<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[X] Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1999
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 333-66859
INTREPID CAPITAL CORPORATION
(Exact name of Registrant as specified in its Charter)
DELAWARE 59-3546446
(State of Incorporation) (I.R.S. Employer Identification No.)
50 NORTH LAURA STREET, SUITE 3550, JACKSONVILLE, FLORIDA 32202
(Address of principal executive offices) (Zip Code)
(904) 350-9999
(Registrant's telephone number)
N/A
(Former name, former address and former fiscal year, if changed since last
report)
----------------------------------------------------
Check whether the issuer: (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 [ ]
As of April 30, 1999, there were 2,214,525 shares of Common Stock,
$0.01 par value per share, outstanding, and 1,000 shares of Common Stock issued
and held in treasury.
Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]
<PAGE> 2
INTREPID CAPITAL CORPORATION AND SUBSIDIARIES
INDEX TO FORM 10-QSB
FOR THE QUARTER ENDED MARCH 31, 1999
PART I - FINANCIAL INFORMATION
<TABLE>
<CAPTION>
ITEM 1 FINANCIAL STATEMENTS
<S> <C>
Consolidated Balance Sheets of Intrepid Capital Corporation and
Subsidiaries as of March 31, 1999 and the Year Ended
December 31, 1998........................................................................ 3
Consolidated Statement of Operations of Intrepid Capital Corporation
and Subsidiaries for the Three Months Ended March 31, 1999 and the Combined
Statement of Operations of Intrepid Capital Management, Inc. and Capital
Research Corporation for the Three Months Ended March 31, 1998........................... 4
Consolidated Statement of Cash Flows of Intrepid Capital Corporation and
Subsidiaries for the Three Months Ended March 31, 1999 and the Combined
Statement of Cash Flows of Intrepid Capital Management, Inc. and Capital
Research Corporation for the Three Months Ended March 31, 1998........................... 5
Notes to Consolidated and Combined Financial Statements.................................. 6-8
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Liquidity and Capital Resources.......................................................... 9
Results of Operations.................................................................... 9-11
Year 2000 Matters........................................................................ 11
PART II - OTHER INFORMATION
ITEMS 1 AND ITEM 6 OTHER INFORMATION
Other Information........................................................................ 11-12
SIGNATURES.................................................................................... 13
</TABLE>
2
<PAGE> 3
INTREPID CAPITAL CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
March 31, 1999 and December 31, 1998
(unaudited)
<TABLE>
<CAPTION>
ASSETS 1999 1998
----------- ----------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 207,930 928,186
Investment, at fair value 129,437 144,574
Accounts receivable 366,224 195,018
Inventories 162,432 140,288
Prepaid and other assets 30,181 14,243
----------- ----------
Total current assets 896,204 1,422,309
Land 1,800,000 1,800,000
Property, plant, and equipment, net of accumulated
depreciation of $99,296 in 1999 and $85,579
in 1998 128,813 140,049
Goodwill, less accumulated amortization of $24,324 991,252 970,274
in 1999 and $2,703 in 1998
Other assets 66,652 76,467
----------- ----------
Total assets $ 3,882,921 4,409,099
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 229,677 696,757
Accrued expenses 418,870 271,803
Current portion of notes payable 173,626 212,933
Other 156,509 150,754
----------- ----------
Total current liabilities 978,682 1,332,247
Notes payable, less current portion 32,816 32,816
Deferred tax liability 560,634 560,634
----------- ----------
Total liabilities 1,572,132 1,925,697
----------- ----------
Stockholders' equity:
Common stock, $.01 par value. Authorized 15,000,000 shares; 22,155 22,155
issued 2,215,525 shares at March 31, 1999 and
December 31, 1998
Treasury stock at cost, 1,000 shares at March 31, 1999 (3,669) --
Additional paid-in capital 2,481,320 2,481,320
Accumulated deficit (189,017) (20,073)
----------- ----------
Total stockholders' equity 2,310,789 2,483,402
----------- ----------
$ 3,882,921 4,409,099
=========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE> 4
INTREPID CAPITAL CORPORATION AND SUBSIDIARIES
Consolidated Statement of Operations
Three months ended March 31, 1999
(unaudited)
INTREPID CAPITAL MANAGEMENT, INC.
AND CAPITAL RESEARCH CORPORATION
Combined Statement of Operations
Three months ended March 31, 1998
(unaudited)
<TABLE>
<CAPTION>
1999 1998
----------- ---------
<S> <C> <C>
Revenues:
Commissions $ 385,930 530,353
Asset management fees 225,015 162,890
Outside manager income -- 8,337
Unrealized gains/(losses) on investment (25,137) 38,550
Resinous material sales 396,846 --
Other 7,852 7,568
----------- ---------
Total revenues 990,506 747,698
----------- ---------
Expenses:
Salaries and employee benefits 505,432 413,658
Brokerage and clearing 118,169 175,767
Cost of resinous material sales 253,598 --
Outside manager expense -- 8,337
Advertising and marketing 60,861 23,803
Professional and regulatory fees 76,479 20,597
Occupancy and maintenance 43,128 19,050
Depreciation and amortization 35,338 6,546
Interest expense 4,851 4,811
Other 61,594 38,617
----------- ---------
Total expenses 1,159,450 711,186
----------- ---------
(Loss) income before income taxes (168,944) 36,512
Income tax expense -- --
----------- ---------
Net (loss) income $ (168,944) 36,512
=========== =========
Basic net (loss) income per share $ (0.08) 0.03
=========== =========
Weighted average shares outstanding 2,214,758 1,206,148
=========== =========
</TABLE>
See accompanying notes to consolidated and combined financial statements.
4
<PAGE> 5
INTREPID CAPITAL CORPORATION AND SUBSIDIARIES
Consolidated Statement of Cash Flows
Three months ended March 31, 1998
(unaudited)
INTREPID CAPITAL MANAGEMENT, INC.
AND CAPITAL RESEARCH CORPORATION
Combined Statement of Cash Flows
Three months ended March 31, 1998
(unaudited)
<TABLE>
<CAPTION>
1999 1998
--------- -------
<S> <C> <C>
Cash flows from operating activities:
Net (loss) income $(168,944) 36,512
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 35,338 6,546
Purchases of investment (10,000) (10,000)
Distributions from investment -- 152,785
Unrealized (gains) losses on investment 25,137 (38,550)
Change in assets and liabilities:
Accounts receivable (171,206) (84,820)
Inventories (22,144) --
Prepaid and other assets (6,123) (17,201)
Accounts payable (467,080) 90,432
Accrued expenses 104,468 --
Other liabilities 5,755 (5,899)
--------- -------
Net cash provided by (used in) operating activities (674,799) 129,805
--------- -------
Cash flows from investing activities:
Purchase of property, plant, and equipment (2,481) (11,808)
--------- -------
Net cash used in investing activities (2,481) (11,808)
--------- -------
Cash flows from financing activities:
Principal payments on notes payable (39,307) (10,681)
Distributions -- (40,473)
Purchase of Treasury stock (3,669) --
--------- -------
Net cash used in financing activities (42,976) (51,154)
--------- -------
Net increase (decrease) in cash and cash equivalents (720,256) 66,843
Cash and cash equivalents at beginning of period 928,186 182,343
--------- -------
Cash and cash equivalents at end of period $ 207,930 249,186
========= =======
Supplemental disclosure of cash flow information:
Cash paid during the period for interest $ 4,851 4,811
========= =======
========= =======
Supplemental disclosure of non-cash transactions:
Distribution to stockholders through the assumption of note payable $ -- 169,625
========= =======
</TABLE>
See accompanying notes to consolidated and combined financial statements.
5
<PAGE> 6
INTREPID CAPITAL CORPORATION AND SUBSIDIARIES
Notes to Consolidated and Combined Financial Statements
March 31, 1999
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OPERATIONS
(A) ORGANIZATION AND BASIS OF PRESENTATION
Intrepid Capital Corporation (the "Company") was formed on April
3, 1998 for the purpose of becoming a full service investment
management and consulting business. On December 16, 1998 as part
of a simultaneous merger and reorganization ("the Merger and
Reorganization"), the Company acquires all the outstanding shares
of common stock of Enviroq Corporation ("Enviroq"), Intrepid
Capital Management ("ICM") and Capital Research Corporation
("CRC") through a series of stock-for-stock and cash exchanges
with the former shareholders of each entity. The Company is
located in Jacksonville, Florida and conducts its business through
its three wholly-owned subsidiaries.
ICM provides investment consulting and investment management
services to individuals and corporations. ICM has received
authority to act as an investment manager in several states to
meet the needs of its customers, the majority of which are located
in the southeastern United States.
CRC is a registered broker/dealer with the Securities and Exchange
Commission (the "SEC") and is a member of the National Association
of Securities Dealers, Inc. ("NASD"). CRC is approved to conduct
general securities business on a fully-disclosed basis through a
clearing broker/dealer, which carries all accounts and prepares
and maintains all books and records for CRC's customers.
Enviroq conducts its operations through Sprayroq, Inc.
("Sprayroq"), a 50% owned subsidiary. Sprayroq is engaged in
development 59,100, commercialization, manufacture and marketing
of spray-applied resinous materials and in the treatment of
municipal wastewater.
The interim financial information included herein is unaudited.
Certain information and footnote disclosures normally included in
the financial statements have been condensed or omitted pursuant
to the rules and regulations of the SEC. The Company believes that
the disclosures made herein are adequate to make the information
presented not misleading. These financial statements should be
read in conjunction with the financial statements and related
notes contained in the Company's Annual Report on Form 10-KSB
filed with the SEC on April 14, 1999. Except as indicated herein,
there have been no significant changes from the financial data
published in the Company's Annual Report. In the opinion of
management, such unaudited information reflects all adjustments,
consisting of normal recurring accruals and other adjustments,
necessary for fair presentation of the unaudited information.
(B) PRINCIPLES OF CONSOLIDATION
In accordance with purchasing accounting, in which ICM and CRC
were deemed to be the acquiring entities in the Merger and
Reorganization, the accounts of Enviroq have been included since
December 16, 1998 (the date of the Merger and Reorganization).
The accompanying consolidated balance sheets as of March 31, 1999
and December 31, 1998, include the accounts of the Company and its
subsidiaries ICM, CRC and Enviroq.
The 1998 consolidated statements of operations and cash flows
include the accounts of ICM and CRC on a combined basis through
March 31, 1998.
6
<PAGE> 7
INTREPID CAPITAL CORPORATION AND SUBSIDIARIES
Notes to Consolidated and Combined Financial Statements
March 31, 1999
All significant intercompany balances and transactions have been
eliminated in consolidation. The Company, through its ownership in
Enviroq, controls the operations and activities of Sprayroq. There
is no recognition of minority interest in this subsidiary because
of its accumulated deficit position.
(C) EARNINGS PER SHARE
The Company applies the provisions of Statement of Financial
Accounting Standards (SFAS) No. 128, "Earnings per Share." This
statement governs the computation, presentation, and disclosure
requirements of earnings per share (EPS) for entities with
publicly held common stock.
Net income per share of common stock is computed based upon the
weighted average number of common shares and share equivalents
outstanding during the year. Stock warrants, when dilutive, are
included as share equivalents. For the three months ended March
31, 1999 and 1998, the Company had no dilutive common stock
equivalents.
The weighted average shares outstanding for the period ended March
31, 1998 represent the shares issued to ICM and CRC as part of the
Merger and Reorganization as if such shares had been outstanding
since January 1, 1998.
(D) COMPREHENSIVE INCOME
The Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 130, "Reporting Comprehensive
Income" (FAS 130), which is effective for fiscal years beginning
after December 15, 1997. FAS 130 establishes standards for
reporting total comprehensive income in financial statements, and
requires that companies explain the differences between total
comprehensive income and net income. Management has adopted this
statement in 1998. No differences between total comprehensive
income (loss) and net income (loss) existed in the financial
statements reported for the periods ended March 31, 1999 and 1998.
(2) RELATED PARTY TRANSACTION
The Company performs certain asset management functions for
Intrepid Capital, L.P., an investment limited partnership of which
the Company is general partner and a 2.54% equity interest holder.
For the three months ended March 31, 1999 and 1998, the Company
received $17,195 and $15,886, respectively, for such services.
7
<PAGE> 8
INTREPID CAPITAL CORPORATION AND SUBSIDIARIES
Notes to Consolidated and Combined Financial Statements
March 31, 1999
(3) SEGMENTS
During 1999 and 1998, the Company, ICM and CRC operated in two principal
segments, investment advisory services and broker/dealer services.
Enviroq constitutes a separate segment. The Company assesses and measures
operating performance based upon the net income derived from each of its
operating segments exclusive of the impact of corporate expenses. The
revenues and net income for each of the reportable segments are
summarized as follows for the three months ended March 31, 1999 and 1998:
<TABLE>
<CAPTION>
1999 1998
--------- --------
<S> <C> <C>
Revenues:
Investment advisory services segment $ 201,038 286,565
Broker/dealer services segment 392,284 536,133
Enviroq 397,184 --
Intersegment revenues -- (75,000)
--------- --------
$ 990,506 747,698
========= ========
Net (loss) income:
Investment advisory services segment $ 7,886 22,612
Broker/dealer services segment 25,417 13,900
Enviroq (97,388) --
Corporate (104,859) --
--------- --------
$(168,944) 36,512
========= ========
</TABLE>
The total assets for each of the reportable segments are summarized as
follows as of March 31, 1999 and December 31, 1998. Non-segment assets
consist primarily of other assets which are recorded at the parent
company level.
<TABLE>
<CAPTION>
1999 1998
---------- ---------
<S> <C> <C>
Assets:
Investment advisory services segment $ 215,179 231,272
Broker-dealer services segment 232,861 192,831
Enviroq 3,417,711 3,325,224
Corporate 17,170 654,772
---------- ---------
$3,882,921 4,409,099
========== =========
</TABLE>
8
<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Certain statements contained in this Quarterly Report on Form 10-QSB are
"forward-looking statements," within the meaning of the Private Securities
Litigation Reform Act of 1995, and are thus prospective in nature. Such
forward-looking statements reflect management's beliefs and assumptions and are
based on information currently available to management. The forward-looking
statements involve known and unknown risks, uncertainties and other factors that
may cause actual results, performance or achievements of Intrepid Capital
Corporation to differ materially from those expressed or implied in such
statements. There can be no assurance that such factors or other factors will
not affect the accuracy of such forward-looking statements
Liquidity and Capital Resources
The Company's current assets consist generally of cash, money market
funds and trading securities, which represents an investment in Intrepid
Capital, L.P. The Company has financed its growth in operations with funds
generated from stockholder capital and long-term loans. The Company's management
believes that existing capital and funds generated from operations will provide
the Company with sufficient resources to meet present cash and capital needs.
Subsequent to March 31, 1999, the Company sold its unimproved land,
approximately 10.6 acres of real estate in Jacksonville, Florida. Proceeds in
cash, in the amount of $1,808,812, were received on April 8, 1999.
For the three months ended March 31, 1999, net cash used in operating
activities was $674,799, primarily due to an increase in accounts receivable and
a substantial decrease in accounts payable. Net cash used in financing
activities was $42,976 due to principal payments on notes payable and the
purchase of 1,000 shares of treasury stock. Presently, the Company does not
anticipate significant capital expenditures that would require additional
capital resources.
The Company, through its subsidiary CRC, is subject to the net capital
requirements of the SEC, the NASD and other regulatory authorities. At March 31,
1999, CRC's regulatory net capital was $115,314, $65,314 in excess of its
minimum net capital requirement of $50,000.
Results of Operations
Three Months Ended March 31, 1999 Compared to the Three Months Ended
March 31, 1998
Total revenues were $990,506 for the three months ended March 31, 1999,
compared to $747,698 for the three months ended March 31, 1998, representing a
32.5% increase.
Commissions decreased $144,423, or 27.2%, to $385,930. Commissions
represent revenue earned from securities transactions through CRC. A
correspondent firm moved to a different clearing firm in March 1998, resulting
in decreased transaction volumes and revenues for the three months ended March
31, 1999.
9
<PAGE> 10
Asset management fees increased $62,125, or 38.1%, to $225,015. Asset
management fees represent revenue earned by ICM for investment advisory
services. The fees earned are generally a function of the overall fee rate
charged to each account and level of Assets Under Management ("AUM"). AUM was
$89.3 million at March 31, 1999, compared to $68.5 million at March 31, 1998.
The increase in asset management fees for the three months ended March 31, 1999
relate directly to the net increase in AUM through investment performance, the
addition of new client accounts and the elimination of external portfolio
managers.
Outside manager income decreased $8,337, or 100.0%. Outside manager
income represents revenue earned by ICM for asset management accounts, whereby
ICM utilizes external portfolio management to provide professional management of
the accounts. All outside manager income has been eliminated as a result of
management's decision to internally manage accounts that were previously managed
externally.
Unrealized gain (losses) on investment decreased $63,687, or 165.2%, to
($25,137) due to a decrease in the performance of the Company's investment in
Intrepid Capital, L.P.
Resinous material sales of $396,846 are attributable to the acquisition
of Enviroq in December 1998.
Total expenses were $1,159,450 for the three months ended March 31,
1999, compared to $711,186 for the three months ended March 31, 1998,
representing a 63.0% increase.
Salaries and employee benefits increased $91,774, or 22.2%, to
$505,432. The increases are due to the addition of new employees, annual
increases in salaries and the acquisition of Enviroq in December 1998. During
the three months ended March 31, 1999, the Company hired one new employee and
added a full quarter of Enviroq's salaries and benefits.
Brokerage and clearing expenses decreased $57,598, or 32.8%, to
$118,169. Brokerage and clearing expenses represent the securities transaction
costs directly related to commission revenue earned by CRC. These costs, paid to
the clearing broker-dealer, increase at a declining rate because of volume
discounting. A correspondent firm moved to a different clearing firm in March
1998, resulting in decreased transaction volumes and expenses for the three
months ended March 31, 1999.
Cost of resinous material sales of $253,598 is attributable to the
acquisition of Enviroq in December 1998.
Outside manager expense decreased $8,337, or 100.0%. Outside manager
expense directly offsets the outside manager income earned by ICM. All outside
manager expense has been eliminated as a result of management's decision to
internally manage accounts that were previously managed externally.
Advertising and marketing expenses increased $37,058, or 155.7%, to
$60,861. The increase can be attributed to additional travel and marketing
expenses ICM incurred to increase name recognition, enhance client relationships
and the acquisition of Enviroq in December 1998.
Professional and regulatory expenses increased $55,882, or 271.3%, to
$76,479 due to an increase in outside professional fees for additional services
required as a public entity.
Other expenses increased $22,972, or 59.5%, to $61,594 due to an
increase of general and administrative expenses and to the acquisition of
Enviroq in December 1998.
10
<PAGE> 11
Year 2000 Matters
The Company is working to ensure that its operating and processing
systems will, along with those of its service providers and vendors, continue to
function when the Year 2000 ("Y2K") arrives. The Company has developed and
implemented a comprehensive plan to prepare its computer systems and
applications for Y2K, as well as to identify and address any other Y2K
operational issues which may affect operations.
Due to the potential impact of Y2K on the financial services industry,
the SEC, the NASD and other regulatory and self-regulatory securities
organizations have monitored and required reports from their members concerning
Y2K and encouraged planning for system wide function tests. Y2K problems arise
because of concern that widely distributed information technology systems and
imbedded microprocessors date recognition and processing functions which
designate and recognize a year by the year's last two digits will not be able to
distinguish a year in the twenty-first century from one in the twentieth
century.
Management has determined that Y2K will not pose significant
operational problems for its internal computer systems. Management believes the
internal modification and upgrade costs associated with The Company's operations
will not be material and will be expensed as incurred. Mission critical systems,
as well as third party vendors, have been identified and testing for Y2K
readiness is on schedule to be completed by June 30, 1999.
Due to the enormous task facing the securities industry and the
interdependent nature of securities transactions, there can be no assurances
with respect to Y2K's impact on the Company. Disruptions in the economy
generally and in the United States investment markets as a result of Y2K could
materially adversely affect the Company and its subsidiaries. Specifically,
unexpected volatilities within and possible suspension of trading in the
securities industry generally could adversely impact the Company's revenues and
its ability to do business because a significant portion of the Company's
revenues are based solely upon its ability to make investments and securities
trades for its customers and the net asset value of funds under management. The
amount of potential lost revenue cannot be reasonably estimated at this time.
Management believes that it has an effective program in place to manage
any contingencies arising out of Y2K. This contingency plan involves, among
other actions, manual workarounds and adjusting staffing strategies.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There are no material legal proceedings pending, or to the Company's
knowledge, threatened against the Company or any of its subsidiaries.
11
<PAGE> 12
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
--------
<TABLE>
<CAPTION>
Exhibit No. Description
----------- -----------
<S> <C> <C>
27 Financial Data Schedule (for SEC use only)
(b) Reports on Form 8-K:
On April 16, 1999 the Company filed a Current Report on Form 8-K
reporting the disposition of the Company's unimproved land.
</TABLE>
12
<PAGE> 13
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
INTREPID CAPITAL CORPORATION
By: /s/ Forrest Travis
---------------------------------
Forrest Travis, President and
Chief Executive Officer
Dated: May 14, 1999
By: /s/ Brian S. Dickens
---------------------------------
Brian S. Dickens, Chief Financial
Officer (Principal Accounting Officer)
Dated: May 14, 1999
13
<PAGE> 14
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Description of Exhibit
- ----------- ----------------------
<S> <C>
27 Financial Data Schedule (for SEC use only)
</TABLE>
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 1999 AND FOR THE
QUARTER THEN ENDED. THIS INFORMATION IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<EXCHANGE-RATE> 1
<CASH> 207,930
<SECURITIES> 129,437
<RECEIVABLES> 366,224
<ALLOWANCES> 0
<INVENTORY> 162,432
<CURRENT-ASSETS> 896,204
<PP&E> 1,928,813
<DEPRECIATION> (99,296)
<TOTAL-ASSETS> 3,882,921
<CURRENT-LIABILITIES> 978,682
<BONDS> 0
0
0
<COMMON> 22,155
<OTHER-SE> 2,288,634
<TOTAL-LIABILITY-AND-EQUITY> 3,882,921
<SALES> 0
<TOTAL-REVENUES> 990,506
<CGS> 253,598
<TOTAL-COSTS> 1,159,450
<OTHER-EXPENSES> 61,594
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,851
<INCOME-PRETAX> (168,944)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (168,944)
<EPS-PRIMARY> (0.08)
<EPS-DILUTED> (0.08)
</TABLE>
