FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
OR ( ) TRANSITION REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended June 30, 1999
Commission File Number 333-61961
SALOMON SMITH BARNEY GLOBAL DIVERSIFIED FUTURES FUND L.P.
(Exact name of registrant as specified in its charter)
New York 13-4015586
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
c/o Smith Barney Futures Management Inc.
390 Greenwich St. - 1st Fl.
New York, New York 10013
(Address and Zip Code of principal executive offices)
(212) 723-5424
(Registrant's telephone number, including area code)
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 X No
<PAGE>
SALOMON SMITH BARNEY GLOBAL DIVERSIFIED FUTURES FUND L.P.
FORM 10-Q
INDEX
Page
Number
PART I - Financial Information:
Item 1. Financial Statements:
Statement of Financial Condition at
June 30, 1999 (unaudited). 3
Statement of Income and Expenses and Partners'
Capital for the period from June 15, 1998 (date
Partnership was organized) to June 30, 1999
(unaudited). 4
Notes to Financial Statements
(unaudited) 5 - 9
Item 2. Management's Discussion and
Analysis of Financial Condition
and Results of Operations 10 - 12
Item 3. Quantitative and Qualitative
Disclosures of Market Risk 13 - 14
PART II - Other Information 15
2
<PAGE>
PART I
ITEM 1. FINANCIAL STATEMENTS
SALOMON SMITH BARNEY GLOBAL DIVERSIFIED FUTURES FUND L.P.
STATEMENT OF FINANCIAL CONDITION
JUNE 30,
1999
ASSETS: (Unaudited)
Equity in commodity futures trading account:
Cash $ 54,956,533
Net unrealized appreciation
on open futures contracts 1,976,062
Commodity options owned, at market value
(cost $82,666) 52,914
---------------------
56,985,509
Interest receivable 158,040
=====================
$ 57,143,549
=====================
LIABILITIES AND PARTNERS' CAPITAL:
Liabilities:
Accrued expenses:
Commissions $ 261,402
Management fees 92,230
Incentive fees 158,285
Other expense 63,713
Due to SSB 580,755
=====================
1,156,385
=====================
Partners' Capital:
General Partner, 569.6595 Unit
equivalents outstanding in 1999 562,168
Limited Partners, 56,163.4179 Unit
of Limited Partnership
Interest outstanding in 1999 55,424,996
---------------------
55,987,164
---------------------
$ 57,143,549
=====================
See Notes to Financial Statements.
3
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SALOMON SMITH BARNEY GLOBAL DIVERSIFIED FUTURES FUND L.P.
STATEMENT OF INCOME AND EXPENSES AND PARTNERS' CAPITAL
(UNAUDITED)
<TABLE>
<CAPTION>
PERIOD FROM
JUNE 15, 1998
(DATE PARTNERSHIP
THREE MONTHS WAS ORGANIZED
ENDED TO
JUNE 30, JUNE 30,
---------------------------
1999 1999
---------------------------
<S> <C> <C>
Income:
Net gains (losses) on trading of commodity
futures:
Realized losses on closed positions $ (1,130,692) $ (1,616,178)
Change in unrealized gains/losses on open
positions 1,102,620 1,946,310
------------ -----------
(28,072) 330,132
Less, brokerage commissions including clearing
fees of $22,197 and $30,122, respectively (718,610) (1,049,382)
------------ -----------
Net realized and unrealized losses (746,682) (719,250)
Interest income 426,122 617,244
------------ -----------
(320,560) (102,006)
------------ -----------
Expenses:
Management fees 242,398 348,439
Incentive fees 114,175 158,285
Other 40,451 767,106
------------ ----------
397,024 1,273,830
------------ ----------
Net loss (717,584) (1,375,836)
Proceeds from offering - Limited Partner 33,380,000
- General Partner 338,000
Additions - Limited Partner 23,407,000 23,407,000
General Partner 238,000 238,000
------------ ------------
Net increase in Partners' capital 22,927,416 55,987,164
Partners' capital, beginning of period 33,059,748 --
------------ ------------
Partners' capital, end of period $ 55,987,164 $ 55,987,164
------------ ------------
Net asset value per Unit
(Units outstanding 56,733.0774 at
June 30, 1999) $ 986.85 $ 986.85
------------ ----------
Net gain (loss) per Unit of Limited Partnership
Interest and General Partner Unit equivalent $ 6.37 $ (13.15)
------------ ----------
Redemption net asset value per Unit $ 996.55 $ 996.55
------------ ----------
</TABLE>
See Notes to Financial Statements
4
<PAGE>
SALOMON SMITH BARNEY GLOBAL DIVERSIFIED FUTURES FUND L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 1999
(Unaudited)
1. General:
Salomon Smith Barney Global Diversified Futures Fund L.P. (the
"Partnership") is a limited partnership organized under the laws of the State of
New York, on June 15, 1998 to engage in the speculative trading of a diversified
portfolio of commodity interests including futures contracts, options and
forward contracts. The commodity interests that are traded by the Partnership
are volatile and involve a high degree of market risk. The Partnership commenced
trading operations on February 2, 1999.
Between November 25, 1998 (commencement of offering period) and February 1,
1999, 33,379 Units of limited partnership interest and 337 Units equivalents
representing the general partner's contribution were sold at $1,000 per unit.
The proceeds of the offering were held in an escrow account until February 2,
1999, at which time they were turned over to the Partnership for trading.
Smith Barney Futures Management Inc. acts as the general partner (the
"General Partner") of the Partnership. The Partnership=s commodity broker is
Salomon Smith Barney Inc. ("SSB"). SSB is an affiliate of the General Partner.
The General Partner is wholly owned by Salomon Smith Barney Holdings Inc.
("SSBH"), which is the sole owner of SSB. SSBH is a wholly owned subsidiary of
Citigroup Inc. All trading decisions are made for the Partnership by Campbell &
Company, Inc., ("Campbell"), Eagle Trading Systems, Inc. ("Eagle"), Eckhardt
Trading Company ("Eckhardt") and Rabar Market Research, Inc. ("Rabar")
(collectively, the ("Advisors").
The accompanying financial statements are unaudited but, in the opinion of
management, include all adjustments (consisting only of normal recurring
adjustments) necessary for a fair presentation of the Partnership's financial
condition at June 30, 1999 and the results of its operations for the period from
June 15, 1998 (date Partnership was organized) to June 30, 1999. These financial
statements present the results of interim periods and do not include all
disclosures normally provided in annual financial statements. It is suggested
that these financial statements be read in conjunction with the financial
statements and notes included in the Partnership=s annual report on Form 10-K
filed with the Securities and Exchange Commission for the year ended December
31, 1998.
5
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Due to the nature of commodity trading, the results of operations for
the interim periods presented should not be considered indicative of the results
that may be expected for the entire year.
2. Net Asset Value Per Unit:
Changes in net asset value per Unit for the period from June 15, 1998,
(date Partnership was organized) to June 30, 1999 was as follows:
PERIOD FROM
JUNE 15, 1998
(DATE PARTNERSHIP
THREE-MONTHS WAS ORGANIZED)
ENDED TO
JUNE 30, 1999 JUNE 30, 1999
------------- ------------
Net realized and unrealized
gains (losses) $ 0.53 $ 1.34
Interest income 8.68 14.35
Expenses (10.20) (36.20)
Other 7.36 7.36
------- ---------
Increase (decrease) for
period 6.37 (13.15)
Net Asset Value per Unit,
beginning of period 980.48 1,000.00
------- ---------
Net Asset Value per Unit,
end of period $ 986.85 $ 986.85
======= =========
Redemption Net Asset Value
Per Unit $ 996.55 $ 996.55
======= =========
* For the purpose of a redemption, any remaining deferred liability for
reimbursement of offering and organization expenses will not reduce
redemption net asset value per unit. (see note 3)
3. Offering and Organization Costs:
Offering and organization expenses of approximately $700,000 relating
to the issuance and marketing of the Partnership's Units offered were initially
paid by SSB. These costs have been recorded as due to SSB in the statement of
financial condition and as expense in the statement of operations for the period
ended June 30, 1999. These costs are being reimbursed to SSB by the Partnership
in 24 equal monthly installments (together with interest at the prime rate
quoted by the Chase Manhattan Bank).
6
<PAGE>
Based on this calculation, as of June 30, 1999, $129,399 of these costs
are currently payable to SSB, of which the Partnership has reimbursed SSB
$102,442 and $26,957 remains payable.
In addition, the Partnership has recorded interest expense of $20,710,
of which the Partnership has paid SSB $16,803 and $3,907 remains payable.
The remaining deferred liability for these costs due to SSB of $549,891
(exclusive of interest charges) will not reduce Net Asset Value per Unit for any
purpose (other than financial reporting), including calculation of advisory and
brokerage fees and the redemption value of Units.
4. Trading Activities:
The Partnership was formed for the purpose of trading contracts in a
variety of commodity interests, including derivative financial instruments and
derivative commodity instruments. The results of the Partnership's trading
activity are shown in the statement of income and expenses and partners'
capital.
The Customer Agreement between the Partnership and SSB gives the
Partnership the legal right to net unrealized gains and losses.
All of the commodity interests owned by the Partnership are held for
trading purposes. The fair value of these commodity interests, including options
thereon, if applicable, at June 30, 1999 was $2,028,976 and the average fair
value during the period from February 2, 1999 (commencement of trading
operations) to June 30, 1999, based on monthly calculation, was $1,204,613.
5. Financial Instrument Risk
The Partnership is party to financial instruments with off-balance sheet
risk, including derivative financial instruments and derivative commodity
instruments, in the normal course of its business. These financial instruments
may include forwards, futures and options, whose value is based upon an
underlying asset, index, or reference rate, and generally represent future
commitments to exchange currencies or cash flows, to purchase or sell other
financial instruments at specific terms at specified future dates, or, in the
case of derivative commodity instruments, to have a reasonable possibility to be
settled in cash, through physical delivery or with another financial instrument.
These instruments may be traded on an exchange or over-the-counter ("OTC").
Exchange traded instruments are standardized and include futures and certain
option contracts. OTC contracts are negotiated between contracting parties and
7
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include forwards and certain options. Each of these instruments is subject to
various risks similar to those related to the underlying financial instruments
including market and credit risk. In general, the risks associated with OTC
contracts are greater than those associated with exchange traded instruments
because of the greater risk of default by the counterparty to an OTC contract.
Market risk is the potential for changes in the value of the financial
instruments traded by the Partnership due to market changes, including interest
and foreign exchange rate movements and fluctuations in commodity or security
prices. Market risk is directly impacted by the volatility and liquidity in the
markets in which the related underlying assets are traded.
Credit risk is the possibility that a loss may occur due to the failure
of a counterparty to perform according to the terms of a contract. Credit risk
with respect to exchange traded instruments is reduced to the extent that an
exchange or clearing organization acts as a counterparty to the transactions.
The Partnership's risk of loss in the event of counterparty default is typically
limited to the amounts recognized in the statement of financial condition and
not represented by the contract or notional amounts of the instruments. The
Partnership has concentration risk because the sole counterparty or broker with
respect to the Partnership's assets is SSB.
The General Partner monitors and controls the Partnership's risk
exposure on a daily basis through financial, credit and risk management
monitoring systems and, accordingly believes that it has effective procedures
for evaluating and limiting the credit and market risks to which the Partnership
is subject. These monitoring systems allow the General Partner to statistically
analyze actual trading results with risk adjusted performance indicators and
correlation statistics. In addition, on-line monitoring systems provide account
analysis of futures, forwards and options positions by sector, margin
requirements, gain and loss transactions and collateral positions.
The notional or contractual amounts of these instruments, while not
recorded in the financial statements, reflect the extent of the Partnership's
involvement in these instruments.
8
<PAGE>
At June 30, 1999, the notional or contractual amounts of the
Partnership's commitment to purchase and sell these instruments was $145,800,631
and $544,065,948, respectively, as detailed below. All of these instruments
mature within one year of June 30, 1999. However, due to the nature of the
Partnership's business, these instruments may not be held to maturity. At June
30, 1999, the fair value of the Partnership=s derivatives, including options
thereon, if applicable, was $2,028,976, as detailed below.
JUNE 30, 1999
NOTIONAL OR CONTRACTUAL
AMOUNT OF COMMITMENTS
TO PURCHASE TO SELL FAIR VALUE
Currencies:
- - OTC Contracts $ 66,387,737 $ 76,445,423 $ (344,199)
- - Exchange Traded Contracts 13,224,819 21,835,991 85,626
Energy 9,925,035 -- 503,393
Grains 133,000 4,238,650 83,466
Interest Rates U.S. 48,766 144,168,861 329,036
Interest Rates Non-U.S 20,940,808 286,285,897 1,188,711
Livestock -- 199,280 38,210
Metals 10,900,680 9,573,810 (143,464)
Softs 58,408 1,067,320 9,858
Indices 24,181,378 250,716 278,339
------------ ------------ -----------
Totals $145,800,631 $554,065,948 $ 2,028,976
============ ============ ===========
9
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Liquidity and Capital Resources
The Partnership does not engage in the sale of goods or services. Its
only assets are its equity in its commodity futures trading account, consisting
of cash, net unrealized appreciation (depreciation) on open futures and forward
contracts, commodity options, if applicable, and interest receivable. Because of
the low margin deposits normally required in commodity futures trading,
relatively small price movements may result in substantial losses to the
Partnership. While substantial losses could lead to a decrease in liquidity, no
such losses occurred during the period ended June 30, 1999.
The Partnership's capital consists of the capital contributions of the
partners as increased or decreased by gains or losses on commodity futures
trading, expenses, interest income, additions and redemptions of Units and
distributions of profits, if any.
For the period ended June 30, 1999, Partnership capital increased 66.0%
from $33,718,000 (proceeds from offering) to $55,987,164. This increase was
primarily attributable to the additional sales of 23,015.0773 Units totaling
$23,645,000 which was partially offset by a net loss from operations of
$1,375,836 for the period ended June 30, 1999.
Risk of Computer System Failure (Year 2000 Issue)
The Year 2000 issue is the result of existing computers in
many businesses using only two digits to identify a year in the date field.
These computers and programs, often referred to as "information technology,"
were designed and developed without considering the impact of the upcoming
change in the century. If not corrected, many computer applications could fail
or create erroneous results at the Year 2000. Such systems and processes are
dependent on correctly identifying dates in the next century.
The General Partner administers the business of the
Partnership through various systems and processes maintained by SSBH and SSB. In
addition, the operation of the Partnership is dependent on the capability of the
Partnership's Advisors, the brokers and exchanges through which the Advisors
trade, and other third parties to prepare adequately for the Year 2000 impact on
their systems and processes. The Partnership itself has no systems or
information technology applications relevant to its operations.
The General Partner, SSB, SSBH and their parent organization
Citigroup Inc. have undertaken a comprehensive, firm-wide evaluation of both
10
<PAGE>
internal and external systems (systems related to third parties) to determine
the specific modifications needed to prepare for the year 2000. The combined
Year 2000 program in SSB is expected to cost approximately $140 million over the
four years from 1996 through 1999, and has involved over 450 people. As of June
30, 1999, SSB has completed all compliance and certification work.
The systems and components supporting the General Partner's
business that require remediation have been brought into Year 2000 compliance.
Final testing and certification was completed as of June 30, 1999.
This expenditure and the General Partner's resources dedicated
to the preparation for Year 2000 do not and will not have a material impact on
the operation or results of the Partnership.
The General Partner has received statements from the Advisors
that they have completed their Year 2000 remediation program.
The most likely and most significant risk to the Partnership
associated with the lack of Year 2000 readiness is the failure of outside
organizations, including the commodities exchanges, clearing organizations, or
regulators with which the Partnership interacts to resolve their Year 2000
issues in a timely manner. This risk could involve the inability to determine
the value of the Partnership at some point in time and would make effecting
purchases or redemptions of Units in the Partnership infeasible until such
valuation was determinable.
SSB has successfully participated in industry-wide testing
including: The Streetwide Beta Testing organized by the Securities Industry
Association (SIA), a government securities clearing test with the Federal
Reserve Bank of New York, The Depository Trust Company, and The Bank of New
York, and Futures Industry Association participants test. The firm also
participated in the streetwide testing that was conducted from March through May
1999.
It is possible that problems may occur that would require some
time to repair. Moreover, it is possible that problems will occur outside SSBH
for which SSBH could experience a secondary effect. Consequently, SSBH has
prepared comprehensive, written contingency plans so that alternative procedures
and a framework for critical decisions are defined before any potential crisis
occurs.
The goal of year 2000 contingency planning is a set of
alternate procedures to be used in the event of a critical system failure by a
supplier of counterparty. Planning work was completed in January 1999, and
testing of alternative procedures will be completed in the third and fourth
quarter of 1999.
11
<PAGE>
Results of Operations
During the Partnership's second quarter of 1999, the Partnership's net
asset value per Unit increased 0.6% from $980.48 to $986,85. The Partnership
experienced a net trading loss before brokerage commissions and related fees in
the period ended June 30, 1999 of $28,072. Losses were primarily attributable to
the trading of commodity futures in currencies, livestock, metals, softs and
energy and were partially offset by gains in U.S. and non-U.S. interest rates,
grains and indices. The Partnership commenced trading operations on February 2,
1999, and as a result, comparative information is not available.
Commodity futures markets are highly volatile. Broad price fluctuations and
rapid inflation increase the risks involved in commodity trading, but also
increase the possibility of profit. The profitability of the Partnership depends
on the existence of major price trends and the ability of the Advisors to
identify correctly those price trends. Price trends are influenced by, among
other things, changing supply and demand relationships, weather, governmental,
agricultural, commercial and trade programs and policies, national and
international political and economic events and changes in interest rates. To
the extent that market trends exist and the Advisors are able to identify them,
the Partnership expects to increase capital through operations.
Interest income on 80% of the Partnership's daily equity maintained in cash
was earned on the monthly average 30-day U.S. Treasury bill rate determined
weekly by SSB based on the non-competitive yield on three month U.S. Treasury
bills maturing in 30 days.
Brokerage commissions are calculated on the Partnership's net asset value
as of the last day of each month and, therefore, vary according to trading
performance, additions and redemptions.
Management fees are calculated on the portion of the Partnership's net
asset value allocated to each Advisor at the end of the month and, therefore,
are affected by trading performance, additions and redemptions
Incentive fees are based on the new trading profits generated by each
Advisor as defined in the advisory agreements between the Partnership, the
General Partner and each Advisor. Trading performance for the three months ended
June 30, 1999 and the period from June 15, 1998 (date Partnership was organized)
to June 30, 1999 resulted in an incentive fee accrual of $114,175 and $158,285,
respectively, payable March 31, 2000.
12
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Item 3. Quantitative and Qualitative Disclosures of Market Risk
Introduction
The Partnership is a speculative commodity pool. The market sensitive
instruments held by it are acquired for speculative trading purposes, and all or
substantially all of the Partnership's assets are subject to the risk of trading
loss. Unlike an operating company, the risk of market sensitive instruments is
integral, not incidental, to the Partnership's main line of business.
Market movements result in frequent changes in the fair market value of
the Partnership's open positions and, consequently, in its earnings and cash
flow. The Partnership's market risk is influenced by a wide variety of factors,
including the level and volatility of interest rates, exchange rates, equity
price levels, the market value of financial instruments and contracts, the
diversification effects among the Partnership's open positions and the liquidity
of the markets in which it trades.
The Partnership rapidly acquires and liquidates both long and short
positions in a wide range of different markets. Consequently, it is not possible
to predict how a particular future market scenario will affect performance, and
the Partnership's past performance is not necessarily indicative of its future
results.
Value at Risk is a measure of the maximum amount which the Partnership
could reasonably be expected to lose in a given market sector. However, the
inherent uncertainty of the Partnership's speculative trading and the recurrence
in the markets traded by the Partnership of market movements far exceeding
expectations could result in actual trading or non-trading losses far beyond the
indicated Value at Risk or the Partnership's experience to date (i.e., "risk of
ruin"). In light of the foregoing as well as the risks and uncertainties
intrinsic to all future projections, the inclusion of the quantification
included in this section should not be considered to constitute any assurance or
representation that the Partnership's losses in any market sector will be
limited to Value at Risk or by the Partnership's attempts to manage its market
risk.
13
<PAGE>
The following table indicates the trading Value at Risk associated with
the Partnership's open positions by market category as of June 30, 1999. All
open position trading risk exposures of the Partnership have been included in
calculating the figures set forth below. As of June 30, 1999, the Partnership's
total capitalization was approximately $55,987,164.
June 30, 1999
% of Total
Market Sector Value at Risk Capitalization
Currencies
OTC Contracts $1,009,762 1.80%
Exchange Traded Contracts 352,655 0.63%
Energy 657,000 1.17%
Grains 158,454 0.28%
Interest rate U.S. 633,408 1.13%
Interest rate Non-U.S 1,509,535 2.71%
Metals 399,250 0.71%
Softs 54,000 0.10%
Livestock 7,200 0.01%
Indices 1,406,447 2.51%
---------- -----
Total $6,187,771 11.05%
========== =====
14
<PAGE>
PART II OTHER INFORMATION
Item 1. Legal Proceedings - None
For information concerning a purported class action
against numerous broker-dealers including Salomon Smith Barney,
see the description that appears in the sixth paragraph under the
caption Item 3. "Legal Proceedings" on Form 10-K for the year
ending December 31, 1998. SSBH has filed a motion to dismiss the
amended complaint.
Item 2. Changes in Securities and Use of Proceeds -
The Partnership continues to offer units at the net asset value
per Unit as of the end of each quarter. For the three and six months
ended June 30, 1999, there were additional sales of 22,783.4178 Units
totaling $23,407,000 and contributions by the General Partner
representing 231.6595 Unit equivalents totaling $238,000.
Proceeds from the sale of additional Units are used in the
trading of commodity interests including futures contracts, options
and forward contracts.
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information - None
Item 6. (a) Exhibits - None
(b) Reports on Form 8-K - None
15
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SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
SALOMON SMITH BARNEY GLOBAL DIVERSIFIED FUTURES FUND L.P.
By: Smith Barney Futures Management Inc.
(General Partner)
By: /s/ David J. Vogel, President
David J. Vogel, President
Date: 8/13/99
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
By: Smith Barney Futures Management Inc.
(General Partner)
By: /s/ David J. Vogel, President
David J. Vogel, President
Date: 8/13/99
By /s/ Daniel A. Dantuono
Daniel A. Dantuono
Chief Financial Officer and
Director
Date: 8/13/99
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001068237
<NAME> SSB Global Diversified Futures Fund L.P.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 54,956,533
<SECURITIES> 2,028,976
<RECEIVABLES> 158,040
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 57,143,549
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 57,143,549
<CURRENT-LIABILITIES> 1,156,385
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 55,987,164
<TOTAL-LIABILITY-AND-EQUITY> 57,143,549
<SALES> 0
<TOTAL-REVENUES> (102,006)
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,273,830
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,375,836)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,375,836)
<EPS-BASIC> (13.15)
<EPS-DILUTED> 0
</TABLE>
