Versus Technology Announces Third Quart...(000 Changes in operating assets and...),Health

Changes in operating assets and liabilities:

Accounts receivable 473,000 890,000

Inventories (79,000) (184,000)

Prepaid expenses and other current assets (64,000) (85,000)

Accounts payable (53,000) (36,000)

Accrued expenses (39,000) (2,000)

Deferred revenues - customer advance

payments (104,000) (46,000)

Net cash (used in) provided by operating

activities (574,000) 140,000

Investing Activities

Additions to property and equipment (281,000) (33,000)

Financing Activities

Issuance of common stock 117,000 352,000

Net (Decrease) Increase in Cash and

Cash Equivalents (738,000) 459,000

Cash and Cash Equivalents, at the

beginning of the period 2,428,000 1,401,000

Cash and Cash Equivalents, at the end

of the period $1,690,000 $1,860,000

See accompanying report of management.