<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ___________
Commission file number: 0-26906
ASTA FUNDING, INC.
---------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Delaware 22-3388607
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
210 Sylvan Ave., Englewood Cliffs, New Jersey 07632
- --------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Issuer's telephone number: (201) 567-5648
Former name, former address and former fiscal year, if changed since
last report: N/A
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months
(or for such shorter period that the registrant was required to file such
reports) and (2) has been subject to such filing requirements for the past 90
days. Yes X No
------ -------
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. Yes No
------ -------
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: As of August 1, 1998 the
registrant had 3,945,000 common shares outstanding.
Transitional Small Business Disclosure Format (check one): Yes X No
----- -----
<PAGE>
Asta Funding, Inc. and Subsidiaries
Form 10-QSB June 30, 1998
INDEX
Part I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets as of June 30, 1998
(Unaudited) and September 30, 1997
Consolidated Statements of Operations for the three-
and nine-month periods ended June 30, 1998 and
June 30, 1997 (Unaudited)
Consolidated Statements of Cash Flows for the
nine-month periods ended June 30, 1998 and June 30, 1997
(Unaudited)
Notes to consolidated financial statements (Unaudited)
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Part II. Other Information
Item 1. Legal Proceedings
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
Signatures
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Asta Funding, Inc. and Subsidiaries
Consolidated Balance Sheets
June 30, September 30,
------------ -------------
1998 1997
------------ ------------
Unaudited
Assets
Cash $ 68,898 $ 503,715
Restricted cash and cash equivalents 1,624,104 2,546,670
Loans receivable, net 15,320,868 3,247,542
Accounts acquired for liquidation 1,182,999 --
Accrued interest receivable 206,766 34,141
Servicing fees receivable 33,393 70,626
Income taxes receivable -- 418,101
Servicing assets 64,893 897,352
Residual interest 627,283 951,857
Due from trustee 95,245 146,910
Furniture and equipment, net 176,671 154,605
Repossessed automobiles, net 663,184 226,248
Deferred taxes 539,897 --
Other assets 153,273 171,777
------------ ------------
Total assets $ 20,757,474 $ 9,369,544
============ ============
Liabilities and Stockholders' Equity
Liabilities
Bank overdraft $ 171,191 $ --
Advances under lines of credit 11,755,130 --
Accounts payable and accrued expenses 297,234 419,080
Deferred taxes -- 275,000
Due to affiliate 1,158,439 188,360
------------ ------------
Total liabilities 13,381,994 882,440
------------ ------------
Stockholders' Equity
Common stock, $.01 par value; authorized
10,000,000 shares; issued and outstanding
3,945,000 39,450 39,450
Additional paid-in capital 9,602,421 9,602,421
Accumulated deficit (2,266,391) (1,236,466)
Unrealized gain on residual interest (net of
income taxes of $55,000) -- 81,699
------------ ------------
Total stockholders' equity 7,375,480 8,487,104
------------ ------------
Total liabilities and stockholders' equity $ 20,757,474 $ 9,369,544
============ ============
See accompanying notes to consolidated financial statements
<PAGE>
Asta Funding, Inc. and Subsidiaries
Consolidated Statements of Operations
Unaudited
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
June 30, June 30,
-------------------------- --------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
Revenues:
<S> <C> <C> <C> <C>
Interest $ 1,894,787 $ 1,058,056 $ 3,098,267 $ 2,411,181
Servicing fees (18,481) 45,122 354,905 402,907
Other income 31,644 -- 31,644 --
----------- ----------- ----------- -----------
1,907,950 1,103,178 3,484,816 2,814,088
----------- ----------- ----------- -----------
Expenses:
General and administrative 620,857 768,341 2,061,013 2,226,228
Provision for credit losses 1,570,366 587,000 2,700,366 1,206,700
Interest 256,135 184,572 447,436 320,773
----------- ----------- ----------- -----------
2,447,358 1,539,913 5,208,815 3,753,701
----------- ----------- ----------- -----------
(Loss) before (benefit) for
income taxes (539,408) (436,735) (1,723,999) (939,613)
(Benefit) for income taxes (220,190) (173,460) (694,075) (375,410)
----------- ----------- ----------- -----------
Net (loss) $ (319,218) $ (263,275) $(1,029,924) $ (564,203)
=========== =========== =========== ===========
Basic and diluted net income (loss) per share $ (0.08) $ (0.07) $ (0.26) $ (0.14)
=========== =========== =========== ===========
Weighted average number of shares
outstanding 3,945,000 3,960,000 3,945,000 3,960,000
=========== =========== =========== ===========
</TABLE>
See accompanying notes to consolidated financial statements
<PAGE>
Asta Funding, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Unaudited
<TABLE>
<CAPTION>
Nine Months Ended
June 30,
----------------------------
1998 1997
------------ ------------
Cash flows from operating activities:
<S> <C> <C>
Net (loss) $ (1,029,924) $ (564,203)
Adjustments to reconcile net (loss) to net
cash provided by operating activities:
Depreciation and amortization 55,192 80,327
Amortization of excess servicing 956,222 1,397,206
Provision for losses 2,700,366 1,206,700
Deferred income taxes (814,897) 215,000
Expenses advanced by affiliate 48,000 75,660
Changes in operating assets and liabilities:
Accrued interest receivable (172,445) (167,831)
Servicing fees receivable 37,233 25,850
Due from trustee 8,465 1,887,625
Restricted cash 472,566 (1,413,345)
Other assets 30,623 24,339
Accounts payable and accrued expenses (161,149) (1,897,229)
------------ ------------
Net cash provided by operating activities 2,130,252 870,099
Cash flows from investing activities:
Loans originated (16,845,723) (16,346,349)
Loans repaid 3,430,008 2,999,440
Acquisitions of accounts acquired for liquidation (3,316,510) --
Principal collected on accounts acquired for liquidation 2,133,511 --
Capital expenditures (72,066) (92,243)
------------ ------------
Net cash used in investing activities (14,670,780) (13,439,152)
Cash flows from financing activities:
Advances from (payments to) affiliate 177,008 (1,525,695)
Increase in bank overdraft 171,191 147,681
Advances under lines of credit 11,755,129 10,550,000
------------ ------------
Net cash provided by financing activities 12,103,328 9,171,986
------------ ------------
(Decrease) in cash (437,200) (3,397,067)
Cash at the beginning of period 506,098 3,401,674
------------ ------------
Cash at end of period $ 68,898 $ 4,607
============ ============
Supplemental disclosure of cash flow information:
Cash paid during the period
Interest $ 327,304 $ 233,360
Income taxes $ -- $ 900,000
</TABLE>
See accompanying notes to consolidated financial statements
<PAGE>
Asta Funding, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
Note 1: Basis of Presentation
Asta Funding, Inc. (the "Company") is a consumer finance company engaged in
the business of purchasing, selling and servicing retail installment sales
contracts ("Contracts") originated by automobile dealers ("Dealers") in the
sale primarily of used automobiles. The Company was formed on July 7, 1994.
The Company's fiscal year-end is September 30.
The consolidated balance sheet as of June 30, 1998, the consolidated
statements of operations for the three- and nine-month periods ended June 30,
1998 and 1997, and the consolidated statements of cash flows for the
nine-month periods ended June 30, 1998 and 1997, have been prepared by the
Company without an audit. In the opinion of management, all adjustments (which
include only normal recurring adjustments) necessary to present fairly the
financial position of the Company at June 30, 1998 and September 30, 1997, the
results of operations for the three- and nine-month periods ended June 30,
1998 and 1997 and the cash flows for the nine-month periods ended June 30,
1998 and 1997 have been made. The results of operations for the three- and
nine-month periods ended June 30, 1998 and 1997 are not necessarily indicative
of the operating results for the full year.
Pursuant to the rules and regulations of the Securities and Exchange
Commission, certain information and footnote disclosures required under
generally accepted accounting principles have been condensed or omitted from
the presented financial statements. It is suggested that these financial
statements be read in conjunction with the financial statements and notes
thereto included in the Company's Annual Report on Form 10-KSB for the fiscal
year ended September 30, 1997.
Certain reclassifications were made to the 1997 financial statements to
conform to the 1998 presentation.
Note 2: Principles of Consolidation
The consolidated financial statements include the accounts of Asta Funding,
Inc. and its wholly-owned subsidiaries, Asta Auto Receivables Company, E.R.
Receivables Corp., L.L.C., RAC Acceptance Co., L.L.C., and Palisades
Collections, L.L.C. All significant intercompany balances and transactions
have been eliminated in consolidation.
Note 3: Loans Receivable
The Contracts which the Company purchases from Dealers provide for finance
charges of between 14.99% and 29.9% per annum. Each Contract provides for full
amortization, equal monthly payments and permits prepayments by the borrower
at any time without penalty. The Company generally purchases Contracts at a
discount from the full amount financed under a Contract.
Note 4: Accounts acquired for liquidation
Accounts acquired for liquidation are stated at their net realizable value and
consist of comsumer loans to individuals throughout the country.
Note 5: Interest Income
Interest income on loans is recognized using the interest method. Accrual of
interest income on loans receivable is suspended when a loan is contractually
delinquent more than 60 days. The Company recognizes interest income on
accounts acquired for liquidation using the interest method.
Note 6: Servicing Fees
Servicing fees are reported as income when earned. Servicing costs are charged
to expense as incurred.
<PAGE>
Asta Funding, Inc.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Overview
The Company is engaged in the business of purchasing, selling and servicing
retail installment sales contracts ("Contracts") originated by automobile
dealers ("Dealers") in the sale primarily of used automobiles. The Company was
formed on July 7, 1994 and purchased its first Contract in October 1994.
The Company typically purchases Contracts between Dealers and purchasers of
automobiles ("Sub-Prime Borrowers") who may have limited credit histories, low
incomes or past credit problems and, therefore, are generally unable to obtain
credit from traditional sources of automobile financing such as commercial
banks, savings and loan associations or credit unions. Sub-Prime Borrowers
typically pay a higher rate of interest than do prime borrowers utilizing
traditional financing sources.
The Company generates revenues, earnings and cash flow primarily through the
purchase and collection of principal, interest and other payments on
Contracts.
In April 1998, the Company formed RAC Acceptance Co., L.L.C. ("RAC"), a wholly
owned subsidiary of the Company, to purchase military consumer automobile
Contracts. During the quarter ended June 30, 1998, RAC purchased approximately
$674,992 in military Contracts. The financing of these Contracts was provided
through a credit facility from Sterling Financial Services Company and in part
by funds from Asta Group, Incorporated, an affiliate of the Company.
In May 1998, the Company formed E.R. Receivables Corp., L.L.C. ("ER"), a
wholly owned subsidiary of the Company for the purpose of purchasing consumer
receivables at a discount. During the quarter ended June 30, 1998, ER
purchased a portfolio of approximately $6.0 million of performing and
non-performing consumer receivables at a discount. It subsequently sold
approximately $2.5 million out of the $6.0 million that was purchased at a
premium to the original purchase price. The financing of this acquisition was
provided by the seller of the receivables and Asta Group, Incorporated, an
affiliate of the Company.
On May 20, 1998, the Company purchased 99.0% of the Class A and Class B bond
certificates of the ASTA Grantor Trust 1996-1 at a discount from Greenwich
Capital Markets, Inc. The net purchase price for the certificates was
$5,544,344.95 including accrued interest. Such funds were made available to
the Company under its credit facility with BankAmerica.
In June 1998, ER and Palisades Collection, L.L.C., a wholly owned subsidiary
of the Company, entered into a distressed consumer receivables loan and
security agreement pursuant to which ER will help finance the purchase of
distressed consumer receivables and Palisades will act as sub-servicer for
such receivables. To date, no distressed consumer receivables have been
purchased under such agreement.
The following discussion and analysis should be read in conjunction with the
Consolidated Financial Statements, the related Notes to Consolidated Financial
Statements, and Management's Discussion and Analysis of Financial Condition
and Results of Operations incorporated by reference in the Company's Annual
Report on Form 10-KSB for the year ended September 30, 1997, and the Unaudited
Consolidated Financial Statements and related Notes to Consolidated Financial
Statements included in Item 1 of Part 1 of this Quarterly Report on Form
10-QSB.
Results of operations
The three-month period ended June 30, 1998, compared to the three-month period
ended June 30, 1997
Revenues. During the three-month period ended June 30, 1998, revenues
increased $804,772 compared to the three-month period ended June 30, 1997.
Interest income increased $836,731 compared to the three months ended June 30,
1997, and represented 99.3% of total revenues for the three-month period ended
June 30, 1998. The increase in interest income is due to approximately
$860,000 earned from consumer receivable accounts acquired for liquidation.
("Accounts") During the three-month period ended June 30, 1998, the Company
purchased 285 Contracts from Dealers, compared to 877 in the three-month
period ended June 30, 1997. The decrease in the number of Contracts purchased
from Dealers resulted from the Company's recent refocusing of its strategic
business objectives by its expansion into the distressed consumer receivables
sector. Servicing fee income on Contracts sold decreased $63,603 compared to
the three months ended June 30, 1997. The decrease in servicing fee income is
due to the decrease in the dollar amount of Contracts serviced by the Company
during the three-month period ended June 30, 1998.
<PAGE>
Asta Funding, Inc.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Expenses. During the three-month period ended June 30, 1998, general and
administrative expenses decreased $147,484 compared to the three months ended
June 30, 1997 and represented 25.4% of total operating expenses. The decrease
in general and administrative expenses is due to a decrease in costs
associated with purchasing Contracts.
Interest expense increased by $71,563 during the three-month period ended June
30, 1998, compared to the same period in the prior year and represented 10.5%
of total expenses for the three-month period ended June 30, 1998. The increase
is due to an increase in borrowings under the lines of credit with BankAmerica
and Sterling Financial Services Company.
During the three-month period ended June 30, 1998, the provision for credit
losses on Contracts purchased increased by $983,366 compared to the three
months ended June 30, 1997 and represented 64.2% of total operating expenses.
This increase reflects higher than expected losses on loans previously sold
and serviced by the Company.
The nine-month period ended June 30, 1998, compared to the nine-month period
ended June 30, 1997
Revenues. During the nine-month period ended June 30, 1998, revenues increased
$670,728 compared to the nine-month period ended June 30, 1997. Interest
income increased $687,086 compared to the nine months ended June 30, 1997, and
represented 88.9% of total revenues for the nine-month period ended June 30,
1998. The increase in interest income is due to approximately $860,000 earned
on the Accounts acquired for liquidation. During the nine-month period ended
June 30, 1998, the Company purchased 1,217 Contracts from Dealers, compared to
1,736 in the nine-month period ended June 30, 1997. The decrease in the number
of Contracts purchased from Dealers resulted primarily from the Company's
recent refocusing of its strategic business objectives by its expansion into
the distressed consumer receivables sector. The Company earned servicing fees
of $354,905 for the nine months ended June 30, 1998, as compared to $402,907
for the nine-month period ended June 30, 1997. The decrease in servicing fee
income is due to the decrease in the dollar amount of Contracts serviced by
the Company during the nine month period ended June 30, 1998.
Expenses. During the nine-month period ended June 30, 1998, general and
administrative expenses decreased $165,215 compared to the nine months ended
June 30, 1997 and represented 39.6% of total operating expenses. The decrease
in general and administrative expenses is due to a decrease in expenses
associated with purchasing Contracts.
Interest expense increased by $126,663 during the nine-month period ended June
30, 1998 compared to the same period in the prior year and represented 8.6% of
total expenses for the nine-month period ended June 30, 1998. The increase is
due to an increase in borrowings under the Company's lines of credit with
BankAmerica and Sterling Financial Services Company.
During the nine-month period ended June 30, 1998, the provision for credit
losses on Contracts purchased increased by $1,493,666 compared to the nine
months ended June 30, 1997 and represented 51.8% of total operating expenses.
This increase reflects higher than expected losses on loans previously sold
and serviced by the Company.
Liquidity and Capital Needs
The Company's primary sources of cash from operating activities include
borrower payments on Contracts and payments received on Accounts acquired for
liquidation, proceeds on the sale of Contracts in excess of its recorded
investment in the Contracts and base servicing fees it earns on Contracts it
has sold. The Company's primary uses of cash include its purchases of
Contracts and Accounts acquired for liquidation, ordinary operating expenses
and the establishment and buildup of Spread Accounts. (Defined Below)
Net cash provided by operating activities was $1.7 million during the nine
months ended June 30,1998 compared to $.9 million during the nine months ended
June 30, 1997. Cash used for purchasing Contracts was $16.8 million during the
nine months ended June 30, 1998 as compared to $16.3 million in the nine
months ended June 30, 1997. Cash used for purchasing Accounts acquired for
liqidation was $3.8 million during the nine months ended June 30, 1998.
<PAGE>
Asta Funding, Inc.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
The Company's cash requirements have been and will continue to be significant.
Pursuant to the terms of a securitization agreement between Greenwich Capital
Markets, Inc. and the Company, the Company is required to make a significant
cash deposit into Spread Accounts, for the purpose of credit enhancement. The
Spread Accounts are pledged to support the related Asset Backed Securities
("ABS"), and are invested in high quality liquid securities. Excess cash flows
from securitized Contracts are deposited into the Spread Accounts until such
time as the Spread Account balances reach a specific percent of the
outstanding balance of the related ABS.
In January 1998, the Company entered into a two-year credit facility with
BankAmerica under which the Company can borrow at an advance rate of 83% of
eligible loans receivable up to a maximum of $20 million. At June 30, 1998,
advances under this facility aggregated $11,350,000. The advances bear
interest at the prime rate plus 1%. At June 30, 1998, the Company was in
technical default under certain covenants contained in the credit facility and
the advance rate was decreased to 80% of eligible loans. Currently, the
Company is renegotiating these covenants.
In April 1998, RAC entered into a demand credit facility with Sterling
Financial Services Company under which RAC can borrow at an advance rate of
65% of eligible loans receivable up to a maximum of $1 million. At June 30,
1998, advances under this facility aggregated $405,129. The advances bear
interest at the prime rate plus 4%.
The Company anticipates the funds available under its credit facilities, funds
made available by Asta Group, Incorporated, an affiliate of the Company,
proceeds from the sale of Contracts, and cash from operations will be
sufficient to satisfy the Company's estimated cash requirements for at least
the next 12 months, assuming that the Company continues to have a means by
which to sell its Contracts. If for any reason the Company is unable to sell
its Contracts, or if the Company's available cash otherwise proves to be
insufficient to fund operations (because of future changes in the industry,
general economic conditions, unanticipated increases in expenses, or other
factors), the Company may be required to seek additional funding.
The Company does not anticipate any need for significant capital expenditures
in connection with the expansion of its business for at least 12 months.
Forward-Looking Statements
This Form 10-QSB contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Such statements include, but are not limited to, the
Company's opportunities to increase revenues through, among other things, the
purchase and sale of additional Contracts, and the anticipated need and
availability of financing.
Forward-looking statements are inherently subject to risks and uncertainties,
many of which cannot be predicted with accuracy and some of which might not
even be anticipated. Future events and actual results, financial and
otherwise, could differ materially from those set forth in or contemplated by
the forward-looking statements herein. Important factors that could contribute
to such differences are: increases in unemployment or other changes in
domestic economic conditions which adversely affect the sales of new and used
automobiles and which may result in increased delinquencies, foreclosures and
losses on Contracts; adverse economic conditions in geographic areas in which
the Company's business is concentrated, mainly the Northeast and Mid-Atlantic
States; changes in interest rates; adverse changes in the market for
securitized receivables pools or a substantial lengthening of the Company's
warehousing each of which could restrict the Company's ability to obtain cash
for Contract origination and purchases; increases in the amounts required to
be set aside in spread accounts or to be expended for other forms of credit
enhancement to support future securitizations; increased competition; a
reduction in the number and amount of acceptable Contracts submitted to the
Company by its dealers; changes in government regulations effecting consumer
credit; and other risk factors identified in the Company's filings with the
Securities and Exchange Commission, including under the caption "Risk Factors"
in its most recent Registration Statement on Form S-1. Subsequent written and
oral forward-looking statements attributable to the Company or persons acting
on its behalf are expressly qualified by the precautionary statements in this
paragraph and elsewhere in this Form 10-QSB.
<PAGE>
Asta Funding, Inc.
Form 10-QSB June 30, 1998
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
As of the date of this Filing, the Company was not involved in any
material litigation in which it is the defendant. The Company regularly
initiates legal proceedings as a plaintiff in connection with its routine
collection activities.
Item 5. Other Information
On May 6, 1998, NASDAQ notified the Company that the Company's common
stock failed to maintain a closing bid price greater than or equal to $1.00.
The Company has been provided a ninety day period from May 6, 1998 in which to
regain compliance with the minimum bid price requirement for a minimum of ten
consecutive trading days. During this period, the Company's common stock did
maintain the minimum bid price requirement and the Company has not received
any further notifications from NASDAQ.
Item 6. Exhibits and Reports on Form 8-K
a. The following exhibits are filing as part of this quarterly on
form 10-QSB.
27.1 Financial Data Schedule
b. Reports on Form 8-K
1. May 20, 1998 - Item 2, regarding the purchase and sale of consumer
receivables.
2. May 29, 1998 - Item 2, regarding the purchase of the ASTA Grantor
Trust 1996-1.
<PAGE>
Asta Funding, Inc.
Form 10-QSB June 30, 1998
Signatures
In accordance with the requirements of the Securities Exchange Act of 1934,
the Registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ASTA FUNDING, INC.
(Registrant)
Date: August 10, 1998 By: /s/ Gary Stern
-----------------------
Gary Stern, President, Chief Executive
Officer
(Principal Executive Officer)
Date: August 10, 1998 By: /s/ Mitchell Herman
-----------------------------------
Mitchell Herman, Chief Financial
Officer
(Principal Financial Officer and
Principal Accounting Officer)
Exhibit Index
Exhibit No. 27.1 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> APR-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 68,898
<SECURITIES> 0
<RECEIVABLES> 19,101,813
<ALLOWANCES> (1,570,366)
<INVENTORY> 663,184
<CURRENT-ASSETS> 18,263,529
<PP&E> 310,801
<DEPRECIATION> (134,130)
<TOTAL-ASSETS> 20,757,474
<CURRENT-LIABILITIES> 13,381,994
<BONDS> 0
39,450
0
<COMMON> 0
<OTHER-SE> 9,602,421
<TOTAL-LIABILITY-AND-EQUITY> 20,757,474
<SALES> 1,907,950
<TOTAL-REVENUES> 1,907,950
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 620,857
<LOSS-PROVISION> 1,570,366
<INTEREST-EXPENSE> 256,135
<INCOME-PRETAX> (539,408)
<INCOME-TAX> (220,190)
<INCOME-CONTINUING> (319,218)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (319,218)
<EPS-PRIMARY> (0.08)
<EPS-DILUTED> (0.08)
</TABLE>
