<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------------------
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1995
COMMISSION FILE NUMBER 0-5664
ROYAL GOLD, INC.
------------------------------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 84-0835164
------------------------------- ------------------
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
SUITE 1000
1660 WYNKOOP STREET
DENVER, COLORADO 80202-1132
---------------------------------------- ----------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(303) 573-1660
----------------------------------------------------
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
Not Applicable
---------------------------------------------------------------
(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, and
(2) has been subject to such filing requirements for the past 90
days.
YES X NO
--- ---
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
OUTSTANDING AT
CLASS OF COMMON STOCK NOVEMBER 6, 1995
--------------------- -----------------
$.01 PAR VALUE 14,685,976 SHARES
<PAGE>
ROYAL GOLD, INC.
INDEX
PAGE
----
PART I: FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets ................... 3-4
Consolidated Statements of Operations ......... 5
Consolidated Statements of Cash Flows ......... 6-7
Notes to Consolidated Financial
Statements .................................. 8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations ................................... 15
PART II: OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K ............. 18
SIGNATURES ............................................... 19
<PAGE>
ROYAL GOLD, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
-----------------------
September 30, June 30,
1995 1995
-----------------------
Current Assets
Cash and equivalents $ 3,715,098 $ 3,424,094
Marketable securities 5,035,320 5,011,570
Receivables
Trade and other 332,298 171,994
Related party 36,590 35,690
Gold inventory 687,402 183,073
Prepaid expenses and other 85,418 89,907
Deferred income tax benefit 25,000 25,000
--------- ---------
Total current assets 9,917,126 8,941,328
--------- ---------
Property and equipment, at cost
Mineral properties 995,296 554,588
Furniture, equipment and improvements 741,960 732,666
--------- ---------
1,737,256 1,287,254
Less accumulated depreciation,
depletion and amortization (749,692) (703,061)
--------- ---------
Net property and equipment 987,564 584,193
--------- ---------
Other Assets
Restricted investments and other 22,767 22,767
Deferred income tax benefit 725,000 725,000
--------- ---------
Total other assets 747,767 747,767
--------- ---------
$11,652,457 $10,273,288
========== ==========
The accompanying notes are an integral part of
these consolidated financial statements.
3
<PAGE>
ROYAL GOLD, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Continued)
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------
September 30, June 30,
1995 1995
------------------------
Current Liabilities
Accounts payable $ 551,560 $ 145,050
Current portion on notes payable 13,933 27,866
Accrued liabilities
Post retirement benefits 26,400 26,400
Other 14,476 19,161
---------- ---------
Total current liabilities 606,369 218,477
---------- ---------
Post retirement benefit liabilities 115,349 116,949
Commitments and contingencies
(Note 4)
Stockholders' equity
Common stock, $.01 par value,
authorized 30,000,000 shares;
issued 14,701,962 and 14,492,962
shares, respectively 147,020 144,930
Additional paid-in capital 45,474,902 44,314,602
Accumulated deficit (34,611,210) (34,441,697)
---------- ----------
11,010,712 10,017,835
Less treasury stock, at cost
(15,986 and 15,986 shares,
respectively) (79,973) (79,973)
---------- ----------
Total stockholders' equity 10,930,739 9,937,862
---------- ----------
$11,652,457 $10,273,288
========== ==========
The accompanying notes are an integral part of
these consolidated financial statements.
4
<PAGE>
ROYAL GOLD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the three months ended
September 30,
--------------------------
1995 1994
--------------------------
Royalty income $ 710,814 $ 155,000
Consulting revenues 1,000 3,031
Costs and expenses
Costs of operations 48,584 54,442
General and administrative 279,324 192,467
Direct costs of consulting revenues 942 -
Exploration, net 464,540 420,391
Lease maintenance and holding costs 143,168 93,346
Depreciation and depletion 46,631 6,695
------- -------
Total costs and expenses 983,189 767,341
------- -------
Operating loss (271,375) (609,310)
Interest and other income 103,873 65,048
Gain (loss) on marketable securities (2,301) 8,776
Interest expense - (1,359)
------- -------
Net loss $ (169,533) $ (536,845)
======= =======
Net loss per share $ (0.01) $ (0.04)
==== ====
Weighted average shares outstanding 14,481,509 13,838,863
The accompanying notes are an integral part of
these consolidated financial statements.
5
<PAGE>
ROYAL GOLD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the three months ended
September 30,
---------------------------
1995 1994
---------------------------
Cash flows from operating activities
Net income (loss) $ (169,533)$ (534,865)
Adjustments to reconcile net income
(loss) to net cash provided by
(used in) operating activities:
Depreciation and depletion 46,631 6,696
(Gain) loss on marketable securities 2,031 (8,776)
(Increase) decrease in:
Trade and other receivables (161,204) 24,082
Marketable securities (25,781) (1,218)
Inventory (504,329) -
Prepaid expenses and other 4,489 5,621
Increase (decrease) in:
Accounts payable and accrued liabilities 387,892 313,947
Post retirement liabilities (1,600) (10,534)
--------- ---------
Total Adjustments (251,871) 329,818
--------- ---------
Net cash provided by (used in) operating
activities (421,404) (205,047)
--------- ---------
Cash flows from investing activities
Capital expenditures for
property and equipment (450,002) (15,312)
--------- ---------
Net cash provided by (used in) investing
activities (450,002) (15,312)
--------- ---------
(Continued)
The accompanying notes are an integral part of
these consolidated financial statements.
6
<PAGE>
ROYAL GOLD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited)
For the three months ended
September 30,
--------------------------
1995 1994
--------------------------
Cash flows from financing activities
Proceeds from issuance of common stock $ 1,162,410 $ 3,821,406
--------- ---------
Net cash provided by (used in) financing
activities 1,162,410 3,821,406
--------- ---------
Net increase (decrease) in cash and
equivalents 291,004 3,601,047
Cash and equivalents at beginning
of period 3,424,094 1,942,912
--------- ---------
Cash and equivalents at end of period $ 3,715,098 $ 5,543,959
========= =========
The accompanying notes are an integral part of
these consolidated financial statements
7
<PAGE>
ROYAL GOLD, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
For a more complete understanding of the business and operations of Royal
Gold, Inc., please refer to the Report on Form 10-K of Royal Gold, Inc. for
the annual period ended June 30, 1995.
1. PROPERTY AND EQUIPMENT
----------------------
Property and equipment consists of the following components at
September 30, 1995, and June 30, 1995:
September 30, June 30,
1995 1995
--------- ---------
Mineral Properties:
South Pipeline-
Net Profits Interest $ - $ -
South Pipeline-
Capped Royalty 156,445 193,350
Long Valley 600,187 159,478
Camp Bird 120,110 120,110
------- -------
876,742 472,938
Office furniture, equipment
and improvements 110,822 111,255
------- -------
Net property and equipment $ 987,564 $ 584,193
======= =======
As discussed in the following paragraphs, the Company is conducting
activity on substantially all of its mineral properties. The
results of these activities to date have not resulted in any
conclusions that the carrying value of these properties will or
will not be recoverable by charges against income from future
mining operations or a subsequent sale of the properties.
Realization of these costs is dependent upon the success of
exploration programs resulting in the discovery of economically
mineable deposits and the subsequent development or sale of those
deposits or properties, or the production of gold from existing
resources. The outcome of these matters is contingent upon future
events which cannot be determined at this time.
Presented below is a discussion of the status of each of the
Company's significant mineral properties.
8
<PAGE>
A. SOUTH PIPELINE (CRESCENT VALLEY)
The South Pipeline property is a claim block containing
sediment-hosted gold deposits located in Lander County,
Nevada. Pursuant to an agreement dated September 18,
1992, the Company holds a 20% net profits interest in
this project. Production has commenced at the Crescent
Pit portion of the project, while the remainder of the
project is in the exploration and development stage.
Cortez Gold Mines ("Cortez") is the project operator.
Cortez began mining at the Crescent Pit, which is located
on a small portion of the South Pipeline property, in
June 1994. At June 30, 1994, the Company estimated that
the Crescent Pit contained proven reserves of 1,967,000
tons of mill-grade ore, with an average grade of 0.125
oz./ton of gold, resulting in 245,875 contained ounces of
gold. In September 1994, sufficient quantities of this
mill-grade oxide ore had been accumulated to start
processing and gold production. Oxide ore from the
Crescent Pit is commingled with roasted ore from Cortez's
Gold Acres Mine, and both are being processed at the
Cortez Mill; Royal Gold has no interest in the Gold Acres
Mine.
Production began from the Crescent Pit heap leach
operations in August 1995. The heap leach material in
the Crescent Pit contains an estimated 2.2 million tons
of ore with an average grade of 0.029 oz./ton yielding
64,000 ounces of gold, of which an estimated 29,000
ounces of gold are recoverable over 4 to 5 years.
A feasibility study is in progress for the South Pipeline
deposit, which occurs on a larger portion the South
Pipeline Project ground. The Company now expects to
receive portions of a draft feasibility study from Cortez
during the quarter ending December 31, 1995, and a final
feasibility study during the first calendar quarter of
1996.
In addition, Royal Gold has completed prefeasibility
studies of the potential of mining some of the higher
grade material in a deep zone of the deposit by
underground methods. The study suggests that further
investigation of this potential is warranted.
9
<PAGE>
On the basis of the Company's latest estimate of the
deposit, the entire South Pipeline project contains
approximately 91.8 million tons of ore at an average
grade of 0.048 oz./ton. Further detailed economic
analysis is required before the mineral deposit at South
Pipeline can be shown to be commercially viable and to
constitute reserves.
B. SOUTH PIPELINE - CAPPED ROYALTY
In October 1994, the Company purchased an additional
royalty interest on the South Pipeline project from
Western Mining Corporation for $275,000. The royalty
interest is equivalent to a 0.75 percent net smelter
return production royalty, capped at $375,000. To date,
the Company has received payments totalling $161,666.
C. LONG VALLEY
The Long Valley Property, in Mono County, California, is
subject to an agreement between the Company and Standard
Industrial Minerals, Inc. Pursuant to the agreement, the
Company is entitled, through December 31, 1997, to
acquire Standard Industrial Minerals' interest in the
property, upon payment of $1,000,000. The Option
Agreement, which is terminable by the Company at any
time, involves annual option consideration payments which
would total $125,000, if all four such payments were
made. Up to $100,000 of the payments (namely, the
payments that would be made in 1995 and 1996) may be
credited against the option exercise amount.
During the summer and fall of 1994, the Company drilled
a total of 18 vertical and angled holes, by reverse
circulation drilling, to depths of up to 900 feet. Based
on these results and Royal Gold's assessment of data
previously generated by Royal Gold and its predecessors
in interest, Royal Gold now estimates that Long Valley
hosts a mineralized deposit of 49,640,000 tons, with an
average grade of 0.018 ounces of gold per ton, using a
cutoff grade of 0.01 ounces per ton. Applying a cutoff
grade of 0.02 ounces of gold per ton, Royal Gold
estimates that the deposit at Long Valley is 11,825,000
tons, with an average grade of 0.036 ounces of gold per
ton.
10
<PAGE>
Effective July 1, 1995, costs related to Long Valley have
been capitalized pursuant to the determination that the
project is in the development stage. During the quarter
ended September 30, 1995, Royal Gold drilled
approximately 47,360 feet of reverse circulation and
diamond drilling. This drilling has encountered near-
surface mineralization. This mineralization extends to
depths of approximately 300 feet and varies in thickness
from 50 to 150 feet, and the Company believes that the
deposit may be mined as an open pit. Results of this
drilling are currently being evaluated and therefore are
not included in the estimate of mineralization above.
Further drilling, other geologic work, and detailed
economic analysis is required before the mineral deposit
at Long Valley can be shown to be commercially viable and
to constitute reserves.
D. CAMP BIRD
At September 30, 1995, capitalized costs of $120,000
represent the Company's ownership of patented mining
claims. Management believes that these claims have
value for their mineral potential as well as the real
estate.
E. NEVADA EXPLORATION
BUCKHORN SOUTH
Buckhorn South is a block of 265 contiguous claims in
Eureka County Nevada. The Company leases 131 of the
claims, which are subject to a 4% NSR royalty burden, and
fixed minimum royalty obligations of $460,000. The
remaining claims are subject to a 1% NSR royalty.
During the summer and fall of 1994, the Company drilled
nine reverse circulation holes at the Buckhorn South
property, in Eureka County, Nevada. The first five holes
of this program focused on five distinct anomalies that
had been identified by geophysical survey. Anomalous
levels of gold were encountered in each hole, and the
Company conducted further drilling on this property in
December 1994.
11
<PAGE>
In September 1995, a third round of drilling focused on
the new areas of mineralization as well as geophysical
anomalies previously identified by Royal Gold. Fourteen
reverse circulation holes were drilled at depths from 880
to 1,080 feet, at a cost of $283,000. The Company is
awaiting assay results from these holes.
BOB CREEK
Effective December 1, 1994, the Company entered into an
agreement with Santa Fe Pacific Gold Corporation on its
Bob Creek project. The Bob Creek project consists of 103
unpatented mining claims that comprise approximately
three square miles in Eureka County, Nevada. Santa Fe
controls other mineral interests adjacent to the
property.
Under the terms of the agreement, Santa Fe will (1)
assume all of Royal Gold's obligations under two
underlying mining leases; (2) spend a minimum of $150,000
in exploration during the next twelve months, this amount
being guaranteed; and (3) spend progressively greater
amounts on exploration over the succeeding three years.
Royal Gold has reserved a 2% net smelter return
production royalty.
During July and August of 1995, Santa Fe drilled 14
reverse circulation holes at depths ranging from 365 to
960 feet. The Company is awaiting Santa Fe's results of
this program.
F. UNION PACIFIC
Under the Company's exploration agreement with Union
Pacific Minerals, the Company may explore Union Pacific
Lands in Wyoming, Utah and the State Line district in
Wyoming and Colorado. The term of the agreement has been
extended to December 31, 1998, and Royal Gold has secured
the right to exchange or substitute parcels of land up
until December 31, 1995, when it must designate 50,000
acres for more extensive exploration.
Royal Gold must expend a total of $500,000 on the project
by December 31, 1995, of which $434,000 has been spent.
For the full term of the agreement, as amended, Royal
Gold's commitment for exploration and development expense
12
<PAGE>
would be $2.1 million. These commitments are cancelable
in stages. If the Company proceeds past December 31,
1995, $600,000 in additional work expenditures would be
required by December 31, 1997, and if work continues past
December 31, 1997, an additional $1,000,000 must be spent
by December 31, 1998.
2. INCOME TAXES
At June 30, 1995, the Company had an estimated net operating
loss carryforward for federal income tax purposes of
approximately $22.9 million. If not used, the net operating
loss carryforwards will expire by the year 2010.
During the current quarter, the Company sustained a loss from
operations which added to its net operating loss carryforward
position.
Based upon the determination of proven gold reserves at the
Crescent Pit of the South Pipeline Project, management has
estimated that is more likely than not that the Company will
have some net future taxable income within the net operating
loss carryforward period and has established a $750,000
deferred tax asset.
3. INVENTORY
Inventory as of September 30, 1995 relates to in-kind gold
payments received resulting from the Company's Net Profits
Interest at South Pipeline. This inventory is comprised of
1,792.16 ounces of gold, carried at a value of $383.56 per
ounce, for a total of $687,402.
4. CONTINGENCIES
The operations and activities conducted on the properties in
which the Company holds various interests are subject to
various federal, state, and local laws and regulations
governing protection of the environment. These laws are
continually changing, and are generally becoming more
restrictive. Management believes that the Company is in
material compliance with all applicable laws and regulations.
13
<PAGE>
The U.S. Forest Service has now substantially completed
reclamation of the Goldstripe project site, but it is
possible, depending on the results of post-reclamation
groundwater monitoring, that additional reclamation work may
be required. The Company may be called upon to dedicate
additional capital resources to this activity.
5. GENERAL
Certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted.
Therefore, it is suggested that these financial statements be
read in connection with the financial statements and the notes
included in the Company's audited consolidated financial
statements as of June 30, 1995.
The information in this report reflects all adjustments which,
in the opinion of management, are necessary to express a fair
statement of results for the periods presented. All such
adjustments are of a normal recurring nature. The results of
operations for the period ended September 30, 1995 are not
necessarily indicative of the results to be expected for the
full fiscal year.
Certain accounts in the prior period financial statements have
been reclassified for comparative purposes to conform with the
presentation in the current period financial statements.
14
<PAGE>
ROYAL GOLD, INC.
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Royal Gold is engaged in the acquisition, exploration, development,
and sale of gold properties and in the acquisition of gold royalty
interests.
The Company's primary business strategy is to create and acquire
royalty and other carried ownership interests in gold mining
properties through exploration and development activity (and
subsequent transfer of the operating interest in the subject
properties to other firms), and through the direct acquisition of
such interests. Substantially all the Company's revenues are and
can be expected to be derived from royalty interests, rather than
from mining operations conducted by the Company.
At September 30, 1995, the Company had a working capital surplus of
$9,856,490. Current assets were $9,917,126, compared to current
liabilities of $606,369, for a current ratio of 16 to 1. This
compares to current assets of $8,941,328, and current liabilities
of $218,477, at June 30, 1995, resulting in a current ratio of 41
to 1. The Company is now receiving its full 20% net profits
royalty interest from the Crescent Pit mill-grade ore, and gold
production has commenced from the Crescent Pit heap leach material,
where the Company is receiving its pre-payback interest. During
the first three months of fiscal 1996, the Company continued to
incur losses from operations.
The Company's liquidity needs are generally being met from its
available cash resources, royalty income, interest income, cash
payments from companies seeking to explore the Company's
properties, earnings from consulting services, and the issuance of
common stock. During the first quarter of fiscal 1996, the Company
earned $704,564 in royalties on South Pipeline. This $704,564 is
comprised of $654,329 related to the Company's Net Profits Interest
and $50,325 in payment on its capped royalty. The Company earned
$103,873 in interest income on its cash and marketable securities
portfolio. This marketable securities portfolio is invested in
U.S. treasury notes with maturities of up to fifteen months, has a
cost basis of $5,008,906, and a market value of $5,035,320. The
Company also received $1,162,410 from the exercise of warrants.
Management believes its cash resources will be adequate to fund
planned operations for the foreseeable future. The Company has
continued to aggressively explore its properties and anticipates
continued exploration activities for the remainder of the year.
The Company's long-term viability is ultimately dependent upon the
successful development and operation of the Company's mineral
15
<PAGE>
interests. It can be anticipated, because of the nature of the
business, that exploration on many of these properties will prove
unsuccessful and that the Company will terminate its interest in
such properties. As significant results are generated at any such
property, the Company will reevaluate the property, and may
substantially increase or decrease the level of expenditures on the
particular property.
The Company anticipates total expenditures for fiscal 1996 for
general and administrative expenses to be approximately $1,000,000,
of which $279,000 has been spent to date. The Company also
anticipates expenditures for exploration and holding costs to be
approximately $950,000 (including amounts spent under the Union
Pacific Agreement), of which $608,000 has been spent. Because of
the seasonal nature of the Company's activities, exploration and
holding costs are disproportionately incurred during the quarter
ended September 30. Capital expenditures are estimated at
$705,000, of which $441,0000 has been spent. On a prospective
basis these amounts could increase or decrease significantly, based
on exploration results and decisions about releasing or acquiring
additional properties, among other factors.
16
<PAGE>
RESULTS OF OPERATIONS
- ---------------------
FOR THE QUARTER ENDED SEPTEMBER 30, 1995, COMPARED TO THE QUARTER
ENDED SEPTEMBER 30, 1994
For the quarter ended September 30, 1995, the Company reported a
net loss of $169,533, or $.01 per share, as compared to a net loss
of $536,845, or $.04 per share, for the quarter ended September 30,
1994.
Royalty income for the current quarter of $710,814, compared to
$155,000 for the prior year, relates to Royal Gold's interest in
the South Pipeline property, from which the Company did not receive
net profits royalties in the first quarter of last fiscal year.
For the quarter ended September 30, 1994, royalties were
principally attributable to advance minimum payments.
General and administrative costs of $279,324 for the current
quarter have increased from $192,467 for the quarter ended
September 30, 1994, primarily because of increased third party
expenses related to Congressional and industry-sponsored
initiatives to revise the mining law, and higher public reporting
compliance costs.
Exploration expenditures of $465,540 for the quarter ended
September 30, 1995, increased from $420,391 for the quarter ended
September 30, 1994, primarily due to increased drilling and
geophysical activity in Nevada offset by the capitalization of
$441,00 of Long Valley expenditures in the current quarter.
Lease maintenance and holding costs increased from $93,346 for the
quarter ended September 30, 1994, to $143,146 for the quarter ended
September 30, 1995, due to the acquisition of six new exploration
properties.
Depreciation, depletion and amortization increased from $6,695 for
the quarter ended September 30, 1994, to $46,631 for the quarter
ended September 30, 1995, primarily due to depletion expense
related to the South Pipeline Project capped royalty.
Interest and other income increased from $65,048 for the quarter
ended September 30, 1994, to $103,873 for the quarter ended
September 30, 1995, primarily due to an increase in funds available
for investment.
17
<PAGE>
PART II: OTHER INFORMATION
Item 6: Exhibits and Reports on Form 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the three-
month period ended September 30, 1995.
18
<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.
ROYAL GOLD, INC.
(Registrant)
Date: November 14, 1995 By: /s/ Stanley Dempsey
-------------------
Stanley Dempsey
Chairman of the Board and
Chief Executive Officer
Date: November 14, 1995 By: /s/ Thomas A. Loucks
--------------------
Thomas A. Loucks
Treasurer
(chief financial officer)
19
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> SEP-30-1995
<CASH> 3,715,098
<SECURITIES> 5,035,320
<RECEIVABLES> 368,888
<ALLOWANCES> 0
<INVENTORY> 687,402
<CURRENT-ASSETS> 9,917,126
<PP&E> 1,737,256
<DEPRECIATION> 749,692
<TOTAL-ASSETS> 11,652,457
<CURRENT-LIABILITIES> 606,369
<BONDS> 0
<COMMON> 454,621,922
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 11,652,457
<SALES> 0
<TOTAL-REVENUES> 711,814
<CGS> 0
<TOTAL-COSTS> 983,189
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (169,533)
<INCOME-TAX> 0
<INCOME-CONTINUING> (169,533)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (169,533)
<EPS-PRIMARY> (0.01)
<EPS-DILUTED> (0.01)
</TABLE>
