<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
Quarterly Report Under Section 13
or 15 (d) of the Securities
Exchange Act of 1934
For the Quarter Ended
June 30, 1997 Commission File Number 0-16764
- --------------------- -------------------------------
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
----------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 36-3535958
- --------------------- ---------------------------
State or other IRS Employer Identification
jurisdiction of Number
incorporation or
organization
1300 E. Woodfield Road, Suite 312 Schaumburg, Illinois 60173
- --------------------------------- --------------------------
Address of principal City, State, Zip Code
executive offices
Registrant's telephone number: (847) 240-6200
--------------------------
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.
(1) Yes x No
--- ---
(2) Yes x No
--- ---
<PAGE> 2
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 1997
PART I - FINANCIAL INFORMATION
Item 1.
Index to Financial Statements
Balance Sheets
June 30, 1997 (unaudited) 3
December 31, 1996 4
Statements of Revenue and Expenses (unaudited)
For the three months ended June 30, 1997 5
For the three months ended June 30, 1996 6
For the six months ended June 30, 1997 7
For the six months ended June 30, 1996 8
Statements of Changes in Partners' Equity
For the six months ended June 30, 1997 (unaudited) 9
Statements of Cash Flows (unaudited)
For the six months ended June 30, 1997 10
For the six months ended June 30, 1996 11
Notes to Financial Statements (unaudited) 12
Item 2.
Management's Discussion and Analysis of
Financial Condition and Results of Operations 13 - 15
PART II - OTHER INFORMATION
Items 1-6. 16
2
<PAGE> 3
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
BALANCE SHEETS
June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ---------- ---------
<S> <C> <C> <C>
ASSETS
Cash and cash equivalents $ 995,325 $2,009,989 $3,005,314
Net investment in direct
financing leases - - -
Investment in foreclosed
properties, net 736,065 1,188,791 1,924,856
Diverted and other assets, net 140,676 227,201 367,877
Datronic assets, net - - -
---------- ---------- ----------
$1,872,066 $3,425,981 $5,298,047
========== ========== ==========
LIABILITIES AND PARTNERS' EQUITY
Accounts payable and
accrued expenses $ 65,422 $ 111,190 $ 176,612
Lessee rental deposits 30,716 50,665 81,381
---------- ---------- ----------
Total liabilities 96,138 161,855 257,993
Total partners' equity 1,775,928 3,264,126 5,040,054
---------- ---------- ----------
$1,872,066 $3,425,981 $5,298,047
========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 4
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
BALANCE SHEETS
December 31, 1996
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ---------- ---------
<S> <C> <C> <C>
ASSETS
Cash and cash equivalents $1,065,965 $2,093,544 $3,159,509
Due from management company 12,826 21,678 34,504
Net investment in direct
financing leases 2,520 38,959 41,479
Investment in foreclosed
properties, net 740,883 1,196,573 1,937,456
Diverted and other assets, net 140,676 227,201 367,877
Datronic assets, net - - -
---------- ---------- ----------
$1,962,870 $3,577,955 $5,540,825
========== ========== ==========
LIABILITIES AND PARTNERS' EQUITY
Accounts payable and
accrued expenses $ 104,052 $ 174,295 $ 278,347
Lessee rental deposits 52,777 96,042 148,819
---------- ---------- ----------
Total liabilities 156,829 270,337 427,166
Total partners' equity 1,806,041 3,307,618 5,113,659
---------- ---------- ----------
$1,962,870 $3,577,955 $5,540,825
========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 5
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
STATEMENTS OF REVENUE AND EXPENSES
For the three months ended June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
-------- -------- -----
<S> <C> <C> <C>
Revenue:
Lease income $ 1,051 $ 4,190 $ 5,241
Interest income 12,687 23,117 35,804
Rental income 35,848 57,896 93,744
-------- --------- ---------
49,586 85,203 134,789
-------- --------- ---------
Expenses:
General Partner's
expense reimbursement 67,373 111,326 178,699
Professional fees 35,825 57,835 93,660
Other operating expenses 1,456 2,412 3,868
Credit for lease losses (13,437) (24,630) (38,067)
-------- --------- ---------
91,217 146,943 238,160
-------- --------- ---------
Net loss $(41,631) $ (61,740) $(103,371)
======== ========= =========
Net loss -
General Partner $ (416) $ (617) $ (1,033)
======== ========= =========
Net loss -
Limited Partners $(41,215) $ (61,123) $(102,338)
======== ========= =========
Net loss per limited
partnership unit $(1.08) $ (.99)
====== ======
Weighted average number
of limited partnership
units outstanding 38,197 61,696
====== ======
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 6
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
STATEMENTS OF REVENUE AND EXPENSES
For the three months ended June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ---------- ---------
<S> <C> <C> <C>
Revenue:
Lease income $ 5,450 $ 15,001 $ 20,451
Interest income 22,933 37,057 59,990
Rental income 33,217 53,647 86,864
-------- --------- ---------
61,600 105,705 167,305
-------- --------- ---------
Expenses:
Management fees-New Era 70,428 116,834 187,262
General Partner's
expense reimbursement 9,909 16,003 25,912
Professional fees 24,849 40,132 64,981
Other operating expenses 1,651 4,087 5,738
Credit for lease losses (65,008) (134,992) (200,000)
-------- --------- ---------
41,829 42,064 83,893
-------- --------- ---------
Net earnings $ 19,771 $ 63,641 $ 83,412
======== ========= =========
Net earnings -
General Partner $ 198 $ 636 $ 834
======== ========= =========
Net earnings -
Limited Partners $ 19,573 $ 63,005 $ 82,578
======== ========= =========
Net earnings per limited
partnership unit $ .51 $ 1.02
====== ======
Weighted average number
of limited partnership
units outstanding 38,197 61,696
====== ======
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 7
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
STATEMENTS OF REVENUE AND EXPENSES
For the six months ended June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
-------- -------- ---------
<S> <C> <C> <C>
Revenue:
Lease income $ 3,022 $ 10,139 $ 13,161
Interest income 25,510 44,772 70,282
Rental income 75,501 121,939 197,440
--------- --------- ---------
104,033 176,850 280,883
--------- --------- ---------
Expenses:
General Partner's
expense reimbursement 131,284 217,635 348,919
Professional fees 59,870 97,371 157,241
Other operating expenses 6,727 11,200 17,927
Credit for lease losses (63,735) (105,864) (169,599)
--------- --------- ---------
134,146 220,342 354,488
--------- --------- ---------
Net loss $ (30,113) $ (43,492) $ (73,605)
========= ========= =========
Net loss -
General Partner $ (301) $ (435) $ (736)
========= ========= =========
Net loss -
Limited Partners $ (29,812) $ (43,057) $ (72,869)
========= ========= =========
Net loss per
limited partnership unit $ (.78) $ (.70)
====== ======
Weighted average number
of limited partnership
units outstanding 38,197 61,696
====== ======
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 8
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
STATEMENTS OF REVENUE AND EXPENSES
For the six months ended June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
-------- -------- -----
<S> <C> <C> <C>
Revenue:
Lease income $ 14,219 $ 34,763 $ 48,982
Interest income 38,822 62,735 101,557
Rental income 64,650 104,414 169,064
--------- --------- ---------
117,691 201,912 319,603
--------- --------- ---------
Expenses:
Management fees-New Era 140,687 234,009 374,696
General Partner's
expense reimbursement 35,678 57,622 93,300
Professional fees 62,974 101,984 164,958
Other operating expenses 8,875 17,107 25,982
Credit for lease losses (122,368) (227,632) (350,000)
--------- --------- ---------
125,846 183,090 308,936
--------- --------- ---------
Net earnings (loss) $ (8,155) $ 18,822 $ 10,667
========= ========= =========
Net earnings (loss) -
General Partner $ (82) $ 188 $ 106
========= ========= =========
Net earnings (loss) -
Limited Partners $ (8,073) $ 18,634 $ 10,561
========= ========= =========
Net earnings (loss) per
limited partnership unit $ (.21) $ .30
====== ======
Weighted average number
of limited partnership
units outstanding 38,197 61,696
====== ======
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 9
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
STATEMENT OF CHANGES IN PARTNERS' EQUITY
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
General Limited Limited Total
Partner's Partners' Partners' Partners'
Equity Equity Equity Equity
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Balance, December 31, 1996 $(121,032)* $1,848,158 $3,386,533 $5,113,659
Net loss (736) (29,812) (43,057) (73,605)
Allocation of General
Partner's equity 121,768 (42,418) (79,350) -0-
--------- ---------- ---------- ---------
Balance, June 30, 1997 $ -0- $1,775,928 $3,264,126 $5,040,054
========= ========== ========== ==========
</TABLE>
* Balance as previously reported was $0 due to allocation of $42,117 and
$78,915 to Liquidating and Continuing Limited Partners' Equity,
respectively.
See accompanying notes to financial statements.
9
<PAGE> 10
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
STATEMENTS OF CASH FLOWS
For the six months ended June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ---------- ---------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $ (30,113) $ (43,492) $ (73,605)
Adjustments to reconcile net loss to
net cash used in operating activities:
Credit for lease losses (63,735) (105,864) (169,599)
Changes in assets and liabilities:
Accounts payable and accrued expenses (38,630) (63,105) (101,735)
Lessee rental deposits (22,061) (45,377) (67,438)
Due from management company 12,826 21,678 34,504
---------- ---------- ----------
(141,713) (236,160) (377,873)
---------- ---------- ----------
Cash flows from investing activities:
Principal collections on leases 66,255 144,823 211,078
Investment in foreclosed properties 4,818 7,782 12,600
---------- ---------- ----------
71,073 152,605 223,678
---------- ---------- ----------
Net decrease in cash and cash equivalents (70,640) (83,555) (154,195)
Cash and cash equivalents:
Beginning of year 1,065,965 2,093,544 3,159,509
---------- ---------- ----------
End of second quarter $ 995,325 $2,009,989 $3,005,314
========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 11
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
STATEMENTS OF CASH FLOWS
For the six months ended June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ---------- ---------
<S> <C> <C> <C>
Cash flows from operating activities:
Net earnings (loss) $ (8,155) $ 18,822 $ 10,667
Adjustments to reconcile net earnings
(loss) to net cash used in operating
activities:
Credit for lease losses (122,368) (227,632) (350,000)
Changes in assets and liabilities:
Accounts payable and accrued
expenses (47,222) (71,408) (118,630)
Lessee rental deposits (2,801) (6,110) (8,911)
Due to management company 3 28 31
---------- ---------- ----------
(180,543) (286,300) (466,843)
---------- ---------- ----------
Cash flows from investing activities:
Principal collections on leases 198,894 444,142 643,036
Release of restricted cash 43,130 69,657 112,787
Investment in foreclosed properties 1,502 2,428 3,930
---------- ---------- ----------
243,526 516,227 759,753
---------- ---------- ----------
Cash flows from financing activities:
Distributions to Limited Partners - (61,696) (61,696)
---------- ---------- ----------
- (61,696) (61,696)
---------- ---------- ----------
Net increase in cash and
cash equivalents 62,983 168,231 231,214
Cash and cash equivalents:
Beginning of year 1,348,281 2,443,281 3,791,562
---------- ---------- ----------
End of second quarter $1,411,264 $2,611,512 $4,022,776
========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 12
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
NOTES TO FINANCIAL STATEMENTS
June 30, 1997
(Unaudited)
NOTE 1 - ORGANIZATION:
Datronic Equipment Income Fund XVI, L.P., a Delaware Limited Partnership (the
"Partnership"), was formed on April 21, 1987 for the purpose of acquiring and
leasing both high-and low-technology equipment. Reference is made to Notes 3,
4, 5, and 6 to the Partnership's financial statements included in the 1996 Form
10-K for a discussion of the alleged diversion of Partnership assets in 1991
and 1992 and the subsequent litigation and settlement, change in general
partner, new classes of limited partners established,and amendments to the
Partnership Agreement which occurred.
NOTE 2 - BASIS OF FINANCIAL STATEMENTS:
The accompanying financial statements should be read in conjunction with the
Partnership's financial statements included in the 1996 Form 10-K. The
financial information furnished herein is unaudited but in the opinion of
Management includes all adjustments necessary (all of which are normal
recurring adjustments) for a fair presentation of financial condition and
results of operations.
NOTE 3 - LIMITED PARTNERSHIP DISTRIBUTIONS:
Distributions to Liquidating Limited Partners were suspended after payment of
the April 1, 1995 distribution. Distributions to Continuing Limited Partners
were suspended after payment of the January 1, 1996 distribution.
NOTE 4 - INVESTMENT IN FORECLOSED PROPERTIES:
During 1991 and 1992, the Partnership acquired three real estate properties
through foreclosure on defaulted leases. Two of the properties are subject to
separate lease agreements each containing renewal provisions exercisable by the
lessee under certain conditions. One lease agreement extends to November, 1997
and provides rental payments of $220,000 for 1997. The original term of the
second lease agreement expired in February 1997. The tenant is continuing to
occupy the premises on a month-to-month basis with a monthly rental of $11,248.
12
<PAGE> 13
PART I
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of liquidity and capital resources covers
material changes in the Partnership's financial condition from December 31,
1996 through June 30, 1997. The discussion and analysis of results of
operations is for the three and six month periods ended June 30, 1997 as
compared to the corresponding periods in 1996.
Financial Condition, Liquidity and Capital Resources
During the six months ended June 30, 1997, Partnership assets continued to be
converted to cash which was used to, generally, pay Partnership operating
expenses and liquidate Partnership liabilities.
Net investment in direct financing leases decreased approximately $41,000
during the six months ended June 30, 1997 primarily due to principal
collections of approximately $211,000 partially offset by a credit for lease
losses of approximately $170,000.
Accounts payable and accrued expenses decreased approximately $102,000 during
the six months ended June 30, 1997 primarily due to payment of accrued legal
fees.
Lessee rental deposits decreased approximately $67,000 resulting from payments
made to lessees at the end of lease term.
In the aggregate, partners' equity decreased approximately $74,000 due to a net
loss for the six months ended June 30, 1997.
During the six months ended June 30, 1997, the Partnership's operating
activities resulted in a use of approximately $378,000 of cash. This was due
principally to a net loss of approximately $74,000, decreases in accounts
payable and rental deposits of approximately $169,000 and a non-cash credit for
lease loss of approximately $170,000, partially offset by a decrease in due
from management company of approximately $35,000. During the period, cash
flows from investing activities aggregated approximately $224,000 relating
primarily to principal collections on leases.
The Partnership's sources of liquidity on both a long-term and short-term basis
are expected to come principally from cash-on-hand and the rental or sale of
foreclosed properties. In addition, the Partnership's sources of liquidity on
a long-term basis are expected to include proceeds from the sale of diverted
and other assets. Management believes that its sources of liquidity in the
short and long-term are sufficient to meet its operating cash obligations and
provide for the ongoing pursuit of litigation, and an orderly
13
<PAGE> 14
liquidation of the Partnership. Distributions to Liquidating Limited Partners
were suspended after the April 1, 1995 distribution and distributions to the
Continuing Limited Partners were suspended after the January 1, 1996
distribution.
The continued operation and eventual liquidation of the Partnership involves
numerous complex issues which have to be resolved. These issues relate to the
timing and realizability of Diverted and other assets, Datronic assets,
litigation and the liquidation of the other Datronic Partnerships (see Notes 3,
5 and 9 to the Partnership's financial statements included in the 1996 Form
10-K). These issues make it difficult to predict the time and costs necessary
to operate and liquidate the Partnership in an orderly manner. As a result of
these uncertainties, it is unlikely that any additional distributions will be
made until all remaining assets are liquidated and the pending litigation is
resolved. The amount of future distributions, if any, to the Limited Partners
is likely to be significantly less than the amount of partners' equity
reflected in the June 30, 1997 Balance Sheets (see the financial statements
included in Item 1).
Results of Operations
Lease income decreased approximately $15,000 and $36,000 for the three and six
month periods ended June 30, 1997 as compared to the corresponding periods in
1996 primarily due to the declining lease portfolio.
Interest income decreased approximately $24,000 and $31,000 for the three and
six month periods ended June 30, 1997 as compared to the corresponding periods
in 1996. This was primarily due to recognition in the second quarter of 1996
of approximately $18,000 of interest previously earned on restricted cash
balances. The remaining decrease is due to a smaller amount of interest earned
in 1997 as a result of decreased cash balances.
Rental income increased approximately $7,000 and $28,000 for the three and six
month periods ended June 30, 1997 as compared to the corresponding periods in
1996, primarily due to rental rate increases.
Management fees-New Era represent amounts paid New Era for managing the
Partnership on a day-to-day basis pursuant to a Management Agreement which was
terminated effective June 30, 1996. Accordingly, fees paid to New Era amounted
to zero for the three and six month periods ended June 30, 1997 as compared to
approximately $187,000 and $375,000 for the corresponding periods in 1996.
Subsequent to June 30, 1996, the General Partner, Lease Resolution Corporation
("LRC"), has assumed responsibility for day-to-day management of the
Partnership and the corresponding costs and expenses are included in General
Partner's expense reimbursement (see Note 8 to the Partnership's financial
statements included in the 1996 Form 10-K).
14
<PAGE> 15
The General Partner's expense reimbursement represents the amount paid to LRC
in its capacity as general partner. Total amounts paid to LRC were
approximately $179,000 and $349,000 for the three and six month periods ended
June 30, 1997 as compared to $26,000 and $93,000 for the corresponding periods
in 1996. The increases of approximately $153,000 and $256,000 primarily
represent incremental expenses associated with LRC's assumption of the day to
day management of the Partnership's operations effective July 1, 1996. These
expenses were previously included in Management Fees-New Era (see Note 8 to the
Partnership's financial statements included in the 1996 Form 10-K). Included
in the 1997 expenses is approximately $33,000 representing a one time expense
associated with the relocation of former New Era employees to reduced office
space.
Professional fees increased approximately $29,000 for the three month period
and decreased approximately $8,000 for the six month period ended June 30, 1997
as compared to the corresponding periods in 1996. The increase results from
additional legal fees relating to Partnership claims against former accountants
and others, and collection fees partially offset by decreased audit fees and
other legal fees. The decrease is due to reductions in audit fees and legal
fees for other matters partially offset by increased legal fees for
collections.
Other operating expenses decreased approximately $2,000 and $8,000 for the
three and six month periods ended June 30, 1997 as compared to the
corresponding periods in 1996, primarily due to decreases in bank charges and
general fees.
The credit for lease losses reflects Management's ongoing assessment of
potential losses inherent in the lease portfolios and lease collections on
certain leases in excess of those anticipated in prior years.
15
<PAGE> 16
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Reference is made to Item 3 - Legal Proceedings in the Partnership's December
31, 1996 Form 10-K for a discussion of material legal proceedings involving the
Partnership.
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
See Exhibit Index.
(b) Reports on Form 8-K
None.
16
<PAGE> 17
SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized, on the 12th day of August 1997.
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
Registrant
By: /s/DONALD D. TORISKY
--------------------------------------------------
Donald D. Torisky
Chairman and Chief Executive Officer
Lease Resolution Corporation
General Partner of
Datronic Equipment Income Fund XVI, L.P.
By: /s/ROBERT P. SCHAEN
--------------------------------------------------
Robert P. Schaen
Vice Chairman and Chief Financial Officer
Lease Resolution Corporation
General Partner of
Datronic Equipment Income Fund XVI, L.P.
17
<PAGE> 18
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
- ----------- -----------
27 Financial Data Schedule, which is
submitted electronically to the
Securities and Exchange Commission for
Information only and not filed.
18
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AND THE STATEMENTS OF REVENUE AND EXPENSES AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH REPORT ON FORM 10-Q
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 3,005,314
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 5,298,047
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 5,040,054
<TOTAL-LIABILITY-AND-EQUITY> 5,298,047
<SALES> 0
<TOTAL-REVENUES> 280,883
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 17,927
<LOSS-PROVISION> (169,599)
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (73,605)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
