<PAGE>
SECURITIES AND EXCHANGE COMMISSIONS
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 March 31, 1998 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 0-14463
-----------------------------------------------------
Wells Real Estate Fund I
- ----------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Georgia 58-1565512
- ------------------------------ ---------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
3885 Holcomb Bridge Road, Norcross, Georgia 30092
- ----------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (770) 449-7800
-------------------------
- ----------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
---- ----
<PAGE>
Form 10-Q
---------
Wells Real Estate Fund I
------------------------
INDEX
-----
Page No.
--------
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Balance Sheets -
March 31, 1998 and December 31, 1997..........3
Consolidated Statements of Income for
Three Months Ended
March 31, 1998 and 1997......................4
Statements of Partners' Capital
for the Three months Ended March 31, 1998
and the Year Ended December 31, 1997.........5
Consolidated Statements of Cash Flows for
the Three months Ended March 31, 1998
and 1997.....................................6
Condensed Notes to Consolidated
Financial Statements.........................7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations...................................8
PART II. OTHER INFORMATION....................................16
2
<PAGE>
WELLS REAL ESTATE FUND I
(A GEORGIA PUBLIC LIMITED PARTNERSHIP)
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
Assets March 31, 1998 December 31, 1997
-------- --------------- -----------------
<S> <C> <C>
Real Estate, at cost
Land $ 2,894,193 $ 2,894,193
Building and improvements, less
accumulated depreciation of $ 6,609,209
in 1998 and $6,354,204 in 1997 13,052,711 13,279,260
----------- -----------
Total real estate assets 15,946,904 16,173,453
----------- -----------
Investment in joint ventures (Note 2) 6,762,695 6,833,129
Cash and cash equivalents 141,649 128,199
Due from affiliates 118,975 64,469
Deferred lease acquisition costs 50,141 46,378
Accounts receivable 228,799 293,644
Prepaid expenses and other assets 62,511 54,294
----------- -----------
7,364,770 7,420,113
----------- -----------
Total assets $23,311,674 $23,593,566
=========== ===========
Liabilities and Partners' Capital
---------------------------------
Liabilities:
Accounts payable $ 82,162 $ 138,088
Due to affiliates 1,569,908 1,531,215
Refundable security deposits 55,182 55,808
Partnership distribution payable 404 179,270
Minority interest 115,518 117,931
----------- -----------
Total liabilities 1,823,174 2,022,312
----------- -----------
Partners' capital
Limited partners:
Class A - 98,716 Units Outstanding 21,488,500 21,571,254
Class B - 42,568 Units Outstanding 0 0
----------- -----------
Total partners' capital 21,488,500 21,571,254
----------- -----------
Total liabilities and partners' capital $23,311,674 $23,593,566
=========== ===========
</TABLE>
See accompanying condensed notes to consolidated financial statements.
3
<PAGE>
WELLS REAL ESTATE FUND I
(A GEORGIA PUBLIC LIMITED PARTNERSHIP)
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended
-------------------------------------
March 31, 1998 March 31, 1997
--------------- ---------------
<S> <C> <C>
Revenues:
Rental income $387,832 $ 380,844
Interest income 2,321 2,391
Equity in income of joint ventures (Note 2) 44,115 5,726
-------- ---------
434,268 388,961
-------- ---------
Expenses:
Management and leasing fees 34,823 29,465
Lease acquisition costs 4,042 5,934
Operating costs-rental properties, net of
tenant reimbursements 201,461 182,955
Depreciation 255,004 253,678
Legal and accounting expenses 4,879 3,583
Computer expenses 2,010 2,443
Partnership administration 12,578 16,262
Minority interest 2,225 1,689
-------- ---------
517,022 496,009
-------- ---------
Net (loss) $(82,754) $(107,048)
======== =========
Net (loss) income allocated to Class A Limited Partners $(82,754) $ 241,246
Net loss allocated to Class B Limited Partners $ 0 $(348,293)
Net (loss) income per Class A Limited Partner Unit $ (.84) $ 2.44
Net loss per Class B Limited Partner Unit $ 0 $ (8.18)
Cash distribution per Class A Limited Partner Unit $ 0 $ 2.83
</TABLE>
See accompanying condensed notes to consolidated financial statements.
4
<PAGE>
WELLS REAL ESTATE FUND I
(A GEORGIA PUBLIC LIMITED PARTNERSHIP)
STATEMENTS OF PARTNERS' CAPITAL
FOR THE YEAR ENDED DECEMBER 31, 1997 AND THREE MONTHS ENDED
MARCH 31, 1998
<TABLE>
<CAPTION>
LIMITED PARTNERS
-------------------------------------------
CLASS A CLASS B TOTAL
--------------------- -------------------- PARTNERS'
UNITS AMOUNTS UNITS AMOUNTS CAPITAL
------ ------------- ------ ------------ -------------
<S> <C> <C> <C> <C> <C>
BALANCE, DECEMBER 31, 1996 98,716 $21,583,091 42,568 $ 1,364,701 $22,947,792
Net income (loss) 0 1,059,405 0 (1,364,701) (305,296)
Partnership distributions 0 (1,071,242) 0 0 (1,071,242)
------ ----------- ------ ----------- -----------
BALANCE, December 31, 1997 98,716 21,571,254 42,568 0 21,571,254
Net loss 0 (82,754) 0 0 (82,754)
------ ----------- ------ ----------- -----------
BALANCE, March 31, 1998 98,716 $21,488,500 42,568 $ 0 $21,488,500
====== =========== ====== =========== ===========
</TABLE>
See accompanying condensed notes to consolidated financial statements.
5
<PAGE>
WELLS REAL ESTATE FUND I
(A GEORGIA PUBLIC LIMITED PARTNERSHIP)
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended
--------------------------------------------
March 31, 1998 March 31, 1997
-------------- ---------------
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (82,754) $(107,048)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Equity in income of joint ventures (44,115) (5,726)
Minority interest 7,593 4,229
Depreciation 255,004 253,678
Accrued management and leasing fees 31,100 28,979
Changes in assets and liabilities:
Accounts receivable 64,844 67,689
Prepaids and other assets (40) (21,236)
Due from affiliates (44,028) 0
Deferred income (3,347) 0
Accounts payable and refundable security (61,421) (3,214)
deposits
Due to affiliates (6,136) (13,388)
--------- ---------
Total adjustments 199,454 311,011
--------- ---------
Net cash provided by
operating activities 116,700 203,963
--------- ---------
Cash flow from investing activities:
Distributions received from joint ventures 104,072 111,552
Investment in real estate (28,456) (49,855)
--------- ---------
Net cash provided by
investing activities 75,616 61,697
Cash flow from financing activities:
Partnership distributions paid (178,866) (281,526)
--------- ---------
Net increase (decrease) in cash and
cash equivalents 13,450 (15,866)
Cash and cash equivalents, beginning of year 128,199 204,176
--------- ---------
Cash and cash equivalents, end of period $ 141,649 $ 188,310
========= =========
</TABLE>
See accompanying condensed notes to consolidated financial statements.
6
<PAGE>
WELLS REAL ESTATE FUND I
(A Georgia Public Limited Partnership)
Condensed Notes to Consolidated Financial Statements
(1) Summary of Significant Accounting Policies
------------------------------------------
(a) General
------------
Wells Real Estate Fund I (the "Partnership") is a Georgia public limited
partnership having Leo F. Wells, III and Wells Capital, Inc., a Georgia
corporation, as General Partners. The Partnership was formed on April 26,
1984, for the purpose of acquiring, developing, constructing, owning,
operating, improving, leasing and otherwise managing for investment
purposes income-producing commercial properties.
On September 6, 1984, the Partnership commenced a public offering of its
limited partnership units pursuant to a Registration Statement filed on
Form S-11 under the Securities Act of 1933. The Partnership terminated its
offering on September 5, 1986, and received gross proceeds of $35,321,000
representing subscriptions from 4,895 Limited Partners, composed of two
classes of limited partnership interest, Class A and Class B limited
partnership units.
The Partnership owns equity interests in the following joint ventures: (i)
Fund I and Wells & Associates Joint Venture, (ii) Fund I-Fund II Tucker,
and (iii) Fund I, II, II-OW, VI and VII.
As of March 31, 1998, the Partnership owned, directly or through its
ownership in joint ventures, interests in the following properties: (i)
Paces Pavilion/The Howell Mill Road Property, a medical office building
located in Atlanta, Georgia, owned directly by the Partnership, (ii) The
Crowe's Crossing Property, a shopping center located in DeKalb County,
Georgia, owned by the Partnership, (iii) The Black Oak Plaza Property, a
shopping center located in Knoxville, Tennessee, owned by the Partnership,
(iv) The Peachtree Place Property, two commercial office buildings located
in Atlanta, Georgia, owned by Fund I and Wells & Associates Joint Venture,
(v) Heritage Place at Tucker Property, a retail shopping and commercial
office complex located in Tucker, Georgia, owned by Fund I-Fund II Tucker,
and (vi) The Cherokee Commons, a shopping center located in Cherokee
County, Georgia, owned by Fund I, II, II-OW, VI, VII Joint Venture. All of
the foregoing properties were acquired on an all cash basis.
(b) Basis of Presentation
---------------------------
The consolidated financial statements include the accounts of the
Partnership and Wells-Baker. The Partnership's interest in Wells-Baker was
approximately 90% at March 31, 1998 and December 31, 1997. All significant
intercompany balances have been eliminated in consolidation. Minority
interest represents the interest of Wells and
7
<PAGE>
Associates, Inc., an affiliate of the general partners, in Wells-Baker. At
March 31, 1998, Wells and Associates, Inc.'s interest in Wells-Baker was
approximately 10%.
The consolidated financial statements of the Partnership have been prepared
in accordance with instructions to Form 10-Q and do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. These quarterly statements
have not been examined by independent accountants, but in the opinion of
the General Partners, the statements for the unaudited interim periods
presented include all adjustments, which are of a normal and recurring
nature, necessary to present a fair presentation of the results for such
periods. For further information, refer to the consolidated financial
statements and footnotes included in the Partnership's Form 10-K for the
year ended December 31, 1997.
(2) Investment in Joint Venture
---------------------------
The Partnership owned an interest in three properties as of March 31,
1998, through its investments in joint ventures. The Partnership does not
have control over the operations of the joint ventures; however, it does
exercise significant influence. Accordingly, investment in the joint
venture is recorded on the equity method.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
- --------------------------------------------------------------------------------
OF OPERATIONS.
- --------------
The following discussion and analysis should be read in conjunction with the
accompanying financial statements of the Partnership and notes thereto. This
Report contains forward-looking statements, within the meaning of Section 27A of
the Securities Act of 1933 and 21E of the Securities Exchange Act of 1934,
including discussion and analysis of the financial condition of the Partnership,
anticipated capital expenditures required to complete certain projects, amounts
of cash distributions anticipated to be distributed to Limited Partners in the
future and certain other matters. Readers of this Report should be aware that
there are various factors that could cause actual results to differ materially
from any forward-looking statement made in the Report, which include
construction costs which may exceed estimates, construction delays, lease-up
risks, inability to obtain new tenants upon the expiration of existing leases,
and the potential need to fund tenant improvements or other capital expenditures
out of operating cash flow.
Results of Operations and Changes in Financial Conditions
- ---------------------------------------------------------
General
- -------
Revenues of the Partnership were $434,268 for the period ended March 31, 1998,
as compared to $388,961 for the three months ended March 31, 1997. The increase
for 1998 over 1997 was due primarily to increased income from the Heritage Place
at Tucker Property.
8
<PAGE>
Expenses of the Partnership were $517,022 for the period ending March 31, 1998,
as compared to $496,009 for the three months ended March 31, 1997. The increase
in expenses for 1998 over 1997 was due primarily to increased operating costs of
the Partnership's properties.
Net cash provided by operating activities decreased from $203,963 for the three
months ended March 31, 1997, to $116,700 at March 31, 1998, due primarily to the
decrease in accounts payable and increase in due from affiliates, which were
partly offset by the decrease in net loss. Net cash provided by investing
activities increased from $61,697 in 1997 to $75,616 in 1998 due to a decrease
in capital expenditures for 1998. As a result, cash and cash equivalents
decreased from $188,310 in 1997 to $141,649 in 1998.
There were no cash distribution to the Limited Partners holding Class A Units
for the three months ended March 31, 1998, as compared to distributions of $2.83
per Class A Unit for the same period in 1997. No cash distributions were made
to the Limited Partners holding Class B units or to the General Partners for the
three months ended March 31, 1998 and 1997.
The Partnership is reserving all operating cash flow generated during the first
quarter of 1998 which would otherwise be available for distribution to Limited
Partners to fund the proposed reconfiguration of the interior of the Paces
Pavilion Building. The lease with Hospital Corporation of America (HCA) expired
December 31, 1996 and as of March 31, 1998, the building is only 12.6% leased.
The Partnership is in final negotiations with a primary care physicians practice
management company to lease 29,000 square feet of the 32,000 square foot
building for the next ten years and hopes to enter into a lease for this space
in the near future. It is anticipated that the cost to refit the interior of
the building will be approximately $1.2 million. Therefore, to meet these
requirements, the Partnership expects to reserve all distributions for 1998 and
1999 and apply such amounts to fund the reconfiguration of the interior of this
property.
The General Partners have verified that all operational computer systems are
year 2000 compliant. This includes systems supporting accounting, property
management and investor services. Also, as part of this review, all building
control systems have been verified as compliant. The current line of business
applications are based on compliant operating systems and database servers. All
of these products are scheduled for additional upgrades before the year 2000.
Therefore, it is not anticipated that the year 2000 will have significant impact
on operations.
RECENT ACCOUNTING PRONOUNCEMENTS
- --------------------------------
Statement of Financial Accounting Standards (SFAS) No. 130, "Reporting
Comprehensive Income", requires certain transactions (e.g., unrealized
gains/losses on available for sale securities) that are not reflected in net
income to be displayed as other comprehensive income. The Statement also
requires an entity to report total comprehensive income (i.e., net income plus
other comprehensive income) for every period in which an income statement is
presented. SFAS No. 130 is effective for annual and interim periods beginning
after December 15, 1997. None of the transactions required to be reported in
other comprehensive income pertain to the
9
<PAGE>
Partnership; consequently, adoption of this Statement had no impact on the
partnership's disclosures.
PROPERTY OPERATIONS
- -------------------
As of March 31, 1998, the Partnership owned interests in the following
properties:
Paces Pavilion/Howell Mill Road Property - Fund I
- ---------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
--------------------------------
March 31, 1998 March 31, 1997
--------------- ---------------
<S> <C> <C>
Revenues:
Rental income $ 29,784 $ 28,974
Expenses:
Depreciation 62,934 67,562
Management and leasing expenses 1,781 2,190
Other operating expenses 50,984 24,857
-------- --------
115,699 94,609
-------- --------
Net loss $(85,915) $(65,635)
======== ========
Occupied % 12.6% 26.8%
Partnership's Ownership % 100% 100%
Cash generated to the Partnership $ 0 $ 4,991
Net loss allocated to the Partnership $(85,915) $(65,635)
</TABLE>
Rental rates remained relatively stable for the three months ended March 31,
1998, as compared to the three months ended March 31, 1997. Occupancy decreased
to 12.6% in 1998, due to a tenant that moved out at the end of March 1998.
Operating expenses increased significantly, due to property taxes, insurance,
and common area maintenance expenses previously paid for by a major tenant that
is no longer leasing space. We are actively pursuing a renewal lease for 29,000
square feet of space.
Currently, there are four tenants occupying the premises. Management is
currently in final negotiations with a primary care physician practice
management company for 29,000 square feet of the 32,000 square foot building and
hopes to enter into a lease for this space in the near future.
10
<PAGE>
Crowe's Crossing Property- Fund I
- ---------------------------------
<TABLE>
<CAPTION>
Three Months Ended
--------------------------------
March 31, 1998 March 31, 1997
--------------- ---------------
Revenues:
<S> <C> <C>
Rental income $174,886 $171,637
Expenses:
Depreciation 104,348 103,613
Management and leasing expenses 17,969 15,611
Other operating expenses 35,767 126,179
-------- --------
158,084 245,403
-------- --------
Net income (loss) $ 16,802 $(73,766)
======== ========
Occupied % 87% 89%
Partnership's Ownership % 100% 100%
Cash generated to the Partnership $127,455 $ 52,226
Net income (loss) allocated to the Partnership $ 16,802 $(73,766)
</TABLE>
Rental income for the three month period ended March 31, 1998 and March 31,
1997, remained relatively stable, due to stable occupancy rates. Other
operating expenses decreased significantly, due primarily to a write-off of bad
debt of approximately $32,000 in 1997 and a recovery of bad debt of
approximately $13,000 in 1998. The operating expense decrease was due also to
water billings to tenants and decreases in security expenses and repair and
maintenance expenses. Cash generated to the Partnership and net income
increased due to the decline in operating expenses.
11
<PAGE>
Black Oak Plaza Property - Fund I
- ---------------------------------
<TABLE>
<CAPTION>
Three Months Ended
--------------------------------
March 31, 1998 March 31, 1997
--------------- ---------------
Revenues:
<S> <C> <C>
Rental income $115,113 $111,215
Interest income 0 12
-------- --------
115,113 111,227
Expenses:
Depreciation 66,435 62,613
Management and leasing expenses 13,616 10,015
Other operating expenses 95,578 6,236
-------- --------
175,629 78,864
-------- --------
Net (loss) income $(60,516) $ 32,363
======== ========
Occupied % 74% 72%
Partnership's Ownership % 100% 100%
Cash generated to the Partnership $ 1,244 $ 97,049
Net (loss) income allocated to the Partnership $(60,516) $ 32,363
</TABLE>
Rental income increased to $115,113 for 1998, as compared to $111,215 in 1997,
due primarily to increased occupancy. Depreciation increased for 1998, as
compared to 1997, due to the expensing of tenant improvements which were
capitalized in December 1997 and are being depreciated over the lease term. The
increase in management and leasing expenses in first quarter 1998, compared to
the same quarter of 1997, is due to the payment of lease acquisition fees for
new tenants in February 1998. Other operating expenses increased in 1998, as
compared to 1997, due primarily to timing differences in billing of CAM
reimbursements and increases in parking lot repairs and legal fees. Cash
generated to the Partnership decreased in 1998, as compared to 1997, due
primarily to increased capital expenditures of approximately $15,700 and the
increase in expenses noted above.
12
<PAGE>
Peachtree Place Property - Fund I and Wells & Associates Joint Venture
- ----------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
--------------------------------
March 31, 1998 March 31, 1997
--------------- ---------------
<S> <C> <C>
Revenues:
Rental income $68,049 $69,017
Interest income 8 7
------- -------
68,057 69,024
Expenses:
Depreciation 21,287 19,890
Management and leasing expenses 5,499 5,654
Other operating expenses 19,130 26,671
------- -------
45,916 52,215
------- -------
Net income $22,141 $16,809
======= =======
Occupied % 95% 100%
Partnership's Ownership % 89.95% 89.95%
Cash generated to Partnership $41,515 $37,851
Net income allocated to Partnership $19,915 $15,120
</TABLE>
Rental income decreased for the quarter ending March 31, 1998, as compared to
the same period for 1997, due to decreased occupancy. Operating expenses
decreased from $26,671 in 1997 to $19,130 in 1998, due to lower repairs and
maintenance expenses. Cash distributions increased in 1998, as compared to
1997, due to decreased operating expenses.
13
<PAGE>
Heritage Place at Tucker Property/Fund I - Fund II Joint Venture
- ----------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
------------------
March 31, 1998 March 31, 1997
-------------- --------------
<S> <C> <C>
Revenues:
Rental income $300,361 $261,866
Interest income 137 129
-------- --------
300,498 261,995
-------- --------
Expenses:
Depreciation 107,288 97,668
Management & leasing expenses 42,588 33,279
Other operating expenses 109,595 144,319
-------- --------
259,471 275,266
-------- --------
Net income (loss) $ 41,027 $(13,271)
======== ========
Occupied % 83% 76%
Partnership's Ownership % 55.1% 55.1%
Cash distributions to the Partnership $ 65,440 $ 44,017
Net income (loss) allocated to the Partnership
$ 22,602 $ (7,311)
</TABLE>
Rental income increased in 1998 from 1997, due primarily to the increase in
occupancy from 76% to 83%. Management and leasing expenses increased over prior
year, due to increased occupancy and revenues. Other operating expenses
decreased, due to a significant decrease in landscaping expenses and plumbing
and roofing repairs.
14
<PAGE>
Cherokee Commons/Fund I, II, II-OW, VI & VII Joint Venture
- ----------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
------------------
March 31, 1998 March 31, 1997
-------------- --------------
<S> <C> <C>
Revenues:
Rental income $228,977 $217,439
Interest income 22 18
-------- --------
228,999 217,457
-------- --------
Expenses:
Depreciation 110,563 107,525
Management & leasing expenses 25,751 31,541
Other operating expenses 3,131 24,119
-------- --------
139,445 163,185
-------- --------
Net income $ 89,554 $ 54,272
======== ========
Occupied % 91% 91%
Partnership's Ownership % 24.0% 24.0%
Cash distributed to the Partnership $ 49,111 $ 44,931
Net income allocated to the Partnership $ 21,513 $ 13,037
</TABLE>
Rental income increased in 1998 over 1997, due primarily to the one time
adjustment made to the straight line rent schedule. Management and leasing
expenses decreased in 1998, as compared to 1997, due to decreased leasing
commissions. The decrease in operating expenses in 1998, as compared to 1997,
are due to decreased expenditures for tenant improvements, common area expenses,
and legal fees.
15
<PAGE>
PART II - OTHER INFORMATION
----------------------------
Item 6(b). No reports on Form 8-K were filed during the first quarter of 1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
WELLS REAL ESTATE FUND I
(Registrant)
Dated: May 11, 1998 By: /s/Leo F. Wells, III
--------------------
Leo F. Wells, III, as Individual
General Partner and as President
and Chief Financial
Officer of Wells Capital, Inc.
16
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 141,649
<SECURITIES> 6,762,695
<RECEIVABLES> 347,774
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 62,511
<PP&E> 22,556,113
<DEPRECIATION> 6,609,209
<TOTAL-ASSETS> 23,311,674
<CURRENT-LIABILITIES> 1,823,174
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 21,488,500
<TOTAL-LIABILITY-AND-EQUITY> 23,311,674
<SALES> 0
<TOTAL-REVENUES> 434,268
<CGS> 0
<TOTAL-COSTS> 517,022
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (82,754)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (82,754)
<EPS-PRIMARY> (.84)
<EPS-DILUTED> 0
</TABLE>
