UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended
September 30, 1998
Commission File Number 2-93277-D
MEDIZONE INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
Nevada 87-0412648
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
144 Buena Vista
P.O. Box 742
Stinson Beach, CA 94970
(Address of principal executive offices, zip code)
(415) 868-0300
(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 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 [ ]
At December 3, 1998, there were 148,806,434 shares of the registrant's common
stock issued and outstanding.
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<PAGE>
MEDIZONE INTERNATIONAL, INC.
FORM 10-Q
INDEX
September 30, 1998
Page
Number
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
Consolidated Balance Sheets:
-September 30, 1998 and December 31, 1997...................... 3
Consolidated Statements of Operations:
-For the Three Months and Nine Months
Ended September 30, 1998 and 1997............................. 4
Consolidated Statements of Cash Flow
-For the Nine Months Ended
September 30, 1998 and 1997................................... 5
Notes to Consolidated Financial Statements...................... 6
Item 2 - Management's Discussion and Analysis of Financial
Condition and Results of Operations......................... 7
PART II - OTHER INFORMATION
Item 2 - Changes in Securities and Use of Proceeds.................. 10
Item 4 - Submission of Matters to a Vote of Security Holder......... 10
Item 5 - Other Information.......................................... 11
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<PAGE>
<TABLE>
<CAPTION>
MEDIZONE INTERNATIONAL, INC. AND SUBSIDIARIES
(A Development Stage Company)
CONSOLIDATED BALANCE SHEETS
September 30, 1998 and December 31, 1997
September 30, December 31,
1998 1997
-------------- --------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 27,563 $ 138,173
Prepaid expenses and advances - 9,154
-------------- --------------
Total Current Assets 27,563 147,327
-------------- --------------
PROPERTY AND EQUIPMENT, at cost, net of
accumulated depreciation 8,023 8,268
-------------- --------------
OTHER ASSETS
Receivable from affiliate 48,947 48,947
License agreement - -
Organization costs, net of accumulated
amortization - -
Deposits 255 2,477
-------------- --------------
Total Other Assets 49,202 51,424
-------------- --------------
$ 84,788 $ 207,019
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 501,011 $ 517,011
Current portion of long-term debt 310,491 354,115
Other current liabilities 267,743 222,060
-------------- --------------
Total Current Liabilities 1,079,245 1,093,186
-------------- --------------
STOCKHOLDERS' EQUITY
Common stock, $.001 par value; authorized
250,000,000 shares; issued and outstanding
147,158,804 shares and 136,887,629 shares
as of September 30, 1998 and December 31,
1997, respectively 147,159 136,888
Additional paid-in capital 12,531,257 12,188,909
Subscribed shares - 5,714
Deficit accumulated during the development
stage (13,672,873) (13,217,678)
-------------- --------------
Total Stockholders' Equity (994,457) (886,167)
-------------- --------------
$ 84,788 $ 207,019
============== ==============
</TABLE>
The accompanying notes are an integral part of these financial statements.
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<PAGE>
<TABLE>
<CAPTION>
MEDIZONE INTERNATIONAL, INC. AND SUBSIDIARIES
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
-------------------- ------------------------
1998 1997 1998 1997
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
REVENUE $ - $ - $ - $ -
COST OF SALES - - - -
-------------- -------------- -------------- --------------
Gross Profit - - - -
-------------- -------------- -------------- --------------
COSTS AND EXPENSES
Research and development 5,009 - 13,219 106,000
General and administrative 184,149 29,969 422,350 578,017
-------------- -------------- -------------- --------------
Total Costs and Expenses 189,158 29,969 435,569 684,017
-------------- -------------- -------------- --------------
Loss Before Other Income (Expense) (189,158) (29,969) (435,569) (684,017)
-------------- -------------- -------------- --------------
OTHER INCOME (EXPENSE)
Interest income - - 420 -
Interest expense (6,608) (7,215) (20,046) (21,550)
-------------- -------------- -------------- --------------
Total Other Income (Expense)-net (6,608) (7,215) (19,626) (21,550)
-------------- -------------- -------------- --------------
Net Loss Before Income Taxes (195,766) (37,184) (455,195) (705,567)
Income tax expense (benefit) - - - -
-------------- -------------- -------------- --------------
Net Loss $ (195,766) $ (37,184) $ (455,195) $(705,567)
============== ============== ============== ==============
Average Common and Equivalent Shares:
Basic 144,848,804 136,760,000 143,576,479 133,524,000
============== ============== ============== ==============
Diluted 144,848,804 136,760,000 143,576,479 133,524,000
============== ============== ============== ==============
Net Loss Per Common Share:
Basic $ (.00) $ (.00) $ (.00) $ (.01)
============== ============== ============== ==============
Diluted $ (.00) $ (.00) $ (.00) $ (.01)
============== ============== ============== ==============
</TABLE>
The accompanying notes are an integral part of these financial statements.
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<PAGE>
<TABLE>
<CAPTION>
MEDIZONE INTERNATIONAL, INC. AND SUBSIDIARIES
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 1998 and 1997
1998 1997
-------------- --------------
CASH USED IN OPERATING ACTIVITIES:
<S> <C> <C>
Net loss $ (455,195) $ (705,567)
Adjustments to reconcile net loss to cash
provided by operating activities:
Depreciation 2,262 1,356
Issuance of stock for services 173,250 361,918
Issuance of stock for accrued interest 3,238 -
Changes in operating assets and liabilities:
Prepaid expenses and deposits 11,376 10,702
Accounts payable and other liabilities 26,445 276,262
-------------- --------------
Net Cash Used by Operating Activities (238,624) (55,329)
-------------- --------------
CASH USED IN INVESTING ACTIVITIES:
Acquisition of property and equipment (2,017) -
Disposition of property and equipment - 7,713
-------------- --------------
Net Cash Provided (Used) by Investing Activities (2,017) 7,713
-------------- --------------
CASH PROVIDED BY FINANCING ACTIVITIES:
Proceeds from sale of common stock 133,655 400,000
Repayment of notes payable (3,624) 21,800
-------------- --------------
Net Cash Provided by Financing Activities 130,031 421,800
-------------- --------------
Net Increase (Decrease) in Cash (110,610) 374,184
Cash at Beginning of Period 138,173 3,579
-------------- --------------
Cash at End of Period $ 27,563 $ 377,763
============== ==============
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest $ - $ -
Cash paid for income taxes - -
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Common stock issued for cancellation of
indebtedness and accrued interest $ 40,000 $ -
Issuance of common stock for services 173,250 361,918
</TABLE>
The accompanying notes are an integral part of these financial statements.
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<PAGE>
MEDIZONE INTERNATIONAL, INC. AND SUBSIDIARIES
(A Development Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1 - BASIS OF PRESENTATION
The financial information included herein is unaudited; however, such
information reflects all adjustments (consisting solely of normal recurring
adjustments) which are, in the opinion of management, necessary for a fair
statement of results for the interim periods.
The results of operations for the three-month and nine-month periods ended
September 30, 1998 and 1997 are not necessarily indicative of the results to
be expected for the full year. The Notes to Consolidated Financial Statements
included in the Company's December 31, 1997 Annual Report on Form 10-K should
be read in conjunction with these consolidated financial statements.
2 - CAPITAL STOCK
During the quarter ended September 30, 1998, 3,465,000 common shares valued
at $173,250, were issued to current and former officers and directors of the
Company in consideration of services rendered. Additionally, 630,000 shares of
common stock were canceled.
4 - INCOME (LOSS) PER SHARE
During the current fiscal year, the Company adopted FASB Statement No. 128,
Earnings Per Share. Statement 128 requires presentation of basic earnings per
share and diluted earnings per share. Basic earnings per share excludes
potential dilution and is computed by dividing income (or loss) available to
common stockholders by the weighted-average number of common shares outstanding
for the period. Diluted earnings per share reflects the potential dilution that
could occur if securities or other contracts to issue common stock were
exercised or converted into common stock or resulted in the issuance of common
stock that then shared in the earnings of the entity. Diluted earnings per
share is computed similarly to fully diluted earnings per share under previous
generally accepted accounting principles in the United States. All prior year
earnings per share data are restated to conform with Statement 128 for
consistent presentation of all years.
Following, is a reconciliation of the numerators of the basic and diluted
income (loss) per share for the three months ended September 30, 1998 and 1997
and the nine months ended September 30, 1998 and 1997:
<TABLE>
<CAPTION>
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
1998 1997 1998 1997
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Net income (loss) available to
common shareholders $ (195,766) $ (37,184) $ (455,195) $ (705,567)
============== ============== ============== ==============
Weighted average shares 144,848,804 136,760,000 143,576,479 133,524,000
Effect of dilutive securities - - - -
-------------- -------------- ------------- --------------
144,848,804 136,760,000 143,576,479 133,524,000
============== ============== ============= ==============
Basic income (loss) per share (based
on weighted average shares) $ (.00) $ (.00) $ (.00) $ (.01)
============== ============== ============= ==============
Diluted income (loss) per share $ (.00) $ (.00) $ (.00) $ (.01)
============== ============== ============= ==============
</TABLE>
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<PAGE>
ITEM 2 Management's Discussion and Analysis of Financial Condition and
Results of Operations
The following discussion and analysis of the Company's financial condition
and results of operations should be read in conjunction with the Consolidated
Financial Statements and Notes thereto appearing elsewhere in this Form 10-Q.
Results of Operations
The Company is a development stage company, primarily engaged in research and
development of ozone based treatment for diseases and health problems caused by
lipid enveloped viruses, including, for example, Acquired Immune Deficiency
Syndrome (AIDS), Hepatitis B, Hepatitis C and Herpes, and in the development of
technology for the decontamination of blood, blood products and veterinarian
serum products. The Company is also pursuing the development of external
applications of its technology for medical purposes.
The Company has not generated, and cannot predict when or if it will generate,
significant revenues or sufficient cash flow to fund its continuing operations.
It has funded its operations to date primarily through the sale of its
securities. The technology and its uses are subject to regulations of the
U.S. Food and Drug Administration ("FDA") and its counterparts in foreign
countries. The Company does not intend to sell equipment or supplies for
ozone-generating purposes until it receives required government approvals.
Testing and trials can be conducted on a limited basis for research purposes
and to establish efficacy of machines and applications, in order to support
applications for government approvals. In November of 1997, Dr. Sunnen, the
Director of Research (who later was appointed president of the Company on
April 15, 1998) was instrumental in establishing a protocol for Phase II
research to be performed at several leading Italian university research
facility under the auspices of the European Union. It has now been determined,
based on information regarding the low toxicity levels demonstrated in earlier
research, that European Union health authorities will accept completion of a
small-scale Phase I clinical study with 8-10 patients prior to starting the
Phase II trial. The Company is currently preparing submission papers for a
study designed to meet this criteria. It is anticipated that this trial will
be approved in a Tier I country during the first quarter of 1999.
The Company also has recently conducted trial treatment studies on 4 patients
infected with Hepatitis C. This study was conducted through the guidance of
Dr. William Hitt, a member of the Company's board of directors. The tests
indicated significant reductions in enzyme levels as measured by SGOT and
SGPT standard test procedures of the patients participating in the study.
Enrollment has begun for a new 10-12 patients study of Hepatitis C, with
clinical data analyzed by an independent facility in Los Angeles, California.
Testing will be conducted prior to, during and following the completion of
treatment and a six-week convalescence follow-up.
The Company has recently filed a patent application for the external
applications of ozone for medical purposes. Problems that might be addressed
by such uses would include treatment of severe burns, infections of ulcers of
the skin (such as those that might be caused by advanced stages of diabetes)
or other wounds. In connection with this use of ozone, the Company filed a
patent application, no. 09/126,504, External Use of Ozone/Oxygen for Pathogenic
Conditions, with the US Patent and Trademark Office on July 30, 1998. Foreign
applications based on this application have also been made. In addition, the
Company owns patents covering its ozone decontamination technology filed in
the United States (no. 4,632,980, December 30, 1986 and no. 5,052,382, October
1, 1991), and related patents granted in several foreign countries. These
patents form the basis for the Company's technology used in the studies
described above.
The Company has also been active in pursuing veterinary trials investigating
the effectiveness of ozone in deactivation of viruses in serum products. The
Phase I trial on healthy serum products was concluded in October, 1998 and was
deemed successful by the Company's researchers. Dr. Sunnen expects that a
Phase II trial should also be successful based on the results of the first
round. The Phase II trial commenced in November and will investigate the
deactivation rates of 7 different viruses and is expected to be completed in
2 to 3 months. If the results are satisfactory, the Company believes its
technology can be used in the veterinary medicine field to form the basis for
the creation of a line of safer and more effective vaccines. If the Phase II
veterinary trials are successful, a Phase III trial would follow in the first
quarter of 1999. The study would include using the Company's ozone technology
to treat commercial quantities of serum products, possibly leading to a
commercially marketable process for large-scale viral deactivation during the
year 2000.
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<PAGE>
There is no assurance that the results of such tests and studies will be
favorable to the Company or that regulatory approval will be received based
on such results.
Three Months Ended September 30, 1998 compared to the Three Months Ended
September 30, 1997:
During the three months ended September 30, 1997, the Company experienced no
expenditures for research and development, compared to $5,009 during the same
period in 1998. General and administrative expenses in the third quarter of
1998 were $184,149, compared to $29,969 during the third quarter of 1997.
Interest expense during the three months ended September 30, 1998 was $6,608,
compared to $7,215 in the three months ended September 30, 1997.
Net cash used in operating activities was $238,624 for the nine months ended
September 30, 1998. During the nine months ended September 30, 1997, the
Company used $55,329 in operating activities. Cash was provided in each period
primarily by the sale of the Company's securities. During the nine-month
period in 1998, the Company also sold its interests in a subsidiary, Medizone
Canada Ltd., for cash.
Nine Months Ended September 30, 1998 compared to the Nine Months Ended
September 30, 1997:
During the nine months ended September 30, 1998, the expenditures for research
and development decreased to $13,219, from $106,000 during the same period in
1997. General and administrative expenses in the nine months ended September
30, 1998, decreased to $422,350 compared to $578,017 during the nine months
ended September 30, 1997.
Interest expense during the nine months ended September 30, 1998 was $20,046,
compared to $21,550 for the nine months ended September 30, 1997.
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 1998, the Company had a working capital deficiency of
$1,051,682 and stockholders' deficiency of $994,457. At December 31, 1997,
the Company had a working capital deficiency of $945,859 and stockholders'
deficiency of $886,167.
The Company has developed a strategy, which it believes will enable it to
fund requisite research necessary to gain regulatory approval(s) and continue
operations. This strategy depends upon the sale of the Company's common stock
or other securities to certain accredited investors. The Company has also
structured and recently implemented a cohesive scientific plan encompassing a
number of research initiatives which it believes may enable it to successfully
achieve its primary goals, which include the submission of appropriate research
data to the FDA Center for Drugs and Biologics for the approval of its blood
decontamination process and to the FDA Division of Antiviral Drug Products for
approval of Phase I human clinical trial status for the treatment of AIDS.
There can be no assurance that either the funding strategy or the scientific
plan will be successful. Failure to obtain requisite funding would have a
materially adverse effect on the Company and its financial condition. At the
present time, although the Company has had serious discussions with two
unrelated funding sources, there is no agreement for an investment of capital
in the Company.
The Company recognizes that, if it is unable to raise additional capital, it
may find it necessary to substantially reduce, or cease operations.
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<PAGE>
Forward-Looking Statements and Risks Affecting the Company
The statements contained in this Report on Form 10-Q that are not purely
historical are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and Section 21E of the Securities
Exchange Act. These statements regard the Company's expectations, hopes,
beliefs, anticipations, commitments, intentions and strategies regarding the
future. They may be identified by the use of words or phrases such as
"believes," "expects," "anticipates," "should," "plans," "estimates," and
"potential," among others. Forward-looking statements include, but are not
limited to, statements contained in Management's Discussion and Analysis of
Financial Condition and Results of Operations regarding the Company's
financial performance, revenue and expense levels in the future and the
sufficiency of its existing assets to fund future operations and capital
spending needs. Actual results could differ materially from the anticipated
results or other expectations expressed in such forward-looking statements for
the reasons detailed in the Company's Annual Report on Form 10-K under the
headings "Description of Business" and "Risk Factors." The fact that some of
the risk factors may be the same or similar to the Company's past reports filed
with the Securities and Exchange Commission means only that the risks are
present in multiple periods. The Company believes that many of the risks
detailed here and in the Company's SEC filings are part of doing business in
the industry in which the Company operates and competes and will likely be
present in all periods reported. The fact that certain risks are endemic to
the industry does not lessen their significance. The forward-looking statements
contained in this report are made as of the date of this Report and the Company
assumes no obligation to update them or to update the reasons why actual
results could differ from those projected in such forward-looking statements.
Among others, risks and uncertainties that may affect the business, financial
condition, performance, development, and results of operations of the Company
include, without limitation:
* rigorous government scrutiny and regulation of the products and planned
products of the Company;
* potential effects of adverse publicity regarding ozone and related
technologies or industries;
* failure of the Company to sustain or manage growth including the failure
to continue to develop new products.
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<PAGE>
PART II - OTHER INFORMATION
ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS
Unregistered sales of equity securities during quarter (other than in reliance
on Regulation S).
During the period covered by this report, the Company issued equity securities
that were not registered under the Securities Act of 1933, as amended (the
"Act"). Specifically, the Company issued 3,465,000 restricted shares valued
at $173,250, to certain current and former officers and directors in
consideration of services rendered to the Company by those persons. Of the
total number of shares issued, 1,500,000 restricted shares were issued to each
of Edwin G. Marshall and Gerard V. Sunnen, the CEO and President of the
Company, respectively; 250,000 restricted shares were issued to William Hitt,
a director of the Company, and the balance of 215,000 restricted shares were
issued to three former directors and officers of the Company; Milton G. Adair
(150,000 shares), Joy Erickson (15,000 shares) and Ken Groper (50,000 shares).
The number of shares of common stock issued was calculated based on the
average of the bid and ask prices of the Company's common stock on the date
such shares were issued. The Company issued such shares without registration
under the Act in reliance on exemptions from registration under the Section
4(2) and/or 3(b), as well as Regulation D promulgated under the Act. The shares
of common stock were issued as restricted securities and the certificates
representing such shares were stamped with a restrictive legend to prevent
any resale without registration under the Act or compliance with an exemption.
In each case, the recipients of the securities were accredited investors, as
that term is defined by Rule 501 under the Act, because of their current or
former affiliation with the Company.
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At its Annual Meeting of Shareholders held on Thursday, September 17, 1998,
the following actions were submitted and approved by vote of the majority of
the shares present in person and by proxy:
1. Election of three directors;
2. Approval of the adoption of amended and restated bylaws of the
Company; and
3. Approval of the selection of Andersen, Andersen & Strong, LC as the
Company's independent certified public accountants.
A total of 144,323,804 shares of common stock were issued and outstanding as
of August 3, 1998, the date set by the Board of Directors of the Company for
notice of and eligibility to vote at the Annual Meeting. At the meeting, there
were present or represented by proxy a total of 63,722,706 shares
(approximately 44%) of the issued and outstanding shares of the Company.
Pursuant to the bylaws of the Company as then in effect, a quorum of 33% of
the issued and outstanding shares was required for purposes of establishing a
quorum and proceeding with the business of the meeting. A majority of the
votes present and cast at the meeting voted in favor of the actions proposed
by the Board of Directors. The details of the voting results were as follows:
For the directors:
<TABLE>
<CAPTION>
Name of Nominee Number of Shares Number of Shares Number of Shares
for Director For Nominee Against Nominee Abstaining/Withheld
----------------------- ---------------- ---------------- -------------------
<S> <C> <C> <C> <C>
Edwin G. Marshall 63,470,842 251,864 0
Gerard V. Sunnen, MD 63,486,342 236,364 0
William Hitt, Ph.D., MD 63,418,342 241,364 0
</TABLE>
For the adoption of Amended and Restated Bylaws, a total of 44,317,651 shares
were voted for the ratification, 299,865 shares were voted against this
proposal, and 132,928 shares abstained or were withheld. Broker non-votes
were not counted in the voting on this proposal.
For the ratification of Andersen, Andersen & Strong, LC as the independent
certified accountants of the Company, a total of 65,519,773 shares were voted
in favor of ratification, 128,250 shares were voted against this proposal, and
74,683 shares abstained or were withheld. This vote is not binding on the
Board of Directors and the Board may, in its discretion, appoint other
independent certified accountants.
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<PAGE>
ITEM 5 - OTHER INFORMATION
In October 1998, the Company terminated the services of its Chief Financial
Officer, Arthur P. Bergeron. The Company has engaged the services of Kevin
Andersen, a partner in the firm of Andersen, Andersen & Strong, LC, the
Company's independent accountants. The engagement of Mr. Andersen as the CFO
of the Company will require a change in the Company's independent certified
accountants. The decision of the Board with regard to the engagement of a new
public accounting firm will be announced at a future date.
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit No. Description
----------- ------------
27 Financial Data Schedule for September 30, 1998
Form 10-Q
No reports on Form 8-K have been filed during
the quarter ended September 30, 1998
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<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MEDIZONE INTERNATIONAL, INC.
(Registrant)
/s/ Edwin G. Marshall
------------------------------------
Edwin G. Marshall, Chairman and
Chief Executive Officer
(Principal Executive Officer)
/s/ Kevin R. Andersen
------------------------------------
Kevin R. Andersen, Chief Financial
Officer
December 15, 1998
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<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 27,563
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 27,563
<PP&E> 10,625
<DEPRECIATION> 2,602
<TOTAL-ASSETS> 84,788
<CURRENT-LIABILITIES> 1,079,245
<BONDS> 0
0
0
<COMMON> 147,159
<OTHER-SE> (1,141,616)
<TOTAL-LIABILITY-AND-EQUITY> (994,457)
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 22,516
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6,608
<INCOME-PRETAX> (195,766)
<INCOME-TAX> 0
<INCOME-CONTINUING> (195,766)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (195,766)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
