<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT
OF 1934
FOR QUARTER ENDED SEPTEMBER 30, 1996
COMMISSION FILE NO. 001-10156
ORIGINAL SIXTEEN TO ONE MINE, INC.
(EXACT NAME OF REGISTRANT
AS SPECIFIED IN ITS CHARTER)
CALIFORNIA 94-0735390
(STATE OR OTHER JURISDICTION OF (IRS EMPLOYER
INCORPORATED OR ORGANIZATION) IDENTIFICATION NO.)
POST OFFICE BOX 1621, ALLEGHANY, CA 95910
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(916)287-3223
(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 PAST 12 MONTH (OR FOR SUCH SHORTER PERIOD THAT THE REGISTRANT
WAS REQUIRED TO FILE SUCH REPORTS), AND (2) HAS BEEN SUBJECT TO SUCH FILING
REQUIREMENT FOR THE PAST 90 DAYS.
YES X NO
---- ----
AS OF SEPTEMBER 30, 1996, 3,504,065 SHARES OF COMMON STOCK, PAR $.10 PER SHARE,
WERE ISSUED AND OUTSTANDING.
<PAGE>
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS:
Currently miners are advancing six headings underground. All of these areas
were selected for gold production instead of long term development or
rehabilitation. Most of the gold production for the quarter came in July from
the 1900 foot level raises and the underhand stope on the 2200 foot level.
The 1900 foot level raises are two separate wing raises that were started during
the second quarter. One is driven in a southerly direction. One is driven in a
northerly direction and are respectively identified as the 1919 South Wing raise
and the 1919 North Wing raise. Prior mining above this block of ground has been
very successful. In 1993, the company recorded one million dollars of gold
mined in one day from the 1333 stope. In July of 1995, the company recorded two
million dollars of gold mined over five days from the 1733 stope. Both of these
areas are directly up dip (over) the wing raises. No large pockets were found
during the quarter; however, the area produced about 300 ounces of gold and
about 1000 tons of mill grade ore, which is stock piled on the surface. Some
ground remains to be mined in this area.
The 2233K underhand stope is in the most southerly part of the mine workings on
the K vein. The K vein is dipping towards the Sixteen to One vein and the
projected intersection is about 200 feet below the 2200 foot level. Mining in
this area began in June after the old stope was cleared of broken rock and
debris. The stope was sunk about 20 feet. Gold was immediately found and gold
recovery continued with each round. The area yielded about 600 ounces of high
grade gold and 350 tons of mill rock. Miners have strong metal detection
signals in the quartz. The vein was getting stronger as the miners progressed.
A decision was made to approach the target from below instead of continuing
with the sinking. Drifting under the area postpones recovering the gold,
however it opens up a much larger area to examine.
COMPARISON OF NINE MONTHS ENDED SEPTEMBER 30, 1996 TO NINE MONTHS ENDED
SEPTEMBER 30, 1995.
For nine months ended September 30, 1996, revenues decreased by $1,320,874 from
the comparable nine months ended September 30, 1995. Production for the first
nine months of 1996 was $1,210,032. The reader is reminded that Original
Sixteen to One operates a high grade underground gold mine. While the vein
system is proven and has produced over 1 million ounces of gold, it is
unthinkable to state our reserves as "proven" according to standards recognized
in the open pit gold mining industry or in low grade underground mines;
however, it is a proven gold deposit. During the past four years a significant
percentage of annual production has been mined during a short period of time.
For example, in 1993, over $1 million was mined in a single day. During 1995
over $2 million was mined in ten days. During 1996, the mine has not yielded
one of these bonanzas.
Total current assets decreased by $935,024 as accumulated gold inventory was
sold since December 31, 1995. Current liabilities decreased by $120,751 when
compared to the 1995 year end. Lines of credit were used as cash flow tools to
minimize the amount of gold to be crushed in order to provide the bank credits
necessary to meet monthly overhead. The reason for implementing these tools was
to conserve the valuable quartz and gold inventory used to supply the growing
jewelry and specimen sales division established by the Company in 1994.
Expenses increased by $340,574. The largest increase was wages and related
$165,590. Two factors have contributed to this increase: existing miners wages
have increased and additional employees have been added to the payroll.
Supplies increased by $136,801.
LIQUIDITY AND CAPITAL RESOURCES AS OF SEPTEMBER 30, 1996
Gold production and accumulated inventory were the sources of cash during the
quarter. In order to finance the Company, inventory is sold. Gold is mined,
poured into bars and sold. Special pieces of quartz and gold are retained for
the jewelry department. Sales from the gold department through the third
quarter are $305,803 including $21,529 in accounts receivable. Fifty-four
percent ($165,854) was in sales of quartz and gold slabs. The gold content
contained within the slabs was 114 ounces or $43,890 at $385.00 per ounce.
<PAGE>
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES AS OF SEPTEMBER 30, 1996 (CONTINUATION)
Considerations for determining mining priorities include: potential ounces of
gold for each target, set-up costs, on-going cost, time, impact on the mine's
infrastructure (hoisting capacity, haulage, water) and the likelihood of little
or no gold production.
The Company throughout its 85 year history has never experienced steady or
regular gold production when measured on a monthly, quarterly, semi-annually or
annual basis. This situation is due to the high-grade nature of the gold
deposit in Alleghany, California.
EVENTS THAT MAY HAVE A MATERIAL EFFECT ON FUTURE OPERATIONS, LIQUIDITY AND
CAPITAL RESOURCES
TECHNOLOGY
The Company continues to test various technologies for underground gold
location. Should one of the technologies prove to more effectively detect
high-grade pockets beyond the Company's current capabilities, the Company's
ability to produce gold at a low cost would be enhanced.
PRICE OF GOLD
Of material effect on the Company's financial operations is the price of gold.
The Company's primary income is based upon current and future prices of gold. A
decrease in the spot price of gold per ounce will decrease income. Conversely,
an increase in the spot price per ounce increases the Company's income. The
September 30, 1996, spot price for gold was $378.20 per troy ounce. The Company
makes no projections on either the future price of gold, deflation or inflation.
While any decrease of the spot price of gold is definitely a negative factor,
deflation and inflation can arguably be positive occurrences for the Company.
WORKING CAPITAL
The Company may seek to supplement its internally generated funds with funds
raised externally through a proposed registered public offering of its common
stock.
TIMBER
In 1994, the Company filed a Timber Harvest Plan and harvested trees in Sierra
County. Receipts in 1994, were $145,000. Logging operations were suspended due
to early snow storms. The remaining acreage under the timber harvest plan was
logged in 1995. Revenue from timber sales in 1995 was $108,304.
LACK OF PROVEN OR PROBABLE RESERVES OF COMMERCIAL ORE
The Company is engaged in the production of gold, and continues to explore and
develop ore zones in the mine. While over 24,000 ounces of fine gold have been
recovered since January 1992, there are no assurances that the Company will
continue to find gold, or that if gold is found that it can be mined at a
profit. The Company has no proven (measured) reserves or probable (indicated)
reserves of gold at the mine as those terms are defined under Federal securities
regulations. However, the vein system owned and operated by the Company has
yielded over 1 million ounces of gold, thereby establishing it as a proven gold
deposit.
GOVERNMENTAL REGULATION
All mining operations are subject to substantial governmental regulation,
including Federal, State and local regulations concerning mine safety and
environmental protection. Compliance with these regulations may cause
significant delays in the operations of the Company and substantial capital
expense. The Company believes it is currently operating in compliance with all
known safety and environmental standards and regulations. However, amendments
or additions to or future interpretations of current regulations could have an
adverse effect on the Company's mining operations.
<PAGE>
EVENTS THAT MAY HAVE A MATERIAL EFFECT ON FUTURE OPERATIONS, LIQUIDITY AND
CAPITAL RESOURCES (CONTINUATION)
DIVIDENDS
On August 7, 1995, the board of directors declared a special dividend of $.05
per share to shareholders of record August 7, 1995, payable on September 10.
The common stock was ex-dividend on August 11, 1995, on the Pacific Stock
Exchange. The Company released this news on August 9, 1995. This was the first
dividend in 41 years. While the Company has a long history of issuing
dividends, the board of directors will evaluate its cash demands, accumulated
inventory and its mining activities to determine if and when the next special
dividend will be issued.
LIQUIDITY
The Company has, in the past, experienced a lack of liquidity and working
capital. Although the Company holds gold inventory of $1,382,058 and has
little long term debt as of September 30, 1996, there can be no assurance that
current gold production or gold inventory can be maintained or that the costs of
mine exploration and development will not exceed revenues and deplete current
assets of the Company. Management believes that the liquidity needs of the
Company in the near term will be met from the sale of existing inventory and the
production of gold.
PROPOSED CHANGES TO MINING LAWS
Congress is currently reviewing the 1872 Mining Law which controls unpatented
mining claims. One proposal would replace the current annual assessment work
requirement ($100 per claim) with an undetermined royalty payment. Although the
Company's current production comes from patented (rather than unpatented)
claims, any future production from the Company's unpatented mining claims may be
subject to an additional royalty payment or other costs, if revisions to the
1872 Mining Law are implemented.
SUBSEQUENT EVENTS
During October, 1996, the 2600 level was extended four hundred (400) feet south
of the 2483 winze. Utilities were permanently installed as well as track. On
November 6, 1996, miners began raising towards the 2400 foot level on the
Sixteen to One vein (approximately 160 feet).
The mill was operated during October. A new recovery system was installed as a
trial. The Company sampled all areas of the mill flow sheet and determined that
the new equipment significantly improved gold recovery. Five bars were poured
totaling 194 ounces of gold. Nine hundred and eighty five tons were processed
with an average grade of .20 ounce per ton. Milling was suspended and will not
resume until the new equipment is installed on a permanent basis.
<PAGE>
PART I: FINANCIAL INFORMATION
Original Sixteen to One Mine, Inc.
Condensed Balance Sheet
ASSETS
<TABLE>
<CAPTION>
September 30, 1996 December 31, 1995
------------------ -----------------
<S> <C> <C>
CURRENT ASSETS:
Cash $ 62,668 $ 180,618
Accounts Receivable 25,000 13,370
Inventory 1,382,058 2,228,192
Other Current Assets 26,982 9,552
------------------ -----------------
Total Current Assets 1,496,708 2,431,732
------------------ -----------------
MINING PROPERTY:
Real Estate & Property Rights
(at March 1, 1913, cost plus subsequent
additions, net of depletion of $524,145) 183,691 105,517
Mineral Property 415,263 415,263
Development 896,981 714,037
------------------ -----------------
Total Mining Property 1,495,935 1,234,817
------------------ -----------------
FIXED ASSETS:
Building & Mill 144,462 143,250
Vehicles 176,086 118,011
Equipment 759,145 693,703
------------------ -----------------
1,079,693 954,964
Accumulated Depreciation (633,917) (568,689)
------------------ -----------------
Net Fixed Assets 445,776 386,275
------------------ -----------------
Other Assets (Net of Amortization) 29,930 34,244
------------------ -----------------
Total Assets $ 3,468,349 $ 4,087,068
------------------ -----------------
------------------ -----------------
</TABLE>
See Accompanying Notes
2
<PAGE>
PART I: FINANCIAL INFORMATION
Original Sixteen to One Mine, Inc.
Condensed Balance Sheet
LIABILITIES & STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
September 30, 1996 December 31, 1995
------------------ -----------------
<S> <C> <C>
CURRENT LIABILITIES:
Accounts Payable $ 17,680 $ 56,038
Income Taxes Payable 0 84,000
Deferred Income Taxes 633,000 632,000
Accrued Expenses 537 0
Line of Credit 260,873 260,921
Current Maturities of Long-Term Debt 3,649 3,531
------------------ -----------------
Total Current Liabilities 915,739 1,036,490
------------------ -----------------
LONG-TERM LIABILITIES:
Note Payable - GMAC 16,308 19,354
Less Current Maturities (3,649) (3,531)
------------------ -----------------
Total Long-Term Liabilites 12,659 15,823
------------------ -----------------
STOCKHOLDERS' EQUITY:
Capital Stock, par value
$.10 - 10,000,000 shares authorized;
3,504,065 and 3,513,062 shares
issued & outstanding as of
September 30, 1996 and December 31,
1995, respectively 350,406 351,306
Paid-In-Capital 1,321,204 1,369,318
Notes Receivable-Employees (26,000) (52,000)
Retained Earnings 894,341 1,366,131
------------------ -----------------
Total Stockholders' Equity 2,539,951 3,034,755
------------------ -----------------
Total Liabilities and
Stockholders' Equity $ 3,468,349 $ 4,087,068
------------------ -----------------
------------------ -----------------
</TABLE>
See Accompanying Notes
3
<PAGE>
PART I: FINANCIAL INFORMATION
Original Sixteen to One Mine, Inc.
Statement of Income and Retained Earnings
<TABLE>
<CAPTION>
Three Months Ended September 30, Nine Months Ended September 30,
1996 1995 1996 1995
----------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
REVENUES:
Gold & Silver Production $ 458,109 $ 2,058,552 $ 1,210,032 $ 2,530,906
EXPENSES:
Administration 4,543 0 14,774 0
Directors' Fees 1,052 0 5,848 0
Salaries, Officers 31,851 36,976 118,673 105,647
Wages & Related 299,354 343,315 797,345 631,755
Contract Labor 23,097 29,341 54,942 60,994
Insurance 8,925 19,312 41,941 79,961
Professional Fees 26,820 8,141 92,908 45,326
Supplies 77,777 13,429 262,902 126,101
Taxes 13,216 23,384 28,291 81,826
Utilites 26,932 27,829 87,740 88,151
Drayage 10,962 9,606 40,861 29,648
Office 10,102 8,873 44,860 14,580
Shareholders' Expense 457 0 3,203 0
Advertising & Marketing 6,910 5,593 44,042 17,554
Depreciation & Amortization 11,112 28,585 69,542 85,755
----------- ---------- ---------- --------------
Total Expenses 553,110 554,384 1,707,872 1,367,298
----------- ---------- ---------- --------------
Income(Loss) from Operations (95,001) 1,504,168 (497,840) 1,163,608
----------- ---------- ---------- --------------
Other Income & (Expense):
Other Income 30,036 91,397 45,396 166,144
Other Expenses (9,381) (55,482) (18,346) (89,736)
----------- ---------- ---------- --------------
Total Other Income 20,655 35,915 27,050 76,408
----------- ---------- ---------- --------------
Income (Loss) Before Taxes (74,346) 1,540,083 (470,790) 1,240,016
Provision for Income Tax and
income tax benefit 0 (353,800) (1,000) (353,800)
----------- ---------- ---------- --------------
Income (loss) before Extraordinary
Item (74,346) 1,186,283 (471,790) 886,216
Extraordinary item-Tax benefit arising
from utilization of net operating
loss carryforwards 0 (135,597) 0 0
----------- ---------- ---------- --------------
Net Income (Loss) $ (74,346) $ 1,050,686 (471,790) $ 886,216
----------- ---------- ---------- --------------
----------- ---------- ---------- --------------
Retained Earnings (December 31, 1995) 1,366,131
----------
Retained Earnings (September 30, 1996) $ 894,341
----------
----------
Income(Loss) Per Share $ (0.02) $ 0.30 $ (0.13) $ 0.25
----------- ---------- ---------- --------------
----------- ---------- ---------- --------------
</TABLE>
See Accompanying Notes
4
<PAGE>
PART I: FINANCIAL INFORMATION
Original Sixteen to One Mine, Inc.
Statement of Cash Flows
<TABLE>
<CAPTION>
Nine Months Ended Nine Months Ended
September 30, 1996 September 30, 1995
<S> <C> <C>
Cash Flows From Operating Activities:
Cash Received From Customers $ 2,208,036 $ 1,696,787
Cash Received From Other Sources 37,790 166,144
Cash Paid to Suppliers & Employees (1,858,619) (1,223,086)
Interest Received 7,605 6,720
Interest Paid (16,807) (24,464)
Taxes Paid in Cash (84,000) (28,200)
--------------- ---------------
Cash Provided By Operations 294,005 593,901
--------------- ---------------
Cash Flows From Investing Activities:
Purchase of Equipment (124,729) (162,389)
Purchase of Land (78,174) 0
Payment Made For Development (182,944) (299,554)
--------------- ---------------
Cash Used In Investing Activities (385,547) (461,943)
--------------- ---------------
Cash Flows From Financing Activities:
Proceeds From Borrowing 0 264,858
Payments Made On Notes Payable (3,094) (50,000)
Payments Received on Notes Receivable Employees 26,000 0
Repurchase and Retirement of Common Stock (49,014) (38,111)
Dividends Paid 0 (175,400)
--------------- ---------------
Cash Provided (Used) in Financing Activities (26,108) 1,347
--------------- ---------------
Net Increase (Decrease) in Cash (117,950) 133,305
Cash, Beginning 180,618 148,713
--------------- ---------------
Cash, Ending $ 62,668 $ 280,018
--------------- ---------------
--------------- ---------------
Reconciliation of Net Income to Cash Provided by Operating Activities:
Net Income (Loss) (471,790) 886,216
Changes In Operating Assets & Liabilities:
(Increase) Decrease in Accounts Receivable (11,630) 7,047
(Increase) Decrease in Inventory 846,134 (834,119)
(Increase) Decrease in Other Current Assets (17,430) 4,471
Increase (Decrease) in Accounts Payable (38,358) 73,720
Increase in Accrued Expenses 537 46,012
Decrease in Income Tax Payable (83,000) (28,200)
Increase in Deferred Income Taxes 0 353,000
Depreciation 65,228 81,441
Amortization 4,314 4,313
--------------- ---------------
Cash Provided By Operations $ 294,005 $ 593,9001
--------------- ---------------
--------------- ---------------
</TABLE>
See Accompanying Notes
5
<PAGE>
PART I - FINANCIAL INFORMATION
NOTES TO FINANCIAL STATEMENTS
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NATURE OF BUSINESS
Original Sixteen to One Mine, Inc. was incorporated October 9, 1911 as a
California corporation. It owns and operates mining claims in both Sierra and
Trinity Counties located in Northern California.
REVENUE
Revenue consists of gold and silver mined during the reporting period, either
sold during the period or held in inventory. It is recorded at the spot price
per ounce on the date of sale. Revenue does not include unprocessed
high-grade ore mined during the reporting period. Gold and silver held in
inventory is recorded at the spot price per ounce on the balance sheet date.
INVENTORY
Inventory consists of gold bullion, dore, specimens and jewelry. Inventory is
recorded at the spot price per ounce on the balance sheet date.
FIXED ASSETS
Fixed assets are stated at historical cost. Depreciation is being calculated
using straight-line and accelerated methods over the following estimated
useful lives:
Vehicles 3 to 5 years
Equipment 5 to 7 years
Buildings 18 to 31.5 years
DEPLETION POLICY
The Company has established a depletion policy for its mineral and mining
properties. Because of the geological formation in the Alleghany Mining
District, estimates of ore reserves cannot be calculated; therefore a cost
per unit depletion factor cannot be determined. Management has determined
that a straight-line method of depletion over a 25 year period would most
accurately match the estimated production of the mining properties (See Note
2). If estimates of ore reserves become available, the units of production
method of depletion will be used.
6
<PAGE>
PART I - FINANCIAL INFORMATION (CONTINUED)
DEVELOPMENT
In February 1994, the Company began development of the 2483 winze into
unexplored ground. Costs associated with the development are being
capitalized.
INCOME TAXES
Differences exist between the amount of income or loss reported for financial
statements and income tax reporting purposes. These differences are
attributable to the use of the cash basis reporting of ore revenues and
accelerated depreciation and depletion methods for income tax purposes. No
provision for income tax expense or deferred taxes has been made in the
current year because of the uncertainty of revenues for the remainder of the
year. Income taxes for the nine months ended September 30, 1995, includes a
benefit for net operating losses applied in that period.
NET INCOME OR LOSS PER SHARE
Net income or loss per share has been computed using the common shares
outstanding at end of reporting period. The Company's stock equivalent have
been excluded from the calculation of shares outstanding.
NOTE 2: MINING PROPERTY
The original mining property is carried on the books at its March 1, 1913
value of $379,00 as determined for depletion purposes in connection with
Federal income taxes. This value together with the cost of mining properties
acquired in 1920 and 1924 for the aggregated sum of $145,145 has been fully
amortized through depletion charges. During 1994, the Company purchased
mining properties at a cost of $300,000, and capitalized $86,633 in legal
costs.
NOTE 3: INCOME TAXES
For Federal income tax purposes, the Company has operating loss carryforwards
which may provide future tax benefits, expiring as follows:
YEAR OF EXPIRATION
------------------
2006 $345,753
2007 48,562
--------
$394,315
--------
--------
For California state income taxes, the Company has no operating loss
carryforwards.
7
<PAGE>
PART I - FINANCIAL INFORMATION (CONTINUED)
NOTE 4: NOTES PAYABLE
The Company has a note payable to the bank amounting to $16,308 bearing
interest at 9.95% and secured by a Chevrolet Astro Van. The note is payable
in 60 monthly installments of $442 including interest.
At September 30, 1996, the Company has revolving lines of credit. The credit
lines expire June 30, 1997. The borrowing under these lines of credit at
September 30, 1996, are $67,847 and $193,026.
8
<PAGE>
PART II -- OTHER INFORMATION
ITEM 1 -- CHANGES IN SECURITIES
ITEM 2 -- DEFAULTS UPON SENIOR SECURITIES
ITEM 3 -- SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
ITEM 4 -- OTHER INFORMATION
ITEM 5 -- EXHIBITS & REPORTS ON FORM 8-K<PAGE>
<PAGE>
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.
ORIGINAL SIXTEEN TO ONE MINE, INC.
----------------------------------
(Registrant)
Date:________________________ ___________________________________
November 8, 1996 Michael M. Miller, President
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED BALANCE SHEET OF ORIGINAL SIXTEEN TO ONE MINE, INC. AS OF SEPTEMBER
30, 1996 AND THE RELATED STATEMENTS OF INCOME AND RETAINED EARNINGS AND CASH
FLOWS FOR THE NINE MONTHS THEN ENDED AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 62,668
<SECURITIES> 0
<RECEIVABLES> 25,000
<ALLOWANCES> 0
<INVENTORY> 1,382,038
<CURRENT-ASSETS> 26,982
<PP&E> 2,575,628
<DEPRECIATION> 633,917
<TOTAL-ASSETS> 3,468,349
<CURRENT-LIABILITIES> 915,739
<BONDS> 12,659
0
0
<COMMON> 350,187
<OTHER-SE> 2,189,764
<TOTAL-LIABILITY-AND-EQUITY> 3,468,349
<SALES> 1,210,032
<TOTAL-REVENUES> 1,255,428
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,709,411
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 16,807
<INCOME-PRETAX> (470,790)
<INCOME-TAX> 1,000
<INCOME-CONTINUING> (471,790)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (471,790)
<EPS-PRIMARY> (.13)
<EPS-DILUTED> 0
</TABLE>
