<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, 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 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, 1998
-----------------------------------
PART I - FINANCIAL INFORMATION
Item 1.
Index to Financial Statements
Balance Sheets
June 30, 1998 (unaudited) 3
December 31, 1997 4
Statements of Revenue and Expenses (unaudited)
For the three months ended June 30, 1998 5
For the three months ended June 30, 1997 6
For the six months ended June 30, 1998 7
For the six months ended June 30, 1997 8
Statements of Changes in Partners' Equity
For the six months ended June 30, 1998 (unaudited) 9
Statements of Cash Flows (unaudited)
For the six months ended June 30, 1998 10
For the six months ended June 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 - 15
PART II - OTHER INFORMATION
Items 1-6. 16
2
<PAGE> 3
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
----------------------------------------
BALANCE SHEETS
--------------
June 30, 1998
-------------
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ---------- ----------
<S> <C> <C> <C>
ASSETS
Cash and cash equivalents $ 904,048 $1,901,451 $2,805,499
Net investment in direct
financing leases - - -
Investment in foreclosed
properties, net 567,316 916,252 1,483,568
Diverted and other assets, net 153,599 248,074 401,673
Datronic assets, net - - -
---------- ---------- ----------
$1,624,963 $3,065,777 $4,690,740
========== ========== ==========
LIABILITIES AND PARTNERS' EQUITY
Accounts payable and
accrued expenses $ 52,174 $ 89,661 $ 141,835
Lessee rental deposits 3,382 6,492 9,874
---------- ---------- ----------
Total liabilities 55,556 96,153 151,709
Total partners' equity 1,569,407 2,969,624 4,539,031
---------- ---------- ----------
$1,624,963 $3,065,777 $4,690,740
========== ========== ==========
</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 - - -
Diverted and other assets, net 153,599 248,074 401,673
Investment in foreclosed
properties, net 732,126 1,182,430 1,914,556
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 June 30, 1998
----------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
<S> <C> <C> <C>
Revenue:
Lease income $ 4,560 $ 7,876 $ 12,436
Interest income 10,684 20,448 31,132
--------- ---------- ----------
15,244 28,324 43,568
--------- ---------- ----------
Expenses:
General Partner's
expense reimbursement 42,891 69,357 112,248
Professional fees 76,518 124,210 200,728
Other operating expenses 3,610 5,829 9,439
Credit for lease losses (9,574) (21,540) (31,114)
--------- ---------- ----------
113,445 177,856 291,301
--------- ---------- ----------
Net loss $ (98,201) $(149,532) $ (247,733)
========= ========== ==========
Net loss -
General Partner $ (982) $ (1,495) $ (2,477)
========= ========== ==========
Net loss -
Limited Partners $ (97,219) $ (148,037) $ (245,256)
========= ========== ==========
Net loss per limited
partnership unit $(2.55) $(2.40)
====== ======
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, 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.
6
<PAGE> 7
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
----------------------------------------
STATEMENTS OF REVENUE AND EXPENSES
----------------------------------
For the six months ended June 30, 1998
--------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ---------- ----------
<S> <C> <C> <C>
Revenue:
Lease income $ 7,465 $ 13,003 $ 20,468
Interest income 21,495 40,981 62,476
---------- ---------- ----------
28,960 53,984 82,944
---------- ---------- ----------
Expenses:
General Partner's
expense reimbursement 87,646 141,725 229,371
Professional fees 125,221 203,010 328,231
Other operating expenses 7,252 11,713 18,965
Credit for lease losses (29,557) (59,814) (89,371)
---------- ---------- ----------
190,562 296,634 487,196
---------- ---------- ----------
Net loss $ (161,602) $ (242,650) $ (404,252)
========== ========== ==========
Net loss -
General Partner $ (1,616) $ (2,427) $ (4,043)
========== ========== ==========
Net loss -
Limited Partners $ (159,986) $ (240,223) $ (400,209)
========== ========== ==========
Net loss per limited
partnership unit $(4.19) $(3.89)
====== ======
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, 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.
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 (4,043) (159,986) (240,223) (404,252)
Allocation of General
Partner's Equity 4,043 (1,616) (2,427) -
--------- ----------- ---------- ----------
Balance, June 30, 1998 $ - $ 1,569,407 $2,969,624 $4,539,031
========= =========== ========== ==========
</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 six months ended June 30, 1998
--------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $ (161,602) $ (242,650) $ (404,252)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Credit for lease losses (29,557) (59,814) (89,371)
Changes in assets and liabilities:
Accounts payable and accrued
expenses (1,246) (2,276) (3,522)
Lessee rental deposits (1,523) (2,476) (3,999)
----------- ---------- ----------
(193,928) (307,216) (501,144)
----------- ---------- ----------
Cash flows from investing activities:
Principal collections on leases 29,557 59,814 89,371
Proceeds from liquidation of
foreclosed properties 164,810 266,178 430,988
----------- ---------- ----------
194,367 325,992 520,359
----------- ---------- ----------
Net increase in cash and
cash equivalents 439 18,776 19,215
Cash and cash equivalents:
Beginning of year 903,609 1,882,675 2,786,284
----------- ---------- ----------
End of second quarter $ 904,048 $1,901,451 $2,805,499
=========== ========== ==========
</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, 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
Proceeds from liquidation of
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.
11
<PAGE> 12
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
----------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
June 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 ON FORECLOSED PROPERTIES:
During 1991 and 1992, the Partnership acquired three real estate properties
through foreclosure on defaulted leases. Two of the properties are occupied by
tenants who are paying monthly rentals of $11,248 and $20,000, respectively.
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. ("Settlement Agreement"). (See Note 8 to the
financial statements included in the Partnership's 1997 Form 10-K). The
Settlement Agreement is contingent upon 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. Pursuant to the
terms of the Settlement Agreement, Weiss & Co. has agreed to pay LRC, on behalf
of the aforementioned partnerships, $2.4 million. LRC expects to determine the
appropriate allocation of these proceeds among the Partnerships, net of
contingent attorneys fees of $600,000, during the third quarter after
considering all relevant factors associated with the Settlement. Weiss & Co.
has transferred $2.4 million to an escrow account; this amount will be
transferred to LRC no later than 30 days following the District Court entering
an order of dismissal of Weiss & Co. The District Court has scheduled a hearing
for August 19, 1998 to entertain the motion for dismissal of Weiss & Co. as a
party defendant.
On June 10, 1998, a verdict was rendered finding Price Waterhouse liable for
negligence, but not guilty of breach of contract. On July 20, 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 June 30, 1998. The discussion and analysis of results of
operations is for the three and six month periods ended June 30, 1998 as
compared to the corresponding periods in 1997.
Liquidity and Capital Resources
During the six months ended June 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 six months ended June 30, 1998, the Partnership's cash and cash
equivalents increased by $19,000 to $2,805,000 at June 30, 1998 from $2,786,000
at December 31, 1997. This increase is primarily due to cash receipts from
collections on leases and foreclosed properties of $520,000 partially offset by
cash used in operations of $501,000.
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. 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 its sources of liquidity in the short and long-term
are sufficient to meet its 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
numerous complex issues which have to be 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. As a result of these uncertainties, it is
unlikely that any significant 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, in all
likelihood, will be significantly less than the amount of partners' equity
reflected in the June 30, 1998 balance sheets (see Partnership's financial
statements included in Item 1.)
14
<PAGE> 15
Results of Operations
The Partnership had net losses of $248,000 and $404,000 for the three and six
months ended June 30, 1998, respectively, in the aggregate for all classes of
partners. This compares to aggregate net losses of $103,000 and $74,000 for
the three and six months ended June 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 six month periods ended June 30,
1998 as compared to the same periods in 1997 include the following:
Lease income:
The increase for the three and six months ended June 30, 1998 represents
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 six month periods ended June 30, 1998 is
primarily due to changes in the premium payments for D&O insurance, relocation
costs and 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 1998 increase reflects fees paid in connection with the ongoing litigation
against the Partnership's former accountants. As of August 14, 1998 the
litigation process continues. 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.
Credit for lease losses:
The credit primarily reflects collections on previously reserved balances.
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, 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. and Price Waterhouse.
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 14th day of August 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.
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-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 2,805,499
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 4,690,740
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 4,539,031
<TOTAL-LIABILITY-AND-EQUITY> 4,690,740
<SALES> 0
<TOTAL-REVENUES> 82,944
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 18,965
<LOSS-PROVISION> (89,371)
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (404,252)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
