SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: March 31, 2000
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE EXCHANGE ACT
For the transition period from January 1, 2000 to March 31, 2000
Commission File No. 333-61259
ASI ENTERTAINMENT, INC.
___________________________________________________________
(Exact name of small business issuer as specified in its
charter)
Delaware 52-2101695
_______________________________ ____________________
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
Suite 3, 1601 Main Road
Research, Victoria, 3095, Australia
_____________________________________________________________
(Address of principal executive offices, including zip code)
Issuer's Telephone Number: (613)9437 1233
______________________________________________________
(Former name, former address and former fiscal year,
if changed since last report)
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEEDING DURING THE PRECEDING FIVE YEARS
Check whether the Issuer (1) filed all
reports required to be filed by Section 12, 13 or
15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest praticable date: 5,818,337
Transitional Small Business Disclosure Format (Check one):
Yes [ ] No [x]
<PAGE>
ASI ENTERTAINMENT, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
FORM 10-QSB
FOR THE QUARTER ENDED MARCH 31, 2000
INDEX
PART I: FINANCIAL INFORMATION 1
Item 1. Financial Statements 1
Item 2. Management's Discussion And Analysis of
Financial Condition and Results of Operations 8
PART II: OTHER INFORMATION 9
Item 1. Legal Proceedings 9
Item 2. Changes in Securities and Use of Proceeds 9
Item 3. Defaults Upon Senior Securities 9
Item 4. Submission of Matters to a
Vote of Security Holders 10
Item 5. Other Information 10
Item 6. Exhibits and Reports on Form 8-K 10
SIGNATURES 11
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ASI ENTERTAINMENT, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED BALANCE SHEETS
March 31,2000 June 30, 1999
ASSETS (UNAUDITED)
_____________ _____________
CURRENT ASSETS
Cash and cash equivalents $ 234,612 $ 1,100
Other receivables 9,602 0
____________ ____________
Total Current Assets 244,214 1,100
____________ ____________
NON CURRENT ASSETS
Property and equipment, net 1,053,327 1,200,897
Investment in media rights, net 153,169 216,591
____________ ____________
Total Non Current Assets 1,206,496 1,417,488
____________ ____________
TOTAL ASSETS $ 1,450,710 $ 1,418,588
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Loans payable under bank
line of credit $ 0 $ 32,957
Accrued payables and accrued expenses 1,759 162
Due to related parties 96,659 61,291
Sundry creditors 25,217 0
____________ ____________
Total Liabilities 123,635 94,410
____________ ____________
STOCKHOLDERS' EQUITY
Preferred stock, $0.0001 par value,
20,000,000 shares authorized,
none issued and outstanding $ 0 $ 0
Common stock, $0.0001 par value,
100,000,000 shares authorized,
6,232,087 shares issued
& outstanding 623 576
Additional paid-in capital 3,501,344 3,073,641
Additional paid-in capital - discount
on shares (745,470) (745,470)
Deficit accumulated during the
development stage (1,093,250) (809,394)
Accumulated other comprehensive loss (301,797) (178,325)
___________ ___________
1,361,460 1,341,028
___________ ___________
Less subscriptions receivable 0 (16,850)
Less deferred consulting expense (34,375) 0
___________ ___________
Total Stockholders' Equity 1,327,075 1,324,178
___________ ___________
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 1,450,710 $ 1,418,588
=========== ===========
See accompanying notes to unaudited consolidated financial statements.
<PAGE> 1
ASI ENTERTAINMENT, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
December 15,
1993
(Inception)
Three Months Ended Nine Months Ended to
March 31, March 31, March 31,
2000 1999 2000 1999 2000
____ ____ ____ ____ ___________
REVENUES $ 0 $ 0 $ 0 $ 36,224 $ 81,076
Cost of sales 0 0 0 18,547 40,971
_________ _________ _________ _________ ___________
Gross Profit 0 0 0 17,677 40,105
_________ _________ _________ _________ ___________
EXPENSES:
Accounting and
auditing 3,765 5,091 21,089 34,804 71,808
Advertising and
promotion 2,277 0 2,277 265 11,455
Amortisation 15,675 15,625 48,325 46,875 160,118
Banking 531 58 930 239 2,595
Consulting expense 20,798 0 20,798 0 32,227
Convention expense 0 0 0 1,605 5,001
Corporate administration 1,230 370 2,595 370 2,595
Depreciation 16,552 16,499 51,029 49,498 189,064
Directors fees 3,260 0 9,260 3,968 34,451
Engineering 6,067 0 6,067 1,990 30,827
Interest 0 0 1,851 0 1,851
Marketing expense 0 6,037 0 24,801 39,887
Offering costs 0 0 0 11,699 107,124
Officers' compensation 20,691 24,375 63,789 66,687 236,339
Other employee comp. 3,762 3,750 11,598 11,250 46,106
Office expenses, rent
and utilities 11,959 660 20,496 2,028 47,406
Professional fees 14,264 0 17,544 0 57,247
Travel 4,497 0 6,207 13,892 57,254
_________ _________ _________ _________ ___________
Total Expenses 125,329 72,465 283,855 269,971 1,133,355
_________ _________ _________ _________ ___________
NET LOSS (125,329) (72,465) (283,855) (252,294) (1,093,250)
========= ========= ========= ========= ===========
OTHER COMPREHENSIVE
INCOME (LOSS)
Foreign currency
translation gains
(losses) (113,745) 28,738 (123,473) 19,902 (301,797)
_________ _________ _________ _________ ___________
COMPREHENSIVE LOSS (239,074) (43,727) (407,328) 232,392 (1,395,047)
========= ========= ========= ========= ===========
Weighted average number of
common shares outstanding
during the period 5,890,004 5,754,337 5,797,179 5,754,337 3,145,115
========= ========= ========= ========= =========
Net loss per common share
and equivalents $(0.0213) $(0.0126) $(0.0490) $(0.044) $(0.3476)
See accompanying notes to unaudited consolidated financial statements.
<PAGE> 2
ASI ENTERTAINMENT, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
December 15,
1993
Nine Months Ended (Inception)
March 31, to
2000 1999 March 31, 2000
____ ____ ______________
Cash Flows From Operating Activities:
Net income (loss) $(283,855) $(252,294) $(1,093,250)
Adjustments to reconcile net
income (loss) to net cash
provided by (used for)
operating activities:
Depreciation 50,480 49,498 188,515
Amortisation 47,805 46,875 159,598
Consulting expense incurred
in exchange for common stock 15,625 0 27,054
Changes in operating assets
and liabilities:
(Increase) decrease in:
Trade accounts receivable 0 6,588 (651)
Other receivables 9,602 3,047 9,302
Increase (decrease) in:
Accounts payable and accrued
expenses 1,594 40,790 2,523
Sundry creditors 0 0 25,218
_________ _________ _________
Total adjustments to reconcile
net loss to cash provided by
operating activities 125,106 146,798 411,559
_________ _________ _________
Net cash provided by
(used in)
operating activities (158,749) (105,496) (681,691)
_________ _________ _________
Net cash flow from investing
activities:
Advances to affiliates 0 153 (17,015)
Cash acquired through
recapitalization 0 0 15,453
_________ _________ _________
Net cash provided
by (used in)
investing activities 0 153 (1,562)
_________ _________ _________
Cash flow from financing activities:
Increase (decrease) in loans
payable - bank (32,956) 0 (1,884)
Increase (decrease) in amount
due to related parties 35,368 0 93,154
See accompanying notes to unaudited consolidated financial statements.
<PAGE> 3
ASI ENTERTAINMENT, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
December 15,
1993
Nine Months Ended (Inception)
March 31, to
2000 1999 March 31, 2000
____ ____ ______________
Proceeds from issuance of
common stock, net 394,321 24,805 862,499
_________ _________ ___________
Net cash provided
by (used in)
financing activities 396,733 24,805 953,769
_________ _________ ___________
Effect of exchange rate
changes on cash (4,922) 16,707 (36,354)
Net increase (decrease) in cash 233,062 (63,831) 234,162
_________ _________ ___________
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 1,100 65,322 0
_________ _________ ___________
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 234,162 $ 1,491 $ 234,162
========= ========= ===========
See accompanying notes to unaudited consolidated financial statements.
<PAGE> 4
ASI ENTERTAINMENT, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO BALANCE SHEET
AS OF MARCH 31, 2000
(UNAUDITED)
Note 1. Summary of Significant Accounting Policies
Principles of Consolidation
The accompanying unaudited consolidated financial statements include the
accounts of ASI Entertainment, Inc. and its wholly owned subsidiaries, ASI
Technologies, Inc. and ASI Entertainment Pty. Ltd., an Australian corporation.
ASI Media Pty. Ltd., an inactive wholly owned subsidiary of the Australian
corporation is also included. (All entities are collectively referred to as
"the Company").
Development Stage Company
The Company is operating as a development stage company and intends to
generate revenues primarily from selling advertising time on its ASI-9000
Program to be installed on commercial aircraft.
Basis of Presentation
The accompanying unaudited consolidated financial statements
of the Company have been prepared in accordance with Generally
Accepted Accounting Principles used in the United States and with the
rules and regulations of the United States Securities and Exchange
Commission for the interim financial information. Accordingly, they do not
include all the information and footnotes necessary for a comprehensive
presentation of financial position and results of operations.
Adjustments are made to convert the statutory financial statements of the
Company's Australian subsidiaries to Generally Accepted Accounting Principles
used in the United States. The functional currency of the Company's
Australian subsidiary is the Australian dollar. The functional currency of
the United States entities is the United States dollar. The unaudited
consolidated financial statements are expressed in United States dollars. It
is management's opinion that all other material adjustments (consisting of
normal recurring adjustments) have been made which are necessary for a fair
consolidated financial statement presentation. The results for the interim
period are not necessarily indicative of the results to be expected for the
year.
For further information, refer to the consolidated financial statements and
footnotes of ASI Entertainment Pty. Ltd. and ASI Entertainment, Inc. included
in the Company's Form 10KSB for the year ended June 30, 1999.
Per Share Data
Net loss per common share is computed by dividing net loss by the weighted
average common shares outstanding during the period as defined by
Financial Accounting Standards, No. 128, "Earnings per Share". The assumed
exercise of common share equivalents was not utilized since the effect was
anti-dilutive.
<PAGE> 5
ASI ENTERTAINMENT, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO BALANCE SHEET
AS OF MARCH 31, 2000
(UNAUDITED)
Note 2. Merger
Under an agreement dated June 10, 1998, ASI Entertainment, Inc. ("ASIEInc.")
a new corporation formed on April 29, 1998 under the laws of Delaware,
acquired all of the issued and outstanding ordinary shares of capital and
ordinary share options of ASI Entertainment Pty. Ltd. in exchange for common
stock and stock options of ASIEInc. Under the terms of the agreement, ASI
Entertainment Pty. Ltd.'s shares and options were exchanged at a ratio of one
share and one option of ASIEInc. for every eight shares and eight options of
ASI Entertainment Pty. Ltd. As a result of the exchange, ASI Entertainment
Pty. Ltd. and its wholly owned subsidiary became wholly owned subsidiaries of
ASIEInc., and the shareholders of ASI Entertainment Pty. Ltd. became
shareholders of approximately 92% of ASIEInc. Generally Accepted Accounting
Principles used in the United States require that the company whose
shareholders retain a majority interest in a combined business be treated
as the acquirer for accounting purposes. As a result, the merger was treated
as an acquisition of ASIEInc. by ASI Entertainment Pty. Ltd., and a
recapitalization of ASI Entertainment Pty. Ltd. Accordingly, the Company's
financial statements immediately following the acquisition follows:
(1) The Balance Sheet consists of ASI Entertainment Pty. Ltd.'s net assets
at historical cost and ASIEInc.'s net assets at historical cost, and (2) the
Statement of Operations includes ASI Entertainment Pty. Ltd.'s operations for
the period presented and ASIEInc.'s operations from the date of acquisition.
Note 3. Going Concern
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As such, they do not include
adjustments relating to the recoverability of recorded asset amounts and
classification of recorded assets and liabilities. The Company had
accumulated losses of approximately $1,090,000 at March 31, 2000 and will be
required to make significant expenditures in connection with continuing
engineering and marketing efforts along with general and administrative
expenses. The Company's ability to continue its operations is dependent upon
its raising of capital through debt or equity financing in order to meet its
working needs.
These conditions raise substantial doubt about the Company's ability to
continue as a going concern subsequent to the acquisition, and if
substantial additional funding is not acquired or alternative sources
developed, management will be required to curtail its operations.
The Company may raise additional capital by the sale of its equity securities,
through an offering of debt securities, or from borrowing from a financial
institution. The Company does not have a policy on the amount of borrowing
or debt that the Company can incur. The Company may attempt to negotiate
with vendors or customers, airline revenue sharing arrangements by which the
Company will share the advertising revenue if the vendor or customer airline
provide capital for the equipment. Management believes that actions presently
being taken to obtain additional funding provides the additional opportunity
for the Company to continue as a going concern.
<PAGE> 6
ASI ENTERTAINMENT, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO BALANCE SHEET
AS OF MARCH 31, 2000
(UNAUDITED)
Note 4. Common stock issuance for consulting services
During the three months ended March 31, 2000, the Company issued 100,000
shares of common stock to a consultant, valued for financial accounting
purposes at the market value on the agreement date in August 1999. The
Company recognized consulting expense of $15,625 for the period through
March 31, 2000 and deferred consulting expense of $34,375 related to future
service periods.
Note 5. Issuance of common stock to investors
During the three months ended March 31, 2000, the Company issued 313,750
shares of common stock to investors for $1.00 per share. As a result of the
issue, the Company has taken up Additional Paid-In Capital of $313,719.
Note 6. Revenue
Pending re-installation in new B-737-800 aircraft, ASI equipment has been
removed from six Air Europa B-757-200 aircraft. As a result, no revenue
was received by the Company in the fifteen month period to March 31, 2000.
ASI is currently in discussions with the airline about re-installation of
the equipment and extension of the term of agreement.
<PAGE> 7
PART 1. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
The following discussion should be read in conjunction with the accompanying
consolidated financial statements for the three month period ended March 31,
2000 and the Form 10-KSB for the fiscal year ended June 30, 1999.
RESULTS AND PLAN OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2000 COMPARED TO THREE MONTHS ENDED MARCH 31,
1999
No sales were made in the three month period ended March 31, 2000, pending
reinstallation of the Company's equipment in new Air Europa aircraft.
Similarly no sales were made in the three month period ending March 31, 1999.
The Company had a net loss of $125,329 in the three month period ended March
31, 2000 compared to a net loss of $72,465 in the three month period ended
March 31, 1999. Expenses increased from $72,465 in the three months ended
March 31, 1999 to $125,329 in the three months ended March 31, 2000 due to
higher consulting, directors, engineering and professional fees and office and
travel expenses, but after lower marketing expenses and officers' compenation.
The Company had a foreign currency translation loss of $113,745 for the three
months ended March 31, 2000 compared to a foreign currency translation gain
of $28,738 for the three month period ended March 31, 1999. As a result, the
Company recorded a comprehensive loss of $239,074 for the three month period
ended March 31, 2000 compared to a comprehensive loss of $43,727 for the three
month period ended March 31, 1999.
LIQUIDITY AND CAPITAL RESOURCES
The Company has used the proceeds from the sale of the securites of ASI
Entertainment Pty. Ltd. (prior to becoming a subsidiary) and from subsequent
capital raisings, for payment of operating costs to date. The Company has
entered into a license fee arrangement with Air Europa providing a fee of
$3,625 per calendar month for each ASI-9000 Program installed on its aircraft
from the advertising revenues received from that system. If insufficient
advertising funds are received to cover the license fee the Company absorbs
the shortfall. Air Europe receives any amounts over the $3,625 license fee
(after deduction of any direct costs, including payment of commissions, if
any, to any media sales representatives). The Company anticipates such
revenues to increase as the Company expands the development of its available
operations including additional ground communication and other services.
During the period from January 1, 1999 to March 31, 2000, Air Europa was
transferring the Company's equipment to different aircraft and no revenues
were received. The Company anticipates revenues to recommence on completion
of such reinstallation.
The Company's cash and cash equivalents increased from $18,050 at December 31,
1999, to $234,612 at March 31, 2000, primarily consisting of compensation
to officers, depreciation, amortization, office expenses and professional fees.
<PAGE> 8
expenses. The net loss from operating activities for such period was greater
than the net loss from operating activities for the period January 1, 1999 to
March 31, 1999 primarily as a result of higher consulting, directors and
engineering fees, office expenses and travel costs.
The Company received no revenues for the three months ending March 31, 2000
as the revenue generated from the Air Europa contract was suspended until the
ASI-9000 Programs are reinstalled on different Air Europa aircraft.
The cash flow of the Company from financing activities for the three months
ending March 31, 2000 was from the proceeds of the issuance of common stock.
The Company had no cash flow from investing activities for the three months
ending March 31, 2000.
The Company's marketing plan anticipates that the Company will install and
maintain the ASI-9000 on commercial airlines with little or no cost to the
airline. The Company will receive revenues from the sale of the advertising
space available on the video and audio programs as well as other forms as
developed. This marketing plan requires significant initial capital from the
Company for the production, acquisition, installation and maintenance of the
ASI-9000 Program possibly before any revenues are received from the sale of
the advertising space. The Company may not have sufficient funds to purchase
or install the equipment in which case the Company will have to seek
additional capital. The Company may raise additional capital by the sale
of its equity securities, through an offering of debt securities, or from
borrowing from a financial institution. The Company does not have a policy
on the amount of borrowing or debt that the Company can incur. The Company
may also attempt to negotiate with vendors or customer airlines revenue
sharing arrangements by which the Company will share the advertising revenue
if the vendor or customer airline provide capital for the equipment.
The Company purchases from ASIT Australia either the CMA-3200 hardware at
$25,000 per unit or the ACAMS hardware at $30,000 per unit. The Company
subcontracts for the production of the ASI-9000 integration technology.
The cost to the Company for installation of the ASI-9000 excluding the
hardware is approximately $5,000 per aircraft on for an installation unit
like those installed on the Air Europa aircraft per unit and up to $10,000
where the communications link is involved.
The Company has no commitments for capital expenditures in the near future.
The Company purchases or subcontracts (on a per item basis) for the ASI-9000
and installation integration technology. The Company will need to pay the
expenses of the installation of the ASI-9000. When the Company enters into
contracts for the ASI-9000 it will contract with ASIT Australia for purchase
of the equipment and then contract for the integration technology.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
<PAGE> 9
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
On August 27, 1999, the Company entered into an agreement with Hatfield
Aviation, Inc. ("Hatfield"), a company doing business as an aviation
electrical and overhaul repairer, and the shareholders of Hatfield (the
"Hatfield Shareholders"). Under the terms of the agreement, subject to
conditions precedent to closing, the Company will acquire 100% of the issued
and outstanding common stock of Hatfield. Consideration for the purchase
will be cash and the issuance of shares of ASI's common stock. The terms of
the agreement are currently being renegotiated, and as of the date of this
report, the Company had not made any advance cash payments nor issuances of
common stock to Hatfield. The Company intends to raise capital to close this
transaction through an offering of its equity securities.
On December 8, 1999 the Company signed a Heads of Agreement with AirTV
Limited, a company which is developing a global satellite television system
that interfaces with existing in-flight entertainment systems on board
aircraft to provide direct television programming. AirTV is seeking to
expand the system by offering an internet service including E-mail and
browser capabilities aboard aircraft equipped with satellite data
communications equipment. Under the Heads of Agreement:
a) ASI will lead the preliminary technical and commercial evaluation of the
proposed internet service under the direction of AirTV.
b) ASI will formulate preliminary specifications of the proposed internet
service which will include the primary components of the system, conduct
a preliminary evaluation of the technical and commercial viability of the
internet service, and develop a list of suppliers for the primary components.
c) Should ASI complete the work to the satisfaction of AirTV, it is the
intent of AirTV to award ASI an initial contract for the development for
AirTV of an on-board browser and to use the ASI ACAMS as a test platform
for such browser. If awarded, ASI will enjoy the status of being a preferred
supplier to AirTV for the development of the system software.
On May 12, 2000, ASI announced the release of its Data3Mail system, an
in-flight email system with full global coverage based on ASI's existing
flight proven hardware and software platform. The core software was
developed and tested in conjunction with INMARSAT, COMSAT and SITA (the
major providers of satellite communications and ground based infrastructure
for the airline industry). The system is cheaper and faster than any other
in-flight email system publicized as being in development. Data3Mail sends
and receives passenger Emails via the cockpit satellite data link rather than
the passenger telephone line. Messages are prioritised so as not to interfere
with cockpit communications and charged by the kilobit per transmission.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
None
<PAGE> 10
SIGNATURES
In accordance with the Exchange Act, the registrant has duly caused this
report to be signed on its behalf by the undersigned thereunto duly
authorized.
ASI ENTERTAINMENT, INC.
SIGNATURE TITLE DATE
By: /s/
Ronald J. Chapman President and Director May 12, 2000
By: /s/
Philip A. Shiels Principal Financial Officer May 12, 2000
and Director
By: /s/
Graham O. Chappell Director May 12, 2000
<PAGE> 11
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE BALANCE SHEET AT 03/31/00 (UNAUDITED)
AND STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED 03/31/00
(UNAUDITED). IT IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-END> MAR-31-2000
<CASH> 234612
<SECURITIES> 0
<RECEIVABLES> 9602
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 244214
<PP&E> 1053327
<DEPRECIATION> 0
<TOTAL-ASSETS> 1450710
<CURRENT-LIABILITIES> 123635
<BONDS> 0
0
0
<COMMON> 623
<OTHER-SE> 1326452
<TOTAL-LIABILITY-AND-EQUITY> 1450710
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 405477
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1851
<INCOME-PRETAX> (407328)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (407328)
<EPS-BASIC> 0
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</TABLE>
