FORM 10Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
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: 0-610
EQUITY OIL COMPANY
(Exact name of registrant as specified in its charter)
COLORADO 87-0129795
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Suite 806, #10 West Third South, Salt Lake City, Utah 84101
(Address of principal executive offices)
(Zip Code)
(801) 521-3515
Registrant's telephone number, including area code
(Former name, former address and former fiscal year,
if changed since last report)
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
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
Yes No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date: 12,739,100
<PAGE>
ITEM I: Financial Statements
EQUITY OIL COMPANY
Statements of Operations
For the Nine Months Ended September 30, 1996 and 1995
(Unaudited)
1996 1995
------------ --------
REVENUES
Oil and gas sales $11,542,851 $ 9,115,940
Partnership income 225,000 225,000
Interest income 104,952 178,524
Other 245,554 409,131
--------- ---------
12,118,357 9,928,595
EXPENSES
Operating costs 4,110,248 3,525,883
Depreciation, depletion and
amortization 2,850,000 3,100,000
Leasehold abandonments 31,642 35,500
Property impairment - 2,274,057
Equity loss in
Symskaya Exploration, Inc. 5,250,000 -
3-D seismic 457,536 237,604
Exploration 1,418,578 1,055,118
General and administrative 1,630,706 1,404,880
Interest - 66,378
---------- ----------
15,748,710 11,699,420
Loss before income taxes (3,630,353) (1,770,825)
Benefit for income taxes (1,691,138) (684,178)
--------- --------
NET LOSS $(1,939,215) $(1,086,647)
========== ===========
Net loss per common share $(0.15) $(0.09)
========== ===========
Cash dividends declared per share $.00 $.00
Weighted average shares outstanding 12,734,711 12,563,014
The accompanying notes are an integral part of these statements.
<PAGE>
EQUITY OIL COMPANY
Statements of Operations
For the Three Months Ended September 30, 1996 and 1995
(Unaudited)
1996 1995
----------- --------
REVENUES
Oil and gas sales $3,974,173 $2,987,833
Partnership income 75,000 75,000
Interest income 34,047 53,306
Other 122,480 101,266
--------- ---------
4,205,700 3,217,405
EXPENSES
Operating costs 1,488,321 1,165,315
Depreciation, depletion and
amortization 1,050,000 850,000
Leasehold abandonments 16,550 10,000
Property impairment - 2,274,057
Equity loss in
Symskaya Exploration, Inc. 5,250,000 -
3-D seismic 153,439 -
Exploration 492,098 357,560
General and administrative 411,734 422,618
Interest expense - 36,833
--------- ---------
8,862,142 5,116,383
Loss before income taxes (4,656,442) (1,898,978)
Benefit for income taxes (1,896,171) (640,121)
--------- ---------
NET LOSS $(2,760,271) $(1,258,857)
========== ==========
Net loss per common share $(0.22) $(0.10)
========== =========
Cash dividends declared per share $.00 $.00
Weighted average shares outstanding 12,746,339 12,617,872
The accompanying notes are an integral part of these statements.
<PAGE>
EQUITY OIL COMPANY
Balance Sheet
as of September 30, 1996 and December 31, 1995
(Unaudited)
September 30, December 31,
ASSETS 1996 1995
- ------ ---------- ----------
Current assets:
Cash and cash equivalents $ 491,077 $ 511,252
Temporary cash investments 199,322 955,967
Accounts and advances receivable 2,733,241 3,016,067
Income taxes receivable 250,621 502,098
Other current assets 252,861 378,594
---------- ----------
3,927,122 5,363,978
Property and equipment 105,085,909 99,242,754
Less accumulated depletion,
depreciation and amortization 60,329,318 57,549,855
---------- ----------
44,756,591 41,692,899
Other assets:
Investment in and note receivable
from Symskaya Exploration 3,704,253 6,160,442
Investment in Raven Ridge
Pipeline Partnership 431,667 540,220
Other assets 157,926 189,511
--------- ----------
4,293,846 6,890,173
---------- ----------
TOTAL ASSETS $52,977,559 $53,947,050
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,414,335 $ 1,107,925
Accrued liabilities 11,250 219,144
Accrued profit sharing 144,000 148,771
Income taxes payable 58,891 156,293
Deferred income taxes 10,796 10,796
--------- ---------
1,639,272 1,642,929
Revolving credit facility 7,778,830 4,918,830
Deferred income taxes 6,623,447 8,654,698
---------- ----------
14,402,277 13,573,528
Stockholders' equity
Common stock 12,751,100 12,711,100
Paid in capital 3,633,175 3,485,487
Retained earnings 20,594,791 22,534,006
Less cost of treasury stock (43,056) -
---------- ----------
36,936,010 38,730,593
TOTAL LIABILITIES AND ---------- ----------
STOCKHOLDERS' EQUITY $52,977,559 $53,947,050
========== ==========
The accompanying notes are an integral part of these statements.
<PAGE>
EQUITY OIL COMPANY
Statement of Cash Flows
For the Nine Months Ended September 30, 1996 and 1995
(Unaudited)
1996 1995
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ....................... $(1,939,215) $(1,086,647)
Adjustments
Depreciation, depletion and
amortization 2,850,000 3,100,000
Partnership distributions in
excess of income 108,553 119,746
Property dispositions 31,642 35,500
Property impairment - 2,274,057
Equity loss in
Symskaya Exploration 5,250,000 -
Change in other assets 31,585 10,528
Common stock issued for services 103,313 -
Decrease in deferred income taxes (2,031,251) (1,300,025)
Increase (decrease) from changes in:
Accounts and advances receivable 282,826 126,027
Other current assets 125,733 (4,178)
Deferred lease revenue - (178,553)
Accrued profit sharing (4,771) (26,473)
Accounts payable and accrued
liabilities 98,516 (271,368)
Income taxes receivable/payable 154,075 201,946
------- -------
Net cash provided
by operating activities 5,061,006 3,000,560
CASH FLOWS FROM INVESTING ACTIVITIES:
Advances to Symskaya Exploration (2,793,811) (1,993,049)
Sale of temporary cash investments 756,645 973,855
Capital expenditures (5,945,334) (5,147,218)
---------- ----------
Net cash used in
investing activities (7,982,500) (6,166,412)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of note payable - (920,000)
Purchase of treasury stock (43,056) (51,181)
Increase in other assets - (210,568)
Net borrowings on
revolving credit facility 2,860,000 3,524,820
Exercise of incentive
stock options 84,375 613,838
--------- ---------
Net cash provided by financing
activities 2,901,319 2,956,909
NET INCREASE (DECREASE) IN CASH (20,175) (208,943)
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 511,252 363,342
---------- ----------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 491,077 $ 154,399
========== ==========
CASH, CASH EQUIVALENTS AND
TEMPORARY CASH INVESTMENTS
AT END OF PERIOD $ 690,399 $ 1,647,272
========== ==========
Supplemental disclosures of cash flow information: Cash paid during the period
for:
Income taxes $ 175,745 $ 298,093
Interest $ - $ 66,378
The accompanying notes are an integral part of these statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Note 1. Interim Financial Statements
The accompanying financial statements of Equity Oil Company (the Company) have
not been audited by independent accountants, except for the Balance Sheet at
December 31, 1995. In the opinion of the Company's management, the financial
statements reflect the adjustments, all of which are of a normal and recurring
nature, necessary to present fairly the financial position of the Company as of
September 30, 1996, and the results of its operations for the three and nine
month periods ended September 30, 1996 and 1995, and its cash flows for the nine
month periods ended September 30, 1996 and 1995.
The financial statements and the accompanying notes to financial statements have
been prepared according to rules and regulations of the Securities and Exchange
Commission. Accordingly, certain notes and other information have been condensed
or omitted from the interim financial statements presented in this Quarterly
Report on From 10-Q. These financial statements should be read in conjunction
with the Company's 1995 Annual Report on Form 10-K, and the Company's Form
10-Q's for the first and second quarters of 1996.
The results for the three and nine month periods ended September 30, 1996 are
not necessarily indicative of future results.
Note 2. Net Income (Loss) Per Share
Net income (loss) per share is based on the weighted average number of common
shares outstanding during the period. Primary and fully diluted earnings per
share are essentially the same.
Note 3. Investment in Symskaya Exploration
Symskaya Exploration, Inc, the Company's 50% owned subsidiary, has determined
that it is not practical or economical to reenter the Lemok No. 1 well in an
effort to reach the primary Vendian objective. As a consequence, Symskaya has
charged the costs of drilling the Lemok No. 1 to expense as of September 30,
1996. The Company's equity share of the loss is $5.25 million ($3.3 million
after taxes). Further discussion of this item can be found under Results of
Operations in Item 2.
Note 4. Adoption of SFAS #121
Included in the 1995 figures is a non-cash charge for oil and gas property
impairment in the amount of $2,274,057 ($1,433,338 after taxes), which resulted
from the Company's adoption of SFAS No. 121 Accounting for the Impairment of
Long Lived Assets and Assets to be Disposed of, effective July 1, 1995.
<PAGE>
PART I
ITEM 2
Management's Discussion and Analysis of Financial Condition and
Results of Operation
RESULTS OF OPERATIONS
Financial Results
The Company recorded a net loss for the first nine months of 1996 in
the amount of $(1,939,215), or $(.15) per share, compared to a net loss during
the same period of 1995 in the amount of $(1,086,647), or $(.09) per share.
Included in the 1996 figures is an equity loss in Symskaya Exploration, Inc. of
$5,250,000 ($3,309,075 net of taxes). Included in the 1995 nine-month figures is
a non-cash charge for oil and gas property impairment of $2,274,057 ($1,433,338
net of taxes) which arose from the Company's adoption of SFAS #121, Accounting
for Long Lived Assets and Assets to be Disposed of.
Total revenues for the first nine months of 1996 were $12,118,357, an
increase of 22% over revenues of $9,928,595 recorded during the same period of
1995. Cash flow from operating activities was $5,061,006, an increase of 69%
over cash flow from operating activities of $3,000,560 recorded during the first
nine months of 1995.
The Company recorded a net loss for the third quarter of 1996 in the
amount $(2,760,271), or $(.22) per share on revenues of $4,205,700. This
compared to a net loss during the third quarter of 1995 of $(1,258,857), or
$(.10) per share, on revenues of $3,217,405.
Despite the negative financial results that were reported for the three
and nine month periods ended September 30, 1996, the Company continues to make
significant progress in its areas of focus.
Domestic Exploration Drilling
The Company earlier reported the testing of the eleventh successful gas
well drilled using 3-D seismic technology in the Grimes area of the Sacramento
Basin in northern California. The well, the #1-33 Jacob, tested gas during a
drill stem test from the Forbes formation at a rate of 5.1 million cubic feet
per day. In addition to the zone tested, additional potentially productive zones
have been identified by electric logs. Equity has a 25% working interest in the
well, which is operated by Slawson Exploration, Inc.
The #1-33 Jacob is the eleventh well drilled, and the tenth successful
well, on the 42 square mile Orion 3-D survey which was conducted in 1995. Seven
of the wells have been drilled in 1996 and the other four were drilled in 1995.
One well is presently drilling and five additional wells are scheduled to be
drilled before year end. Of the total wells drilled on the Orion survey, five
are currently on production, and the balance should be on production by the end
of the year. Initial production rates for the wells range from 1 to 5 million
cubic feet per day. Production from the wells is presently being sold in the
California spot market where prices over the last three months have ranged from
$1.69 to $2.09 per million BTU.
In addition to wells in the Orion survey, Equity has participated in
four other wells in the Grimes area and five other 3-D surveys resulting in two
completions and two dry holes. Equity intends to drill three additional wells on
these surveys during the fourth quarter of 1996. The Company is also
participating in two additional 3-D surveys in the fourth quarter of 1996. The
first, which is now underway, is a sixteen square mile survey operated by
Slawson Exploration, Inc. in which Equity has a 25% working interest. The second
is a seventeen square mile survey being operated by Equity in which the Company
currently has a 100% working interest.
The successful drilling on the Orion survey, resulting in a 91% success
rate to date, is a dramatic example of the utilization of 3-D seismic imaging to
locate gas in the Grimes area. Based upon the seismic interpretation experience
and the drilling success to date, the Company believes that, in addition to the
wells that will be drilled by year end 1996 on the Company's 3-D surveys,
additional well sites could be developed using 3-D technology in the Grimes
area.
<PAGE>
Equity also participated in the initial exploratory well on a project
developed by the Company's exploration staff, the North Riley Ridge Prospect in
Sublette County, Wyoming. The well was drilled to a depth of 8,630 feet and
encountered 48 feet of net pay in the Frontier formation. After stimulation, the
well flowed at a rate of 3.6 million cubic feet of natural gas per day. In
addition to the Frontier zone, the well encountered 42 feet of net pay in the
shallower Baxter zone, which will be tested at a later date.
The Company has an 18.75% working interest in this well, which is
located on the 12,000 acre North Riley Ridge Unit. The well is currently being
tied into production, and offset drilling activity will begin in the summer of
1997.
Development Drilling
The Company has begun to focus its exploitation efforts on some of the
properties that were purchased in 1995. The Sage Creek Unit #21, in the Sage
Creek Field in Big Horn County, Wyoming, was drilled during the first quarter of
1996, and has been completed as a producing oil well. Equity has a 46.25%
working interest in the well. This well is significant since the success of its
completion has the potential to set up other infill drilling opportunities in
the Sage Creek field.
Acquisitions
The Company has made two acquisitions of proved developed oil reserves
so far in 1996, both in Colorado. The first added 332,000 barrels of proved
developed reserves at a cost of $1.4 million, or $4.22 per barrel, and added
approximately 100 barrels per day of production. The second added 292,000
barrels of heavy oil at a cost of $386,000, or $1.32 per barrel, and added
approximately 130 barrels per day of production. In each case, the Company has a
100% working interest and operates the properties. In addition, the Company has
also acquired 42,000 barrels of proved developed reserves at properties where it
already owns interests. In addition to the reserves associated with these
purchases, each one of them has the potential to add incremental reserves
through recompletion of existing wells and infill drilling.
International Exploration in Russia
As mentioned previously, Symskaya Exploration, Inc, (Symskaya) the
Company's 50% owned subsidiary, has determined that it is not practical or
economical to reenter the Lemok No. 1 well in an effort to reach the primary
Vendian objective. As a consequence, Symskaya has charged the costs of drilling
the Lemok No. 1 to expense as of September 30, 1996. The Company's equity share
of the loss is $5.25 million ($3.3 million after taxes).
The Company is continuing to evaluate the testing results from four
zones that were a secondary target in the drilling of the Lemok No. 1. The
evaluation of the zones has included the analysis of fluid data and bottom hole
pressure data recovered during testing. Resistivity data obtained from the
recovered fluids have been used to reinterpret the electric logs run during the
drilling of the well, and confirmed the presence of hydrocarbons in the three
lower zones that were tested. However, this reinterpretation also shows that
these zones have high water saturations, and as a consequence tested water.
Analysis of the test data from the fourth zone also confirmed the presence of
hydrocarbons as seen in cores, logs, and drill cuttings. Furthermore,
reinterpretation of the electric logs in this zone using accurate formation
water resistivity indicates that portions of the zone could have the capacity to
produce measurable hydrocarbons. The inability of this zone to produce is still
being investigated, including an ongoing independent evaluation of the data. As
reported earlier, drilling at the well was terminated at a total depth of 14,102
feet due to mechanical problems prior to penetrating and testing the primary
target in the Vendian formation at an estimated total depth of 14,500 feet.
Based on the data collected and analyzed to date, Symskaya and the
Company believe that the project remains prospective, and Symskaya is actively
soliciting partners to participate in further exploration and fund the drilling
of a second well at the project. If Symskaya is unable to find a suitable
partner to fund the drilling of a second well, and consequently decides to
suspend operations at the project and write off the remaining capitalized costs,
the Company will be required to recognize an additional equity loss in Symskaya.
The Company's remaining investment in Symskaya was approximately $3.7 million as
of September 30, 1996.
<PAGE>
CAPITAL RESOURCES AND LIQUIDITY
Cash, cash equivalents, and temporary cash investments totaled $690,399
as of September 30, 1996, a decrease of $776,820 since year-end 1995. Working
capital at September 30, 1996 was $2,287,850, down from $3,721,049 at December
31, 1995. The Company's ratio of current assets to current liabilities was 2.40
to 1 at September 30, 1996, compared to 3.26 to 1 at December 31, 1995.
Decreases in cash and working capital result from the Company's increased
drilling program in 1996. Cash provided by operating activities was $5,061,006
in the first nine months of 1996, 69% higher than the same period of 1995, a
direct reflection of the increased oil and gas sales during 1996.
Investment in property and equipment for the first nine months of 1996,
including advances to Symskaya Exploration and proved property acquisitions,
totaled $8,739,145, a 22% increase from the amount recorded during the
corresponding nine months of 1995. Approximately $2.8 million was advanced to
Symskaya during the first nine months of 1996, compared to approximately $2.0
million during the same period of 1995.
The Company has drawn down its credit facility by $2.86 million during
1996, compared to $3.52 million in 1995, with funds being used for property
acquisitions and other working capital needs.
The Company believes that existing cash balances, cash flow from
operating activities, and the remaining $12.2 million borrowing capacity under
the revolving credit facility will provide adequate resources to meet its
capital, exploration, and acquisition spending objectives.
COMPARISON OF THIRD QUARTER 1996 WITH THIRD QUARTER 1995
Oil and gas sales increased 33% in the third quarter of 1996 to
$3,974,173 versus $2,987,833 in the same quarter of last year. Higher revenues
were a function of increases in oil and gas prices, as well as increases in gas
production. Total revenues increased 31% from year to year.
Oil production remained constant at 154,000 barrels in the third
quarter of 1995 and 1996. Gas production increased 24% from 318 Mmcf in 1995 to
395 Mmcf in 1996. The increase in gas production is a direct result of the
Company's successful exploration program in northern California.
Average prices received for crude oil were $22.48 per barrel during the
third quarter of 1996, up 28% from the $17.60 received in 1995. Gas prices
likewise increased to $1.30 per Mcf in 1996, compared to $.87 in 1995, an
increase of 49%.
Increases in operating costs reflect the addition of the properties
acquired by the Company during the past 12 months. During that time period,
Equity has acquired interests in 75 additional producing wells. The addition of
the properties aided the Company in increasing gas production, and also helped
arrest declining oil production. The cost of these wells was added to the
Company's depletion base, which, along with increased gas production, accounted
for the 1996 third quarter increase in depreciation, depletion, and amortization
charges.
Higher exploration expenses in 1996 result from higher lease rentals
assoicated with the Company's increased activity in California, higher dry holes
costs in 1996, and increased exploration staffing. In addition to higher
exploration costs, the Company's California projects required increased use of
3-D seismic technology. During the third quarter of 1996, the Company incurred
3-D charges of $153,000, while no such expenses were incurred during the same
period of 1995.
As discussed previously, during the third quarter of 1996 Symskaya
Exploration, Inc, the Company's 50% owned subsidiary, determined that it is not
practical or economical to reenter the Lemok No. 1 well in an effort to reach
the primary Vendian objective. As a consequence, Symskaya has charged the costs
of drilling the Lemok No. 1 to expense as of September 30, 1996. The Company's
equity share of the loss is $5.25 million ($3.3 million after taxes).
Included in the 1995 figures is a non-cash charge for oil and gas
property impairment in the amount of $2,274,057 ($1,433,338 after tax), which
arose from the Company's adoption of SFAS #121, Accounting for the Impairment of
Long Lived Assets and Assets to be Disposed of, effective July 1, 1995.
The income tax benefits recorded for both periods result primarily from
the deferred tax benefits associated with the equity loss and property
impairment charge discussed earlier.
<PAGE>
COMPARISON OF FIRST NINE MONTHS OF 1996 WITH FIRST NINE MONTHS OF 1995
Oil and gas sales increased 27% in the first nine months of 1996 to
$11,542,851 versus $9,115,940 in the same period of last year. This increase was
brought about principally by stronger oil prices, which were up 17% on average
from year to year. Oil production for the first nine months was 468,000 barrels,
up slightly from 1995 production of 459,000 barrels. Gas production for the
period increased 50% to 1,440 Mmcf from 963 Mmcf in 1995.
Average prices received for crude oil were $20.51 per barrel during the
first nine months of 1996, compared to $17.60 received in 1995. Gas prices also
increased to $1.35 per Mcf in 1996, compared to $1.08 in 1995, an increase of
25%.
As discussed earlier, increases in operating costs reflect the addition
of the properties acquired by the Company during the past 12 months.
Depreciation, depletion and amortization (DD&A) charges decreased by
$250,000 in 1996 over 1995 levels. The majority of the decrease is attributable
to the July 1, 1995 adoption of SFAS #121 mentioned previously, which removed
$2.2 million from the DD&A base almost entirely associated with marginally
economic, high-cost wells with high depletion rates. These decreases were
partially offset by DD&A charges associated with properties acquired by the
Company during the past 12 months.
Higher exploration expenses in 1996 result from higher lease rentals
assoicated with the Company's increased activity in California, higher dry holes
costs in 1996, and increased exploration staffing. In addition to higher
exploration costs, the Company's California projects required increased use of
3-D seismic technology. During the first nine months of 1996, the Company
incurred 3-D charges of $458,000, compared to $238,000 during the same period of
1995. Increases in general and administrative costs are primarily due to higher
compensation expenses, as well as increased insurance, legal, and investor
relations fees.
The income tax benefits recorded for both periods result primarily from
the deferred tax benefits associated with the equity loss and property
impairment charge discussed earlier.
PART II
OTHER INFORMATION
The answers to items listed under Part II are inapplicable or negative.
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.
EQUITY OIL COMPANY
(Registrant)
DATE: November 12, 1996 By /s/ Paul M. Dougan
----------------------- -------------------------
Paul M. Dougan, President
DATE: November 12, 1996 By /s/ Clay Newton
----------------------- -------------------------
Clay Newton, Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 690,399
<SECURITIES> 0
<RECEIVABLES> 2,733,241
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,927,122
<PP&E> 105,085,909
<DEPRECIATION> 60,629,318
<TOTAL-ASSETS> 52,977,559
<CURRENT-LIABILITIES> 1,639,272
<BONDS> 0
0
0
<COMMON> 12,751,100
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 52,977,559
<SALES> 11,542,851
<TOTAL-REVENUES> 12,118,357
<CGS> 0
<TOTAL-COSTS> 15,748,710
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (3,630,353)
<INCOME-TAX> (1,691,138)
<INCOME-CONTINUING> (1,939,215)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,939,215)
<EPS-PRIMARY> (.15)
<EPS-DILUTED> (.15)
</TABLE>
