<PAGE> 1
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10Q-SB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the three months ended Commission File Number
March 31, 1996 33-48017-A
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
(a Florida corporation)
(Exact name of Registrant as specified in its Charter)
Florida 59-2087068
- ------------------------------ ---------------------
State or other jurisdiction of I.R.S. Employer
incorporation or organization Identification Number
2323 Stickney Point Road, Sarasota, Florida 34231
--------------------------------------------------
(Address of principal executive offices, zip code)
Registrant's telephone number, including area code: (941) 921-9700
Securities registered pursuant to Section 12(b) of the Act:
Securities registered pursuant to Section 12(g) of the Act:
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No .
--- ---
For the three months ended March 31, 1996, the Registrant had revenues of
$663,957.
As of March 31, 1996, the Registrant had 5,000,000 Shares authorized and
471,064 Shares outstanding. The aggregate market value of the outstanding
shares held by non-affiliates, computed by reference to the price at which the
stock was sold is $1,095,474.
1
<PAGE> 2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Set forth below are the unaudited financial statements reflecting the
Company's financial condition as of March 31, 1996, and the related statements
of operations and shareholders' equity for the three months ended March 31,
1996 and 1995.
[THE BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]
2
<PAGE> 3
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
BALANCE SHEET
March 31, 1996 (Unaudited)
ASSETS
<TABLE>
<CAPTION>
<S> <C>
CURRENT ASSETS
Cash $ -
Accounts receivable from
correspondent brokers 180,568
---------
TOTAL CURRENT ASSETS 180,568
INVESTMENTS -
Furniture, Fixtures and Equipment -
at cost net of accumulated depreciation 39,486
OTHER ASSETS
Deposits with clearing organizations 42,748
Other deposits 1,934
---------
TOTAL ASSETS $ 264,736
=========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 53,558
Commissions Payable 138,580
---------
TOTAL CURRENT LIABILITIES 192,138
STOCKHOLDERS' EQUITY
Preferred Stock - authorized 750,000
shares of $.01 par value; no shares
issued or outstanding -
Common Stock - authorized 5,000,000
shares of $.01 par value; issued and
outstanding 471,364 shares 4,713
Additional paid-in capital 752,617
Additional paid-in capital, warrants 4,410
Retained earnings (689,142)
---------
TOTAL STOCKHOLDERS' EQUITY 72,598
---------
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY $ 264,736
=========
</TABLE>
3
<PAGE> 4
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
STATEMENTS OF OPERATION
For The Three Months Ended March 31 (Unaudited)
<TABLE>
<S> <C> <C>
1996 1995
--------- --------
REVENUE
Commissions $629,816 $513,591
Underwriting fees 15,590 -
Other income 18,551 14,692
-------- --------
TOTAL REVENUE 663,957 528,283
-------- --------
EXPENSES
Accounting/Legal 3,976 11,338
Advertising 1,172 5,578
Board of Directors fees 4,000 4,000
Clearing charges 53,870 53,908
Commissions 497,107 359,030
Consulting fees 11,527 -
Dues and subscriptions 1,660 1,484
Depreciation 2,864 2,867
Insurance 3,639 3,412
Meetings and seminars 256 60
Miscellaneous 3,464 714
Occupancy costs 25,047 14,010
Office expenses 10,266 6,408
Professional development 250 102
Regulatory 5,656 7,121
Rental equipment 2,667 3,523
Salaries and wages 67,669 88,910
Taxes 9,312 6,719
Travel and lodging 11,774 7,096
Utilities 7,863 7,304
--------- --------
TOTAL OPERATING EXPENSES 724,039 581,116
--------- --------
NET INCOME/(LOSS) $(60,082) $(52,883)
========= ========
NET INCOME/(LOSS) PER SHARE $ (.127) $ (.127)
========= ========
</TABLE>
4
<PAGE> 5
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For The Three Months Ended March 31 (Unaudited)
<TABLE>
<CAPTION>
Additional
Additional Paid-In Retained
Preferred Common Paid-In Capital Earnings
Stock Stock Capital Warrants (Deficit) Total
--------- ------- ---------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Total Balance at
January 1, 1996 $ - $4,629 $706,853 $4,410 $(629,060) $ 86,832
Issuance of Common Stock 84 50,416 50,500
Syndication Costs (4,650) (4,650)
Net loss for three
months ended
March 31, 1996 - - - - (60,082) (60,082)
-------- ------ -------- ------ --------- --------
Balance at
March 30, 1996 $ - $4,713 $752,617 $4,410 $(689,142) $ 72,598
======== ====== ======== ====== ========= ========
</TABLE>
5
<PAGE> 6
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
STATEMENT OF CASH FLOWS
For The Three Months Ended March 31 (Unaudited)
<TABLE>
<CAPTION>
CASH FLOWS FROM OPERATING ACTIVITIES: 1996 1995
-------- --------
<S> <C> <C>
Net Income (Loss) $(60,082) $(52,883)
Adjustments to reconcile net income
to net cash used in operating activities:
Depreciation 2,864 2,867
(Increase) decrease in operating assets:
Receivable from correspondent brokers (6,827) (82,886)
Receivable - other 8,576 23,672
Deposits (324) (521)
Increase (decrease) in operating liabilities:
Accounts payable (4,601) 975
Commissions payable (5,964) 29,304
-------- --------
Net cash provided by (used in) operating activities (66,358) 79,472
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock 50,500 91,500
Cash paid for syndication costs (4,545) (8,780)
-------- --------
Net cash provided by (used in) financing activities 45,955 82,720
-------- --------
NET INCREASE (DECREASE) IN CASH (20,403) 3,248
CASH AT BEGINNING OF PERIOD 20,403 4,566
-------- --------
CASH AT END OF PERIOD $ - $ 7,814
======== ========
</TABLE>
6
<PAGE> 7
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
NOTES TO FINANCIAL STATEMENTS
For The Three Months Ended March 31, 1996 and 1995
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
Executive Wealth Management Services, Inc., (the Company) is a securities
broker/dealer that transacts business through correspondent brokers and does
not handle any customer securities or funds. Customer security transactions
and related commission revenue and expenses are recorded on the trade date.
The Company also acts as a broker/dealer in selling both public and private
securities offerings on a best efforts basis. In addition, the Company
receives commissions and underwriting fees for its services.
Receivable from Correspondent Brokers
The receivable from correspondent brokers and broker/dealers represent
commissions earned which had not been received at March 31, 1996. Management
has determined that these amounts are fully collectible.
Furniture, Fixtures and Equipment
Furniture, fixtures and equipment are recorded at cost. Depreciation is
provided for in amounts sufficient to relate the cost of assets to operations
over their estimated useful lives using the straight-line method.
Investments
The Company was issued 55,263 shares of common stock of Flight Sciences, Inc.
This stock was issued to the Company in relation to a private offering of
Flight Sciences' promissory notes. These shares represent 5% of Flight
Sciences, Inc.'s outstanding common stock. The Company has assigned no value
to the stock due to the fact that there is no ready market and its value is not
determinable.
Loss Per Share
Loss per share is computed based upon 471,064 and 455,833 shares outstanding
during the periods ended March 31, 1996 and 1995, respectively.
Note 2 - DEPOSIT WITH CLEARING ORGANIZATION
Deposits with clearing organizations represent investments in money markets. The
investments are required by the Company's clearing brokers and are in accordance
with the correspondent broker agreement between the parties. Deposits are
reflected at fair market value.
7
<PAGE> 8
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For The Three Months March 31, 1996 and 1995
Note 3 - FURNITURE, FIXTURES AND EQUIPMENT
A summary of furniture, fixtures and equipment follows:
<TABLE>
<CAPTION>
March 31, 1996
--------------
<S> <C>
Furniture and fixtures $ 37,951
Equipment 26,555
Leasehold improvements 6,622
-------
71,128
Less: Accumulated Depreciation (31,642)
-------
$39,486
=======
</TABLE>
Note 4 - Operating Leases
Rent expense for the three months ended March 31, 1996 and 1995 was $25,047 and
$14,010, respectively.
During the three months ended March 31, 1995 and 1994, the Company received
rental income from two of its affiliates for office space. Rental income for
the three months ended March 31, 1996 and 1995 was $5,870 and $6,150,
respectively.
Note 5 - NET CAPITAL REQUIREMENT
Pursuant to the net capital provisions of Rule 15c3-1 of the Securities and
Exchange Act of 1934, the Company is required to maintain a minimum net capital
of $5,000. In December of 1991, the National Association of Securities
Dealers, Inc. approved the Company as a fully disclosed broker/dealer. The
Company has a restrictive agreement to maintain a net capital of 130% of the
minimum requirement or 6 2/3% of aggregate indebtedness for each of the three
month periods ended March 31, 1996 and 1995.
The Company had net capital of $28,358 or 221% and $55,103 or 507% of the
minimum requirement at March 31, 1996 and 1995, respectively. The net capital
rules may effectively restrict the payment of dividends to the Company's
stockholders. The Company operates pursuant to the (K) (2) (ii) exemptive
provisions of the Securities and Exchange Commission's Rule 15c3-3 and does not
hold customers funds or securities.
8
<PAGE> 9
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For The Three months Ended March 31, 1996 and 1995
NOTE 5 - NET CAPITAL REQUIREMENT (CONTINUED)
Rule 15c3-1 also requires that the ratio of aggregate indebtedness to net
capital, both as defined, shall not exceed 15 to 1. The Company's ratio was
6.78 to 1 and 2.95 to 1 at March 31, 1996 and 1995, respectively.
NOTE 6 - INCOME TAXES
At December 31, 1995, the Company had a net operating loss carry forward of
approximately $471,000 that will begin to expire in the year 2009. Due to the
lack of historical operations, management has elected to record a valuation
allowance equal to the deferred tax asset of $174,270, calculated using an
effective income tax rate of 31% for the Company.
NOTE 7 - RELATED PARTY TRANSACTIONS
During the three months ended March 31, 1996 and 1995, companies affiliated
with the Company's majority stockholder shared office space with the Company
and paid rent of $5,810 and $6,150, respectively, for the use of the space.
During the three months ended March 31, 1996, the Company paid rent of
approximately $9,000 to the Company's majority stockholder for the use of
office space.
NOTE 8 - ACQUISITION
On February 15, 1995, the Company entered into a negotiation to purchase all of
the outstanding stock of an NASD/SIPC member broker/dealer for $25,000. The
broker/dealer may become a wholly owned subsidiary of the Company and might be
inactive until such time the Company's management deems it appropriate to
activate it in the expansion of the Company's business. As of March 31, 1996,
no agreement has been consummated.
9
<PAGE> 10
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For The Three months Ended March 31, 1996 and 1995
NOTE 9 - COMMON STOCK TRANSACTIONS
During 1995, the Company and its majority stockholder sold 44,100 shares of the
Company's common stock. The price of the stock was $5.90 per share andeach
purchaser of a share received a warrant which gave the purchaser the right
to purchase one share of the Company's stock from the Company for $7.00 per
share. The price of the warrants were $.10 each and expire on December 1,
1999. The proceeds of the warrants were retained by the Company.
During 1995, the Company and the majority stockholder initiated a private
placement of 80,000 shares of the Company's common stock at a price of $6.00
per share. The shares contained in the offering are to be drawn equally from
the authorized but unissued shares of the Company and the majority stockholder.
Accordingly, gross proceed from the sale of the stock will be shared equally
by the Company and the majority stockholder. As of March 31, 1996,
approximately 16,833 shares of the Company's common stock had been sold under
this private placement. The proceeds from this private placement will be
utilized for additional expansion and working capital by the Company.
In November, 1995, the Company approved a plan to grant options to certain
employees to purchase the Company's common stock. The plan provides for the
granting of options to purchase a maximum of 100,000 shares of the Company's
stock at a price to be determined at the time of grant. The price, however,
shall not be greater than $3.00 per share. The plan requires a participant to
be employed by the Company for a number of years before exercise. Granted
options expire 10 years from the grant date. At March 31, 1996, all of the
options had been granted.
[BALANCE OF PAGE INTENTIONALLY LEFT BLANK]
10
<PAGE> 11
Item 2 Management's Discussion and Analysis of Financial Condition and
Results of Operation.
Current Operations
The table set forth below reflects the source of revenue earned by the Company
during the nine months ended March 31, 1996 and 1995.
<TABLE>
1996 1995 Increase/(Decrease)
---- ---- ------------------
<S> <C> <C> <C>
Source of Revenue Earned
- -------------------------
Commission:
Proprietary Products $ 9,090 $ 21,200 $(12,110)
Transactional 351,364 325,835 25,529
Mutual Fund Sales 155,347 60,664 94,683
Insurance/Annuity 46,510 51,225 (4,715)
Sale of non-proprietary
limited partnerships 76,595 52,167 24,428
-------- -------- --------
Total Commissions 638,906 511,091 127,815
Other:
Underwriting fees 6,500 2,500 4,000
Miscellaneous 18,551 14,962 3,859
-------- -------- --------
Total $663,957 $528,283 $ 7,859
======== ======== ========
</TABLE>
The Company received commissions and underwriting fees of $15,590 and $23,700
from the sale of proprietary products or commissions which were "in house" in
character for the three months ended March 31, 1996 and 1995, respectively.
This decrease of $8,110 relates to the fact that the Company only participated
in one offering other than the private placement of its own shares during the
three months ended March 31, 1996. The Company anticipates a significant
increase in income from proprietary products and underwritings in the third
quarter of fiscal 1996.
Transactional revenues, increased by $25,529 for the three months ended March
31, 1996, as compared to the same period in 1995. This increase relates
directly to the increased production of the Company's branch and satellite
offices.
Mutual fund revenue increased approximately 94,683 for the three months ended
March 31, 1996 as compared to the same period ended 1996. This increase is
directly attributable to increased production of the Company's branch and
satellite offices.
Limited partnership revenue increased $24,428 from the three months ended March
31, 1995 compared to the same period ended 1996. This increase is also
attributable to the increased production of the Company's branch and satellite
offices.
11
<PAGE> 12
As a result of expansion activities not only did the Company experience
increased revenues, but the related expenses have also increased. The table
set fourth below reflects the expense categories of the Company in which there
were significant increase or decrease for The Three months ended March 31,
1996, as compared to the same period in 1995:
<TABLE>
<CAPTION>
Increase/
Expense Category 1996 1995 (decrease)
---------------- ---- ---- ---------
<S> <C> <C> <C>
Accounting and Legal $ 3,976 $ 11,338 $ (7,362)
Commissions 497,107 359,030 138,077
Consulting 11,527 --- 11,527
Occupancy 25,047 14,010 (11,037)
Office Expense 10,266 6,408 3,858
Salaries & Wages 67,669 88,910 (21,241)
</TABLE>
Accounting and legal expenses decreased by $7,362 for The Three months ended
March 31, 1996 as compared to the same period ended 1995. This decrease is due
to the Company changing accounting firms and becoming more active in regulatory
reporting.
Commission expense increased from $359,030 for the three months ended March 31,
1995, to $497,107 for the three months ended March 31, 1996. The increase in
commissions expense is directly related to the increase in production discussed
above.
The commission payout ratio increased from 70% for the three months ended March
31, 1995 to 78% for the same period in 1996. This increase was a direct result
of increased production at the Company's branch and satellite offices which
have a higher payout ratio and decreased production at the Company's home
office which has a lower payout rate.
Consulting fees increased 11,527 for the three months ended March 31, 1996, as
compared to the same period in 1995. This increase relates to consulting fees
paid to a Company that provides Executive with certain accounting services.
Occupancy costs increased by $11,037 for the three months ended March 31, 1996
as compared to the same period in 1995. This increase relates to the fact that
the Company is currently leasing office space in San Diego, CA, which it did
not lease in 1995.
Office expense increased $3,858 for the three months ended March 31, 1996, as
compared to the three months ended March 31, 1995, primarily due to the
Company's name change. As a result of the name change the Company had to order
new brochures, letterhead and other related supplies.
12
<PAGE> 13
Salaries and wages decreased for the three month period ended March 31, 1996,
as compared to the same period in 1995 by $21,241 due to the Company
eliminating certain full time positions and replacing them with part-time
people and/or reallocation of the work to existing personnel.
Future Operations
As of March 31, 1996, Executive had approximately 70 registered
representatives and is in the process of recruiting several new office
locations. As a result of this anticipated growth, the Company amended its
restrictive agreement with and received approval from the National Association
of Securities Dealers (NASD) to increase the number of registered
representatives from 75 to 100 effective September 5, 1995.
The Company is in the process of negotiating an agreement to purchase all of
the outstanding stock of Donnellan, Haylett & Co., an NASD/SIPC Member
broker/dealer for $25,000. Donnellan, Haylett & Co. would be a wholly owned
subsidiary of the Company. Should this proposed acquisition occur, it is
anticipated that it (Donnellan, Haylett & Co.) would be inactive until such
time that the Company's management deems it appropriate to utilize it in the
expansion of its business. As of March 31, 1996, no agreement has been
consummated with regards to the terms of the proposed acquisition.
The Company anticipates the completion of an underwriting of an affiliate
during fiscal 1996. As a result of these investment banking activities, the
Company anticipates significant underwriting fees and enhanced commissions
revenues generated by the brokers.
On December 1, 1994, the Company and the majority shareholder initiated a
private placement of 100,000 Units. Each Unit sells for $6 and consists of one
share of common stock at $5.90 and one warrant at $.10. The warrants have an
exercise price of $7.00 a share and may be exercised at any time until December
1, 1999. The 100,000 shares contained in the units offered are to be drawn
equally from the authorized but unissued shares of the Company and the majority
shareholder. Accordingly, gross proceeds from the sale of the stock are shared
equally between the Company and the majority shareholder. Gross proceeds from
the sale of warrants shall be received by the Company. This offering concluded
in 1995, and 44,100 units were sold providing gross proceeds to the Company of
$134,505. The proceeds from this private placement received by the Company
have and will be utilized for additional expansion and working capital.
Effective December 15, 1995, the Company initiated a new private placement of
80,000 shares of the Company's stock at $6 a share. The shares contained in
this offering, like in the previous offering are to be drawn equally from the
authorized but unissued shares of the Company and the majority shareholder. As
of February 22, 1996, 15,500 shares had been sold resulting in gross proceeds to
the Company of $93,000.
13
<PAGE> 14
As of December 31, 1995, the Company is in the process of negotiating exclusive
investment product marketing and financial services agreements with several
large medical groups, alliances and state associations. It is management's
belief that when the Company receives letters of intent and/or contracts for
services for these exclusive investment product marketing and financial
services agreements, it will not only enhance the operating performance of the
Company, but it will also position the Company for a secondary public offering
of the Company's stock.
In addition, with the increase of the in-house securities/insurance brokers and
outside independent brokers, coupled with the increased investment banking
activities and the sale of insurance-related products and services, it is
management's belief that it has and will have the liquid resources to not only
sustain its operations, but become profitable in fiscal 1996.
Regulatory Net Capital
As a securities broker-dealer, the Company is subject to the net capital rules
of the United States Securities and Exchange Commission and similar rules in
force in the states where the Company is registered as a securities
broker-dealer. The aggregate indebtedness of a securities broker-dealer in
relation to its net capital is also subject to Commission rules. Such rules
are somewhat complex in the manner that regulatory net capital is computed. In
summary, however, the computation of regulatory net capital relates to the
stockholder's equity of the Company taking into account deductions from such
stockholder's equity which relate to non-allowable assets which are a
non-liquid type and reductions in the market value of investment securities
owned by the Company in accordance with rule-prescribed "haircuts". Under the
rules, the aggregate indebtedness of the Company in relation to its net capital
may not exceed a ration of 15 to 1.
The table set forth below, with respect to the Company, the amount of
regulatory net capital and the amount of aggregate indebtedness and the ratio
thereof to such regulatory net capital as of March 31, 1996 and 1995:
<TABLE>
<S> <C> <C>
1996 1995
------------ ------------
Net Capital $ 28,358 $ 55,103
Aggregate Indebtedness 192,338 162,760
Ratio of aggregate indebtedness
to net capital 6.78 to 1 2.95 to 1
</TABLE>
The National Association of Securities Dealers, Inc. (the "NASD") requires
certain members, such as the Company, to maintain net capital equal to the
greater of 130% of the Commission's net capital requirement or 6 2/3% of
aggregate indebtedness.
The increase in aggregate indebtedness from $162,760 to $192,338 at March 31,
1995 and 1996, respectively, is related to the expansion of the Company's sales
force. As a result of the increase in the
14
<PAGE> 15
sales force, monthly commissions payable have increased from 1995 to 1996.
The increase in the ratio of aggregate indebtedness to net capital for the
three months ended March 31, 1996, is directly related to the increase in
aggregate indebtedness. This is due to the fact that net capital for the
period remained approximately the same.
15
<PAGE> 16
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
Not Applicable
Item 2. Changes in Securities.
Not Applicable
Item 3. Defaults Upon Senior Securities.
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders.
Not Applicable
Item 5. Other Information.
Not Applicable
Item 6. Exhibits and Reports on Form 8-K.
27 Financial Data Schedule (for SEC use only)
[THE BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]
16
<PAGE> 17
In accordance with the requirements of the Exchange Act, the registrant
causes this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
MAY, 7, 1996
BY Guy S. Della Penna
---------------------------------
Guy S. Della Penna, President and
Chief Executive Officer
MAY 7, 1996
BY J. Scott Fulton
-----------------------------------
J. Scott Fulton, Executive Vice President
Chief Operating Officer and Treasurer
MAY 7, 1996
BY Bonnie S. Gilmore
-----------------------------------
Bonnie S. Gilmore, Vice President
Chief Financial Officer and Secretary
17
<TABLE> <S> <C>
<ARTICLE> BD
<MULTIPLIER> 1
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<EXCHANGE-RATE> 1
<CASH> 0
<RECEIVABLES> 180,568
<SECURITIES-RESALE> 0
<SECURITIES-BORROWED> 0
<INSTRUMENTS-OWNED> 42,748
<PP&E> 39,486
<TOTAL-ASSETS> 264,736
<SHORT-TERM> 0
<PAYABLES> 192,138
<REPOS-SOLD> 0
<SECURITIES-LOANED> 0
<INSTRUMENTS-SOLD> 0
<LONG-TERM> 0
0
0
<COMMON> 4,713
<OTHER-SE> 67,885
<TOTAL-LIABILITY-AND-EQUITY> 264,736
<TRADING-REVENUE> 0
<INTEREST-DIVIDENDS> 0
<COMMISSIONS> 629,816
<INVESTMENT-BANKING-REVENUES> 15,590
<FEE-REVENUE> 0
<INTEREST-EXPENSE> 0
<COMPENSATION> 67,669
<INCOME-PRETAX> (60,082)
<INCOME-PRE-EXTRAORDINARY> (60,082)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (60,082)
<EPS-PRIMARY> (.127)
<EPS-DILUTED> (.127)
</TABLE>
