SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------------------
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1999 Commission file number 0-18260
--------------------
THE NEW WORLD POWER CORPORATION
(Exact name of registrant as specified in its charter)
--------------------
DELAWARE 52-1659436
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
740 ST MAURICE, SUITE 604
MONTREAL, CANADA H3C 1L5
(514) 390-1333
(Address and telephone number of principal executive offices)
1
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 1999
-----------------------------
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 0-18260
The New World Power Corporation
(Exact name of registrant as specified in its charter)
Delaware 52-1659436
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
740 St Maurice, suite 604, Montreal, Quebec, Canada H3C 1L5
(Address of principal executive offices (Zip Code)
Registrant's telephone number, including area code (514) 390-1333
---------------------------
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange
Title of each class on which registered
None Not Applicable
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $.01 par value
(Title of class)
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 No X.
The number of shares outstanding of the registrant's Common Stock as of
June 30, 1999 was 3,797,912.
2
<PAGE>
Table of Contents
PART I FINANCIAL INFORMATION
Page
Item 1. Financial Statements (Introduction) 1
Consolidated Balance Sheet as of June 30, 1999 (Unaudited)
and December 31, 1998 2
Consolidated Statements of Operations for the Quarter
Ended June 30, 1999 and 1998 (Unaudited) 3
Consolidated Statements of Operations for the Six Month
Ended June 30, 1999 and 1998 (Unaudited) 4
Consolidated Statements of Cash Flows for the Six Months
Ended June 30, 1999 (Unaudited) 5
Notes to Interim Consolidated Financial Statements (Unaudited) 6
Item 2. Management's Discussion and Analysis 10
PART II OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 2. Changes in Securities and Use of Proceeds 12
Item 3. Defaults Upon Senior Securities 12
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
Signatures S-1
Exhibit Index
Exhibit 27 -Financial Data Schedule
<PAGE>
PART 1 FINANCIAL INFORMATION
I. INTRODUCTION
The New World Power Corporation ("New World" or the "Company") owns and
operates electric power generating facilities. The Company has traditionally
focused and will continue to focus on renewable energy, including wind farms,
hydroelectric plants and wind/diesel hybrids, with power output sold to major
utility companies under long term contracts. The Company conducts business
internationally.
The Company is organized as a holding company. Each electric power
generating facility or discreet group of facilities is owned by a separate
corporate entity. Executive management, legal, accounting, financial and
administrative matters are provided at the holding company level. Operations are
conducted at the subsidiary level.
The Company currently operates two wholly owned subsidiaries, Michigan
based Wolverine Power Corporation ("Wolverine") and The New World Power Company
(Caton Moor) Limited ("Caton Moor") in the UK. Wolverine is a 10.5-megawatt
hydroelectric plant and Caton Moor is a 3-megawatt wind farm. The Company also
owns a 25% interest in a hydroelectric power plant now under construction in
Fujian, China ("Fujian").
This report contains "forward looking statements" within the purview of
the federal securities laws. There are numerous risks and uncertainties
surrounding the Company and management's business plan. There can be no
assurance that the Company will be successful in implementing its business plan,
nor can it be determined with certainty whether the Company will have sufficient
capital to fund operations. In addition, there can be no assurance, however,
that the Company can maintain profitability or complete any acquisitions on
terms acceptable to the Company, if at all.
<PAGE>
THE NEW WORLD POWER CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
ASSETS June 30, December 31,
1999 1998
---- ----
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 103,474 $ 170,543
Cash restricted in use (Note 3) 152,702 173,035
Accounts receivable 250,464 426,891
Other current assets 29,082 30,267
----------- -----------
TOTAL CURRENT ASSETS 535,722 800,736
Property, plant and equipment, net 3,161,854 3,269,460
Investments (Note 6) - 129,643
Goodwill, net of accumulated amortization 347,453 352,453
Deferred project costs 187,184 187,170
----------- -----------
3,696,491 3,938,726
TOTAL ASSETS $ 4,232,213 $ 4,739,462
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued liabilities $ 262,684 $ 391,948
Due to related parties (Note 6) 263,502 373,161
Current portion of settlement obligations 237,000 375,000
----------- -----------
TOTAL CURRENT LIABILITIES 763,186 1,140,109
Long-term portion of due to related parties
(Note 6) 756,847 730,632
Long-term portion of settlement obligations
(Note 7) 182,969 275,000
Other non-current liabilities 1,275,000 1,275,000
----------- -----------
2,214,816 2,280,632
TOTAL LIABILITIES 2,978,002 3,420,741
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock $.01 par value, 40,000,000
shares authorized, 3,797,912 and 3,552,512
shares issued and outstanding 37,979 35,525
Currency translation adjustments (71,101) 134,029
Additional paid-in capital 83,210,751 83,151,595
Accumulated deficit (81,923,418) (82,002,428)
----------- -----------
TOTAL STOCKHOLDERS' EQUITY 1,254,211 1,318,721
----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 4,232,213 $ 4,739,462
=========== ===========
See accompanying notes to interim consolidated condensed financial statements.
</TABLE>
2
<PAGE>
THE NEW WORLD POWER CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter ended Quarter ended
June 30, June 30,
1999 1998
---- ----
OPERATING REVENUE $ 316,146 $ 570,688
COST OF OPERATIONS 161,481 197,869
---------- ----------
GROSS PROFIT 154,665 372,819
Project development expenses 9,145 15,982
Selling, general and administrative expenses 154,362 404,370
---------- ----------
OPERATING INCOME (8,842) (47,533)
OTHER INCOME (EXPENSE):
Interest expense (34,368) (34,913)
Interest income 475 6,094
Other 84,922 308,854
---------- ----------
TOTAL OTHER INCOME (EXPENSE) 51,029 280,035
INCOME (LOSS) BEFORE TAXES 42,187 232,502
Provision for income taxes 1,275 8,432
---------- ----------
INCOME (LOSS) FROM CONTINUING OPERATIONS 40,912 224,070
NET INCOME (LOSS) $ 40,912 $ 224,070
========== ==========
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE:
Net earnings (loss) from continuing
operations available to common
stockholders $0.01 $0.06
NET EARNINGS (LOSS)
ATTRIBUTABLE TO COMMON SHARES $0.01 $0.06
===== =====
AVERAGE NUMBER OF BASIC COMMON SHARES
OUTSTANDING 3,797,912 3,426,512
========== ==========
See accompanying notes to interim consolidated condensed financial statements.
3
<PAGE>
THE NEW WORLD POWER CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Six Months ended Six Months ended
June 30, June 30,
1999 1998
---- ----
OPERATING REVENUE $ 773,815 $1,475,046
COST OF OPERATIONS 312,784 597,190
---------- ----------
GROSS PROFIT 461,031 877,856
Project development expenses 30,680 59,321
Selling, general and administrative
expenses 397,678 777,295
----------- ----------
OPERATING INCOME 32,673 41,240
OTHER INCOME (EXPENSE):
Interest expense (66,120) (88,821)
Interest income 1,618 8,732
Other 113,339 335,073
----------- ----------
TOTAL OTHER INCOME (EXPENSE) 48,837 254,984
INCOME (LOSS) BEFORE TAXES 81,510 296,224
Provision for income taxes 2,500 14,007
----------- ----------
INCOME (LOSS) FROM CONTINUING OPERATIONS 79,010 282,217
NET INCOME (LOSS) $ 79,010 $ 282,217
=========== ==========
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE:
Net earnings (loss) from continuing
operations available to common
stockholders $0.02 $0.08
NET EARNINGS (LOSS)
ATTRIBUTABLE TO COMMON SHARES $0.02 $0.08
===== =====
AVERAGE NUMBER OF BASIC COMMON SHARES
OUTSTANDING 3,797,912 3,426,512
=========== ==========
See accompanying notes to interim consolidated condensed financial statements.
4
<PAGE>
THE NEW WORLD POWER CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months ended
June 30,
1999
----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) 79,010
Adjustments to reconcile net earnings to net cash used
in operating activities:
Depreciation and amortization 134,623
Amortization of goodwill 2,500
Other, net 140,241
Amortization of deferred costs (14)
Change in assets and liabilities, net of effect of
acquisitions/disposals:
(Increase) decrease in accounts receivable 176,427
(Increase) decrease in other current assets (1,185)
Increase (decrease) in accounts payable and
accrued liabilities (129,264)
(Decrease) increase in non-current liabilities -
NET CASH FLOWS PROVIDED (USED)
IN OPERATING ACTIVITIES 402,338
---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of investment (129,643)
Capital expenditures (27,017)
---------
NET CASH FLOWS (USED IN) PROVIDED
BY INVESTING ACTIVITIES (156,660)
---------
CASH FLOWS FROM FINANCING ACTIVITIES:
(Decrease) in due to related parties (103,049)
Payment of settlement obligation (230,031)
Proceeds from issuance of common stock -
(Increase) in restricted cash 20,333
---------
NET CASH FLOWS (USED IN) FINANCING ACTIVITIES (312,747)
---------
Net change in cash and equivalents (67,069)
Cash and equivalents at beginning of period 170,543
---------
CASH AND EQUIVALENTS AT END OF PERIOD $ 103,474
---------
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest expense $ 52,120
Interest income 1,618
See accompanying notes to interim consolidated condensed financial statements.
<PAGE>
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The New World Power Corporation ("the Company") was incorporated
in the State of Delaware in 1989. The Company is a global
developer and producer of electricity generated from wind energy,
solar energy and hydropower. The Company also develops,
manufactures and markets electrical gathering systems powered by
renewable resources and provides related services.
Basis Of Presentation
In the opinion of management, the accompanying unaudited interim
consolidated condensed financial statements of The New World Power
Corporation ("the Company") and its subsidiaries contain all
adjustments necessary to present fairly the Company's financial
position as of June 30, 1999 and December 31, 1998 and the results
of operations for the quarter ended June 30, 1999 and 1998 and the
results of operations for the six months ended June 30, 1999 and
1998 and cash flows for the six month period ended June 30, 1999.
The accounting policies followed by the Company are set forth in
Note 1 to the Company's consolidated financial statements included
in its Annual Report on Form 10-K for the year ended December 31,
1998, which is incorporated herein by reference. Specific
reference is made to that report for a description of the
Company's securities and the notes to the consolidated financial
statements included therein.
The results of operations for the six month period and quarter
ended June 30, 1999 are not necessarily indicative of the results
to be expected for a full year.
NOTE 2 - FILINGS WITH UNITED STATES SECURITY AND
EXCHANGE COMMISSION ("SEC"):
The Company did not file in a timely manner certain reports
required by the Securities and Exchange Act of 1934, which could
jeopardize its status as a public company.
NOTE 3 - CASH RESTRICTED IN USE
As a result of the restructuring of the long-term indebtedness in
December 1997, as well as the Synex International financing,
certain cash was restricted to making payments for long-term
obligations. (See Note 6 for Due to Related Parties).
1
<PAGE>
NOTE 4 - PLANT, PROPERTY AND EQUIPMENT
Property, plant and equipment consists of the following as of June
30, 1999 (000's omitted):
Useful Life
(Years)
-------
Power generation facilities and equipment:
Hydroelectric $3,375 40
Wind:
Owned 4,352 25
Land 401
------
Total 8,128
Less accumulated depreciation and
amortization 4,966
------
$3,162
======
NOTE 5 - EARNINGS PER SHARE
In 1997, the Company adopted Statement of Financial Accounting
Standards No. 128 ("SFAS 128"), "Earnings Per Share". SFAS 128
requires the disclosure of basic and diluted earnings per share
(EPS). Basic EPS is calculated using income available to common
shareholders divided by the weighted average number of common
shares outstanding during the period. Diluted EPS is similar to
basic EPS except that the weighted average number of common
shares, outstanding is increased to include the number of
additional common shares that would have been outstanding if the
dilutive potential common shares, such as options, had been
issued. All prior year earnings per share have been restated in
accordance with the provisions of SFAS 128 and did not have a
material effect on historically disclosed earnings per share.
Options to purchase 309,000 shares of common stock at $.30 were
outstanding as well as the convertible debt during 1999 and 1998
but were not included in the computation of the diluted EPS
because the strike price was greater than the average market price
of the common shares.
2
<PAGE>
NOTE 6 - DUE TO RELATED PARTIES:
Amounts due to related parties consists of the following at June
30, 1999 (000's omitted):
(a) Convertible Subordinated Debentures Flemings Group $ 0
(b) Convertible Subordinated Debentures Flemings Group 520
(c) Synex International 500
------
Total 1,020
Less current portion 263
------
Long-term portion $ 756
======
NOTE 7 - LITIGATION
In January 1999, the Company and plaintiff reached a settlement
which provided for Dwight Kuhns ("plaintiff") to receive a $75,000
payment upon signing of the agreement and a $25,000 payment due
March 1, 1999. The Company made both of those payments. In
addition, the Company executed a promissory note in the principal
amount of $275,000 with interest accruing at 9% per annum. Under
the promissory note, the Company is required to make a $30,000
payment April 1, 1999 (paid), a $60,000 payment on July 1, 1999
(paid), a $60,000 payment on October 1, 1999 and the remaining
principal and interest on December 31, 1999. Further the Company
executed a mortgage note in the principal amount of $275,000 with
interest payable at 7.5%, secured by a third position on
Wolverine. Payments under that mortgage note are to be made in six
equal installments due on June 30 and December 31, of each year in
the amount of approximately $52,000. The Company also issued
150,000 unregistered shares to plaintiff and a warrant to purchase
75,000 shares of the Company's common stock at $2 per share.
In November 1998, the Company filed suit in California against the
legal firm that represented it in the Dwight Kuhns et al
litigation. The allegations include, among other things,
misrepresentation of the Company in the legal proceedings
pertaining to the professional handling of that litigation. The
Company is seeking unspecified damages.
3
<PAGE>
NOTE 8 - COMMITMENTS AND CONTINGENCIES
(A) Consumers Power Company Power Purchase Contract
The rates under this power purchase contract were subject to
renegotiation on December 31, 1995. The Company has abandoned its
attempt to renegotiate its contract with Consumers Power Company
and, as a result, its contract is continued on a year to year
basis under the conditions of the original contract.
(B) Performance Bond
In February 1999, the Company entered into an agreement to sell
its 60% interest in the Salto Andersen Project to an Argentine
company for approximately $7,000. The agreement provides for an
option period to complete the transaction and resolve all
outstanding regulatory issues within 135 days from January 27,
1999. Due to political elections in Argentina, resolution of
regulatory issues has not been received yet by the Argentine
Company. However, management believes that the Argentine company
will purchase the project shortly, thereby eliminating any and all
potential contingencies to the Company under the performance bond.
4
<PAGE>
ITEM 2. MANAGEMENT DISCUSSION AND PLAN OF OPERATIONS
SHORT TERM STRATEGY
Over the next 12 months New World intends to apply its available
resources to maintain positive earnings from its operating projects, while
further attempting to consummate at least two targeted acquisitions in its core
markets.
The Company's current profitability results from management's steady
reductions in overhead, debt and development costs, combined with increased
focus on existing project operations and production. The Company believes that
this approach will remain the foundation of New World's short-term strategy. But
while focused on its bottom line through projects in operation and construction,
the Company will also use its in-place personnel to negotiate small and
mid-sized wind farm and hydroelectric plant acquisitions in North America and
Europe.
Using its existing resources, personnel and market presence, the Company
has identified a variety of acquisition candidates. Showing perhaps the most
promise are mid sized wind farms in the UK which have recently completed their
guaranteed 10 year term of highly subsidized tariffs. The Company believes that
any new acquisitions would be funded by debt or a hybrid security. This
financing instrument would minimize the "dilution effect" to existing
shareholders. Upon successfully achieving a reasonable market price per share,
the Company may look to the equity market for additional capital.
Additionally, the historic profitability of New World's Wolverine hydro
plant indicates the Company's expertise in low cost hydroelectric plant
operations in North America. And as North American power purchase tariffs have
been reduced over the past few years by the forces of continued deregulation,
similar to the events driving the UK wind market, the Company believes there are
a variety of hydro plant acquisitions available to a focused and capable buyer.
New World will apply its hydro acquisition program in the Northeast, Mid West
and Canada, where it believes there are attractive investment opportunities
available in a generally overlooked sector.
In summary, the Company will continue to maintain its efforts to hold
down overheads and generate profits from existing operations. It also expects to
complete at least 2 acquisitions within the next 12 months: a windfarm in the UK
of up to 10 megawatts, and a hydro project in the Northeast US or Canada, also
expected to be in the 10 megawatt range. There can be no assurance, however,
that the Company can maintain profitability or complete any acquisition on terms
acceptable to the Company, if at all. In addition, there can be no assurance
that the Company will be able to close any financings to enable it to make
acquisitions.
Both acquisitions should be achievable at very attractive multiples of
EBITDA. And due to New World's demonstrated low cost operations and management
abilities, these new project additions should add significant incremental
profits without increased costs, thereby maximizing earnings per share.
5
<PAGE>
General
The results of operations for the six months ended June 30, 1999 compared
to the six months ended June 30, 1998 reflect continuity at the operating level,
however the effects of the corporate restructuring are quite notable at the
selling, general and administrative expense level.
Revenues
The revenues decreased to $773,815 in 1999 from $1,475,046 in 1998 due
primarily to the UK operations decrease in price per kWh as a result of the end
of the premium pricing structure of the NFFO power purchase contract. The
revenues in the United States remained constant between the years.
Seasonality of Project Revenues
Hydroelectric and wind farm electric generating revenues are seasonal.
The spring in North America is the time of maximum hydroelectric output, while
fall and winter also experience reasonable flows; the summer months are dry and
generally unproductive. The best season wind season in the United Kingdom is
typically from October to March. Both hydroelectric and wind power production
can also vary from year to year based on changes in meteorological conditions.
Cost of operations
The costs of operations decreased in the six months period ended June
30, 1999 to $312,784, as compared to $597,190 during the previous year' six
moonth period, primarily as a result of the company's downsizing efforts in the
UK as well as some reductions in the US.
Project development expense
The Company continued curtailing its development efforts for the six
months ended June 30, 1999 to $30,680, as compared to $59,321 during the
previous year's corresponding six month period, in line with the strategy of
reducing the development risk formulated in the 1996 restructuring plan.
Selling, general and administrative
These expenses were reduced during the six months ended June 30, 1999
to $397,678, as compared to $777,295 during the previous year's six months
period. The 1998 expenses included the fees and expenses associated with the
repayment of project indebtedness and asset sales.
6
<PAGE>
Other income and expenses
During the six months ended June 30, 1999, the Company recorded other
income-net of $113,339, as compared to income of $335,073 during the previous
year. The six month ended June 30, 1999 other income is a result of asset sales,
while the previous year's six month period's other income is the result of gains
on 1998 sales, primarily the gain of approximately $300,000 from the sale of the
Texas Renewable Energy project.
Interest expenses for the six month period ended June 30, 1999 were
reduced to $66,120 from the previous year's six month period of $88,821, in line
with the debt repayment, offset by the interest on the settlement obligations.
7
<PAGE>
PART II
ITEM 1. LEGAL PROCEEDINGS
On November 12, 1996, Dwight Kuhns, ex president and brother of the
former Chairman of the Board, commenced an action against New World in the
Superior Court, Alameda County, California. The action sought damages under a
consulting agreement that Mr. Kuhns had entered into with the Company at the
start of January, 1996, following the termination of his employment with the
Company on December 31, 1995.
After trial, the plaintiff was awarded $967,000 in contractual damages
and $1,000,000 in punitive damages on July 24, 1998. The Company filed a notice
of appeal of the judgment. In addition, the Company filed a malpractice action
against its counsel of record from inception to November 8, 1997.
While the judgment was under appeal, the Company was unable to post the
required bond with the court to stay the execution of the judgment. The
plaintiff has obtained several garnishee orders against the Company and has
caused the court to issue subpoenas for the Company and its officers. Wishing to
avoid the distraction from the operations and delays in implementation of the
new business plan, the Company entered into a settlement agreement with the
plaintiff on January 1, 1999. An agreement was made that upon payment of
$375,000 and delivery of a $275,000 note together with 150,000 common shares and
75,000 warrants to purchase shares at $2 each, the Company will obtain full
satisfaction of the judgement.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
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.
Exhibits
Exhibit Description
Number
27 Financial Data Schedule
8
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
THE NEW WORLD POWER CORPORATION
August 16, 1999 By: /s/ Vitold Jordan
.............................
Vitold Jordan
Chief Executive Officer
August 16, 1999 By: /s/ Frederic A. Mayer
.............................
Frederic A. Mayer
Chief Financial Officer
9
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements of New World Power included in Form 10-QSB for the six
months ended June 30, 1999 and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-mos
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 103,474
<SECURITIES> 0
<RECEIVABLES> 250,464
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 535,722
<PP&E> 3,161,854
<DEPRECIATION> 134,623
<TOTAL-ASSETS> 4,232,213
<CURRENT-LIABILITIES> 763,186
<BONDS> 0
0
0
<COMMON> 37,979
<OTHER-SE> 1,216,232
<TOTAL-LIABILITY-AND-EQUITY> 4,232,213
<SALES> 773,815
<TOTAL-REVENUES> 773,815
<CGS> 312,784
<TOTAL-COSTS> 428,358
<OTHER-EXPENSES> (114,957)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 66,120
<INCOME-PRETAX> 81,510
<INCOME-TAX> 2,500
<INCOME-CONTINUING> 79,010
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 79,010
<EPS-BASIC> .02
<EPS-DILUTED> .02
</TABLE>
