SECURITIES AND EXCHANGE COMMISSION
450 Fifth Street, N.W.
Washington, D.C. 20549
FORM 10-Q/A
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended: April 30, 1996
Commission File Number: 0-9496
GOLD STANDARD, INC.
---------------------------
(Exact name of registrant
as specified in its charter)
Utah 87-0302579
- ----------------------------------------- -------------------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) identification number)
712 Kearns Building, Salt Lake City, Utah 84101
- ----------------------------------------- -------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number,
Including Area Code: (801) 328-4452
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Indicate by checkmark 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, and (2) has been subject to
such filing requirements for the past 90 days.
Yes _______ No _______
As of April 30, 1996, there were 15,097,500 shares of common capital
stock outstanding.
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
--------------------
GOLD STANDARD, INC.
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
FOR INCLUSION IN QUARTERLY REPORT
ON FORM 10-Q
April 30, 1996
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GOLD STANDARD, INC.
CONSOLIDATED BALANCE SHEETS
April 30, 1996 and October 31, 1995
April 30, 1996 October 31, 1995
-------------- ----------------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 2,674,851 $ 2,465,980
Royalties receivable - 133,764
Accrued interest 7,144 99
Trading securities at market value 505,090 -
Exchange traded options at market value 123,174 -
Prepaid expenses 2,013 5,118
-------------- --------------
TOTAL CURRENT ASSETS $ 3,312,272 $ 2,604,961
PROPERTY AND EQUIPMENT
Equipment and leasehold improvements $ 86,340 $ 100,060
-------------- --------------
86,340 100,060
OTHER ASSETS
Deferred offering costs 53,966 50,259
Deposits 740 740
-------------- --------------
54,706 50,999
-------------- --------------
$ 3,453,318 $ 2,756,020
============== ==============
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LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable - trade $ 50,680 $ 58,396
Accrued liabilities 887 566
Income tax payable 300 300
-------------- --------------
TOTAL CURRENT LIABILITIES 51,867 59,262
LONG-TERM LIABILITIES
Deferred liabilities 61,000 61,000
-------------- --------------
TOTAL LIABILITIES $ 112,867 $ 120,262
STOCKHOLDER'S EQUITY
Common stock 15,098 14,848
Additional paid-in capital 9,583,528 9,396,277
Retained deficit (6,258,175) (6,775,367)
-------------- --------------
TOTAL STOCKHOLDERS' EQUITY 3,340,451 2,635,758
-------------- --------------
$ 3,453,318 $ 2,756,020
============== ==============
See accompanying notes to consolidated financial statements.
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GOLD STANDARD, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three- and six-month periods ended April 30, 1996 and 1995
Three months ended Six months ended
April 30, April 30,
------------------------ ------------------------
1996 1995 1996 1995
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
INCOME FROM OPERATIONS
Royalty income $ 93,371 $ - $ 339,726 $ -
EXPENSES
Depreciation 7,388 5,402 14,777 10,593
Leasehold exploration
and carrying costs 121,288 78,499 203,315 134,272
General and administrative:
Legal 4,050 78,149 15,406 156,311
Other 67,779 84,192 175,271 156,889
----------- ----------- ----------- -----------
NET LOSS FROM OPERATIONS $ (107,134) $ (246,242) $ (69,043) $ (458,065)
OTHER INCOME (EXPENSES)
Gain from
trading securities $ 128,218 $ - $ 128,218 $ -
Gain on sale of assets 300,000 - 300,000 -
Unrealized gain on
trading securities 293,090 - 293,090 -
Interest income 24,065 30,767 50,053 59,511
Unrealized loss
on options (185,126) (140,350) (185,126) (327,800)
----------- ----------- ----------- -----------
NET INCOME (LOSS) $ 453,113 $ (355,825) $ 517,192 $ (726,354)
=========== =========== =========== ===========
Net income (loss)
per common share $ 0.03 $ (0.01) $ 0.03 $ (0.01)
=========== =========== =========== ===========
See accompanying notes to consolidated financial statements.
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GOLD STANDARD, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three- and six-month periods ended April 30, 1996 and 1995
Three months ended Six months ended
April 30, April 30,
------------------------ ------------------------
1996 1995 1996 1995
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Net income (loss) $ 453,113 $ (355,825) $ 517,192 $ (726,354)
Add (deduct) adjustments
to cash basis:
Depreciation 7,388 5,402 14,777 10,593
Net unrealized gains (107,964) 0 (107,964) 0
Gain on sale of assets (400,000) 0 (400,000) 0
Accounts receivable 167,965 (3,039) 126,719 (3,111)
Prepaid expenses 1,565 1,559 3,105 3,451
Deposits 0 (10,000) 0 (10,000)
Deferred costs (1,367) (11,567) (3,707) (12,039)
Accounts payable (33,260) (67,985) (7,714) (99,775)
Accrued liabilities 14 (188) 321 (192)
----------- ----------- ----------- -----------
NET CASH PROVIDED BY (USED
IN) OPERATING ACTIVITIES $ 87,454 (441,643) 142,729 (837,427)
CASH USED IN
INVESTMENT ACTIVITIES
Equipment purchased $ (540) $ 0 $ (1,058) $ (4,755)
Proceeds from sales
of trading securities 288,000 0 288,000 0
Purchase of options (308,300) 0 (308,300) 0
Bonuses on
sales of assets (100,000) 0 (100,000) 0
Increase in
restricted cash 0 (258) 0 (690)
----------- ----------- ----------- -----------
NET CASH USED IN
INVESTMENT ACTIVITIES $ (120,840) $ (258) $ (121,358) $ (5,445)
CASH PROVIDED BY
FINANCING ACTIVITIES
Issuance of
stock warrants 187,500 0 187,500 112,500
----------- ----------- ----------- -----------
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NET CASH PROVIDED BY
FINANCING ACTIVITIES $ 187,500 0 187,500 112,500
NET INCREASE
(DECREASE) IN CASH 154,114 (441,901) 208,871 (730,372)
CASH BALANCE AT
BEGINNING OF PERIOD 2,520,737 2,659,669 2,465,980 2,948,140
----------- ----------- ----------- -----------
CASH BALANCE AT
END OF PERIOD $2,674,851 $2,217,768 $2,674,851 $2,217,768
=========== =========== =========== ===========
Non-cash Transactions
- ---------------------
In February 1996 the Company exchanged their rights to certain diamond
properties for 100,000 shares of American Mining Fields stock valued at
$4.00 per share. The gain on the sale of $300,000 reported in Other Income is
net of bonuses on the transaction of $100,000
See accompanying notes to the consolidated financial statements
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GOLD STANDARD, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
April 30, 1996 and October 31, 1995
(Unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Company's accounting policies reflect industry practices and conform to
generally accepted accounting principles. The following policies are
considered to be significant.
Financial Statements
- --------------------
The financial information provided in the Consolidated Balance Sheet for the
year ended October 31, 1995, has been taken from the audited financial
statements at that date. In the opinion of management, all adjustments
necessary to present fairly the financial position, results of operations
and cash flow at April 30, 1996, have been made. All such adjustments were
of a normal, recurring nature.
Principles of Consolidation
- ---------------------------
The accompanying consolidated financial statements include the accounts of
Gold Standard, Inc., its wholly owned subsidiaries, Gold Standard South and
Kelwood Enterprises, Ltd., a 70% owned subsidiary, Big Pony Gold and an 82%
owned subsidiary, Gold Standard Minas. As used herein, references to Gold
Standard, Inc., the Registrant, or the Company refer to Gold Standard, Inc.
and its consolidated subsidiaries. All significant intercompany
transactions are eliminated.
Gold Standard South, a Utah corporation, was organized for the express
purpose of carrying on a property acquisition and gold exploration program
in the country of Uruguay. Big Pony Gold holds certain mineral exploration
concessions in Uruguay and is conducting exploration work on those
properties. Kelwood Enterprises, Ltd. is a wholly owned Canadian Corporation
with no active operations. Gold Standard Minas was organized for the purpose
of carrying on a gold exploration program in the country of Brazil.
Investment in Mining Properties
- -------------------------------
Prospecting and exploration costs incurred in the search for new mining
properties are charged to expense as incurred. Direct costs associated
with the development of identified reserves are capitalized until the
related geological areas are either put into production, sold or abandoned.
As of April 30, 1996, there were no geological areas under production other
than the San Juan Hills property from which the Company receives a royalty
from its production (see Note 9a).
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Earnings (Loss) Per Share
- -------------------------
Earnings (loss) per share of common stock is computed on the weighted-average
number of share outstanding during the period.
Cash Equivalents
- ----------------
For purposes of the statement of cash flows, the Company considers all highly
liquid debt instruments and investments readily convertible into cash, or
purchased with a maturity of three months or less, to be cash equivalents.
Trading Securities and Options
- ------------------------------
Instruments used in trading activities include both securities and options
and are stated at market value. Quoted market prices are generally used as
a basis to determine the market value. If quoted market prices are not
available, market values are based on dealer quotes. Realized and
unrealized losses are recognized in the financial statements.
Foreign Currency Translation
- ----------------------------
Substantially all assets and liabilities of the Company's international
operations are translated at year-end exchange rates and the resulting
adjustments are accumulated in stockholders' equity. Income and expenses
are translated at exchange rates prevailing during the period. Foreign
currency transaction gains and losses are included in net income, except
for those relating to intercompany transactions of a long-term investment
nature, which are accumulated in stockholders' equity.
NOTE 2 - TRADING SECURITIES
In February 1996, the Company entered into a non-monetary transaction
exchanging rights to diamond potential properties located in Brazil for
100,000 shares of American Mineral Fields stock (AMZ) which was trading at
$4.00 per share. This transaction resulted in a net gain to the Company of
$300,000 ($400,000 less $100,000 paid to three geologists as bonuses on the
transaction).
During February, March, and April 1996, the Company realized gains, net of
costs and commissions, on the sale of this stock in the amount of $128,218.
At April 30, 1996, the remaining 53,000 shares with a book value of $4.00
per share were valued at $9.53 per share, resulting in an unrealized gain on
the stock of $293,090.
NOTE 3 - EXCHANGE TRADED OPTIONS
The Company has invested in options to purchase gold. The options expire in
May 1998. Through April 30, 1996, the Company has recorded an unrealized
loss related to these instruments of $185,126.
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NOTE 4 - EQUIPMENT AND LEASEHOLD IMPROVEMENTS
Equipment and leasehold improvements as of April 30, 1996, and October 31,
1995, are detailed in the following summary:
Net Book Value
--------------------
Accumulated Apr. 30, Oct. 31,
Cost Depreciation 1996 1995
---------- ------------ --------------------
Furniture and fixtures $ 57,266 $ 45,424 $ 11,842 $ 12,795
Leasehold improvements 3,200 3,200 -- --
Vehicles and equipment 185,766 111,268 74,498 87,265
---------- ------------- --------- ---------
$ 246,232 $ 159,892 $ 86,340 $100,060
========== ============= ========= =========
Depreciation of furniture, fixtures, vehicles and equipment is calculated on
the straight-line method based on the estimated service lives of the
depreciable assets. Depreciation expense for the three- and six-month
periods ended April 30, 1996, totaled $7,388 and $14,777 ($5,402 and $10,593
for the three- and six-month periods ended April 30, 1995).
NOTE 5 - MINING PROPERTIES
The Company holds directly or through its subsidiary companies, mineral and
exploration rights to property located in the Dugway region of western Utah,
southern Uruguay, and Brazil. All exploration costs associated with these
properties have been charged to operations as incurred, consistent with the
Company's accounting policies (see Note 1). The Company's leasehold
exploration and carrying expenses for the six-month period ended April 30,
1996, are summarized as follows:
Uruguay $ 43,871
Brazil 149,444
United States 10,000
---------
Total $ 203,315
=========
NOTE 6 - DEFERRED LIABILITY
The Company received a payment of $61,000 in 1990 from Compania Minera San
Jose, S.A., a joint venture participant in Uruguay (see Note 9). The
payment is to be used to fund potential future reclamation costs on the San
Juan Hills joint venture in Uruguay. Upon completion of the reclamation
efforts, any unused portion of the deposit will be refunded to the payor.
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NOTE 7 - CAPITAL STOCK
In February 1996, outstanding stock warrants that were issued in March 1992,
were exercised for the purchase of 250,000 shares of common stock in the
Company. The exercise price of these warrants was $.75 per share. The
Company realized $187,500 from the transaction.
The Company's stock purchase warrants outstanding as of April 30, 1996, are
summarized as follows:
Shares
Issue Expiration Exercise Subject to
Date Date Price Warrant
----- ---------- -------- -----------
06/87 06/30/96 $1.25 700,000
10/87 10/01/96 1.25 100,000
07/88 07/18/99 2.25 750,000
10/89 09/15/96 3.00 25,500
03/92 03/31/03 .75 750,000
05/93 01/18/98 1.25 50,000
----------
Total outstanding warrants 2,375,500
==========
If all outstanding stock purchase warrants were exercised, the total proceeds
would be $3,389,000.
NOTE 8 - RELATED PARTY TRANSACTIONS
The Company has funded the majority of operations of its partially owned
subsidiary, Big Pony Gold, since November 1988. This has been done with
unsecured, non-interest bearing long term cash advances. During the three
and six monthly periods ended April 30, 1996, the Company made cash payments
to or on the behalf of Big Pony Gold totaling $26,829 and $42,652. At April
30, 19965, the Company had a receivable from Big Pony Gold of $181,948.
These related party transactions have been eliminated in the consolidated
financial statements.
In March 1996, the Company gave all of its mining rights in the Campo Del Oro
property in Uruguay to Big Pony Gold in exchange for 750,000 shares of Big
Pony Gold common stock.
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NOTE 9 - OPERATING AND JOINT VENTURE AGREEMENTS
The Company was party to three operating or joint venture agreements differ,
they all generally address funding of exploration activities and subsequent
mine development and production activities, should exploration results
warrant development. The agreements are summarized as follows:
a. In September 1988, The Company entered into a joint venture agreement
for the exploration of certain properties in southern Uruguay in
Compania Minera San Jose S.A. (CMSJ), a wholly owned subsidiary of
Bond International Gold. During 1992 CMSJ was acquired by
California-based American Resources, Inc. (ARI) who has continued to
drill and explore the property under the terms of the agreement. ARI
previously acquired a 60% interest in the project by funding the
project's exploration activities, while the Company retained a 40%
participating interest. In an agreement dated February 22, 1995, the
Company's 40% participating interest was replaced with a 20% royalty
interest in a parcel of this property known as the San Carlos Mine.
In June 1995 gold production commenced at this mine. In accordance
with the terms of the joint venture agreement, the Company's
royalties revenues totaled $339,726 for the six months ended April
30, 1996.
b. In June 1992, the Company entered into a joint venture agreement with
Santa Fe Pacific Mining, Inc. The objective of the agreement was to
facilitate exploration and potential future development of all the
company's mineral holdings in southern Uruguay, except fore those
properties covered by a joint venture agreement with properties
covered by a joint venture agreement with Compania Minera San Jose
S.A. which is discussed in the preceding paragraph. Under terms of
this agreement, Santa Fe could earn up to a 60% interest in
producible discoveries on the subject properties by funding its
proportionate share of future development costs or have its 40%
participating interest eroded. In February 1996, the agreement was
terminated with all assets and properties being relinquished by Santa
Fe Pacific Mining, Inc.
c. In November 1994, Big Pony Gold, Inc., the Company's 67.5% owned
subsidiary, entered into a joint venture agreement with Ashton Mining
of Australia and Santa Fe Pacific Gold. The objective of the
agreement was to facilitate the exploration for diamonds and
encompassed the entire country of Uruguay. Under terms of this
agreement Big Pony Gold's share of costs and proceeds was 16% for
diamonds and 24% for gold. These terms did not apply to any
properties covered by the preceding two joint venture agreements.
In February 1996, the agreement was terminated.
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NOTE 10 - INCOME TAX
The amounts and expiration dates of net operating loss carry-forwards and
investment tax credits at April 30, 1996, are detailed in the following
summary:
Federal State
Net Operating Net Operating Invest.
Expiration Date Loss Loss Tax Credit
- ------------------- ------------- ------------- ----------
October 31, 1996 $ -- $ 545,295 $ 26
December 31, 1996 -- 216,911 270
October 31, 1997 -- 569,296 --
October 31, 1998 -- 15,927 --
October 31, 1999 -- 559,140 --
October 31, 2001 -- 674,520 --
October 31, 2003 1,477,109 -- --
December 31, 2003 1,391 -- --
October 31, 2004 675,277 -- --
December 31, 2004 332,153 -- --
October 31, 2005 1,106,261 -- --
December 31, 2005 408,740 -- --
October 31, 2006 762,506 -- --
October 31, 2007 568,726 -- --
October 31, 2008 16,537 -- --
October 31, 2009 558,487 -- --
October 31, 2010 674,483 -- --
------------- ------------- ----------
$ 6,581,670 $ 2,581,089 $ 296
============= ============= ==========
NOTE 11 - LITIGATION
In 1986, the Company filed a lawsuit against American Barrick Resources
Corporation, Getty Oil Company, and Texaco, relative to party's interest on
the Mercur gold mine located in Tooele County, Utah. The lawsuit alleges
breach of contract, breach of fiduciary duty and several other causes of
action related to the operating agreement between the Company and the
defendants or their successors in interest to the Mercur gold mine. Under
the action the Company sought the return of the Mercur property, monetary
damages and other appropriate relief.
In April 1993, the Company accepted an out-of-court cash settlement with
American Barrick Resources Corporation, one of the defendants in the action,
for a total of $5,225,000.
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The lawsuit against the other defendants went to trial in July 1993.
Following a seven-week trial, the jury returned a verdict in favor of the
Company on September 3, 1993, and awarded the Company $404,164,000 in
damages. Subsequently, the judge set aside the jury verdict, thereby
denying the Company the jury's award. The Company appealed the judge's
decision to the Supreme Court of the State of Utah. On January 11, 1996, the
Supreme Court announced its decision to uphold the trial judge's directed
verdict for the defendants in the case. As a result of the unsuccessful
appeal, the Company must pay approximately $48,000 in court costs. These
costs have been accrued in the April 30, 1996 financial statements.
In May 1996, the Company was notified that a Writ of Reconsideration filed
with the Utah Supreme Court was denied. The Company has decided to no longer
continue its efforts in the lawsuit.
Item 2. Management's Discussion and Analysis of Financial Condition and
---------------------------------------------------------------
Results of Operations.
---------------------
INTRODUCTION
Gold Standard, Inc. and its subsidiaries (the Registrant) are
principally engaged in the acquisition of, and exploration for, producing or
potentially productive gold properties. Its activities are concentrated, for
the most part, in southern Uruguay, Brazil, and west-central Utah.
A significant factor that affected the Registrant's operations for years
was its lawsuit against the operators and former operators of the Mercur Gold
Mine in Tooele County, Utah. A January 1996 ruling against the Registrant,
and a subsequent denial for reconsideration has ended the Registrant's
efforts in the case.
RESULTS OF OPERATIONS
The Registrant holds a 40% royalty interest in a joint venture property
in southern uruguay known as the San Juan Hills property. Its joint venture
partner, American Resources, Inc., has been funding exploration on this
property. Mining from one deposit, the San Carlos Mine, has resulted in
royalty revenue of $339,726 for the Registrant during the six-month period
ended April 30, 1996. In March 1996, surface mining on the deposit was
completed. Additional studies are continuing and if deposits are found the
Registrant will receive royalties or its share of production.
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The Registrant had no other operating revenue and no other properties
under production. The Registrant does not expect to receive revenue from
any of its other properties during the near future. The Registrant's
operating activities have been solely exploration related and have been
concentrated on their Uruguay, Brazil, Dugway, and other western Utah
properties. Exploration-related expenses for the six-month period ended
April 30, 1996 were $203,315 ($134,272 for the six-month period ended April
30 are summarized as follows:
Uruguay $ 43,871
Brazil 149,444
United States 10,000
---------
Total $ 203,315
=========
Exploration expenses have been significantly higher in 1996 than in 1995
because of the Registrant's increased activity in its properties in Brazil.
Exploration activities continue on the Registrant's Uruguay properties. The
termination of the joint venture agreements with Santa Fe Pacific Mining, Inc.
has made the Registrant responsible for all exploration costs. However, the
Registrant is currently working on funding for the Uruguay properties
through its subsidiary, Big Pony Gold.
Legal fees and costs relative to the Mercur litigation should no longer
use a significant portion of the Registrant's funds, since the State of Utah
Supreme Court's ruling for the defendants in the case. Legal fees for the
six-month period ended April 30, 1996 totaled $15,406 ($156,311 for the
six-month period ended April 30, 1995).
The Registrant's general and administrative expenses, excluding legal
expenses, totaled $175,271 for the six-month period ended April 30, 1996
($156,311 for the six-month period ended April 30, 1995). The two most
significant general and administrative expense categories during the
six-month period ended April 30, 1996 were (a) professional and consulting
fees ($64,211), and (b) wages and salaries ($65,400). The balance of
general and administrative expenses includes office supplies and expenses,
office rent, travel, etc.
LIQUIDITY AND CAPITAL RESOURCES
In addition to royalty income from its Uruguay property, the Registrant
will continue to rely on funds received from the 1993 settlement with one of
the parties in the Mercur lawsuit. The Registrant will also receive
operating funds as investors exercise outstanding warrants for the purchase
of common stock.
The Registrant has no material capital commitments or agreements which
would require significant outlays of capital during the remaining six months
of the year.
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The Company's liquidity should improve in 1996. In the
short term, the Registrant has sufficient cash reserves to fund operations.
These reserves have been funded by royalties and sales of trading securities.
In the long-term, it will look to the issuance of additional equity capital
and increased production from its properties.
INFLATION
The impact of inflation on the Registrant's operations will vary. The
future price of gold and the level of future interest rates could directly
affect the Registrant's future operating revenue.
Serious increases in inflation could increase general and administrative
expenses for the Registrant and make it difficult to remain within budget.
However, management does not expect any material increases in the inflation
rate during the near future.
ENVIRONMENTAL RULES AND REGULATIONS
The Registrant is not aware of any noncompliance with environmental
rules and regulations, nor has the Registrant been cited by any local, state
or national agency, either in the United States or South America, for
noncompliance with environmental rules and regulations.
At April 30, 1996, the Registrant had cash and investments of $12,019
which was pledged as security against future reclamation costs on mineral
properties under exploration in Uruguay. With the termination of the joint
venture agreements with Santa Fe Pacific Mining, Inc., the Registrant will
need to put additional funds on deposit for future reclamation. These
amounts had not been determined as of the date of this report. Except for
the above reclamation costs, the Company will have no involvement
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<PAGE>
Item 1. Legal Proceedings.
-----------------
Not applicable
Item 2. Changes in Securities.
---------------------
Not applicable
Item 3. Defaults Upon Senior Securities.
-------------------------------
Not applicable
Item 4. Submission of Matters to a Vote of Security Holders.
---------------------------------------------------
No items were presented for a vote of security holders during
the period ended April 30, 1996
Item 5. Other information.
-----------------
Not applicable
Item 6. Exhibits and Reports on Form 8-K.
--------------------------------
Not applicable
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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.
GOLD STANDARD, INC.
Registrant
DATED: June 10, 1996 By /s/ Scott L. Smith
------------------------------------
Scott L. Smith
President, Treasurer,
Chairman of the Board and
Principal Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> APR-30-1996
<CASH> $2,674,851
<SECURITIES> $628,264
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> $3,312,272
<PP&E> $86,340
<DEPRECIATION> 0
<TOTAL-ASSETS> $3,453,318
<CURRENT-LIABILITIES> $51,867
<BONDS> 0
0
0
<COMMON> $15,098
<OTHER-SE> $3,325,000
<TOTAL-LIABILITY-AND-EQUITY> $3,453,318
<SALES> $93,371
<TOTAL-REVENUES> $560,247
<CGS> 0
<TOTAL-COSTS> $200,505
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> $453,113
<INCOME-TAX> $453,113
<INCOME-CONTINUING> $(107,134)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> $453,113
<EPS-PRIMARY> $.03
<EPS-DILUTED> $.03
</TABLE>
