<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly 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: 0-16097
BAYOU INTERNATIONAL, LTD.
(Exact Name of Registrant as Specified in Its Charter)
Delaware 98-0079697
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
Level 8, 580 St. Kilda Road, Melbourne, Victoria, Australia 3004
(Address of Principal Executive Offices) (Zip Code)
(Registrant's Telephone Number, Including Area Code) 011-613-9276-7888
N/A
Former Name, Former Address and Former Fiscal Year, if Changed Since Last
Report.
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days. Yes ____X___
No ________
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents
and reports required to be filed by Section 12, 13 or 15(d) of the
Securities Exchange Act of 1934 subsequent to the distribution of
securities under a plan confirmed by a court. Yes _________ No __________
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date. There were
46,890,893 outstanding shares of Common Stock as of March 31, 1996.
<PAGE>
<PAGE> F-1
PART I
FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
Introduction to Interim Financial Statements.
The interim financial statements included herein have
been prepared by Bayou International, Ltd. (the "Company")
without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission (the "Commission"). Certain
information and footnote disclosure normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations, although the Company
believes that the disclosures are adequate to make the
information presented not misleading. These interim financial
statements should be read in conjunction with the financial
statements and notes thereto included in the Company's Annual
Report on Form 10-K for the year ended June 30, 1995.
In the opinion of management, all adjustments, consisting
only of normal recurring adjustments, necessary to present
fairly the financial position of the Company as of March 31,
1996 and March 31, 1995, the results of its operations for the
nine month periods ended March 31, 1996 and March 31, 1995, and
the changes in its cash flows for the nine-month periods ended
March 31, 1996 and March 31, 1995, have been included. The
results of operations for the interim periods are not
necessarily indicative of the results for the full year.
UNLESS OTHERWISE INDICATED, ALL FINANCIAL INFORMATION
PRESENTED IS IN AUSTRALIAN DOLLARS.
<PAGE>
<PAGE> F-2
BAYOU INTERNATIONAL, LTD. AND SUBSIDIARY
Consolidated Balance Sheet
March 31, 1996 and June 30, 1995
and March 31, 1995
(in Australian Dollars)
(000's omitted)
(Unaudited)
<TABLE>
<CAPTION>
ASSETS
March 31, June 30, March 31,
1996 1995 1995
<S> <C> <C> <C>
Current Assets:
Cash $ 120 $ 71 $ 167
Accounts Receivable 89 86 46
Investments 1 51 15
Total Current Assets 210 208 228
Other Assets:
Property, net 58 83 81
Goodwill, net 666 1,066 1,199
Total Other Assets 724 1,149 1,280
Total Assets $ 934 $ 1,357 $ 1,508
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Bank Overdraft and Short Term Notes $ 17 $ 73 $ 39
Accounts Payable and Accrued Expenses 292 681 522
Total Current Liabilities 309 754 561
Long-Term Debt 1,790 788 630
Total Liabilities 2,099 1,542 1,191
Stockholders' Equity:
Common Stock: $0.20 par value
50,000,000 shares authorized,
46,890,893 and 46,941,789 and
46,941,789 issued and outstanding 9,388 9,388 9,388
Additional Paid-in-Capital 11,592 11,592 11,592
Retained Earnings (22,145) (21,165) (20,663)
Total Stockholders' Equity (1,165) (185) 317
Total Liabilities and Stockholders'
Equity $ 934 $ 1,357 $ 1,508
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
<PAGE>
<PAGE> F-3
BAYOU INTERNATIONAL, LTD. AND SUBSIDIARY
Consolidated Statement of Operations
Three Months Ended March 31, 1996 and 1995 and
Nine Months Ended March 31, 1996 and 1995
(000's omitted)
(in Australian Dollars)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31, March 31, March 31,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Revenues:
Other Income $ -- $ 12 $ 156 $ 50
-- 12 156 50
Costs and Expenses:
Management Fee 4 -- 10 --
Interest Expense 46 15 132 29
Legal, Acctg. & Professional 18 43 38 103
Depreciation & Amortization 4 2 12 8
Administrative 124 260 581 609
Research & Development 4 19 38 97
200 339 811 846
Income (Loss) from Operations (200) (327) (655) (796)
Diminution of Asset Value -- -- -- --
Gain (Loss) on Disp. of Assets 5 -- 13 116
Foreign Curr. Exch. Gain (Loss) (273) 249 (538) (47)
Bad Debt (Expense) Recovery -- -- 81 --
(268) 249 (444) 69
Income (Loss) before Income Tax and
Amortization of Goodwill (468) (78) (1,099) (727)
Provision for Income Tax -- -- -- --
Income before Amortization of Goodwill (468) (78) (1,099) (727)
Amortization of Goodwill (134) (133) (400) (399)
Net Income (Loss) (602) (211) (1,499) (1,126)
Minority Interest -- -- -- --
Net Income $ (602) $ (211) $ (1,499) $ (1,126)
Earnings Per Common Equiv. Share $ (.01) $ (.01) $ (.03) $ (.02)
Weighted Number of Common Equiv.
Shares Outstanding 46,942 46,942 46,942 46,942
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
<PAGE>
<PAGE> F-4
BAYOU INTERNATIONAL, LTD. AND SUBSIDIARY
Consolidated Statement of Stockholders' Equity
March 31, 1996 and June 30, 1995
and March 31, 1995 and June 30, 1994
and March 31, 1994
(in Australian Dollars)
(000's omitted)
(Unaudited)
<TABLE>
<CAPTION>
Retained
Common Stock Paid-In Earnings
Shares Amount Capital (Deficit)
<S> <C> <C> <C> <C>
Balance June 30, 1993 31,412 $ 6,282 $ 11,582 $ (18,798)
Conversion of Affiliate borrowings to
Equity at par, 5,000,000 shares at
$0.20 5,000 1,000 -- --
Net Income nine months ending
03-31-94 -- -- -- (1,450)
Foreign Currency Translation -- -- -- 220
Balance March 31, 1994 36,412 7,282 11,582 (20,028)
Conversion of Affiliate borrowings to
Equity at par, 4,589,795 shares at
$0.20 4,590 918 -- --
Conversion of Long Term borrowings
to Equity, 5,940,016 shares at
approximately $0.20 5,940 1,188 10 --
Net Income three months ending
06-30-94 -- -- -- 315
Foreign Currency Translation -- -- -- 133
Balance June 30, 1994 46,942 9,388 11,592 (19,580)
Net Income nine months ending
03-31-95 -- -- -- (1,126)
Foreign Currency Translation -- -- -- 43
Balance March 31, 1995 46,942 9,388 11,592 (20,663)
Net Income three months ending
06-30-95 -- -- -- (635)
Foreign Currency Translation -- -- -- 133
Balance June 30, 1995 46,942 9,388 11,592 (21,165)
Net Income nine months ending
03-31-96 -- -- -- (1,499)
Foreign Currency Translation -- -- -- 519
Balance March 31, 1996 46,942 $ 9,388 $ 11,592 $ (22,145)
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
<PAGE>
<PAGE> F-5
BAYOU INTERNATIONAL, LTD. AND SUBSIDIARY
Consolidated Statement of Cash Flows
Nine Months Ended March 31, 1996 and 1995 and
Year Ended June 30, 1995
(in Australian Dollars)
(000's omitted)
(Unaudited)
<TABLE>
<CAPTION>
9 Months Ended Year Ended 9 Months Ended
March 31, 1996 June 30, 1995 March 31, 1995
<S> <C> <C> <C>
Cash Flows from Operating Activities:
Net Income (Loss) $ (1,499) $ (1,459) $ (1,126)
Adjustments:
Foreign Currency Translation 518 (126) 43
Depreciation and Amortization 411 547 407
(Gain) Loss on Disposition of Assets (6) (9) (116)
Diminution of Value -- -- --
Provision for Bad Debt -- -- --
Change Net of Effects of Subsidiary
Acquisitions:
Accounts Receivable (3) 60 100
A/P and Accrued Liabilities (389) 62 (97)
Net Cash Provided (Used) by
Operating Activities (968) (925) (789)
Cash Flow from Investing Activities:
Capital Expenditures, Net 21 (22) (21)
Net Proceeds from Investments 49 (35) 116
Net Cash Provided (Used) in
Investing Activities 70 (57) 95
Cash Flows from Financing Activities:
Reduction of Long Term Debt -- -- --
Issuance of Common Stock -- -- --
Net Borrowing under Credit Line
Arrangements (56) 32 (2)
Net Borrowing from Affiliates 1,003 788 630
Net Cash Provided by Financing
Activities 947 820 628
Net Increase (Decrease) in Cash 49 (162) (66)
Cash at Beginning of Year 71 233 233
Cash at End of Year $ 120 $ 71 $ 167
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
<PAGE>
<PAGE> F-6
BAYOU INTERNATIONAL, LTD. AND SUBSIDIARY
Notes to Consolidated Financial Statements
March 31, 1996 and June 30, 1995
and March 31, 1995
(1) Organisation
Bayou International, Ltd. ("Bayou") is incorporated in the State of
Delaware. The principal shareholder of Bayou is Edensor Nominees
Proprietary Limited ("Edensor"), an Australian corporation. Edensor
owned 42.7% of Bayou as of March 31, 1996.
Bayou's subsidiaries are Solmecs Corporation N.V. ("Solmecs"), which
it acquired controlling interest of, on September 3, 1987 and
complete ownership on January 2, 1992; and TFC Power Systems Limited
("TFC"), which it acquired from Solmecs on April 5, 1989. In July,
1992, Bayou diluted its interest in TFC from 54% to 36% in
consideration for services rendered by key executives and as an
incentive for future services. In December, 1994, Bayou again diluted
its interest in TFC from 36% to 8.4% when it transferred shares in
TFC to the former managing director of Solmecs in lieu of repayment
of debt owed by Solmecs.
During the period ending September 30, 1991, Bayou made an offer to
the minority shareholders of Solmecs to exchange their share in
Solmecs for shares in Bayou at the rate of 1,100 shares of Bayou for
each share of Solmecs. Effective date of the closing of this
transaction was January 2, 1992, the date upon which all acceptances
(written and/or verbal) were received. Total number of shares issued
on May 8, 1992 in connection with this transaction was 3,976,800.
Bayou is primarily engaged in the research and development of high
efficiency, low pollution or pollution-free products and technologies
in the energy conversion and conservation fields through its 100%-
owned subsidiary, Solmecs.
(2) Accounts Receivable
Accounts Receivable at March 31, 1996, June 30, 1995 and March 31,
1995 include:
<TABLE>
<CAPTION>
(in Australian Dollars)
(000's omitted)
March 31, June 30, March 31,
1996 1995 1995
<S> <C> <C> <C>
Miscellaneous Receivables $ 89 $ 170 $ 128
Less Allowance for Doubtful Account -- 84 82
Net $ 89 $ 86 $ 46
</TABLE>
<PAGE>
<PAGE> F-7
BAYOU INTERNATIONAL, LTD. AND SUBSIDIARY
Notes to Consolidated Financial Statements
March 31, 1996 and June 30, 1995
and March 31, 1995
(3) Investments
Investments at March 31, 1996, June 30, 1995 and March 31, 1995 are
valued at the lower of cost or market and include the following:
<TABLE>
<CAPTION>
(in Australian Dollars)
(000's omitted)
March 31, June 30, March 31,
1996 1995 1995
<S> <C> <C> <C>
Investments
Various Listed Marketable
Securities $ 1 $ 1 $ 1
Solmecs Investment in Bayou
International Ltd. -- 50 14
$ 1 $ 51 $ 15
</TABLE>
(4) Property
Property at March 31, 1996, June 30, 1995 and March 31, 1995 includes:
<TABLE>
<CAPTION>
(in Australian Dollars)
(000's omitted)
March 31, June 30, March 31,
1996 1995 1995
<S> <C> <C> <C>
Office Furniture & Equipment $ 209 $ 223 $ 234
Motor Vehicles 72 90 99
281 313 333
Less Accumulated Depreciation (223) (230) (252)
$ 58 $ 83 $ 81
</TABLE>
<PAGE>
<PAGE> F-8
BAYOU INTERNATIONAL, LTD. AND SUBSIDIARY
Notes to Consolidated Financial Statements
March 31, 1996 and June 30, 1995
and March 31, 1995
(5) Short Term and Long Term Debt
The following is a summary of Bayou's borrowing arrangements as of
March 31, 1996, June 30, 1995 and March 31, 1995.
<TABLE>
<CAPTION>
(in Australian Dollars)
(000's omitted)
March 31, June 30, March 31,
1996 1995 1995
<S> <C> <C> <C>
Long-Term
Loan from corporations affiliated with
the President of Bayou. Interest accrues
at ANZ Banking Group, Ltd. rate for
overdrafts over $100,000. Repayment
of loan not required before June 30,
1996. $ 1,790 $ 788 $ 630
Total Long-Term 1,790 788 630
Short-Term
Overdraft arrangement with balance
accruing interest 17 73 39
Total Short-Term 17 73 39
Total $ 1,807 $ 861 $ 669
</TABLE>
(6) Affiliate Transactions
Bayou advances to and receives advances from various affiliates. All
advances between consolidated affiliates are eliminated in
consolidation. At March 31, 1996, the Company had no outstanding
advances to unconsolidated affiliated companies, and had received
advances from unconsolidated affiliated companies totalling $630,000.
During the year ended June 30, 1991, Solmecs reduced its holding in
one of its subsidiaries through the sale of a part of its holding and
the issuance of additional shares by the subsidiary. As a result of
the sale, Solmecs received a capital note amounting to $1,106,000,
which is collectable only upon liquidation of the subsidiary. During
the year ended June 30, 1992, management of Solmecs elected to fully
provide for the entire balance of the capital note. The decision to
fully provide was based on lack of profitability and the financial
stability of the note maker. During the year ended June 30, 1994,
Solmecs agreed to convert the capital note to equity in the former
subsidiary. The transaction was reflected as a recovery of bad debt
and subsequent write down
<PAGE>
<PAGE> F-9
BAYOU INTERNATIONAL, LTD. AND SUBSIDIARY
Notes to Consolidated Financial Statements
March 31, 1996 and June 30, 1995
and March 31, 1995
(6) Affiliate Transactions (continued)
of the valuation of the equity shares. In addition, Solmecs agreed to
convert advances totalling US $345,927 made to TFC to equity. The
transaction was given the same accounting treatment as noted above.
During the year ending June 30, 1993, an affiliated company converted
$1,000,000 of its advances to Bayou to equity through the issuance of
5,000,000 shares of Common Stock at par, $.20 per share.
During the year ending June 30, 1994, an affiliated company converted
$1,971,959 of its advances to Bayou to equity through the issuance of
9,589,795 shares of Common Stock at par, $.20 per share.
During the year ended June 30, 1995, a former employee and director of
Solmecs agreed to forgive certain sums due him and other former
subsidiaries in exchange for shares of the former subsidiaries that
Bayou held. Total forgiveness totaled $116,000.
(7) Joint Venture Agreement
Bayou was engaged in negotiations with affiliates of a leading
educational institution ("Institution") in the United States, for a
joint venture to build ETGAR 5, an industrial scale co-generation
demonstration plant utilizing Solmecs' research and development in
the area of Liquid Metal Magneto-Hydro-Dynamics ("LMMHD") Energy
Conversion Technology ("ECT"). The initial funding for the joint
venture would have been from grant funds from the US Department of
Defense Appropriations Act of 1993.
In July, 1993, the Institution with the assistance of Bayou submitted
a research proposal to the Department of Defense with respect to a
30-month research program which would have constituted the next stage
of the ETGAR Program.
The Department of Defense's funding appropriation expired before the
Department of Defense completed its review of the research proposal.
Bayou is currently seeking other public and private sources of
funding to continue the development of its LMMHD technology; however,
there can be no assurances that such funding will be available to
Bayou.
<PAGE>
<PAGE> F-10
BAYOU INTERNATIONAL, LTD. AND SUBSIDIARY
Notes to Consolidated Financial Statements
March 31, 1996 and June 30, 1995
and March 31, 1995
(8) Prior-Period Adjustments
The accompanying financial statements have been restated to correct
errors in the calculation of Goodwill Amortization. The effect of the
restatement was to increase the net losses for the following fiscal
years ending:
<TABLE>
<CAPTION>
(in Australian Dollars)
(000's omitted)
<S> <C>
June 30, 1992 $ 24
June 30, 1993 $ 97
June 30, 1994 $ 96
</TABLE>
<PAGE>
<PAGE> F-11
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FUND COSTS CONVERSION
The consolidated statements of income and other financial and operating
data contained elsewhere herein and the consolidated balance sheets and
financial results have been reflected in Australian dollars unless
otherwise stated.
The following table shows the average rate of exchange of the Australian
dollar as compared to the US dollar during the periods indicated:
9 months ended March 31, 1995 A$1.00 = U.S. $0.7340
9 months ended March 31, 1996 A$1.00 = U.S. $0.7803
RESULTS OF OPERATIONS
Nine Months Ended March 31, 1996 vs. Nine Months Ended March 31, 1995.
Revenue was A$156,000 for the nine months ended March 31, 1996 compared to
A$50,000 for the nine months ended March 31, 1995. The two major components
for the nine months ended March 31, 1996 were as follows:
a) interest received of A$86,000 which relates to a debt that was repaid
during the period. Interest had not been accrued on this debt as the
Company had previously believed that it would not be able to collect
this debt.
b) a grant of A$70,000 received from ILZRO in regard to ongoing research.
There were no comparable amounts for the nine months ended March 31,
1995.
Costs and expenses decreased from A$846,000 in the nine months ended March
31, 1995 to A$811,000 in the nine months ended March 31, 1996. The decrease
is as a net result of:
a) the increase in interest expense from A$29,000 for the nine months
ended March 31, 1995 to A$132,000 for the nine months ended March 31,
1996 as a result of an increase in long term interest bearing debt.
b) the decrease in legal, accounting and professional expense from
A$103,000 for the nine months ended March 31, 1995 to A$38,000 for the
nine months ended March 31, 1996 as a result of the reduction of
legal work necessary in respect of the negotiations with affiliates of
Johns Hopkins University for a joint venture to build ETGAR 5 and the
ongoing activities of the Corporation.
c) a decrease in research and development costs from A$97,000 in the nine
months ended March 31, 1995 to A$38,000 for the nine months ended
March 31, 1996 as Solmecs utilised existing laboratory supplies which
reduced the expense of purchasing further supplies.
As a result of the foregoing the loss from operations decreased from
A$796,000 for the nine months ended March 31, 1995 to A$655,000 for the
nine months ended March 31, 1996.
<PAGE>
<PAGE> F-12
The Company realised a foreign exchange loss of A$538,000 for the nine
months ended March 31, 1996 compared to a foreign currency exchange loss of
A$47,000 for the nine months ended March 31, 1995.
In the prior year the Company recorded a gain of A$116,000 on the disposal
of a significant portion of its investment in Solmecs Flo Ice Limited
("SFI") and TFC. During that period the Company entered into an agreement
with the former Managing Director of Solmecs whereby Solmecs was released
from liabilities to SFI, TFC and the former Managing Director of Solmecs
and in exchange the Company agreed to transfer 16.7% in SFI and 24% in TFC
to the former Managing Director of Solmecs. The Company made a decision to
concentrate on the LMMHD project which is the property of Solmecs and did
not wish to invest any funds or the time of its executives on the
activities of SFI and TFC. As a result the Company was prepared to dispose
of the above-mentioned interests in SFI and TFC. There was no such disposal
in fiscal 1996.
A debt owed to a subsidiary company was repaid during the nine months ended
March 31, 1996. The subsidiary company had previously believed that it
would not be able to collect this receivable and had provided for the
amount as a doubtful debt. As a result of the repayment, the subsidiary
company recorded a gain of A$81,000. There was no comparable amount in the
prior period.
As a result the Company recorded a loss before income tax and amortisation
of goodwill of A$1,099,000 for the nine months ended March 31, 1996
compared to a loss of A$727,000 for the nine months ended March 31, 1995.
Amortisation of goodwill amounted to A$400,000 for the nine months ended
March 31, 1996 compared to A$399,000 for the nine months ended March 31,
1995.
As a result of the foregoing the net loss amounted to A$1,499,000 for the
nine months ended March 31, 1996 compared to a net loss of A$1,126,000 for
the nine months ended March 31, 1995.
The Company was not required to pay Australian income tax for the nine
months ended March 31, 1996 and 1995.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 1996 the Company had short term obligations of A$309,000
consisting of:
a) bank overdraft and short term notes of A$17,000
b) accounts payable and accrued expenses of A$292,000
The Company had long term obligations of A$1,790,000 at March 31, 1996.
The Company anticipates that it will be able to defer repayment of certain
of its short term loan commitments until it has sufficient liquidity to
enable these loans to be repaid of which there can be no assurance. In
addition the Company has historically relied upon loans and advances from
affiliates to meet a significant portion of the Company's cash flow
requirements which the Company believes based on discussions with such
affiliates will continue to be available during fiscal 1996 and 1997 of
which there can be no assurance.
<PAGE>
<PAGE> F-13
The Company will still be required to supply funding to Solmecs in order to
complete the development of the next stage of the LMMHD project.
Other than the arrangements noted above the Company has not confirmed any
further arrangements for ongoing funding. As a result the Company may be
required to raise funds for additional debt or equity offerings and/or
increased revenues from operations in order to meet its cash flow
requirements during the forthcoming year of which there can be no
assurance.
<PAGE>
<PAGE> F-14
PART II
Item 1. LEGAL
Not Applicable
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
The Company did not file any Reports on Form 8-K during the nine
months ended March 31, 1996.
<PAGE>
<PAGE> F-15
(FORM 10-Q)
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 authorised.
BAYOU INTERNATIONAL, LTD.
By: /s/ Joseph I. Gutnick
Joseph I. Gutnick, Chairman of
the Board President and Chief
Executive Officer
(Principal Executive Officer)
Dated: July 12, 1996 By: /s/ Peter Lee
Peter Lee, Director and Chief
Financial Officer
(Principal Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE REPORT
ON FORM 10-Q OF BAYOU INTERNATIONAL LTD. FOR THE QUARTER ENDED MARCH 31, 1996
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> Australian dollars
<S> <C>
<PERIOD-TYPE> 9-mos
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> MAR-31-1996
<EXCHANGE-RATE> .7803
<CASH> 120
<SECURITIES> 1
<RECEIVABLES> 89
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 210
<PP&E> 58
<DEPRECIATION> 0
<TOTAL-ASSETS> 934
<CURRENT-LIABILITIES> 309
<BONDS> 1,709
0
0
<COMMON> 9,388
<OTHER-SE> (10,553)
<TOTAL-LIABILITY-AND-EQUITY> 934
<SALES> 0
<TOTAL-REVENUES> 156
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 811
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,099)
<INCOME-TAX> (0)
<INCOME-CONTINUING> (1,099)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,499)
<EPS-PRIMARY> (.03)
<EPS-DILUTED> (.03)
</TABLE>
