U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM l0-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 2000
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Transition Period From_____________ to_____________
Commission File Number 0- 18974
Jordan American Holdings, Inc.
------------------------------
(Exact name of registrant as specified in its charter)
Florida 65-0142815
------- ----------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification Number)
2155 Resort Drive, Suite 108, Steamboat Springs, CO 80487
---------------------------------------------------------
(Address of principal executive offices)
(970) 879-1189
--------------
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 filing requirements
for the past 90 days. Yes [X] No [ ]
As of March 31, 2000, 10,421,266 shares of the registrant's common stock were
issued and outstanding.
<PAGE>
JORDAN AMERICAN HOLDINGS, INC.
AND SUBSIDIARIES
TABLE OF CONTENTS
PART I
ITEM 1 FINANCIAL INFORMATION
Consolidated Balance Sheets 3
Consolidated Statements of Operations 4
Consolidated Statements of Cash Flows 5
Notes to Consolidated Financial Statements 6
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS
Results of Operations 10
Liquidity and Capital Resources 11
Risk Factors, Trends & Uncertainties 11
2
<PAGE>
PART I.
ITEM 1.
FINANCIAL INFORMATION
JORDAN AMERICAN HOLDINGS, INC.
AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
ASSETS 2000 1999
------------ ------------
CURRENT ASSETS
<S> <C> <C>
Cash & cash equivalents $ 1,101,210 $ 580,757
Marketable securities 1,174,085 607,882
Investment advisory fee receivable - net 669,647 846,907
Deposit with clearing broker 25,000 25,000
Notes receivable - officers 37,054 26,556
Prepaid expenses 44,222 50,678
Other receivable 77,957 108,625
------------ ------------
Total current assets 3,129,175 2,246,405
------------ ------------
FIXED ASSETS
Property and equipment, at cost, net of accumulated
depreciation and amortization of $141,330 and
$133,005 respectively 79,904 88,229
------------ ------------
OTHER ASSETS
Boston Restaurant Debentures 500,000 500,000
Strategic Options Limited Partnership 27,058 27,058
Note Receivable - Senior Yellow
Pages, Inc. 150,000 0
------------ ------------
Total other assets 677,058 527,058
------------ ------------
TOTAL ASSETS $ 3,886,137 $ 2,861,692
============ ============
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 21,808 $ 29,418
Accrued expenses 447,380 299,847
Deferred revenue 61,990 35,300
Software license payable 51,558 58,721
------------ ------------
Total current liabilities 582,736 423,286
------------ ------------
STOCKHOLDERS' EQUITY
8% cumulative, convertible, non-voting preferred stock
$0.01 par valve; authorized 5,000,000 shares 3,000,000
shares issued and outstanding 30,000 30,000
Common Stock, $0.001 par value; authorized 20,000,000
shares; 10,421,266 shares issued and outstanding at
March 31, 2000 and December 31, 1999 10,421 10,421
Additional paid in capital 4,502,853 4,502,853
Accumulated deficit (1,239,873) (2,104,868)
------------ ------------
Total stockholders' equity 3,303,401 2,438,406
------------ ------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 3,886,137 $ 2,861,692
============ ============
</TABLE>
See accompanying notes to consolidated financial statements
3
<PAGE>
JORDAN AMERICAN HOLDINGS, INC.
AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
MARCH 31,
----------------------------
2000 1999
------------ ------------
REVENUES
<S> <C> <C>
Commission income $ 130,478 $ 128,437
Investment advisory fees 1,128,129 270,633
Realized equity gain from investing and trading 0 2,332
Unrealized equity gain from investing and trading 225,189 19,548
------------ ------------
Total revenues 1,483,796 420,950
Selling, general and administrative expenses 655,764 339,125
------------ ------------
Operating income (loss) 828,032 81,825
------------ ------------
Other income (expenses):
Interest and dividend income 32,365 30,059
Other income 4,595 30,322
------------ ------------
Total other income (expense), net 36,960 60,381
------------ ------------
Net income (loss) 864,992 142,206
Dividends on preferred stock 60,000 60,000
------------ ------------
Net income (loss) attributable to common stock $ 804,992 $ 82,206
============ ============
Basic earnings (loss) per common share $ 0.08 $ 0.01
============ ============
Diluted earnings (loss) per common share $ 0.08 $ 0.01
============ ============
Weighted-average number of common shares outstanding:
Basic 10,421,266 10,421,266
============ ============
Diluted 10,421,266 10,421,266
============ ============
</TABLE>
See accompanying notes to consolidated financial statements
4
<PAGE>
JORDAN AMERICAN HOLDINGS, INC.
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
FOR THREE MONTHS ENDED MARCH 31,
2000 1999
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income (loss) $ 864,992 $ 142,206
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation 8,325 5,826
Unrealized (gain) loss from investing and trading (225,189) (19,548)
Realized (gain) loss from investing and trading 0 (2,332)
Changes in operating assets and liabilities:
Investment advisory fee receivable - net 177,259 (76,549)
Marketable securities (341,014) 0
Prepaid expenses 6,457 (3,782)
Other receivable 30,669 93,911
Notes receivable - officers (10,497) 0
Accounts payable and accrued expenses 139,924 (41,112)
Deferred revenue 26,690 529
Software license payable (7,163) 72,290
------------ ------------
Net cash provided by operating activities 670,453 171,439
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in corporate stock - restricted 0 (56,250)
Investment in Senior Yellow Pages, Inc. (150,000) 0
Sale of IMPACT Management Growth Portfolio 0 57,092
Capital expenditures 0 (66,000)
------------ ------------
Net cash used in investing activities (150,000) (65,158)
------------ ------------
Net increase in cash and cash equivalents 520,453 106,281
Cash and cash equivalents, beginning of period 580,757 495,622
------------ ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,101,210 $ 601,903
============ ============
Supplemental disclosure of cash flow information:
Interest paid $ 1,120 $ 1,666
============ ============
</TABLE>
See accompanying notes to consolidated financial statements
5
<PAGE>
JORDAN AMERICAN HOLDINGS, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - ORGANIZATION
Organization
- ------------
Jordan American Holdings, Inc. (JAHI/the Company) was incorporated in Florida in
May 1989. The Company also does business under the name of Equity Assets
Management (EAM). The Company provides investment advisory and portfolio
management services to individual investors, pooled accounts and its mutual fund
with its customers located substantially in the United States. JAHI is
registered as an investment advisor under the Investment Advisor Act of 1940.
The Company owns 100% of the issued and outstanding common stock of IMPACT
Financial Network, Inc. (IFNI) and IMPACT Administrative Services, Inc. (IASI).
IASI provides operational and administrative support to Impact Management
Investment Trust (see Note 2). JAHI's customer investment transactions are
primarily brokered through IFNI, a registered broker-dealer in securities acting
as a non-clearing introducing broker.
The accompanying consolidated financial statements include the accounts of JAHI
and its subsidiaries; all significant intercompany transactions have been
eliminated during consolidation.
NOTE 2 - IMPACT MANAGEMENT INVESTMENT TRUST
The Company formed Impact Management Investment Trust (the Trust), which is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company (mutual fund). Impact Total Return Portfolio
(formerly Impact Management Growth Portfolio) (the Portfolio) is the initial
Series of the Trust. JAHI is the investment advisor of the Trust and IFNI is the
primary distributor of the Trust.
As investment advisor of the Portfolio, the Company receives an annual
investment advisory fee equal to 1.25% of the Portfolio's average daily net
assets. Of this amount, 60 basis points is paid to the sub advisor of the
Portfolio.
NOTE 3 - NOTES RECEIVABLE
The Company owns a $500,000 variable rate convertible subordinated debenture
from Boston Restaurant Associates, Inc. (BRAI). The principal balance of the
debenture is due and payable on December 31, 2011. The debenture has a
conversion price of $1.25 per share and bears interest at a rate of 12% for 1999
and 14% thereafter.
In connection with the purchase of the debenture, the Company also acquired, at
no cost, warrants to subscribe for the purchase from BRAI up to 500,000 fully
paid and nonassessable shares of BRAI's common stock. The purchase rights
represented by the warrants are exercisable by the
6
<PAGE>
JORDAN AMERICAN HOLDINGS, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
NOTE 3 - NOTES RECEIVABLE (CONTINUED)
Company, in whole or in part, at any time through December 31, 2006, at an
exercise price of $3.00 per share.
The carrying value of the above notes receivable approximates the fair market
value as estimated by management, after considering such factors as current
interest rates, liquidity, conversion terms and the credit worthiness of the
borrowers. The Company's management has estimated the value of the BRAI warrants
to be $-0- at March 31, 2000 and 1999. This determination was made considering
primarily the current value of the underlying common stock and the current
illiquidity of the warrants.
The Company provided "angel" financing through a convertible subordinated bridge
note to Senior Yellow Pages, Inc. and its affiliates (SYP), an internet based
eldercare infomediary. The principal balance of the note is due and payable upon
the earlier of (1) the receipt by SYP or any affiliate of aggregate gross
proceeds of at least $1,000,000 raised in an offering (the "First Round
Financing") of SYP's Series A Convertible Preferred Stock or (2) redemption in
cash on or prior to January 30, 2001.
As an inducement to the company providing bridge financing to SYP, SYP agreed to
issue to the company a 4% equity interest in SYP on a fully diluted basis,
through future rounds of private financing.
The note bears interest at a rate of 10% per annum.
NOTE 4 - STOCKHOLDERS' EQUITY
At March 31, 2000 and December 31, 1999, the Company had stock warrants
outstanding entitling the warrant holder to acquire 1,113,000 shares of common
stock at $2.50 per share expiring June 5, 2000. The Company also has outstanding
Underwriter Warrants related to the initial public offering entitling the
Company's president to purchase 44,545 units (five shares of common stock and
five stock warrants; two warrants entitle the holder to purchase one share of
common stock for $3.00 per share) of the Company at a price of $12.90 per unit
expiring at dates ranging from September 27, 2000 to January 8, 2001.
JAHI has authorized 5,000,000 shares of $0.01 par value preferred stock. The
Board of Directors is authorized to issue preferred stock in one or more series,
to determine the rights thereto, and to fix the number of shares on any series
of preferred stock and the designation of any such series.
The Company issued 3,000,000 shares of 8% cumulative, convertible, non-voting
preferred stock to a customer of EAM in a private placement offering. In
connection with this offering, 750,000
7
<PAGE>
JORDAN AMERICAN HOLDINGS, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
NOTE 4 - STOCKHOLDERS' EQUITY (CONTINUED)
shares of common stock was given to the Company to distribute to the preferred
shareholder by three officers of the Company for no additional consideration.
The preferred stock is convertible at the rate of one share of common stock for
each $3.50 in face amount ($1.00) of the preferred stock converted. If at any
time the closing bid price of the common stock for the period of thirty
consecutive trading days exceeds $5.25 per share, then, in such event, the
Company may, upon 30 days written notice, automatically convert the preferred
stock to common stock at the rate of $3.50 in face amount of the shares
converted. The preferred stock has a liquidation preference of $1.00 per share
plus accrued and unpaid dividends. Semi-annual dividends in arrears on preferred
stock at March 31, 2000 amounted to $360,000.
In connection with the preferred stock offering, the Company obtained "key man"
life insurance on the Company's president, in the amount of $3,750,000. The
holder of the preferred stock is the direct beneficiary and will be redeemed at
the rate of $1.25 per share, in exchange for such shares.
NOTE 5 - RELATED PARTY TRANSACTIONS
The Company has a loan to two officers bearing interest at a rate of 8% per
annum in the amount of $37,054 and $26,556 at March 31, 2000 and 1999,
respectively.
In 1994, the Company's president established the Jordan Index Fund, L.P. (the
"Fund"). The Fund engages in the speculative trading of stock index futures
contracts, and may occasionally trade in equity securities and stock options.
The Fund is administered by its general partner, Jordan Assets, Ltd. Jordan
Assets, Ltd. is not a subsidiary of JAHI, although JAHI is registered as a
principal of Jordan Assets, Ltd. with the Commodity Futures Trading Commission.
All trading decisions for the Fund are made by Jordan Assets, Ltd. Certain
administrative functions are provided to the Fund by JAHI in return for the fees
earned by Jordan Assets, Ltd. No such fees were earned during the first quarter
of 2000 and 1999.
NOTE 6 - FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISK, UNCERTAINTIES AND
CONTINGENCIES
In the normal course of business, the Company's client activities through its
clearing broker involve the execution, settlement, and financing of various
client securities transactions. These activities may expose the Company to
off-balance sheet risk. In the event the client fails to satisfy its
obligations, the Company may be required to purchase or sell financial
instruments at prevailing market prices in order to fulfill the client's
obligations.
8
<PAGE>
JORDAN AMERICAN HOLDINGS, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
NOTE 6 - FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISK, UNCERTAINTIES AND
CONTINGENCIES (CONTINUED)
In the Company's investment activities, the Company purchases securities for its
own account and may incur losses if the market value of the securities decline
subsequent to March 31, 2000.
The Company's revenues are primarily derived from a percentage of the assets
under management and performance fees based on the appreciation of those assets.
Assets under management are impacted by both the extent to which the Company
attracts new, or loses existing, clients and the appreciation or depreciation of
the U.S. and international equity and fixed income markets. A downturn in
general economic condition could cause investors to cease using the services of
the Company.
The Company's financial instruments, including cash receivables and deposits,
are carried at amounts which approximate fair value. The Company's marketable
securities are carried at the March 31, 2000 market value. Payables and other
liabilities are carried at amounts which approximate fair value.
The Company has a substantial portion of its assets on deposit with banks and
brokers. Assets deposited with banks and brokers are subject to credit risk. In
the event of a bank's or broker's insolvency, recovery of Company assets on
deposit may be limited to account insurance or other protection afforded such
deposits.
In connection with a late 1997 examination of the Company, the SEC raised
certain issues regarding possible violations of the federal securities laws in
connection with the private placement of debentures of Boston Restaurant
Associates, Inc. The Company and the SEC are currently in settlement
negotiations regarding this matter. Management of the Company does not expect
the resolution of this matter to have any material effect on the Company's
financial condition, results of operations or business.
These interim period consolidated financial statements, including the notes
thereto, are condensed and do not include all disclosures required by generally
accepted accounting principles. Such interim period consolidated financial
statements should be read in conjunction with the Company's audited consolidated
financial statements which are included in the Company's 1999 Form 10-KSB which
is contained in the Company's 1999 Annual Report to shareholders and is
available without charge upon request to JAHI Investor Relations, 2155 Resort
Drive, Suite 108, Steamboat Springs, Colorado, 80487, (970) 879-1189; Fax: (970)
879-1272; E-mail: [email protected]
9
<PAGE>
PART 1, ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS
JORDAN AMERICAN HOLDINGS, INC.
AND SUBSIDIARIES
Safe Harbor for Forward-Looking Statements
Information found in this report contains forward-looking implications which may
differ materially from actual results due to the success, or lack thereof, of
JAHI's management decisions, marketing and sales effectiveness, investment
decisions, and the management of clients' stock portfolios and pooled
investments as influenced by market conditions, Federal Reserve Board policy,
economic trends, political developments, domestic and international events and
other factors. There can be no guarantee that any forward-looking implications
discussed and/or referenced in this report will have any impact, positive or
negative, upon the earnings, value and/or operations of the Company.
Results of Operations
The Company's net income for the three months ended March 31, 2000, of $864,922
is 608% greater than its net income of $142,206 for the same period in 1999.
This increase stems from higher revenues from performance fee based managed
accounts. The Company had net income attributable to common stock for the three
months ended March 31, 2000 of $804,992 or $0.08 per common share compared to
$82,206 or $0.01 per common share for the same period in 1999.
From February 1993 until June 30, of 1998, the Company made semi-annual cash
dividend payments on its cumulative convertible non-voting preferred stock at a
rate of 8% per annum, to the extent permitted by Florida law. There were no
payments in 1999, and there are currently no projected annual payments for 2000.
Nonetheless, net income attributable to common stock for the period reflects the
dividends on the cumulative preferred stock. Dividends in arrears as of December
31, 1999 were $240,000.
For the three months ended March 31, 2000, revenues totaled $1,483,796 compared
to revenues of $420,950 for the same period in 1999, an increase of
approximately 252%. This increase is due primarily to significantly increased
revenues from performance fee based managed accounts and in unrealized equity
gains from investing and trading.
Investment advisory fees increased for the three months ended March 31, 2000, to
$1,128,129 from $270,633 for the same period in 1999, an increase of
approximately 317%. This increase is due primarily to higher revenues from
performance fee based managed accounts. Those revenues were fueled by
exceptional management performance results in those accounts.
Unrealized equity gains from investing and trading increased for the three
months ended March 31, 2000 to $225,189 from $19,548 for the same period in
1999, an increase of approximately 1052%. This increase is due primarily to
significantly higher valuation amounts at March 31, 2000 for two of the
Company's holdings compared to the previous year.
10
<PAGE>
PART 1, ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS
JORDAN AMERICAN HOLDINGS, INC.
AND SUBSIDIARIES
(CONTINUED)
Total other income was $36,960 for the three months ended March 31, 2000,
compared to $60,381 for the same period in 1999. This decrease was primarily due
to the receipt of a one-time reimbursement of fees in the previous year.
Selling, General, and Administrative ("SG&A") expenses of $655,764 were incurred
during the three month period ended March 31, 2000, compared to similar SG&A
expenses of $339,125 for the same period in 1999, a increase of approximately
93%. SG&A expenses were higher due primarily to an increase in fees due to
investment advisory representatives, which stem from an increase in the
investment advisory fee revenues.
Liquidity and Capital Resources
At March 31, 2000, the Company had cash and cash equivalents of $1,101,210
versus $580,757 at December 31, 1999. This increase was due primarily to the net
income for the three months ended March 31, 2000 and the net income from the
previous three quarters.
Accounts payable and accrued expenses were $21,808 and $447,380 respectively at
March 31, 2000, compared to $29,418 and $299,847 respectively at December 31,
1999. The increase in accrued expenses is primarily due to the increased fees
due investment advisory representatives. Accruals are based upon expenses
incurred and/or as determined by management's best estimate based upon the
Company's annual budget.
Cash flows provided by operating activities for the three months ended March 31,
2000, were $670,453 compared to $171,439 for the same period in 1999 due
primarily to changes in net income for the three month ended March 31, 2000.
During the three month period ended March 31, 1999 the Company acquired 45,000
shares of restricted stock through a private placement from The Internet
Advisory Corporation at $1.25 per share. This investment was restricted and
could not be sold until March, 2000. The market value of The Internet Advisory
Corporation's common stock was $2.59 per share at May 12, 2000.
Management of the Company believes short-term cash need will continue to be met
through management fees, brokerage revenues, cash reserves and/or liquidation of
marketable securities.
Risk Factors, Trends & Uncertainties
Total assets under management and corporate earnings may substantially increase
or decrease due to (1) stock market conditions, including the onset of a
long-term declining, or bear market; (2) performance returns as influenced by
the Company's investment advisory decisions, operational expense and
effectiveness of marketing efforts; (3) competition from mutual funds, other
investment
11
<PAGE>
PART 1, ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS
JORDAN AMERICAN HOLDINGS, INC.
AND SUBSIDIARIES
(CONTINUED)
advisory companies and insurance companies; (4) interest rate changes and other
actions taken by the Federal Reserve Board; (5) domestic and international
economic and Political conditions, high inflation and/or recession; (6) trends
in business and finance; (7) international events; (8) acts of terrorism; and
(9) other factors.
The Company is registered with and subject to regulation by the SEC under the
Investment Advisers Act of 1940 and, where applicable, under state advisory
laws. The Company is also subject to regulation by the SEC under the Investment
Company Act of 1940. The Company's affiliate broker-dealer is registered as a
broker-dealer with the SEC under the Securities Exchange Act of 1934 (the
"Exchange Act") and, where applicable, under state securities laws, and is
regulated by the SEC, state securities administrators and the NASD. IASI is
registered as a transfer agent under the Exchange Act and is regulated by the
SEC. The privately held affiliate that manages the Fund is regulated by the
Commodity Futures Trading Commission and the National Futures Association.
By law, investment advisors and broker-dealers are fiduciaries and are required
to serve their clients' interests with undivided loyalty. There is a potential
conflict of interest because of the affiliation between the Company and IFNI.
While the Company believes that its existing relationships are in compliance
with applicable law and regulations, because of this potential conflict of
interest, the SEC may closely examine these relationships.
Many aspects of the financial services industry involve substantial liability
risks, including exposure under federal and state securities laws in connection
with the distribution of securities and investment advisor activities. Although
the Company currently maintains errors and omission insurance policies insuring
against this risk, such insurance does not necessarily protect the Company
against loss in all events.
There can be no assurance that any changes to existing laws, regulations or
rulings promulgated by government entities having jurisdiction over the
Company's investment advisory, broker-dealer, investment company and commodities
trading business will not have an adverse effect upon the business of the
Company.
In connection with a late 1997 examination of the Company, the SEC raised
certain issues regarding possible violations of the federal securities laws in
connection with the private placement of debentures of Boston Restaurant
Associates, Inc. The Company and the SEC are currently in settlement
negotiations regarding this matter. Management of the Company does not expect
the resolution of this matter to have any material effect on the Company's
financial condition, results of operations or business.
12
<PAGE>
SIGNATURES
In accordance with 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.
JORDAN AMERICAN HOLDINGS, INC.
Dated: May 15, 2000 By: /s/ Wallace Neal Jordan
-------------------------
Wallace Neal Jordan
Chief Executive Officer
Dated: May 15, 2000 By: /s/ A.J. Elko
-------------------------
A.J. Elko
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 1,101,210
<SECURITIES> 1,174,085
<RECEIVABLES> 697,517
<ALLOWANCES> 27,870
<INVENTORY> 0
<CURRENT-ASSETS> 3,129,175
<PP&E> 221,234
<DEPRECIATION> 141,330
<TOTAL-ASSETS> 3,886,137
<CURRENT-LIABILITIES> 582,736
<BONDS> 0
0
30,000
<COMMON> 10,421
<OTHER-SE> 3,262,980
<TOTAL-LIABILITY-AND-EQUITY> 3,886,137
<SALES> 0
<TOTAL-REVENUES> 1,520,756
<CGS> 0
<TOTAL-COSTS> 655,764
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,120
<INCOME-PRETAX> 864,992
<INCOME-TAX> 864,992
<INCOME-CONTINUING> 864,992
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 864,992
<EPS-BASIC> 0.08
<EPS-DILUTED> 0.08
</TABLE>
