<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from N/A to N/A
--- ---
Commission File No. 0-15766
TECHNOLOGY FUNDING SECURED INVESTORS I
----------------------------------------------------
(Exact name of Registrant as specified in its charter)
CALIFORNIA 94-2944800
------------------------------ ----------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
2000 Alameda de las Pulgas, Suite 250
San Mateo, California 94403
- --------------------------------------- --------
(Address of principal executive offices) (Zip Code)
(415) 345-2200
--------------------------------------------------
(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
--- ---
No active market for the units of limited partnership interests
("Units") exists, and therefore the market value of such Units cannot be
determined.
<PAGE>
I. FINANCIAL INFORMATION
Item 1. Financial Statements
BALANCE SHEETS
- --------------
<TABLE>
<CAPTION>
(unaudited)
June 30, December 31,
1996 1995
---------- ------------
<S> <C> <C>
ASSETS
Investments:
Secured notes receivable, net
(cost basis of $741,412 and
$832,586 in 1996 and 1995,
respectively) $ 295,412 577,586
Equity investments (cost basis
of $259,697 and $265,947 in
1996 and 1995, respectively) 447,505 373,835
--------- ---------
Total investments 742,917 951,421
Cash and cash equivalents 502,596 941,985
Other assets 11,913 7,565
--------- ---------
Total $ 1,257,426 1,900,971
========= =========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued expenses $ 51,931 30,700
Due to related parties 4,247 420,507
Other liabilities 57,728 59,181
--------- ---------
Total liabilities 113,906 510,388
Commitments and Contingencies
(Notes 2 and 7)
Partners' capital:
Limited Partners
(Units outstanding of
111,101 in both 1996 and 1995) 1,445,919 1,580,542
General Partners (44,207) (42,847)
Net unrealized fair value (decrease)
increase from cost:
Secured notes receivable (446,000) (255,000)
Equity investments 187,808 107,888
--------- ---------
Total partners' capital 1,143,520 1,390,583
--------- ---------
Total $ 1,257,426 1,900,971
========= =========
</TABLE>
See accompanying notes to financial statements
<PAGE>
STATEMENTS OF OPERATIONS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Three For the Six
Months Ended Months Ended
June 30, June 30,
----------------------------- -------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Income:
Secured notes receivable interest $ 758 54,024 2,725 71,292
Short-term investment interest 6,020 9,822 14,325 18,553
------- --------- ------- ---------
Total income 6,778 63,846 17,050 89,845
Costs and expenses:
Management fees 7,271 10,925 14,224 21,733
Operating expenses:
Lending operations and investment
management 17,701 16,850 8,502 47,604
Administrative and investor
services 68,236 46,327 103,338 90,095
Computer services 16,602 14,165 25,530 30,259
Professional fees 17,530 11,857 26,628 21,011
------- --------- ------- ---------
Total operating expenses 120,069 89,199 163,998 188,969
------- --------- ------- ---------
Total costs and expenses 127,340 100,124 178,222 210,702
------- --------- ------- ---------
Net operating loss (120,562) (36,278) (161,172) (120,857)
Net realized gain from sales
of equity investments 15,094 57,451 30,189 318,197
Realized losses from investment
write-downs (5,000) (2,958,247) (5,000) (2,958,247)
Recoveries from investments previously
written off -- 58,575 -- 58,575
------- --------- ------- ---------
Net realized loss (110,468) (2,878,499) (135,983) (2,702,332)
Change in net unrealized
fair value:
Secured notes receivable (269,000) (80,000) (191,000) (101,000)
Equity investments 68,883 2,650,042 79,920 2,518,289
------- --------- ------- ---------
Net loss $ (310,585) (308,457) (247,063) (285,043)
======= ========= ======= =========
Net realized loss per Unit $ (1) (25) (1) (23)
======= ========= ======= =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited)
- -----------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended June 30,
---------------------------------
1996 1995
---- ----
<S> <C> <C>
Cash flows from operating activities:
Interest received $ 17,050 53,873
Cash paid to vendors (42,671) (77,594)
Cash received from (paid to)
affiliated partnerships 3,977 (9,148)
Cash paid to related parties (569,258) (147,339)
Reimbursement of collection
expenses from a portfolio company 28,900 --
--------- -------
Net cash used by operating
activities (562,002) (180,208)
--------- -------
Cash flows from investing activities:
Secured notes receivable issued (50,902) (175,000)
Repayments of secured notes receivable 142,076 127,576
Proceeds from sales of equity investments 31,439 291,725
Recoveries from investments previously
written off -- 58,575
Purchase of equity investments -- (962)
--------- -------
Net cash provided by investing
activities 122,613 301,914
--------- -------
Net (decrease) increase in cash and
cash equivalents (439,389) 121,706
Cash and cash equivalents at beginning
of year 941,985 534,644
--------- -------
Cash and cash equivalents at June 30 $ 502,596 656,350
========= =======
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited) (continued)
- -----------------------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended June 30,
---------------------------------
1996 1995
---- ----
<S> <C> <C>
Reconciliation of net loss
to net cash used by
operating activities:
Net loss $ (247,063) (285,043)
Adjustments to reconcile net
loss to net cash used by
operating activities:
Net realized gain from
sales of equity investments (30,189) (318,197)
Recoveries from investments
previously written off -- (58,575)
Realized losses from investment
write-downs 5,000 2,958,247
Change in net unrealized fair value:
Secured notes receivable 191,000 101,000
Equity investments (79,920) (2,518,289)
Amortization of discount related
to warrants -- (3,583)
Changes in:
Accrued interest on secured and
convertible notes receivable -- 12,611
Accounts payable and accrued
expenses 21,231 (23,463)
Due to/from related parties (416,260) 4,484
Other assets (4,348) (52,962)
Other changes, net (1,453) 3,562
--------- ---------
Net cash used by operating activities $ (562,002) (180,208)
========= =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
- ----------------------------------------
1. General
-------
In the opinion of the Managing General Partner, the Balance Sheets as of
June 30, 1996, and December 31, 1995, and the related Statements of
Operations for the three and six months ended June 30, 1996 and 1995,
and Statements of Cash Flows for the six months ended June 30, 1996 and
1995, reflect all adjustments which are necessary for a fair
presentation of the financial position, results of operations and cash
flows for such periods. These statements should be read in conjunction
with the Annual Report on Form 10-K for the year ended December 31,
1995. The following notes to financial statements for activity through
June 30, 1996, supplement those included in the Annual Report on Form
10-K. Allocation of income and loss to Limited and General Partners is
based on cumulative income and loss. Adjustments, if any, are reflected
in the current quarter balances. Certain 1995 balances have been
reclassified to conform with the 1996 financial statement presentation.
2. Related Party Transactions
--------------------------
Related party costs are included in costs and expenses shown on the
Statements of Operations. Related party costs for the six months ended
June 30, 1996 and 1995, were as follows:
<TABLE>
<S> <C> <C>
1996 1995
---- ----
Management fees $ 14,224 21,733
Reimbursable operating expenses 138,774 130,090
</TABLE>
Certain reimbursable expenses have been allocated and accrued based upon
interim estimates prepared by the Managing General Partner and are
adjusted to actual cost periodically. At June 30, 1996, and December
31, 1995, amounts due to related parties totaled $4,247 and $420,507,
respectively.
Within the normal course of business, the Partnership participates with
affiliated partnerships in secured notes receivable issued to
nonaffiliated borrowing companies. The Partnership may also
reparticipate such secured notes receivable amongst affiliated
partnerships to meet business needs. At December 31, 1995, the amount
due from affiliated partnerships was $3,977 (included in other assets).
This amount was received from such affiliated partnerships in the
following quarter.
3. Net Realized Loss Per Unit
--------------------------
Net realized loss per Unit is calculated by dividing total net realized
loss allocated to the Limited Partners by the weighted average number of
Limited Partner Units outstanding for the six months ended June 30, 1996
and 1995, of 111,101 and 115,501, respectively.
4. Equity Investments
------------------
A complete listing of the Partnership's equity investments at December
31, 1995, is included in the 1995 Annual Report. Activity from January
1 through June 30, 1996, consisted of:
<TABLE>
<CAPTION>
January 1 -
June 30, 1996
--------------
Investment Cost Fair
Industry/Company Date Position Basis Value
- ---------------- ---------- -------- ----- -----
<S> <C> <C> <C> <C>
Balance at January 1, 1996 $ 265,947 373,835
--------- -------
Significant changes:
WARRANTS:
Biotechnology
- -------------
Hybridon, Inc. 03/91 3,572 Common
shares at $3.50;
exercised 01/96 (1,250) (16,074)
Medical
- -------
Hemocleanse, Inc. 01/92 47,526 Common
shares at $.50;
expiring 01/97 0 118,815
STOCKS:
Industrial/Business Automation
- ------------------------------
Cyclean, Inc. 09/94- 51,024 Series D
04/96 Preferred shares 0 (124,791)
Cyclean of Los 03/95 Class A LLC Unit-
Angeles, LLC 11% ownership 0 (2,816)
Medical
- -------
Hemocleanse, Inc. 03/95 20,999 Common
shares 0 43,677
Microelectronics
- ----------------
Celeritek, Inc. 05/94 13,847 Common
shares 0 51,261
Retail/Consumer Products
- ------------------------
S-TRON 05/93 Subordinated note,
$390,000 principal
amount (0) (0)
S-TRON 05/93 390,000 Common
shares (0) (0)
S-TRON 05/93 3,237,000 Series
1 & 2 Preferred (0) (0)
shares
--------- -------
Total significant changes (1,250) 70,072
Other changes, net (5,000) 3,598
--------- -------
Total equity investments at June 30, 1996 $ 259,697 447,505
========= =======
</TABLE
Marketable Equity Securities
- ----------------------------
At June 30, 1996, and December 31, 1995, marketable equity securities had
aggregate costs of $101,591 and $78,845, respectively, and aggregate
market values of $254,514 and $145,132, respectively. The unrealized
gains at June 30, 1996, and December 31, 1995, did not include any gross
losses.
Celeritek, Inc.
- ---------------
The Partnership recorded an increase in fair value of $51,261 to reflect
the unrestricted market price at June 30, 1996.
Cyclean, Inc./Cyclean of Los Angeles, LLC
- -----------------------------------------
During the second quarter of 1996, the Partnership received a stock
dividend of 6,297 Series D Preferred shares. Subsequently, the Managing
General Partner determined that the fair value of the Partnership's
investment has declined and accordingly, the Partnership recorded a
$127,607 decrease in fair value at June 30, 1996.
Hemocleanse, Inc.
- -----------------
The Partnership recorded a total increase in fair value of $162,492 for
its warrant and common stock investment, based on the valuation set at
the most recent round of financing in which third parties participated.
Hybridon, Inc.
- --------------
In January of 1996, Hybridon, Inc., completed its initial public
offering. The Partnership exercised its warrant holdings without cash
and received 2,532 shares of common stock, which were subsequently sold
for total proceeds of $22,549. The total and realized gain from these
transactions was $21,299.
S-TRON
- ------
The company was unsuccessful in its efforts to obtain a major government
contract; as a result, company operations ceased during March of 1996.
This investment, which had previously been written off, is no longer held
by the Partnership.
Other Equity Investments
- ------------------------
In May of 1996, the Partnership sold 6,773 Photon Dynamics common shares
borrowed from an outside brokerage firm and subsequently closed its open
position with purchases on the open market. These transactions resulted
in a realized gain of $8,890 and the Partnership maximized its gain based
upon an evaluation of the prevailing market conditions.
5. Secured Notes Receivable, Net
-----------------------------
Activity from January 1, 1996, through June 30, 1996, consisted of:
</TABLE>
<TABLE>
<S> <C>
Balance at January 1, 1996 $577,586
1996 activity:
Secured notes receivable issued 50,902
Repayments of secured notes receivable (142,076)
Increase in allowance for loan losses (191,000)
-------
Total secured notes receivable, net,
at June 30, 1996 $295,412
=======
</TABLE>
The Partnership had no accrued interest at June 30, 1996, and December
31, 1995.
Activity in the allowance for loan losses was as follows:
<TABLE>
<S> <C>
Balance at January 1, 1996 $255,000
Change in net unrealized fair value
of secured notes receivable 191,000
-------
Balance at June 30, 1996 $446,000
=======
</TABLE>
The allowance for loan losses is adjusted quarterly based upon changes to
the portfolio size and risk profile. Although the allowance is
established by evaluating individual debtor repayment ability, the
allowance represents the Managing General Partner's assessment of the
portfolio as a whole.
Secured notes receivable of $741,412 and $832,586 were on nonaccrual
status due to uncertainty of certain borrowers' financial conditions at
June 30, 1996, and December 31, 1995, respectively. The Managing General
Partner continues to monitor the progress of these companies. The fair
value at June 30, 1996, reflected the Managing General Partner's estimate
of collectibility of these notes.
During the first quarter of 1996, the Partnership received approximately
$41,000 from a portfolio company in the medical industry to pay off its
principal balance. In addition, the Partnership was reimbursed $28,900
for legal, consulting, and other costs incurred in prior periods in the
defense of the Partnership's secured note rights through bankruptcy
court. The reimbursement was recorded as a reduction to lending
operations and investment management expense.
All notes are secured by specific assets of the borrowing company. The
interest rate on notes issued during the six months ended June 30, 1996,
ranged from 12% to 14%.
6. Cash and Cash Equivalents
-------------------------
At June 30, 1996, and December 31, 1995, cash and cash equivalents
consisted of:
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Demand and brokerage accounts $ 8,115 --
Money market accounts 437,580 941,985
Broker accounts 56,901 --
------- -------
Total $502,596 941,985
======= =======
</TABLE>
7. Commitments and Contingencies
-----------------------------
The Partnership is a party to financial instruments with off-balance-
sheet risk in the normal course of its business. Generally, these
instruments are equipment financing commitments or accounts receivable
lines of credit that are outstanding but not currently fully utilized by
a borrowing company. As they do not represent current outstanding
balances, these unfunded commitments are properly not recognized in the
financial statements. At June 30, 1996, the Partnership had unfunded
commitments of $4,500 related to term note financings to an existing
borrowing company.
In June of 1996, a lawsuit was filed by a third party in the Los Angeles
County Superior Court against an affiliated partnership, the Managing
General Partner and certain of its officers, and Cyclean, Inc., a
portfolio company in the industrial/business automation industry. The
Partnership participated in investments to the portfolio company with the
affiliated partnership. The third party has asserted claims for
interference with contractual relations against the defendants. The
plaintiff further alleges that the affiliated partnership agreed to
purchase its interest in an entity partially owned by the plaintiff and
seeks unspecified damages against the affiliated partnership and its
affiliates. The Managing General Partner believes that the affiliated
partnership has adequate defenses and intends to pursue this matter
vigorously. The Managing General Partner believes the outcome will not
have a material adverse effect on the Partnership's financial position at
June 30, 1996.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
-----------------------------------------------------------
and Results of Operations
-------------------------
Liquidity and Capital Resources
- -------------------------------
During the six months ended June 30, 1996, net cash used by operating
activities totaled $562,002. The Partnership paid management fees of
$14,224 to the Managing General Partner, reimbursed related parties for
operating expenses of $555,034, and received $3,977 from affiliated
partnerships for net loan participations. Other operating expenses of
$42,671 were paid and interest income of $17,050 was received. In
addition, the Partnership received a collection expense reimbursement of
$28,900 from a portfolio company.
During the six months ended June 30, 1996, the partnership issued $50,902
in secured notes receivable mostly to portfolio companies in the
computers and computer equipment industry. Repayments of notes
receivable provided cash of $142,076 and proceeds from investment sales
totaled $31,439. As of June 30, 1996, the Partnership was committed to
fund $4,500 related to term note financings to an existing borrowing
company.
Each June, Limited Partners may tender their Units for repurchase by the
Partnership. The price paid for any Units tendered is subject to the
restrictions stated in the Partnership Agreement. As of June 30, 1996,
requests to repurchase approximately 1,300 Units had been received. The
amount to be offered for the Unit repurchases will be determined in the
following quarter.
Cash and cash equivalents at June 30, 1996, were $502,596. Distributions
will fluctuate in the future based upon loan payoffs received and
expected cash needed by the Partnership. Operating cash reserves
combined with interest income received on short-term investments,
proceeds from investment sales, and repayments of secured notes
receivable are expected to be sufficient to fund Partnership operations
through the next twelve months.
Results of Operations
- ---------------------
Current quarter compared to corresponding quarter in the preceding year
- -----------------------------------------------------------------------
Net losses were $310,585 and $308,457 for the three months ended June 30,
1996 and 1995, respectively. The slight change was substantially due to
decreases of $2,581,159 and $189,000 in net unrealized fair value of
equity investments and secured notes receivable, respectively. These
changes were mostly offset by a $2,953,247 decrease in realized losses
from investment write-downs.
During the quarter ended June 30, 1996, the $68,883 increase in fair
value of equity investments was primarily due to increases in medical and
microelectronics industries, partially offset by decreases in
industrial/business automation industry. In 1995, the $2,650,042 increase
was primarily due to the write-downs of $2,958,247, mostly related to
portfolio companies in the medical and retail/consumer product industries
as these investments had been reflected with fair values less than cost.
The Partnership recorded decreases in fair values of secured notes
receivable of $269,000 and $80,000 for the three months ended June 30,
1996 and 1995, respectively, based upon the level of loan loss reserves
deemed adequate by the Managing General Partner at the respective quarter
ends.
There were no recoveries recorded in 1996. During the three months ended
June 30, 1995, the recovery of $58,575 related to a portfolio company in
the computers and computer equipment industry.
Secured notes receivable interest income totaled $758 in 1996, compared
to $54,024 in 1995. The 1995 amount included nonrecurring warrant income
of $45,000 from the Integrated Network Corporation warrant redemption.
Secured notes receivable interest income in 1995 would have been $9,024
without such income. The decrease was primarily due to lower interest-
bearing notes receivable balances.
Total operating expenses were $120,069 and $89,199 for the three months
ended June 30, 1996 and 1995, respectively. The increase was mostly
attributable to allocated overhead costs in 1996 as permitted by the
Partnership Agreement.
Given the inherent risk associated with the business of the Partnership,
the future performance of the borrowing companies may significantly
impact the Partnership's future operations.
Current six months compared to corresponding six months in the preceding
- ------------------------------------------------------------------------
year
- ----
Net losses for the six months ended June 30, 1996 and 1995, were $247,063
and $285,043, respectively. The decrease in net loss was primarily
attributable to a $2,953,247 decrease in realized losses from investment
write-downs, mostly offset by a $2,438,369 decrease in the change in net
unrealized fair value of equity investments, a $288,008 decrease in net
realized gain from sales of equity investments, and a $90,000 decrease in
the change in net unrealized fair value of secured notes receivable.
During the six months ended June 30, 1996, the $79,920 increase in fair
value of equity investment was primarily due to increases in medical and
microelectronics industries, partially offset by decreases in
industrial/business automation industry. In 1995, the $2,518,289 increase
was primarily due to the write-downs of $2,958,247, mostly related to
portfolio companies in the medical and retail/consumer product industries
as these investments had been reflected with a fair value less than cost.
During the six months ended June 30, 1996, the Partnership realized a
gain of $30,189 primarily related to the sale of Hybridon Inc., and the
closed Photon Dynamics short sale. In 1995, the realized gain of
$318,197 primarily related to the sale of IKOS Systems, Inc., and the
non-cash exercise of Primary Access Corporation warrants.
The Partnership recorded a decrease in the fair value of secured notes
receivable of $191,000 and $101,000 for the six months ended June 30,
1996 and 1995, respectively, based upon the level of loan loss reserves
deemed adequate by the Managing General Partner at the respective quarter
ends.
In 1996, secured notes receivable interest income was $2,725, compared to
$71,292 in 1995, which included nonrecurring warrant income of $45,000 as
discussed in the above section. The 1995 secured notes receivable
interest income would have been $26,292 without such income. The decrease
was primarily due to lower interest-bearing notes receivable balances.
Total operating expenses were $163,998 and $188,969 for the six months
ended June 30, 1996 and 1995, respectively. As explained in Note 5 to
the financial statements, the 1996 operating expenses were reduced by a
$28,900 reimbursement of prior period collection expenses from a
portfolio company in the medical industry. Had the reimbursement not
been received, total operating expenses in 1995 would have been $192,898.
II. OTHER INFORMATION
Item 1. Legal Proceedings
As disclosed in Note 7 to the financial statements, there is pending
litigation to which the Partnership is an indirect party.
Item 6. Exhibits and Reports on Form 8-K
(a) No reports on Form 8-K were filed by the Partnership during the
quarter ended June 30, 1996.
(b) Financial Data Schedule for the six months ended and as of June 30,
1996 (Exhibit 27).
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of Section 13 or 15(d) 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.
TECHNOLOGY FUNDING SECURED INVESTORS I
By: TECHNOLOGY FUNDING INC.
Managing General Partner
Date: August 9, 1996 By: /s/Debbie A. Wong
-----------------------------------
Debbie A. Wong
Controller
<TABLE> <S> <C>
<ARTICLE>6
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE FORM 10-Q AS OF JUNE 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
<MULTIPLIER>1
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<PERIOD-TYPE> 6-MOS
<INVESTMENTS-AT-COST> 1,001,109
<INVESTMENTS-AT-VALUE> 742,917
<RECEIVABLES> 0
<ASSETS-OTHER> 11,913
<OTHER-ITEMS-ASSETS> 502,596
<TOTAL-ASSETS> 1,257,426
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 113,906
<TOTAL-LIABILITIES> 113,906
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,401,712
<SHARES-COMMON-STOCK> 111,101
<SHARES-COMMON-PRIOR> 111,101
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (258,192)
<NET-ASSETS> 1,143,520
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 17,050
<OTHER-INCOME> 0
<EXPENSES-NET> 178,222
<NET-INVESTMENT-INCOME> (161,172)
<REALIZED-GAINS-CURRENT> 25,189
<APPREC-INCREASE-CURRENT> (111,080)
<NET-CHANGE-FROM-OPS> (247,063)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (247,063)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 14,224
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 228,559
<AVERAGE-NET-ASSETS> 1,259,125
<PER-SHARE-NAV-BEGIN> 14
<PER-SHARE-NII> (1)
<PER-SHARE-GAIN-APPREC> 0 <F1>
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13
<EXPENSE-RATIO> 14
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>
A zero value is used since the change in net unrealized fair value is not
allocated to General Partners and Limited Partners as it is not taxable.
Only taxable gains or losses are allocated in accordance with the
Partnership Agreement.
</FN>
</TABLE>
