UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarterly period ended September 30, 1999
---------------------------------------------
Commission file number 0-19170
JUNIPER GROUP, INC.
-------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Nevada 11-2866771
- -------------------------------------------------------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
111 Great Neck Road, Suite 604, Great Neck, New York 11021
- --------------------------------------------------------------------------------
(Address of principal executive offices)
(516) 829-4670
- --------------------------------------------------------------------------------
(Issuer's telephone number)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange act during the past 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
--- ---
The number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date, November 11,1999, was 5,492,206
shares of common stock - $.001 par value.
Transitional Small Business Disclosure Format: Yes No X
--- ---
1
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1: Financial Statements
JUNIPER GROUP, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
September December
Assets 30, 1999 31, 1998
----------- -----------
Current Assets
Cash ........................................... $ 3,182 $ 48,925
Accounts receivable - trade .................... 823,974 788,410
Due from affiliates ............................ 8,635 8,085
Investment in NCI............................... - 152,879
Due from officer ............................... 78,791 101,755
Prepaid expenses and other current assets ...... 229,205 215,764
----------- -----------
Total current assets ....................... 1,143,787 1,315,818
Film licenses .................................. 2,939,960 2,939,960
Property and equipment net of accumulated
depreciation of $106,352 and $127,382
respectively ................................. 127,463 141,677
Goodwill ....................................... 609,885 -
Other assets ................................... 120,390 167,540
----------- -----------
$ 4,941,485 $ 4,564,995
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses .......... $ 1,014,965 $ 1,023,541
Notes payable - current ........................ 71,276 168,725
Due to producers - current ..................... - 47,178
Due to shareholders ............................ 7,000 7,000
----------- -----------
Total current liabilities ................. 1,093,241 1,246,444
Notes payable - long term ...................... 411,283 166,667
Due to producers - long term ................... 11,637 17,692
----------- -----------
Total liabilities ......................... 1,516,161 1,430,803
----------- -----------
Shareholders' Equity
12% Non-voting convertible redeemable
preferred stock: $.10 par value, 875,000
shares authorized, 42,747 and 235,900 shares
issued and outstanding at September 30, 1999,
and December 31, 1998: aggregate liquidation
preference, $85,494 and $471,800 at September
30, 1999 and December 31, 1998, respectively... 4,275 23,390
Common Stock - $.001 par value, 75,000,000
shares authorized, 6,167,696 and 3,072,204
issued and outstanding at September 30, 1999
and December 31, 1998, respectively ........... 6,168 3,072
Capital contributions in excess of par:
Attributed to preferred stock ................. 38,109 208,523
Attributed to common stock .................... 11,194,825 9,855,404
Retained earnings (deficit) .................... (7,818,053) (6,956,197)
----------- -----------
Total shareholders' equity .................... 3,425,324 3,134,192
----------- -----------
$ 4,941,485 $ 4,564,995
=========== ===========
See Notes to Consolidated Financial Statements
2
<PAGE>
JUNIPER GROUP, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
September 30, September 30,
1999 1998
------------ ------------
Revenues:
Healthcare .............................. $ 276,181 $ 457,342
Entertainment ........................... 12,000 36,000
------------ ------------
288,181 493,342
------------ ------------
Operating Costs:
Healthcare .............................. 29,149 45,759
Entertainment ........................... - 15,670
Selling, general and administrative expenses . 563,817 432,403
------------ ------------
592,966 493,832
------------ ------------
Net income (loss) before income (expense)
from minority interest...................... (304,785) (490)
Income (expense) from minority interest....... - (31,277)
------------- ------------
Net income (loss) ............................ $ (304,785) (31,767)
============ ============
Weighted average number of shares outstanding 5,574,522 1,812,035
============ ============
Net income (loss) per common share $ (0.06) $ (0.02)
============ ============
See Notes to Consolidated Financial Statements
3
<PAGE>
JUNIPER GROUP, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
Nine Months Ended
September 30, September 30,
1999 1998
------------ ------------
Revenues:
Healthcare .............................. $ 571,207 $ 949,921
Entertainment ........................... 12,000 46,000
------------ ------------
583,207 995,921
Operating Costs:
Healthcare .............................. 90,224 102,217
Entertainment ........................... 4,470 17,963
Selling, general and administrative expenses . 1,250,820 1,327,057
Settlement Expense............................ - 267,236
------------ ------------
1,345,514 1,714,473
Net income (loss) before income (expense)
from minority interest...................... (762,307) (718,552)
Income (expense) from minority interest....... (99,548) (31,277)
------------- ------------
Net income (loss) ............................ $ (861,855) $ (749,829)
============ ============
Weighted average number of shares outstanding. 4,342,516 1,273,834
============ ============
Net income (loss) per common share............ $ (0.20) $ (0.59)
============ ============
See Notes to Consolidated Financial Statements
4
<PAGE>
JUNIPER GROUP, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended
September 30, September 30,
1999 1998
------------ ------------
Operating Activities
Net income (loss) ............................ $ (861,855) $ (749,829)
Adjustments to reconcile net cash provided
by operating activities:
Amortization expense......................... - 14,770
Depreciation expense ........................ 20,798 8,377
Settlement Expense .......................... - 267,236
Gain on disposition of assets ............... - (6,362)
Loss from minority interest ................. 99,548 31,277
Payment of officer's compensation with equity 71,301 236,718
Payment of various liabilities with equity .. 153,750 182,263
Payment of directors compensation with equity - 35,250
Payment of employees compensation with equity 20,384 -
Changes in assets and liabilities:
Accounts receivable ......................... (35,564) (415,536)
Prepaid expenses and other current assets ... 69,894 8,120
Other assets ................................ (13,326) (1,690)
Due to/from officers and shareholders........ 22,964 (52,264)
Due from affiliates ......................... (551) (24,887)
Accounts payable and accrued expenses ....... (8,576) 94,321
------------ ---------
Net cash provided from (used for)
operating activities ....................... (461,233) (372,236)
------------ ---------
Investing activities:
Sale (purchase) of equipment ................ (6,584) (5,250)
------------ ---------
Financing activities:
Investment in Nuclear Cardiac Imaging, Inc... (170,893) -
Investment in NetDIVE, Inc. ................. (200,000) -
Reduction in borrowings ..................... (112,140) (204,800)
Proceeds from borrowings .................... 870,200 485,000
Payments to and on behalf of producers ...... (25,092) (63,818)
Proceeds from exercise of options ........... 45,000 -
Proceeds from private placements ............ 15,000 150,000
----------- ---------
Net cash provided from (used for)
financing activities ...................... 422,075 366,382
----------- ---------
Net increase (decrease) in cash ............. (45,742) (11,104)
Cash at beginning of period ................. 48,925 30,187
----------- ---------
Cash at end of period ....................... $ 3,183 $ 19,083
=========== =========
Supplemental cash flow information:
Interest paid .............................. $ 11,709 $ 18,928
----------- ---------
See Notes to Consolidated Financial Statements
5
<PAGE>
JUNIPER GROUP, INC.
AND SUBSIDIARY COMPANIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - Basis of Presentation:
The interim consolidated financial statements included herein have been prepared
without audit, pursuant to the rules and regulations of the Securities and
Exchange Commission ("SEC"). Certain information and footnote disclosures,
normally included in the financial statements prepared in accordance with
generally accepted accounting principles, have been condensed or omitted
pursuant to SEC rules and regulations; nevertheless, management of the Company
believes that the disclosures herein are adequate to make the information
presented not misleading. The consolidated financial statements and notes should
be read in conjunction with the audited consolidated financial statements and
notes thereto as of December 31, 1998 included in the Company's Form 10-KSB
filed with SEC.
In the opinion of management, all adjustments consisting only of normal
recurring adjustments necessary to present fairly the consolidated financial
position of the Company with respect to the interim consolidated financial
statements have been made. The results of operations for the interim periods are
not necessarily indicative of the results to be expected for the full year.
6
<PAGE>
Item 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
The following discussion and analysis of financial condition and results of
operations should be read in conjunction with the Company's consolidated
financial statements and notes thereto included elsewhere herein. The statements
disclosed herein include forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended. The Company's actual results could
differ materially from those projected in the forward-looking statements as a
result of certain risks and uncertainties, including, but not limited to, the
Company's historical lack of profitability, the Company's need for additional
financing, competition in the managed healthcare and in the entertainment
industry, and other risks detailed from time to time in the Company's filings
with the Securities and Exchange Commission.
OVERVIEW
- --------
Juniper Group, Inc. (the "Company")is a Nevada Corporation. Its principal
businesses are composed of two segments, healthcare and entertainment: (i) the
healthcare operations are conducted through two subsidiaries of Juniper Medical
Systems, Inc. ("JMSI"), which is a wholly owned subsidiary of the Company: (a)
PartnerCare, Inc. ("PCI"), a managed care revenue enhancement company providing
various types of services such as: Accounts Receivable Management, Regulatory
reimbursement compliance, charge-off reviews, revenue collections, hospital and
physician accounts receivable financing and other related business office
outsourcing services to newly evolved integrated hospital and physician markets;
(b) Juniper Healthcare Containment Systems, Inc. ("Containment"), which develops
and provides full service healthcare networks for insurance companies and
managed care markets in the Northeast U.S.; and (c) Nuclear Cardiac Imaging,
Inc., a new business that will seek to offer physicians the capability to
provide advanced nuclear cardiac imaging testing in the convenience of their
office; and (ii) the entertainment segment is conducted principally through
Juniper Pictures, Inc. ("Pictures"), a wholly owned subsidiary of Juniper
Entertainment, Inc. ("JEI"), a wholly owned subsidiary of the Company, which
engages in the acquisition, exploitation and distribution of rights to films to
the various media (i.e., home video, pay-per view, pay television, cable
television, networks and independent syndicated television stations) in the
domestic and foreign marketplace. The Company's operations are based at 111
Great Neck Road, Suite 604, Great Neck, New York 11021.
The Company has completed the process of becoming year 2000 compliant. All
of the Company's systems have been updated so that none of its systems will be
affected by the year 2000. This process cost the Company less than $5,000.
The Company is in the process of identifying and contracting the hospitals
it services to determine the extent to which the Company's business may be
affected by those third parties failure to remedy their own Year 2000 issues. It
is expected that full identification will be completed by November 30, 1999. The
Company does not have any formal information concerning the Year 2000 compliance
status of the hospitals it services but has received indications that most of
the hospitals are working on Year 2000 compliance. In the event that any of the
significant hospitals that the Company services do not successfully and timely
achieve Year 2000 compliance, the Company's business or operations could be
adversely affected.
RESULTS OF OPERATIONS
- ---------------------
Three Months Ended September 30, 1999 vs Three Months Ended September 30, 1998
- --------------------------------------------------------------------------------
Revenue related to the Healthcare segment decreased to $276,000 in the
third quarter of 1999 from $457,000 in the third quarter of 1998, representing a
40% decrease. The decrease in revenue during the third quarter of 1999 was
partially attributed to Containment, which had no revenue in 1999, compared to
approximately $58,000 in the third quarter of 1998. This is a result of changes
instituted in December 1997, whereby Containment discontinued a joint venture
arrangement and its arrangement with the Guardian Insurance Company ("The
Guardian"). The loss of this business was temporarily replaced with a settlement
agreement which generated revenue with no corresponding expense throughout 1998.
Since revenue from the Guardian's business diminished largely due to the
increase in managed care penetration in the North East U.S. region, the business
with The Guardian decreased and the relationship with the Joint Venture
terminated. PCI's revenue decreased to $276,000 in 1999, from $399,000 in 1998.
This was the result of winding down certain projects at New York Hospital. The
revenue from this work began its decline during the first quarter of 1999 and
was expected to be replaced with projects at two new hospitals. These two new
projects commenced late in the third quarter and will begin generating revenue
during the fourth quarter.
7
<PAGE>
The entertainment segment increased revenue to $12,000 in the third quarter
of 1999, from no revenue in the third quarter of 1998. Certain of the Company's
films that generated revenue when the contracts were signed are still under
license, and are currently being aired by the licensees. The Company is
currently utilizing its resources to build the healthcare segment of its
business, and has not devoted resources toward the promotion and solicitation of
the films in 1999. However, the Company has begun looking for outside salesmen
to help market and merchandise the films that are not currently under license.
Healthcare operating costs decreased to $29,000 in the third quarter of
1999 from $46,000 in the third quarter of 1998, a 37% decrease. As a percentage
of revenue, operating costs of the healthcare operations increased to 11% in the
third quarter of 1999 from 10% in the third quarter of 1998.
Selling, general and administrative expenses increased to $564,000 in the
third quarter of 1999 from $432,000 in the third quarter of 1998, a 31%
increase. This increase is primarily due to increases in commissions of $87,000,
consulting of $24,000, and travel expenses of $23,000. The increase in
commissions was due to a new relationship with an unaffiliated party with whom
the Company outsources its operating activities for PCI. The increase in
consulting and travel relate to the increased use of consulting services
associated wiht the Company's efforts to identify and negotiate acquisition
candidates.
Nine Months Ended September 30, 1999 vs Nine Months Ended September 30, 1998
- -------------------------------------------------------------------------------
Revenue related to the Healthcare segment decreased to $571,000 through the
third quarter of 1999 from $950,000 through the third quarter of 1998,
representing a 40% decrease. The decrease in revenue through the third quarter
of 1999 was partially attributed to Containment, which had no revenue in 1999,
compared to approximately $220,000 through the third quarter of 1998. This is a
result of changes instituted in December 1997, whereby Containment discontinued
a joint venture arrangement and its arrangement with the Guardian Insurance
Company. The loss of this business was temporarily replaced with a settlement
agreement which generated revenue with no corresponding expense throughout 1998.
Since revenue from the Guardian's business diminished largely due to the
increase in managed care penetration in the North East U.S. region, the business
with Guardian decreased and the relationship with the Joint Venture terminated.
PCI's revenue decreased to $571,000 in 1999, from $730,000 in 1998. This was the
result of winding down certain projects at New York Hospital. The revenue from
this work began its decline during the first quarter of 1999 and was expected to
be replaced with projects at two new hospitals. These two new projects commenced
late in the third quarter and will begin generating revenue during the fourth
quarter.
The entertainment segment increased revenue to $12,000 in the third quarter
of 1999, from no revenue through the third quarter of 1998. Certain of the
Company's films that generated revenue when the contracts were signed are still
under license, and are currently being aired by the licensees. The Company is
currently utilizing its resources to build the healthcare segment of its
business, and has not devoted resources toward the promotion and solicitation of
the films in 1999. However, the Company has begun looking for outside salesmen
to help market and marchandise the films that are not currently under license.
Healthcare operating costs decreased to $90,000 through the third quarter
of 1999 from $102,000 in the third quarter of 1998, a 12% decrease. As a
percentage of revenue, operating costs of the healthcare operations increased to
16% through the third quarter of 1999 from 11% through the third quarter of
1998. The increase is due to the fact that Containment registered no revenue in
1999, while it reflected revenue in 1998 with no related operating costs.
Selling, general and administrative expenses decreased to $1,251,000
through the third quarter of 1999 from $1,327,000 through the third quarter of
1998, a 6% decrease. This decrease is primarily due to decreases in salaries of
$117,000, bad debt expenses of $48,000, directors compensation of $35,000,
interest of $16,000 and rent of $16,000, offset by increases in legal expenses
of $84,000, and commission expense of $87,000. The decrease in salaries was
attributable to the issuance of bonuses in 1998 to the Company's CEO for raising
certain funds, and for obtaining certain contracts. The decrease in bad debt
expense was due to a change in 1998 to a more conservative evaluation than in
previous periods of the Company's accounts receivable. This conservative
evaluation has continued in 1999 causing the Company to record a greater
allowance for certain types of accounts receivable related to its heathcare
business. The increase in commissions was due to a new relationship with an
unaffiliated party with whom the Company outsources its operating activities for
PCI. The increase in legal expense is primarily attributed to the Company's
efforts for growth including potential new business acquisitions.
8
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Working capital at September 30, 1999 was $51,000, compared to working
capital of $69,000 at December 31, 1998. The ratio of current assets to current
liabilities was 1.05:1 at September 30, 1999 and 1.06:1 at December 31, 1998.
Cash flow used for operations during the third quarter of 1999 was $461,000,
compared to cash flow used for operations during the third quarter of 1998, of
$372,000.
Accounts receivable - trade increased to $824,000 at September 30, 1999
from $788,000 at December 31, 1998.
Accounts payable was $1,015,000 at September 30, 1999 and $1,024,000 at
December 31, 1998.
Although the Company plans to continue to expand its healthcare business to
the extent that resources are available, the Company has no firm material
commitments for capital expenditures in other areas of its business and has no
plans to acquire additional films.
The Company believes that it may not have sufficient liquidity to meet its
operating cash requirements for the current level of operations during the
remainder of 1999. The Company will require additional financing. There can be
no assurance that financing will be available, or if available, on terms
acceptable to the Company. If the Company is unable to fund its operating cash
flow needs, the Company may be required to substantially curtail operations.
The Company currently does not have any bank lines of credit.
9
<PAGE>
PART II: OTHER INFORMATION
Item 2. Changes in Securities
-----------------------
(a) The information disclosed in Item 4 below is incorporated herein by
reference.
(b) N/A
(c) Shares of Common Stock, $0.001 par value, sold through the third quarter
of 1999 were as follows:
<TABLE>
<CAPTION>
Date Purchaser No. of Shares Consideration Exemption
- -------------------- ------------------ ------------------- -------------------------------------- ---------
<S> <C> <C> <C> <C> <C>
7/16/99 Officers 18,966 The President and CEO of the Company
accepted common stock in lieu of accrued
salary and other amounts owed to him in
the amount of $7,112. 4(2)
7/20/99 Private Holders 530,909 Debentures for $340,000 were converted to 4(2)
common stock
9/30/99 Option Holders 84,808 Conversion of Options for $45,000 4(2)
9/30/99 Vendors 87,979 Vendors accepted common stock in lieu of 4(2)
unpaid fees in the amount of $66,790.
</TABLE>
_______________________
Item 3. Defaults Upon Senior Securities
-------------------------------
Preferred Stockholders are entitled to receive out of assets legally
available for payment a dividend at a rate of 12% per annum of the Preferred
Stock liquidation preference of $2.00 (or $.24 per annum) per share, payable
quarterly on March 1, June 1, September 1 and December 1, in cash or in shares
of Common Stock having an equivalent fair market value. Unpaid dividends on the
Company's Preferred Stock cumulate. The quarterly payments due on September 1
and December 1, 1992, and all payments due in 1993, in 1994, in 1995, in 1996,
in 1997, in 1998 and the payment due on March 1, June 1, and September 1, 1999
have not yet been paid and are accumulating. These dividends have not been
declared because earned surplus is not available to pay a cash dividend.
Accordingly, dividends will accumulate until such time as earned surplus is
available to pay a cash dividend or until a post effective amendment to the
Company's registration statement covering a certain number of common shares
reserved for the payment of Preferred Stock dividends is filed and declared
effective, or if such number of common shares are insufficient to pay cumulative
dividends, then until additional common shares are registered with the
Securities and Exchange Commission (SEC). No dividends shall be declared or paid
on the Common Stock (other than a dividend payable solely in shares of Common
Stock) and no Common Stock shall be purchased, redeemed or acquired by the
Company unless full cumulative dividends on the Preferred Stock have been paid
or declared, or cash or shares of Common Stock have been set apart which is
sufficient to pay all dividends accrued on the Preferred Stock for all past and
then current dividend periods.
As stated above, pursuant to the terms of the Preferred Stock, the Company
has the option of making quarterly dividend payments in cash or shares of Common
Stock. The Company does not intend to make any Preferred Stock dividends in cash
in the foreseeable future. Prospectively, subject to the Company's Prospectus
being current, and a sufficient number of common shares being registered with
the SEC, the Company anticipates making quarterly dividend payments in shares of
Common Stock for the foreseeable future including the payments which have not
yet been made. The total cash value of the arrearage of unpaid dividends at
September 30, 1999, was $74,380.
10
<PAGE>
During the second quarter of 1999, the Company made an offer to holders of
Preferred Stock to tender their shares. The offer provided for 1.65 shares of
common stock in exchange for each share of preferred stock tendered.
Accordingly, the rights to the unpaid dividends of the holders of preferred
stock would be eliminated. On May 10, 1999, the offer was completed and
approximately 191,153 of the 233,900 shares were tendered for 315,403 shares of
the Company's common stock. Accordingly, 42,747 shares of Preferred Stock remain
outstanding.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits
Exhibit Description
3.1 Certificate of Incorporation of the Registrant, as amended (1)
3.2 Amendment to the Certificate of Incorporation of the Registrant, filed
March 7, 1998 (2)
3.3 Certificate of Incorporation of Juniper Group, Inc., a Nevada
corporation.(3)
3.4 By-Laws of the Registrant (1)
3.5 Amendment to the By-Laws of the Registrant approved by the shareholders
of the Registrant on February 12, 1998 (3)
3.6 By-Laws of Juniper Group, Inc., a Nevada corporation (3)
27.1 Financial Data Schedule
- ---- -----------------------
(1) Incorporated by reference to the Company's Annual Report on Form 10-KSB
for the fiscal year ended December 31, 1995
(2) Incorporated by reference to the Company's Annual Report on Form 10-KSB
for the fiscal year ended December 31, 1997
(3) Incorporated by reference to the Company's Proxy Statement for its
Annual Meeting held in February 1998
(b) Reports on Form 8-K.
NONE
11
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant
caused this report to be signed by the undersigned, thereunto duly authorized.
JUNIPER GROUP, INC.
Date:
By:/s/ Vlado P. Hreljanovic
------------------------
Vlado P. Hreljanovic
Chairman of the Board, President,
Chief Executive Officer and Acting
Chief Financial Officer
12
<PAGE>
EXHIBIT INDEX
Exhibit Description
27.1 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEETS AND CONSOLIDATED STATEMENTS OF INCOME FOUND ON PAGES
3 & 5 OF THE COMPANY'S FORM 10-QSB FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-mos
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 3,928
<SECURITIES> 0
<RECEIVABLES> 823,974
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,143,787
<PP&E> 233,816
<DEPRECIATION> 106,352
<TOTAL-ASSETS> 4,941,485
<CURRENT-LIABILITIES> 1,429,575
<BONDS> 0
0
4,275
<COMMON> 6,168
<OTHER-SE> 3,414,881
<TOTAL-LIABILITY-AND-EQUITY> 4,941,485
<SALES> 0
<TOTAL-REVENUES> 583,207
<CGS> 0
<TOTAL-COSTS> 1,345,514
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (861,855)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (861,855)
<EPS-BASIC> (0.20)
<EPS-DILUTED> (0.20)
</TABLE>
