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 period ended March 31, 1996
-------------------------------------------------------
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 number 0-15460
MCNEIL REAL ESTATE FUND XXVI, L.P.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
California 33-0168395
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
13760 Noel Road, Suite 700, LB70, Dallas, Texas, 75240
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (214) 448-5800
------------------------------
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___
<PAGE>
MCNEIL REAL ESTATE FUND XXVI, L.P.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
- ------- --------------------
BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
--------------- --------------
ASSETS
- ------
<S> <C> <C>
Real estate investments:
Land..................................................... $ 6,750,456 $ 9,189,092
Buildings and improvements............................... 53,067,677 56,695,050
-------------- -------------
59,818,133 65,884,142
Less: Accumulated depreciation and amortization......... (19,670,710) (21,255,141)
-------------- -------------
40,147,423 44,629,001
Asset held for sale......................................... 3,957,492 -
Cash and cash equivalents................................... 5,992,993 6,761,516
Cash segregated for security deposits....................... 209,484 202,396
Accounts receivable, net of allowance for doubtful
accounts of $608,220 and $596,156 at March 31,
1996 and December 31, 1995, respectively................. 1,209,595 1,096,937
Prepaid commissions......................................... 374,413 379,444
Prepaid expenses and other assets........................... 771,238 716,091
Deferred borrowing costs, net of accumulated
amortization of $147,918 and $125,641 at March 31,
1996 and December 31, 1995, respectively................. 425,139 431,838
-------------- -------------
$ 53,087,777 $ 54,217,223
============== =============
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
- ------------------------------------------
Mortgage notes payable...................................... $ 22,084,814 $ 22,144,921
Mortgage note payable - affiliate........................... - 952,538
Accounts payable and accrued expenses....................... 308,451 358,856
Accrued property taxes...................................... 264,098 59,864
Payable to affiliates - General Partner..................... 3,134,413 2,983,409
Advances from affiliates - General Partner.................. 170,408 168,330
Security deposits and deferred rental revenue............... 214,253 210,496
-------------- -------------
26,176,437 26,878,414
-------------- -------------
Partners' equity (deficit):
Limited Partners -90,000,000 Units authorized;
86,533,671 and 86,548,983 Units issued and
outstanding at March 31, 1996 and
December 31, 1995, respectively........................ 27,293,028 27,716,222
General Partner.......................................... (381,688) (377,413)
-------------- -------------
26,911,340 27,338,809
-------------- -------------
$ 53,087,777 $ 54,217,223
============== =============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
McNEIL REAL ESTATE FUND XXVI, L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------------------
1996 1995
--------------- --------------
<S> <C> <C>
Revenue:
Rental revenue ........................................... $ 2,184,549 $ 1,754,616
Interest .................................................. 59,647 16,849
-------------- -------------
Total revenue............................................ 2,244,196 1,771,465
------------- -------------
Expenses:
Interest................................................... 444,307 182,875
Interest - affiliates...................................... 13,476 29,364
Depreciation and amortization.............................. 734,334 576,791
Property taxes............................................. 204,234 195,889
Personnel costs............................................ 217,864 224,147
Utilities.................................................. 284,339 281,113
Repairs and maintenance.................................... 266,679 222,761
Property management fees -affiliates....................... 122,558 93,260
Other property operating expenses.......................... 156,470 113,154
General and administrative................................. 38,843 18,278
General and administrative - affiliates.................... 188,561 195,962
Loss on demolition and removal of assets................... - 1,247,940
------------- -------------
Total expenses........................................... 2,671,665 3,381,534
------------- -------------
Net loss....................................................... $ (427,469) $ (1,610,069)
============= =============
Net loss allocable to limited partners......................... $ (423,194) $ (1,593,968)
Net loss allocable to General Partner.......................... (4,275) (16,101)
------------- --------------
Net loss....................................................... $ (427,469) $ (1,610,069)
============= =============
Net loss per thousand limited partnership units:............... $ (4.89) $ (18.42)
============= =============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
McNEIL REAL ESTATE FUND XXVI, L.P.
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
(Unaudited)
For the Three Months Ended March 31, 1996 and 1995
<TABLE>
<CAPTION>
Total
Partners'
General Limited Equity
Partner Partners (Deficit)
--------------- --------------- ----------------
<S> <C> <C> <C>
Balance at December 31, 1994.............. $ (326,783) $ 32,728,638 $ 32,401,855
Net loss.................................. (16,101) (1,593,968) (1,610,069)
-------------- ------------- -------------
Balance at March 31, 1995................. $ (342,884) $ 31,134,670 $ 30,791,786
============= ============= ==============
Balance at December 31, 1995.............. $ (377,413) $ 27,716,222 $ 27,338,809
Net loss.................................. (4,275) (423,194) (427,469)
------------- ------------- -------------
Balance at March 31, 1996................. $ (381,688) $ 27,293,028 $ 26,911,340
============= ============== ==============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
McNEIL REAL ESTATE FUND XXVI, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
Increase (Decrease) in Cash and Cash Equivalents
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-----------------------------------------
1996 1995
----------------- ----------------
<S> <C> <C>
Cash flows from operating activities:
Cash received from tenants........................ $ 2,052,350 $ 1,592,508
Cash paid to suppliers............................ (1,091,378) (821,650)
Cash paid to affiliates........................... (160,115) (89,615)
Interest received................................. 59,647 16,849
Interest paid..................................... (313,090) (159,822)
Interest paid to affiliates....................... (11,398) (26,201)
Property taxes paid and escrowed.................. (66,068) (69,396)
--------------- --------------
Net cash provided by operating activities............ 469,948 442,673
--------------- --------------
Net cash used in investing activities:
Additions to real estate investments.............. (210,248) (3,605,897)
--------------- --------------
Cash flows from financing activities:
Principal payments on mortgage notes payable...... (60,107) (36,591)
Proceeds from mortgage notes financing............ - 3,372,287
Retirement of mortgage note - affiliate........... (952,538) -
Deferred borrowing costs paid..................... (15,578) -
--------------- --------------
Net cash provided by (used in) financing
activities........................................ (1,028,223) 3,335,696
--------------- --------------
Net increase (decrease) in cash and cash
equivalents....................................... (768,523) 172,472
Cash and cash equivalents at beginning of
period............................................ 6,761,516 1,473,850
--------------- --------------
Cash and cash equivalents at end of period........... $ 5,992,993 $ 1,646,322
=============== ==============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
McNEIL REAL ESTATE FUND XXVI, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
Reconciliation of Net Loss to Net Cash Provided by
Operating Activities
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-----------------------------------------
1996 1995
----------------- ----------------
<S> <C> <C>
Net loss............................................. $ (427,469) $ (1,610,069)
--------------- --------------
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization..................... 734,334 576,791
Amortization of deferred borrowing costs.......... 22,277 39,270
Allowance for doubtful accounts................... 12,064 (2,344)
Interest added to advances from affiliates -
General Partner................................. 2,078 3,163
Loss on demolition and removal of assets.......... - 1,247,940
Changes in assets and liabilities:
Cash segregated for security deposits........... (7,088) 19,775
Accounts receivable............................. (124,722) (165,691)
Prepaid commissions and marketing costs......... 5,031 3,612
Prepaid expenses and other assets............... (55,147) 15,292
Accounts payable and accrued expenses........... (50,405) 2,241
Accrued property taxes.......................... 204,234 126,626
Payable to affiliates - General Partner......... 151,004 199,607
Security deposits and deferred rental
revenue....................................... 3,757 (13,540)
--------------- --------------
Total adjustments............................. 897,417 2,052,742
--------------- --------------
Net cash provided by operating activities............ $ 469,948 $ 442,673
=============== ==============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL REAL ESTATE FUND XXVI, L.P.
Notes to Financial Statements
March 31, 1996
(Unaudited)
NOTE 1.
- -------
McNeil Real Estate Partners XXVI, L.P., (the "Partnership"), formerly known as
Southmark Equity Partners III, Ltd. was organized on March 4, 1985 as a limited
partnership under the provisions of the California Revised Limited Partnership
Act to acquire and operate residential and commercial properties. The General
Partner of the Partnership is McNeil Partners, L.P. (the "General Partner"), a
Delaware limited partnership, an affiliate of Robert A. McNeil ("McNeil"). The
principal place of business for the Partnership and the General Partner is 13760
Noel Road, Suite 700, LB70, Dallas, Texas 75240.
In the opinion of management, the financial statements reflect all adjustments
necessary for a fair presentation of the Partnership's financial position and
results of operations. All adjustments were of a normal recurring nature.
However, the results of operations for the three months ended March 31, 1996 are
not necessarily indicative of the results to be expected for the year ending
December 31, 1996.
NOTE 2.
- -------
The financial statements should be read in conjunction with the financial
statements contained in the Partnership's Report on Form 10-K for the year ended
December 31, 1995, and the notes thereto, as filed with the Securities and
Exchange Commission, which is available upon request by writing to McNeil Real
Estate Fund XXVI, L.P. c/o McNeil Real Estate Management, Inc., Investor
Services, 13760 Noel Road, Suite 700, LB70, Dallas, Texas 75240.
NOTE 3.
- -------
Certain reclassifications have been made to prior period amounts to conform to
the current presentation.
NOTE 4.
- -------
The Partnership pays property management fees equal to 5% of gross rental
receipts for its residential property and 6% of gross rental receipts for its
commercial properties to McNeil Real Estate Management, Inc., ("McREMI"), an
affiliate of the General Partner, for providing property management services for
the Partnership's residential and commercial properties and leasing services for
its residential property. McREMI may also choose to provide leasing services for
the Partnership's commercial properties, in which case McREMI will receive
property management fees from such commercial properties equal to 3% of the
property's gross rental receipts plus leasing commissions based on the
prevailing market rate for such services where the property is located.
<PAGE>
The Partnership reimburses McREMI for its costs, including overhead, of
administering the Partnership's affairs.
The Partnership is incurring an asset management fee which is payable to the
General Partner. Through 1999, the Asset Management Fee is calculated as 1% of
the Partnership's tangible asset value. Tangible asset value is determined by
using the greater of (i) an amount calculated by applying a capitalization rate
of 9% to the annualized net operating income of each property or (ii) a value of
$10,000 per apartment unit for residential property and $50 per gross square
foot for commercial property to arrive at the property tangible asset value. The
property tangible asset value is then added to the book value of all other
assets excluding intangible items. The fee percentage decreases subsequent to
1999. Total accrued but unpaid asset management fees of $2,316,681 were
outstanding at March 31, 1996.
The General Partner has, in its discretion, advanced funds to enable the
Partnership to meet its working capital requirements. These advances, which are
unsecured and due on demand, accrue interest at a rate equal to the prime
lending rate plus 1%
The advances from affiliates at March 31, 1996 and December 31, 1994 consist of
the following:
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
---------------- ---------------
<S> <C> <C>
Advances from General Partner........................ $ 130,518 $ 130,518
Accrued interest payable............................. 39,890 37,812
--------------- --------------
$ 170,408 $ 168,330
=============== ==============
</TABLE>
In March 1993, the Partnership obtained a loan from McNeil Real Estate Fund
XXVII, L.P., an affiliate of the General Partner, which allows the Partnership
to borrow funds totaling $1,536,000. Of this amount available, $952,538 was
borrowed at December 31, 1995. The note was secured by Continental Plaza and
required monthly interest-only payments equal to the prime lending rate of Bank
of America plus 2 1/2% with the principal balance due March 1, 1996. On January
8, 1996 the Partnership repaid the mortgage loan.
<PAGE>
Compensation and reimbursements paid to or accrued for the benefit of the
General Partner and its affiliates are as follows:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------------------------
1996 1995
---------------- ---------------
<S> <C> <C>
Property management fees - affiliates................ $ 122,558 $ 93,260
Charged to interest - affiliates:
Interest on advances from affiliates - General
Partner......................................... 2,078 3,163
Interest on mortgage note payable - affiliate..... 11,398 26,201
Charged to general and administrative affiliates:
Partnership administration........................ 55,174 74,530
Asset management fee.............................. 133,387 121,432
--------------- --------------
$ 324,595 $ 318,586
=============== ==============
</TABLE>
The total payable to affiliates - General Partner at March 31, 1996 and December
31, 1995 consisted primarily of unpaid asset management fees, property
management fees and partnership general and administrative expenses and are due
and payable from current operations.
NOTE 5.
- -------
In 1996, the Partnership adopted the Financial Accounting Standards Board's
Statement of Financial Accounting Standards No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of."
This statement requires the cessation of depreciation on assets held for sale.
Since Edison Ford is currently classified as an asset held for sale, no
depreciation will be taken effective April 1, 1996.
NOTE 6.
- -------
The Partnership recognized a loss on the Northway Mall renovation of $1,247,940
in 1995. This loss is due to the demolition or removal of assets that were
previously capitalized.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
- ------- ---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
FINANCIAL CONDITION
- -------------------
The Partnership was formed to acquire, operate and ultimately dispose of a
portfolio of income-producing properties. At March 31, 1996, the Partnership
owned one apartment properties, two office buildings and two shopping centers.
Three of the Partnership's properties are subject to mortgage notes.
<PAGE>
RESULTS OF OPERATIONS
Revenue:
Total Partnership revenues increased $472,731 or 27% for the three months ended
March 31, 1996, as compared to the same period last year. Rental revenue
increased $429,933 or 25% while interest income also increased by $42,798.
Rental revenue for the three months ended March 31, 1996 was $2,244,196 as
compared to $1,771,465 for the same period. This increase of $429,933 is
primarily due to the increased occupancy rate at Northway Mall as a result of
the recent capital improvements program.
Interest income increased $42,798 for the three months ended March 31, 1996 as
compared to the same period of 1995. The increase is due to the higher cash
balance maintained as a result of the December 1995 Northway Mall mortgage
refinancing.
Expenses:
Total expenses decreased $709,869 or 21% for the three months ended March 31,
1996 as compared to the same period of 1995. During 1995, the Partnership
recognized a loss on the Northway Mall renovation of $1,247,940 for the
demolition and removal of assets previously capitalized.
Interest expense increased $261,432 for the three months ended March 31, 1996 as
compared to the same period of 1995 due to the December 1995 mortgage
refinancing at Northway Mall.
Interest expense - affiliates decreased $15,888 for the three months ended March
31, 1996 as compared to the same period of 1995 due to the repayment of the loan
from McNeil Real Estate Fund XXVII, L.P. in January 1996.
Depreciation and amortization increased $157,543 for the three months ended
March 31, 1996 as compared to the same period of 1995 primarily due to the
renovation at Northway Mall along with tenant improvements at Continental Plaza
and Westwood Center.
Repairs and maintenance increased $43,918 for the three months ended March 31,
1996 as compared to the same period of 1995. The first quarter increase is
primarily due to an increase in service and repairs and maintenance expenses at
Northway Mall that is attributable to the increased occupancy.
Property management fees - affiliates increased $29,298 for the three months
ended March 31, 1996 as compared to the same period of 1995. The increased
occupancy at Northway Mall led to an increase in tenant receipts on which the
management fee is based.
Other property operating expenses increased $43,316 for the three months ended
March 31, 1996 as compared to the same period of 1995. The increase is primarily
due to Northway Mall's increases in bad debt, marketing and leasing.
General and administrative expenses increased $20,565 for the three months ended
March 31, 1996 as compared to the same period of 1995 due to increased
professional fees.
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Cash flow from operations was $469,948 for the three months ended March 31, 1996
as compared to $442,673 for the same period of 1995. The change in cash flow
from operations is primarily due to increases in tenant receipts, cash paid to
suppliers, cash paid to affiliates, interest received and interest paid. The
increased occupancy at Northway Mall led to an increase in tenant receipts. The
increase in cash paid to suppliers is primarily due to Northway Mall's
renovations. The increase in cash paid to affiliates is primarily due to
increased property management fees, asset management fees, and partnership
general and administrative expenses as a result of Northway Mall's increased
occupancy. This increase in cash received is due to interest received on a
higher cash balance as a result of Northway Mall's mortgage refinancing. The
increase in interest paid is due to the Northway Mall's new mortgage loan.
Additions to real estate investments totaled $210,248 for the three months ended
March 31, 1996 as compared to $3,605,897 for the same period of 1995. Proceeds
from mortgage notes financing totaled $3,372,287 for the three months ended
March 31, 1995. The Partnership has undergone a major capital improvement
program at Northway Mall in 1995 which greatly enhanced the property's
performance. The funding for this program came from a construction mortgage loan
encumbering Northway Mall, as well as mortgage loans previously obtained on
Westwood Center and Continental Plaza. Permanent financing was obtained in
December 1995.
Short-term liquidity:
The General Partner has established a revolving credit facility not to exceed
$5,000,000 in the aggregate which is available on a "first-come, first-served"
basis to the Partnership and other affiliated partnerships, if certain
conditions are met. Borrowing under the facility may be used to fund deferred
maintenance, refinancing obligations and working capital needs. There is no
assurance that the Partnership will receive any funds under the facility because
no amounts have been reserved for any particular partnership. As of March 31,
1996, $2,662,819 remained available for borrowing under the facility; however,
additional funds could be available as other partnerships repay existing
borrowings. This commitment will terminate on March 30, 1997.
Additionally, the General Partner has, in its discretion, advanced funds to the
Partnership in addition to the revolving credit facility. The General Partner is
not obligated to advance funds to the Partnership and there is no assurance that
the Partnership will receive additional funds.
The present cash balance plus cash to be provided by operating activities is
considered adequate to meet the Partnership's needs for debt service, normal
amounts of repairs and maintenance and capital improvements to preserve and
enhance the value of the properties. The Partnership has budgeted $1,941,000 for
necessary capital improvements for all properties in 1996.
Long-term liquidity:
While the outlook for maintenance of adequate levels of liquidity is favorable,
should operations deteriorate and present cash resources be insufficient for
current needs, the Partnership would require other sources of working capital.
No such sources have been identified. The Partnership has no established lines
of credit from outside sources. Other possible actions to resolve cash
deficiencies include refinancings, deferral of capital expenditures on
<PAGE>
Partnership properties except where improvements are expected to increase the
competitiveness and marketability of the properties, arranging financing from
affiliates, or the ultimate sale of the properties. Sales and refinancings are
possibilities only and there are at present no plans for any such sales, other
than Edison Ford, which was placed on the market for sale effective April 1,
1996.
The mortgage notes payable on Amargosa Creek Apartments and Westwood Center
mature in 1998 and the Partnership expects to refinance these notes at that
time.
Distributions:
To maintain adequate cash balances of the Partnership, distributions to the
limited partners were suspended in 1991. Distributions to the limited partners
will remain suspended for the foreseeable future. The General Partner will
continue to monitor the cash reserves and working capital needs of the
Partnership to determine when cash flows will support distributions to the
limited partners.
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- ------- --------------------------------
(a) Exhibits.
Exhibit
Number Description
------- -----------
4. Amended and Restated Limited Partnership
Agreement dated March 30, 1992. (Incor-
porated by reference to Current Report of
the Registrant on Form 8-K dated March 30,
1992, as filed on April 10, 1992).
4.1 Amendment No. 1 to the Amended and Restated
Limited Partnership Agreement of McNeil
Real Estate Fund XXVI, L.P. dated June 1995.
11. Statement regarding computation of Net Loss
per Thousand Limited Partnership Units: Net
loss per thousand limited partnership units
is computed by dividing net loss allocated
to the limited partners by the weighted
average number of limited partnership units
outstanding expressed in thousands. Per unit
information has been computed based on
86,534 and 86,549 limited partnership units
(in thousands) outstanding in 1996 and 1995,
respectively.
27. Financial Data Schedule for the quarter
ended March 31, 1996.
(b) Reports on Form 8-K. There were no reports on Form 8-K filed during
the quarter ended March 31, 1996.
<PAGE>
MCNEIL REAL ESTATE FUND XXVI, L.P.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized:
McNEIL REAL ESTATE FUND XXVI, L.P.
By: McNeil Partners, L.P., General Partner
By: McNeil Investors, Inc., General Partner
May 14, 1996 By: /s/ Donald K. Reed
- ------------------- -----------------------------------------
Date Donald K. Reed
President and Chief Executive Officer
May 14, 1996 By: /s/ Ron K. Taylor
- ------------------- -----------------------------------------
Date Ron K. Taylor
Acting Chief Financial Officer of
McNeil Investors, Inc.
May 14, 1996 By: /s/ Carol A. Fahs
- ------------------- -----------------------------------------
Date Carol A. Fahs
Chief Accounting Officer of McNeil
Real Estate Management, Inc.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 5,992,993
<SECURITIES> 0
<RECEIVABLES> 1,817,815
<ALLOWANCES> (608,220)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 59,818,133
<DEPRECIATION> (19,670,710)
<TOTAL-ASSETS> 53,087,777
<CURRENT-LIABILITIES> 0
<BONDS> 22,084,814
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 53,087,777
<SALES> 2,184,549
<TOTAL-REVENUES> 2,244,196
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2,213,882
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 457,783
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> (427,469)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (427,469)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
