<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(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
--------------
[ ] 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: 0-16939
JONES SPACELINK INCOME/GROWTH FUND 1-A, LTD.
- --------------------------------------------------------------------------------
Exact name of registrant as specified in charter
Colorado #84-1069504
- --------------------------------------------------------------------------------
State of Organization IRS employer I.D. #
9697 East Mineral Avenue, P. O. Box 3309, Englewood, Colorado 80155-3309
------------------------------------------------------------------------
Address of principal executive office
(303) 792-9191
-----------------------------
Registrant's telephone number
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
------- -------
<PAGE>
JONES SPACELINK INCOME/GROWTH FUND 1-A, LTD.
--------------------------------------------
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
------------------------
ASSETS
------
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
----------- ------------
<S> <C> <C>
CASH $ 77,106 $ 313,553
TRADE RECEIVABLES, less allowance for
doubtful receivables of $12,586 and $14,206 at
March 31, 1996 and December 31, 1995, respectively 160,449 226,616
INVESTMENT IN CABLE TELEVISION PROPERTIES:
Property, plant and equipment, at cost 15,872,971 15,532,204
Less - accumulated depreciation (6,674,899) (6,366,025)
----------- -----------
9,198,072 9,166,179
Franchise costs and other intangible assets, net of
accumulated amortization of $12,368,110 at
March 31, 1996 and $11,965,114 at
December 31, 1995, respectively 8,074,450 8,477,446
----------- -----------
Total investment in cable
television properties 17,272,522 17,643,625
DEPOSITS, PREPAID EXPENSES AND OTHER ASSETS 108,329 53,546
----------- -----------
Total assets $17,618,406 $18,237,340
=========== ===========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
2
<PAGE>
JONES SPACELINK INCOME/GROWTH FUND 1-A, LTD.
--------------------------------------------
(A Limited Partnership)
UNAUDITED BALANCE SHEETS
------------------------
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
-------------------------------------------
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
----------- ------------
<S> <C> <C>
LIABILITIES:
Credit facility and capitalized lease
obligations $11,594,444 $11,605,582
Accounts payable to Jones Intercable, Inc. 111,692 -
Trade accounts payable and accrued liabilities 380,234 446,688
Accrued distributions to partners 315,657 315,657
Subscriber prepayments and deposits 55,778 51,473
----------- -----------
Total liabilities 12,457,805 12,419,400
----------- -----------
PARTNERS' CAPITAL (DEFICIT):
General Partner -
Contributed capital 1,000 1,000
Distributions (94,481) (91,324)
Accumulated deficit (75,051) (71,634)
----------- -----------
(168,532) (161,958)
----------- -----------
Limited Partners -
Contributed capital, net of related commissions, syndication
costs and interest (51,276 units outstanding at
March 31, 1996 and December 31, 1995) 21,875,852 21,875,852
Distributions (9,353,680) (9,041,180)
Accumulated deficit (7,193,039) (6,854,774)
----------- -----------
5,329,133 5,979,898
----------- -----------
Total partners' capital (deficit) 5,160,601 5,817,940
----------- -----------
Total liabilities and partners'
capital (deficit) $17,618,406 $18,237,340
=========== ===========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited balance sheets.
3
<PAGE>
JONES SPACELINK INCOME/GROWTH FUND 1-A, LTD.
--------------------------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF OPERATIONS
----------------------------------
<TABLE>
<CAPTION>
For The Three Months
Ended March 31,
-----------------------
1996 1995
---------- ----------
<S> <C> <C>
REVENUES $1,753,490 $1,652,465
COSTS AND EXPENSES:
Operating expenses 917,661 869,322
Management fees and allocated administrative
costs from the General Partner 206,912 222,673
Depreciation and amortization 717,582 796,148
---------- ----------
OPERATING LOSS (88,665) (235,678)
---------- ----------
OTHER INCOME (EXPENSE):
Interest expense (252,958) (211,483)
Other, net (59) 1,065
---------- ----------
NET LOSS $ (341,682) $ (446,096)
========== ==========
ALLOCATION OF NET LOSS:
General Partner $ (3,417) $ (4,461)
========== ==========
Limited Partners $ (338,265) $ (441,635)
========== ==========
NET LOSS PER LIMITED
PARTNER UNIT $(6.60) $(8.61)
========== ==========
WEIGHTED AVERAGE NUMBER OF
LIMITED PARTNER UNITS
OUTSTANDING 51,276 51,276
========== ==========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
4
<PAGE>
JONES SPACELINK INCOME/GROWTH FUND 1-A, LTD.
--------------------------------------------
(A Limited Partnership)
UNAUDITED STATEMENTS OF CASH FLOWS
----------------------------------
<TABLE>
<CAPTION>
For The Three Months
Ended March 31,
---------------------
1996 1995
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(341,682) $(446,096)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 717,582 796,148
Decrease in trade accounts receivable, net 66,167 8,371
Decrease (increase) in deposits, prepaid expenses and
other assets (60,495) 2,554
Decrease in trade accounts payable and accrued
liabilities and subscriber prepayments
and deposits (62,149) (101,800)
Increase (decrease) in advances from Jones Intercable, Inc. 111,692 (14,642)
--------- ---------
Net cash provided by operating activities 431,115 244,535
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net (340,767) (200,674)
--------- ---------
Net cash used in investing activities (340,767) (200,674)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in accrued distributions - 312,500
Distributions to partners (315,657) (312,500)
Repayment of borrowings (11,138) (16,941)
--------- ---------
Net cash used in financing activities (326,795) (16,941)
--------- ---------
INCREASE (DECREASE) IN CASH (236,447) 26,920
CASH, AT BEGINNING OF PERIOD 313,553 171,944
--------- ---------
CASH, AT END OF PERIOD $ 77,106 $ 198,864
========= =========
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest Paid $ 246,668 $ 231,431
========= =========
</TABLE>
The accompanying notes to unaudited financial statements
are an integral part of these unaudited statements.
5
<PAGE>
JONES SPACELINK INCOME/GROWTH FUND 1-A, LTD.
--------------------------------------------
(A Limited Partnership)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
--------c-------------------------------
(1) This Form 10-Q is being filed in conformity with the Securities and
Exchange Commission requirements for unaudited financial statements and does not
contain all of the necessary footnote disclosures required for a fair
presentation of the Balance Sheets and Statements of Operations and Cash Flows
in conformity with generally accepted accounting principles. However, in the
opinion of management, this data includes all adjustments, consisting only of
normal recurring accruals, necessary to present fairly the financial position of
Jones Spacelink Income/Growth Fund 1-A, Ltd. (the "Partnership") at March 31,
1996 and December 31, 1995, and its results of operations and cash flows for the
three month periods ended March 31, 1996 and 1995. Results of operations for
these periods are not necessarily indicative of results to be expected for the
full year.
The Partnership, a Colorado limited partnership, was formed on May 12,
1988, pursuant to a public offering of limited partner interests. Jones
Intercable, Inc. ("Intercable"), a Colorado corporation, is the general partner
and manager of the Partnership. Intercable and certain of its subsidiaries also
own and operate cable television systems for their own account and for the
account of other managed limited partnerships.
The Partnership owns and operates the cable television systems serving the
areas in and around the communities of Bluffton, Decatur, Monroe, Auburn,
Butler, Uniondale, Waterloo and Garett, and the unincorporated areas of Wells,
Allen, Noble, Adams and DeKalb Counties, all in the State of Indiana (the
"Bluffton systems"). In addition, the Partnership owns the cable television
system serving the communities of Lake Geneva and areas of Walworth County, all
in the State of Wisconsin (the "Lake Geneva System") and the cable television
system serving the communities of Ripon and areas of Fond-du-Lac County, all in
the State of Wisconsin (the "Ripon System"). As discussed below, the Lake Geneva
System and the Ripon System were sold on April 11, 1996.
(2) On April 11, 1996, the Partnership sold to Jones Cable Holdings, Inc., a
wholly owned subsidiary of Intercable, the Lake Geneva System for a purchase
price of $6,345,667, subject to normal closing adjustments, and the Ripon System
for a purchase price of $3,712,667, subject to normal closing adjustments. The
purchase prices were determined by averaging three separate independent
appraisals of each of the cable television systems sold. No vote of the limited
partners of the Partnership was required in connection with these transactions
because the sales of the Lake Geneva System and the Ripon System, individually
and collectively, did not represent the sale of all or substantially all of the
Partnership's assets. Pursuant to the terms of an amendment to the Partnership's
credit agreement, the Partnership distributed $5,000,000 of the proceeds from
the sales of the Lake Geneva System and the Ripon System to the limited
partners, and the balance of the sale proceeds, approximately $5,058,000, has
been applied to reducing the Partnership's outstanding indebtedness, which at
March 31, 1996 totaled $11,594,444. The limited partners of the Partnership
received, in April 1996, approximately $98 per unit, or $195 for each $1,000
invested in the Partnership. Limited partners of the Partnership have received a
total of $560 for each $1,000 invested in the Partnership taking into account
the prior distributions to limited partners. Because these distributions have
not yet returned to limited partners 100 percent of the capital contributed by
them to the Partnership plus their preferred return, the General Partner was not
entitled to receive a distribution on the sales of the Lake Geneva and the Ripon
System.
6
<PAGE>
The pro forma effect of the sale of the Lake Geneva System and the Ripon
System on the results of the Partnership's operations for the periods ended
March 31, 1996 and 1995, assuming the transaction had occurred at the beginning
of the year, is presented in the following unaudited tabulation:
<TABLE>
<CAPTION>
For the Period Ended March 31, 1996
-------------------------------------
Pro Forma
As Reported Adjustments Pro Forma
----------- ----------- ----------
<S> <C> <C> <C>
Revenues $1,753,490 $(509,946) $1,243,544
========== ========= ==========
Operating Income (Loss) $ (88,665) $ 177,232 $ 88,567
========== ========= ==========
Net Loss $ (341,682) $ 224,007 $ (117,675)
========== ========= ==========
</TABLE>
<TABLE>
<CAPTION>
For the Period Ended March 31, 1995
-------------------------------------
Pro Forma
As Reported Adjustments Pro Forma
----------- ----------- ----------
<S> <C> <C> <C>
Revenues $1,652,465 $(487,549) $1,164,916
========== ========= ==========
Operating Loss $ (235,678) $ 178,021 $ (57,657)
========== ========= ==========
Net Loss $ (446,096) $ 274,236 $ (171,860)
========== ========= ==========
</TABLE>
(3) Intercable manages the Partnership and receives a fee for its services
equal to five percent of the gross revenues of the Partnership, excluding
revenues from the sale of cable television systems or franchises. Management
fees paid to the General Partner by the Partnership for the three month periods
ended March 31, 1996 and 1995 were $87,675 and $82,608, respectively.
The Partnership reimburses the General Partner for certain allocated
general and administrative expenses. These expenses represent the salaries and
related benefits paid for corporate personnel, office rent and related
facilities expense. Such personnel provide engineering, marketing,
administrative, accounting, legal and investor relations services to the
Partnership. Allocations of personnel costs are based primarily on actual time
spent by employees of the General Partner and certain of its subsidiaries with
respect to each partnership managed. Remaining expenses were allocated based on
the pro rata relationship of the Partnership's revenues to the total revenues of
all systems owned or managed by the General Partner and certain of its
subsidiaries. Included in the costs allocated from the General Partner and
certain of its subsidiaries are expenses allocated to the General Partner from
affiliated entities for information processing and certain other administrative
services. The General Partner believes that the methodology used in allocating
general and administrative costs is reasonable. General and administrative
expenses allocated to the Partnership by the General Partner were $119,237 and
$140,065 for the three month periods ended March 31, 1996 and 1995,
respectively.
(4) A primary objective of the Partnership is to provide quarterly cash
distributions to the partners, principally from cash flow from operations
remaining after principal and interest payments and the creation of any reserves
necessary for the operation of the Partnership. The Partnership declared such
distribution to be paid to the partners in the amount of $315,657 for the three
months ended March 31, 1996. The distribution was primarily from the first
quarter 1996 cash flow. The first quarter distribution will be paid in May 1996.
The Partnership will continue quarterly cash distributions; however, the level
of such distributions will be determined on a quarter-by-quarter basis.
7
<PAGE>
JONES SPACELINK INCOME/GROWTH FUND 1-A, LTD.
--------------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
---------------------------------------
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
---------------------------------------------
FINANCIAL CONDITION
- -------------------
For the three months ended March 31, 1996, the Partnership generated cash
from operating activities totaling $431,115, which is available to fund capital
expenditures and non-operating costs. During the first three months of 1996, the
Partnership purchased plant and equipment for its cable television systems
totaling approximately $341,000. Approximately 43 percent of these expenditures
were for service drops to homes. Approximately 29 percent were for plant
extensions. The remainder of these expenditures were for various enhancements
throughout all of the Partnership's cable television systems. The capital
expenditures were funded primarily from cash flow from operations. Anticipated
capital expenditures for the remainder of 1996 are estimated to be approximately
$646,000, and will be financed primarily from borrowings from the Partnership's
credit facility. It is estimated that approximately 35 percent of these
expenditures will be for service drops to homes, approximately 38 percent for
plant extensions.
On April 11, 1996, the Partnership sold to Jones Cable Holdings, Inc., a
wholly owned subsidiary of Intercable, the Lake Geneva System for a purchase
price of $6,345,667, subject to normal closing adjustments, and the Ripon System
for a purchase price of $3,712,667, subject to normal closing adjustments. The
purchase prices were determined by averaging three separate independent
appraisals of each of the cable television systems sold. No vote of the limited
partners of the Partnership was required in connection with these transactions
because the sales of the Lake Geneva System and the Ripon System, individually
and collectively, did not represent the sale of all or substantially all of the
Partnership's assets. Pursuant to the terms of an amendment to the Partnership's
credit agreement, the Partnership distributed $5,000,000 of the proceeds from
the sales of the Lake Geneva System and the Ripon System to the limited
partners, and the balance of the sale proceeds, approximately $5,058,000, has
been applied to reducing the Partnership's outstanding indebtedness, which at
March 31, 1996 totaled $11,594,444. The limited partners of the Partnership
received, in April 1996, approximately $98 per unit, or $195 for each $1,000
invested in the Partnership. Limited partners of the Partnership have received a
total of $560 for each $1,000 invested in the Partnership taking into account
the prior distributions to limited partners. Because these distributions have
not yet returned to limited partners 100 percent of the capital contributed by
them to the Partnership plus their preferred return, the General Partner was not
entitled to receive a distribution on the sales of the Lake Geneva System and
the Ripon System. Refer to Note 2 of the Notes to Unaudited Financial Statements
for the pro forma effect of the sale of the Lake Geneva System and the Ripon
System on the results of the Partnership's operations for the periods ended
March 31, 1996 and 1995, assuming the transaction had occurred at the beginning
of the periods.
In March 1996, the Partnership amended its $14,000,000 credit facility such
that, on the date of the sale of the Lake Geneva System and Ripon System, the
amount of the credit facility decreased to $8,000,000. This credit facility will
have a final maturity date of December 31, 1997. At March 31, 1996, $11,500,000
was outstanding; however, as a result of the sale of the Lake Geneva System and
Ripon System, approximately $5,058,000 of the sale proceeds were used in April
1996 to reduce the amount outstanding to approximately $6,442,000. Interest on
the outstanding principal balance is at the Partnership's option of Prime plus
1/4 percent or the London Interbank Offered Rate plus 1-1/4 percent. The
effective interest rates on outstanding obligations as of March 31, 1996 and
1995 were 6.53 percent and 7.57 percent, respectively.
A primary objective of the Partnership is to provide quarterly cash
distributions to the partners, principally from cash flow from operations
remaining after principal and interest payments and the creation of any reserves
necessary for the operation of the Partnership. The Partnership declared such
distribution to be paid to the partners in the amount of $315,657 for the three
months ended March 31, 1996. The distribution was primarily from the first
quarter 1996 cash flow. The first quarter distribution will be paid in May 1996.
The Partnership will continue quarterly cash distributions; however, the level
of such distributions will be determined on a quarter-by-quarter basis.
The General Partner presently believes cash flow from operations and
available borrowings from the Partnership's revolving credit facility will be
sufficient to fund capital expenditures and other liquidity needs of the
Partnership over the near-term.
8
<PAGE>
REGULATION AND LEGISLATION
- --------------------------
The Telecommunications Act of 1996 (The "1996 Act"), which became law on
February 8, 1996, substantially revised the Communications Act of 1934, as
amended, including the Cable Communications Policy Act of 1984 and the Cable
Television Consumer Protection and Competition Act of 1992 (the "1992 Cable
Act"), and has been described as one of the most significant changes in
communications regulation since the original Communications Act of 1934. The
1996 Act is intended, in part, to promote substantial competition in the
telephone local exchange and in the delivery of video and other services. As a
result of the 1996 Act, local telephone companies (also known as local exchange
carriers or "LECs") and other service providers are permitted to provide video
programming, and cable television operators are permitted entry into the
telephone local exchange market. The FCC is required to conduct rulemaking
proceedings over the next several months to implement various provisions of the
1996 Act.
Among other provisions, the 1996 Act modified the 1992 Cable Act by
deregulating the cable programming service tier of large cable operators
effective March 31, 1999 and the cable programming service tier of "small" cable
operators in systems providing service to 50,000 or fewer subscribers effective
immediately. The 1996 Act also revised the procedures for filing cable
programming service tier rate complaints and adds a new effective competition
test.
It is premature to predict the specific effects of the 1996 Act on the
cable industry in general or the Partnership in particular. The FCC will be
undertaking numerous rulemaking proceedings to interpret and implement the 1996
Act. It is not possible at this time to predict the outcome of those proceedings
or their effect on the Partnership.
RESULTS OF OPERATIONS
- ---------------------
Revenues of the Partnership for the three months ended March 31, 1996
totaled $1,753,490 compared to $1,652,465 for the comparable period in 1995, an
increase of $101,025, or approximately 6 percent, over the amount reported in
1995. This increase in revenue was primarily the result of increases in the
number of basic subscribers, which accounted for approximately 56 percent of the
increase in revenues. The number of basic subscribers totaled 20,140 at March
31, 1996 compared to 19,261 at March 31, 1995, an increase of 879, or
approximately 5 percent. Increases in premium service revenue accounted for
approximately 24 percent of the increase in revenue. No other individual factor
was significant to the increase in revenues.
Operating expenses consist primarily of costs associated with the
administration of the Partnership's cable television systems. The principal cost
components are salaries paid to system personnel, programming expenses,
professional fees, subscriber billing costs, rent for leased facilities, cable
system maintenance expenses and consumer marketing expenses.
Operating expenses increased $48,339, or approximately 6 percent, to
$917,661 for the three months ended March 31, 1996 from $869,322 for the
comparable period in 1995. Operating expenses represented approximately 52
percent and 53 percent, respectively, of revenues for the three month periods
ended March 31, 1996 and March 31, 1995. This increase was primarily the result
of increases in programming costs. No other individual factor significantly
affected the increase in operating expenses for the periods discussed.
Management fees and allocated administrative costs from the General Partner
decreased $15,761, or approximately 7 percent, to $206,912 for the quarter ended
March 31, 1996 from $222,673 for the comparable period in 1995. This decrease
was primarily the result of decreases in allocated expenses from the General
Partner.
Depreciation and amortization expense decreased $78,566, or approximately
10 percent, to $717,582 for the quarter ended March 31, 1996 from $796,148 for
the comparable period in 1995. The decrease was a result of the maturation of
the Partnership's tangible asset base.
Operating loss decreased $147,013, or approximately 62 percent, to $88,665
for the three months ended March 31, 1996 from $235,678 for the comparable
period in 1995. This decrease was a result of the increase in revenues and
decreases in management fees and allocated administrative expenses from the
General Partner and depreciation and amortization exceeding the increases in
operating expenses.
The cable television industry generally measures the financial performance
of a cable television system in terms of cash flow or operating income before
depreciation and amortization. The value of a cable television system is often
9
<PAGE>
determined using multiples of cash flow. This measure is not intended to be a
substitute or improvement upon the items disclosed on the financial statements,
rather it is included because it is an industry standard. Operating income
before depreciation and amortization increased $68,447, or approximately 12
percent, to $628,917 for the three months ended March 31, 1996 from $560,470 for
the comparable period in 1995. The increase was due to the increase in revenues
and decrease in management fees and allocated administrative expenses from the
General Partner exceeding the increase in operating expenses.
Interest expense increased $41,475, or approximately 20 percent, to
$252,958 for the three months ended March 31, 1996 from $211,483 for the
comparable period in 1995. This increase was primarily the result of higher
outstanding balances on interest bearing obligations during 1996.
Net loss decreased $104,414, or approximately 23 percent, to $341,682 for
the three months ended March 31, 1996 from $446,096 for the comparable period in
1995. This decrease was primarily a result of the factors discussed above.
10
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
a) Exhibits
27) Financial Data Schedule
b) Reports on Form 8-K
On April 11, 1996, Jones Spacelink Income/Growth Fund 1-A,
Ltd. (the "Partnership"), a Colorado limited partnership, sold to
Jones Cable Holdings, Inc. ("JCH"), a wholly owned subsidiary of
Jones Intercable, Inc., the general partner of the Partnership, the
cable television system operating in and around Lake Geneva,
Wisconsin (the "Lake Geneva System") for a purchase price of
$6,345,667, subject to normal closing adjustments, and the cable
television system operating in and around Ripon, Wisconsin (the
"Ripon System") for a purchase price of $3,712,667, subject to
normal closing adjustments.
11
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
JONES SPACELINK INCOME/GROWTH FUND 1-A, LTD.
BY: JONES INTERCABLE, INC.
General Partner
BY: /S/ KEVIN P. COYLE
----------------------------------------
Group Vice President/Finance
(Principal Financial Officer)
Dated: May 13, 1996
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 77,106
<SECURITIES> 0
<RECEIVABLES> 160,449
<ALLOWANCES> (12,586)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 15,872,971
<DEPRECIATION> (6,674,899)
<TOTAL-ASSETS> 17,618,406
<CURRENT-LIABILITIES> 863,361
<BONDS> 11,594,444
<COMMON> 0
0
0
<OTHER-SE> 5,160,601
<TOTAL-LIABILITY-AND-EQUITY> 17,618,406
<SALES> 0
<TOTAL-REVENUES> 1,753,490
<CGS> 0
<TOTAL-COSTS> 1,842,155
<OTHER-EXPENSES> 59
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 252,958
<INCOME-PRETAX> (341,682)
<INCOME-TAX> 0
<INCOME-CONTINUING> (341,682)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (341,682)
<EPS-PRIMARY> (6.607)
<EPS-DILUTED> (6.607)
</TABLE>
