mac os not yet set


24" iMac mid 2007 6GB RAM 1TB HD El Capitan OS

When starting up this machine I get this message:
"Your computer restarted because of a problem. Touch any key..."
Then in the upper left corner of the screen I get a message (in monochrome, like at the root level):
"CPU (1caller) process 1 s/bin launch failed
Debugger called: C panic
Backtrace CPU Frame return address

(a series of alphanumerics show up, about a dozen or so)
BSD process name corresponding to current init
Boot args; rp=file
mac os version:
not yet set"

There is more info but it is difficult to retrieve as this only stays on the screen for a second or two. It's a total kernel panic.
To complicate things even more the mouse and keyboard are not recognized so I cannot go to Recovery mode or Safe mode or any other startup mode.
Have I lost the drive completely?