Page 1 of 13
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended JUNE 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 0-11431
New Energy Company of Indiana Limited Partnership
(formerly, New Energy Company of Indiana)
(Exact name of registrant as specified in its charter)
Indiana 52-1195762
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3201 West Calvert Street, South Bend, Indiana 46613
(Address of principal executive offices)
(Zip Code)
219-233-3116
(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 _
Page 2 of 13
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
NEW ENERGY COMPANY OF INDIANA LIMITED PARTNERSHIP
BALANCE SHEETS
JUNE 30, 1996 DECEMBER 31, 1995
Assets (UNAUDITED) (AUDITED)
Current assets:
Cash and cash equivalents (Note 3) $ 7,119,101 $ 11,460,672
Accounts receivable 4,947,970 7,353,405
Other receivables 371,442 178,685
Inventories (Note 3) 4,428,271 4,235,685
Spare parts 2,633,228 2,604,433
Prepaid expenses and other 412,316 317,815
Total current assets 19,912,328 26,150,695
Property, plant and equipment 159,504,293 159,512,304
Accumulated depreciation (deduction) (135,304,344) (134,000,746)
24,199,949 25,511,558
Total assets $ 44,112,277 $ 51,662,253
=========== ===========
Liabilities and partners'
capital deficit
Current liabilities:
Accounts payable $ 2,478,735 $ 3,832,976
Interest payable 0 290,740
Taxes payable 2,723,943 1,704,799
Other accrued liabilities 1,784,193 1,241,512
Current portion of long-term debt 60,698,868 3,268,249
(Note 2)
Total current liabilities 67,685,739 10,338,276
Long-term debt, less current portion 10,060,089 66,574,072
(Note 2)
Partners' capital (deficit):
General Partner (4,946,205) (4,107,859)
Limited Partners (29,164,299) (21,619,189)
Special Limited Partner 5,000,000 5,000,000
Syndication costs (4,523,047) (4,523,047)
Total Partners' capital deficit (33,633,551) (25,250,095)
Total liabilities and ___________ ___________
Partners' capital deficit $ 44,112,277 $ 51,662,253
=========== ===========
See notes to financial statements.
Page 3 of 13
NEW ENERGY COMPANY OF INDIANA LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
<TABLE>
THREE THREE SIX SIX
MONTHS ENDED MONTHS ENDED MONTHS ENDED MONTHS ENDED
JUNE 30, 1996 JUNE 30, 1995 JUNE 30, 1996 JUNE 30, 1995
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net sales, ethanol $ 23,795,188 $ 27,473,215 $ 48,656,519 $ 53,335,830
By-product revenue 9,268,980 6,719,530 18,899,179 13,885,935
33,064,168 34,192,745 67,555,698 67,221,765
Cost of goods sold 34,490,727 27,641,903 70,092,413 53,744,849
Gross profit (loss) (1,426,559) 6,550,842 (2,536,715) 13,476,916
Selling, general and
administrative expenses 2,079,604 1,947,724 4,085,580 3,854,730
Income (loss) from operations (3,506,163) 4,603,118 (6,622,295) 9,622,186
Interest income 108,448 172,691 237,791 295,686
Interest expense (1,002,347) (1,093,461) (1,998,952) (2,194,600)
Net income (loss) $(4,400,062) $ 3,682,348 (8,383,456) $ 7,723,272
========== ========== ========= ===========
Net income (loss) allocable to
Limited Partners $(3,960,056) $ 3,314,113 $(7,545,110) $ 6,950,945
========== ========== ========= ===========
Limited Partner units
outstanding 6,400 6,400 6,400 6,400
========== ========== ========== ===========
Net income (loss) per unit $ (619) $ 518 $ (1,179) $ 1,086
========== ========== =========== ===========
See notes to financial statements.
</TABLE>
Page 4 of 13
NEW ENERGY COMPANY OF INDIANA LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
<TABLE>
SIX SIX
MONTHS ENDED MONTHS ENDED
JUNE 30, 1996 JUNE 30, 1995
(UNAUDITED) (UNAUDITED)
<S>
Operating activities <C> <C>
Net income (loss) $(8,383,456) $ 7,723,272
Adjustments to reconcile net income
(loss) to net cash provided by
(used in) operating activities:
Depreciation and amortization 1,311,609 1,300,440
Increase (decrease) in deferred
management fees payabe to
general partner 15,101 (1,100,188)
Increase in accrued interest on
long term debt 1,978,648 265,226
Increase (decrease) due to changes
in operating assets and liabilities:
Accounts and other receivables 2,212,678 628,889
Inventories (192,586) 523,691
Spare parts (28,795) (35,716)
Prepaid expenses and other (94,501) (237,590)
Accounts payable (1,354,241) 178,103
Interest payable (290,740) (294,713)
Taxes payable 1,019,144 16,478
Other accrued liabilities 542,681 634,544
Net cash provided by (used in) operating
activities (3,264,458) 9,602,436
Investing activities
Purchase of property and equipment 0 (65,715)
Net cash used in investing activities 0 (65,715)
Financing activities
Payments on long-term debt (1,077,113) (8,186,565)
Net cash used in financing activities (1,077,113) (8,186,565)
Increase (decrease) in cash and cash
equivalents (4,341,571) 1,350,156
Cash and cash equivalents, beginning of
period 11,460,672 8,879,804
Cash and cash equivalents, end of period $ 7,119,101 $ 10,229,960
========== ==========
See notes to financial statements.
</TABLE>
Page 5 of 13
New Energy Company of Indiana Limited Partnership
Notes to Financial Statements
For the Quarter Ended June 30, 1996 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
The accompanying unaudited condensed financial statements have
been prepared in accordance with generally accepted accounting
principles for interim financial information and with the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X.
Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. For further
information, refer to the financial statements and footnotes
thereto included in the Company's annual report on Form 10-K for
the year ended December 31, 1995.
2. DEBT AND CONTINUATION OF OPERATIONS
The Company has sought from various potential lenders
an additional $10 million operating line of credit, secured by
certain inventory and other assets of the Company. Great American
Insurance Company ("GAIC") has indicated an interest to make the
loan on terms satisfactory to the Company, subject to the consent
of the DOE and BDC to the placement of this secured indebtedness.
Negotiations of the terms of this loan and the DOE's and BDC's
consent thereto are ongoing.
On or about May 17, 1996, the Company elected not to pay its real
estate taxes due and payable on May 17, 1996, in the amount of
$879,421. Non-payment of these taxes resulted in a default under
certain agreements with the DOE and BDC. The Company requested the
DOE and BDC to waive such a default. On August 15, 1996, the DOE
agreed to "standstill" respecting the tax payment default, contingent
upon a "commercial loan [that would bring the taxes current by November
10, 1996] being approved by the [DOE] and the appropriate documents
being executed among the parties." The Company believes that the
proposed loan with GAIC will satisfy the DOE,s contingency and
effectuate a standstill under the DOE Agreements and the BDC Letter
Agreement until the real property tax payments are made.
There can be no assurance, however, that GAIC will mske the loan or that
the DOE and BDC will approve the loan. Consequently, the debt to the
DOE and BDC are shown as current liabilities for the purposes of this
10-Q quarterly report. In addition, continuation of the Company's
operations in its present form is dependent upon its ability to achieve
cash flow from favorable market price levels for corn and ethanol,
obtaining additional concessions from the Department of Energy ("DOE")
and Business Development Corporation ("BDC") and /or obtaining
additional financing. The financial statements do not include
any adjustments that might result from the outcome of these
uncertainties.
3. INVENTORIES
Inventories consist of raw materials (corn, coal, unleaded
gasoline and chemicals), work-in-process and finished goods (fuel
grade ethanol and DDGS). A summary of inventories by classifica-
tion follows:
June 30, 1996 December 31, 1995
Raw materials $1,677,228 $2,162,478
Work-in-process 825,819 559,451
Finished goods 1,925,224 1,513,756
$4,428,271 $4,235,685
========= =========
The Company has executed a contract with a grain supplier to provide
its expected corn requirements at a price which may fluctuate with the
commodity prices or be fixed at the Company's election. In connection
with the contract, the Company has purchased an irrevocable standby
letter of credit of $2,000,000, secured by cash and cash equivalents,
which expires December 26, 1996, for the benefit of the grain supplier.
As of July 31, 1996, the Compamy has fixed the price for corn purchases
through September 1996.
Page 6 of 13
ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
On December 23,1991, the Company restructured its loan with the DOE
by the execution of an Amended and Restated Loan Restructuring
Agreement (the "Restructuring Agreement") and two new promissory
notes, Note A and Note B. Note A, in the amount of $55,000,000,
provides for 119 consecutive monthly installments of interest and
principal of $631,533 commencing April 30, 1992 and maturing on March
31, 2002. Note A provides for a fixed rate of interest of 6.75% per
annum. Note B, in the amount of $40,622,523, provides for a fixed
rate of interest of 4.00% per annum. Payments of Note B are based
upon monthly cash flow as defined by the Restructuring Agreement.
Note B matures on March 31, 2002. Accordingly, the fixed monthly
payment required by the Restructuring Agreement is $631,533. Based
upon present facts and circumstances, management has estimated that no
principal payments will be made during the next twelve months under
the terms of Note B.
On March 25, 1996, the Company and DOE entered into an agreement ("DOE
Letter Agreement") which allows the Company to suspend payment of all
Note A principal and interest payments during the period January 1,
1996, through September 30, 1996. As described above, Note A requires
monthly principal and interest payments totaling $631,533. Under the
terms of the DOE Letter Agreement, nine principal and interest
payments totaling $5,683,797 will be suspended on Note A. Suspended
payments will be added monthly to the outstanding principal balance of
Note B and will accrue interest at the Note B interest rate of 4% per
annum. Note B payments will continue to be calculated and paid on a
cash flow basis as defined in the DOE Letter Agreement.
On October 14, 1982, the Company entered into an agreement with the
BDC, a not-for-profit corporation organized and existing under the
laws of the State of Indiana, which provided for the financing,
through the U.S. Department of Housing and Urban Development, of a
loan to the Company, in the aggregate amount of $2,432,264, for the
construction of certain ethanol plant facilities within the City of
South Bend, Indiana. As of June 30, 1996, the principal amonut of
debt owed to BDC was $985,700.
Page 7 of 13
On March 27, 1996, the Company and BDC entered into an agreement ("BDC
Letter Agreement") which allows the Company to suspend payment of all
principal and interest payments due to BDC during the period January
1, 1996, through September 30, 1996. Principal and interest payments
totaling $69,877 are due BDC on each of February 1, 1996; May 1, 1996;
August 1, 1996 and November 1, 1996. Under the terms of the BDC
Letter Agreement, three payments due in February, May and August 1996,
totaling $209,631 will be suspended. Suspended payments will be
evidenced by the execution of a new note that will accrue interest at
a rate of 6% per annum and be payable in 38 equal monthly payments of
$6,194 beginning October 1, 1996.
The DOE and BDC have certain rights should there be a default under
the DOE Letter Agreement or the Restructuring Agreement, or the BDC
Letter Agreement, including the acceleration of the debt and
enforcement of liens securing the debt which cover substantially all
of the Company's assets.
On or about May 17, 1996, the Company elected not to pay its real
estate taxes due and payable on May 17, 1996, in the amount of
$879,421. Non-payment of these taxes resulted in a default under
certain agreements with the DOE and BDC. The Company requested
the DOE and BDC to waive such a default. On August 15, 1996, the
DOE agreed to "standstill" respecting the tax payment default,
contingent upon a "commercial loan [that would bring the taxes
current by November 10, 1996] being approved by the [DOE] and the
appropriate documents being executed among the parties." The
Company believes that the proposed loan with GAIC will satisfy
the DOE's contingency and effectuate a standstill under the DOE
Agreements and the BDC Letter Agreement until the real property
tax payments are made. There can be no assurance, however,
that GAIC will make the loan or that the DOE and BDC will approve
the loan. Consequently, the debts to the DOE and BDC are
shown as current liabilities for the purposes of this 10-Q
quarterly report.
On a long term basis, the Comapny's ability to maintain sufficient
liquidity to meet its debt service and other obligations will depend
on further concessions by the DOE and BDC and/or obtaining additional
financing. Such liquidity will also depend to a large extent upon favorable
market price levels for corn and ethanol, factors over which the
Company has little control. However, through its corn purchasing
agreement (see Note 3 to the financial statements) and its strategy
to execute multiple month ethanol sales contracts, the Company is
attempting to minimize its exposure to fluctuations in the corn and
gasoline markets.
During the first six months of 1996, the Company's average cost per
bushel of corn was approximately 60% higher than the same period in
1995. This is due primarily to a smaller corn crop during 1995 than
in 1994 and an increase in worldwide demand for corn. The Company
does not anticipate that corn prices will decrease significantly
before the arrival of new crop corn in October 1996.
As a result of the continued rise in corn prices, the Company has
decided to decrease production by approximately 36% during the period
June through September 1996. The Company anticiaptes returning to
full production upon the arrival of new crop corn in October 1996.
when prices are expected to be closer to hisorical levels. In
connection with the decrease in production the Company has layed off
twenty-three (23) employees representing approximately 15% of its
workforce. Continuation of the Company's operations in its present
form is dependent upon its ability to achieve cash flow from favorable
market price levels for corn and ethanol, obtaining additional
concessions from the DOE and BDC and/or obtaining additional
financing.
RESULTS OF OPERATIONS
Page 8 of 13
For the three months ended June 30, 1996, the Company generated a
loss of $4,400,062 as compared to income of $3,682,348 for the three
months ended June 30, 1995. The loss generated during the three
months ended June 30, 1996, was primarily due to a significant increase
in the price of corn caused by a significantly smaller 1995 corn crop
than in 1994 and an increase in worldwide demand for corn.
Revenues from the sale of ethanol decreased during the three months
ended June 30, 1996, to $23,795,188 from $27,473,215 during the three
months ended June 30, 1995. This decrease was primarily due to a
decrease in the volume of ethanol sold offset by a slight increase in
the average price per gallon. The volume decrease is primarily due to
the decrease in production beginning in June 1996 caused by the
continued rise in corn prices.
Revenue from the sale of by-products increased during the three months
ended June 30, 1996, to $9,268,980 from $6,719,530 during the three
months ended June 30, 1995. The increase in by-product revenue was
primarily due to a significant increase in the selling price of DDGS
offset by a decrease in volume produced as a result of the ethanol
production decrease beginning in June 1996.
Ethanol production totaled 18,104,135 gallons for the three months
ended June 30, 1996, as compared to 22,228,129 gallons for the three
months ended June 30, 1995. This decrease primarily results from the
decrease in production beginning in June 1996 caused by the continued
rise in corn prices. The plant also produced 58,540 tons of
distillers dried grains and 36,355 tons of gaseous carbon dioxide for
the three months ended June 30, 1996 as compared to 71,484 tons of
distillers dried grains and 43,654 tons of gaseous carbon dioxide for
the three months ended June 30, 1995. Distillers dried grains and
gaseous carbon dioxide are by-products of the ethanol production
process.
Cost of goods sold increased by $6,848,824 during the three months
ended June 30, 1996, compared to the same period in 1995, primarily
due to an approximate 60% increase in the average price of corn per
bushel.
Page 9 of 13
For the six months ended June 30, 1996, the Company generated a loss of
$8,383,456 as compared to income of $7,723,272 for the six months ended
June 30, 1995. The loss generated was primarily due to a significant
increase in the price of corn, the Company's primary raw material.
Revenue from the sale of ethanol decreased during the six months ended June
30, 1996, to $48,656,519 from $53,335,830 during the six months ended June
30, 1995. This decrease was primarily due to an unplanned outage
caused by equipment failure, and to a greater extent, a decrease in
production beginning in June 1996 caused by higher corn prices.
Revenue from the sale of by-products increased during the six months
ended June 30, 1996, to $18,899,179 from $13,885,935 during the six
months ended June 30, 1995. This increase in by-product revenue was
primarily due to a significant increase in the selling price of DDGS
offset by a decrease in volume produced as a result of the ethanol
production decrease beginning in June 1996.
Ethanol production totaled 38,689,462 gallons for the six months ended
June 30, 1996, as compared to 43,938,174 gallons for the six months ended
June 30, 1995. This decrease was primarily due to an unplanned outage
caused by equipment failure and to a greater extent, a decrease
in production beginning in June 1996 caused by higher corn prices.
The plant also produced 123,007 tons of disillers dried grains and
76,368 tons of gaseous carbon dioxide for the six months ended June
30, 1996, as compared to 140,243 tons of distillers dried grains and
83,733 tons of gaseous carbon dioxide for the six months ended June
30, 1995.
Cost of goods sold increased by $16,347,564 during the six months ended
June 30, 1996, compared to the same period in 1995, primarily due to
a significant increase in the price of corn.
Page 10 of 13
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
The Company is not party to any material legal proceedings
other than routine litigation incidental to its business.
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
On or about May 17, 1996, the Company elected not to pay its real
estate taxes due and payable on May 17, 1996, in the amount of
$879,421. Non-payment of these taxes resulted in a default under
certain agreements with the Doe and BDC. The Company requested
the DOE and BDC to waive such a default. On August 15, 1996, the
DOE agreed to "standstill" respecting the tax payment default,
contingent upon a "commercial loan [that would bring the taxes
current by November 10, 1996] being approved by the [DOE] and the
appropriate documents being executed among the parties." The
Company believes that the proposed loan with GAIC will satisfy
the DOE's contingency and effectuate a standstill under the DOE
Agreements and the BDC Letter Agreement until the real property
tax payments are made. There can be no assurance, however, that
GAIC will make the loan or that the DOE and BDC will approve
the loan.
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
New Energy Corporation of Indiana, an Indiana corporation
(the "General Partner"), serves as the general partner of the
Company. The General Partner manages and controls the Company's
affairs and has general responsibility in all matters affecting
the Company's business.On May 29, 1996, the General Partner held
its Annual Meeting of Stockholders. At the Annual Meeting, the
stockholders of the General Partner elected Messrs. Julius S.
Anreder, William R. Martin, Joseph A. Pedoto and Jerome K.
Walsh as directors of the General Partner, replacing the former
Board of Directors which consisted of Messrs. Anthony R. Corso,
John H. Parker, Alberto Shaio and Victor Shaio. Following
the Annual Meeting, the Board of Directors of the General
Partner replaced the executive officers of the General Partner
and elected the following persons as executive officers: Julius
S. Anreder, Chairman of the Board, Larry W. Singleton, President
and Treasurer, Victor Shaio, Vice President, and William R. Martin,
Secretary. Nathan P. Kimpel was elected Vice President and
Assistant Secretary by the Board on August 2. 1996. By mutual
agreement, Victor Shaio terminated his employment with the
General Partner effective August 15, 1996.
The following is a brief biography, as available, for each
member of the board and each new officer, of the General
Partner of the Company:
Julius S. Anreder
Partner of Oscar Gruss & Son, the controlling shareholder of
Oscar Gruss & Son, Inc. a New York based member of the New
York Stock Exchange. Mr. Anreder has served as Vice President
of Oscar Gruss & Son, Inc. for more than five years. Mr. Anreder
is a director of American Financial Enterprises, Inc. and
Citicasters, Inc.
Page 11 of 13
William R. Martin
Chairman of the Board (since 1993) and President and Chief
Executive Officer (until 1993) of MB Computing, Inc., a
computer software and services company. Mr. Martin is a
director of American Financial Group, Inc., American
Annuity Group, Inc., American Financial Corporation,
and American Premier Underwriters, Inc.
Joseph A. Pedoto
President, JLM Financial, Inc., a financial consulting
firm. Director of Provident Bancorp, Inc. since 1993.
Jerome K. Walsh
Member in the law firm of Lane & Mittendorf LLP< New York,
New York.
Larry W. Singleton
President, Chief Executive Officer and Treasurer of New
Energy Corporation of Indiana, Inc. since May 29, 1996.
Prior to joining the company, Mr. Singleton was a financial
consultant to financially troubled adn other companies since
1993. He served as a director from 1993 through 1995 of
Alert Centre, Inc. ("Alert"), a security monitoring company.
He previously served during 1992 and 1993 as chief financial
officer of Alert and as director, president and chief
financial officer of certain Alert-related entities. During
the period April 1992 through November 1992, Mr. Singleton
was a director of Specialty Equipment Companies, Inc., a food
service equipment manufacturer. During the period July 1989
through January 1992, Mr. Singleton was a financial
reorganization consultant to secured lenders, bondholders and
managements of various financially troubled companies.
Before then, Mr. Singleton served as executive vice president
and chief financial officer to The Charter Company, a
petroleum marketing company.
Nathan P. Kimple
General Manager and/or Plant Manager of the Company since
1984.
Item 6. Exhibits and Reports on Form 8-K
A.) Exhibits:
4.1 Restated and Amended Limited Partnership Agreement
of the Company dated October 26, 1982 (filed as
Exhibit 12 to the Form 8 amending the Company's
quarterly report on Form 10-Q for the nine months
ended September 30, 1982, and incorporated herein
by reference).
4.2 Form of Subscription Agreement (filed as Exhibit
B-2 to the Registration Statement on Form S-1, No.
2-74254, and incorporated herein by reference).
Page 12 of 13
4.3 Form of Assumption Agreement (filed as Exhibit B-3
to the Prospectus dated April 28, 1982 contained in
the Company's Registration Statement on Form S-1,
No. 2-74254, and incorporated herein by reference).
B.) Reports on Form 8-K:
None
Page 13 of 13
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.
NEW ENERGY COMPANY OF INDIANA
LIMITED PARTNERSHIP
By: New Energy Corporation of Indiana,
General Partner
Dated: August 20, 1996 By: S\________________________________
Larry W. Singleton
President and Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1996
<CASH> 7,119,101
<SECURITIES> 0
<RECEIVABLES> 5,319,412
<ALLOWANCES> 0
<INVENTORY> 7,061,499
<CURRENT-ASSETS> 19,912,328
<PP&E> 159,504,293
<DEPRECIATION> (135,304,344)
<TOTAL-ASSETS> 44,112,277
<CURRENT-LIABILITIES> 67,685,739
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 44,112,277
<SALES> 67,555,698
<TOTAL-REVENUES> 67,555,698
<CGS> 70,092,413
<TOTAL-COSTS> 70,092,413
<OTHER-EXPENSES> 4,085,580
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,998,952
<INCOME-PRETAX> (8,383,456)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (8,383,456)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
