U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
/X/ Quarterly report under Section 13 or 15(d) of the Securities and
Exchange Act of 1934 for the quarterly period ended April 22, 1997.
/ / Transition report under Section 13 or 15(d) of the Securities and
Exchange Act of 1934 for the transition period from _____ to_______.
COMMISSION FILE NUMBER 333-5488-D
STOICO RESTAURANT GROUP, INC.
(Exact name of small business issuer as specified in its charter)
Delaware 48-1177558
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
3151 North Rock Road, Wichita, Kansas 67226
(Address of principal executive office) (Zip code)
(316) 636-5776
(Issuer's telephone number, including area code)
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 reports), and (2)
has been subject to such filing requirements for past 90 days. Yes /X/ No /_/.
At April 22, 1997, 5,708,966 shares of common stock, $0.01 per share
par value were outstanding.
Transitional Small Business Disclosure Format (check one): Yes /X/ No / /
<PAGE>
STOICO RESTAURANT GROUP, INC.
INDEX TO 10-QSB FOR THE QUARTERLY
PERIOD ENDED APRIL 22, 1997
PAGE
PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
Stoico Restaurant Group, Inc. and Subsidiaries Consolidated
Balance Sheets - April 22, 1997 and December 31, 1996 3
Stoico Restaurant Group, Inc. and Subsidiaries Consolidated
Statements of Operations - Sixteen Week Period ended
April 22, 1997 and April 16, 1996, respectively. 4
Stoico Restaurant Group, Inc. and Subsidiaries Consolidated
Statements of Cash Flows - Sixteen Week Period ended
April 22, 1997 and April 16, 1996, respectively. 5
Notes to Consolidated Financial Statements - April 22, 1997 6
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION 8
PART II: OTHER INFORMATION
ITEM 1: LEGAL PROCEEDINGS 13
ITEM 2: CHANGES IN SECURITIES 13
ITEM 3: DEFAULTS UPON SENIOR SECURITIES 13
ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF
SECURITY HOLDERS 13
ITEM 5: OTHER INFORMATION 13
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K 14
SIGNATURES 15
2
<PAGE>
STOICO RESTAURANT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
APRIL 22, 1997 AND DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
APRIL 22, DECEMBER 31,
ASSETS 1997 1996
------
---------------------- --------------------------
Current assets:
Cash and cash equivalents $ 307,838 $ 2,271,550
Receivables 105,834 59,351
Inventories 198,094 177,909
Prepaid expenses and other current assets 248,268 253,216
---------------------- --------------------------
Total current assets 860,034 2,762,026
Property and equipment 5,597,682 4,521,779
Goodwill, net of amortization of $100,769 and $76,655,
respectively 965,299 989,413
Notes receivable:
Former Officer 66,873 225,000
Other, net of related deferred income of
$201,560 28,333 22,077
Other assets 50,518 51,225
---------------------- --------------------------
Total assets $ 7,568,739 $ 8,571,520
====================== ==========================
LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------
Current liabilities:
Accounts payable $ 1,631,360 $ 1,963,764
Accrued expenses 455,227 300,282
Current portion of long-term debt 150,432 190,191
Note Payable - officer 90,000 -
Deferred revenue 90,000 195,000
---------------------- --------------------------
Total current liabilities 2,417,019 2,649,237
Long-term debt, less current portion 39,869 43,580
Long-term lease obligation on closed store 116,951 116,951
Deferred revenue 35,000 95,000
---------------------- --------------------------
Total liabilities 2,608,839 2,904,768
Stockholder's equity:
Preferred stock, $.01 par value, 5,000,000 shares
authorized, -0- shares issued and outstanding - -
Common stock, $.01 par value, 20,000,000 shares
authorized, 5,708,966 issued and outstanding 57,090 57,090
Additional paid-in capital 14,285,754 14,285,754
Accumulated deficit (9,382,944) (8,676,092)
---------------------- --------------------------
Total stockholders' equity 4,959,900 5,666,752
---------------------- --------------------------
Commitments - -
---------------------- --------------------------
Total liabilities and stockholders' equity $7,568,739 $ 8,571,520
====================== ==========================
</TABLE>
3
<PAGE>
STOICO RESTAURANT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
SIXTEEN WEEK
PERIOD ENDED
-------------------------------------------------------------------
APRIL 22, APRIL 16,
1997 1996
<S> <C> <C>
----------------------------- --------------------------------
Revenues:
Sales $ 2,997,488 $ 1,992,440
Royalty income 29,968 44,868
Franchise Fees 45,000 -
----------------------------- --------------------------------
Total revenue 3,072,456 2,037,308
----------------------------- --------------------------------
Cost of sales:
Food and paper 876,533 601,975
Wages and benefits 1,119,402 626,016
----------------------------- --------------------------------
Total cost of sales 1,995,935 1,227,991
----------------------------- --------------------------------
Gross profit 1,076,521 809,317
Restaurant operating expenses 1,032,494 584,732
Pre-opening expenses 115,837 -
Administrative expenses 649,630 514,535
----------------------------- --------------------------------
Operating loss (721,440) (289,950)
Other income (expense):
Miscellaneous other income 2,952 33,004
Interest income 21,158 13,897
Interest expense (9,522) (169,652)
----------------------------- --------------------------------
Loss before income taxes (706,852) (412,701)
----------------------------- --------------------------------
Income taxes - -
----------------------------- --------------------------------
Net loss $ (706,852) $ (412,701)
============================= ================================
Loss per common share $ (0.12) $ (0.10)
============================= ================================
</TABLE>
4
<PAGE>
STOICO RESTAURANT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
SIXTEEN WEEK
PERIOD ENDED
-----------------------------------------------------
APRIL 22, APRIL 16,
1997 1996
<S> <C> <C>
--------------------- -------------------------
Cash from operating activities:
Net loss $ (706,852) $ (412,701)
Adjustments to reconcile net loss to net cash used in
operating activities
Depreciation and amortization 300,015 136,632
Income attributable to Area Development
fee forfeiture (45,000) -
Increase in receivables (46,483) (69,501)
(Increase) decrease in inventories (20,185) 12,882
(Decrease) increase in notes receivable 151,871 (158,127)
Decrease in prepaid expenses and other
current assets 4,948 14,304
Decrease in other assets 707 1,448
Decrease in accounts payable (332,404) (337,821)
Increase (decrease) in accrued expenses 154,945 (131,377)
Increase in deferred revenue - 262,083
--------------------- -------------------------
Net cash used in operating
activities (538,438) (682,178)
--------------------- -------------------------
Cash flows from investing activities:
Purchase of property, plant and equipment (1,351,804) (120,433)
Proceeds from sale of restaurant - 250,000
--------------------- -------------------------
Net cash (used in) provided by
investing activities (1,351,804) 129,567
--------------------- -------------------------
Cash flows from financing activities:
Principal payments on long-term debt (73,470) (9,940)
Proceeds from issuance of common stock - 257,599
--------------------- -------------------------
Net cash (used in) provided by
financing activities (73,470) 247,659
--------------------- -------------------------
Net decrease in cash and cash (1,963,712) (304,952)
equivalents
Cash and cash equivalents at beginning of period 2,271,550 784,171
--------------------- -------------------------
Cash and cash equivalents at end of period $ 307,838 $ 479,219
===================== =========================
5
</TABLE>
<PAGE>
STOICO RESTAURANT GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(1) BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in
accordance with the instructions to Form 10-Q and, therefore, do not include all
information and footnotes necessary for a fair presentation of financial
position, results of operations and cash flows in conformity with generally
accepted accounting principles. The information furnished, in the opinion of
management, reflects all adjustments, which consist of normal recurring
adjustments, necessary to present fairly the results of operations of Stoico
Restaurant Group, Inc. and subsidiaries (the "Company") for the sixteen week
period ended April 22, 1997 and April 16, 1996. The consolidated financial
statements should be read in conjunction with the consolidated financial
statements and notes thereto, together with management's discussion and analysis
of financial condition and results of operations, contained in the Company's
Annual Report dated March 27, 1997.
(2) INCOME (LOSS) PER SHARE
Loss per share is determined based on the weighted average number of
common and common equivalent shares outstanding during each period. The weighted
average number of common and common equivalent shares outstanding for the
sixteen weeks ended April 22, 1997 and April 16, 1996 were 5,730,700 and
4,286,744, respectively.
(3) STATEMENTS OF CASH FLOW
Noncash financing and investing activities consist of the following for
the period ended April 22, 1997 and April 16, 1996 respectively:
April 22, 1997
o Deferred revenue reclassified to note payable to an officer of $120,000.
April 16, 1996
o Property and equipment sold in exchange for note receivable, net of related
deferred income of $7,875
(4) RELATED PARTY TRANSACTIONS
On March 11, 1996, the Company made a loan to Timothy J. Jeffrey, the
former President, Chief Executive Officer and a director of the Company in the
amount of $158,127. On March 31, 1997 that loan was paid off in full to the
Company.
6
<PAGE>
In February 1997 the Company's board of directors determined that
$120,000 advanced to the Company by one of its officers should be refunded.
Accordingly, this amount was reclassified from deferred revenue to Note Payable
- - officer, of which $90,000 is still due as of April 22, 1997.
7
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION
COMPANY-OWNED RESTAURANTS OPENED AT END OF PERIOD
SIXTEEN WEEKS ENDED
April 22, April 16,
1997 1996
------------- ------------
Spaghetti Jack's 11 4
Sub & Stuff 23 15
RESULTS OF OPERATIONS
The following table sets forth information derived from the Company's
statement of operations expressed as a percentage of revenues:
SIXTEEN WEEKS ENDED
-------------------------------------------
APRIL 22, APRIL 16,
1997 1996
--------------------- --------------------
Revenues........................ 100.00% 100.00%
Cost of sales................... 64.96 60.28
Restaurant operating expenses... 33.60 28.70
Pre-opening expenses............ 3.77 0.00
Administrative expenses......... 21.14 25.26
Other income (expense).......... 0.47 (6.03)
Income taxes.................... 0.00 0.00
Net loss........................ (23.01) (20.26)
8
<PAGE>
SIXTEEN WEEK PERIOD ENDED APRIL 22, 1997 AND APRIL 16, 1996
REVENUES
Revenues in first quarter ended April 22, 1997 increased 50.4% over
first quarter ended April 16, 1996, primarily for the reasons discussed below.
Spaghetti Jack's restaurant sales increased 97.3% in 1997. The increase in sales
is the result of opening three company owned restaurants in 1997 and four
company owned restaurants during the last quarter of 1996. Comparable restaurant
sales (defined as sales from restaurants open during both fiscal periods for the
entire period) for Spaghetti Jack's decreased 33.0% in the aggregate. Sub &
Stuff restaurant sales increased 30.3% in 1997. The increase in sales is the
result of opening four company owned restaurants in 1997 and four company owned
restaurants during the last quarter of 1996. Comparable restaurant sales for Sub
& Stuff decreased 2.0% in the aggregate. The Spaghetti Jack's decreases in
comparable restaurant sales are due to the entrance in the Wichita market of a
direct competitor. In addition, the marketing in 1996 featured a new product
introduction promoted with television versus 1997 which featured existing
product line promoted with radio. Spaghetti Jack's royalty income decreased
33.2% in 1997 over 1996. This is due to the closing of one franchise restaurant
in last quarter 1996 and similar comparable sales declines in franchise
restaurants as stated above. Sub & Stuff royalty income increased 109.6% in 1997
over 1996. One Spaghetti Jack's franchise Area Development Agreement defaulted
resulting in income recognition of $45,000.
COST OF SALES
Cost of sales increased 62.5%, primarily as a result of opening seven
company owned restaurants in 1997 and 8 company owned restaurants during the
last quarter of 1996. Spaghetti Jack's food and paper cost increased by 89.8% in
1997 over 1996. This increase is attributed to the opening of new company owned
restaurants as stated above. As a percentage of Spaghetti Jack's restaurant
sales, the cost of food and paper decreased to 28.2% in 1997 from 29.3% in 1996.
Sub & Stuff's food and paper cost increased by 27.5% in 1997 over 1996. This
increase is attributed to the opening of new company restaurants as stated
above. As a percentage of Sub & Stuff's restaurant sales, the cost of food and
paper decreased to 29.9% in 1997 from 30.6% in 1996. The decreases in food and
paper as a percentage of restaurant sales are a result of operational
efficiencies. Spaghetti Jack's cost of wages and benefits increased by 187.4% in
1997 over 1996. This increase is attributed to the opening of new company
restaurants as stated above. As a percentage of Spaghetti Jack's restaurant
sales, the cost of wages and benefits increased to 39.4% in 1997 from 27.0% in
1996. The increases in wages and benefits as a percentage of restaurant sales
are a result of the fixed component of management salaries and crew wages
compared to the relatively low volume of the new restaurants, the labor
efficiency of the new restaurants based on their productivity learning curve,
the higher cost of workers compensation insurance in the state of Oklahoma, as
well as some increased labor for drive-thrus utilized in the new store
development. Sub & Stuff's cost of wages
9
<PAGE>
and benefits increased by 40.9% in 1997 over 1996. This increase is attributed
to the opening of new company restaurants as stated above. As a percentage of
Sub & Stuff's restaurant sales, the cost of wages and benefits increased to
36.0% in 1997 from 33.3% in 1996. The increases in wages and benefits as a
percentage of restaurant sales are a result of the fixed component of management
salaries and crew wages compared to the relatively low volume of the new
restaurants.
RESTAURANT OPERATING EXPENSE
Overall restaurant operating expenses increased 76.6%, primarily as a
result of opening seven company owned restaurants in 1997 and eight company
owned restaurants during the last quarter of 1996. Spaghetti Jack's operating
expenses increased by 151.4% in 1997 over 1996. This increase in attributed to
the opening of new company restaurants as stated above. As a percentage of
Spaghetti Jack's restaurant sales, operating expenses increased to 40.5% in 1997
from 31.8% in 1996. The increase in operating expenses as a percentage of
restaurant sales are a result of the fixed component of operating expenses,
specifically the rent costs, an increase in depreciation related to new
development, and the cost of utilities, compared to the relatively low volume of
the new restaurants, and a 1.0% increase in the advertising accrual for company
owned Spaghetti Jack's. Sub & Stuff's operating expenses increased by 40.4% in
1997 over 1996. This increase is attributed to the opening of new company
restaurants as stated above. As a percentage of Sub & Stuff's restaurant sales,
operating expenses increased to 30.5% in 1997 from 27.5% in 1996. The increase
in operating expenses as a percentage of restaurant sales are a result of the
fixed component of operating expenses compared to the relatively low volume of
the new restaurants partially offset by a 1.0% reduction in the advertising
accrual.
PRE-OPENING EXPENSES
Pre-opening expenses are those costs associated with the opening of a
company restaurant. The expenses consist principally of non-recurring costs such
as employee recruiting and training, supplies and miscellaneous expenditures.
During the first quarter ended April 22, 1997, expenses totaled $115,837 as
compared to $0 in 1996. The company opened three Spaghetti Jack's and four Sub &
Stuff restaurants during the first quarter ended April 22, 1997 and did not
experience any pre-opening expenses in the comparable quarter in 1996. Costs are
expensed as incurred.
ADMINISTRATIVE EXPENSES
Administrative expenses increased by 26.3% for the sixteen week period
ended April 22, 1997, compared to the sixteen week period ended April 16, 1996.
This increase is attributed to the increased number of staff positions that
included a Vice President of Real Estate and Construction, a project
coordinator, and the hiring of three additional restaurant level supervisors due
to development.
10
<PAGE>
OTHER INCOME AND EXPENSE
The increase in interest income between the periods is primarily due to
the changes in the level of cash available for investment. Interest expense
decreased by $160,130 to $9,522 for the sixteen week period ended April 22, 1997
compared to $169,652 for the sixteen week period ended April 16, 1996. This
decrease in interest expense is the result of the repayment of debt with
proceeds of the Company's initial public offering completed December 18, 1996.
INCOME TAXES
The Company continues to operate unprofitably and to accumulate net
operating loss carryforwards and, as a result, does not have taxable income.
LIQUIDITY AND CAPITAL RESOURCES
The Company's restaurant operations do not have significant receivables
or inventory and receive trade credit based upon negotiated terms in purchasing
food and supplies. As of April 22, 1997, the Company had a working capital
deficiency of $1,443,583 as compared to working capital of $112,789 at April 16,
1996. The decrease in working capital of $1,556,372 is primarily due to the use
of cash and cash equivalents in opening new restaurants and accumulated
operating losses.
During the sixteen week period ended April 16, 1997 the Company's cash
deficit from operations decreased by $143,740 as compared to the sixteen weeks
ended April 16, 1996. This decrease in cash deficit is primarily due to the
reduction of accounts payable.
During the sixteen week period ended April 22, 1997 the Company had a
cash deficit from investing activities of $1,351,804 as compared to proceeds of
$129,567 for 1996. The proceeds were realized by the sale of one company-owned
Spaghetti Jack's offset by the opening of one company-owned Sub & Stuff. The
increase of the deficit was primarily due to the capital expenditures related to
the opening of seven company-owned restaurants.
Capital expenditures during the sixteen week period ended April 22,
1997 totaled $1,351,804 as compared to expenditures of $120,433 for the related
period in 1996. These expenditures are primarily associated with the opening of
seven Company-owned restaurants. During 1997, four Sub & Stuff and three
Spaghetti Jack's restaurants were opened. During the first quarter of 1996, the
Company opened one Company-owned Sub & Stuff restaurant. The amount of the
Company's cash requirements for capital expenditures depends in part on the
number of new restaurants opened and the development costs associated with such
restaurants.
11
<PAGE>
During the sixteen week period ended April 22, 1997 the Company had
negative cash flow from financing activities of $73,470 as compared to cash
flows of $247,659 for the same period in 1996. This decrease in cash flows is
primarily due to the Company's sale of common stock in the amount of $257,599
during 1996 compounded by principal payments on long-term debt during 1997.
12
<PAGE>
PART II
OTHER INFORMATION
ITEM 1: LEGAL PROCEEDINGS
None
ITEM 2: CHANGES IN SECURITIES
None
ITEM 3: DEFAULTS UPON SENIOR SECURITIES
Not applicable
ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At the Annual Meeting of Stockholders of Stoico Restaurant Group, Inc. held
on May 5, 1997, the following numbers of votes were cast for the matters
indicated:
1. Election of James M. Ash as a Class II Director to serve for
a term of three (3) years.
Broker
FOR AGAINST WITHHOLD NON-VOTE
4,618,030 110 11,318 -0-
The following directors' term of office continued after the meeting:
Louis Stoico, Jr., Craig W. Barton and John T. Mosley (Mr. Barton resigned from
the Board on June 1, 1997).
2. Ratification of the Appointment of Allen, Gibbs & Houlik, L.C.,
certified public accountants, as Independent Auditors for the Company for the
fiscal year ending December 30, 1997.
ABSTAIN
FOR AGAINST WITHHOLD NON-VOTE
4,618,060 230 11,168 -0-
13
<PAGE>
ITEM 5: OTHER INFORMATION
None
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS REQUIRED TO BE FILED BY ITEM 601 OF REGULATION S-B
3(a)* Articles of Incorporation
3(b)* Bylaws
11 Statement re: computation of per share earnings
27 Financial Data Schedule
* Incorporated by reference to such numbered exhibits filed as part of
Registration Statement No. 333-5488-D filed with the Commission on August 29,
1996.
(b) REPORTS ON FORM 8-K
One Form 8-K was filed on January 2, 1997 and the other
was filed on April 7, 1997.
14
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereto duly authorized.
DATED: June 6, 1997 STOICO RESTAURANT GROUP, INC.
(Registrant)
/s/ Louis Stoico, Jr.
______________________________________
Louis Stoico, Jr.
Chairman of the Board and President
/s/ Cathy K. Martsolf
______________________________________
Cathy K. Martsolf
Senior Vice President of Administration
and principal accounting officer
15
<PAGE>
EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION
3(a)* Articles of Incorporation
3(b)* Bylaws
11 Statement re: computation of per share earnings
27 Financial Data Schedule
* Incorporated by reference to such numbered exhibits filed as part of
Registration Statement No. 333-5488-D filed with the Commission on August 29,
1996.
16
<PAGE>
EXHIBIT 11
STOICO RESTAURANT GROUP, INC.
COMPUTATION OF EARNINGS PER SHARE
<TABLE>
<CAPTION>
SIXTEEN WEEKS ENDED
---------------------------------------------------
APRIL 22, APRIL 16,
1997 1996
-------- ---------
<S> <C> <C>
Weighted average common shares outstanding 5,708,966 4,217,000
Effect of common stock issued or common stock
options granted during the twelve-month
period prior to the initial public offering:
Common stock issued - 48,010
Common stock options granted 21,734 21,734
----------------- ------------------
Total weighted average of common and
common equivalent shares 5,730,700 4,286,744
----------------- ------------------
Net loss (706,852) (412,701)
Loss per share (0.12) (.10)
----------------- ------------------
17
</TABLE>
<PAGE>
STOICO RESTAURANT GROUP, INC.
FINANCIAL DATA SCHEDULE
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENT OF STOICO RESTAURANT GROUP, INC. AS OF October
1, 1996, AND FOR THE THREE MONTHS THEN ENDED, AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0001022076
<NAME> STOICO RESTAURANT GROUP, INC.
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> Dec-30-1997
<PERIOD-START> Jan-01-1997
<PERIOD-END> Apr-22-1997
<EXCHANGE-RATE> 1
<CASH> 307,838
<SECURITIES> 0
<RECEIVABLES> 105,834
<ALLOWANCES> 0
<INVENTORY> 198,094
<CURRENT-ASSETS> 860,034
<PP&E> 7,803,667
<DEPRECIATION> 2,205,985
<TOTAL-ASSETS> 7,568,739
<CURRENT-LIABILITIES> 2,417,019
<BONDS> 0
0
0
<COMMON> 57,090
<OTHER-SE> 4,902,810
<TOTAL-LIABILITY-AND-EQUITY> 7,568,739
<SALES> 2,997,488
<TOTAL-REVENUES> 3,072,456
<CGS> 1,995,935
<TOTAL-COSTS> 3,793,896
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 9,522
<INCOME-PRETAX> (706,852)
<INCOME-TAX> 0
<INCOME-CONTINUING> (706,852)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (706,852)
<EPS-PRIMARY> (0.12)
<EPS-DILUTED> 0.00
</TABLE>
