SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996.
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to _____________.
Commission file number 0-28674
CADUS PHARMACEUTICAL CORPORATION
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 13-3660391
- ------------------------------------- ---------------------------------------
(State or Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
777 Old Saw Mill River Road,
Tarrytown, New York 10591-6705
- ------------------------------------- ---------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code (914) 345-3344
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
----- -----
The number of shares of registrant's common stock, $.01 par value, outstanding
as of October 15, 1996 was 12,059,024.
<PAGE>
CADUS PHARMACEUTICAL CORPORATION
INDEX
Page No.
--------
PART I -- FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets - September 30, 1996 and December 31, 1995 5
Statements of Operations - Three and nine months
ended September 30, 1996 and 1995, and the period
from January 23, 1992 (date of inception) to
September 30, 1996 6
Statements of Cash Flows - Nine months ended
September 30, 1996 and 1995, and the period from
January 23, 1992 (date of inception) to September 30,
1996 7
Notes to Financial Statements 8,9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 10-12
PART II -- OTHER INFORMATION
Item 1. Legal Proceedings 13
Item 2. Changes in Securities
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES 14
EXHIBIT INDEX 15
<PAGE>
Cadus Pharmaceutical Corporation
(a development stage corporation)
Balance Sheets
September 30, December 31,
1996 1995
------------ ------------
Assets
Current assets:
Cash and cash equivalents $ 44,658,397 $ 25,682,920
Restricted cash -- 2,380,000
Prepaid and other current assets 380,162 76,810
------------ ------------
Total current assets 45,038,559 28,139,730
Restricted cash 118,000 118,000
Fixed assets, net of accumulated depreciation
and amortization of $1,235,930 at September
30, 1996 and $649,016 at December 31, 1995 2,606,268 2,219,851
Deferred tax asset, less valuation allowance of
$3,021,000 at September 30, 1996 and
$2,621,000 at December 31, 1995 -- --
Due from stockholder 7,915 13,736
Other assets, net 493,972 233,874
------------ ------------
Total assets $ 48,264,714 $ 30,725,191
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Deferred revenue $ 1,000,000 $ --
Accounts payable 417,369 154,463
Accrued expenses and other current liabilities 235,798 421,155
Line of credit and loans payable to
bank-current portion 13,992 2,397,459
------------ ------------
Total current liabilities 1,667,159 2,973,077
Loans payable to bank 19,572 29,002
------------ ------------
Total liabilities 1,686,731 3,002,079
Stockholders' equity:
Preferred stock, $.001 par value.
Authorized 0 and 22,201,080 shares, issuable
in series, at September 30, 1996 and
December 31, 1995, respectively
Convertible Preferred Stock, Series A.0
and 14,879,651 shares designated,
issued and outstanding at September 30,
1996 and December 31, 1995 respectively -- 14,880
(preference in liquidation $6,800,000)
Convertible Preferred Stock, Series B.0
and 7,321,429 shares designated,
issued and outstanding at September 30,
1996 and December 31, 1995, respectively -- 7,321
(preference in liquidation, $27,500,000)
Common Stock, $.01 par value. Authorized
35,000,000 shares at September 30, 1996
and December 31, 1995; issued 12,200,691
shares at September 30, 1996 and 1,465,009
shares at December 31, 1995; outstanding
12,059,024 shares at September 30, 1996
and 1,323,342 shares at December 31, 1995 122,006 14,650
Additional paid-in capital 53,745,490 33,976,940
Deficit accumulated during the development stage (6,989,438) (5,990,604)
Treasury stock, 141,667 shares at September 30,
1996 and December 31, 1995, at cost (300,075) (300,075)
------------ ------------
Total stockholders' equity 46,577,983 27,723,112
------------ ------------
Total liabilities and stockholders' equity $ 48,264,714 $ 30,725,191
============ ============
See accompanying notes to the financial statements
<PAGE>
Cadus Pharmaceutical Corporation
(a development stage corporation)
Statements of Operations
<TABLE>
<CAPTION>
January 23,
Three Months Ended Nine Months Ended 1992 (date of
September 30, September 30, inception) to
-------------------------- ------------------------ September 30,
1996 1995 1996 1995 1996
------------ ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Revenues, principally from
related parties $ 1,625,000 $ 1,000,000 $ 4,875,002 $ 3,000,000 $ 10,647,430
------------ ----------- ----------- ----------- ------------
Costs and expenses:
Research and development costs 2,417,111 1,348,176 5,854,796 3,455,957 15,883,318
General and administrative expenses 538,901 359,118 1,159,417 975,619 4,235,807
------------ ----------- ----------- ----------- ------------
Total costs and expenses 2,956,012 1,707,294 7,014,213 4,431,576 20,119,125
------------ ----------- ----------- ----------- ------------
Operating loss (1,331,012) (707,294) (2,139,211) (1,431,576) (9,471,695)
------------ ----------- ----------- ----------- ------------
Interest income 544,859 192,966 1,268,804 597,793 2,616,277
Interest expense 35,988 23,839 104,847 45,414 187,776
------------ ----------- ----------- ----------- ------------
Interest income, net 508,871 169,127 1,163,957 552,379 2,428,501
------------ ----------- ----------- ----------- ------------
Loss before income taxes and extraordinary item (822,141) (538,167) (975,254) (879,197) (7,043,194)
State and local taxes -- 5,130 23,580 16,562 104,892
------------ ----------- ----------- ----------- ------------
Loss before extraordinary item (822,141) (543,297) (998,834) (895,759) (7,148,086)
Extraordinary gain from early extinguishment of debt -- -- -- -- 158,648
------------ ----------- ----------- ----------- ------------
Net loss $ (822,141) $ (543,297) $ (998,834) $ (895,759) $ (6,989,438)
============ =========== =========== =========== ============
Net loss per share $ (0.08) $ (0.23)
============ ===========
Shares used in calculation of net loss per share 10,200,160 4,354,145
============ ===========
Net loss per share assuming full dilution $ (0.07) $ (0.10)
============ ===========
Shares used in calculation of net loss per share
assuming full dilution 11,433,556 9,698,861
============ ===========
</TABLE>
See accompanying notes to the financial statements
<PAGE>
Cadus Pharmaceutical Corporation
(a development stage corporation)
Statements of Cash Flows
<TABLE>
<CAPTION>
January 23,
Nine Months Ended 1992 (date of
September 30, inception) to
--------------------------- September 30,
1996 1995 1996
------------ ------------ ------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $ (998,834) $ (895,759) $ (6,989,438)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 578,785 373,353 1,324,003
Loss on trade in of equipment -- -- 2,658
Extraordinary gain from early extinguishment of debt -- -- (158,648)
Changes in assets and liabilities:
Increase in prepaid and other current assets (303,352) (51,614) (380,162)
(Increase) decrease in other assets (124,147) 5,089 (129,152)
Increase in deferred revenue 1,000,000 354,619 1,000,000
Increase (decrease) in accounts payable 262,906 (179,881) 417,369
(Decrease) increase in accrued expenses and other
current liabilities (185,357) (54,166) 235,798
------------ ------------ ------------
Net cash provided by/(used in) operating
activities 230,001 (448,359) (4,677,572)
------------ ------------ ------------
Cash flows from investing activities:
Acquisition of fixed assets (973,331) (1,749,716) (3,832,629)
Decrease (increase) in restricted cash 2,380,000 (2,204,322) (118,000)
Stockholder borrowing 5,821 5,822 (7,915)
Patent costs (127,822) (78,321) (390,120)
------------ ------------ ------------
Net cash provided by/(used in) investing
activities 1,284,668 (4,026,537) (4,348,664)
------------ ------------ ------------
Cash flows from financing activities:
Proceeds from bank line of credit -- 2,195,949 2,380,000
Payments on bank loans and line of credit (2,392,897) (14,772) (2,421,436)
Proceeds from stockholder -- -- 2,158,648
Net proceeds from issuance of common and exercise of
stock options 19,853,705 -- 19,995,395
Net proceeds from issuance of series A & B
convertible preferred stock -- 5,000,000 31,872,101
Purchase of treasury stock -- -- (300,075)
------------ ------------ ------------
Net cash provided by financing activities 17,460,808 7,181,177 53,684,633
------------ ------------ ------------
Net increase in cash and cash
equivalents 18,975,477 2,706,281 44,658,397
Cash and cash equivalents at beginning of period 25,682,920 14,405,678 --
------------ ------------ ------------
Cash and cash equivalents at end of period $ 44,658,397 $ 17,111,959 $ 44,658,397
============ ============ ============
</TABLE>
See accompanying notes to the financial statements
<PAGE>
CADUS PHARMACEUTICAL CORPORATION
(a development stage corporation)
Notes to Financial Statements
(1) Organization and Basis of Preparation
The information presented as of September 30, 1996, and for the three and
nine month periods then ended is unaudited, but includes all adjustments
(consisting only of normal recurring accruals) that the Company's
management believes to be necessary for the fair presentation of results
for the periods presented. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with
generally accepted accounting principles have been omitted pursuant to the
requirements of the Securities and Exchange Commission, although the
Company believes that the disclosures included in these financial
statements are adequate to make the information not misleading. The
December 31, 1995 balance sheet was derived from audited financial
statements. These financial statements should be read in conjunction with
the Company's audited financial statements for the year ended December 31,
1995. Certain reclassifications have been made to the prior year financial
statement amounts to conform with the presentation in the current year
financial statements.
The results of operations for the nine month period ended September 30,
1996 are not necessarily indicative of the results to be expected for the
year ending December 31, 1996.
The Company has accumulated a loss of $6,989,438 from January 23, 1992
(date of inception) to September 30, 1996. Management intends to continue
research toward the development of commercial products in order to generate
future revenues from license fees, royalties, direct sales and performance
of contract research.
(2) Development Stage Enterprise
The efforts of the Company since inception have been devoted to research
and development and raising capital. Accordingly, the financial statements
are presented under the guidelines stipulated by the Financial Accounting
Standards Board's Statement of Financial Accounting Standards ("SFAS") No.
7, "Accounting and Reporting by Development Stage Enterprises."
(3) Net Loss Per Share
All common share data has been restated to give effect to a one-for-three
reverse stock split effected on July 18, 1996 (see note 6). Historical
earnings per share have not been presented because such amounts are not
meaningful due to the significant change in the Company's capital structure
that occurred in connection with the Company's initial public offering.
For the three month and nine month periods ended September 30, 1996,
primary net loss per share is computed using the weighted average number of
shares of common stock outstanding. Common shares issued in connection with
the initial public offering and the conversion of the convertible preferred
stock are included from the date of issuance. For the three months ended
September 30, 1996, common equivalent shares from stock options are
excluded from the computation as their effect is anti-dilutive. The
calculation for the nine month period ended September 30, 1996 also
includes, pursuant to Securities and Exchange Commission Staff Accounting
Bulletin No. 83, stock options (using the treasury stock method and the
initial public offering price) issued at prices substantially below the
public offering price during the 12-month period prior to the offering as
if they were outstanding for the three months ended March 31, 1996.
In addition, for the three month and nine month periods ended September 30,
1996, fully diluted net loss per share includes common equivalent shares
from convertible preferred stock, which was converted on July 22, 1996,
from the beginning of the period to the date of conversion.
<PAGE>
CADUS PHARMACEUTICAL CORPORATION
(a development stage corporation)
Notes to Financial Statements
(4) Line of Credit
In September 1996, the Company repaid an outstanding line of credit
balance of $2,380,000 which was secured by negotiable certificates of
deposit. As a result of such repayment, these certificates of deposit are
no longer considered restricted cash and are classified as cash equivalents
on the balance sheet at September 30,1996.
(5) Supplemental Cash Flow Information
Nine Months
ended September 30, Period from January 23,
----------------------- 1992 (date of inception)
1996 1995 to September 30, 1996
----------------------- -----------------------
Cash payments for:
Interest .................. $104,847 $45,414 $187,776
======== ======= ========
Income taxes .............. $ 23,580 $16,562 $104,892
======== ======= ========
(6) Equity Transactions
Public Offering of Common Stock
In July 1996, the Company completed an initial public offering of 2,750,000
shares of Common Stock at $7.00 per share. The Company received proceeds,
net of underwriting discounts and commissions, of $17,902,500.
On August 5, 1996, the Company sold an additional 412,500 shares of Common
Stock at $7.00 per share pursuant to the exercise by the underwriters of an
over-allotment option granted to them. The Company received proceeds, net
of underwriting discounts and commissions, of $2,685,375.
Reverse Stock Split
On July 18, 1996, the Company effected a one-for-three reverse Common Stock
split and changed the par value of the Common Stock to $.01 from $.001. All
Common Stock data have been restated to give effect to this reverse stock
split and change in par value for all periods presented.
Conversion of Convertible Preferred Stock
On July 22, 1996, all outstanding shares of the Series A and Series B
Preferred Stock were converted into an aggregate of 7,551,514 shares of
Common Stock.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Overview
The Company was incorporated in 1992 and has devoted substantially all of
its resources to the development and application of novel yeast-based and
signal transduction drug discovery technologies. To date, all of the
Company's revenues have resulted from research funding provided by its
collaborative partners.
The Company has incurred operating losses in each year since its inception
and net losses of approximately $999,000 during the nine months ended
September 30, 1996. At September 30, 1996, the Company had an accumulated
deficit of approximately $7.0 million. The Company's losses have resulted
principally from costs incurred in research and development and from
general and administrative costs associated with the Company's operations.
These costs have exceeded the Company's revenues and interest income. The
Company expects to incur substantial additional operating losses over the
next several years as a result of increases in its expenses for research
and product development.
Results of Operations
Three Months Ended September 30, 1996 and September 30, 1995
Revenues
Revenues for the three months ended September 30, 1996 increased to $1.6
million from $1.0 million for the same period in 1995. This increase was
attributable to the inclusion in 1996 of research funding from Solvay
Duphar B.V. ("Solvay Duphar"), one of the Company's collaborative partners.
Operating Expenses
The Company's research and development expenses for the three months ended
September 30, 1996 increased to $2.4 million from $1.3 million for the same
period in 1995. This increase was attributable primarily to an increase in
staffing and supplies related to implementation of the research
collaboration with Solvay Duphar and the Company's internal programs, as
well as facilities expenses in connection with the Company's occupancy of
its facility in Tarrytown, New York.
General and administrative expenses for the three months ended September
30, 1996 increased to $539,000 from $359,000 for the same period in 1995.
This increase was attributable primarily to the recruiting and hiring of
management personnel as well as an increase in the Company's directors and
officers liability insurance premium resulting from the Company's initial
public offering.
Interest Income
Net interest income for the three months ended September 30, 1996 increased
to $509,000 from $169,000 for the same period in 1995. This increase
related primarily to interest earned on the net proceeds from the sale of
Series B Convertible Preferred Stock in September 1995 and November 1995
and from the sale of Common Stock in July and August 1996 pursuant to the
Company's initial public offering, net of interest expense on a line of
credit and bank loans.
<PAGE>
Net Loss
The net loss for the three months ended September 30, 1996 increased to
$822,000 from $543,000 for the same period in 1995. The increase can be
attributed to an increase in the operating expenses of the Company as
described above, most of which was offset by increases in revenues and
interest income.
Nine Months Ended September 30, 1996 and September 30, 1995
Revenues
Revenues for the nine months ended September 30, 1996 increased to $4.9
million from $3.0 million for the same period in 1995. This increase was
attributable to the inclusion in 1996 of research funding from Solvay
Duphar.
Operating Expenses
The Company's research and development expenses for the nine months ended
September 30, 1996 increased to $5.9 million from $3.5 million for the same
period in 1995. This increase was attributable primarily to an increase in
staffing and supplies related to implementation of the research
collaboration with Solvay Duphar and the Company's internal programs, as
well as facilities expenses in connection with the Company's occupancy of
its facility in Tarrytown, New York.
General and administrative expenses for the nine months ended September 30,
1996 increased to $1.2 million from $976,000 for the same period in 1995.
This increase was attributable primarily to the recruiting and hiring of
management personnel as well as an increase in the Company's directors and
officers liability insurance premium resulting from the Company's initial
public offering.
Interest Income
Net interest income for the nine months ended September 30, 1996 increased
to $1,164,000 from $552,000 for the same period in 1995. This increase
related primarily to interest earned on the net proceeds from the sale of
Series B Convertible Preferred Stock in September 1995 and November 1995
and from the sale of Common Stock in July and August 1996 pursuant to the
Company's public offering, net of interest expense on a line of credit and
bank loans.
Net Loss
The net loss for the nine months ended September 30, 1996 increased to
$999,000 from $896,000 for the same period in 1995. The increase is
attributable to an increase in the operating expenses of the Company as
described above, most of which was offset by increases in revenues and
interest income.
Liquidity and Capital Resources
Prior to the Company's initial public offering, the Company financed
its operations through the sale of Convertible Preferred Stock and from
research funding from its collaborative partners. Through September 30,
1996, the Company had sold Convertible Preferred Stock for $31.9 million in
cash and $2.0 million in satisfaction of indebtedness. In addition, the
Company had received $10.6 million in revenues for research funding.
In July 1996, the Company completed an initial public offering of 2,750,000
shares of Common Stock at $7.00 per share. The Company received proceeds,
net of underwriting discounts and commissions, of $17,902,500.
<PAGE>
On August 5, 1996, the Company sold an additional 412,500 shares of Common
Stock at $7.00 per share pursuant to the exercise by the underwriters of an
over-allotment option granted to them. The Company received proceeds, net
of underwriting discounts and commissions, of $2,685,375.
In September 1996, the Company repaid an outstanding line of credit
balance of $2,380,000 which was secured by negotiable certificates of
deposit. As a result of such repayment, these certificates of deposit are
no longer considered restricted cash and are classified as cash equivalents
on the balance sheet as of September 30,1996.
As of September 30,1996, the Company had cash and cash equivalents of $44.7
million and restricted cash of $118,000.
The Company has invested $3.8 million in property and equipment, including
purchases amounting to $973,000 in the nine months ended September 30,
1996. The Company expects capital expenditures to increase over the next
several years as it expands facilities to support the planned expansion of
research and development efforts.
The Company intends to increase its expenditures substantially over the
next several years to enhance its technologies and pursue internal
proprietary drug discovery programs. The Company believes that its existing
capital resources, together with interest income and future payments due
under its research collaborations, will be sufficient to support its
current and projected funding requirements through the end of 1999. The
Company's capital requirements may vary as a result of a number of factors,
including the progress of its drug discovery programs, competitive and
technological developments, the continuation of its existing collaborative
agreements and the establishment of additional collaborative agreements,
and the progress of the development efforts of the Company's corporate
partners. The Company expects that it will require significant additional
financing in the future, which it may seek to raise through public or
private equity offerings, debt financings or additional corporate
partnerships. No assurance can be given that such additional financing will
be available when needed or that, if available, such financing will be
obtained on terms favorable to the Company. To the extent that additional
capital is raised through the sale of equity or convertible debt
securities, the issuance of such securities could result in dilution to the
Company's stockholders. The Company's forecast of the period of time
through which its financial resources will be adequate to support its
operations is forward-looking information, and, as such, actual results may
vary.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
As reported in the registrant's Quarterly Report on Forms 10-Q for the
quarter ended June 30, 1996, the registrant is not a party to any material legal
proceedings other than SIBIA Neurosciences, Inc. v. Cadus Pharmaceutical
Corporation.
Item 2. Changes in Securities
Nothing to report.
Item 3. Defaults Upon Senior Securities
Nothing to report.
Item 4. Submission of Matters to a Vote of Security-Holders
Nothing to report.
Item 5. Other Information
Nothing to report.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
The exhibits listed in the Exhibit Index are included in this
report.
(b) Reports on Form 8-K
None
<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.
CADUS PHARMACEUTICAL CORPORATION
(Registrant)
Date: November 13, 1996 By /s/ JAMES S. RIELLY
---------------------------------------------
James S. Rielly
Director of Finance, Controller and Treasurer
(Authorized Officer and
Principal Financial Officer)
<PAGE>
EXHIBIT INDEX
The following exhibits are filed as part of this Quarterly Report on Form
10-Q:
Exhibit No. Description
----------- -----------
11 Computation of Net Loss Per Share
27 Financial Data Schedule
Exhibit 11
Computation of Net Loss Per Share
Three Months Ended Nine Months Ended
September 30, 1996 September 30, 1996
Net Loss $ (822,141) $ (998,834)
Loss per common and common equivalent share:
Weighted Avg. number of shares
of common stock outstanding during
the periods after giving effect to the
1-3 reverse stock split 10,200,160 4,287,837
Common equivalent shares from stock
options issued during the 12-month
period prior to the registration
statement filing using the treasury
stock method 0 66,308
------------ -----------
Shares used in calculation of EPS 10,200,160 4,354,145
Net loss per common and common
equivalent share $ (0.08) $ (0.23)
============ ===========
Loss per common and common equivalent share
assuming full dilution:
Weighted Avg. number of shares of common
stock outstanding during the periods
after giving effect to the 1-3 reverse
stock split 10,200,160 4,287,837
Series A convertible preferred stock
prior to conversion 826,650 3,582,149
Series B convertible preferred stock
prior to conversion 406,746 1,762,567
Common equivalent shares from stock
options issued during the 12-month
period prior to the registration
statement filing using the treasury
stock method 0 66,308
------------ -----------
Weighted average number of common and
common equivalent shares outstanding -
assuming full dilution 11,433,556 9,698,861
Net Loss per common and common equivalent
share assuming full dilution $ (0.07) $ (0.10)
============ ===========
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the Balance
Sheet, and Income Statement and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 44,658,397
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 45,038,559
<PP&E> 3,842,198
<DEPRECIATION> 1,235,930
<TOTAL-ASSETS> 48,264,714
<CURRENT-LIABILITIES> 1,667,159
<BONDS> 19,572
0
0
<COMMON> 122,006
<OTHER-SE> 46,455,977
<TOTAL-LIABILITY-AND-EQUITY> 48,264,714
<SALES> 0
<TOTAL-REVENUES> 4,875,002
<CGS> 0
<TOTAL-COSTS> 7,014,213
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 104,847
<INCOME-PRETAX> (975,254)
<INCOME-TAX> 23,580
<INCOME-CONTINUING> (998,834)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (998,834)
<EPS-PRIMARY> (0.23)
<EPS-DILUTED> (0.10)
</TABLE>
