<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------
FORM 10-QSB/A
(mark one)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended SEPTEMBER 30, 1999
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from _________ to __________
Commission file number 0-26611
------------------
ENDLESS YOUTH PRODUCTS, INC.
(Exact name of registrant as specified in its charter)
NEVADA 93-215736
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3395 South Jones Blvd., #208
Las Vegas, Nevada 89146
(Address of principal executive offices)
(702) 248-1005
(Issuer's telephone number)
------------------
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: Common Stock: 3,504,692 shares as of
September 30, 1999
<PAGE>
PART I--FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ENDLESS YOUTH PRODUCTS, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, June 30,
1999 1999
---- ----
ASSETS
<S> <C> <C>
CURRENT ASSETS
Cash $ 268,528 $ 355,434
Prepaid advertising (Notes 1 & 2) 0
------------------------ ------------------------
TOTAL CURRENT ASSETS 268,528 355,434
Property and Equipment
net of accumulated depreciation (Notes 1 & 3) 7,409 8,510
------------------------ ------------------------
TOTAL ASSETS $ 275,937 $ 363,944
------------------------ ------------------------
------------------------ ------------------------
LIABILITIES AND SHAREHOLDERS'
(DEFICIT) EQUITY
CURRENT LIABILITIES
Accounts payable $ 184,777 $ 236,528
Deferred Revenue (Note 5) 212,500 283,333
Advances from shareholders (Note 6) 98,999 75,388
------------------------ ------------------------
TOTAL LIABILITIES 496,276 595,249
SHAREHOLDERS' DEFICIT
Common stock, $.001 par value
Authorized 4,000,000 shares; issued
and outstanding 3,295,708
at Sept. 30, 1999 and
June 30, 1999, respectively (Note 7) 3,295 3,295
Additional paid-in capital 1,541,280 1,541,280
Retained deficit (1,764,914) (1,775,880)
------------------------ ------------------------
Total shareholders' Deficit (220,339) (231,305)
------------------------ ------------------------
TOTAL LIABILITIES AND
SHAREHOLDER'S DEFICIT EQUITY $ 275,937 $ 363,944
------------------------ ------------------------
------------------------ ------------------------
</TABLE>
See accompanying notes to financial statements
2
<PAGE>
ENDLESS YOUTH PRODUCTS, INC.
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the three months ended September 30,
1999 1998
------------------------ ------------------------
<S> <C> <C>
Gross Receipts $ 71,275 $ 96,666
Less: Returns and allowances - -
------------------------ ------------------------
Net Sales 71,275 96,666
Cost of Sales - -
------------------------ ------------------------
Gross Profit 71,275 96,666
Selling, General and Administrative
Expenses 190,309 279,164
------------------------ ------------------------
Income (Loss) from Operations (119,034) (182,498)
Other Income and (Expenses)
Other Income 130,000 -
Interest Expense - -
------------------------ ------------------------
Income (Loss) before income taxes 10,966 (182,498)
Provision for income taxes - (Note 4) - -
------------------------ ------------------------
Net income (Loss) $ 10,966 $ (182,498)
------------------------ ------------------------
------------------------ ------------------------
Income (Loss) per share amounts:
Basic:
Net income (loss) $ 0.00 $ (0.08)
Diluted:
Net income (loss) $ 0.00 $ (0.07)
Weighted average common and
common equivalent shares:
Basic 3,295,708 2,243,444
------------------------ ------------------------
------------------------ ------------------------
Diluted 3,504,692 2,451,319
------------------------ ------------------------
------------------------ ------------------------
</TABLE>
See accompanying notes to financial statements
3
<PAGE>
ENDLESS YOUTH PRODUCTS, INC.
STATEMENTS OF CASH FLOW
<TABLE>
<CAPTION>
For the three months ended Sept. 30,
CASH FLOWS FROM OPERATING ACTIVITIES: 1999 1998
---- ----
<S> <C> <C>
NET INCOME (LOSS) $ 10,966 $ (182,498)
Adjustments to reconcile net income to net cash
provided by operating activites:
Depreciation & Amortization 1,100 4,150
Increase in Poduct Development Costs - (10,463)
Decrease in prepaid advertising - 67,282
Increase (decrease) in deferred revenue (70,833) -
Increase (decrease) in accounts payable (51,750) 45,501
---------------------- ----------------------
NET CASH USED IN OPERATING ACTIVITIES (110,517) (76,028)
---------------------- ----------------------
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant, and equipment - -
---------------------- ----------------------
NET CASH PROVIDED BY INVESTING ACTIVITIES - -
---------------------- ----------------------
CASH FLOW FROM FINANCING ACTIVITES
Proceeds from issuance of common stock - 126,050
Advances from (Repayments to) shareholders 23,611 (61,613)
---------------------- ----------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 23,611 64,437
---------------------- ----------------------
NET CHANGE IN CASH (86,906) (11,591)
CASH AT BEGINNING OF PERIOD 355,434 471
---------------------- ----------------------
CASH AT END OF PERIOD $ 268,528 $ (11,120)
---------------------- ----------------------
---------------------- ----------------------
Interest expense paid during the period was: - -
</TABLE>
See accompanying notes to financial statements
4
<PAGE>
ENDLESS YOUTH PRODUCTS, INC.
STATEMENTS OF SHAREHOLDERS EQUITY
<TABLE>
<CAPTION>
Additional Accumu- Net
Common Stock paid in lated Shareholders'
Shares Amount Capital Deficit Equity
---------------- ------------- ----------------- ------------------ ----------------
<S> <C> <C> <C> <C> <C>
Balance at June 30, 1999 3,295,708 $ 3,295 $ 1,541,280 $ (1,775,880) $ (231,305)
Net Income for Period 10,966 10,966
---------------- ------------- ----------------- ------------------ ----------------
Balance at Sept. 30, 1999 3,295,708 $ 3,295 $ 1,541,280 $ (1,764,914) $ (220,339)
---------------- ------------- ----------------- ------------------ ----------------
---------------- ------------- ----------------- ------------------ ----------------
</TABLE>
See accompanying notes to financial statements
5
<PAGE>
ENDLESS YOUTH PRODUCTS, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1999 AND JUNE 30, 1999
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
THE COMPANY
Endless Youth Products, Inc., (the Company) incorporated July of 1996 in the
State of Nevada. The Company engages in the business of developing, marketing
and distributing proprietary vitamins, nutritional, skin care, personal care,
and other anti-aging products under the "Endless Youth" trade name. The Company
was in the development stage through June 30, 1998. The year ending June 30,
1999 is the first year during which it is considered an operating company.
CASH EQUIVALENTS
The Company considers all highly liquid certificates of deposit with an original
maturity of three months or less to be cash equivalents.
DEPRECIATION AND AMORTIZATION
Depreciation of property and equipment is computed using the straight-line
method based on estimated useful lives ranging as follows:
<TABLE>
<CAPTION>
<S> <C>
Furniture and Fixtures 7 years
Computer Equipment 5 years
</TABLE>
PREPAID ADVERTISING COST
Production costs related to the Company's direct response advertising programs
are capitalized and amortized based on the ratio that current period revenues
bear to the total of current and estimated future period revenues for that
direct-response-advertising cost pool.
REVENUE RECOGNITION
Revenue from product sales is recognized upon shipment. Test market sales
experience as well as research conducted by outside consultants provides the
Company with a reasonable basis for estimating future returns.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.
6
<PAGE>
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
INCOME TAXES
Provisions (benefits) for federal and state income taxes are calculated on
reported financial statement income (loss) based on current tax law and also
include the cumulative effect of any changes in tax rates from those used
previously in determining deferred tax assets and liabilities. Such provisions
(benefits) differ from the amounts currently payable because certain items of
income and expense, known as temporary differences, are recognized in different
tax periods for financial reporting purposes than for income tax purposes.
EARNINGS (LOSS) PER SHARE
The Company adopted Statement of Financial Accounting Standards No. 128,
"Earnings per Share" (SFAS 128). This statement requires the company to report
basic and diluted earnings (loss) per share. Basic earnings per share is
computed by dividing net income (loss) available to common stockholders by the
weighted average number of common shares outstanding during the period. Diluted
earnings per share include the effect of the additional common shares that would
have been outstanding if dilutive stock options had been exercised.
The following table summarized the calculation of basic and diluted earnings per
share for the three months ended September 30:
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Numerator:
Basic and diluted earnings per share -
net income (loss) $ 10,966 $ (182,498)
Denominator:
Basic earnings per share - weighted average number
of common shares outstanding during the period 3,295,708 2,243,444
Incremental common shares attributable to
assumed exercise of options and warrants 208,984 207,875
Denominator for diluted earnings per share 3,504,692 2,451,319
Basic earnings per share $.00 $(.08)
---- ------
---- ------
Diluted earnings per share $.00 $(.07)
---- ------
---- ------
</TABLE>
7
<PAGE>
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
STOCK BASED COMPENSATION
The Company accounts for stock-based compensation using the intrinsic value
method prescribed in Accounting Principles Board Opinion No. 25, "Accounting for
Stock Issued to Employees". Compensation cost for stock options and warrants is
measured at the excess of the quoted market price of the Company's stock at the
date of grant over the amount the employee or outside consultant must pay to
acquire the stock. Restricted stock is recorded as compensation cost over the
requisite vesting periods based on the market value on the date of grant.
Compensation cost for shares issued under performance share plans is recorded
based upon the current market value of the Company's stock at the time the
warrants are granted.
NOTE 2 - PREPAID ADVERTISING COST
Prepaid advertising cost consists of infomercial production costs, which are
capitalized and amortized based on current and estimated future revenues. At
June 30, 1999 the remainder of these direct response advertising costs have been
fully amortized. Amortization expense was $67,282 for the three months ended
September 30, 1998.
NOTE 3 - PROPERTY, PLANT AND EQUIPMENT
Property, Plant and Equipment consist of the following at:
<TABLE>
<CAPTION>
Sept. 30, June 30,
1999 1999
---- ----
<S> <C> <C>
Furniture and Fixtures $ 2,986 $ 2,986
Computer Equipment 15,072 15,072
less accumulated depreciation (10,649) (9,548)
--------- ----------
$ 7,409 $ 8,510
--------- ----------
--------- ----------
</TABLE>
Depreciation expense charged to operations was $1,100 and $1,235 for three
months ended September 30, 1999 and 1998.
NOTE 4 - INCOME TAXES
There is no current or deferred income tax expense for the three months ended
September 30, 1999 and 1998. As of June 30, 1999, the Company has net operating
loss carryforwards of $1,597,256. These losses will expire between 2012 and 2014
if not utilized.
8
<PAGE>
NOTE 4 - INCOME TAXES (continued)
SFAS 109 requires that the future tax benefit of net operating loss
carryforwards be recorded as an asset using current tax rates to the extent that
management assesses the utilization of such carryforwards to be more likely then
not. As of September 30, 1999 the Company has recorded a deferred tax asset of
$543,067 with a valuation allowance of $543,067.
The following reconciles the federal statutory income tax rate to the effective
rate of the provision for income taxes.
<TABLE>
<CAPTION>
September 30, 1999 September 30, 1998
------------------ ------------------
<S> <C> <C>
Federal Statutory rate 34 % 34 %
Valuation allowance adjustment (34)% (34)%
---------- ---------
Effective rate 0 % 0 %
---------- ---------
---------- ---------
</TABLE>
NOTE 5 - DEFERRED REVENUE
In June 1999 the Company entered into an agreement in which the Company received
a license fee in exchange for certain rights and privileges relating to the
Endless Youth product line. In September 1999 the agreement was amended, the
company will recognize revenue from this agreement over a thirteen month period
commencing in June of 1999.
NOTE 6 - RELATED PARTY TRANSACTIONS
The Company has a license agreement with one of its officers that is also a
director and shareholder. Under the terms of the agreement, the Company retains
the sole right to market goods and services under the Endless Youth trade name
throughout the world. The licensor extended such worldwide rights to the company
following the initial domestic-only grant of these rights. The Company had
advances from various shareholders of $98,999 and $75,388 as of September 30,
1999 and June 30, 1999, respectively. In July of 1998, $62,113 of advances was
converted to 110,266 shares of stock, based on the market value of stock at the
time of conversion.
NOTE 7 - SHAREHOLDERS' EQUITY
During the three months ended September 30, 1999 and the year ended June 30,
1999 the Company issued 0 and 1,045,763 shares of common stock respectively, in
exchange for services rendered. The cost of the services has been charged to
operations, and, additional paid in capital has been increased by $0 and
$421,207 for the three months ended September 30, 1999 and the year ended June
30, 1999 respectively, representing the excess fair market value of the services
over the par value of the common stock.
9
<PAGE>
NOTE 7 SHAREHOLDERS' EQUITY (continued)
The Company applies APB 25 in accounting for its stock options and warrants. The
option price equals or exceeds the fair market value of the common shares on the
date of the grant and, accordingly, no compensation cost has been recognized
under the provisions of APB 25 for stock options. Under SFAS 123, compensation
cost is measured at the grant date based on the value of the award and is
recognized over the service (or vesting) period.
Had compensation cost for Company's stock option and warrant agreements been
determined under SFAS 123, based on the fair market value at the grant dates,
the Company's pro forma net earnings and net earnings per share would have been
reflected as follows at September 30:
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Net earnings
As reported $10,966 ($182,498)
Pro forma $ 3,330 ($190,134)
Net earnings per share
As reported $.00 ($.08)
Pro forma $.00 ($.08)
</TABLE>
The fair value of each option and warrant is estimated on the date of grant
using the Black-Scholes option pricing model with the following weighted-average
assumptions used for those options and warrants granted during years ended June
30, 1999 and 1998, respectively: dividend yield of 0%, expected volatility of
58%, risk-free interest rates of 5%, and expected lives ranging from 1 to 10
years.
NOTE 8 - CONCENTRATION OF CASH
The Company held approximately $168,528 in excess of federal insurance limits on
accounts of financial institutions on September 30, 1999
NOTE 9 - YEAR 2000 COMPLIANCE
The Company primarily uses licensed software products in its operations with a
significant portion of processes and transactions centralized in one particular
software package. Management plans to upgrade to the most current version of
this and other software packages which, among other things, are Year 2000
compliant. Cost of the project is not expected to have a material effect on the
Company's financial statements.
10
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Management's discussion and analysis should be read in conjunction with the
Company's financial statements and the notes thereto set forth in this Form
10-QSB commencing on page 2.
GENERAL
Endless Youth Products, Inc., (the "Company") engages in the business of
developing, marketing and distributing proprietary vitamins, nutritional, skin
care, personal care, and other anti-aging products under the "Endless Youth"
trade name. The following discussion is based on the financial statements for
the three months ending September 30, 1998 and 1999. The financial statements
have been prepared in conformity with generally accepted accounting principals.
Recent Developments
Through May 31, 1999, the Company had engaged Vendor Services, Inc.
with respect to the marketing and distribution of its Longevity System,
pursuant to the broadcast of its infomercial program. For its services Vendor
Services was paid 91 percent of the net sales from the infomercial program.
Pursuant to an agreement dated June 28, 1999 and effective as of June 1,
1999, Vendor Services has paid the Company a lump-sum licensing fee in the
amount of $340,000 for the continued rights to the Longevity System and the
infomercial program subsequent to June 1, 1999. In connection with additional
programs, Vendor Services has been provided with first rights to develop and
produce such programs for a continued licensing fee. On September 24, 1999,
the Company entered into an Agreement with Vendor Services that amended and
clarified the June 28, 1999 Agreement with respect to a possible settlement
agreement between Vendor Services and Sun Ten Laboratories, a manufacturer of
Endless Youth branded product. Vendor Services and Sun Ten had reached a
tentative agreement between themselves in an amount equal to $1,405,000. The
Agreement details the amount to be received by the Company, if such tentative
agreement between Vendor Services and Sun Ten is finalized. The Company would
receive $409,000 minus a percentage (maximum 30 percent of such fees) of
legal fees incurred by Vendor Services which is limited by the June 28, 1999
to ten percent of the proceeds from Sun Ten.
The Company chose to amend the Agreements with Vendor Services to
reflect the changing nature of the business of the Company reflected in the
Company taking the role as licensor of product, rather than developer of
infomercial programs, and as the developer of the Company's Internet site. It is
not anticipated that the lump-sum payment made by Vendor Services, rather than
the continuation of the ongoing arrangement where Vendor Services retained 91
percent of net sales, will have a material impact on future net operating
results. Unless Vendor Services produces a sequel infomercial program for the
Longevity System by August 1, 2000, no further revenue will be generated from
Vendor Services; if a sequel program is developed, then the Company will be
entitled to 3 percent of net sales revenue from the sequel program. The Company
is developing a replacement product for the Longevity System to be available on
its Internet site. Therefore, no future revenue is anticipated from the sales of
the Longevity System, unless pursuant a sequel infomercial is developed by
Vendor Services. The Company anticipates that its future revenue sources shall
be from the licensing of the Endless Youth brand name on third-party products,
from the licensing of content that it is preparing with respect to the
development of its Internet site, from fees paid to the Company for advertising
and promotional placement on the Internet site, and from product sales on the
Company's Internet site or through affiliations with other Internet sites.
As a result of its various agreements, the Company received from the
broadcast of its infomercial for its Longevity System, prior to the lump-sum
payment discussed above, 9 percent of the net sales revenues. Out of this
amount, amounts equal to 3 percent and 2 percent of net sales revenues,
respectively, were paid as license fees to the Company's chief executive officer
and to Schulberg Media Works. The remaining 4 percent was retained by the
Company.
On July 7, 1999, the Company entered into an agreement with Sun Ten
Laboratories, one of the manufacturers of the Company's Longevity System
product. Under this Agreement, Sun Ten Laboratories agreed to pay the Company a
lump-sum payment of $130,000 in connection with a general release and settlement
of any future claims that the Company may have with respect to Sun Ten
Laboratories' production of certain previously manufactured quantities of
product for the Company. Revenue for the quarter ended September 30, 1999
included this amount as other income of $130,000.
It is anticipated that the development of the new Internet site for
the Company will cost approximately $50,000 which will be funded from
present working capital of the Company. In connection with this development
the Company is working closely with the web site developers and contract
editors with respect to content. The Company is working with private label
manufacturers in the development of its skin care and vitamin product line.
There are no development costs associated with such private label product
items for these products are existing items carried in the inventory of these
companies; these companies will, also, provide Endless Youth product
labeling. Very small minimum orders will be placed in order to control costs
and determine the best selling items on the site. All these inventory costs
will be paid from the existing working capital of the Company and are
estimated to be $25,000. As the site becomes further developed, the Company
will add a full-time Internet marketing individual and part-time employees to
update content and provide customer related services; such expenses will not
surpass $10,000 per month and will be dependent upon sales revenue and
customer traffic. The Company is, also, in initial conversations with various
other Internet health sites with respect to forming mutually advantageous
marketing relationships with these sites. The Company does not plan in the
near future any substantial advertising or promotion campaigns that will
require substantial funding, rather the Company will focus on Internet
marketing for placement of its site with portals and through marketing
affiliations with other Internet sites. Until the site and product mix are
fully developed, the Company will only seek to work with other Internet sites
to maximize brand awareness. Following many months of such relationship
marketing, if the Company feels that other advertising and promotion is
required, the Company will secure additional funding from outside sources
which may include further shareholder investment or funding from new
investment groups.
RESULTS OF OPERATIONS
NET SALES. Net sales for the three months ended September 30, 1999 decreased by
$25,391 compared to the three months ended September 30, 1998. Revenues
primarily consist of license fees for the period ended September 30, 1999 and
minimum payments for distribution rights for the period ended September 30,
1998.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses decreased by $88,855 during the three months ended
September 30, 1999 compared to the three months ended September 30, 1998.
This decrease was primarily due to decreased expenses related to product
development, marketing, and royalties. The Company's management continues to
pursue cost reduction measures consistent with the level of business wherever
opportunities can be identified.
LIQUIDITY AND CAPITAL RESOURCES
Although the Company has a negative working capital and equity, it believes it
has sufficient resources to fund the Company's operations and capital
requirements for the 2000 fiscal year. Deferred revenue will be recognized as
income over the next nine months and will not require significant services from
the company. Despite the Company's negative cash flows from operations over the
past two fiscal years it does not anticipate the need for alternative sources of
liquidity. The Company expects positive cash flow during fiscal 2000 primarily
due to licensing fees and minimal monthly expenses.
Prepaid advertising was $54,476 and $0 at September 30, 1998 and September 30,
1999, respectively. The decrease in 1999 resulted from the amortization of the
remaining infomercial costs during the prior fiscal year.
YEAR 2000 COMPLIANCE
The year 2000 issue results from computer programs that do not differentiate
between the year 1900 and the year 2000 because they were using two digits
rather than four to define the applicable year; accordingly computer systems
that have time-sensitive calculations may not properly recognize the year 2000.
The Company has conducted an initial review of its computer system to identify
whether the system is year 2000 compliant. The computer equipment and software
currently used by the Company is year 2000 compliant.
FORWARD LOOKING STATEMENTS
This report on Form 10-QSB contains certain forward-looking statements within
the meaning of section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
forward-looking statements relate to matters such as the Company's future
operation results and liquidity. Such forward-looking statements are based on
the beliefs of the Company's management as well as assumptions made by and
information currently available to the Company's management. Such statements are
based on management's current expectations and are subject to certain risks,
uncertainties and assumptions. Should one or more risks or uncertainties
materialize, or should underlying assumptions prove incorrect, the Company's
actual results, performance or achievements could differ materially from those
expressed in, or implied by such forward-looking statements.
11
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant has caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ENDLESS YOUTH PRODUCTS, INC.
Date: January 5, 2000 By: /s/ NEAL K. WALLACH
-----------------------------
NEAL K. WALLACH, CHAIRMAN AND
CHIEF EXECUTIVE OFFICER
12
<PAGE>
PART II--OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Not applicable.
ITEM 2. CHANGES IN SECURITIES
Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
ITEM 5. OTHER INFORMATION
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.01 Financial data schedule (EDGAR only)
(b) Reports on Form 8-K
Not applicable.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S FINANCIAL STATEMENTS FOR THE QUARTER ENDED SEPTEMBER 30, 1999
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 268,528
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 268,528
<PP&E> 18,058
<DEPRECIATION> 10,649
<TOTAL-ASSETS> 275,937
<CURRENT-LIABILITIES> 496,276
<BONDS> 0
0
0
<COMMON> 1,544,575
<OTHER-SE> (1,764,914)
<TOTAL-LIABILITY-AND-EQUITY> 275,937
<SALES> 71,275
<TOTAL-REVENUES> 71,275
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 190,309
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 10,966
<INCOME-TAX> 0
<INCOME-CONTINUING> 10,966
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,966
<EPS-BASIC> 0.00
<EPS-DILUTED> 0.00
</TABLE>
