U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-QSB
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 for the period ended June 30, 2000.
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE Act of 1934 for the transition period from ___ to ____.
Commission file number: 000-23319
AVANI INTERNATIONAL GROUP INC.
(Name of Small Business Issuer in its charter)
Nevada 88-0367866
(State of Incorporation (I.R.S. Employer I.D. Number)
#328-17 Fawcett Road, Coquitlam, B.C. (Canada) V3K 6V2
(Address of principal executive offices) (Zip Code)
Issuer's telephone number 604-525-2386.
Securities registered under Section 12 (b) of the Act:
Title of each class Name of exchange on which
to be registered each class is to be registered
None None
Securities registered under Section 12(g) of the Act:
Common Stock
(Title of Class)
Check whether issuer (1) filed all reports to be filed by Section 13
or 15(d) of the Exchange Act during the past 12 months (or 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.
(1). Yes: X No:
(2). Yes: X No:
The number of shares issued and outstanding of issuer's common stock,
$.001 par value, as of June 30, 2000 was 20,403,257.
Transitional Small Business Issuer Format (Check One):
Yes: No: X
INDEX
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements. Page No.
Consolidated Condensed Balance Sheet as of June 30, 2000 (unaudited)
and December 31,1999 (audited). 3
Consolidated Condensed Statement of Operations for the Three Months
and Six Months Ended June 30, 2000 and 1999 (unaudited). 4
Consolidated Condensed Statement of Stockholders Equity
for the Six Months Ended June 30, 2000 and 1999 (unaudited). 5
Consolidated Condensed Statement of Cash Flows the Six Months
Ended June 30, 2000 and 1999 (unaudited). 6
Notes to Financial Statements 7
Item 2. Management's Discussion and Analysis of Results of 9
Operations and Financial Condition.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings. 10
Item 2. Change in Securities. 10
Item 3. Defaults Upon Senior securities. 10
Item 4. Submission Of Matters To A Vote of Securityholders. 10
Item 5. Other Information. 10
Item 6. Exhibits and Reports on Form 8-K. 10
Signature 10
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
AVANI INTERNATIONAL GROUP INC.
AND SUBSIDIARIES
C O N T E N T S
PAGE
INDEPENDENT ACCOUNTANTS' REPORT 1
CONSOLIDATED BALANCE SHEETS 2
CONSOLIDATED STATEMENTS OF OPERATIONS 3
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY 4
CONSOLIDATED STATEMENTS OF CASH FLOWS 5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 6 - 8
INDEPENDENT ACCOUNTANTS' REPORT
We have reviewed the accompanying consolidated balance sheets of
Avani International Group, Inc. and Subsidiaries as of June 30, 2000
and 1999 and the related consolidated statements of operations,
stockholders= equity and cash flows for the six months then ended.
These financial statements are the responsibility of the Company=s
management.
We conducted our review in accordance with standards established by
the American Institute of Certified Public Accountants. A review of
interim financial information consists principally of applying
analytical procedures to financial data and making inquiries of
persons responsible for financial and accounting matters. It is
substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken
as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications
that should be made to the accompanying financial statements for them
to be in conformity with generally accepted accounting principles.
As discussed in Note 8, certain conditions indicate that the Company
may be unable to continue as a going concern. The accompanying
financial statements do not include any adjustments to the financial
statements that might be necessary should the Company be unable to
continue as a going concern.
August 4, 2000
PAGE 2
AVANI INTERNATIONAL GROUP INC.
AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
June 30, December 31,
2000 1999
--------- -----------
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash $ 530,986 $ 954,606
Accounts receivable, net 46,276 62,419
Goods and services tax receivable 23,435 20,675
Inventory 58,012 65,078
Prepaid expenses 10,510 12,874
Assets held for resale 401,025 -
------------ ------------
TOTAL CURRENT ASSETS 1,070,244 1,115,652
============ =============
PROPERTY, PLANT AND EQUIPMENT - Net 1,585,735 2,027,440
------------ ------------
OTHER ASSETS
Security deposits 10,515 10,709
Trademarks and licenses 22,213 15,318
----------- ------------
32,728 26,027
TOTAL ASSETS $2,688,707 $3,169,119
============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Loans payable stockholders $ 78,247 $ 109,521
Current portion of long-term debt 294,092 7,865
Accounts payable and accruals 109,722 144,632
Wages and benefits payable 8,850 23,548
Unearned income 18,397 15,542
Bottle and cooler deposits 111,857 107,915
------------ -------------
TOTAL CURRENT LIABILITIES 621,165 409,023
------------ -------------
LONG-TERM DEBT - Net of current portion 124,009 424,074
----------- -------------
TOTAL LIABILITIES 745,174 833,097
----------- -------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
COMMON STOCK, $.001 par value,
25,000,000 shares authorized;
20,403,257 and 20,233,257 shares
issued and outstanding 20,403 20,233
COMMON STOCK DISCOUNT (55,000) (55,000)
WARRANTS OUTSTANDING 547,114 547,114
ADDITIONAL PAID-IN-CAPITAL 5,823,523 5,789,693
ACCUMULATED DEFICIT (4,227,641) (3,804,861)
ACCUMULATED OTHER COMPREHENSIVE LOSS (164,866) (161,157)
------------ -------------
TOTAL STOCKHOLDERS' EQUITY 1,943,533 2,336,022
------------ -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,688,707 $3,169,119
============ =============
The accompanying notes are an integral part of these consolidated
financial statements.
Page 3
AVANI INTERNATIONAL GROUP INC.
AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- -----------------
2000 1999 2000 1999
------------ ---------- ---------- -----------
REVENUE
Bottled water and supply sales $ 134,218 $ 113,214 $ 233,847 $ 279,618
Cooler and equipment sales 5,333 679 9,170 2,111
Cooler rentals 4,779 3,891 6,907 14,553
---------- ---------- ---------- ----------
144,330 117,784 249,924 296,282
---------- ---------- ---------- ----------
COST OF GOODS SOLD
Cost of goods sold
(excluding depreciation) 105,818 68,056 180,104 152,925
Depreciation 9,222 22,070 42,054 43,605
---------- ---------- ---------- ----------
115,040 90,126 222,158 196,530
---------- ---------- ---------- ----------
GROSS PROFIT 29,290 27,658 27,766 99,752
---------- ---------- ---------- ----------
OPERATING EXPENSES
General and administrative 114,369 175,280 330,630 315,872
Marketing 85,027 9,314 126,229 25,692
---------- ---------- ---------- ----------
199,396 184,594 456,859 341,564
---------- ---------- ---------- ----------
LOSS FROM OPERATIONS (170,106) (156,936) (429,093) (241,812)
OTHER INCOME (EXPENSE)
Other 3,908 835 5,919 1,446
Interest income 7,686 - 17,491 -
Interest expense (9,501) (11,001) (17,097) (19,328)
---------- ---------- ---------- ----------
2,093 (10,166) 6,313 (17,882)
---------- ---------- ---------- ----------
NET LOSS $ (168,013) $(167,102) $(422,780) $(259,694)
========== ========== ========== ==========
BASIC AND DILUTED LOSS
PER COMMON SHARE $ (0.01) $ (0.01) $ (0.02) $ (0.02)
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER
OF SHARES 20,400,514 12,191,590 20,372,181 11,899,924
========== ========== ========== ==========
The accompanying notes are an integral part of these consolidated
financial statements.
PAGE 4
AVANI INTERNATIONAL GROUP INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
PAGE 1 OF 2
Common Stock Common Additional
------------------ Stock Warrants Paid-In
Shares Amount Discount Outstanding Capital
----------- --------- ---------- ----------- ------------
BALANCE,
DECEMBER 31, 1999
(AUDITED) 20,233,257 $20,233 $(55,000) $547,114 $5,789,693
ISSUANCE OF COMMON
STOCK 170,000 170 - 33,830
NET LOSS - - - - -
FOREIGN CURRENCY
TRANSLATION
ADJUSTMENTS - - - - -
COMPREHENSIVE LOSS - - - - -
----------- -------- ---------- ---------- -------------
BALANCE, JUNE 30,
2000 20,403,257 $20,403 $(55,000) $547,114 $5,823,523
=========== ========= ========== ========== ===========
AVANI INTERNATIONAL GROUP INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
PAGE 2 OF 2
Accumulated
Other
Accumulated Comprehensive Comprehensive
Deficit Loss Loss
-------------- ---------------- ---------------
BALANCE,
DECEMBER 31, 1999
(AUDITED) $(3,804,861) $(161,157) $ -
ISSUANCE OF COMMON
STOCK - - -
NET LOSS (422,780) - (422,780)
FOREIGN CURRENCY
TRANSLATION
ADJUSTMENTS - (3,709) (3,709)
-------------
COMPREHENSIVE LOSS - - $(426,489)
--------------- --------------- ==============
BALANCE, JUNE 30,
2000 $(4,227,641) $(164,866)
================ ===============
The accompanying notes are an integral part of these consolidated
financial statements.
PAGE 5
AVANI INTERNATIONAL GROUP INC.
AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
2000 1999
----- -----
OPERATING ACTIVITIES
Net loss $(422,780) $(259,694)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation and amortization 55,731 67,609
Issuance of common stock for consulting fees 34,000 -
(Increase) decrease in assets
Accounts receivable 11,904 (25,558)
Inventory 5,683 29,018
Prepaid expenses 2,354 (50,726)
Other assets (11,672) 15,204
Increase (decrease) in liabilities
Accounts payable and accruals (69,285) 113,831
Unearned income and deposits 3,198 2,322
------------ ----------
Net cash used in operating activities (390,867) (107,994)
------------- ----------
INVESTING ACTIVITIES
Acquisition of property, plant and equipment (28,834) (11,158)
------------- ----------
FINANCING ACTIVITIES
Proceeds from mortgages payable - 64,853
Payments of mortgages payable (4,572) (5,282)
Issuance of common shares, net of offering costs - 800,000
------------- -----------
Net cash provided by (used in) financing
activities (4,572) 859,571
------------- -----------
EFFECT OF EXCHANGE RATES ON CASH 1,847 (671)
------------- -----------
NET INCREASE (DECREASE) IN CASH (422,426) 739,748
CASH - BEGINNING OF PERIOD 953,412 103,428
------------- -----------
CASH - END OF PERIOD $ 530,986 $ 843,176
============= ===========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for:
Interest $ 17,097 $ 19,328
============= ============
Income taxes $ - $ -
============= ============
The accompanying notes are an integral part of these consolidated
financial statements.
PAGE 6
AVANI INTERNATIONAL GROUP INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
JUNE 30, 2000 AND 1999
NOTE 1 - INTERIM FINANCIAL INFORMATION
The financial statements of Avani International Group, Inc. and
Subsidiaries (the 'Company') as of June 30, 2000, and for the three
and six months ended June 30, 2000 and 1999 and related footnote
information are unaudited. All adjustments (consisting only of
normal recurring adjustments) have been made which, in the opinion of
management, are necessary for a fair presentation. Results of
operations for the three and six months ended June 30, 2000 and 1999
are not necessarily indicative of the results that may be expected
for any future period. The balance sheet at December 31, 1999 was
derived from the audited financial statements for the year ended
December 31, 1999.
Certain information and footnote disclosures, normally included in
financial statements prepared in accordance with generally accepted
accounting principles, have been omitted. These financial statements
should be read in conjunction with the financial statements and notes
for the year ended December 31, 1999, included in the Form 10-KSB of
the Company for such period.
NOTE 2 - BASIS OF PRESENTATION
The consolidated condensed financial statements include the accounts
of the Company and its subsidiaries. All material intercompany
balances and intercompany transactions have been eliminated.
NOTE 3 - COMPREHENSIVE INCOME
The Company adopted Statement of Financial Accounting Standards No.
130, Comprehensive Income for the first quarter of fiscal year 1998.
Comprehensive income is a more inclusive financial reporting
methodology that includes disclosure of certain financial information
that historically has not been recognized in the calculation of net
income. Comprehensive income (loss), representing foreign currency
translation adjustments for the six months ended June 30, 2000 and
1999 was $(3,709) and $45,745.
NOTE 4 - MAJOR CUSTOMER AND SUPPLIER
In each period the Company sold a substantial portion of its products
to a few customers. During the six months ended June 30, 2000, sales
to an Australian customer aggregated $21,552 and sales to a Japanese
customer aggregated $31,572, and during the six months ended June 30,
1999, sales to an Australian customer aggregated $57,000 and sales to
a Japanese customer aggregated $32,544. At June 30, 2000 and 1999,
amounts due from these customers included in trade accounts
receivable were $-0- and $25,560.
During the six months ended June 30, 2000 and 1999, the Company
purchased approximately 45% and 47% of its materials from one
supplier. At June 30, 2000 and 1999 there were no amounts due to that
supplier. If the supplier ceased doing business with the Company,
management believes that other sources of material are available.
NOTE 5 - COMMON STOCK
The Company issued 170,000 shares valued at $34,000 for consulting
services during the six months ended June 30, 2000.
PAGE 6
AVANI INTERNATIONAL GROUP INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
JUNE 30, 2000 AND 1999
NOTE 6 - JOINT VENTURE AGREEMENT
The Company entered into an agreement on February 18, 2000 with a
Malaysian company, Avani 02 Water SDN.BHD ("AOW"), whereby AOW would
have the exclusive right and license to produce and sell the
Company's proprietary enriched water products. In return AOW would
pay the Company a royalty of 2% of gross revenue, a license fee of
$500,000 per production facility, 20% of the net profits of AOW and
purchase the equipment supplied by the Company.
The royalty will initially be payable within 60 days of preparation
of the annual audited financial statements; however, once AOW has
completed one profitable year, the royalty will be calculated
quarterly and will be payable within 60 days of the end of each year.
The licensing fee is payable on or before 6 months from the date each
facility is commissioned and begins production.
NOTE 7 - FINANCIAL CONSULTING AGREEMENT
On March 23, 2000, the Company entered into a financial consulting
arrangement with SJH Corporate Services, Inc. ("SJH"). SJH
specializes in source funding for companies in their infancy stage,
as well as introducing potential distributors for products. The
company has granted SJH a stock option to acquire 3,200,000 shares of
common stock of Avani with the following terms:
1) Exercise price per share is $.20.
2) The option shares must be exercised on or before each respective
date, in the increments stated below:
Date Number of Option Shares
June 30, 2000 250,000
July 31, 2000 250,000
August 30, 2000 1,000,000
September 30, 2000 250,000
November 30, 2000 1,250,000
December 31, 2000 200,000
NOTE 8 - MANAGEMENT'S PLANS
The Company has incurred substantial recurring losses from
operations. This condition raises substantial doubt about its
ability to continue as a going concern. For the six months ended
June 30, 2000 the Company incurred a net loss of $422,780 and has an
accumulated deficit of $4,227,641.
In view of the matters described above, the continuation of the
Company is dependent on the Company's ability to meet its cash flow
requirements on a continuing basis and to succeed in its future
operations. The consolidated financial statements do not include any
adjustments relating to the recoverability and classification of
recorded asset amounts or amounts and classification of liabilities
that might be necessary should the Company be unable to continue in
the normal course of business. While the Company is expected to be
able to meet its current obligations, its future is dependent on the
ability to obtain capital infusions and/or profitable operations. In
an effort to improve its operations, management is in the process of
instituting certain revenue enhancing measures, including the
establishment of another manufacturing facility in Malaysia, and its
expansion efforts to other international markets.
PAGE 8
Item 2. Management's Discussion and Analysis.
The following discusses the financial results and position of the
consolidated accounts of the Company and its wholly owned
subsidiaries for the periods indicated.
Results of Operations
Revenues for the three- and six-month periods ended June 30, 2000
were $144,330 and $249,924, respectively, compared with revenues of
$117,784 and $296,282 for the same periods in 1999. The decrease of
15.65% for the six-month period in 2000 was due to a loss of sales
to an Australian distributor and a Taiwanese distributor, and the
reduction of local sales. Revenues for the six-month period in 2000
consisted of $233,847 in water and supply sales (a decrease of 16.37%
from $279,618 for the prior period), $9,170 in cooler and equipment
sales (an increase of 334% from $2,111 for the prior period) and
$6,907 in cooler rentals (a decrease of 52.54% from $14,553 for the
prior period). Of the total revenue for the six-month period in 2000,
$21,552 (or 9.22% of total water sales) represented sales to a
second Australian distributor and $31,572 (or 13.5% of total water
sales) represented sales to a Japanese distributor. Interest income
for earned on investment of cash totaled $17,491 for the six-month
period in 2000 compared with $0 for the prior period. The increase
is a result of the increase of available cash for the current
period as compared with the prior period.
Cost of sales for the three- and six-month periods in 2000 totaled
$115,040 and $222,158, respectively, compared with $90,126 and
$196,530 for the same periods in 1999. Cost of goods sold for the six-
month periods as a percentage of sales increased by 22.56% from
66.33% to 88.89% due principally to the reduction in sales and fixed
operating costs. Cost of sales for the six-month period in 2000
consisted of $180,104 in bottled water, supplies, coolers and related
equipment (an increase of 17.77% from $152,925 for the prior period)
and $42,054 in depreciation (a decrease of 3.56% from $43,605 for the
prior period). Gross profit for the three- and six-month periods in
2000 was $29,290 and $27,766, respectively, compared with $27,658 and
$99,752 for the prior periods.
General and administrative expenses which includes administrative
salaries and overhead for the six-month period totaled $330,630
which represents an increase of 4.67% from $315,872 for the prior
period. This slight increase is due to increased personnel costs.
Marketing expenses totaled $126,229 for the six-month period in
2000 representing an increase of 391% from $25,692 for $120,342 for
the prior period. The increase in marketing expenses is due
principally to increased promotional expenses associated with its
overseas markets, and to a lesser extent expenses for local promotions.
Interest expense in connection with the Company's real estate totaled
$17,097 for the six-month period in 2000 representing a decrease of
11.54% from $19,328 for the prior period. Net loss for the three and
six month periods in 2000 was $168,013 and $422,780, respectively,
compared with $167,102 and $259,694 for the respective prior periods.
Liquidity and Capital Resources
Since its inception, the Company has financed its operations through
the private placement of its common stock. During 1999, the
Company raised approximately $1,450,000 net of offering costs from
the private placement of its common stock.
As of June 30, 2000, the Company had working capital in the amount of
$449,079. The Company continues to experience difficulties in
establishing any meaningful distribution channels, and, as a result
continues to experience significant losses from operations. The
Company is uncertain as to when it will achieve profitable
operations. Until such time as it achieves profitable operations for
which no assurances can be given, the Company intends to finance its
ongoing operations through the private placement of its capital stock
or through debt financing. As of this date, the Company has no
commitments for any such financing. No assurances can be given that
the Company will be successful in these endeavors. If the Company is
in fact unsuccessful in its financing endeavors, such event will have
a material adverse impact on its operations.
In March 2000, the Company entered into two agreements with an
unaffiliated company to identify potential sources of capital and to
provide investor relations services. The Company granted 3,200,000
stock options to the third party at an option price of $0.20 per
share. The options are exercisable monthly on or before the end of
each calendar month from June to December 2000 in the following
respective monthly increments; 250,000, 250,000, 1,000,000, 250,000,
1,250,000 and 200,000. In the event an increment is not exercised by
any such respective date, the remaining unexercised options expire
automatically. As of this date, none of the options have been
exercised.
Property, plant and equipment, net of accumulated depreciation,
totaled $1,585,735 on June 30, 2000. Property, plant and equipment,
net of accumulated depreciation, totaled 2,027,440 on
December 31, 1999.
Forward Looking Statements. Certain of the statements contained in
this Quarterly Report on Form 10-QSB includes "forward looking
statements" within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended ("Exchange Act"). See the Company's
Annual Report on Form 10-KSB for additional statements concerning
operations and future capital requirements.
Certain risks exist with respect to the Company and its business,
which risks include the lack of profitable operations, limited
distribution channels, and the need for additional capital to sustain
operations. Readers are urged to refer to the section entitled
"Cautionary Statements in the Company's Annual Report on Form 10-KSB
for the period ended December 31, 1999 for a broader discussion of
such risks and uncertainties.
PAGE 9
Part II OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 2. Changes in Securities.
None
Item 3. Defaults Upon Senior Securities.
None
Item 4. Submission Of Matters To A Vote Of Securityholders.
None
Item 5. Other Information.
None
Item 6. Exhibits.
(a). Furnish the Exhibits required by Item 601 of Regulation S-B.
Exhibit 27.1 - Financial Data Schedule
(b) Reports on Form 8-K.
None
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.
AVANI INTERNATIONAL GROUP, INC.
Date: August 14, 2000
---------------------------
Dennis Robinson - Treasurer and
Chief Accounting Officer
PAGE 10
SCHEDULE 27.1
FINANCIAL DATA SCHEDULE
ART.5 FDS FOR 2nd QUARTER 10-Q
Multiplier 1,000
PERIOD TYPE 6 MONTHS
FISCAL YEAR END DEC-31-1999
PERIOD END JUN-30-2000
CASH 531
SECURITIES 0
RECEIVABLES 46
ALLOWANCES 0
INVENTORY 58
CURRENT-ASSETS 1,070
PP&E 2,118
DEPRECIATION 532
TOTAL ASSETS 2,689
CURRENT-LIABILITIES 621
BONDS 0
COMMON 20
PREFERRED-MANDATORY 0
PREFERRED 0
OTHER-SE 1,924
TOTAL-LIABILITIES-AND-EQUITY 2,689
SALES 250
TOTAL-REVENUES 250
CGS 222
TOTAL-COST 679
OTHER-EXPENSES (23)
LOSS-PROVISON 0
INTEREST-EXPENSE 17
INCOME-PRETAX (423)
INCOME-TAX 0
INCOME-CONTINUING (423)
DISCONTINUED 0
EXTRAORDINARY 0
CHANGES 0
NET-INCOME (423)
EPS-PRIMARY (.02)
EPS-DILUTED (.02)
