<PAGE> 1
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, 1995, or
/ / Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from _______ to _______
Commission File No. 33-3353A
PARKER & PARSLEY 86-A, LTD.
(Exact name of Registrant as specified in its charter)
Texas 75-2124884
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
303 West Wall, Suite 101,
Midland, Texas 79701
(Address of principal executive offices) (Zip code)
Registrant's Telephone Number, including area code: (915)683-4768
Not applicable
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes /x/ No / /
Page 1 of 15 pages.
There are no exhibits.
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PARKER & PARSLEY 86-A, LTD.
(A Texas Limited Partnership)
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
BALANCE SHEETS
June 30, December 31,
1995 1994
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including
interest bearing deposits of
$59,080 at June 30 and $24,892 at
December 31 $ 59,617 $ 25,005
Accounts receivable - oil and gas sales 91,834 95,300
---------- ----------
Total current assets 151,451 120,305
Oil and gas properties - at cost, based
on the successful efforts accounting
method 8,006,799 7,992,878
Accumulated depletion (5,476,783) (5,321,457)
---------- ----------
Net oil and gas properties 2,530,016 2,671,421
---------- ----------
$ 2,681,467 $ 2,791,726
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 77,433 $ 48,563
Partners' capital:
Limited partners (10,131 interests) 2,579,299 2,717,034
Managing general partner 24,735 26,129
---------- ----------
2,604,034 2,743,163
---------- ----------
$ 2,681,467 $ 2,791,726
========== ==========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these statements.
2
<PAGE> 3
PARKER & PARSLEY 86-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Six months ended
June 30, June 30,
1995 1994 1995 1994
---------- ---------- ---------- ----------
Revenues:
Oil and gas sales $ 205,918 $ 201,731 $ 414,138 $ 386,951
Interest income 839 564 1,618 761
Salvage income from
equipment disposal 6,734 - 6,734 223
--------- --------- --------- ---------
Total revenues 213,491 202,295 422,490 387,935
Costs and expenses:
Production costs 127,873 136,983 258,927 245,714
General and adminis-
trative expenses 6,177 6,052 12,424 11,609
Depletion 67,991 55,852 155,326 158,337
--------- --------- --------- ---------
Total costs and
expenses 202,041 198,887 426,677 415,660
--------- --------- --------- ---------
Net income (loss) $ 11,450 $ 3,408 $ (4,187) $ (27,725)
========= ========= ========= =========
Allocation of net
income (loss):
Managing general
partner $ 115 $ 34 $ (42) $ (277)
========= ========= ========= =========
Limited partners $ 11,335 $ 3,374 $ (4,145) $ (27,448)
========= ========= ========= =========
Net income (loss) per
limited partnership
interest $ 1.12 $ .33 $ (.41) $ (2.71)
========= ========= ========= =========
Distributions per
limited partnership
interest $ 5.68 $ 7.67 $ 13.19 $ 13.74
========= ========= ========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these statements.
3
<PAGE> 4
PARKER & PARSLEY 86-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF PARTNERS' CAPITAL
(Unaudited)
Managing
general Limited
partner partners Total
----------- ----------- -----------
Balance at January 1, 1994 $ 29,203 $ 3,021,366 $ 3,050,569
Distributions (1,406) (139,180) (140,586)
Net loss (277) (27,448) (27,725)
---------- ---------- ----------
Balance at June 30, 1994 $ 27,520 $ 2,854,738 $ 2,882,258
========== ========== ==========
Balance at January 1, 1995 $ 26,129 $ 2,717,034 $ 2,743,163
Distributions (1,352) (133,590) (134,942)
Net loss (42) (4,145) (4,187)
---------- ---------- ----------
Balance at June 30, 1995 $ 24,735 $ 2,579,299 $ 2,604,034
========== ========== ==========
The financial information included herein has been prepared
by management without audit by independent public accountants.
The accompanying notes are an integral part of these statements.
4
<PAGE> 5
PARKER & PARSLEY 86-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended
June 30,
1995 1994
---------- ----------
Cash flows from operating activities:
Net loss $ (4,187) $ (27,725)
Adjustments to reconcile net loss
to net cash provided by operating
activities:
Depletion 155,326 158,337
Salvage income from equipment disposals (6,734) (223)
Changes in assets and liabilities:
(Increase) decrease in accounts
receivable 3,466 (14,175)
Increase in accounts payable 36,886 8,904
--------- ---------
Net cash provided by operating
activities 184,757 125,118
Cash flows from investing activities:
Additions to oil and gas properties (21,937) (2,832)
Proceeds from salvage income on
equipment disposals 6,734 223
--------- ---------
Net cash used in investing
activities (15,203) (2,609)
Cash flows from financing activities:
Cash distributions to partners (134,942) (140,586)
--------- ---------
Net increase (decrease) in cash and cash
equivalents 34,612 (18,077)
Cash and cash equivalents at beginning
of period 25,005 45,214
--------- ---------
Cash and cash equivalents at end of period $ 59,617 $ 27,137
========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these statements.
5
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PARKER & PARSLEY 86-A, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 1995
(Unaudited)
NOTE 1.
In the opinion of management, the unaudited financial statements as of
June 30, 1995 of Parker & Parsley 86-A, Ltd. (the "Registrant") include
all adjustments and accruals consisting only of normal recurring accrual
adjustments which are necessary for a fair presentation of the results
for the interim period. However, the results of operations for the six
months ended June 30, 1995 are not necessarily indicative of the results
for the full year ending December 31, 1995.
The financial statements should be read in conjunction with the
financial statements and the notes thereto contained in the Registrant's
Report on Form 10-K for the year ended December 31, 1994, as filed with
the Securities and Exchange Commission, a copy of which is available
upon request by writing to Steven L. Beal, Senior Vice President, 303
West Wall, Suite 101, Midland, Texas 79701.
NOTE 2.
On May 25, 1993, a final settlement agreement was negotiated, drafted
and finally executed, ending litigation which had begun on September 5,
1989, when the Registrant filed suit along with other parties against
Dresser Industries, Inc.; Titan Services, Inc.; BJ-Titan Services
Company; BJ-Hughes Holding Company; Hughes Tool Company; Baker Hughes
Production Tools, Inc.; and Baker Hughes Incorporated alleging that the
defendants had intentionally failed to provide the materials and
services ordered and paid for by the Registrant and other parties in
connection with the fracturing and acidizing of 523 wells, and then
fraudulently concealed the shorting practice from the managing general
partner, Parker & Parsley Development L.P. ("PPDLP") (see Item 2). The
May 25, 1993 settlement agreement called for a payment of $115 million
in cash by the defendants. The managing general partner received the
funds, deducted incurred legal expenses, accrued interest, determined
the general partner's portion of the funds and calculated any
6
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inter-partnership allocations. A distribution of $91,000,000 was made
to the working interest owners, including the Registrant, on July 30,
1993. The limited partners received their distribution of $2,882,376,
or $284.51 per limited partnership interest, in September 1993.
On May 3, 1993, Jack N. Price, the attorney who represented Gary G.
"Zeke" Lancaster in the Federal Court lawsuit, filed suit in State Court
in Beaumont against all of the plaintiff partnerships, including the
Registrant and others, alleging his entitlement to 12% of the settlement
proceeds. Price's lawsuit claim for approximately $13.8 million is
predicated on a purported contract entered into with Southmark
Corporation in August 1988, in which he allegedly binds the Registrant
and the other defendants, as well as Southmark. Although PPDLP believes
the lawsuit is without merit and intends to vigorously defend it, PPDLP
is holding in reserve approximately 12.5% of the total settlement
pending final resolution of the litigation by the court. Trial is
currently scheduled for April 1996 and, assuming a successful defense,
upon payment of the costs associated with the litigation, a second
distribution will be made consisting of the balance of the settlement
funds, including any accrued interest.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The Registrant was formed July 23, 1986. The managing general partner
of the Registrant at December 31, 1994 was Parker & Parsley Development
Company ("PPDC"). On January 1,1995, PPDLP, a Texas limited
partnership, became the sole managing general partner of the Registrant,
by acquiring the rights and assuming the obligations of PPDC. PPDC was
merged into PPDLP on January 1, 1995. PPDLP acquired PPDC's rights and
obligations as managing general partner of the Registrant in connection
with the merger of PPDC, P&P Producing, Inc. and Spraberry Development
Corporation into MidPar L.P., which survived the merger with a change of
name to PPDLP. The sole general partner of PPDLP is Parker & Parsley
Petroleum USA, Inc. PPDLP has the power and authority to manage,
control and administer all Registrant affairs. The limited partners
contributed $10,131,000 representing 10,131 interests ($1,000 per
interest) sold to a total of 952 limited partners.
Since its formation, the Registrant invested $8,418,343 in various
prospects that were drilled in Texas. At June 30, 1995, the Registrant
had 30 producing oil and gas wells, one well was abandoned in 1992 and
one well was sold during 1990.
7
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Results of Operations
Six months ended June 30, 1995 compared with six months ended
June 30, 1994
Revenues:
The Registrant's oil and gas revenues increased to $414,138 from
$386,951 for the six months ended June 30, 1995 and 1994, respectively,
an increase of 7%. The increase in revenues resulted from a 10%
increase in mcf of gas produced and sold and an increase in the average
price received per barrel of oil, offset by an 8% decrease in barrels of
oil produced and sold and a decline in the average price received per
mcf of gas. For the six months ended June 30, 1995, 16,577 barrels of
oil were sold compared to 18,048 for the same period in 1994, a decrease
of 1,471 barrels. For the six months ended June 30, 1995, 75,946 mcf of
gas were sold compared to 69,288 for the same period in 1994, an
increase of 6,658 mcf. The decrease in oil production volumes was
primarily due to the decline characteristics of the Registrant's oil and
gas properties. The increase in gas production volumes was attributable
to operational changes on several wells. Management expects a certain
amount of decline in production in the future until the Registrant's
economically recoverable reserves are fully depleted.
The average price received per barrel of oil increased $2.62 from $14.98
for the six months ended June 30, 1994 to $17.60 for the same period in
1995 while the average price received per mcf of gas decreased from
$1.68 during the six months ended June 30, 1994 to $1.61 in 1995. The
market price for oil and gas has been extremely volatile in the past
decade, and management expects a certain amount of volatility to
continue in the foreseeable future. The Registrant may therefore sell
its future oil and gas production at average prices lower or higher than
that received during the six months ended June 30, 1995.
Costs and Expenses:
Total costs and expenses increased to $426,677 for the six months ended
June 30, 1995 as compared to $415,660 for the same period in 1994, an
increase of $11,017, or 3%. This increase was due to an increase in
production costs and general and administrative expenses ("G&A"), offset
by a decrease in depletion.
8
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Production costs were $258,927 for the six months ended June 30, 1995
and $245,714 for the same period in 1994 resulting in a $13,213
increase, or 5%. This increase was primarily the result of an increase
in well repair and maintenance costs incurred in an effort to stimulate
well production.
G&A's components are independent accounting and engineering fees,
computer services, postage and managing general partner personnel costs.
During this period, G&A increased, in aggregate, 7% from $11,609 for the
six months ended June 30, 1994 to $12,424 for the same period in 1995.
The Partnership agreement limits G&A to 3% of gross oil and gas
revenues.
Depletion was $155,326 for the six months ended June 30, 1995 compared
to $158,337 for the same period in 1994. This represented a decrease in
depletion of $3,011, or 2%. Depletion was calculated on a
property-by-property basis utilizing the unit-of-production method based
upon the dominant mineral produced, generally oil, and using oil prices
in effect at the end of the respective quarter. Oil production decreased
1,471 barrels for the six months ended June 30, 1995 from the same period
in 1994. Depletion expense for the six months ended June 30, 1995 was
calculated based on reserves computed utilizing an oil price of $16.32
per barrel. Comparatively, depletion expense for the three months ended
June 30, 1994 was calculated based on reserves computed utilizing an oil
price of $18.26 per barrel while depletion expense for the three months
ended March 31, 1994 was calculated based on reserves computed utilizing
an oil price of $12.76 per barrel.
On May 25, 1993, a final settlement agreement was negotiated, drafted
and finally executed, ending litigation which had begun on September 5,
1989, when the Registrant filed suit along with other parties against
Dresser Industries, Inc.; Titan Services, Inc.; BJ-Titan Services
Company; BJ-Hughes Holding Company; Hughes Tool Company; Baker Hughes
Production Tools, Inc.; and Baker Hughes Incorporated alleging that the
defendants had intentionally failed to provide the materials and
services ordered and paid for by the Registrant and other parties in
connection with the fracturing and acidizing of 523 wells, and then
fraudulently concealed the shorting practice from the managing general
partner. The May 25, 1993 settlement agreement called for a payment of
$115 million in cash by the defendants. The managing general partner
received the funds, deducted incurred legal expenses, accrued interest,
determined the general partner's portion of the funds and calculated any
inter-partnership allocations. A distribution of $91,000,000 was made
9
<PAGE> 10
to the working interest owners, including the Registrant, on July 30,
1993. The limited partners received their distribution of $2,882,376,
or $284.51 per limited partnership interest, in September 1993.
On May 3, 1993, Jack N. Price, the attorney who represented Gary G.
"Zeke" Lancaster in the Federal Court lawsuit, filed suit in State Court
in Beaumont against all of the plaintiff partnerships, including the
Registrant and others, alleging his entitlement to 12% of the settlement
proceeds. Price's lawsuit claim for approximately $13.8 million is
predicated on a purported contract entered into with Southmark
Corporation in August 1988, in which he allegedly binds the Registrant
and the other defendants, as well as Southmark. Although PPDLP believes
the lawsuit is without merit and intends to vigorously defend it, PPDLP
is holding in reserve approximately 12.5% of the total settlement
pending final resolution of the litigation by the court. Trial is
currently scheduled for April 1996 and, assuming a successful defense,
upon payment of the costs associated with the litigation, a second
distribution will be made consisting of the balance of the settlement
funds, including any accrued interest.
Three months ended June 30, 1995 compared with three months ended
June 30, 1994
Revenues:
The Registrant's oil and gas revenues increased to $205,918 from
$201,731 for the three months ended June 30, 1995 and 1994,
respectively, an increase of 2%. The increase in revenues resulted from
a 16% increase in mcf of gas produced and sold and an increase in the
average price received per barrel of oil, offset by a 9% decrease in
barrels of oil produced and sold and a decrease in the average price
received per mcf of gas. For the three months ended June 30, 1995,
7,841 barrels of oil were sold compared to 8,644 for the same period in
1994, a decrease of 803 barrels. For the three months ended June 30,
1995, 41,717 mcf of gas were sold compared to 35,852 for the same period
in 1994, an increase of 5,865 mcf. The decrease in oil production
volumes was due to the decline characteristics of the Registrant's oil
and gas properties. The increase in mcf production volumes was due to
operational changes on several wells.
The average price received per barrel of oil increased $1.39 from $16.71
for the three months ended June 30, 1994 to $18.10 for the same period
in 1995 while the average price received per mcf of gas decreased from
$1.60 during the three months ended June 30, 1994 to $1.53 in 1995.
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Costs and Expenses:
Total costs and expenses increased to $202,041 for the three months
ended June 30, 1995 as compared to $198,887 for the same period in 1994,
an increase of $3,154, or 2%. This increase was due to increases in G&A
and depletion, offset by a decline in production costs.
Production costs were $127,873 for the three months ended June 30, 1995
and $136,983 for the same period in 1994 resulting in a $9,110 decrease.
This decrease was primarily the result of a decline in well repair and
maintenance costs.
G&A's components are independent accounting and engineering fees,
computer services, postage and managing general partner personnel costs.
During this period, G&A increased, in aggregate, 2% from $6,052 for the
three months ended June 30, 1994 to $6,177 for the same period in 1995.
Depletion was $67,991 for the three months ended June 30, 1995 compared
to $55,852 for the same period in 1994. This represented an increase in
depletion of $12,139, or 22%. Depletion was calculated on a
property-by-property basis utilizing the unit-of-production method based
upon the dominant mineral produced, generally oil, and using oil prices
in effect at the end of the respective quarter. Oil production decreased
803 barrels for the three months ended June 30, 1995 from the same period
in 1994. Depletion expense for the three months ended June 30, 1995 was
calculated based on reserves computed utilizing an oil price of $16.32
per barrel. Comparatively, depletion expense for the three months ended
June 30, 1994 was calculated based on reserves computed utilizing an oil
price of $18.26 per barrel.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased to $184,757 during
the six months ended June 30, 1995, a $59,639 increase from the same
period ended June 30, 1994. This increase was due to an increase in oil
and gas sales and a decline in production costs. The increase in oil
and gas sales was due to an increase in mcf of gas produced and sold and
an increase in the average price received per barrel of oil, offset by a
decline in barrels of oil produced and sold and a decrease in the
average price received per mcf of gas. The decline in production costs
was due to decreases in well repair and maintenance costs.
11
<PAGE> 12
Net Cash Used in Investing Activities
The Registrant's principal investing activities for the six months ended
June 30, 1995 was for repair and maintenance activity on various oil and
gas properties.
The Registrant received proceeds of $6,734 during the six months ended
June 30, 1995 from the disposal of oil and gas equipment on an active
property.
Proceeds from salvage income of $223 from the sale of equipment on a
property abandoned in a prior year was received during the six months
ended June 30, 1994.
Net Cash Used in Financing Activities
Cash was sufficient for the six months ended June 30, 1995 to cover
distributions to the partners of $134,942 of which $133,590 was
distributed to the limited partners and $1,352 to the managing general
partner. For the same period ended June 30, 1994, cash was sufficient
for distributions to the partners of $140,586 of which $139,180 was
distributed to the limited partners and $1,406 to the managing general
partner.
It is expected that future net cash provided by operating activities
will be sufficient for any capital expenditures and any distributions.
As the production from the properties declines, distributions are also
expected to decrease.
Accounting Standard on Impairment of Long-Lived Assets
In March 1995, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 121 - Accounting for Impairment of
Long-lived Assets and for Long-lived Assets to Be Disposed Of ("FAS
121") regarding the impairment of long-lived assets, identifiable
intangibles and goodwill related to those assets. FAS 121 is effective
for financial statements for fiscal years beginning after December 15,
1995, although earlier adoption is encouraged. The application of FAS
121 to oil and gas companies utilizing the successful efforts method
(such as the Registrant) will require periodic determination of whether
the book value of long-lived assets exceeds the future cash flows
expected to result from the use of such assets and, if so, will require
reduction of the carrying amount of the "impaired" assets to their
estimated fair values. There is currently a great deal of uncertainty
as to how FAS 121 will apply to oil and gas companies using the
12
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successful efforts method, including uncertainty regarding the
determination of expected future cash flows from the relevant assets
and, if an impairment is determined to exist, their estimated fair
value. There is also uncertainty regarding the level at which the test
might be applied. Given this uncertainty, the Registrant is currently
unable to estimate the effect that FAS 121 will have on the Registrant's
results of operations for the period in which it is adopted.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
On May 25, 1993, a final settlement agreement was negotiated, drafted
and finally executed, ending litigation which had begun on September 5,
1989, when the Registrant filed suit along with other parties against
Dresser Industries, Inc.; Titan Services, Inc.; BJ-Titan Services
Company; BJ-Hughes Holding Company; Hughes Tool Company; Baker Hughes
Production Tools, Inc.; and Baker Hughes Incorporated alleging that the
defendants had intentionally failed to provide the materials and
services ordered and paid for by the Registrant and other parties in
connection with the fracturing and acidizing of 523 wells, and then
fraudulently concealed the shorting practice from the managing general
partner. The May 25, 1993 settlement agreement called for a payment of
$115 million in cash by the defendants. The managing general partner
received the funds, deducted incurred legal expenses, accrued interest,
determined the general partner's portion of the funds and calculated any
inter-partnership allocations. A distribution of $91,000,000 was made
to the working interest owners, including the Registrant, on July 30,
1993. The limited partners received their distribution of $2,882,376,
or $284.51 per limited partnership interest, in September 1993.
On May 3, 1993, Jack N. Price, the attorney who represented Gary G.
"Zeke" Lancaster in the Federal Court lawsuit, filed suit in State Court
in Beaumont against all of the plaintiff partnerships, including the
Registrant and others, alleging his entitlement to 12% of the settlement
proceeds. Price's lawsuit claim for approximately $13.8 million is
predicated on a purported contract entered into with Southmark
Corporation in August 1988, in which he allegedly binds the Registrant
and the other defendants, as well as Southmark. Although PPDLP believes
the lawsuit is without merit and intends to vigorously defend it, PPDLP
is holding in reserve approximately 12.5% of the total settlement
pending final resolution of the litigation by the court. Trial is
13
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currently scheduled for April 1996 and, assuming a successful defense,
upon payment of the costs associated with the litigation, a second
distribution will be made consisting of the balance of the settlement
funds, including any accrued interest.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits - none
(b) Reports on Form 8-K - none
14
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PARKER & PARSLEY 86-A, LTD.
(A Texas Limited Partnership)
S I G N A T U R E S
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.
PARKER & PARSLEY 86-A, LTD.
By: Parker & Parsley Development L.P.,
Managing General Partner
By: Parker & Parsley Petroleum USA, Inc.
("PPUSA"), General Partner
Dated: August 8, 1995 By: /s/ Steven L. Beal
---------------------------------------
Steven L. Beal, Senior Vice
President and Chief Financial
Officer of PPUSA
15
<PAGE> 16
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000789789
<NAME> 86A.FDS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 59,617
<SECURITIES> 0
<RECEIVABLES> 91,834
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 151,451
<PP&E> 8,006,799
<DEPRECIATION> 5,476,783
<TOTAL-ASSETS> 2,681,467
<CURRENT-LIABILITIES> 77,433
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 2,604,034
<TOTAL-LIABILITY-AND-EQUITY> 2,681,467
<SALES> 414,138
<TOTAL-REVENUES> 422,490
<CGS> 0
<TOTAL-COSTS> 426,677
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (4,187)
<INCOME-TAX> 0
<INCOME-CONTINUING> (4,187)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4,187)
<EPS-PRIMARY> (0.41)
<EPS-DILUTED> 0
</TABLE>
