UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE EXCHANGE ACT
For the transition period from ________to____________
Commission file number 0-22904
PARKERVISION, INC.
(Exact name of registrant as specified in its charter)
FLORIDA 59-2971472
(State or other jurisdiction of I.R.S. Employer ID No.
incorporation or organization)
8493 BAYMEADOWS WAY
JACKSONVILLE, FLORIDA 32256
(904) 737-1367
(Address of principal executive offices)
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 __.
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes [ ] No [ ].
APPLICABLE ONLY TO CORPORATE ISSUERS
As of April 28, 2000, 11,952,365 shares of the Issuer's Common Stock, $.01 par
value, were outstanding.
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The accompanying unaudited financial statements of ParkerVision, Inc. (the
"Company") have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions to Form
10-Q and Rule 10-01 of Regulation S-X. All adjustments which, in the opinion of
management, are necessary for a fair presentation of the financial condition and
results of operations have been included. Operating results for the three month
period ended March 31, 2000 are not necessarily indicative of the results that
may be expected for the year ending December 31, 2000.
These interim consolidated financial statements should be read in conjunction
with the Company's latest Annual Report on Form 10-K for the year ended December
31, 1999.
2
<PAGE>
PARKERVISION, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
March 31,
2000 December 31,
ASSETS (unaudited) 1999
------ ------------ ------------
CURRENT ASSETS:
<S> <C> <C>
Cash and cash equivalents $ 4,534,772 $ 2,128,742
Short-term investments 13,607,320 17,530,436
Accounts receivable, net of allowance for doubtful
accounts of $37,308 at March 31, 2000 and
December 31, 1999, respectively 760,977 876,632
Interest and other receivables 108,835 11,130
Inventories, net 4,463,416 3,922,916
Prepaid expenses and other 2,707,514 867,654
------------ ------------
Total current assets 26,182,834 25,337,510
PROPERTY AND EQUIPMENT, net 3,789,790 3,284,755
OTHER ASSETS, net 7,419,978 4,149,153
------------ ------------
Total assets $ 37,392,602 $ 32,771,418
============ ============
</TABLE>
The accompanying notes are an integral part of these balance sheets.
3
<PAGE>
PARKERVISION, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
March 31,
2000 December 31,
LIABILITIES AND SHAREHOLDERS' EQUITY (unaudited) 1999
------------------------------------ ------------ ------------
CURRENT LIABILITIES:
<S> <C> <C>
Accounts payable $ 1,672,913 $ 639,684
Accrued expenses:
Salaries and wages 468,815 353,736
Warranty reserves 120,749 139,326
Rebates payable 98,061 73,004
Professional fees and other 455,246 563,213
Deferred revenue 411,098 835,988
------------ ------------
Total current liabilities 3,226,882 2,604,951
DEFERRED INCOME TAXES 30,144 30,144
COMMITMENTS AND CONTINGENCIES (Notes 4, 6 and 7)
------------ ------------
Total liabilities 3,257,026 2,635,095
SHAREHOLDERS' EQUITY:
Preferred stock, $1 par value, 1,000,000 shares
authorized, 114,019 shares issued and outstanding at
March 31, 2000 114,019 0
Common stock, $.01 par value, 20,000,000 shares
authorized, 11,950,365 and 11,790,048 shares issued
and outstanding at March 31, 2000 and December
31, 1999, respectively 119,504 117,900
Warrants outstanding 3,232,025 3,232,025
Additional paid-in capital 60,413,745 53,723,742
Accumulated other comprehensive loss (133,572) (187,052)
Accumulated deficit (29,610,145) (26,750,292)
------------ ------------
Total shareholders' equity 34,135,576 30,136,323
------------ ------------
Total liabilities and shareholders' equity 37,392,602 $ 32,771,418
============ ============
</TABLE>
The accompanying notes are an integral part of these balance sheets.
4
<PAGE>
PARKERVISION, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
-----------------------------
March 31, March 31,
2000 1999
------------ ------------
Revenues, net $ 2,740,031 $ 2,469,751
Cost of goods sold 1,441,139 1,632,803
------------ ------------
Gross margin 1,298,892 836,948
Research and development expenses 2,111,742 1,170,988
Marketing and selling expenses 1,214,944 748,712
General and administrative expenses 1,025,073 806,502
------------ ------------
Total operating expenses 4,351,759 2,726,202
------------ ------------
Loss from operations (3,052,867) (1,889,254)
Interest income 193,014 398,900
------------ ------------
Net loss $ (2,859,853) $ (1,490,354)
============ ============
Basic loss per common share $ (.24) $ (0.13)
============ ============
The accompanying notes are an integral part of these statements.
5
<PAGE>
PARKERVISION, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-----------------------------
2000 1999
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net loss $ (2,859,853) $ (1,490,354)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation and amortization 328,516 328,601
Provision for obsolete inventories 30,000 60,000
Stock compensation 198,669 0
Changes in operating assets and liabilities:
Accounts receivable, net 115,655 47,367
Interest and other receivables (97,705) 68,561
Inventories (570,500) (585,967)
Prepaid and other expenses (80,451) (315,091)
Accounts payable and accrued expenses 1,607,164 654,927
Deferred revenue (424,890) 92,849
------------ ------------
Total adjustments 1,106,458 351,247
------------ ------------
Net cash used in operating activities (1,753,395) (1,139,107)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturity of investments 4,000,000 1,000,000
Purchase of property and equipment (411,351) (300,235)
Purchase of intangible assets (517,315) (383,610)
------------ ------------
Net cash provided by investing activities 3,071,334 316,155
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock 1,088,091 567,996
------------ ------------
Net cash provided by financing activities 1,088,091 567,996
------------ ------------
NET CHANGE IN CASH AND CASH EQUIVALENTS 2,406,030 (254,956)
CASH AND CASH EQUIVALENTS, beginning of period 2,128,742 10,569,435
------------ ------------
CASH AND CASH EQUIVALENTS, end of period $ 4,534,772 $ 10,314,479
============ ============
</TABLE>
The accompanying notes are an integral part of these statements.
6
<PAGE>
PARKERVISION, INC.
CONDENSED NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. ACCOUNTING POLICIES
-------------------
There have been no changes in accounting policies from those stated in the
Annual Report on Form 10-K for the year ended December 31, 1999.
CASH AND CASH EQUIVALENTS. For the purpose of reporting cash flows, the
Company considers cash and cash equivalents to include cash on hand and
interest-bearing deposits. Cash and cash equivalents include overnight
repurchase agreements and U.S. Treasury money market investments totaling
approximately $4,474,000 and $1,934,000 at March 31, 2000 and December 31,
1999, respectively.
COMPREHENSIVE INCOME. The Company's other comprehensive income (loss) is
comprised of unrealized gains (losses) on investments available-for-sale.
The Company's other comprehensive income (loss) for the three month periods
ended March 31, 2000 and 1999 was $53,480 and $(28,100), respectively. The
Company's total comprehensive loss for the periods ended March 31, 2000 and
1999 was $(2,806,373) and $(1,518,454), respectively.
STATEMENTS OF CASH FLOWS. In March 2000, the Company issued Preferred Stock
for the acquisition of substantially all of the assets of Signal
Technologies, Inc. ("STI") valued at $1,996,700 (see Note 7). In addition,
the Company issued Preferred Stock and restricted common stock under its
1993 Stock Option Plan ("1993 Plan") as signing bonuses and prepaid
compensation totaling approximately $3,600,000.
RECLASSIFICATIONS. Certain reclassifications have been made to the 1999
financial statements in order to conform to the 2000 presentation.
2. LOSS PER SHARE
--------------
Basic loss per share is determined based on the weighted average number of
common shares assumed to be outstanding during each period. Dilutive loss
per share is the same as basic loss per share as all common share
equivalents are excluded from the calculation as their effect is
anti-dilutive. The weighted average number of common shares assumed to be
outstanding for the three month periods ended March 31, 2000 and 1999 is
11,828,868 and 11,728,143, respectively.
7
<PAGE>
3. INVENTORIES:
------------
Inventories consist of the following:
March 31, December 31,
2000 1999
------------ ------------
Purchased materials $ 2,588,326 $ 2,328,805
Work in process 111,168 95,253
Finished goods 2,285,376 2,002,670
------------ ------------
4,984,870 4,426,728
Less allowance for inventory obsolescence (521,454) (503,812)
------------ ------------
$ 4,463,416 $ 3,922,916
============ ============
4. CONCENTRATIONS OF CREDIT RISK
-----------------------------
For the quarter ended March 31, 2000, Vtel Corporation ("VTEL") and one
broadcast customer accounted for approximately 19% and 21%, respectively of
the Company's total revenues. For the quarter ended March 31, 1999, VTEL
accounted for approximately 23% of total revenues. VTEL and two other
studio customers accounted for approximately 59% of accounts receivable at
March 31, 2000. The Company closely monitors extensions of credit and has
never experienced significant credit losses.
5. BUSINESS SEGMENT INFORMATION
----------------------------
The Company's segments include the Video Products Division ("Video
Division") and the Wireless Technology Division ("Wireless Division").
Segment results are as follows (in thousands):
Three months ended
------------------------
March 31, March 31,
2000 1999
---------- ---------
NET SALES:
Video Division $ 2,740 $ 2,470
Wireless Division 0 0
------- -------
Total net sales $ 2,740 $ 2,470
======= =======
LOSS FROM OPERATIONS:
Video Division $ (573) $ (621)
Wireless Division (2,480) (1,268)
------- -------
Total loss from operations $(3,053) $(1,889)
======= =======
8
<PAGE>
Three months ended
------------------------
March 31, March 31,
2000 1999
---------- ---------
DEPRECIATION:
Video Division $ 137 $ 138
Wireless Division 115 72
------- -------
Total depreciation $ 252 $ 210
======= =======
AMORTIZATION OF INTANGIBLES AND
OTHER ASSETS:
Video Division $ 16 $ 25
Wireless Division 85 93
------- -------
Total amortization $ 101 $ 118
======= =======
CAPITAL EXPENDITURES:
Video Division $ 82 $ 212
Wireless Division 562 66
------- -------
Segment capital expenditures $ 644 $ 278
======= =======
March 31, December 31,
2000 1999
---------- ---------
ASSETS:
Video Division $ 7,851 $ 7,345
Wireless Division 9,971 4,610
------- -------
Segment assets $17,822 $11,955
======= =======
A reconciliation of segment assets to total assets reported in the
accompanying balance sheets is as follows:
March 31, December 31,
2000 1999
---------- ---------
Business segment assets $17,822 $11,955
Corporate assets:
Cash and investments 18,142 19,659
Interest and other receivables 109 11
Prepaid expenses and other 452 466
Property and equipment, net 748 670
Other assets 120 10
------- -------
Total assets $37,393 $32,771
======= =======
9
<PAGE>
6. STOCK OPTIONS
-------------
For the three month period ended March 31, 2000, the Company granted stock
options to purchase an aggregate of 539,500 shares of its common stock at
exercise prices ranging from $23.25 to $31.125 per share, primarily in
connection with employment offers to personnel engaged in the Wireless
Division. Options to purchase 509,500 shares vest ratably over five years
and options to purchase the remaining 30,000 shares vest ten years from the
grant date. These options were granted under the 1993 Stock Plan (the "1993
Plan") and expire five years from the date they become vested.
In February 2000, the Company granted an option under the 1993 Plan to an
officer and director to purchase 162,000 shares of its common stock at an
exercise price of $28.25. The option vests ten years from the date of grant
and expire five years from the date it becomes vested. The Company also
issued an option under the 1993 Plan to purchase 100,000 shares of its
common stock in connection with the addition of a director in February
2000. This option vests ratably over four years at an exercise price of
$30.25 and expires five years from the date it becomes vested. In March
2000, in connection with the addition of another director, the Company
granted an option to purchase 100,000 shares of its common stock under the
1993 Plan at an exercise price of $25.125 per share. This option vests
ratably over two years and expires five years from the date it becomes
vested.
As of March 31, 2000, options to purchase 178,338 shares of common stock
were available for future grants under the 1993 Plan.
7. STOCK AUTHORIZATION AND ISSUANCE
--------------------------------
In March 2000, the Company issued 79,868 shares of Series D Preferred
Stock, $1.00 par value, for the acquisition of substantially all of the
assets of Signal Technologies, Inc., a subchapter S corporation
specializing in radio-frequency design services. These assets, which
include property and equipment, accounts receivable and intangible assets,
were acquired for a purchase price of $1,996,700 which was fully paid in
Series D Preferred Stock.
Also in connection with the acquisition, the Company issued an aggregate of
34,151 shares of Class A, B and C Preferred Stock and 92,112 shares of
restricted stock under its 1993 Plan as signing bonuses and prepaid
compensation for the employees of STI. Prepaid compensation of
approximately $3,600,000 is included in prepaid assets and other assets and
will be amortized to compensation expense over the three-year term of the
related employment agreements.
10
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Forward-Looking Statements
- --------------------------
When used in this Form 10-Q and in future filings by the Company with the
Securities and Exchange Commission, the words or phrases "will likely result",
"management expects" or "Company expects", "will continue", "is anticipated",
"estimated" or similar expressions are intended to identify "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Readers are cautioned not to place undue reliance on such
forward-looking statements, each of which speak only as of the date made. Such
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from historical earnings and those presently
anticipated or projected, including the timely development and acceptance of new
products, sources of supply and concentration of customers. The Company has no
obligation to publicly release the results of any revisions, which may be made
to any forward-looking statements to reflect, anticipated events or
circumstances occurring after the date of such statements.
Results of Operations for Each of the Three Month Periods Ended March 31, 2000
- --------------------------------------------------------------------------------
and 1999
- --------
Revenues
- --------
Revenues for the three months ended March 31, 2000 increased by $270,280 as
compared to the same period in 1999 due to studio systems sales, offset somewhat
by a decrease in the number of camera systems sold and the average selling price
per camera system. The Company sold three studio systems at an average selling
price of $228,000 during the three months ended March 31, 2000, compared to no
studio revenue for the same period in 1999. The Company sold 300 camera systems
at an average selling price of $6,800 per system during the three months ended
March 31, 2000, as compared to 331 systems at an average selling price of $6,900
for the three months ended March 31, 1999. For the three month period ending
March 31, 1999, revenues included approximately $187,000 of third party
videoconferencing equipment which was sold at the Company's cost.
Gross Margin
- ------------
For the three month periods ended March 31, 2000 and 1999, gross margins as a
percentage of sales were 47.4% and 33.9%, respectively. The significant increase
in margin is primarily due to the sale of higher margin studio systems as well
as the sale of third party equipment at cost in the quarter ended March 31,
1999.
Research and Development Expenses
- ---------------------------------
The Company's research and development expenses for the three month period ended
March 31, 2000 increased $940,754 as compared to the same period in 1999. This
increase is primarily due to the increase in wireless division personnel and the
expenses related to new wireless engineering design locations in Florida, Utah
and California.
Marketing and Selling Expenses
- ------------------------------
Marketing and selling expenses for the three month period ended March 31, 2000
increased $466,232 as compared to the same period in 1999. This increase is
primarily due to the addition of a wireless business development staff during
1999 for marketing of the Company's Direct2Data technology. In addition, the
Company added a project management and training staff late in 1999 for
installation, training and support of its studio system sales. These increases
were offset somewhat by decreases in trade show costs for the first quarter of
2000 compared to the same period in 1999 due to a reduction in the number of
shows attended.
11
<PAGE>
General and Administrative Expenses
- -----------------------------------
For the three month period ended March 31, 2000, general and administrative
expenses increased $218,571 over the same period in 1999. This increase is
primarily a result of increased personnel costs and increased usage of legal and
other professional services, primarily in connection with the Company's wireless
technology. These increases are offset somewhat be decreases in the amortization
of prepaid consulting fees.
Interest Income
- ---------------
Interest income for the three month period ended March 31, 2000 decreased
$205,886 from the same period in 1999. This decrease is due to the use of
proceeds from maturing investments to fund operations during 1999 and 2000.
Loss and Loss per Share
- -----------------------
The Company's net loss increased by $1,369,499, or $0.11 per common share from
the three month period ended March 31, 1999 to the same period in 2000. This
increase in net loss was primarily due to a $1.2 million increase in operating
expenses related to the Company's Wireless Division.
Backlog
- -------
The Company had camera backlog of approximately $267,000 and $390,000 at March
31, 2000 and December 31, 1999, respectively. Camera backlog consists of orders
received, which generally have a specified delivery schedule within three to
five weeks of receipt. In addition, the Company had studio sales pending
installation of approximately $650,000 and $560,000 at March 31, 2000 and
December 31, 1999, respectively.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
At March 31, 2000, the Company had working capital of $22,955,952, an increase
of $223,393 from $22,732,559 at December 31, 1999. This increase is primarily
due to the acquisition of assets for stock in March 2000 and the exercise of
employee stock options during the first quarter of 2000, offset by the use of
cash to fund operations during the same period. The Company's principal source
of liquidity at March 31, 2000 consisted of $18,142,092 in cash and short-term
investments. Until the Company generates sufficient revenues from system and
other sales, it will be required to continue to utilize its cash and investments
to cover the continuing expense of product development, marketing, and general
administration. Based on the Company's current estimates, it believes its cash
and investments will provide sufficient resources to meet its cash requirements
for the next twelve months. Thereafter, the Company will require a significant
increase in revenues or additional capital to continue to fund its operations
and business plans. To the extent that the Company requires additional capital,
it will incur debt or sell equity securities. The Company has no current
arrangement with respect to any additional financing.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS. Not Applicable.
ITEM 2. CHANGES IN SECURITIES.
12
<PAGE>
Sales of Unregistered Securities
- --------------------------------
<TABLE>
<CAPTION>
Consideration received and Exemption If option, warrant or
description of underwriting or from convertible security,
Date of sale Title of Number other discounts to market price registration terms of exercise or
security sold afforded to purchasers claimed conversion
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
2/15/00 Options to 162,000 Option granted - no 4(2) Exercisable for five
purchase consideration received by years from the date
common Company until exercise option first becomes
stock vested, options vest on
granted to 2/15/10 at an exercise
an officer price of $28.25 per share
and director
2/25/00 Options to 100,000 Option granted - no 4(2) Exercisable for five
purchase consideration received by years from the date
common Company until exercise option first becomes
stock vested, option vests
granted to ratably over four years
a director at an exercise price of
$30.25 per share
3/10/00 Series A 6,795 No consideration - issued in 4(2) Automatically converted
Preferred connection with employment on March 10, 2001 into
Stock the number of shares of
granted to common stock equivalent
an employee to a market value of
$169,875
3/10/00 Series B 13,678 No consideration - issued in 4(2) Automatically converted
Preferred connection with employment on March 10, 2002 into
Stock the number of shares of
granted to common stock equivalent
employees to a market value of
$341,950
3/10/00 Series C 13,678 No consideration - issued in 4(2) Automatically converted
Preferred connection with employment on March 10, 2003 into
Stock the number of shares of
granted to common stock equivalent
employees to a market value of
$341,950
3/10/00 Series D 79,868 Assets valued at $1,996,700 4(2) Convertible on or after
Preferred March 10, 2001with an
Stock automatic conversion on
granted to March 10, 2002 into the
STI number of shares of
common stock equivalent
to a market value of
$1,996,700
13
<PAGE>
<CAPTION>
Consideration received and Exemption If option, warrant or
description of underwriting or from convertible security,
Date of sale Title of Number other discounts to market price registration terms of exercise or
security sold afforded to purchasers claimed conversion
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
3/30/00 Option to 100,000 Option granted - no 4(2) Exercisable for five
purchase consideration received by years from the date
common Company until exercise option first becomes
stock vested, option vests
granted to ratably over two years
a director at an exercise price of
$25.125 per share
3/30/00 Option to 30,000 Option granted - no 4(2) Exercisable for five
purchase consideration received by years from the date
common Company until exercise option first becomes
stock vested, options vest on
granted to 3/30/10 at an exercise
an employee price of $29.3125 per
share
1/17/00 to Options to 509,500 Option granted - no 4(2) Exercisable for five
3/30/00 purchase consideration received by years from the date
common Company until exercise options first become
stock vested, options vest
granted to ratably over five years
employees at exercise prices
ranging from $23.25 to
$31.125 per share
</TABLE>
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.
EXHIBITS
Exhibit 27.1 Financial Data Schedule
REPORTS ON FORM 8-K
None
14
<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.
ParkerVision, Inc.
Registrant
May 15, 2000 By: /s/ Jeffrey L. Parker
----------------------
Jeffrey L. Parker
Chairman and Chief Executive Officer
May 15, 2000 By: /s/ Cynthia L. Poehlman
------------------------
Cynthia L. Poehlman
Controller and Chief Accounting Officer
15
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 4,534,772
<SECURITIES> 13,607,320
<RECEIVABLES> 798,285
<ALLOWANCES> 37,308
<INVENTORY> 4,463,416
<CURRENT-ASSETS> 26,182,834
<PP&E> 8,056,631
<DEPRECIATION> 4,266,841
<TOTAL-ASSETS> 37,392,602
<CURRENT-LIABILITIES> 3,226,882
<BONDS> 0
119,504
0
<COMMON> 114,019
<OTHER-SE> 33,902,053
<TOTAL-LIABILITY-AND-EQUITY> 37,392,602
<SALES> 2,740,031
<TOTAL-REVENUES> 2,740,031
<CGS> 1,441,139
<TOTAL-COSTS> 1,441,139
<OTHER-EXPENSES> 4,351,759
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (2,859,853)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,859,853)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,859,853)
<EPS-BASIC> (0.24)
<EPS-DILUTED> (0.24)
</TABLE>
