SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 02549
Form 10-KSB
ANNUAL REPORT UNDER SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended October 3, 1998 Commission File Number 0-122
EICO ELECTRONIC INSTRUMENT CO., INC.
State of Incorporation: New York I.R.S. Employer I.D. No.:11-524626
Office: 233 Broadway, #1085, N.Y., N.Y. (212) 566-4995
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Common Stock, par
value $1 per share.
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,
and (2) has been subject to such filing requirements for the past 90 days.
Revenues for the most recent fiscal year are $4,622,730.
There is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B and no disclosure will be contained, to the best of registrants
knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this form or any amendment to this form.
There are no documents required to be filed by Sec. 12, 13, or 15(d) of the
Exchange Act after the distribution of a plan confirmed by a court.
The aggregate market value, determined by multiplying the bid price at October
3, 1998, by the number of shares held by non affiliates of the registrant, is
$431,980.
As of October 3, 1998, 598,307 shares of the registrant's Capital Stock were
outstanding (exclusive of 9,986 shares held in treasury).
CERTAIN EXHIBITS PREVIOUSLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
ARE INCORPORATED BY REFERENCE
<PAGE>
PART I
ITEM I-BUSINESS
(a) The major asset (other than cash and investment in U.S. Treasury
obligations) of the corporation was the first mortgage it held on the property
it formerly owned, located at 131-01 39th Avenue, Flushing, N.Y. On June 25,
1993, the Company sold its real property in Flushing for $5,000,000. Pursuant to
the purchase money mortgage, the purchasers, Syng Man Rhee and Choon Ok Rhee,
were required to pay the mortgage principal of $4,250,000, with interest at 8%
per year, at the rate of $33,241 per month for 60 monthly payments that began in
September 1993, with a balloon payment of $4,000,617 due September 1998. A
balloon payment was paid October 13, 1998.
Registrant's prior history includes the design, production and
distribution of electronic test instruments, and security devices.
(b)(1) For the year ended October 3, 1998, the registrant's main source of
income was payments received from the mortgage described above.
(b)(2)-(10) Not applicable.
(b)(11) None.
(b)(12) The company had three employees for much of the year.
ITEM 2-PROPERTIES
Registrant's office occupies a space of approximately 150 square feet at
233 Broadway, Suite 1085, New York, N.Y. The lease terminates January 31, 1999.
The monthly rental is $840.
ITEM 3-LEGAL PROCEEDINGS
None.
<PAGE>
ITEM 4-SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Company has not submitted any matter to a vote of security holders
during the fourth quarter of the fiscal year covered by this report, through the
solicitation of proxies or otherwise.
PART II
ITEM 5-MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
The common stock of the Registrant is traded in the over the counter
market. The National Quotation Bureau reported a "bid" of 2.625 and an "asked"
of 4.5 on October 2, 1998, and a "bid" of 1 and an "asked" of 4 on September 26,
1997. These quotes do not reflect retail mark-ups, mark downs, or commissions,
and may not necessarily represent actual transactions
On September 16, 1997, the Company declared a $.20 per share dividend,
payable on January 9, 1998 to shareholders of record on December 4, 1997.
There were 292 shareholders of record as of October 3, 1998.
ITEM 6-MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
On June 25, 1993, the Company sold its real property in Flushing, New York
for $5,000,000. The contract of sale required the purchasers, Syng Man Rhee and
Choon Ok Rhee, to pay $750,000 at the closing. In addition, a first mortgage of
$4,250,000 was held by the Company. The mortgage principal, with interest at 8%
per year, was payable in 60 monthly payments of $33,241 beginning September
1993, with a balloon payment of $4,000,617 due September 25, 1998. For financial
accounting purposes, the Company had recorded the sale on the cost recovery
method. Using this method, no profit was recognized until cash payments by the
buyers exceeded the Company's cost basis of the property plus selling expenses.
Cash payments by the buyers exceeded this level in February 1995.
<PAGE>
On September 25, 1998, the balloon payment was not received. The
collectability of the receivable was evaluated on that date. The company was
informed by the purchasers that they intended to make such payment but their
financing was not finalized to conclude a timely closing. The closing occurred
on October 13, 1998. In addition, a late payment penalty of $200,000 was
received. Based on the information it received from the purchasers as at the
date of the balloon, the company was reasonably assured of collecting the
balloon and recorded the gain and late payment penalty on the full accrual
method in the statements for the year ended October 3, 1998.
For the years ended October 3, 1998, and September 27, 1997, the financial
statements include interest income on the mortgage of $326,912 and $326,798
respectively, and gain on the sale of the real property of $4,045,452 and
$72,091 respectively.
Investment interest income for this year decreased because of lower rates
compared to the prior year.
General and corporate expenses increased in the current year primarily as
a result of increased compensation and professional fees incurred due to the
collection of the mortgage and late payment penalty.
After collection of the mortgage, the company has cash and investments in
Treasury obligations of approximately $5,300,000 and shareholders equity of
approximately $3,800,000.
The Company is currently evaluating its options for the future and has no
formal material commitment for future capital expenditures.
<PAGE>
ITEM 7-FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
EICO ELECTRONIC INSTRUMENT CO., INC.
- INDEX -
INDEPENDENT AUDITORS' REPORT
BALANCE SHEET AS AT OCTOBER 3, 1998
AND SEPTEMBER 27, 1997
STATEMENT OF OPERATIONS AND RETAINED
EARNINGS FOR THE YEARS ENDED
OCTOBER 3, 1998 AND SEPTEMBER 27, 1997
STATEMENT OF CASH FLOWS FOR THE YEARS
ENDED OCTOBER 3, 1998 AND
SEPTEMBER 27, 1997
NOTES TO FINANCIAL STATEMENTS
<PAGE>
[LETTERHEAD OF EISNER & LUBIN LLP]
Independent Auditors' Report
To the Board of Directors
and Stockholders
EICO Electronic Instrument Co., Inc.
We have audited the accompanying balance sheets of EICO Electronic
Instrument Co., Inc. as at October 3, 1998 and September 27, 1997, and the
related statements of operations and retained earnings and cash flows for the
years then ended. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of EICO Electronic
Instrument Co., Inc. at October 3, 1998 and September 27, 1997, and the results
of its operations and cash flows for the years then ended in conformity with
generally accepted accounting principles.
/s/ Eisner & Lubin LLP
----------------------------
CERTIFIED PUBLIC ACCOUNTANTS
New York, New York
November 13, 1998
1.
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
BALANCE SHEET
October 3, September 27,
1998 1997
---------- ----------
ASSETS
Cash $ 139,234 $ 190,027
Mortgage receivable (less unrecognized
gain on sale of property of
$4,045,452 in 1997) 3,974,124 --
Mortgage interest and penalty
receivable - net of escrow balance 155,517
Prepaid expenses 13,760 10,563
Deferred income taxes 567,000
Investments in U.S. Treasury obligations
(at amortized cost; approximate
market $1,039,000 in 1998 and
$916,000 in 1997) 1,038,590 920,000
Other assets 5,414 8,673
---------- ----------
TOTAL $5,326,639 $1,696,263
========== ==========
LIABILITIES
Accrued taxes and other expenses $ 86,123 $ 40,959
Income taxes payable 1,433,223 50,153
Dividends payable 120,076
Escrow deposit payable (less cash
in bank account of $92,650 in 1997) --
---------- ----------
Total liabilities 1,519,346 211,188
---------- ----------
STOCKHOLDERS' EQUITY
Capital stock - $1 par value - authorized
1,000,000 shares; issued 608,293
shares (including treasury shares) 608,293 608,293
Additional paid-in capital 617,213 617,213
Retained earnings 2,609,033 279,560
---------- ----------
Total 3,834,539 1,505,066
Less cost of 9,986 shares in 1998
and 7,913 shares in 1997 of
capital stock in treasury 27,246 19,991
---------- ----------
Total stockholders' equity 3,807,293 1,485,075
---------- ----------
TOTAL $5,326,639 $l,696,263
========== ==========
The notes to financial statements are made a part hereof.
2.
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
STATEMENT OF OPERATIONS AND RETAINED EARNINGS
Year Ended Year Ended
October 3, September 27,
1998 1997
---------- ----------
Income:
Interest on mortgage $ 326,912 $ 326,798
Interest on investments 50,336 57,325
Gain on sale of property 4,045,452 72,091
Late payment penalty 200,030
---------- ----------
Total 4,622,730 456,214
General and corporate expenses 253,257 193,893
---------- ----------
Earnings before income taxes 4,369,473 262,321
Income taxes 2,040,000 109,000
---------- ----------
NET EARNINGS 2,329,473 153,321
Retained earnings - beginning of year 279,560 246,315
Dividends (120,076)
---------- ----------
RETAINED EARNINGS - END OF YEAR $2,609,033 $ 279,560
========== ==========
Net earnings per share $ 3.88 $ .26
========== ==========
Dividends per share $ -- $ .20
========== ==========
AVERAGE NUMBER OF SHARES USED
IN COMPUTING NET EARNINGS
PER SHARE 600,274 600,380
========== ==========
The notes to financial statements are made a part hereof.
3.
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
STATEMENT OF CASH FLOWS
Year Ended Year Ended
October 3, September 27,
1998 1997
----------- -----------
Cash flows from operating activities:
Cash paid to suppliers and employees $ (204,834) $ (190,483)
Interest received 374,051 389,690
Income taxes paid (89,930) (101,152)
Late fee penalty collected 44,513
----------- -----------
Net cash provided by
operating activities 123,800 98,055
----------- -----------
Cash flows from investing activities:
Proceeds from sale of property -
collection of mortgage principal 71,328 72,091
Proceeds from redemptions of U.S.
Treasury obligations 1,027,170 115,000
Investments in U.S. Treasury
obligations (1,145,760) (165,000)
----------- -----------
Net cash provided by (used in)
investing activities (47,262) 22,091
----------- -----------
Cash flows from financing activities:
Dividends paid (120,076) (120,076)
Acquisition of treasury stock 7,255
----------- -----------
Net cash (used in)
financing activities (127,331) (120,076)
----------- -----------
NET INCREASE (DECREASE) IN CASH (50,793) 70
Cash - beginning of year 190,027 189,957
----------- -----------
CASH - END OF YEAR $ 139,234 $ 190,027
=========== ===========
(Continued) 4.
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
STATEMENT OF CASH FLOWS
- Sheet 2 -
Year Ended Year Ended
October 3, September 27,
1998 1997
----------- -----------
Reconciliation of net earnings to net
cash provided by operating activities:
Net earnings $ 2,329,473 $ 153,321
Adjustments to reconcile net
earnings to net cash provided
by operating activities:
Gain on sale of property (less
$3,974,124 of gain recognized
in 1998 and collected
subsequently to October 3, 1998) (71,328) (72,091)
Deferred income taxes 567,000 9,000
Decrease (increase) in:
Prepaid expenses (3,197) 5,718
Other assets 3,259 3,259
Mortgage receivable (3,974,124)
Mortgage interest and penalty
receivable - net of escrow
balance (155,517)
(Decrease) increase in:
Accrued taxes and
other expenses 45,164
Income taxes payable 1,383,070 (1,152)
----------- -----------
Net cash provided by
operating activities $ 123,800 $ 98,055
=========== ===========
The notes to financial statements are made a part hereof.
5.
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
NOTES TO FINANCIAL STATEMENTS
(Note A) - Summary of Significant
Accounting Policies:
(1) For financial statement purposes, EICO Electronic Instrument Co., Inc.
(the Company) recorded the sale of property in 1993 on the cost recovery method
(no profit was recognized until cash payments by the buyer exceeded the
Company's cost basis of the property plus selling expenses). For income tax
purposes, such sale has been reported on the installment sales method (profit is
prorated and recognized as collections of the total sales price are received). A
deferred tax asset was recognized on the difference between the income
recognized for tax purposes over the income recognized for financial accounting
purposes.
The mortgage balloon balance was due on September 25, 1998. The
closing took place and payment was received on October 13, 1998. The Company
determined that the full accrual method applied as of September 25, 1998 and
recorded a gain in the amount of the balloon balance and a late payment penalty
as of that date.
(2) Earnings Per Share - Earnings or loss per share is based on the
average number of shares of capital stock outstanding during each year,
exclusive of treasury shares.
(3) Income Taxes - Deferred taxes are recorded in the accounts to reflect
the interperiod allocation of income taxes resulting from differences in
reporting revenue and expenses for financial accounting and income tax purposes.
The principal temporary difference has been reporting the sale of property on
the cost recovery method for financial accounting purposes and on the
installment method for income tax purposes.
(4) Investments in U.S. Treasury obligations are classified as being held
to maturity and measured at amortized cost.
The fair market of the investments at October 3, 1998 and September
27, 1997 approximates amortized cost. The investments at October 3, 1998 mature
in November and December 1998.
(5) Use of Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles requires management to
make estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.
(Continued) 6.
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
NOTES TO FINANCIAL STATEMENTS
- Sheet 2 -
(Note B) - Mortgage Receivable:
On June 25, 1993, the Company sold its property for $5,000,000. The
contract of sale required the payment of $750,000 at the closing and a first
mortgage of $4,250,000 to be held by the Company. The mortgage, with interest at
8% a year, was due in 60 monthly payments of $33,241 beginning September 1993,
with a balloon principal payment of $3,974,124 due September 25, 1998. For
financial accounting purposes, the Company had recorded the sale on the cost
recovery method.
The sale comprises:
Sales price $ 5,000,000
Less real estate transfer taxes
and other closing costs 788,876
-----------
Balance 4,211,124
Cost basis 535,219
-----------
Gain on sale of property 3,675,905
Interest collected (unrecognized)
to September 30, 1995 544,651
Recognized gain for year ended
September 28, 1996 (103,013)
-----------
Unrecognized gain on sale of
property at September 28,
1996 4,117,543
Recognized gain for year ended
September 27, 1997 (72,091)
-----------
Unrecognized gain on sale of
property at September 27,
1997 - Recognized gain on
sale for the year ended
October 3, 1998 (Note A(1)) $(4,045,452)
===========
(Continued) 7.
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
NOTES TO FINANCIAL STATEMENTS
- Sheet 3 -
(Note C) - Income Taxes:
(1) Income taxes on the statement of operations and retained earnings
comprises:
Year Ended Year Ended
October 3, September 27,
1998 1997
---------- ------------
Currently payable:
Federal $ 874,000 $ 63,000
State and local 599,000 37,000
Deferred:
Federal 396,000 5,000
State and local 171,000 4,000
---------- --------
Tota1 $2,040,000 $109,000
========== ========
Federal income taxes are computed at statutory rates, including the
effect of surtax exemptions.
(2) The federal income tax returns of the Company have not been examined
by the Treasury Department in recent years.
(Note D) - Leases:
The Company rents office space for $10,080 a year under a lease which
expires January 31, 1999.
Rent expense approximated $11,000 for the years ended in 1998 and 1997.
(Note E) - Dividends:
On September 16, 1997, the Company declared a $.20 per share dividend
payable on January 9, 1998 to shareholders of record on December 4, 1997.
(continued) 8.
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
NOTES TO FINANCIAL STATEMENTS
- Sheet 4 -
(Note F) - Concentration of Credit Risk:
The Company maintains its cash at two large New York banks. The amounts
held at these banks may, at times, exceed federally insured limits. Such excess
amount at September 27, 1997 was $77,000.
(Note G) - Fair Value of Financial
Investment:
Mortgage Receivable - Fair value of the mortgage receivable is equal to
its carrying value since such amount was collected subsequent to October 3,
1998.
9.
<PAGE>
ITEM 8-DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
PART III
ITEM 9 DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT AND ITEM 11 SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
Company Position; and Has Shares Beneficially
Principal Occupation Served as Owned as of
During Past 5 Years a Direc- Oct. 3, 1998
Name (age) [1] tor Since (% of Class)
- ---------- --- --------- ------------
Linda Ashley Director, President, 1984 64,547 (10.61%)
(54)[3] Attorney
Howard S. Kaplan Director 1972 -0-
(71)[2]
Gordon Katz Director, Secretary 1995 -0-
(32)[5] Attorney
All Directors [4]
and Officers as a Group (Three in Group). 64,547 (10.61%)
- ----------
[1] The information indicated above concerning occupations, age and beneficial
ownership of stock has been furnished to the Company by the respective
nominees. None of the nominees is a director of any other publicly-held
company.
[2] Howard Kaplan practiced law for over 35 years.
[3] The number of shares beneficially owned by Linda Ashley, an attorney since
1982, includes 64,047 shares held of record by Trust f/b/o Linda Ashley
("Trust D"). Linda Ashley is a Co-trustee of Trust A listed in the
following chart of Beneficial Owners and a Co-Trustee in Trust D. In such
capacity, she shares voting and dispositive power over 304,047 trust
shares but disclaims beneficial ownership of the 240,000 shares held in
Trust A.
[4] Each executive officer is elected or appointed by the Board of Directors
to hold office until a successor is elected and qualified.
[5] Gordon Katz, Linda Ashley's son, has been an attorney since 1992.
<PAGE>
ITEM 10-EXECUTIVE COMPENSATION
Linda Ashley, President of the Company, received $88,239 in compensation,
including bonuses, for the fiscal year ended October 3, 1998.
ITEM 11-SECURITY OWNERSHIP OF CERTAIN OTHER BENEFICIAL OWNERS
(1) Title of (2) Name and Address (3) Amount and (4) % of Class
Class of Beneficial Owner Nature of Benefi-
cial Ownership
- --------------------------------------------------------------------------------
Common Sophie Ashley 240,000 (A) 39.45
c/o Linda Ashley, Esq.
233 Broadway, #1085
New York, N.Y. 10279
Common Harriet Ehren 64,548 (B) 10.61
c/o Lance Ehren
10301 E. Bay Harbor Dr. #5
Bay Harbor Isl., Fla. 33154
Common Beverly Evangelos 64,648 (C) 10.61
c/o Dr. Daniela Assail
Olympic College
Math & Sci. Bldg. Room 110
1600 Chester Ave.
Bremerton, Wa. 98337
Common James Tarsy 54,750 9.00
151 Harbor Rd.
Harbor Acres
Sands Point, N.Y. 11050
- ----------
(A) Shares held of record by Trust u/w/o Harry Ashley f/b/o Sophie Ashley
("Trust A").
(B) Includes 64,048 shares held of record by Trust f/b/o Harriet Ashley
("Trust B").
(C) Includes 64,048 shares held of record by Trust f/b/o Beverly Evangelos
("Trust C").
<PAGE>
ITEM 12 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
NONE.
PART IV
ITEM 13 EXHIBITS AND REPORTS ON FORM 1OKSB
(a)(1) and (2) Financial statements are filed as part of this Report. See
Index - Financial Statements - Item 7 herein.
(3) List of Exhibits
3.1 Certificate of Incorporation of EICO Electronic Instrument Co.,
Inc., as currently in effect, incorporated by reference, as Exhibit 3.1 to
Registrant's form 10K for the fiscal year ended October 3, 1981.
3.2 By-laws of EICO Electronic Instrument Co., Inc., as currently in
effect, incorporated by reference, as Exhibit 3.2 to Registrant's Form 10-K for
the fiscal year ended October 3, 1981.
3.3 Amendment to Certificate of Incorporation of EICO Electronic
Instrument Co., Inc., incorporated by reference, as number 11.1 to Registrant's
Form 10-K for the fiscal year ended September 30, 1989.
12.1 Lease for office for fiscal year ended October 3, 1998,
incorporated by reference to Registrant's form 1OKSB for the fiscal year ended
September 27, 1997.
(b) No report on Form 8-K was filed by Registrant during the last
quarter of the period covered by this Report.
<PAGE>
EXHIBIT INDEX
EXHIBIT DESCRIPTION
NUMBER
3.1 Certificate of Incorporation of EICO Electronic Instrument
Co., Inc. as currently in effect.*
3.2 By Laws of EICO Electronic Instrument Co., Inc. as currently
in effect.*
3.3 Amendment to Certificate of Incorporation previously numbered
11.1**
12.1 Lease for Office at 233 Broadway, #1085, N.Y., N.Y.***
* Incorporated by reference to Registrant's form 10-K for the year ended
October 3, 1981.
** Incorporated by reference and annexed to Registrant's form 10-K for the
year ended September 30, 1989.
*** Incorporated by reference and annexed to Registrant's form 1OKSB for the
fiscal year ended September 27, 1997.
<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.
EICO ELECTRONIC INSTRUMENT CO., INC.
Dec. 28, 1998 /s/ Linda Ashley
------------------------------------
Linda Ashley, President
Dec. 28, 1998 /s/ Gordon Katz
------------------------------------
Gordon Katz, Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-03-1998
<PERIOD-START> SEP-28-1997
<PERIOD-END> OCT-03-1998
<CASH> 139,234
<SECURITIES> 1,038,500
<RECEIVABLES> 4,129,641
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 5,326,639
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 5,326,639
<CURRENT-LIABILITIES> 1,519,346
<BONDS> 0
0
0
<COMMON> 608,293
<OTHER-SE> 3,199,000
<TOTAL-LIABILITY-AND-EQUITY> 5,326,639
<SALES> 0
<TOTAL-REVENUES> 4,622,730
<CGS> 0
<TOTAL-COSTS> 253,257
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 4,369,473
<INCOME-TAX> 2,040,000
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,329,473
<EPS-PRIMARY> 3.88
<EPS-DILUTED> 0
</TABLE>
