<PAGE>
QUARTERLY REPORT FOR SMALL BUSINESS ISSUERS SUBJECT
TO THE 1934 ACT REPORTING REQUIREMENTS
FORM 10-QSB
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(MARK ONE)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 1995
-------------
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from ______________ to ______________
Commission file number #0-8463
-------
PISMO COAST VILLAGE, INC.
- - --------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
California 95-2990441
- - --------------------------------------------------------------------------------
(State or other jurisdiction of (IRS Employer I.D. Number)
incorporation or organization)
165 South Dolliver Street, Pismo Beach, California 93449
- - --------------------------------------------------------------------------------
(Address of Principal Executive Offices)
(Issuer's telephone number) (805) 773-5649
--------------
- - --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15 (d) of the Exchange Act during the past 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
----- -----
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and 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 X No _____
-----
Page 1 of 16
<PAGE>
FORM 10-QSB
State the number of shares outstanding of each of the issuers classes of common
equity, as of the latest practicable date: -1800-
------
Page 2 of 16
<PAGE>
PART I
__________
FINANCIAL INFORMATION
_________________________
ITEM 1 - FINANCIAL STATEMENTS
The following financial statements and related information are included in this
Form 10-QSB, Quarterly Report.
1. Accountant's Review Report
2. Balance Sheets
3. Statement of Operations and Retained Earnings (Deficit)
4. Statement of Cash Flows
5. Notes to Financial Statements (Unaudited)
The financial information included in Part 1 of this Form 10-QSB has been
reviewed by Glenn, Burdette, Phillips and Bryson, the Company's Certified Public
Accountants, and all adjustments and disclosures proposed by said firm have been
reflected in the data presented. The information furnished reflects all
adjustments which, in the opinion of management, are necessary to a fair
statement of the results for the interim periods.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
- - ---------------------
The Company develops its income from two sources, Resort Operations, which
consists of monies earned from site rentals and from rental of RV storage space,
and the second source is Retail Operations which consists of a General Store and
the RV Parts and Service Facilities.
Income from Resort Operations for the three month period ended June 30, 1995,
increased $58,314, or 13.3%, above the same period in 1994, and for the nine
month period ended June 30, 1995, increased $17,263, or 1.5%, above the same
period in 1994. The increase in income from resort operations is the result of
two factors. The first factor is that spring break fell in the third quarter
rather than in the second quarter as it did in 1994, and the second factor is
that in 1994 the mid-week rates were discounted by 50% and in 1995 the mid-week
rates were discounted by 25% which produced more revenue per site. In addition,
RV storage revenues grew to 8.8% above the same nine month period last year
ended June 30, 1994. This growth is attributed to an increase of 34 RV units,
or a 4.6% increase in storage inventory, and the conclusion of a 25% discount
program which was in effect in 1994.
Page 3 of 16
<PAGE>
Retail operations revenue increased by $7,842, or 7.8%, for the three month
period ended June 30, 1995, as a result of spring vacation falling in the third
quarter rather than in the second quarter as compared to 1994. For the nine
month period ended June 30, 1995, Retail Operations decreased by $15,272, or
5.9%, which is the direct result of a 13.8% drop in occupancy during this period
compared with the same period in 1994. This drop in occupancy is attributed to
the 68 days of rain experienced during the nine month period ending June 30,
1995.
The Company currently has no plans to increase or decrease its property and
anticipates it will continue to operate the restaurant by lease to an outside
vendor.
Operating expenses for the three month period ending June 30, 1995, were managed
to a slight increase of $3,225, or .8%, over the same period in 1994 and for the
nine month period ending June 30, 1995, increased by $25,479, or 2.1%, over the
same period in 1994. This increase is a direct result of $21,955 in storm
related expenses.
Cost of Goods Sold expenses for the three month period ended June 30, 1995,
increased to 61.7% compared to 56.5% for the same period in 1994, and for the
nine month period ending June 30, 1995, costs are down to 56.4% which is the
same as for the same period in 1994. The Cost of Goods Sold variance comparing
quarter to quarter is a result of the sales mix of Goods and Services sold at
the retail outlets.
Interest expense for the three month period ended June 30, 1995, was reduced by
$21, or .2%, below the same period in 1994, and for the nine month period ending
June 30, 1995, was reduced by $989, or 3.4%, below the same period in 1994.
These reductions are a result of increase of payments to principal owed.
Income before provisions for taxes on income for the quarter ended June 30,
1995, was $42,170 compared to a loss of ($6,429) for the same period in 1994,
which is a result of Spring Vacation occurring in the third quarter rather than
in the second quarter as it did in 1994. Net loss before provisions for taxes
on income for the nine month period ended June 30, 1995, increased by $26,823,
or 13.8%, over the same period in 1994. With the exception of the additional
$21,955 in storm related expenses, the losses during these periods are
consistent with seasonal occupancy of a tourist oriented business.
LIQUIDITY
- - ---------
The Company has consistently demonstrated an ability to optimize revenues
developed from the resort and retail operations during the summer season.
Historically, the Company, because of it's
seasonal market, has produced over 40% of it's revenue during the fourth
quarter. The fourth quarters' occupancy is expected to be consistent with that
of the past years. Expenditures not related to the weather conditions are
consistent with prior year's operations and resources are expected to be
adequate to meet these demands.
The Company's cash position of $376,729 and a $52,147 Certificate of Deposit for
the nine month period ended June 30, 1995, is $68,368, or 19%, above the same
period in 1994. Rental deposits for the three month period ended June 30, 1995,
increased $26,782, or 6.8%, above the same period ended June 30, 1994, which
reflects a significant increase in advance reservations
Page 4 of 16
<PAGE>
for the fourth quarter. Rental deposits for the nine month period ended June
30, 1995, increased $246,106, or 143.1%, from the period ending September 30,
1994, which is consistent with prior year's operations and is a result of the
seasonal aspects of the business.
During the nine month period ended June 30, 1995, Capital Expenditures increased
by $25,563, or 16.3%, above the same period in 1994. The Company completed the
proposed site renovation project, the road repair work, purchased the material
for the road lighting project and completed some of the computer system upgrade.
A portion of the future capital expenditures previously planned have been
temporarily suspended pending the final engineering and cost determination for
the replacement of the storm drain system that was destroyed by flood waters.
It is estimated these repairs will cost between $300,000 and $350,000. The
Company expects to be able to fund all improvement projects through operations
or seek short term conventional financing.
Repayment of all outstanding loans balances are current and the Company, as a
policy, continues to pay an additional portion toward the principal to reduce
debt and interest expense.
Page 5 of 16
<PAGE>
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
Not Applicable
ITEM 2 - CHANGES IN SECURITIES
Not Applicable
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
Not Applicable
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not Applicable
ITEM 5 - OTHER INFORMATION
Director Reva Ramey (a non-compensated director elected by the
shareholders of Pismo Coast Village, Inc.) passed away on March 16,
1995. Her death will not significantly impact the management of the
Company. On May 20, 1995, the Nominating Committee recommended and
the Board of Directors took action to appoint Danny Shaffer to fill
the vacancy on the Board.
Lee McNutt, the Executive Vice President (a non-compensated director
elected by the shareholders of Pismo Coast Village, Inc.) submitted
his resignation on July 7, 1995, to pursue other interests out of
California. His resignation was friendly and will not significantly
impact the management of the Company. The Nominating Committee is
currently considering applicants for appointment to the vacancy
created by Mr. McNutt's resignation.
On July 15, 1995, the Board of Directors took action to elect Director
Maurice Greenberg to the position of Executive Vice President as a
replacement for Mr. Lee McNutt.
Page 6 of 16
<PAGE>
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit Index:
Sequential
Exhibit Number Item Description Page Number
-------------- ---------------- -----------
24 Consent of Accountants *
28 Accountant's Review
Report 8
-------------------------------------------
* Contained in Accountant's Review
Report, Exhibit 28.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned thereunto duly
authorized.
PISMO COAST VILLAGE, INC.
Date: _________________________________
Signature:______________________________
Ronald Nunlist, President
Date: _________________________________
Signature:______________________________
Jerald Pettibone, Chief Financial Officer
10qs6-95
Page 7 of 16
<PAGE>
/GBP&B letterhead
ACCOUNTANTS' REVIEW REPORT
--------------------------
Board of Directors
Pismo Coast Village, Inc.
165 South Dolliver Street
Pismo Beach, California 93449
We have made a review of the balance sheets of Pismo Coast Village, Inc. as of
June 30, 1995 and 1994, and the related statements of operations and retained
earnings (deficit) for the three and nine month periods ended June 30, 1995 and
1994, and the statements of cash flows for the nine month periods ended June 30,
1995 and 1994, in accordance with standards established by the American
Institute of Certified Public Accountants.
A review of interim financial information consists principally of obtaining an
understanding of the system for the preparation of interim financial
information, applying analytical review procedures to financial data, and making
inquiries of persons responsible for financial and accounting matters. It is
substantially less in scope than an examination in accordance with generally
accepted auditing standards, which will be performed for the full year with the
objective of expressing an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying interim financial statements referred to above for
them to be in conformity with generally accepted accounting principles.
We previously audited, in accordance with generally accepted auditing standards,
the balance sheet as of September 30, 1994, (presented herein) and the related
statements of operations and retained earnings (deficit) and cash flows for the
year then ended (not presented herein); and in our report dated October 22,
1994, we expressed an unqualified opinion on those financial statements.
Glenn, Burdette, Phillips & Bryson
Certified Public Accountants
A Professional Corporation
San Luis Obispo, California
July 27, 1995
<PAGE>
PISMO COAST VILLAGE, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, September 30, June 30,
-------- ------------- --------
1995 1994 1994
---- ---- ----
(Unaudited) (Audited) (Unaudited)
----------- --------- -----------
ASSETS
------- ----------- ------------ -------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash and cash equivalents - Note 1 $376,729 $352,070 $360,508
Certificates of deposit 52,147 50,000
Accounts receivable 13,311 12,967 10,859
Inventory - Note 1 75,479 72,983 79,644
Current deferred taxes - Notes 1 and 6 98,847 24,446 42,398
Prepaid income taxes 4,195 4,200
Prepaid expenses 18,002 87,929 35,661
---------- --------- --------
Total current assets 638,710 600,395 533,270
PISMO COAST VILLAGE RECREATIONAL
VEHICLE RESORT AND RELATED ASSETS -
Net of accumulated depreciation -
Notes 1, 2 and 3 5,458,600 5,463,573 5,518,099
LONG-TERM DEFERRED TAXES - NOTES 1 AND 6 3,536 74,761
OTHER ASSETS - NOTE 1 8,587 11,381 11,712
---------- --------- --------
Total Assets $6,105,897 $6,078,885 $6,137,842
---------- --------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $54,497 $22,268 $74,260
Salaries payable 5,827 26,185 1,351
Vacation payable 27,577 27,577 23,931
Other accrued expenses 19,129 30,722 18,839
Rental deposits 418,064 171,958 391,282
Current portion of long-term debt - Note 3 19,657 28,471 35,718
---------- --------- --------
Total current liabilities 544,751 307,181 545,381
LONG-TERM DEFERRED TAXES - NOTES 1 AND 6 4,410
LONG-TERM DEBT - NOTE 3 310,399 369,987 389,192
---------- --------- --------
Total liabilities 859,560 677,168 934,573
---------- --------- --------
STOCKHOLDERS' EQUITY - NOTE 4
Common stock - no par value, issued
and outstanding 1,800 shares 5,647,708 5,647,708 5,647,708
Retained earnings (deficit) (401,371) (245,991) (444,439)
---------- ----------- -----------
Total stockholders' equity 5,246,337 5,401,717 5,203,269
---------- ----------- -----------
Total Liabilities and Stockholders'
Equity $6,105,897 $6,078,885 $6,137,842
----------- ----------- -----------
</TABLE>
See accountants' review report.
The accompanying notes are an integral part of these financial statements.
3-
<PAGE>
PISMO COAST VILLAGE, INC.
STATEMENTS OF OPERATIONS AND RETAINED EARNINGS (DEFICIT)
(UNAUDITED)
<TABLE>
<CAPTION>
For The Three Months For the Nine Months
-------------------- -------------------
Ended June 30, Ended June 30,
-------------- --------------
1995 1994 1995 1994
---- ---- ---- ----
INCOME
<S> <C> <C> <C> <C>
Resort operations $496,375 $438,061 $1,150,971 $1,133,708
Retail operations 108,447 100,605 243,958 259,230
--------- --------- ----------- -----------
Total income 604,822 538,666 1,394,929 1,392,938
COST AND EXPENSES
Operating expenses 423,591 420,366 1,262,604 1,237,125
Cost of goods sold 66,914 56,843 137,564 146,082
Depreciation - Note 1 62,400 58,117 187,195 174,351
Amortization - Note 1 331 332 994 996
Interest 9,416 9,437 28,407 29,396
--------- --------- ----------- -----------
Income (Loss) Before
Provision for Taxes
on Income 42,170 (6,429) (221,835) (195,012)
Provision for Taxes on
Income - Note 6 12,795 5,516 (66,455) (65,391)
--------- --------- ----------- -----------
Net Income (Loss) $ 29,375 $ (11,945) (155,380) (129,621)
--------- --------- ----------- -----------
--------- --------- ----------- -----------
RETAINED EARNINGS
(DEFICIT)
Beginning of period (245,991) (314,818)
----------- ----------
End of period $(401,371) $(444,439)
NET INCOME (LOSS) PER
SHARE - NOTE 1 $16.32 $(6.64) $(86.32) $(72.01)
--------- --------- ----------- -----------
--------- --------- ----------- -----------
</TABLE>
See accountants' review report.
The accompanying notes are an integral part of these financial statements.
-4-
<PAGE>
<TABLE>
<CAPTION>
PISMO COAST VILLAGE, INC.
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED JUNE 30, 1995 and 1994
1995 1994
--------------------- ---------------------
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(155,380) $(129,621)
Adjustments to reconcile net
loss to net cash provided by
operating activities:
Depreciation $ 187,195 $ 174,351
Amortization 994 996
Increase in certificates of deposit (2,147)
Decrease in accounts receivable
and prepaid expenses 69,583 37,307
Increase in inventory (2,496) (14,556)
Increase in prepaid income taxes (4,195)
Decrease in other assets 1,800
Increase in deferred taxes (66,455) (64,836)
Increase in accounts payable 32,229 21,347
Decrease in salaries payable (20,358) (18,357)
Decrease in other accrued expenses (11,593) (10,624)
Decrease in income taxes payable (4,915)
Increase in rental deposits 246,106 247,815
---------- ----------
Total adjustments 430,663 368,528
---------- ----------
Net cash provided by
operating activities 275,283 238,907
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (182,222) (156,659)
---------- ----------
Net cash used in investing
activities (182,222) (156,659)
CASH FLOWS FROM FINANCING ACTIVITIES
Retirement of debt (68,402) (81,000)
---------- ---------
Net cash used in financing
activities (68,402) (81,000)
---------- ----------
Net increase in cash and
cash equivalents 24,659 1,248
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD 352,070 359,260
--------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 376,729 $ 360,508
---------- ----------
</TABLE>
See accountants' review report.
The accompanying notes are an integral part of these financial statements.
-5-
<PAGE>
PISMO COAST VILLAGE, INC.
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED JUNE 30, 1995 and 1994
PAGE 2
<TABLE>
<CAPTION>
1995 1994
---- ----
Schedule of Payments of Interest and Taxes
- - ------------------------------------------
<S> <C> <C>
Payments for interest $28,407 $27,456
Payments for income tax $3,570 $8,538
</TABLE>
See accountants' review report.
The accompanying notes are an integral part of these financial statements.
-6-
<PAGE>
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
AS OF JUNE 30, 1995 AND 1994 AND SEPTEMBER 30, 1994
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NATURE OF BUSINESS
Pismo Coast Village, Inc. (Company) is a recreational vehicle camping resort
located in Pismo Beach. Its business is seasonal in nature with the fourth
quarter, the summer, being its busiest and most profitable.
INVENTORY
Inventory has been valued at the lower of cost or market on a first-in,
first-out basis.
DEPRECIATION AND AMORTIZATION
Depreciation of property and equipment is computed using an accelerated method
based on the cost of the assets, less allowance for salvage value, where
appropriate. Depreciation rates are based upon the following estimated useful
lives:
Building and park improvements 5 to 40 years
Furniture, fixtures, equipment and
leasehold improvements 5 to 31.5 years
Transportation equipment 5 to 10 years
Loan fees of $9,292 net of accumulated amortization of $2,321 at June 30, 1995,
$1,327 at September 30, 1994, and $996 at June 30, 1994, are included with other
assets. Amortization is computed using the straight-line method over seven
years. The balance of other assets represents deposits of $1,616 at June 30,
1995, and $3,416 at September 30, 1994 and June 30, 1994.
INVESTMENT TAX CREDITS
Investment tax credits are accounted for by the flow-through method.
EARNINGS (LOSS) PER SHARE
The earnings (loss) per share is based on the 1,800 shares issued and
outstanding.
RECLASSIFICATION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
Reclassification of certain accounts reported in previously issued financial
statements have been made to enhance comparability with current financial
statements.
CASH AND CASH EQUIVALENTS
For purposes of the statement of cash flows, the Corporation considers all
highly liquid investments including certificates of deposit with a maturity of
three months or less when purchased, to be cash equivalents.
-7-
<PAGE>
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
AS OF JUNE 30, 1995 AND 1994 AND SEPTEMBER 30, 1994
PAGE 2
NOTE 2 - PISMO COAST VILLAGE RECREATIONAL VEHICLE RESORT AND RELATED ASSETS
At June 30, 1995, September 30, 1994, and June 30, 1994, property and equipment
included the following:
<TABLE>
<CAPTION>
June 30, September 30, June 30,
---------- ------------- ----------
1995 1994 1994
---- ---- ----
<S> <C> <C> <C>
Land $2,680,850 $2,680,850 $2,680,850
Building and park improvements 5,043,244 4,871,076 4,867,257
Furniture, fixtures, equipment
and leasehold improvements 1,190,275 1,182,259 1,175,878
Transportation equipment 139,227 139,227 139,227
Construction in progress 2,038 209
---------- ------------- ----------
9,055,634 8,873,412 8,863,421
Less accumulated depreciation 3,597,034 3,409,839 3,345,322
---------- ------------- ----------
$5,458,600 $5,463,573 $5,518,099
---------- ------------- ----------
---------- ------------- ----------
</TABLE>
NOTE 3 - LONG-TERM DEBT
Long-term debt at June 30, 1995, September 30, 1994, and June 30, 1994, is
summarized as follows:
<TABLE>
<CAPTION>
June 30, September 30, June 30,
-------- ------------- --------
1995 1994 1994
---- ---- ----
<S> <C> <C> <C>
8% Installment note payable, due in monthly
installments of $125 through April 13,
2010, secured by deed of trust on the
storage lot at 2050 22nd Street, Oceano. $12,988 $13,322 $13,430
8% Installment note payable, due in monthly
installments of $2,500 through February 1,
1995, secured by deed of trust on 300
South Dolliver, Pismo Beach. 10,661 17,852
</TABLE>
-8-
<PAGE>
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
AS OF JUNE 30, 1995 AND 1994 AND SEPTEMBER 30, 1994
PAGE 3
NOTE 3 - LONG-TERM DEBT (CONTINUED)
<TABLE>
<CAPTION>
June 30, September 30, June 30,
-------- ------------- --------
1995 1994 1994
---- ---- ----
<S> <C> <C> <C>
11% Installment note payable, due in $ $ $
monthly installments of $4,426 through
August 1, 2000, unpaid balance due in
full September 1, 2000. Interest is
variable, secured by deeds of trust on
300 South Dolliver and 180 South Dolliver,
Pismo Beach. 317,068 374,475 393,628
-------- -------- --------
330,056 398,458 424,910
Less current portion of long-term debt 19,657 28,471 35,718
-------- -------- --------
$310,399 $369,987 $389,192
-------- -------- --------
-------- -------- --------
</TABLE>
Maturities of long-term debt are as follows:
<TABLE>
<CAPTION>
<S> <C>
Year Ended June 30, Amount
------------------- ------
1996 $19,657
1997 23,598
1998 26,184
1999 29,055
2000 32,240
Thereafter 199,322
--------
$330,056
--------
--------
</TABLE>
NOTE 4 - COMMON STOCK
Each share of stock is intended to provide the shareholder with a minimum free
use of the park for 45 days per year. If the Company is unable to generate
sufficient funds from the public, the Company may be required to charge
shareholders for services.
A shareholder is entitled to a pro rata share of any dividends as well as a pro
rata share of the assets of the Company in the event of its liquidation or sale.
The shares are personal property and do not constitute an interest in real
property. The ownership of a share does not entitle the owner to any interest
in any particular site or camping spot.
-9-
<PAGE>
PISMO COAST VILLAGE, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
AS OF JUNE 30, 1995 AND 1994 AND SEPTEMBER 30, 1994
PAGE 4
NOTE 5 - CARRYFORWARDS RELATING TO FEDERAL INCOME TAXES
The Company files its income tax returns as of September 30, the end of its
fiscal year. At September 30, 1994, the Company had net operating loss
carryforwards which expire as follows:
<TABLE>
<CAPTION>
<S> <C>
Federal
-------
September 30, 1997 $ 24,000
September 30, 2000 18,000
September 30, 2001 74,000
September 30, 2002 51,000
September 30, 2003 23,000
September 30, 2004 61,000
--------
Total Net Operating Loss Carryforwards $251,000
--------
--------
</TABLE>
In addition, the Company has the following tax credits available to offset
future federal tax liabilities:
<TABLE>
<CAPTION>
Approximate investment tax credits expiring as follows:
<S> <C>
September 30, 1995 $ 954
September 30, 1996 693
September 30, 1997 2,472
September 30, 1998 3,320
September 30, 1999 2,267
September 30, 2000 2,907
September 30, 2001 356
</TABLE>
NOTE 6 - INCOME TAXES
The provision for income taxes is as follows:
<TABLE>
<CAPTION>
June 30, June 30,
-------- --------
1995 1994
---- ----
<S> <C> <C>
Income tax expense (benefit) $(66,455) $(65,391)
</TABLE>
Effective September 30, 1993, the Company adopted Statement of Financial
Accounting Standard No. 109, "Accounting for Income Taxes" (SFAS 109). SFAS 109
requires, among other things, a change from the deferred to the asset-liablity
method of computing deferred income taxes. SFAS 109 also requires that if
income is expected for the entire year, but there is a net loss to date, a tax
benefit is recognized based on the annual effective tax rate.
The difference between the effective tax rate and the statutory tax rates is due
primarily to miscellaneous nondeductible expenses, state taxes net of federal
benefit and the graduated tax rates.
-10-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1
<CURRENCY> U.S.$
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-START> OCT-01-1994
<PERIOD-END> JUN-30-1995
<EXCHANGE-RATE> 1
<CASH> 376,729
<SECURITIES> 52,147
<RECEIVABLES> 13,311
<ALLOWANCES> 0
<INVENTORY> 75,479
<CURRENT-ASSETS> 638,710
<PP&E> 9,055,634
<DEPRECIATION> 3,597,034
<TOTAL-ASSETS> 6,105,897
<CURRENT-LIABILITIES> 544,751
<BONDS> 310,399
<COMMON> 5,647,708
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 6,105,897
<SALES> 243,958
<TOTAL-REVENUES> 1,394,929
<CGS> 137,564
<TOTAL-COSTS> 1,400,168
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 28,407
<INCOME-PRETAX> (221,835)
<INCOME-TAX> (66,455)
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (155,380)
<EPS-PRIMARY> (86.32)
<EPS-DILUTED> (86.32)
</TABLE>
