<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
----------------------------------
Washington, D.C. 20549
Form 10Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended: September 30, 1997 Commission File No. 1-6963
ORIOLE HOMES CORP.
----------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Florida 59-1228702
- ------------------------------- -----------------------------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1690 S. Congress Ave., Suite 200 Delray Beach, Fl. 33445
- -------------------------------------------------- ----------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (561) 274-2000
- --------------------------------------------------------------------------------
Former 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, and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
Indicate the number of shares outstanding of each of the issuers classes of
common stock, as of the close of the period covered by this report.
Class Outstanding at September 30, 1997
- ------------------------------------- ---------------------------------------
Common Stock, Class A, par value $.10 1,874,949
Common Stock, Class B, par value $.10 2,750,575
<PAGE> 2
ORIOLE HOMES CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
ASSETS
September 30, December 31,
1997 1996
(Unaudited) (Audited)
------------- ------------
Cash and cash equivalents $ 3,877,579 $ 2,409,376
------------- ------------
Receivables:
Mortgage notes 267,915 277,205
Income taxes -- 2,398,914
------------- ------------
267,915 2,676,119
Inventories:
Land 69,488,036 90,105,428
Houses and condominiums completed or
under construction 50,575,088 51,080,872
Model houses and condominiums 4,751,870 4,776,274
------------- ------------
124,814,994 145,962,574
Less: Estimated costs of completion
included in inventories 10,852,007 14,184,967
------------- ------------
113,962,987 131,777,607
------------- ------------
Property and equipment (at cost):
Land 2,462,227 7,046,758
Buildings 19,896,194 20,728,053
Furniture, fixtures and equipment 4,830,453 4,724,882
------------- ------------
27,188,874 32,499,693
Less: Accumulated depreciation 10,261,437 9,648,463
------------- ------------
16,927,437 22,851,230
------------- ------------
Other:
Prepaid expenses 2,800,524 2,709,076
Unamortized debt issuance costs 1,562,848 1,810,237
Investment in and advances to joint ventures 4,603,000 6,531,000
Land held for investment (at cost) 2,354,398 2,346,772
Other assets 3,145,013 2,434,473
------------- ------------
14,465,783 15,831,558
------------- ------------
Total Assets 149,501,701 175,545,890
============= ============
See notes to consolidated financial statements
-1-
<PAGE> 3
ORIOLE HOMES CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
LIABILITIES AND SHAREHOLDERS' EQUITY
September 30, December 31,
1997 1996
(Unaudited) (Audited)
------------- ------------
Liabilities:
Line of credit 1,600,000 2,700,000
Mortgage notes payable 12,490,574 12,641,501
Accounts payable 7,447,985 10,742,182
Customer deposits 10,869,244 7,583,571
Accrued expenses and other liabilities 5,672,443 6,588,489
Deferred income taxes 1,021,551 1,387,473
12 1/2% Senior Notes due January 15, 2003,
net of $1,179,133 discount in 1997 and
$1,308,064 discount in 1996 66,284,867 66,155,936
------------- ------------
Total Liabilities 105,386,664 107,799,152
Shareholders' Equity:
Class A common stock, $.10 par value
Authorized - 10,000,000 shares
Issued and outstanding -
1,874,949 in 1997 and in 1996 187,495 187,495
Class B common stock, $.10 par value
Authorized - 10,000,000 shares
Issued and outstanding -
2,750,575 in 1997 and in 1996 275,058 275,058
Additional paid-in capital 19,267,327 19,267,327
Retained earnings 24,385,157 48,016,858
------------- ------------
Total Shareholders' Equity 44,115,037 67,746,738
------------- ------------
Total Liabilities and Shareholders' Equity 149,501,701 175,545,890
============= ============
See notes to consolidated financial statements
-2-
<PAGE> 4
ORIOLE HOMES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
---------------------------- ----------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenues:
Sale of houses and condominiums $ 68,113,343 $ 62,107,681 $ 22,889,269 $ 21,702,274
Sale of land 50,500 1,634,356 45,000 12,000
Other operating revenues 2,250,822 2,398,508 778,783 806,459
Interest, rentals and other income 2,707,303 2,884,309 700,156 994,255
Gain on sale of property and
land held for investment, net 520,884 2,329,426 19,351 1,662,302
------------ ------------ ------------ ------------
73,642,852 71,354,280 24,432,559 25,177,290
------------ ------------ ------------ ------------
Costs and Expenses:
Cost of houses and condominiums sold 60,439,803 53,485,976 20,221,824 19,295,657
Inventory valuation adjustment 17,050,000 -- -- --
Fixed asset valuation adjustment 4,525,000 -- -- --
Cost of land sold 13,338 1,691,998 10,092 8,928
Costs relating to other operating revenues 2,634,769 2,251,531 1,098,517 749,302
Selling, general and administrative expenses 13,224,352 12,459,815 3,885,736 3,920,049
Interest costs incurred 7,511,187 8,366,544 2,449,965 2,690,646
Interest capitalized (deduct) (6,992,537) (7,851,753) (2,279,292) (2,522,318)
------------ ------------ ------------ ------------
98,405,912 70,404,111 25,386,842 24,142,264
------------ ------------ ------------ ------------
Income (loss) before provision for (benefit from)
income taxes (24,763,060) 950,169 (954,283) 1,035,026
Provision for (benefit from) income taxes (1,131,359) 357,366 (824,098) 389,298
------------ ------------ ------------ ------------
Net Income (Loss) (23,631,701) 592,803 (130,185) 645,728
============ ============ ============ ============
Earnings per Class A and Class B Common Share:
Net Income (Loss) $ (5.11) .13 (.03) .14
============ ============ ============ ============
Average Number of Class A and Class B
Common Shares Outstanding 4,625,524 4,625,524 4,625,524 4,625,524
============ ============ ============ ============
Dividends per Class A Common Share $ -- $ -- $ -- $ --
============ ============ ============ ============
Dividends per Class B Common Share $ -- $ -- $ -- $ --
============ ============ ============ ============
</TABLE>
See notes to consolidated financial statements
-3-
<PAGE> 5
ORIOLE HOMES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
INCREASE (DECREASE) IN CASH
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
----------------------------
1997 1996
------------- ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss) $(23,631,701) $ 592,803
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities
Depreciation 1,033,229 1,014,300
Amortization 376,320 413,608
Deferred income taxes (365,922) 458,375
Gain on sale of property and equipment and other assets (520,884) (2,329,426)
(Increase) decrease in operating assets
Receivables 2,408,204 1,778,004
Inventories 931,444 (14,932,317)
Inventory valuation adjustment 17,050,000 --
Fixed asset valuation adjustment 4,525,000 --
Other assets (801,988) 965,368
Increase (decrease) in operating liabilities
Accounts payable (3,294,197) 1,960,846
Customer deposits 3,285,673 5,498,741
Accrued expenses and other liabilities (916,046) (2,369,762)
------------ ------------
Total adjustments 23,710,833 (7,542,263)
------------ ------------
Net cash provided by (used in) operating activities 79,132 (6,949,460)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Return of investment in joint venture 1,928,000 12,000
Land held for investment (7,626) (13,327)
Capital expenditures (382,515) (1,545,907)
Proceeds from the sale of property
and equipment and other assets 1,102,139 6,563,247
------------ ------------
Net cash provided by investing activities 2,639,998 5,016,013
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from mortgage notes -- 12,800,000
Payment of mortgage notes (150,927) (15,151,530)
Borrowings under line of credit agreements 14,398,971 27,100,000)
Repayments under line of credit agreements (15,498,971) (24,100,000)
Repurchase of senior notes -- (250,000)
Issuance costs -- (96,236)
------------ ------------
Net cash (used in) provided by financing activities (1,250,927) 302,234
------------ ------------
NET INCREASE (DECREASE) IN CASH 1,468,203 (1,631,213)
CASH AT BEGINNING OF PERIOD 2,409,376 3,275,615
------------ ------------
CASH AT END OF PERIOD $ 3,877,579 $ 1,644,402
============ ============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for:
Interest (net of amount capitalized) $ 2,497,969 $ 2,516,832
Income taxes $ -- $ 619
</TABLE>
See notes to consolidated financial statements
-4-
<PAGE> 6
FORM 10Q
ORIOLE HOMES CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The consolidated balance sheet as of September 30, 1997, the related
statements of operations for the three months and nine months ended
September 30, 1997 and 1996 and satement of cash flows for the nine
months ending September 30, 1997 and 1996 have been prepared by the
Company without audit. In the opinion of the management of the Company,
all adjustments (consisting of normal recurring accruals) necessary for
a fair presentation of the unaudited interim periods have been
reflected herein.
Certain footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles
have been omitted. It is suggested that these consolidated financial
statements be read in conjunction with the financial statements and
notes thereto included in the Company's December 31, 1996 annual report
to shareholders.
Certain balances have been reclassified to conform to the current year
presentation.
2. The results of operations for the three months and nine months ended
September 30, 1997 are not necessarily indicative of the results for
the entire year.
3. Affiliated Companies.
The Company does not have investments in affiliated companies.
4. Inventory Valuation Adjustment.
The Company recorded, in the first quarter of 1997, an inventory
valuation adjustment of $8,700,000 or $1.88 per common share related to
certain land inventory. The adjustment pertains to land inventory for
approximately 1,000 unsold housing units located in five developments.
The Company recorded, in the second quarter of 1997, an inventory
valuation adjustment of $8,350,000 or $1.81 per common share related to
certain land inventory in the amount of $8,150,000 for approximately
1,200 unsold housing units located in five developments and the
contingent sale portion of a land sale in the amount of $200,000 to
take place later in 1997.
The fair value of those units was determined in accordance with SFAS
121 based on quoted market price in active markets, i.e., the lower of
the Company backlog of actual contract sales or current selling prices.
Deteriorating market conditions during the first and second quarter of
1997 caused the Company to lower selling prices in order to maintain
current sales levels and move current inventory resulting in the
inventory valuation adjustments.
5. Fixed Asset Valuation Adjustment
The Company recorded in the second quarter 1997 a fixed asset valuation
adjustment of $4,525,000 or $.98 per common share related to a rental
apartment project. During the second quarter, management decided to
dispose of this rental apartment project and reduced its carrying
amount to its fair value less cost to sell.
6. The inventory valuation adjustment and the fixed asset adjustment are
based in part on management estimates and assumptions that affect the
reported amounts of assets as well as the reported amounts of revenues
and expenses during the reporting period. Actual results could differ
from these estimates.
-5-
<PAGE> 7
ORIOLE HOMES CORP. AND SUBSIDIARIES
NOTES CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
7. Backlog of Contracts for Sales of Houses and Condominiums
September 30, 1997 December 31, 1996
Units Amounts Units Amounts
----- ------------ ----- -----------
Single-Family Homes 210 $ 39,471,912 173 $ 32,115,231
Multi-Family 182 24,736,605 93 12,695,047
----- ------------ ----- ------------
Total 392 $ 64,208,517 266 $ 44,810,278
===== ============ ===== ============
8. Following is a computation of earnings per share:
Three Months Ended Nine Months Ended
9/30/97 9/30/96 9/30/97 9/10/96
----------- ---------- -------------- ----------
Net Income (Loss) $ (130,185) $ 645,728 $ (23,631,701) $ 592,803
========== ========== ============= ==========
Weighted average number of
common shares outstanding 4,625,524 4,625,524 4,625,524 4,625,524
========== ========== ============= ==========
Earnings (loss) per share $ (.03) $ .14 $ (5.11) $ .13
========== ========== ============= ==========
9. Credit commitments
On January 13, 1993, the Company issued its 12 1/2% Senior Notes ("Notes"), due
January 15, 2003. The Notes have a face value of $70,000,000 and were issued at
a discount of $1,930,600. The Notes are senior unsecured obligations of the
Company subject to redemption at the Company's option on or after January 15,
1998, at 105% of the principal amount and thereafter at prices declining
annually to 100% of the principal amount on or after January 15, 2001.
The indenture under which the Notes were issued requires sinking fund payments
of $17,500,000 on January 15, 2001 and January 15, 2002.
The indenture contains certain covenants that, among other things, limit the
ability of the Company to incur additional indebtedness, pay dividends or make
certain other distributions, repurchases or issuances of capital stock or
subordinated indebtedness.
On July 13, 1993, the Company entered into a secured revolving loan agreement
with a bank which provided up to $10,000,000 in short-term financing at an
interest rate of prime plus 1 1/2%, expiring July 1, 1997. This agreement was
amended by letter dated August 27, 1997 to extend the expiration date to
November 1, 1997 and reduce the line of credit to $7,000,000. By subsequent
letter agreement dated October 30, 1997, the bank agreed to reestablish the
$10,000,000 line of credit with a requirement to maintain $42,000,000 in
consolidated tangible net worth. This agreement expires july 1, 1999. As of
September 30, 1997, the outstanding loan balance was $1,600,000.
10. Income Taxes
As a result of current period losses, the Company has net operating loss
carryforwards available to offset future taxable income. Based on estimates made
for the 1997 tax year, a portion of the net operating loss carryforward has been
applied to reduce deferred tax liabilities, thereby resulting in a net tax
benefit at September 30, 1997 of $1,131,359.
-6-
<PAGE> 8
Grant Thornton LLP
Certified Public Accountants
777 Brickell Avenue
Suite 1200
Miami, FL 33131-2867
Board of Directors
Oriole Homes Corp.
We have reviewed the accompanying consolidated balance sheet of Oriole Homes
Corp. and Subsidiaries as of September 30, 1997, and the related consolidated
statements of operations and cash flows for the three-month and nine-month
periods then ended. These financial statements are the responsibility of the
company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical review procedures to
financial data, and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying consolidated financial statements for them to be in
conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet as of December 31, 1996, and the
related consolidated statements of operations, shareholders' equity, and cash
flows for the year then ended (not presented herein) and in our report dated
March 7, 1997, we expressed an unqualified opinion on those consolidated
financial statements. In our opinion, the information set forth in the
accompanying consolidated balance sheet as of December 31, 1996, is fairly
stated, in all material respects, in relation to the consolidated balance sheet
from which it has been derived.
Grant Thornton LLP
Miami, Florida
October 28, 1997
-7-
<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL POSITION
RESULTS OF OPERATIONS.
THREE MONTHS ENDED SEPTEMBER 30, 1997 COMPARED TO THREE MONTHS ENDED SEPTEMBER
30, 1996
The Company's revenues from home sales increased 5.5% to $22.9 million during
the third quarter of 1997 as compared to the same period of 1996. The Company
delivered 141 homes in the 1997 third quarter compared to 127 in the same period
of 1996. The average selling price of homes delivered decreased 5.0% (from
$170,884 to $162,335) caused by a change in the mix of units sold toward less
costly models and reductions in the selling prices of certain slow moving units
. The Company entered into 94 new contracts with an aggregate dollar value of
$15.8 million in the third quarter of 1997 compared to 146 new contracts with an
aggregate dollar value of $24.3 million in the 1996 period. Other operating
revenues remained at the same level during the third quarter of 1997 as compared
to the same period in 1996.
Interest, rentals and other income and gain on sale of property decreased to $.7
million from $2.7 million in the same period of 1996 mainly due to the closing
of two non residential properties in West Boca Raton in the same period in 1996.
As a percentage of home sales, cost of homes sold decreased to 88.3% ($20.2
million) in the third quarter of 1997 from 88.9% ($19.3 million) in the same
period of 1996.
Selling, general and administrative expenses remained at the same level during
the third quarter of 1997 as compared to the same period in 1996. As a
percentage of total revenues, the 1997 period reflected 15.9% as compared to
15.6% in the same period of 1996.
The third quarter of 1997 reflects a net loss of $.1 million or $.03 per share
as compared to a net profit of $.6 million or $.14 per share in the comparable
period of 1996. Excluding a net profit of $1.0 million ($.22 per share)
resulting from the sale of nonresidential properties located in West Boca Raton,
the third quarter of 1996 would have resulted in a net loss of $.4 million ($.08
per share).
NINE MONTHS ENDED SEPTEMBER 30, 1997, COMPARED TO NINE MONTHS ENDED SEPTEMBER
30, 1996
The Company's revenues from home sales increased 9.7% to $68.1 million in the
nine month period of 1997 as compared to $62.1 million in the same period of
1996. The Company delivered 423 units in the first nine months of 1997 as
compared to 350 units in 1996. The average selling price of homes delivered
decreased 9.26% from $177,451 to $161,024, caused by a change in the mix of
units sold toward less costly models and reductions in the selling prices of
certain slow moving units. Deteriorating market conditions affected sales in
some projects and contributed to this reduction in selling price. In 1997, 549
new contracts were signed with a value of $87.5 million as compared to 550 new
contracts with a value of $91.4 million in 1996. Other operating revenues
amounted to $2.3 million in the nine months of 1997 as compared to $2.4 million
in the same period of 1996.
Interest, rentals and other income and gain on sale of property decreased to
$3.2 million in 1997, compared to $5.2 million in 1996 reflecting the gross
profit of $1.7 million resulting from the sale of nonresidential properties
located in West Boca Raton.
Cost of sales increased to $60.4 million in 1997 from $53.5 million in 1996, and
as a percentage of home sales, cost of home sales increased to 88.7% in 1997
from 86.1% in 1996. This increase is mainly attributable to additional interest
capitalized, reduction in selling prices, and features added to houses due to
competitive market conditions.
-8-
<PAGE> 10
Selling, general and administrative expenses increased to $13.2 million in 1997
from $12.5 million in 1996, and as a percentage of total revenues, increased to
18.0% in 1997 from 17.5% in 1996.
Net loss for the first nine months of 1997 was $23.6 million, or $5.11 per share
compared to net income of $.6 million, or $.13 per share in 1996. The net loss
for the first nine months of 1997 was mainly due to noncash pretax writedowns of
$8.7 million in the 1997 first quarter and $8.4 in the second quarter of 1997
pertaining to the carrying cost of certain land inventories and a revaluation of
$4.5 million on a 480 unit rental apartment project. During the second quarter,
management decided to dispose of the rental apartment project which required an
adjustment to reduce its carrying amount to its fair value less cost to sell.
Also included is a profit, net of taxes, of $.3 million for the sale of leases
on certain recreational facilities.
The dollar amount of the Company's backlog which reflects new sales contracts
that have yet to close decreased .8% to $64,208,517 (representing 392 units) as
of September 30, 1997 from $64,691,102 (representing 393 units) as of September
30, 1996. The average per unit value of the Company backlog now stands at
$163,797, as compared to $164,608 at the end of the 1996 third quarter.
FINANCIAL CONDITION AND LIQUIDITY
The Company's financing needs depend primarily upon sales volume, asset
turnover, land acquisition and inventory balances. The Company has historically
financed its working capital needs from funds generated through operations,
borrowings and the issuance of common stock.
As of September 30, 1997, the Company has outstanding borrowings of
approximately $80.4 million, including $66.3 million in Senior Notes due 2003.
It had available cash and short term investments of approximately $3.9 million
and available funds of approximately $8.4 million pursuant to its $10 million
credit facility. The Company believes that the funds generated from operations
and its borrowing availability under credit facilities will be sufficient to
fund the Company's foreseeable working capital requirements, with the possible
exception of land acquisitions.
The Company has negotiated a renewal of its line of credit to July 1, 1999. The
agreement reestablishes a $10,000,000 line of credit with a requirement to
maintain $42,000,000 in consolidated tangible net worth.
As of September 30, 1997, the Company had invested $4,603,000 in a Joint Venture
with a South Florida building company. The Joint Venture Agreement provides that
the Company is to receive a 15% return plus $2,800 as each developed lot or
dwelling unit is sold, and 5% of the gross sales price on land sales. The
Company's investment and its return are guaranteed by the other Joint Venturer
and by the principal shareholder of the Joint Venturer.
PART II - OTHER INFORMATION
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
The September 30, 1997 unaudited Financial Statements included in this form 10-Q
have been reviewed by Grant Thornton LLP in accordance with established
professional standards and procedures for such a review.
(a) There were no reports on Form 8-K for the three months ended September 30,
1997.
(b) Exhibits
27 Financial Data Schedule (for SEC use only).
-9-
<PAGE> 11
SIGNATURES
Pursuant to the requirements of Section 13, 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.
ORIOLE HOMES CORP.
------------------
(Registrant)
DATE: NOVEMBER 10, 1997 /s/ R.D. LEVY
- --------------------------- ------------------------------------
R.D. Levy,
Chairman of the Board,
Chief Executive Officer,
Director
DATE: NOVEMBER 10, 1997 /s/ J. PIVINSKI
- --------------------------- ------------------------------------
J. Pivinski, Vice President
Treasurer, Chief Financial Officer,
Chief Accounting Officer
-10-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 3,877,579
<SECURITIES> 0
<RECEIVABLES> 267,915
<ALLOWANCES> 0
<INVENTORY> 113,962,987
<CURRENT-ASSETS> 0
<PP&E> 27,188,874
<DEPRECIATION> 10,261,437
<TOTAL-ASSETS> 149,501,701
<CURRENT-LIABILITIES> 0
<BONDS> 80,375,441
462,553
0
<COMMON> 0
<OTHER-SE> 43,652,484
<TOTAL-LIABILITY-AND-EQUITY> 149,501,701<F1>
<SALES> 68,163,843
<TOTAL-REVENUES> 73,642,852
<CGS> 60,453,141
<TOTAL-COSTS> 84,662,910
<OTHER-EXPENSES> 13,224,352
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 518,650
<INCOME-PRETAX> (24,763,060)
<INCOME-TAX> (1,131,359)
<INCOME-CONTINUING> (23,631,710)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (23,631,701)
<EPS-PRIMARY> (5.11)
<EPS-DILUTED> (5.11)
<FN>
<F1>COMPANY REPORTS ON A NON-CLASSIFIED BALANCE SHEET.
</FN>
</TABLE>
