UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 September 30,
1997
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: 0-29400
InvestorsBancorp, Inc.
(Exact name of registrant as specified in its charter)
Wisconsin 39-1854234
(State or other jurisdiction of (I.R.S. Employer
incorporation) Identification No.)
W239 N1700 Busse Road
P.O. Box 190 53072-0190
Pewaukee, Wisconsin (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (414) 523-1000
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 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 ____ No X
On October 24, 1997 there was 1,000,000 shares outstanding of the
Registrant's common stock, $.01 par value.
<PAGE>
InvestorsBancorp, Inc.
FORM 10-QSB INDEX
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statement of Financial Condition at
September 30, 1997 (Unaudited) . . . . . . . . . . . . . . . 3
Consolidated Statement of Income - For the Quarter
Ended September 30, 1997 (Unaudited) . . . . . . . . . . . . 4
Consolidated Statement of Cash Flows - For the Quarter
Ended September 30, 1997 (Unaudited) . . . . . . . . . . . . 5
Notes to the Consolidated Financial Statements
(Unaudited) . . . . . . . . . . . . . . . . . . . . . . . . 6-10
Item 2. Management's Discussion and Analysis or Plan of
Operation . . . . . . . . . . . . . . . . . . . . . . . . 11-13
PART II. OTHER INFORMATION
Item 2. Changes in Securities . . . . . . . . . . . . . . . . . . . . 14
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . 14
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . 15
Exhibit Index . . . . . . . . . . . . . . . . . . . . . . . . 16
<PAGE>
InvestorsBancorp, Inc. and Subsidiary
Consolidated Statement of Financial Condition
September 30, 1997
(Unaudited)
ASSETS
Cash and due from banks $ 221,007
Federal funds sold 7,975,000
Loans receivable 603,155
Less: Allowance for estimated loan losses (1,500)
---------
Net Loans Receivable 601,655
Fixed assets, net 129,841
Accrued interest and other assets 226,098
---------
Total assets $ 9,153,601
=========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest bearing $ 582,640
Interest bearing 1,588,083
---------
Total deposits 2,170,723
Other liabilities 29,799
---------
Total liabilities 2,200,522
---------
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value; shares
authorized 1,000,000; no shares issued and
outstanding -
Common stock, $0.01 par value; shares
authorized 9,000,000; shares issued and
outstanding 1,000,000 10,000
Additional paid in capital 6,979,900
Retained earnings (deficit) (36,821)
---------
Total stockholders' equity 6,953,079
---------
Total liabilities and stockholders'
equity $ 9,153,601
=========
See notes to unaudited consolidated financial
statements.
<PAGE>
InvestorsBancorp, Inc. and Subsidiary
Consolidated Statement of Income
For Period Ended September 30, 1997
(Unaudited)
Interest income:
Interest on loans $ 852
Interest on federal funds sold 29,251
-------
Total interest income 30,103
-------
Interest expense:
Interest on deposits 2,517
-------
Total interest expense 2,517
-------
Net interest income 27,586
Provision for loan losses 1,500
-------
Net interest income after provision
for loan losses 26,086
-------
Non-interest income:
Service charges on deposit accounts 45
Other income 54,947
-------
Total non-interest income 54,992
-------
Non-interest expense:
Salaries and employee benefits 81,356
Occupancy expense 4,764
Other operating expenses 55,579
-------
Total operating expense 141,699
-------
Loss before income taxes (60,621)
Income tax benefit 23,800
-------
Net loss $ (36,821)
=======
Loss per share $ (0.04)
Average shares outstanding 1,000,000
See notes to unaudited consolidated financial
statements.
<PAGE>
InvestorsBancorp, Inc. and Subsidiary
Consolidated Statement of Cash Flows
For Period Ended September 30, 1997
(Unaudited)
Cash Flows From Operating Activities:
Net loss $ (36,821)
--------
Adjustments to reconcile net
income (loss) to net cash used in
operating activities:
Depreciation 2,030
Amortization of organizational
costs 2,376
(Increase) decrease in assets:
Interest receivable (404)
Other assets (228,070)
Increase (decrease) in liabilities:
Accrued interest 2,171
Other liabilities 27,628
---------
Total adjustments (194,269)
---------
Net cash used in operating activities (231,090)
---------
Cash Flows From Investing Activities:
Net increase in federal funds sold (7,975,000)
Purchases of fixed assets (131,871)
Net increase in loans (601,655)
----------
Net cash (used in) investing activities (8,708,526)
----------
Cash Flows From Financing Activities:
Net increase in deposits 2,170,723
Proceeds from issuance of common
stock, net 6,989,900
----------
Net cash provided by financing activities 9,160,623
----------
Net increase in cash and due from banks 221,007
Cash and due from banks, beginning of
period 0
----------
Cash and due from banks, ending of period $ 221,007
==========
Supplemental disclosure of cash flow
information:
Cash paid during the period for:
Interest 346
See notes to unaudited consolidated financial statements.
<PAGE>
InvestorsBancorp, Inc. and Subsidiary
Notes to Consolidated Financial Statements
September 30, 1997
(Unaudited)
NOTE 1: Organization
InvestorsBancorp, Inc. (the "Company") was incorporated under Wisconsin
law on June 12, 1996, for the purpose of holding all of the outstanding
common stock of InvestorsBank (the "Bank"). The Bank was incorporated
under Wisconsin law on June 17, 1997 and received its state charter to
commence banking business as of September 8, 1997.
NOTE 2: Accounting Policies
Statement on Preparation of Interim Financial Statements The September
30, 1997 financial statements have been prepared on the basis of generally
accepted accounting principles and general practices of the financial
services industry. The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements. Actual results could differ from those
estimates. In the opinion of management of the Company, all adjustments
necessary to present fairly the financial position as of September 30,
1997 and the results of operations and cash flows for the period from
inception have been made. Such adjustments consisted only of normal
recurring items.
Principles of Consolidation The consolidated financial statements as of
and for the period presented include the accounts of the Company and the
Bank, its wholly owned subsidiary. All significant intercompany accounts
and transactions have been eliminated in the consolidated financial
statements.
Cash and Due from Banks Due to the bank commencing operations on
September 8, 1997, the Federal Reserve Bank has not required the Company
to maintain vault cash or reserve balances with the Federal Reserve Bank
based upon a percentage of deposits.
Loans Loans are stated at unpaid principal balance, adjusted by any net
deferred loan fees or costs. Interest income on loans is calculated using
the simple-interest method on the outstanding principal amounts.
Accrual of interest on loans is discontinued when principal or interest
remains due and unpaid for 90 days or more and the secured collateral is
not sufficient to pay principal, accrued interest and liquidation
expenses. Income on such loans is then recognized only to the extent that
cash is received and when future collection of principal is probable.
Allowance for Credit Losses A loan is considered impaired when, based on
current information and events, it is probable that the Company will be
unable to collect all amounts due according to the contractual terms of
the loan. Impaired loans are recorded at the loan's fair value by the
establishment of a specific allowance where necessary. The fair value of
the loans is generally determined by the fair value of the underlying
collateral. Certain loans are collectively evaluated for impairment. The
allowance for credit losses is established through a provision for credit
losses charged to expense. Loans are charged against the allowance for
credit losses when management believes the full collectibility of the loan
is unlikely. The allowance is an amount that management believes will be
adequate to absorb losses inherent in existing loans and commitments to
extend credit. The allowance and provision take into consideration such
factors as changes in the nature and volume of the portfolio, overall
portfolio quality, loan concentrations, specific problem loans, and
current and anticipated economic conditions that may affect the borrowers'
ability to pay. Specific allowances are established for certain
individual impaired loans based on the evaluation of the fair value of the
impaired loan.
Fixed assets Fixed assets are stated at cost and are depreciated over
estimated useful lives using the straight-line method for financial
statement purposes and accelerated methods for income tax purposes.
Off-balance sheet financial instruments In the ordinary course of
business, the Bank has entered into off-balance sheet financial
instruments consisting of commitments to extend credit. Such financial
instruments are recorded in the financial statements when they are funded.
Income Taxes The Company files a consolidated federal income tax return
and individual subsidiary state income tax returns. Accordingly, amounts
equal to tax benefits of those companies having taxable federal losses or
credits are reimbursed by the other companies that incur federal tax
liabilities.
The Company utilizes an asset and liability approach for financial
accounting and reporting of income taxes. The provision for income taxes
is based on pre-tax income which differs in some respects from taxable
income. Deferred income taxes/benefits are provided on cumulative
differences between pre-tax income for income tax and financial reporting
purposes using the current tax rate.
At September 30, 1997, the Company has a net operating loss carryforward
of approximately $60,000. The state and deferred income tax benefit of
$23,800 is considered by management to be more likely than not to be
realized.
Stock Options The Company accounts for stock option grants to its
employees under the provisions of Accounting Principles Board Opinion No.
25 "Accounting for Stock Issued to Employees (APB No. 25)." Under APB 25,
compensation cost is recorded using the intrinsic-value based method which
measures compensation cost as the difference between the exercise price
and the market price of the stock at the date which both the number of
shares and exercise price of the stock are fixed.
Earnings per Share Earnings per share is computed using the weighted
average number of shares outstanding during the period, including all
common stock equivalents, when such common stock equivalents are dilutive.
At September 30, 1997 the common stock equivalents consisting of warrants
and stock options are anti-dilutive.
Statement of Cash Flows The Company considered cash on hand, deposits
maintained with the Federal Reserve Bank and cash due from other banks as
cash for purposes of the Statement of Cash Flows.
Recent Accounting Pronouncements In February 1997, the Financial
Accounting Standards Board issued Statement of Financial Accounting
Standards No. 128, "Earnings Per Share," which supercedes existing
standards for determining earnings per share. The statement will be
effective for the Company for the year ending December 31, 1997. Primary
earnings per share will be replaced by "basic earnings per share," which
will be determined solely by the weighted average number of shares
outstanding for the period. Fully diluted earnings per share will be
replaced by "diluted earnings per share," which will reflect the potential
dilution that could occur if securities or other contracts to issue common
stock were exercised or converted into common stock or resulted in the
issuance of common stock that then shared in the earnings of the Company.
The statement will also require a reconciliation of the numerator and
denominator of basic earnings per share with the numerator and denominator
of diluted earnings per share. Under the new pronouncement, the Company
will exclude common stock equivalents, as defined by APB No. 15 "Earnings
Per Share," from the computation of earnings per share. Management
does not believe the new statement will result in a significant difference
in amounts per share determined for primary earnings per share because
outstanding options and warrants have not exceeded the market price of the
Company's common stock for a sufficient period to qualify as common stock
equivalents and if included at September 30, 1997 would be anti-dilutive.
In June 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 130 "Reporting Comprehensive Income,"
which establishes standards for reporting of comprehensive income and its
components. This statement will be effective for the Company for the year
ending December 31, 1999, although the Statement permits earlier adoption.
This statement requires that entities classify items of other
comprehensive income by their nature in a financial statement and display
the accumulated balance of other comprehensive income separately from
retained earnings and surplus in the equity section of a statement of
financial condition. Comprehensive income is composed of net income and
"other comprehensive income." Other comprehensive income includes charges
or credits to equity that are not the result of transactions with the
entities' shareholders. Currently, no items of other comprehensive income
result from activities of the Company. The Company believes that in the
future it will have items of other comprehensive income as it begins to
invest a portion of its funds in debt securities classified as available
for sale and the unrealized net gains and losses are classified in
stockholders' equity. Upon adoption, financial statements of earlier
periods will be restated for comparative purposes.
In June 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 131 "Disclosures about Segments of an
Enterprise and Related Information, (SFAS No. 131)" which establishes
standards for the way the Company reports information about its operating
segments in its annual report to shareholders and certain selected
information about its operating segments in interim reports to
shareholders. The Company believes it operates as a single reportable
segment under the criteria established by SFAS No. 131; accordingly, this
new statement is not expected to affect the way the Company currently
reports its financial information. In addition, SFAS No. 131 also
requires certain additional disclosures on an enterprise-wide basis
primarily related to geographic information and revenue from major
customers. The Company does not believe that these enterprise-wide
disclosures will be applicable.
NOTE 3 Loans and Allowance for Loan Losses
Loans outstanding as of September 30, 1997 are as follows:
Business real estate $ 212,541
Residential real estate 390,614
--------
Net loans $603,155
========
Changes in the allowance for loan losses are as follows:
Balance at beginning of period $ -
Addition:
Provision for loan losses 1,500
--------
Balance at end of period $ 1,500
========
There were no specific loans that were impaired at September 30, 1997.
NOTE 4 Deposits
Deposits outstanding as of September 30, 1997 are as follows:
Demand deposit accounts $ 582,640
Interest bearing checking accounts 166,719
Money market accounts 1,418,364
Time certificates 3,000
---------
Total deposits $2,170,723
=========
As of September 30, 1997 the Company had no time deposits greater than
$100,000.
NOTE 5 Stock Options and Warrants
An employee of the Company, who owns 12% of the outstanding common stock
at September 30, 1997, has been issued a warrant which entitles the
employee to purchase up to 100,000 shares of the Company's common stock at
a price of $7.70 per share. The fair market value of the Company's common
stock at the date the warrant was issued was $7.00 per share. The warrant
is exercisable, in whole or in part, through September 3, 2004, and is
subject to anti-dilution provisions.
The Company established the InvestorsBancorp, Inc. 1997 Equity Incentive
Plan on September 2, 1997 for the purpose of promoting continuity of
management and aligning the interests of the employees with stockholders.
Under the Plan, awards may be granted to key employees under stock option,
stock appreciation rights, restricted stock or performance share
provisions. Aggregate awards under the Plan are limited to 100,000 shares
of the Company's common stock. On September 2, 1997, a total of 7,500
shares were granted to employees under the stock option provisions of the
Plan at an exercise price of $7.70 per share (market price of the
Company's common stock at date of grant was $7.00). The options are
exercisable in whole or in part, through September 5, 2007.
NOTE 6 Commitments and Contingencies
The subsidiary Bank is party to financial instruments with off-balance
sheet risk in the normal course of business to meet the financing needs
of its customers. These financial instruments include commitments to
extend credit. They involve, to varying degrees, elements of credit risk
in excess of amounts recognized on the consolidated balance sheet.
The Bank uses the same credit policies in making commitments to extend
credit as it does for on-balance sheet instruments. As of September 30,
1997 the Bank had $1,697,305 in outstanding commitments.
Commitments to extend credit are agreements to lend to a customer as long
as there is no violation of any condition established in the contract.
Commitments generally have fixed expiration dates or other termination
clauses.
Item 2. Management's Discussion and Analysis or Plan of Operation
Results of Operations
During the period ended September 30, 1997, the Company reported a net
loss of $36,821, or $0.04 per share. The Company commenced operations on
September 8, 1997.
Total interest income during the period was $30,103, and consisted
primarily of interest on federal funds sold. The yield on interest-
bearing assets was 5.32% for the period ended September 30, 1997.
Management anticipates that interest income will continue to grow as
InvestorsBank's (the "Bank") loans and assets grow. Interest expense for
the period was $2,517, and it will increase as deposits grow. The yield
on interest-bearing liabilities was 5.03% for the period ended September
30, 1997. Net interest income amounted to $27,586 for the period ended
September 30, 1997. For the period ended September 30, 1997, the
Company's net interest margin was not meaningful due to the short period
of operation.
Non-interest income for the period ended September 30, 1997 was $54,992.
The majority of that income was a management fee received by the Bank from
an affiliated company.
Operating expenses for the period ended September 30, 1997 were $141,699,
and consisted primarily of salaries and employee benefits and other
operating expenses, such as office supplies, examination fees and
directors fees.
The effective rate for the benefit for income taxes for the period ended
September 30, 1997 was 39.26% which was in excess of the maximum federal
statutory rate of 35% because of the effect of state income tax benefit,
partially offset by surtax exemptions. Management believes it is more
likely than not that the deferred tax asset will be realized.
Financial Condition
Total assets of the Company were $9,153,601 at September 30, 1997. Cash
and due from banks was $221,007 and federal funds sold with daily
liquidity were $7,975,000 at September 30, 1997.
Loans receivable at September 30, 1997 was $603,155, which include
business and residential loans made by the Bank. The allowance for
estimated loan losses was $1,500 or .25% of gross loans. There were no
loan charge-offs or recoveries for the period, nor were there any impaired
loans. Management believes that the allowance for loan losses reflects
an adequate allowance based upon its analysis of the loan portfolio and
general economic conditions.
Other assets at September 30, 1997 were $226,098, consisting of
organizational and start-up costs of $140,916, which are being amortized
over a sixty-month period. It also includes a receivable for $55,451, a
deferred tax asset of $23,800 and other assets of $5,931.
Deposits at September 30, 1997 were $2,170,723, which include noninterest
and interest bearing accounts.
Other liabilities of $29,799 at September 30, 1997 consisted of accrued
interest payable of $2,171 and accrued expenses payable of $27,628.
Capital Resources
On September 3, 1997, the Company issued 999,857 shares of common stock
at $7.00 per share. The Company incurred $10,100 in stock issue costs
that were netted against additional paid-in-capital.
The Federal Reserve Board ("FRB") has established risk-based capital
guidelines that must be observed by bank holding companies and banks.
Under these guidelines, total qualifying capital is categorized into two
components Tier I and Tier II capital. Tier I capital generally
consists of common shareholders' equity, perpetual preferred stock
(subject to limitations) and minority interest in subsidiaries. Subject
to limitations, Tier II capital includes certain other preferred stock and
debentures, and a portion of the reserve for loan losses. These ratios
are expressed as a percentage of risk-adjusted assets, which include
various risk-weighted percentages of off-balance sheet exposures, as well
as assets on the balance sheet.
The Bank has committed to the FDIC that it will maintain a Tier I capital
to total assets ratio of not less than 8% for the first three years of
operations starting September 8, 1997.
Capital ratios applicable to the Bank and the Company at September 30,
1997 are as follows:
Total Risk-
Tier I Risk- based Leverage
based Capital Capital Ratio
Regulatory Capital Requirements:
Minimum 4.00% 8.00% 4.00%
Well-capitalized 6.00% 10.00% 5.00%
Bank 293.20% 293.20% 72.69%
Company 293.20% 293.20% 72.69%
The Company expects that its capital ratios will decline in the future as
assets grow; however, management intends to maintain its ratios at levels
at or above those established by regulatory agencies for well-capitalized
institutions.
The Bank made a statement in its application for a bank charter and
federal deposit insurance that it will retain its earnings during the
first three years of operations. As such, no dividends will be paid to
the shareholders during that period.
Liquidity
The liquidity of a financial institution reflects its ability to provide
funds to meet loan requests, to accommodate possible outflows in deposits
and to take advantage of interest rate market opportunities. Funding of
loan requests, providing for liability outflows, and management of
interest rate fluctuations require continuous analysis in order to match
the maturities of specific types of categories of short-term loans and
investments with specific types of deposits and borrowings. Financial
institution liquidity is thus normally considered in terms of the nature
and mix of the institution's sources and uses of funds. The Company's
primary source of liquidity at September 30, 1997 was its federal funds
sold of $7,975,000 which was 87.1% of total assets. Management believes
that its current highly liquid position is sufficient to meet future
demands.
Asset/Liability Management
Closely related to liquidity management is the management of interest-
earning assets and interest-bearing liabilities. The Company manages its
rate sensitivity position to avoid wide swings in net interest margins and
to minimize risk due to changes in interest rates.
Changes in net interest income, other than volume related changes, arise
when interest rates on assets reprice in a time frame or interest rate
environment that is different from the repricing period for liabilities.
Changes in net interest income also arise from changes in the mix of
interest-earning assets and interest-bearing liabilities.
The Company does not expect to experience any significant fluctuations in
its net interest income as a consequence of changes in interest rates.
<PAGE>
PART II. OTHER INFORMATION
Item 2. CHANGES IN SECURITIES
a. On September 3, 1997, the Company sold 880,000 shares of
Common Stock in a private transaction to its parent, Bando McGlocklin
Capital Corporation, and 119,857 shares of Common Stock to George R.
Schonath, Chief Executive Officer of the Company. In addition, on
September 3, 1997, the Company issued to Mr. Schonath a warrant to
purchase 100,000 shares of Common Stock of the Company. Also, on
September 2, 1997 the Company granted stock options to purchase an
aggregate of 7,500 shares of its Common Stock under its 1997 Equity
Incentive Plan (the "Plan") to three key officers of its wholly owned
subsidiary.
b. No underwriters were involved in the issuances.
c. The 880,000 shares were sold for a price of $7.00 per share,
for a total of $6,160,000. The 119,857 shares of Common Stock and the
warrant to purchase 100,000 shares of Common Stock were issued for an
aggregate consideration of $838,999. The stock options were issued for no
consideration.
d. The shares of Common Stock, the warrant, and the stock
options were issued pursuant to Section 4(2) of the Securities Act of
1933. Mr. Schonath represented that he purchased the shares and warrant
for investment. The shares issued to Bando McGlocklin Capital Corporation
were likewise exempt under Section 4(2); such shares were distributed as a
dividend to the stockholders of Bando McGlocklin Capital Corporation
pursuant to an Information Statement filed and cleared with the Securities
and Exchange Commission under date of August 26, 1997. The shares of
Common Stock to be issued pursuant to the option will either be registered
on Form S-8 or will be exempt from registration under Section 4(2) of the
Securities Act of 1933.
e. The warrant is exercisable at any time, in whole or in part,
before September 4, 2004. The exercise price is $7.70 per share. The
stock options may be exercisable at any time, in whole or in part, before
September 6, 2007 at a price of $7.70 per share.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) List of Exhibits
The Exhibits to this Quarterly Report on Form 10-QSB are
identified on the Exhibit Index hereto.
(b) Reports on Form 8-K
No reports on Form 8-K were filed by the Company during the
quarter ended September 30, 1997.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunder duly authorized.
InvestorsBancorp, Inc.
(Registrant)
By: /s/ George R. Schonath
Date: November 5, 1997 George R. Schonath
President an Chief Executive Officer
By: /s/ Susan J. Hauke
Susan J. Hauke
Principal Financial and Accouting
Officer
<PAGE>
InvestorsBancorp, Inc.
Quarterly Report on Form 10-Q
EXHIBIT INDEX
Exhibit
Number Exhibit
11 Statement Regarding Computation of Per Share
Earnings
27 Financial Data Schedule (EDGAR version only)
Exhibit 11
InvestorsBancorp, Inc. and Subsidiary
Computation of Net Income Per Common Share
For Period Ended September 30, 1997
(Unaudited)
Average number of common shares outstanding 1,000,000
Net loss $ (36,821)
========
Net loss per common share $ (0.04)
========
Note: Options and warrants are not included
in the above calculation due to there anti-
dilutive effect.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> SEP-03-1997
<PERIOD-END> SEP-30-1997
<CASH> 221,007
<SECURITIES> 7,975,000
<RECEIVABLES> 603,155
<ALLOWANCES> (1,500)
<INVENTORY> 0
<CURRENT-ASSETS> 226,098
<PP&E> 131,871
<DEPRECIATION> 2,030
<TOTAL-ASSETS> 9,153,601
<CURRENT-LIABILITIES> 29,799
<BONDS> 0
0
0
<COMMON> 6,989,900
<OTHER-SE> (36,821)
<TOTAL-LIABILITY-AND-EQUITY> 9,153,601
<SALES> 26,086
<TOTAL-REVENUES> 81,078
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 141,699
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (60,621)
<INCOME-TAX> 23,800
<INCOME-CONTINUING> (36,821)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (36,821)
<EPS-PRIMARY> (0.04)
<EPS-DILUTED> (0.04)
</TABLE>
