SECURITIES AND EXCHANGE COMMISSION
450 Fifth Street, N.W.
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended: January 31, 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
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,
and (2) has been subject to such filing requirements for the past
90 days.
Yes X No
----- -----
As of January 31, 1996, there were 14,847,500 shares of
common capital stock outstanding.
<PAGE>
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
--------------------
GOLD STANDARD, INC.
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
FOR INCLUSION IN QUARTERLY REPORT
ON FORM 10-Q
January 31, 1996
<PAGE>
<PAGE>
GOLD STANDARD, INC.
CONSOLIDATED BALANCE SHEETS
January 31, 1996 and October 31, 1995
<TABLE>
<CAPTION>
January 31, 1996 October 31, 1995
---------------- ----------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 2,520,737 $ 2,465,980
Royalties receivable 175,000 133,764
Accrued interest 109 99
Prepaid expenses 3,578 5,118
-------------- --------------
TOTAL CURRENT ASSETS 2,699,424 2,604,961
PROPERTY AND EQUIPMENT
Equipment and leasehold
improvements 93,188 100,060
-------------- --------------
93,188 100,060
OTHER ASSETS
Deferred offering costs 52,599 50,259
Deposits 740 740
-------------- --------------
53,339 50,999
-------------- --------------
$ 2,845,951 $ 2,756,020
============== ==============
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable - trade $ 83,941 $ 58,396
Accrued liabilities 873 566
Income tax payable 300 300
-------------- --------------
TOTAL CURRENT LIABILITIES 85,114 59,262
LONG-TERM LIABILITIES
Deferred liabilities 61,000 61,000
-------------- --------------
TOTAL LIABILITIES 146,114 120,262
STOCKHOLDERS' EQUITY
Common stock 14,848 14,848
Additional paid-in capital 9,396,278 9,396,277
Retained deficit (6,711,289) (6,775,367)
-------------- --------------
TOTAL STOCKHOLDERS' EQUITY 2,699,837 2,635,758
-------------- --------------
$ 2,845,951 $ 2,756,020
============== ==============
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<PAGE>
GOLD STANDARD, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three-month periods ended January 31, 1996 and 1995
<TABLE>
<CAPTION>
Three months ended
January 31,
-----------------------------------
1996 1995
---------------- ----------------
(Unaudited) (Unaudited)
<S> <C> <C>
INCOME FROM OPERATIONS
Royalty Income $ 246,355 $ -
EXPENSES
Depreciation 7,389 5,191
Leasehold exploration
and carrying costs 82,027 55,773
General and Administrative:
Legal 11,356 78,162
Other 107,489 72,697
---------------- ----------------
NET INCOME (LOSS)
FROM OPERATIONS 38,094 (211,823)
OTHER INCOME (EXPENSES)
Interest income 25,988 28,744
Loss from investments - (187,450)
---------------- ----------------
NET INCOME (LOSS) $ 64,082 $ (370,529)
================ ================
Net income (loss)
per common share $ 0.00 $ (0.03)
================ ================
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<PAGE>
GOLD STANDARD, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three-month periods ended January 31, 1996 and 1995
<TABLE>
<CAPTION>
Three months ended
January 31,
-----------------------------------
1996 1995
---------------- ----------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net Income (loss) $ 64,082 $ (370,529)
Add (deduct) adjustments
to cash basis:
Depreciation 7,389 5,191
Increase (decrease) in:
Accounts payable 25,545 (31,790)
Accrued liabilities 307 (4)
Decrease (increase) in:
Accounts receivable (41,248) (72)
Prepaid expenses 1,540 1,892
Deferred costs (2,340) (472)
-------------- --------------
NET CASH PROVIDED BY
(USED IN) OPERATING ACTIVITIES 55,275 (395,784)
CASH FLOWS FROM
INVESTMENT ACTIVITIES:
Equipment purchased (518) (4,755)
Increase in restricted cash - (432)
-------------- --------------
NET CASH USED IN
INVESTMENT ACTIVITIES (518) (5,187)
CASH PROVIDED BY
FINANCING ACTIVITIES:
Proceeds from stock transactions - 112,500
-------------- --------------
NET CASH PROVIDED BY
FINANCING ACTIVITIES - 112,500
NET INCREASE (DECREASE) IN CASH 54,757 (288,471)
CASH BALANCE AT
BEGINNING OF PERIOD 2,465,980 2,948,140
-------------- --------------
CASH BALANCE AT END OF PERIOD $ 2,520,737 $ 2,659,669
============== ==============
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<PAGE>
GOLD STANDARD, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
January 31, 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
January 31, 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 67.5% 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 refers 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 January 31, 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.
<PAGE>
<PAGE>
GOLD STANDARD, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
January 31, 1996 and October 31, 1995
(Unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Earnings (Loss) Per Share
- -------------------------
Earnings (loss) per share of common stock is computed on the
weighted-average number of shares 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.
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 - EQUIPMENT AND LEASEHOLD IMPROVEMENTS
Equipment and leasehold improvements as of January 31, 1996 and
October 31, 1995 are detailed in the following summary:
<TABLE>
<CAPTION>
Net Book Value
------------------
Accumulated Jan. 31, Oct. 31,
Cost Depreciation 1996 1995
---------- ------------ ------------------
<S> <C> <C> <C> <C>
Furniture &
fixtures $ 56,726 $ 44,418 $ 12,308 $ 12,795
Leasehold
improvements 3,200 3,200 - -
Vehicles &
equipment 185,766 104,886 80,880 87,265
--------- --------- -------- --------
$ 245,692 $ 152,504 $ 93,188 $100,060
========= ========= ======== ========
</TABLE>
<PAGE>
<PAGE>
GOLD STANDARD, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
January 31, 1996 and October 31, 1995
(Unaudited)
NOTE 2 - EQUIPMENT AND LEASEHOLD IMPROVEMENTS (Continued)
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-month period ended January 31, 1996 totaled $7,389
($5,191 for the three-month period ended January 31, 1995).
NOTE 3 - 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 three-month period
ended January 31, 1996 are summarized as follows:
Uruguay $ 19,181
Brazil 62,846
Utah -
---------
Total $ 82,027
=========
NOTE 4 - 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 7). 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.
<PAGE>
<PAGE>
GOLD STANDARD, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
January 31, 1996 and October 31, 1995
(Unaudited)
NOTE 5 - CAPITAL STOCK
The Company's stock purchase warrants outstanding as of January
31, 1996, are summarized as follows:
<TABLE>
<CAPTION>
Shares
Issue Expiration Exercise Subject to
Date Date Price Warrant
- ----- ---------- -------- ----------
<S> <C> <C> <C>
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 1,000,000
05/93 01/18/98 1.25 50,000
----------
Total outstanding warrants 2,625,500
==========
</TABLE>
If all outstanding stock purchase warrants were exercised, the
total proceeds would be $3,576,500.
NOTE 6 - 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-month period ended January
31, 1996, the Company made cash payments to or on the behalf of
Big Pony Gold totaling $15,823. At January 31, 1996, the Company
had a receivable from Big Pony Gold of $155,869. These related
party transactions have been eliminated in the consolidated
financial statements.
NOTE 7 - OPERATING AND JOINT VENTURE AGREEMENTS
The Company is a party to three operating or joint venture
agreements. While the terms of the 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:
<PAGE>
<PAGE>
GOLD STANDARD, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
January 31, 1996 and October 31, 1995
(Unaudited)
NOTE 7 - OPERATING AND JOINT VENTURE AGREEMENTS (Continued)
a. In September 1988, the Company entered into a joint venture
agreement for the exploration of certain properties in
southern Uruguay with 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 June 1995, gold
production commenced at this property. In accordance with
the terms of the joint venture agreement, the Company's
royalties revenues totaled $246,355 for the three months
ended January 31, 1996.
b. In June 1992, the Company entered into a joint venture
agreement with Santa Fe Pacific Mining, Inc. The objective
of the agreement is to facilitate exploration and potential
future development of all the Company's mineral holdings in
southern Uruguay, except for those properties covered by a
joint venture agreement with Compania Minera San Jose, S.A.,
which is discussed in the preceding paragraph. Under the
terms of this agreement, Santa Fe can earn up to a 60%
interest in producible discoveries on the subject properties
by funding 100% of the exploration expenses up to either a
specified minimum investment or until a decision to develop a
discovery is reached. Thereafter, the Company must
participate by funding its proportionate share of future
development costs or see its 40% participating interest
eroded. In no event, however, will the Company's
participating interest fall below 25%. In October 1995, the
Company was notified that Santa Fe Pacific Mining, Inc.
intends to terminate the joint venture agreement with the
Company in 1996.
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 is to facilitate the exploration
for diamonds and encompasses the entire country of Uruguay.
Under the terms of this agreement, Big Pony Gold's share of
costs and proceeds is 16% for diamonds and 24% for gold.
<PAGE>
<PAGE>
GOLD STANDARD, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
January 31, 1996 and October 31, 1995
(Unaudited)
NOTE 7 - OPERATING AND JOINT VENTURE AGREEMENTS (Continued)
These terms do not apply to any properties covered by the
preceding two joint venture agreements.
NOTE 8 - INCOME TAX
The amounts and expiration dates of net operating loss carry-
forwards and investment tax credits at January 31, 1996 are
detailed in the following summary:
<TABLE>
<CAPTION>
Federal State
Net Operating Net Operating Investment
Expiration Date Loss Loss Tax Credit
- --------------- ------------- -------------- ----------
<S> <C> <C> <C>
October 31, 1996 $ - $ 545,295 $ 26
December 31, 1996 - 216,911 270
October 31, 1997 - 569,296 -
October 31, 1998 - 515,401 -
October 31, 1999 - 59,666 -
October 31, 2001 - 60,818 -
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 657,784 - -
----------- ----------- ---------
$ 6,564,971 $ 1,967,387 $ 296
=========== =========== =========
</TABLE>
NOTE 9 - 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
<PAGE>
<PAGE>
GOLD STANDARD, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
January 31, 1996 and October 31, 1995
(Unaudited)
NOTE 9 - LITIGATION (Continued)
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.
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 January 31,
1996 financial statements.
<PAGE>
<PAGE>
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 has, for the most
part, concluded the Registrant's efforts in this case.
RESULTS OF OPERATIONS
The Registrant holds a 20% 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 has resulted in royalties revenue of $246,355 for the
Registrant during the three-month period ended January 31, 1996.
Management expects continued cash flow from this property.
The Registrant has 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 three-month period ended January 31,
1996 were $82,027 ($55,773 for the three-month period ended
January 31, 1995). Exploration costs incurred during the three
month period ended January 31, 1996 are summarized as follows:
Uruguay $ 19,181
Brazil 62,846
Utah -
---------
Total $ 82,027
=========
Exploration expenses have been significantly higher in 1996
than in 1995 because of the Registrant's increased activity in
its properties in Brazil. Although exploration activities
continue on the Uruguay properties, the Registrant has entered
into joint venture agreements whereby Santa Fe Mining, Inc. is
directing exploration activities and is responsible for funding a
majority of the exploration costs.
<PAGE>
<PAGE>
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 three-month period
ended January 31, 1996 totaled $11,356 ($78,697 for the three
month period ended January 31, 1995).
The Registrant's general and administrative expenses,
excluding legal expenses, totaled $107,489 for the three-month
period ended January 31, 1996 ($78,162 for the three-month period
ended January 31, 1995). The two most significant general and
administrative expense categories during the three-month period
ended January 31, 1996 were (a) professional and consulting fees
($45,151), and (b) wages and salaries ($37,200). The balance of
general and administrative expenses includes office supplies,
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 if 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 nine months of the year.
The Company's liquidity should continue to decrease at the
rate it experienced in 1995. In the short term, the Registrant
has sufficient cash reserves to fund operations. 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.
<PAGE>
<PAGE>
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 January 31, 1996, the Registrant had cash and investments
of $82,632 which was pledged as security against future
reclamation costs on mineral properties under exploration in
Uruguay. The Registrant believes the amounts pledged are more
than adequate to fund the reclamation costs, when incurred.
Furthermore, the Registrant is not aware of any potential
reclamation costs that could exceed the amount of the current
security deposit. Except for the above reclamation costs, the
Company will have no involvement in environmental remediation
activities.
<PAGE>
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
----------------
See Item 3 "Legal Proceedings" of Registrant's 10K
report for the fiscal year ended October 31, 1995, which
has been filed by Registrant with the Commission, for a
description of all current legal actions involving Registrant.
No material developments have occurred with respect thereto,
except that since the filing of such report, Registrant
filed a Petition for Rehearing with the Utah Supreme Court with
respect to the Court's decision in the case originally styled
as Gold Standard, Inc v. Texaco Inc., Getty Oil Company and Getty
Mining Company (Civil Case NO. 86-374), in the Third Judicial
District Court of Utah in and for the county of Tooele, State of
Utah. No decision on the Petition for Rehearing has been
received from the Court as of the date of this report.
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 January 31, 1996.
Item 5. Other Information.
-----------------
Not applicable
Item 6. Exhibits and Reports on Form 8-K.
--------------------------------
Not applicable
<PAGE>
<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.
GOLD STANDARD, INC.,
Registrant
DATED: March 12, 1996 By /s/ Scott L. Smith
------------------------------
Scott L. Smith
President, Treasurer,
Chairman of the Board and
Principal Financial Officer
<PAGE>
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-END> JAN-31-1996
<CASH> 2,520,737
<SECURITIES> 0
<RECEIVABLES> 175,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,699,424
<PP&E> 93,188
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,845,951
<CURRENT-LIABILITIES> 85,114
<BONDS> 0
0
0
<COMMON> 14,848
<OTHER-SE> 2,684,989
<TOTAL-LIABILITY-AND-EQUITY> 2,845,951
<SALES> 0
<TOTAL-REVENUES> 246,355
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 208,261
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 64,082
<INCOME-TAX> 300
<INCOME-CONTINUING> 63,782
<DISCONTINUED> 0
<EXTRAORDINARY> 25,988
<CHANGES> 0
<NET-INCOME> 63,782
<EPS-PRIMARY> .00
<EPS-DILUTED> .00
</TABLE>
