<PAGE> 1
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 For the
Quarterly period ended June 30, 1997
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from __________ to __________
Commission file number 0-28710
(Exact name of small business issuer as
specified in its charter)
PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
CALIFORNIA 33-0548134
(Address of principal executive offices)
4100 NEWPORT PLACE, SUITE 400, NEWPORT BEACH, CALIFORNIA
(Issuer's telephone number)
(714) 261-2400
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such report(s), 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 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: N/A
Transitional Small Business Disclosure Format (check one):
Yes [ ] No [X]
1
<PAGE> 2
PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
INDEX TO FORM 10-QSB
PART I
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis or Plan of Operation
PART II
Item 1. Legal Proceedings
Item 2. Exhibits and Reports
Signatures
2
<PAGE> 3
PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
PART I
ITEM 1. FINANCIAL STATEMENTS
Index to the Financial Statements for the Partnership:
<TABLE>
<S> <C>
Balance Sheets, June 30, 1997 and December 31, 1996 ............................... 4
Statements of Operations, For the Three and Six Months Ended June 30,
1997 and June 30, 1996 ..................................................... 5
Statements of Partnership Capital, For the Six Months Ended
June 30, 1997 and Year Ended December 31, 1996 ............................. 6
Statements of Cash Flows, For the Six Months Ended June 30,
1997 and June 30, 1996 ..................................................... 7
Footnotes to Financial Statements ................................................. 8
</TABLE>
3
<PAGE> 4
PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
BALANCE SHEETS
JUNE 30, 1997 AND DECEMBER 31, 1996
----------------
ASSETS
<TABLE>
<CAPTION>
(unaudited)
1997 1996
----------- -----------
<S> <C> <C>
Cash and equivalents $ 3,032,196 $ 2,121,545
Cash held in trust 5,144,273 5,834,268
Investments in distressed loan portfolios, net 8,220,126 9,091,186
Due from affiliate -- 136,022
Other assets 104,977 104,977
Organization costs, net 1,529 3,454
----------- -----------
Total assets $16,503,101 $17,291,452
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 11,862 $ 6,351
Due to affiliates, net 1,765,633 350,576
----------- -----------
Total liabilities 1,777,495 356,927
----------- -----------
Commitments and contingencies
Partners' capital 14,725,606 16,934,525
----------- -----------
Total liabilities and partners' capital $16,503,101 $17,291,452
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE> 5
PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS FOR THE SIX MONTHS
ENDED JUNE 30 ENDED JUNE 30
--------------------------- ---------------------------
1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Portfolio collections $ 671,596 $ 2,763,789 $ 1,417,226 $ 3,694,187
Less: portfolio basis recovery 647,997 2,630,185 1,391,732 3,547,336
----------- ----------- ----------- -----------
Net investment income 23,599 133,604 25,494 146,851
----------- ----------- ----------- -----------
Cost of operations:
Collection expense 130,582 71,437 167,889 113,937
Management fee expense 51,632 51,323 108,724 117,193
Professional fees 73,178 317,303 165,793 416,886
Amortization 918 1,007 1,925 2,014
General and administrative expense 10,903 7,677 63,800 10,089
----------- ----------- ----------- -----------
Total operating expenses 267,213 448,747 508,131 660,119
----------- ----------- ----------- -----------
Income (loss) from operations (243,614) (315,143) (482,637) (513,268)
Other income:
Interest 161,056 168,183 188,640 201,441
Other income 2,275 -- 9,993 11,551
----------- ----------- ----------- -----------
Net income (loss) $ (80,283) $ (146,960) $ (284,004) $ (300,276)
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE> 6
PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
STATEMENTS OF PARTNERS' CAPITAL
(DEFICIT) FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED) AND
YEAR ENDED DECEMBER 31, 1996
----------------
<TABLE>
<CAPTION>
General Limited
Partner Partners Total
------------- ------------- -------------
<S> <C> <C> <C>
Balance, December 31, 1995 $ (516,291) $ 19,815,741 $ 19,299,450
Redemption of partnership units -- (40,000) (40,000)
Distributions (159,334) (1,433,425) (1,592,759)
Net loss (73,217) (658,949) (732,166)
------------- ------------- -------------
Balance, December 31, 1996 (748,842) 17,683,367 16,934,525
Redemption of partnership units -- (15,000) (15,000)
Distributions (191,067) (1,718,848) (1,909,915)
Net income (28,400) (255,604) (284,004)
------------- ------------- -------------
Balance, June 30, 1997 $ (968,309) $ 15,693,915 $ 14,725,606
============= ============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 7
PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED) AND 1996
----------------
<TABLE>
<CAPTION>
1997 1996
------------ ------------
Cash flows from operating activities:
<S> <C> <C>
Net income (loss) $ (284,004) $ (300,276)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Amortization 1,925 2,014
Decrease (increase) in assets:
Other assets -- 219,153
Due from affiliates 136,022 (13,363)
Increase (decrease) in liabilities:
Accounts payable 5,511 (40,363)
Due to affiliates 1,415,057 323,969
------------ ------------
Net cash provided by (used in)
operating activities 1,274,511 191,134
------------ ------------
Cash flows provided by (used in) investing activities:
Recovery of portfolio basis 1,391,732 3,547,336
Receivable from West Capital -- 1,740,481
Cash held in trust 689,995 1,788,207
Purchase of investments in distressed loan portfolios (520,672) (473,733)
------------ ------------
Net cash provided by investing activities 1,561,055 6,602,291
------------ ------------
Cash flows provided by (used in) financing activities:
Redemption of limited partnership units (15,000) (20,000)
Distributions to partners (1,909,915) --
------------ ------------
Net cash used in financing activities (1,924,915) (20,000)
------------ ------------
Net (decrease) increase in cash 910,651 6,773,425
Cash at beginning of period 2,121,545 559,223
------------ ------------
Cash at end of period $ 3,032,196 $ 7,332,648
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE> 8
PERFORMANCE ASSET MANAGEMENT FUND IV, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
1. Organization and Description of Business
Performance Asset Management Fund IV, Ltd., A California Limited
Partnership ("Partnership"), was formed in October 1992, for the purpose
of acquiring investments in or direct ownership of distressed loan
portfolios from financial institutions and other sources. Interests in
the Partnership were sold in an intrastate offering to residents of
California pursuant to the provisions of Section 3(A) (11) of the
Securities Act of 1933; however, the Partnership did not begin its
primary operations until March 1993. The General Partner is Performance
Development, Inc., a California corporation ("General Partner").
Profits, losses, and cash distributions are allocated 90% to the limited
partners and 10% to the General Partner until such time as the limited
partners have received cash equal to 100% of their contributions to the
capital of the Partnership plus an amount equal to 6% of remaining
unpaid capital contributions which will accumulate until recovery by
those limited partners of these capital contributions. Thereafter,
Partnership profits, losses, and cash distributions will be allocated
70% these limited partners and 30% to the General Partner.
Cash and Equivalents
The Partnership defines cash equivalents as all highly liquid
investments with a maturity of three months or less when purchased. The
Partnership maintains its cash balances at one bank in accounts which,
at times, may exceed federally insured limits. The Partnership uses a
cash management system whereby idle cash balances are swept daily into a
master account and invested in high quality, short-term securities. The
General Partner believes that these cash balances are not subject to any
significant credit risk due to the nature of the investments and the
fact that the Partnership has not experienced any losses with cash and
equivalent investments.
8
<PAGE> 9
Cash Held in Trust
The General Partner anticipates that the Partnership and similar
California limited partnerships for which the General partner serves as
their general partner ("PAM Funds") may, in the future, be reorganized
and merged with and into one corporation. In an effort to accomplish
that reorganization and merger on terms and conditions consistent with
the intent of the General Partner, on December 12, 1995, the General
Partner, on behalf of the Partnership and the PAM Funds, and the State
of California Department of Corporations entered into an agreement
pursuant to the provisions of which the Performance Asset Management
Fund Trust ("Trust") was created. These funds are subject to the terms
of the Trust's agreement. The Trust was the recipient of a portion of
the funds resulting from a settlement of certain litigation between the
Partnership and its affiliates and West Capital Financial Services Corp.
("WCFSC") and its affiliates.
The General Partner and the Department of Corporations are currently in
disagreement with respect to certain allocations among the trust
beneficiaries made by the General Partner. The outcome of this
disagreement is anticipated to be resolved in the near future.
Investments in Distressed Loan Portfolios and Revenue Recognition
Investments in distressed loan portfolios are carried at the lower of
cost, market, or estimated net realizable value. Amounts collected are
treated as a reduction to the carrying basis of the related investments
on an individual portfolio basis. Accordingly, income is not recognized
until 100% recovery of the original cost of the investment in each
portfolio occurs. Estimated net realizable value represents the General
Partner's estimates, based on its present plans and intentions, of the
present value of future collections. Due to the distressed nature of
these investments, no interest is earned on outstanding balances, and
there is no assurance that the unpaid principal balances will ultimately
be collected. Any adjustments to the carrying value of the individual
portfolios are recorded in the results of operations.
Organization Costs, Net
Organization costs include legal and other professional fees incurred
related to the organization of the Partnership. These costs are
capitalized and amortized using the straight-line method over five
years. Accumulated amortization at June 30, 1997 and December 31, 1996
totaled $16,818 and $14,893, respectively.
Income Taxes
No provision for income taxes has been made in the financial statements,
except for the Partnership's minimum state franchise tax liability of
$800. All partners are taxed individually on their share of the
Partnership's earnings and losses.
9
<PAGE> 10
Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires the General Partner to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenue and
expenses during the reported period. Actual results could differ from
the estimate.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
The information contained in this report on Form 10-QSB, other than
historical facts, contains "forward-looking statements" (as such term is
defined with the meaning of the Private Securities Litigation Reform Act
of 1995) including, without limitation, statements as to the
Partnership's objective to grow through future portfolio acquisitions,
portfolio account sales, the Partnership's ability to realize operating
efficiencies in the integration of its acquisitions, trends in the
Partnership's future operating performance, and statements as to the
Partnership's or the General Partner's beliefs, expectations and
opinions. Forward looking statements may be identified by the use of
forward looking terminology, such as "may", "will", "expect",
"estimate", "anticipate", "probable", "possible", "should", "continue",
or similar terms, variations of those terms or the negative of those
terms. Forward-looking statements are subject to risks and uncertainties
and may be affected by various factors which may cause actual results to
differ materially from those in the forward-looking statements. In
addition to the factors discussed in this Report, certain risks,
uncertainties and other factors, including, without limitation, the risk
that the Partnership will not be able to realize operating efficiencies
in the integration of its acquisitions, risks associated with growth and
future acquisitions, fluctuations in quarterly operating results, and
the other risks detailed from time to time in the Partnership's filings
with the Securities and Exchange Commission, including the Partnership's
Annual Report on Form 10-KSB, dated March 31, 1997, can cause actual
results and developments to be materially different from those expressed
or implied by such forward-looking statements.
RESULTS OF OPERATIONS.
The Partnership recorded net investment income of $25,494 for the six
months ended June 30, 1997, an 83% decrease from $146,851 for the
comparable period in 1996. The decrease was primarily attributed to the
receipt of proceeds resulting from a settlement agreement with WCFSC in
1996. The settlement agreement terminated all servicing relations with
WCFSC and assigned and transferred certain distressed loan portfolios to
WCFSC in exchange for the payment of certain funds owed to the
Partnership and its affiliates. As a result of the settlement agreement,
five portfolios recovered amounts in excess of their investment bases
during the first half of 1996, compared to three portfolios for the
similar period in 1997. Approximately 2% of portfolio collections
received for the six months ended June 30, 1997 was reflected as
revenue, compared to 4% for the similar period in 1996.
10
<PAGE> 11
Net investment revenue of $25,494 for the six months ending June 30,
1997 is the direct result of portfolio collection proceeds from three
portfolios. The remainder of portfolio collections in this period
contributed to a 9% reduction of the book value of total investments in
distressed loan portfolios. The Partnership did acquire one portfolio
during the first half of 1997, which offset the reduction of net assets
as a result of portfolio collections recognized as portfolio basis
reductions. The Partnership maintains and holds one portfolio which
contributes 59% of net investment revenue and two other portfolios which
contribute the remaining net investment revenue during the six months
ended June 30, 1997. Collections for the months ended April 30, 1997,
May 31, 1997, and June 30, 1997, totaled $183,524, $241,347, and
$246,725, respectively.
The Partnership received proceeds from portfolio sales of $54,019, of
which approximately 99% were recorded as recoveries of investment bases
and recorded as portfolio collections for the month ended June 30, 1997.
No such proceeds were received for the comparable period ended June 30,
1996. The General Partner continues to believe that proceeds from both
collection proceeds and portfolio account sales will increase in
subsequent periods and estimates that proceeds from portfolio account
sales should exceed those amounts recorded in the fiscal year ended
1996.
Total operating expenses of the Partnership decreased 23% to $508,131
for the six months ended June 30, 1997, from $660,119 for the comparable
period in 1996. The decrease is due primarily to the reduction of
professional fees of 60% to $165,793 for the six months ended June 30,
1997, from $416,886 for the similar period in 1996, attributed to
unusually high legal fees in 1996 associated with the settlement
agreement with WCFSC. Collection expenses increased 47%, to $167,889 for
the six months ended June 30, 1997 from $113,937 for the same period in
1996, due to additional skip trace processing on Partnership debtor
accounts conducted to identify and contact additional collection
accounts. These procedures are necessary to increase the available
active collector accounts in acquired portfolios which eventually
contribute to increased collection proceeds. The Partnership also
realized a reduction in management fees by 7% to $108,724 for the six
months ended June 30, 1997, which was attributed to the reduction of
investments in distressed loan portfolios and net assets under
management. Operating expenses as a percentage of portfolio collections
totaled approximately 4% for the six months ended June 30, 1997 as
compared to 2% for the comparable period in 1996.
Total operating expenses of the Partnership increased 10% to $267,213
for the second quarter of 1997 from $240,918 for the first quarter of
1997. The increase is primarily attributed to the significant increase
in collection expenses caused by certain mailing expenses and skip trace
processing associated with the purchase and servicing of new portfolios.
Management fees decreased 10% for the quarter ended June 30, 1997 to
$51,632 from $57,092 due to the continued reduction of net assets under
management as a result of additional portfolio basis recoveries recorded
in the first quarter of 1997. Professional fees decreased 21% to
$73,178, from $92,615 due to a reduction of legal fees associated with
account and collection settlements, as well as the WCFSC settlement.
11
<PAGE> 12
Total operating expenses of the Partnership as a percentage of portfolio
collections increased to 36% for the six months ended June 30 ,1997 from
18% in the comparable period in 1996. This increase relates to unusually
high collection proceeds received as a result of the settlement
agreement with WCFSC and recorded in the six months ended June 30, 1996.
Comparatively, operating expenses as a percentage of portfolio
collections increased to 40% for the three months ended June 30, 1997,
from 32% from the previous quarter. This increase is due to less than
expected collections in the second quarter.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES.
The Partnership's total assets decreased approximately 5% to $16,503,101
as of June 30, 1997, from $17,291,452 at December 31, 1996. The decrease
was primarily attributed to portfolio collection proceeds of $1,417,226,
of which 98% or $1,391,732 were recorded as a reduction of investment
portfolio assets. The majority of these collections were ultimately
distributed to the limited partners during the quarter. The decrease in
cash held in trust (by the Trust) of $689,995 was partially offset by
interest income of $136,417 earned by the Trust during the second
quarter. The decrease of $136,022 in due from affiliates is primarily
the result of payment of prior period collections.
The increase of $820,309 in due to affiliates during the second quarter
of 1997 was due primarily to accrued and unpaid collection expenses,
accrued and unpaid management fees, and declared but unpaid
distributions to the General Partner. The General Partner also advanced
approximately $633,723 to the Partnership in anticipation of acquiring
future portfolios.
The Partnership acquired one new distressed portfolio asset in the
second quarter of 1997 from a third party financial institution which
specializes in credit card origination. The General Partner anticipates
that the Partnership will acquire additional portfolios in the near
future. Future acquisitions will depend on the asset market, which
continues to grow in size and diversity. The Partnership believes that
the Partnership will continue to acquire low-priced distressed
portfolios; however, the General Partner will continue to evaluate
assets with different pricing and debtor account structure to determine
whether such portfolios can generate significant immediate cash flows
and provide additional liquidity to the Partnership.
12
<PAGE> 13
The Partnership has made no future commitments with credit card
originators and other financial institutions to acquire portfolio
assets. The General Partner plans to use its present contacts and
relationships to identify and acquire additional assets at optimal
prices, and believes that it will have no difficulties in identifying
and acquiring such assets. The General Partner anticipates that the
Partnership will suspend distributions to its partners in the third
quarter of 1997 in anticipation of the contemplated reorganization of
the Partnership with other affiliated partnerships and Performance
Capital Management ("PCM"),a California corporation and an affiliate of
the General Partner. The General Partner also believes current cash
reserves and future portfolio collection proceeds will be sufficient to
acquire additional portfolio assets in the next twelve months. However,
the General Partner will continuously monitor the Partnership's
liquidity and evaluate whether additional capital will be necessary for
future growth.
IMPACT OF ADDITIONAL PARTNERSHIP ACQUISITIONS AND RESOURCES ON
OPERATIONS.
The General Partner anticipates that additional portfolio acquisitions
and continued expansion will improve the Partnership's liquidity,
profitability and financial condition, which will result in increased
portfolio collections and sales. The General Partner believes that PCM,
which serves as the servicer of the Partnership's portfolios of
indebtedness, must continue to increase that amount of its collection
representatives and human resources in order to supplement such growth
to the Partnership. The General Partner, in conjunction with PCM and
other affiliated companies and partnerships, is seeking to lease
approximately 57,000 square feet of office space in which PCM and the
Partnership plan to move their facilities. The General Partner believes
that this move provides the Partnership with the adequate operating
facilities for the future growth of the Partnership through the end of
1999.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
No additional proceedings have occurred since May 15, 1997, the date of
the latest report provided. In addition, no material developments are
noted with respect to those matters described in the latest report dated
May 15, 1997. Reference is made to the Partnership's Form 10-KSB dated
March 31, 1997, in which such legal proceedings were reported in Part I,
Item 3, "Legal Proceedings". The Partnership, by this reference, makes
that disclosure a part of this Form 10-QSB.
13
<PAGE> 14
ITEM 2. EXHIBITS AND REPORTS.
(a) Exhibits
<TABLE>
<CAPTION>
Exhibit Number Exhibit
-------------- -------
<S> <C>
1 Certificate of Limited Partnership Form LP-1
(Charter Document) *
2 Agreement of Limited Partnership (Instrument
defining the rights of Security Holders) **
27 Financial Data Schedule
</TABLE>
* Reference is made to the Partnership's Form 10-KSB, dated March 31,
1997, in which that Certificate of Limited Partnership was included as
an exhibit. The Partnership, by this reference, makes that Certificate
of Limited Partnership a part of this Form 10-QSB.
** Reference is made to the Partnership's Form 10-KSB, dated March 31,
1997, in which that Agreement of Limited Partnership was included as an
exhibit. The Partnership, by this reference, makes that Agreement of
Limited Partnership a part of this Form 10-QSB.
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the Partnership
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Dated: August 18, 1997 Performance Asset Management Fund IV, Ltd.,
A California Limited Partnership
(Registrant)
By: /s/ VINCENT E. GALEWICK
---------------------------------
Vincent E. Galewick
President of the General Partner,
Performance Development, Inc.
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
STATEMENT OF FINANCIAL CONDITION AS OF JUNE 30, 1997 AND STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AS PROVIDED ON FORM 10-QSB FOR THE 2ND
QUARTER 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FORM 10-QSB
FOR THE QUARTER ENDED JUNE 30, 1997.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> APR-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 8,176,469
<SECURITIES> 0
<RECEIVABLES> 104,977
<ALLOWANCES> 0
<INVENTORY> 8,220,126
<CURRENT-ASSETS> 1,529
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 16,503,101
<CURRENT-LIABILITIES> 1,777,495
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 14,725,606
<TOTAL-LIABILITY-AND-EQUITY> 16,503,101
<SALES> 0
<TOTAL-REVENUES> 161,056
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 267,213
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (80,283)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (80,283)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
