FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
{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
Commission file number 0-10268
C&K 1981 FUND-A, LTD.
(Exact name of registrant as specified in its charter)
Texas 76-0307703
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
7555 E. Hampden Avenue, Suite 600
Denver, CO 80231
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 303-695-3600
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.
X
Yes No
The C&K 1981 Fund-A, Ltd. is a Texas limited partnership.
<PAGE>
INDEX TO FORM 10-Q
C&K 1981 Fund-A, Ltd.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets
September 30, 1996 and December 31, 1995
Statements of Operations
Three months and nine months ended September 30, 1996 and 1995
Statements of Changes in Partners' Capital (Deficit)
Nine months ended September 30, 1996 and 1995
Statements of Cash Flows
Nine months ended September 30, 1996 and 1995
Notes to the Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
SIGNATURE
<PAGE>
C&K 1981 FUND-A, LTD.
(A Texas Limited Partnership)
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1996 1995
Oil and gas properties and equipment,
at cost, using the full cost method
of accounting $ 21,880,819 $ 20,941,558
Less: Accumulated depreciation, depletion
and amortization (20,497,418) (20,270,615)
Total Assets $ 1,383,401 $ 670,943
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Accrued liabilities $ 5,930 $ 9,973
Current payable to General Partner 220,000 135,301
Long-term payable to General Partner 1,202,714 734,599
Total liabilities 1,428,644 879,873
Partners Capital (Deficit):
General Partner 233,862 184,921
Limited Partners (329,167) (453,932)
Combining adjustment 50,062 60,081
Total Partners' Capital (Deficit) (45,243) (208,930)
Total Liabilities and Partners'
Capital (Deficit) $ 1,383,401 $ 670,943
[FN]
The accompanying notes are an integral part of these financial statements.
<PAGE>
C&K 1981 FUND-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
1996 1995 1996 1995
Revenues:
Oil and gas sales $ 530,167 $242,283 $1,364,602 $875,539
Expenses:
Lease operating 68,968 55,774 220,254 247,593
Production tax 62,285 26,734 166,890 110,765
Marketing deductions 2,140 4,697 8,491 12,547
Depreciation, depletion
and amortization 105,943 27,852 226,803 100,735
General and administrative 67,912 63,028 196,037 199,315
Interest - affiliated 33,213 26,803 81,836 80,723
Total Expenses 340,461 204,888 900,311 751,678
Net income $ 189,706 $ 37,395 $ 464,291 $123,861
Net income (loss) allocation:
General Partner $ 149,461 $ 38,864 $ 349,545 $131,374
Limited Partners 44,079 1,026 124,765 1,501
Combining adjustment (3,834) (2,495) (10,019) (9,014)
Net income $ 189,706 $ 37,395 $ 464,291 $123,861
Net income per limited
partnership unit
(3,302 outstanding) $ 13.35 $ .31 $ 37.78 $ 0.45
[FN]
The accompanying notes are an integral part of these financial statements.
<PAGE>
C&K 1981 FUND-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
(Unaudited)
Nine months ended September 30, 1995
Combining
General Limited Adjustment
Partner Partners (Note 3) Total
Balance at January 1, 1995 $223,920 $(500,537) $ 72,544 $(204,073)
Contributions 217,133 -- -- 217,133
Distributions (376,113) -- -- (376,113)
Net income (loss) 131,374 1,501 (9,014) 123,861
Balance at September 30, 1995 $196,314 $(499,036) $63,530 $(239,192)
Nine months ended September 30, 1996
Combining
General Limited Adjustment
Partner Partners (Note 3) Total
Balance at January 1, 1996 $ 184,921 $(453,932) $ 60,081 $(208,930)
Contributions 294,006 -- -- 294,006
Distributions (594,610) -- -- (594,610)
Net income (loss) 349,545 124,765 (10,019) 464,291
Balance at September 30, 1996 $ 233,862 $(329,167) $ 50,062 $ (45,243)
[FN]
The accompanying notes are an integral part of these financial statements.
<PAGE>
C&K 1981 FUND-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended
September 30,
1996 1995
Cash flows from operating activities:
Net income $ 464,291 $ 123,861
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion and amortization 226,803 100,735
Changes in operating assets and liabilities:
Decrease in accrued liabilities (4,043) --
Increase (decrease) in payable to
General Partner 552,814 --
Net cash provided by operating activities 1,239,865 224,596
Cash flows from investing activities:
Additions to oil and gas properties and
equipment (939,261) (666)
Net cash used in investing activities (939,261) (666)
Cash flows from financing activities:
Distributions to General Partner (594,610) (376,113)
Contributions by General Partner 294,006 217,133
Net cash used in financing activities (300,604) (223,930)
Net increase (decrease) in cash -- --
Cash at beginning of period -- --
Cash at end of period $ -- $ --
[FN]
The accompanying notes are an integral part of these financial statements.
<PAGE>
C&K 1981 FUND-A, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
The C&K 1981 Fund-A, Ltd. (the "Partnership"), a Texas Limited
Partnership, was organized on December 16, 1980, to acquire, explore,
develop and operate onshore oil and gas properties in the United States and
commenced operations on May 12, 1981. Total initial Limited Partner
contributions were $8,255,000 including $100,000 contributed by C&K
Petroleum, Inc. ("C&K"), the initial General Partner.
C&K, after several corporate reorganizations beginning in September of
1984 and ending in December of 1991, was acquired by Ultramar Oil and Gas
Limited ( UOGL ), an indirect wholly-owned subsidiary of LASMO plc.
Effective November 18, 1992, UOGL was sold to Williams-Cody Limited
Liability Company, a Wyoming limited liability company ("WCLLC"), owned by
Williams Gas Management Company ("WGMan") and Cody Resources, Inc.
("CRI"). On January 1, 1993, UOGL changed its name to Williams-Cody, Inc.
("Williams-Cody").
Effective May 1, 1993, Cody Company, a wholly owned subsidiary of The
Gates Corporation, purchased the units of WCLLC owned by WGMan. As a
result of this acquisition, the unit holders of WCLLC are Cody Company and
its wholly owned subsidiary, CRI. Subsequently, effective May 15, 1993,
the name of Williams-Cody, Inc. was changed to CODY ENERGY, INC. ("CODY"),
and the name of Williams-Cody Limited Liability Company was changed to
Gates-Cody Energy Company ("GCEC"), a Limited Liability Company. CODY is
the surviving corporation and, pursuant to the authority provided in the
Partnership Agreement, manages and controls the Partnership's affairs and
is responsible for the activities of the Partnership.
Basis of Accounting
The accounts of the Partnership are maintained on the accrual basis in
accordance with accounting practices permitted for federal income tax
reporting purposes. In order to present the accompanying financial
statements on the basis of generally accepted accounting principles for
financial reporting purposes, adjustments have been made to account for oil
and gas properties under the full cost method of accounting.
Oil and Gas Properties
The Partnership uses the full cost method of accounting for oil and gas
properties in accordance with rules prescribed by the Securities and
Exchange Commission ("SEC"). Under this method, all costs incurred in
connection with the exploration for and development of oil and gas reserves
are capitalized. Such capitalized costs include lease acquisition,
geological and geophysical work, delay rentals, drilling, completing and
equipping oil and gas wells and other related costs together with costs
applicable to CODY's technical personnel directly engaged in evaluating and
maintaining oil and gas prospects and drilling oil and gas wells.
Maintenance and repairs are charged against income when incurred. Renewals
and betterments which extend the useful life of properties are capitalized.
The capitalized costs of all oil and gas properties are depleted on a
composite units-of-revenue method computed on a future gross revenue
basis. An additional depletion provision is made if the total
capitalized costs of oil and gas properties exceed the "capitalization
ceiling" which is calculated as the present value of future net revenues
from estimated production of the Partnership's proved oil and gas
reserves as furnished by independent petroleum engineers.
Future gross revenues have been estimated using rules prescribed by the
SEC. Under these rules, year-end prices are utilized in determining future
gross revenues.
Contributions and Distributions
Contributions by the General Partner, as presented in the Statements of
Changes in Partners' Capital (Deficit), represent amounts paid by the
General Partner for its allocated share of the Partnership's costs and
expenses. Distributions to the General Partner represent amounts collected
by the General Partner for its allocated share of the Partnership's
revenues.
Net Income (Loss) per Limited Partnership Unit
Net income (loss) per limited partnership unit is computed by obtaining
the Limited Partners net income (loss) (see Statements of Changes in
Partners' Capital (Deficit)) and dividing by the total limited partnership
units outstanding.
Payable to the General Partner
The Partnership's payable to the General Partner is the Limited
Partners' obligation for their share of costs, net of proceeds from the
sales of the Partnership s crude oil and natural gas, arising from
Partnership operations, which are funded entirely by the General Partner.
The current portion of the liability is the amount estimated to be
collectible from the Limited Partners' net operating revenues over the
current operating cycle (one year).
Revenue Recognition
The Partnership recognizes oil and gas revenues for only its ownership
percentage of total production under the entitlement method. Purchase,
sale and transportation of natural gas and crude oil are recognized upon
completion of the sale and when transported volumes are delivered.
Concentration of Credit Risk
Financial instruments which subject the Partnership to concentrations
of credit risk consist principally of trade receivables. The Partnership s
policy is to evaluate, prior to entering agreements, each purchaser s
financial condition. The Partnership sells to purchasers with different
geographic and economic characteristics. Trade receivables, which are
generally uncollateralized, are from oil and gas companies located
throughout the United States.
Use of Estimates
The preparation of the Partnership s financial statements in conformity
with generally accepted accounting principles necessarily requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the balance sheet dates and the reported amount of revenues
and expenses during the reporting periods. Actual results could differ
from those estimates.
Reclassifications
Certain amounts from prior years have been reclassified to be
consistent with the financial statement presentation for 1996. Such
reclassifications had no effect on net income.
NOTE 2 - GAS CONTRACT
Since June 1, 1993, Williams Gas Marketing has purchased all of the
Partnership's natural gas production under an agreement that calls for
market responsive prices which are tied to a published index. The
Partnership remains responsible for all costs related to production,
gathering, processing or severance of the gas prior to Delivery Point.
These costs have been recorded as marketing deductions in the financial
statements.
NOTE 3 - ALLOCATION OF PARTNERSHIP REVENUES, COSTS AND EXPENSES
The Partnership Agreement provides that revenues, costs and expenses
shall be allocated to the partners as follows:
Limited General
Partners Partner
REVENUES
Sale of Production . . . . . . . . . . . . . . . . 50% 50%
Sale of Equipment . . . . . . . . . . . . . . . . . 50 50
Interest Income . . . . . . . . . . . . . . . . . . 99 1
COSTS AND EXPENSES
Organization and Offering Expenses Other than
Sales Commissions . . . . . . . . . . . . . . . . 0 100
Leasehold Acquisition Costs . . . . . . . . . . . . 0 100
Subsequent Leasehold Acquisition Costs . . . . . . 50 50
Intangible Drilling Costs . . . . . . . . . . . . . 99 1
Tangible Drilling and Completion Costs Relating to
Commercially Productive Wells . . . . . . . . . . 0 100
Post-Completion Costs . . . . . . . . . . . . . . . 50 50
Operating Costs . . . . . . . . . . . . . . . . . . 50 50
Special Costs . . . . . . . . . . . . . . . . . . . 99 1
General and Administrative Expenses . . . . . . . . 50 50
The depreciation, depletion and amortization provision is calculated
based on discrete calculations utilizing the Partnership's and the
partners' share of the related capital costs and estimated future net
revenues. For financial statement purposes, each partner's depreciation,
depletion and amortization has been increased by the amount that his share
of unamortized costs exceeded the capitalization ceiling. At September 30,
1996 and 1995, the net capitalized costs of the Partnership's oil and gas
properties did not exceed the capitalization ceiling.
The combining adjustment included in partners capital of $50,062 and
$63,530 at September 30, 1996 and 1995, respectively, represents the
difference resulting from computing the full cost ceiling test in prior
years on the total partnership basis, which is used for financial reporting
purposes, and the limited partners and general partner basis. The
adjustment is an allocation of partners capital and does not affect net
income.
NOTE 4 - PURCHASE OF LIMITED PARTNERS' INTERESTS
The Limited Partners may require the General Partner to purchase up to
ten percent of their interests annually. The purchase price is based on
the Limited Partners' proportionate share of the sum of (i) two-thirds of
the present worth of estimated future net revenues discounted at the prime
rate in effect on the applicable valuation date plus one percent, (ii) the
present value of the estimated salvage value of all production facilities
and tangible assets, and (iii) the net book value of all other assets and
liabilities.
In addition to the 40 units purchased by the General Partner for its
initial capital contribution, a total of 1,189.50 units had been purchased
from Limited Partners as of December 31, 1995. At January 1, 1996, the
General Partner calculated a purchase price of $78.11 per Limited Partner
unit. Within the prescribed tender period, which ended June 30, 1996, a
total of 95 Limited Partners tendered 296.25 units to the General Partner
for a total repurchase price of $23,140.09.
NOTE 5 - SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES
The General Partner is reimbursed for administrative and overhead costs
incurred in conducting the business of the Partnership. Such
reimbursements have been the maximum allowed under the terms of the
Partnership Agreement, and were $185,738 for each nine month period ended
September 30, 1996 and 1995.
During the first nine months of 1996 and 1995, the Partnership
distributed $594,610 and $376,113, respectively, to the General Partner for
its allocated share of net revenues, and the General Partner contributed
$294,006 and $217,133, respectively, for its share of costs and expenses.
After such time as total contributions from the Limited Partners have
been expended, the General Partner may advance funds to the Limited
Partners for their share of costs and expenses for continuing operations.
Interest was charged to the Limited Partners on such advances at a rate
which approximated 9.4% and 8.2% during the nine months ended September 30,
1996 and 1995, respectively. The General Partner is reimbursed for funds
advanced to the Limited Partners from revenues otherwise allocable to the
Limited Partners.
NOTE 6 - INCOME TAXES
Income taxes are not levied at the Partnership level, but rather on the
individual partners; therefore, no provision for liability for federal and
state income taxes has been reflected in the accompanying financial
statements. The tax returns, the qualification of the Partnership as a
partnership for tax purposes, and the amount of the Partnership's income or
loss is subject to examination by federal and state tax authorities. If
such examinations result in changes with respect to the Partnership's
qualifications or in changes in the Partnership's income or loss, the tax
liability of the partners could be changed accordingly.
NOTE 7 - CONTINGENCIES
The Partnership has a working capital deficiency and a net capital
deficiency. As a result of the deficit capital position of the Limited
Partners' interests, all net cash flows attributable to the Limited
Partners' share of the Partnership's operations are presently applied
entirely against its indebtedness for past funds advanced by the General
Partner and are not available to fund Partnership needs. Funds required by
the Partnership in excess of those generated by operations will be advanced
by the General Partner.
The General Partner is currently considering either transferring its
limited partner and general partner interests in the Partnership,
withdrawing as general partner of the Partnership, or taking other actions
to reduce its responsibilities in the Partnership, which could lead to the
ultimate dissolution of the Partnership. These conditions raise
substantial doubt about the Partnership's ability to continue as a going
concern. As long as CODY remains the General Partner of the Partnership,
GCEC intends to continue advancing funds required by the Partnership in
excess of those generated by operations, through CODY. The accompanying
financial statements do not include any adjustments that might result from
the outcome of this uncertainty.
C&K 1981 FUND-A, LTD.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
Net cash flow for the nine months ended September 30, 1996 was applied
to the Limited Partners' debt to the General Partner. Consequently, the
Partnership has no cash on hand at September 30, 1996.
The Partnership s financing requirements for operating expenses are
currently provided by revenues from its producing operations. Any funds
required by the Partnership in excess of those generated by operating
proceeds will be advanced by the General Partner. The Partnership has no
plans for additional exploratory or developmental capital programs, except
those necessary to maintain well productivity for 1996. In this regard,
the Partnership spent approximately $920,000 to sidetrack the existing
wellbore of the McIlhenny #1 in Iberia Parish, Louisiana.
The Partnership cannot predict with any degree of certainty the prices
it will receive in the remainder of 1996 or in future years for its crude
oil and natural gas. The Partnership s financial condition, operating
results and liquidity will be materially affected by any significant
fluctuations in sales prices. The Limited Partners ability to reimburse
funds advanced by the General Partner will be similarly affected.
RESULTS OF OPERATIONS
Three Months Ended September 30, 1996 vs. Three Months Ended September
30, 1995
Net income for the three months ended September 30, 1996 was $189,706,
compared to $37,395 reported for the same period in 1995, an increase of
$152,311 or 407%. This increase is due to higher sales prices as well as
an increase in crude oil production.
Crude oil and natural gas sales during the three months ended September
30, 1996 were $530,167, an increase of $287,884 or 119% compared to the
same period in 1995. Natural gas production and plant products decreased
to 178 thousand cubic feet ("mcf"), and 37 equivalent mcf per day,
respectively, while crude oil production increased to 245 barrels per day
during the third quarter of 1996, compared to the 1995 level of 145
barrels, 213 mcf, and 43 equivalent mcf, respectively, per day. During the
third quarter of 1996, average sales prices were $21.53 per barrel for
crude oil, $2.34 per mcf for natural gas and $1.82 per equivalent mcf for
plant products, compared to $15.55, $1.49, and $1.27, respectively, for the
same period in 1995.
Lease operating expense for the three months ended September 30, 1996
increased by $13,194 or 24% compared to the corresponding period in 1995.
The increase in lease operating expenses is due mainly to the addition of
the McIlhenny #1-Sidetrack #3 well which started producing during the
second quarter of 1996. Production tax expense for the third quarter of
1996 increased by $35,551 or 133% compared to the same period in 1995.
This increase is primarily due to higher oil production. Marketing
deductions were $2,140 for the three months ended September 30, 1996 as
compared to $4,697 for the corresponding period in 1995. Depreciation,
depletion and amortization expense increased by $78,091 or 280% in the
third quarter of 1996 compared to the same period in 1995. The costs
associated with the completion of the McIlhenny #1-Sidetrack #3 well, along
with additional reserves, increased the depletion and reserve bases for the
third quarter of 1996, which increased the amount of depreciation,
depletion and amortization expense in 1996. General and administrative
expenses for the third quarter of 1996 increased by $4,884 or 8% compared
to the same period in 1995. Interest expense increased by $6,410 or 24%
compared to the corresponding period in 1995. The increase in interest
expense is due to higher interest rates during the third quarter.
Nine Months Ended September 30, 1996 vs. Nine Months Ended September 30,
1995
Net income for the nine months ended September 30, 1996 was $464,291,
compared to $123,861 reported for the same period in 1995. This increase
of $340,430 or 275% was primarily attributable to increased revenues from
the sale of crude oil and natural gas production.
Crude oil and natural gas sales during the nine months ended September
30, 1996 were $1,364,602, an increase of $489,063 or 56% compared to the
same period in 1995. Crude oil and natural gas production per day
increased to 217 barrels per day and 200 mcf per day, respectively, while
plant products decreased to 42 equivalent mcf per day during the first nine
months of 1996, compared to the 1995 level of 169 barrels, 190 mcf, and 56
equivalent mcf, respectively, per day. During the first nine months of
1996, average sales prices were $20.34 per barrel for crude oil, $2.45 per
mcf for natural gas, and $1.87 per equivalent mcf for plant products,
compared to $16.82, $1.53 and $1.41, respectively, for the same period in
1995.
Lease operating expense for the nine months ended September 30, 1996
decreased by $27,339 or 11% compared to the corresponding period in 1995.
This decrease was the result of additional safety and environmental costs
and the plugging of one well in 1995, which did not occur in 1996.
Production tax expense for the first nine months of 1996 increased by
$56,125 or 51% compared to the same period in 1995, which related to
increases in oil and gas production. Marketing deductions were $8,491 for
the nine months ended September 30, 1996 compared to $12,547 for the
corresponding period in 1995. Depreciation, depletion and amortization
expense increased by $126,068 or 125% in 1996 compared to the same period
in 1995. This increase relates to the completion of the McIlhenny #1-
Sidetrack #3 well in April, 1996, which increased the depletion base and
total reserves attributable to the Partnership. General and administrative
expenses for the first nine months of 1996 decreased by $3,278 or 2%
compared to the same period in 1995. Interest expense increased by $1,113
or 1% in 1996, primarily due to higher interest rates in 1996.
PART II - OTHER INFORMATION
C&K 1981 FUND-A, LTD.
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
None.
<PAGE>
SIGNATURE
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.
C&K 1981 Fund-A, LTD.
(Registrant)
By: /s/ Dan R. Taylor
Dan R. Taylor
Vice President - Finance
CODY ENERGY, INC.
Successor General Partner
DATE: November 14, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1996
<PERIOD-START> JUL-1-1996 JAN-1-1996
<PERIOD-END> SEP-1-1996 SEP-1-1996
<CASH> 0 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 21,880,819 21,880,819
<DEPRECIATION> 20,497,418 20,497,418
<TOTAL-ASSETS> 1,383,401 1,383,401
<CURRENT-LIABILITIES> 225,930 225,930
<BONDS> 0 0
0 0
0 0
<COMMON> 0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 1,383,401 1,383,401
<SALES> 530,167 1,364,602
<TOTAL-REVENUES> 530,167 1,364,602
<CGS> 0 0
<TOTAL-COSTS> 307,248 818,475
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 33,213 81,836
<INCOME-PRETAX> 189,706 464,291
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 189,706 464,291
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 189,706 464,291
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
