UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended January 31, 1996
Commission file number 0-9146
UNIQUE MOBILITY, INC.
(Exact name of registrant as specified in its charter)
Colorado 84-0579156
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
425 Corporate Circle Golden, Colorado 80401
(Address of principal executive offices) (zip code)
(303) 278-2002
(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 .
The number of shares outstanding (including shares held by affiliates) of the
registrant's common stock, par value $0.01 per share at March 11, 1996 was
10,931,563.
<PAGE>
PART I - FINANCIAL INFORMATION
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
January 31, October 31,
Assets 1996 1995
(unaudited)
Current assets:
Cash and cash equivalents $ 1,749,368 1,796,392
Certificates of deposit 319,107 319,107
Accounts receivable (note 7) 370,737 337,849
Costs and estimated earnings in excess of
billings on uncompleted contracts 99,755 262,414
Inventories (note 3) 344,740 404,701
Prepaid expenses 136,156 35,397
Other current assets 82,414 70,203
Total current assets 3,102,277 3,226,063
Property and equipment, at cost:
Land 335,500 335,500
Building 1,364,500 1,364,500
Molds 102,113 102,113
Transportation equipment 251,175 251,175
Machinery and equipment 1,756,764 1,763,818
3,810,052 3,817,106
Less accumulated depreciation (1,346,473) (1,275,530)
Net property and equipment 2,463,579 2,541,576
Investment in Taiwan joint venture 1,423,850 1,432,735
Patent and trademark costs, net of accumulated
amortization of $29,246 and $25,491 459,861 450,394
Other assets 26,512 27,831
$ 7,476,079 7,678,599
(Continued)
<PAGE>
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Consolidated Balance Sheets, Continued
January 31, October 31,
Liabilities and Stockholders' Equity 1996 1995
(unaudited)
Current liabilities:
Accounts payable $ 150,800 83,859
Other current liabilities (note 4) 488,790 464,186
Note payable to Taiwan joint venture
participant 1,403,493 1,403,493
Current portion of long-term debt 84,263 81,525
Total current liabilities 2,127,346 2,033,063
Long-term debt, less current portion 785,421 807,003
Total liabilities 2,912,767 2,840,066
Minority interest in consolidated subsidiary 389,376 389,065
Stockholders' equity (notes 5 and 9):
Common stock, $.01 par value, 50,000,000
shares authorized; 10,716,172 and
10,571,953 shares issued 107,162 105,720
Additional paid-in capital 19,406,282 18,887,886
Accumulated deficit (15,221,906)(14,426,536)
4,291,538 4,567,070
Less cost of 37,341 shares of treasury stock 117,602 117,602
Total stockholders' equity 4,173,936 4,449,468
Commitment (note 8)
$ 7,476,079 7,678,599
See accompanying notes to consolidated financial statements.
<PAGE>
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited)
Quarter Ended January 31,
1996 1995
Revenue:
Contract services (note 7) $ 188,679 842,630
Product sales 115,633 185,589
304,312 1,028,219
Operating costs and expenses:
Costs of revenue 344,165 837,844
Research and development 286,947 370,242
General and administrative 318,779 240,703
Depreciation and amortization 92,886 79,068
Royalty 1,417 5,088
1,044,194 1,532,945
Operating loss (739,882) (504,726)
Other income (expense):
Minority interest share of earnings of
consolidated subsidiary (17,147) (16,603)
Interest income 25,703 10,666
Interest expense (55,574) (20,077)
Equity in loss of Taiwan joint venture (8,885) (2,869)
Other 415 1,749
Net loss $ (795,370) (531,860)
Net loss per common share $ (.07) (.05)
Weighted average number of shares of common
stock outstanding (note 6) 10,609,761 9,925,555
See accompanying notes to consolidated financial statements.
<PAGE>
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(unaudited)
Quarter Ended January 31,
1996 1995
Cash flows from operating activities:
Net loss $ (795,370) (531,860)
Adjustments to reconcile net loss to net
cash used by operating activities:
Depreciation and amortization 92,886 79,068
Minority interest share of earnings of
consolidated subsidiary, net of cash
distributions 311 (5,846)
Noncash compensation expense for common
stock and warrants issued for service 3,750 12,500
Equity in loss of Taiwan joint venture 8,885 2,869
Gain on sale of property and equipment (411) -
Change in operating assets and liabilities:
Accounts receivable and costs and
estimated earnings in excess of
billings on uncompleted contracts 129,771 (258,127)
Inventories 59,961 (2,484)
Prepaid expenses and other current asset (112,970) (82,627)
Billings in excess of costs and estimated
earnings on uncompleted contracts - 62,921
Accounts payable and other current
liabilities 91,545 131,867
Net cash used by operating activities (521,642) (591,719)
Cash used by investing activities:
Acquisition of property and equipment (12,497) (247,535)
Proceeds from sale of property and equipment 3,094 -
Increase in patent and trademark costs (13,223) (14,608)
Net cash used by investing activities (22,626) (262,143)
Cash flows provided by financing activities:
Proceeds from borrowings - 112,337
Repayment of debt (18,844) (77,463)
Proceeds from sale of common stock, net 500,000 -
Issuance of common stock upon exercise of
employee options 13,395 -
Issuance of common stock under employee stock
purchase plan 2,693 2,400
Net cash provided by financing activities 497,244 37,274
Decrease in cash and cash equivalents (47,024) (816,588)
Cash and cash equivalents at beginning of quarter 1,796,392 1,620,115
Cash and cash equivalents at end of quarter $ 1,749,368 803,527
<PAGE>
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(unaudited)
Supplemental disclosures to the consolidated statements of cash flows:
Cash paid for interest was $20,750 and $20,077 for the quarter ended
January 31, 1996 and 1995, respectively.
See accompanying notes to consolidated financial statements.
<PAGE>
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(unaudited)
(1) The accompanying financial statements are unaudited; however, in the
opinion of management, all adjustments which were solely of a normal
recurring nature, necessary to a fair statement of the results for the
interim period, have been made. The results for the interim period are
not necessarily indicative of results to be expected for the fiscal year.
(2) Certain fiscal 1995 amounts have been reclassified for comparative
purposes.
(3) Inventories are stated at the lower of cost or market. Cost is determined
by the first-in, first-out method and consists of materials, direct labor
and production overhead. Inventories consist of the following:
January 31, 1996 October 31, 1995
(unaudited)
Raw materials $ 196,272 247,225
Work in process 62,482 31,525
Finished products 85,986 125,951
$ 344,740 404,701
(4) The following table summarizes the composition of the Company's other
current liabilities:
January 31, 1996 October 31, 1995
(unaudited)
Accrued subcontractor expense $ 174,781 174,781
Accrued interest 128,023 93,698
Accrued legal and accounting fees 49,285 48,611
Accrued payroll, consulting,
personal property and real
estate taxes 46,240 44,882
Other 90,461 102,214
$ 488,790 464,186
<PAGE>
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements, Continued
(unaudited)
(5) The Company has reserved 4,104,000 shares of common stock for key
employees, consultants, and key suppliers under its Incentive and
Non-Qualified Option plans. Options became exercisable as determined
at the date of grant by the Board of Directors and expire within ten
years from the date of grant. The maximum number of shares that may
be granted to any eligible employee during the term of the Plan is
500,000 shares. The options require holders to abide by certain
Company policies on the trading of the Company's common stock.
The following table summarizes activity under the plans:
Shares Under Per Share
Option Exercise Price
Outstanding at October 31, 1994 1,914,533 $ .50 - 8.13
Granted 100,000 5.00
Exercised (64,786) .50 - 3.50
Forfeited (97,515) 3.50 - 6.88
Outstanding at October 31, 1995 1,852,232 .50 - 8.13
Granted 520,000 4.13
Exercised (13,395) 1.00
Forfeited (92,615) 4.13 - 6.88
Outstanding at January 31, 1996 2,266,222
Exercisable at January 31, 1996 1,410,172
In February 1994, the Company's Board of Directors ratified a Stock Option
Plan for Non-Employee Directors pursuant to which Directors may elect to
receive options in lieu of cash compensation for their services as
directors. The Company has reserved 250,000 shares of common stock for
issuance pursuant to the exercise of options under the Plan. The options
vest ratably over a three-year period beginning one year from the date of
grant and are exercisable for ten years from the grant date. Option prices
are equal to the fair market value of common shares at the date of grant.
The following table summarizes activity under the plan:
Shares Under Per Share
Option Exercise Price
Outstanding at October 31, 1994 48,000 $ 5.38 - 6.25
Granted 61,333 5.00 - 5.13
Outstanding at October 31, 1995 109,333 5.00 - 6.25
Granted -
Outstanding at January 31, 1996 109,333
Exercisable at January 31, 1996 20,444
<PAGE>
UNIQUE MOBILITY, INC. AND SUBSIDIARIES
Notes to Consolidate Financial Statements, Continued
(unaudited)
In connection with the original issuance of certain subordinated
convertible term notes to Advent and Techno, the Company granted Advent
and Techno warrants to acquire 790,000 shares of the Company's common
stock at the lower of $2.40 per share or the market price of the common
stock averaged over the 30 trading days immediately preceding the date of
exercise. The warrants expire August 1997, and allow for a cashless
exercise of the warrants into common shares based on the spread between
the market price of the common stock on the date of exercise and the $2.40
exercise price. All of these warrants remain outstanding at January 31,
1996.
The Company has reserved 300,000 shares of common stock for issuance
pursuant to a warrant agreement with an investment banking company.
Warrants to acquire 200,000 shares of common stock vested on January 20,
1994, and the remaining 100,000 shares vested on January 20, 1995. The
warrants were exercisable for a period of five years, expiring on January
19, 1999, at a price of $7.63 per share. Further, the warrants were
redeemable on a one-time basis only through June 30, 1994, for a like
number of warrants, at the then current fair market value of the Company's
common stock with otherwise identical terms. On April 18, 1994, the
warrants were redeemed in accordance with the above provision for a like
number of warrants which are exercisable at a price of $6.00 per share.
The warrants contain transfer restrictions and provisions for the
adjustment of the exercise price and the number and type of securities
issuable upon exercise based on the occurrence of certain events. All of
these warrants remain outstanding at January 31, 1996.
In connection with the 1995 common stock issuance, the placement agent was
issued warrants expiring July 21, 1998, to acquire 150,000 shares of the
Company's common stock at $5.75 per share. All of these warrants remain
outstanding at January 31, 1996.
(6) Loss per common share amounts are based on the weighted average number of
common shares outstanding during the first quarter of each fiscal year
presented. Outstanding common stock options and warrants were not included
in the computation because the effect of such inclusion would be
antidilutive. Fully diluted earning per share are considered equivalent to
primary earnings per share.
(7) The Company has historically derived significant revenue from contract
services from a few key customers. For the first three months of fiscal
1996, the Company derived $170,633 of contract services revenue from three
customers, which was 90 percent of total revenue. These three customers
also represented 56 percent of the total accounts receivable balance at
January 31, 1996. For the three months ended January 31, 1995, the Company
derived $767,448 of contract services revenue from four customers, which
was 75 percent of total revenue. These four customers also represented 58
percent of the total accounts receivable balance at January 31, 1995.
(8) The Company has entered into employment agreements with four of its
officers which expire December 31, 1996. The aggregate annual future
compensation under these agreements through the expiration date is
$459,988.
(9) During February 1996, the Company sold 181,000 shares of common stock to
various overseas institutional investors at an average price of $4.69 per
share under Regulation S. Net proceeds to the Company were approximately
$806,000.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
During the first quarter of fiscal 1996 the Company continued to invest human
and financial resources toward the commercialization of its proprietary line of
permanent magnet motors and controls. Coincident with these activities the
Company completed an agreement with Invacare Corporation (Elyria, OH) for the
development and potential manufacture and supply of electric motors for
Invacare's line of medical products. Pursuant to the agreement Invacare
purchased 129,032 shares of the Company's common stock for $3.88 per share
resulting in cash proceeds to the Company of $500,000. Contingent on
development milestones, Invacare has further agreed to purchase additional
shares at market price during the 1996 fiscal year. Primarily as a result of
this transaction the Company's financial condition remained strong throughout
the first quarter despite increased levels of operating losses arising from
increased levels of internally funded development activities.
Throughout the remainder of fiscal 1996 the Company intends to launch expanded
manufacturing operations at its Golden, Colorado facility, continue the
development of the Ethos 3 EV demonstration vehicle in collaboration with
Pininfarina and make additional investments in its Taiwan based joint venture
with Kwang Yang Motor Co., Ltd. and Turn-Luckily Technology Co., Ltd. coincident
with the construction of a manufacturing facility and launch of manufacturing
operations in Taiwan. The Company does not currently possess the financial
resources to fully fund these activities. See "Liquidity and Capital
Resources" below.
Cash balances at January 31, 1996 declined $47,024 to $2,068,475 compared to
$2,115,499 at October 31, 1995.
Accounts receivable rose $32,888 to $370,737 at the end of the fiscal 1996 first
quarter and costs and estimated earnings in excess of billings on uncompleted
contracts declined $162,659 from the fiscal 1995 year end level due to the
billing of subcontract costs on a contract with an agency of the U. S.
Government.
Inventories declined to $344,740 at January 31, 1996 compared to $404,701 at
October 31, 1995 primarily due to decreased levels of raw materials and finished
products inventories which was offset, in part, by higher levels of work in
process inventories.
Prepaid expenses rose $100,759 to $136,156 at the end of the first quarter of
fiscal 1996 due to the prepayment of annual premiums on the Company's commercial
insurance coverages which are amortized ratably over the fiscal year.
The Company invested $12,497 for the acquisition of machinery and equipment and
liquidated obsolete computer hardware which resulted in a net decrease in
machinery and equipment of $7,054 during the fiscal 1996 first quarter.
Patent and trademark costs rose $9,467 to $459,861 at the January 31, 1996
versus $450,394 at October 31, 1995 reflecting continued prosecution of the
Company's pending patent and trademark applications.
Accounts payable rose $66,941 to $150,800 at January 31, 1996 compared to
fiscal 1995 year end reflecting annual premium costs on the Company's commercial
insurance coverages which were billed, but not payable in accordance with their
terms, until the beginning of the second quarter.
Other current liabilities increased to $488,790 at the end of the first quarter
compared to $464,186 at the end of fiscal 1995 primarily due to accrued interest
on the note payable to KYMCO.
<PAGE>
Long-term debt declined $21,582 during the first quarter of fiscal 1996 due to
scheduled principal payments on the Company's mortgage debt and commercial debt
associated with leasing activities by UQM Leasing, Inc.
Common stock and additional paid-in capital increased to $107,162 and
$19,406,282 at January 31, 1996, respectively, compared to $105,720 and
$18,887,886 at October 31, 1995. The increase is attributable to the sale of
common stock to Invacare Corporation, and issuances of common stock under the
Company's stock option and employee stock purchase plans.
RESULTS OF OPERATIONS
The Company's operations during the first quarter of fiscal 1996 were primarily
directed toward production engineering, component sourcing, and manufacturing
process engineering of low voltage commercial products. Substantially all of
these activities were funded from the Company's existing cash resources and were
charged to expense as incurred in accordance with generally accepted accounting
principles. As a result operations for the quarter resulted in a net loss of
$795,370 or $0.07 per share versus a net loss of $531,860 or $0.05 per share for
the comparable quarter last year. Contract services revenue for the quarter
declined substantially to $188,679 compared to $842,630 for the comparable prior
year quarter. Product sales during the first quarter of fiscal 1995 were
$115,633 a decline of $69,956 from the comparable prior year level of $185,589.
The reduced level of product sales is due to fewer sales of prototype propulsion
system hardware to original equipment manufacturers for evaluation and testing
during the first quarter of fiscal 1996 versus the comparable prior year
quarter.
Cost of revenues for the fiscal 1996 first quarter exceeded the revenue derived
from the sale of the associated products and services by $39,853 due to cost
overruns on certain sponsored research projects and writedowns of certain raw
material component costs held in inventory to current market values.
Research and development expenditures declined to $286,947 for the quarter ended
January 31, 1996 from $370,242 for the comparable prior year quarter due to
lower levels of cost sharing expenditures under the Company's development
contract with Ford Motor Company and the U. S. Department of Energy.
General and administrative costs rose $78,076 during the fiscal 1996 first
quarter versus the comparable prior year quarter. The increase is primarily
attributable to higher levels of legal expense, business development activities
and the launch of an investor communications program.
Depreciation and amortization expense increased to $92,886 for the quarter ended
January 31, 1996 primarily due to depreciation of a vehicle leased by UQM
Leasing, Inc. over the three year term of the associated vehicle lease
agreement.
Interest income was $25,703 for the first quarter of fiscal 1996, an increase of
$15,037 over the comparable prior year quarter. The increase is attributable to
higher levels of invested cash during the fiscal 1996 first quarter.
Interest expense was $55,574 for the first quarter of fiscal 1996, an increase
of $35,497 over the prior year quarter. The increase is primarily attributable
to interest accruals on the note payable to KYMCO.
Equity in loss of Taiwan joint venture rose to $8,885 for the three months ended
January 31, 1996, reflecting the Company's 39 percent share of losses incurred
by Taiwan UQM Electric Co., Ltd.
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
The Company's cash balances and liquidity throughout the first quarter of fiscal
1996 were adequate to meet operating needs. Working capital (current assets
minus current liabilities) was $974,931 at January 31, 1996 versus $1,193,000 at
October 31, 1995.
During the first quarter of fiscal 1996 the Company sold to Invacare Corporation
129,032 shares of the Company's common stock at a price of $3.88 per share. Net
proceeds to the Company were $500,000. Contingent upon the achievement of
certain conditions, Invacare has agreed to make an additional investment in the
Company through the purchase of common stock from the Company at market price.
The additional investment will be in the approximate amount of 50 percent of
the mutually agreed product launching costs required to be made by the Company
for production tooling, equipment and product launching costs for the
manufacture of products to be sold to Invacare. In addition, the proceeds
from the additional investment by Invacare will be restricted as to their use.
The Company does not currently possess the financial resources to fund its 50
percent share of the costs to launch production for Invacare; however management
believes that it can acquire the capital required to meet its obligation
pursuant to the agreement with Invacare through commercial debt or lease
financing, although it currently has no commitment for such financing.
During 1994 the Company, KYMCO and TLT entered into a joint venture agreement
providing for the formation, funding and operation of Taiwan UQM Electric Co.,
Ltd. Under the initial provisions of the joint venture agreement the Company
purchased 39 percent of the initial capital of Taiwan UQM for $45,082 and agreed
to invest 39 percent of any additional capital calls. During 1995 the Company
was unable to make payments for additional capital call obligations under the
joint venture agreement. During the third quarter of fiscal 1995 the Company,
KYMCO and TLT entered into a waiver and option agreement whereby KYMCO agreed
to first purchase those shares of Taiwan UQM underlying the Company's additional
capital call obligations in the amount of $1,403,493. Under the waiver and
option agreement the Company has the option to repurchase these shares from
KYMCO for the additional capital call amount plus interest at 10 percent per
annum. It is the intent of management to repurchase the shares and maintain
the Company's equity interest in Taiwan UQM at 39 percent. The purchase by
KYMCO of the shares related to the Company's additional capital call obligations
has been accounted for as a financing arrangement. Accordingly, for financial
reporting purposes the Company has recorded an investment in joint venture equal
to 39 percent of the current net assets of Taiwan UQM and a note payable to
joint venture equal to the amount payable to KYMCO under the waiver and option
agreement including accrued interest thereon. The Company does not currently
possess the financial resources to meet this obligation on a timely basis,
although the Company intends to do so if capital becomes available on terms
acceptable to the Company. Accordingly, the Company intends to seek an
extension of the May 31, 1996 payment date to December 31, 1996. However,
there can be no assurance that such an extension can be obtained, or if obtained
that the Company will then possess the financial resources to maintain its
ownership interest in Taiwan UQM at 39 percent. Should the Company not meet
its obligation under the joint venture agreement and the waiver and option
agreement, Taiwan UQM would nevertheless be obligated to obtain a royalty
bearing license from the Company in order to gain manufacturing rights to the
Company's proprietary technologies.
During February 1996 the Company sold 181,000 shares of common stock to various
overseas institutional investors at an average price of $4.69 per share under
Regulation S. Net proceeds to the Company were approximately $806,000.
The Company may require additional capital beyond that discussed above to
complete its long-term business plan. The Company hopes to meet future capital
requirements through the issuance of equity or debt securities or a combination
of both, although, there can be no assurance that such financing can be
arranged. In the event the Company is unwilling or unable to arrange such
financing, management would defer, abandon or modify implementation of the
Company's business plan. In addition, the Company plans to continue to pursue
the commercialization of its proprietary technologies directly, if financing
can be obtained, or indirectly by means of strategic alliances or licensing
arrangements with leading companies in the field.
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K
None.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Unique Mobility, Inc.
Registrant
Date: March 14, 1996 By:/s/ Donald A. French
Donald A. French
Treasurer and Controller
(Principal Financial and
Accounting Officer)
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEETS OF UNIQUE MOBILITY, INC. AND CONSOLIDATED
SUBSIDIARIES AS OF JANUARY 31, 1996 AND OCTOBER 31, 1995 AND THE CONSOLIDATED
STATEMENTS OF OPERATIONS FOR THE QUARTER ENDED JANUARY 31, 1996 AND JANUARY 31,
1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C> <C> <C>
<PERIOD-TYPE> 3-MOS YEAR 3-MOS
<FISCAL-YEAR-END> OCT-31-1996 OCT-31-1995 OCT-31-1995
<PERIOD-END> JAN-31-1996 OCT-31-1995 JAN-31-1995
<CASH> 2,068,475 2,115,499 0
<SECURITIES> 0 0 0
<RECEIVABLES> 370,737 337,849 0
<ALLOWANCES> 0 0 0
<INVENTORY> 444,495 667,115 0
<CURRENT-ASSETS> 3,102,277 3,226,063 0
<PP&E> 3,810,052 3,817,106 0
<DEPRECIATION> 1,346,473 1,275,530 0
<TOTAL-ASSETS> 7,476,079 7,678,599 0
<CURRENT-LIABILITIES> 2,127,346 2,033,063 0
<BONDS> 785,421 807,003 0
0 0 0
0 0 0
<COMMON> 19,513,444 18,993,606 0
<OTHER-SE> (15,339,508) (14,544,138) 0
<TOTAL-LIABILITY-AND-EQUITY> 7,476,079 7,678,599 0
<SALES> 115,633 0 185,589
<TOTAL-REVENUES> 304,312 0 1,028,219
<CGS> 344,165 0 837,844
<TOTAL-COSTS> 1,044,194 0 1,532,945
<OTHER-EXPENSES> (86) 0 7,057
<LOSS-PROVISION> 0 0 0
<INTEREST-EXPENSE> 55,574 0 20,077
<INCOME-PRETAX> (795,370) 0 (531,860)
<INCOME-TAX> 0 0 0
<INCOME-CONTINUING> (795,370) 0 (531,860)
<DISCONTINUED> 0 0 0
<EXTRAORDINARY> 0 0 0
<CHANGES> 0 0 0
<NET-INCOME> (795,370) 0 (531,860)
<EPS-PRIMARY> (.07) 0 (.05)
<EPS-DILUTED> (.07) 0 (.05)
</TABLE>
