnings per share                             $(2,500,559)  $  243,127
                                                    -----------  ----------
Weighted average number of shares outstanding       10,804,450    9,876,404

Dilutive effect of outstanding stock options -
 based upon the Treasury Stock Method using
   average market price (1)                                       1,202,939
                                                    -----------  ----------
Weighted average number of shares, as adjusted,
  for calculation of primary earnings per share      10,804,450  11,079,343
                                                    -----------  ----------
                                                    -----------  ----------
Primary earnings (loss) per share (2)              $       (.23) $      .02
                                                    -----------  ----------
                                                    -----------  ----------

(1) Common Stock equivalent shares have not been considered in the calculations 
for the three month period ended March 31, 1996 because the effect would be 

(2) Fully diluted earnings per share computations are not included since they 
would not materially change results presented on the primary earnings per 
share basis.

                                    Page 12

<TABLE> <S> <C>

<S>                             <C>
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               MAR-31-1996
<CASH>                                       5,720,399
<SECURITIES>                                         0
<RECEIVABLES>                                  560,310
<ALLOWANCES>                                    80,001
<INVENTORY>                                  2,783,130
<CURRENT-ASSETS>                            10,273,315
<PP&E>                                       4,505,606
<DEPRECIATION>                               2,248,397
<TOTAL-ASSETS>                              16,031,129
<CURRENT-LIABILITIES>                        1,433,761
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        10,853
<OTHER-SE>                                  14,586,515
<TOTAL-LIABILITY-AND-EQUITY>                16,031,129
<SALES>                                         89,164
<TOTAL-REVENUES>                               842,279
<CGS>                                          278,405
<TOTAL-COSTS>                                3,342,838
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                            (2,500,559)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                        (2,500,559)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                               (2,500,559)
<EPS-PRIMARY>                                   (0.23)
<EPS-DILUTED>                                   (0.23)