<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
September 30, 1998 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 jurisdiction of IRS Employer Identification
incorporation or organization Number
1300 E. Woodfield Road, Suite 312 Schaumburg, Illinois 60173
- -------------------------------------- --------------------------
Address of principal executive offices City, State, Zip Code
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 SEPTEMBER 30, 1998
PART I - FINANCIAL INFORMATION
<TABLE>
<S> <C>
Item 1.
- -------
Index to Financial Statements
Balance Sheets
September 30, 1998 (unaudited) 3
December 31, 1997 4
Statements of Revenue and Expenses (unaudited)
For the three months ended September 30, 1998 5
For the three months ended September 30, 1997 6
For the nine months ended September 30, 1998 7
For the nine months ended September 30, 1997 8
Statements of Changes in Partners' Equity
For the nine months ended September 30, 1998 (unaudited) 9
Statements of Cash Flows (unaudited)
For the nine months ended September 30, 1998 10
For the nine months ended September 30, 1997 11
Notes to Financial Statements (unaudited) 12-13
Item 2.
- -------
Management's Discussion and Analysis of
Financial Condition and Results of Operations 14-16
PART II - OTHER INFORMATION
Items 1-6. 17
- ----------
</TABLE>
2
<PAGE> 3
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
BALANCE SHEETS
September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
<S> <C> <C> <C>
ASSETS
Cash and cash equivalents $ 873,296 $1,855,312 $2,728,608
Net investment in direct
financing leases -- -- --
Investment in foreclosed
properties, net 542,176 875,648 1,417,824
Diverted and other assets, net 153,599 248,074 401,673
Datronic assets, net -- -- --
----------- ---------- ----------
$1,569,071 $2,979,034 $4,548,105
========== ========== ==========
LIABILITIES AND PARTNERS' EQUITY
Accounts payable and
accrued expenses $ 45,823 $ 78,493 $ 124,316
Lessee rental deposits 3,824 7,109 10,933
---------- ---------- ----------
Total liabilities 49,647 85,602 135,249
Total partners' equity 1,519,424 2,893,432 4,412,856
---------- ---------- ----------
$1,569,071 $2,979,034 $4,548,105
========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 4
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
BALANCE SHEETS
December 31, 1997
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
<S> <C> <C> <C>
ASSETS
Cash and cash equivalents $ 903,609 $1,882,675 $2,786,284
Net investment in direct
finance leases -- -- --
Investment in foreclosed
properties, net 732,126 1,182,430 1,914,556
Diverted and other assets, net 153,599 248,074 401,673
Datronic assets, net -- -- --
---------- ---------- ----------
$1,789,334 $3,313,179 $5,102,513
========== ========== ==========
LIABILITIES AND PARTNERS' EQUITY
Accounts payable and
accrued expenses $ 53,420 $ 91,937 $ 145,357
Lessee rental deposits 4,905 8,968 13,873
----------- ---------- ----------
Total liabilities 58,325 100,905 159,230
Total partners' equity 1,731,009 3,212,274 4,943,283
---------- ---------- ----------
$1,789,334 $3,313,179 $5,102,513
========== ========== ==========
</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 September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
<S> <C> <C> <C>
Revenue:
Lease income $ 604 $ 975 $ 1,579
Interest income 11,026 21,114 32,140
-------- ------- ---------
11,630 22,089 33,719
======== ======== =========
Expenses:
General Partner's
expense reimbursement 47,563 76,948 124,511
Professional fees 15,453 24,956 40,409
Other operating expenses 1,657 2,677 4,334
Credit for lease losses (3,060) (6,300) (9,360)
-------- -------- ---------
61,613 98,281 159,894
-------- -------- ---------
Net loss $(49,983) $(76,192) $(126,175)
======== ======== =========
Net loss -
General Partner $ (500) $ (762) $ (1,262)
======== ======== =========
Net loss -
Limited Partners $(49,483) $(75,430) $(124,913)
======== ======== =========
Net loss per limited
partnership unit $ (1.30) $ (1.22)
======== ========
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 September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ---------
<S> <C> <C> <C>
Revenue:
Lease income $ 3,546 $ 7,026 $ 10,572
Interest income 12,651 23,274 35,925
Rental income 35,848 57,896 93,744
--------- -------- --------
52,045 88,196 140,241
--------- -------- --------
Expenses:
General Partner's
expense reimbursement 63,544 102,840 166,384
Professional fees 37,202 60,083 97,285
Other operating expenses 3,253 5,308 8,561
Credit for lease losses (15,722) (32,808) (48,530)
--------- -------- --------
88,277 135,423 223,700
--------- -------- --------
Net loss $ (36,232) $(47,227) $(83,459)
========= ======== ========
Net loss - General Partner $ (362) $ (472) $ (834)
========= ======== ========
Net loss - Limited Partners $ (35,870) $(46,755) $(82,625)
========= ======== ========
Net loss per limited
partnership unit $ (0.94) $ (0.76)
========= ========
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 nine months ended September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
<S> <C> <C> <C>
Revenue:
Lease income $ 8,069 $ 13,978 $ 22,047
Interest income 32,521 62,095 94,616
---------- ---------- ----------
40,590 76,073 116,663
---------- ---------- ----------
Expenses:
General Partner's
expense reimbursement 135,209 218,673 353,882
Professional fees 140,674 227,966 368,640
Other operating expenses 8,909 14,390 23,299
Credit for lease losses (32,617) (66,114) (98,731)
---------- ---------- ----------
252,175 394,915 647,090
---------- ---------- ----------
Net loss $ (211,585) $ (318,842) $ (530,427)
========== ========== ==========
Net loss -
General Partner $ (2,116) $ (3,188) $ (5,304)
========== ========== ==========
Net loss -
Limited Partners $ (209,469) $ (315,654) $ (525,123)
========== ========== ==========
Net loss per limited
partnership unit $ (5.48) $ (5.12)
========== ==========
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 nine months ended September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
<S> <C> <C> <C>
Revenue:
Lease income $ 6,568 $ 17,165 $ 23,733
Interest income 38,161 68,046 106,207
Rental income 111,349 179,835 291,184
--------- ---------- ----------
156,078 265,046 421,124
--------- ---------- ----------
Expenses:
General Partner's
expense reimbursement 194,828 320,475 515,303
Professional fees 97,072 157,454 254,526
Other operating expenses 9,980 16,508 26,488
Credit for lease losses (79,457) (138,672) (218,129)
--------- ---------- ----------
222,423 355,765 578,188
--------- ---------- ----------
Net loss $ (66,345) $ (90,719) $ (157,064)
========= ========== ===========
Net loss - General Partner $ (663) $ (907) $ (1,570)
========= ========== =========
Net loss - Limited Partners $ (65,682) $ (89,812) $ (155,494)
========= ========== ==========
Net loss per limited
partnership unit $ (1.72) $ (1.46)
========= ==========
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, 1997* $ -- $1,731,009 $3,212,274 $4,943,283
Net loss (5,304) (209,469) (315,654) (530,427)
Allocation of General
Partner's Equity 5,304 (2,116) (3,188) --
-------- ---------- ---------- ----------
Balance, September 30, 1998 $ -- $1,519,424 $2,893,432 $4,412,856
======== ========== ========== ==========
</TABLE>
* Balances are net of $42,867 and $78,868, of General Partner's equity
previously allocated to Liquidating and Continuing Limited Partners'
Equity.
See accompanying notes to financial statements.
9
<PAGE> 10
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $ (211,585) $ (318,842) $ (530,427)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Credit for lease losses (32,617) (66,114) (98,731)
Changes in assets and liabilities:
Accounts payable and accrued
expenses (7,597) (13,444) (21,041)
Lessee rental deposits (1,081) (1,859) (2,940)
---------- ---------- ----------
(252,880) (400,259) (653,139)
---------- ---------- ----------
Cash flows from investing activities:
Principal collections on leases 32,617 66,114 98,731
Proceeds from liquidation of
foreclosed properties 189,950 306,782 496,732
---------- ---------- ----------
222,567 372,896 595,463
---------- ---------- ----------
Net decrease in cash and
cash equivalents (30,313) (27,363) (57,676)
Cash and cash equivalents:
Beginning of year 903,609 1,882,675 2,786,284
---------- ---------- ----------
End of third quarter $ 873,296 $1,855,312 $2,728,608
========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 11
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ----------- ---------
<S> <C> <C> <C>
Cash flows used for operating activities:
Net loss $ (66,345) $ (90,719) $ (157,064)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Credit for lease losses (79,457) (138,672) (218,129)
Changes in assets and liabilities:
Accounts payable and accrued
expenses (50,901) (82,895) (133,796)
Lessee rental deposits (27,362) (53,918) (81,280)
Due from management company 12,826 21,678 34,504
---------- --------- -----------
(211,239) (344,526) (555,765)
---------- --------- ----------
Cash flows from investing activities:
Principal collections on leases 81,977 177,631 259,608
Investment in foreclosed properties 7,342 11,858 19,200
---------- --------- ----------
89,319 189,489 278,808
---------- --------- ----------
Net decrease in cash and cash equivalents (121,920) (155,037) (276,957)
Cash and cash equivalents:
Beginning of year 1,065,965 2,093,544 3,159,509
----------- ---------- ----------
End of third quarter $ 944,045 $1,938,507 $2,882,552
============ ========== ==========
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 12
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
NOTES TO FINANCIAL STATEMENTS
September 30, 1998
(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. See Notes 5, 8, and 10 to the
Partnership's financial statements included in the 1997 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 1997 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. See Note 2 to the Partnership's financial statements
included in the 1997 Form 10-K.
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 were occupied
by tenants who paid monthly rentals of $11,248 and $20,000, respectively,
through the end of the third quarter 1998. LRC is now actively marketing these
properties for sale and expects that the proceeds from such sales will not
differ materially from the net book value of the properties. The third
property was sold in 1996 to its occupant. The purchase price was paid in the
form of a secured note with a $245,000 balloon payment due on March 31, 1998.
During the quarter ended June 30, 1998 this amount was paid in full.
12
<PAGE> 13
NOTE 5 - SETTLEMENT OF LITIGATION:
On May 5, 1998, Lease Resolution Corporation (LRC), on behalf of Datronic
Equipment Income Funds XVI, XVII, XVIII, XIX, XX and Datronic Finance Income
Fund I, reached an agreement to settle all claims of the aforementioned
partnerships against Weiss & Co. The settlement was contingent upon the
subsequent approval by the United States District Court for the Northern
District of Illinois, Eastern Division (the "District Court") dismissing Weiss
& Co. as a party defendant. On August 19, 1998, the District Court entered an
order dismissing Weiss & Co. as a party defendant, and on September 20, 1998,
$2,437,331 was transferred to LRC in full and final settlement of the Weiss
matter. In connection with this matter, a total of $1,410,950 of expenses
($708,600 for the nine months ended September 30, 1998) consisting primarily of
legal fees, was incurred. After payment of contingent legal fees of $609,333,
a total of $1,827,998 is available for transfer to the Datronic Partnerships.
LRC will determine the appropriate allocation of these amounts among the
Partnerships after resolution of the post-trial motions filed in the Price
Waterhouse matter.
On June 10, 1998 a verdict was rendered finding Price Waterhouse liable for
negligence, but not guilty of breach of contract. On July 20, 1998, LRC and
Price Waterhouse both filed post-trial motions requesting relief from the
Court. The Court is not expected to rule on these motions for several months.
13
<PAGE> 14
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,
1997 through September 30, 1998. The discussion and analysis of results of
operations is for the three and nine month periods ended September 30, 1998 as
compared to the corresponding periods in 1997.
Liquidity and Capital Resources
During the nine months ended September 30, 1998, Partnership assets continued
to be converted to cash in order to pay Partnership operating expenses,
liquidate Partnership liabilities and provide for the ultimate liquidation of
the Partnership.
During the nine months ended September 30, 1998, the Partnership's cash and
cash equivalents decreased by $58,000 to $2,728,000 at September 30, 1998 from
$2,786,000 at December 31, 1997. This decrease is primarily due to cash
receipts from collections on leases and foreclosed properties of $595,000
partially offset by cash used in operations of $653,000.
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. Through September 30, 1998, the Partnership was
receiving a total of $31,248 a month from the month-to-month rental of the
foreclosed properties. Both tenants have now moved out and LRC is actively
marketing the properties for sale. The eventual proceeds from such sales are
not expected to differ materially from the net book value of the properties.
In addition, the Partnership's sources of liquidity on a long-term basis
include proceeds from the sale of Diverted and other assets. Management
believes that these sources of liquidity in the short and long-term are
sufficient to meet operating cash requirements, provide for ongoing pursuit of
litigation, and an orderly liquidation of the Partnership.
The continued operation and eventual liquidation of the Partnership involves
complex issues some of which have been resolved. These issues relate to the
timing and the amount to be realized from the liquidation of lease-related
assets, Diverted and other assets, Datronic assets, litigation and the
liquidation of the other Datronic Partnerships. These issues make it difficult
to predict the time and costs necessary to operate and liquidate the Partnership
in an orderly manner. Through the second quarter of 1998, it appeared unlikely
that the Partnership would make any additional distributions until such time as
its remaining assets were liquidated and the pending litigation was resolved.
Now that additional assets have been liquidated the General Partner has
determined that an interim cash distribution will be paid to the Limited
Partners shortly after the end of the first quarter 1999. The General Partner
is in the process
14
<PAGE> 15
of determining the amount that will be available for this distribution and its
allocation among each class of Limited Partner. This distribution will be made
to owners of record as of December 31, 1998 even if their units are subsequently
sold.
Results of Operations
The Partnership had net losses of $126,000 and $530,000 for the three and nine
months ended September 30, 1998, respectively, in the aggregate for all classes
of partners. This compares to aggregate net losses of $83,000 and $157,000 for
the three and nine months ended September 30, 1997. Differences in operating
results between Liquidating and Continuing Limited Partners are attributable to
lease income, acquisition costs, and expenses associated with new lease
investments made since the March 4, 1993 Settlement. Liquidating Limited
Partners do not participate in these post Settlement activities. Significant
factors affecting overall operating results for the three and nine month
periods ended September 30, 1998 as compared to the same periods in 1997
include the following:
Lease income:
The decrease for the three and nine month periods ended September 30, 1998 is
primarily due to decreases in collections of previously unearned lease income
on defaulted leases.
Rental income:
The 1998 decrease reflects management's decision to apply rental receipts on
foreclosed properties as a recovery of its investment balance, effective
January 1, 1998. For the period beginning April 1995 through December 1997,
rental receipts on foreclosed properties were recognized as income.
General Partner's expense reimbursement:
The decrease for the three and nine month periods ended September 30, 1998 is
primarily due to the elimination of premium payments for D&O insurance and
relocation costs as well as reductions in staff and related costs. Through the
first quarter 1997, D&O insurance premiums were paid on an annual basis;
however, in September 1997 a one-time premium was paid that extended coverage
through the ultimate liquidation date of the Partnership. Included in the
second quarter 1997 is a one-time charge for relocating staff to reduced office
space.
Professional fees: The increase for the nine month period ended September 30,
1998 primarily reflects fees paid during the second quarter of 1998 in
connection with the trial against one of the Partnership's former accountants.
This increase is partially offset by the decreasing level of professional
services required in such areas as collections, consulting and auditing. These
decreases are the result of the decrease in the Partnership's lease portfolio
and related activities. The decrease for the three months ended September 30,
1998 primarily reflects the reduction in fees paid in connection with the
ongoing litigation. There was little activity while awaiting rulings on
post-trial motions filed in July 1998. See Note 5 to Partnership's
15
<PAGE> 16
financial statements included in Item 1.
Credit for lease losses:
The credit primarily reflects collections on previously reserved balances.
16
<PAGE> 17
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Reference is made to Item 3 - Legal Proceedings in the Partnership's December
31, 1997 Form 10-K for a discussion of material legal proceedings involving the
Partnership.
Reference is made to Part I, Item 1, Note 5 for a discussion of legal
proceedings involving claims against Weiss & Co.
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.
17
<PAGE> 18
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 16th day of November 1998.
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.
18
<PAGE> 19
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.
19
<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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 2,728,608
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 4,548,105
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 4,412,856
<TOTAL-LIABILITY-AND-EQUITY> 4,548,105
<SALES> 0
<TOTAL-REVENUES> 116,663
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 23,299
<LOSS-PROVISION> (98,731)
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (530,427)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
