________________________________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 10-QSB
_________________
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934; For the Quarterly Period Ended: September 30, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
Commission File Number: 0-24682
WORLDWIDE PETROMOLY, INC.
(Exact name of registrant as specified in its charter)
Colorado 84-1125214
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
1300 Post Oak Boulevard, Suite 1985
Houston, Texas 77056
(Address of principal executive offices, including zip code)
(713) 892-5823
(Registrant's telephone number, including area code)
_________________
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
Check whether the registrant filed all documents and reports required to
be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by court. Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
At November 12, 1997, 16,747,500 shares of common stock, no par value,
were outstanding.
Transitional Small Business Disclosure Format (check one); Yes [ ] No [x]
________________________________________________________________________________
<PAGE>
WORLDWIDE PETROMOLY, INC.
CONTENTS
--------
Page(s)
-------
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of September 30, 1997
(unaudited) and June 30, 1997 3
Consolidated Statements of Operations for the three months
ended September 30, 1997 and 1996 ( both unaudited) 4
Consolidated Statements of Cash Flows for the three months
ended September 30, 1997 and 1996 ( both unaudited) 5
Notes to Consolidated Financial Statements 6 - 8
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 9 - 12
PART II - OTHER INFORMATION
- ---------------------------
Item 6. Exhibits and Reports on Form 8-K 13
(a) Exhibits
(b) Reports on Form 8-K
SIGNATURES 13
- ----------
2
<PAGE>
WORLDWIDE PETROMOLY, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, June 30,
1997 1997
---- ----
(Unaudited)
<S> <C> <C>
ASSETS
------
Current Assets:
Cash and Cash Equivalents $ 450,226 $ 864,555
Certificates of Deposit 529,998 527,971
Certificates of Deposit-Restricted (Note 4) 421,450 418,857
Accounts Receivable-Trade (Related Parties
$42,842 and $29,536) 114,163 91,297
Notes Receivable-Related Parties-Current Portion 264,387 277,347
Inventories 96,744 128,651
Prepaid Expense and Other 13,331 18,139
----------- -----------
Total Current Assets 1,893,299 2,326,817
----------- -----------
Property and Equipment, Net (Note 3) 115,034 108,547
Notes Receivable-Related Parties-Noncurrent Portion 183,847 203,847
----------- -----------
Total Assets $ 2,189,180 $ 2,639,211
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Accounts Payable and Accrued Expenses $ 86,917 $ 150,109
Notes Payable (Note 4) 265,000 265,000
----------- -----------
Total Current Liabilities 351,917 415,109
Advances From Stockholder 312,573 312,573
----------- -----------
Total Liabilities 664,490 727,682
----------- -----------
Stockholders' Equity:
Preferred stock, no par value, 10,000,000 shares
authorized, none issued -- --
Common stock, no par value, 800,000 shares
authorized; 16,747,500 issued and outstanding;
2,835,000 reserved for stock options 6,914,773 6,914,773
Accumulated Deficit (5,390,083) (5,003,244)
Total Stockholders' Equity 1,524,690 1,911,529
----------- -----------
Total Liabilities and Stockholders' Equity $ 2,189,180 $ 2,639,211
=========== ===========
See accompanying notes to consolidated financial statements
</TABLE>
3
<PAGE>
WORLDWIDE PETROMOLY, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended
September 30,
1997 1996
------------ ------------
(Unaudited) (Unaudited)
Net Sales $ 91,273 $ 21,314
Cost of Sales 65,163 17,264
------------ ------------
Gross Profit 26,110 4,050
Selling, Administrative and General Expenses 416,058 250,229
------------ ------------
Loss From Operations (389,948) (246,179)
Other Income, Net 3,109 55,426
------------ ------------
Net Loss $ (386,839) $ (190,753)
============ ============
Net Loss per Common Share $ (.02) $ (.01)
============ ============
Weighted Average Common Shares Outstanding 16,747,500 16,007,500
============ ============
See accompanying notes to consolidated financial statements
4
<PAGE>
WORLDWIDE PETROMOLY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
<TABLE>
<CAPTION>
Three Months Ended
September 30,
1997 1996
----------- -----------
(Unaudited) (Unaudited)
<S> <C> <C>
Cash Flows from Operating Activities:
Net Loss $ (386,839) $ (190,753)
Adjustments to reconcile
Net Loss to Net Cash used in Operating Activities
Depreciation 5,000 1,872
Changes in Assets and Liabilities
Accounts Receivable (22,866) 16,773
Inventories 31,907 4,799
Prepaid Expense and Other Assets (4,808) (735)
Accounts Payable and Accrued Expenses (63,192) (237,011)
----------- -----------
Net Cash used in Operating Activities (431,182) (405,055)
----------- -----------
Cash Flows from Investing Activities:
Certificates of Deposit (4,620) (905,234)
Capital Expenditures (11,487) (10,679)
Related Party Loan-Repayments 32,960 --
Product Certification and Web Site Costs -- (59,750)
----------- -----------
Net Cash (used) Provided by Investing Activities 16,853 (975,663)
Cash Flows from Financing Activities:
Proceeds from Private Offering, Net of Expense -- 3,900,115
Repayments of Notes Payable -- (50,000)
----------- -----------
Net Cash Provided by Financing Activities -- 3,850,115
Net Increase (Decrease) in Cash and Cash Equivalents (414,329) 2,469,397
Cash and Cash Equivalents, Beginning of Period 864,555 920
----------- -----------
Cash and Cash Equivalents, End of Period $ 450,226 $ 2,470,317
=========== ===========
</TABLE>
See accompanying notes to consolidated financial statements
5
<PAGE>
WORLDWIDE PETROMOLY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - ORGANIZATION AND BUSINESS
Worldwide PetroMoly, Inc. (the "Company"), a publicly-held Colorado
corporation, is engaged in the marketing and distribution of a line of engine
lubrication products under the tradename "PetroMoly". The Company was formed as
a result of a reverse acquisition on July 22, 1996, between Ogden, McDonald &
Company ("Ogden McDonald" the former name of the Registrant with the Securities
and Exchange Commission) and Worldwide PetroMoly Corporation ("WPC"). Ogden
McDonald was incorporated in the state of Colorado on October 13,1989, and
became a public "shell" company for the purpose of engaging in selected mergers
and acquisitions. WPC was incorporated in the state of Texas on April 1, 1993,
and prior to the reverse acquisition, was engaged in the same line of business
as the Company. In connection with the reverse acquisition, Ogden McDonald
acquired all of the outstanding common stock of WPC, and subsequently changed
its name to Worldwide PetroMoly, Inc. WPC is now a wholly owned subsidiary of
the Company.
The Company contracts with independent parties for the blending of its lubricant
products.
NOTE 2 - BASIS OF PRESENTATION
The accompanying unaudited financial statements of the Company and its
wholly-owned subsidiary WPC have been prepared in accordance with the
instructions and requirements of Form 10-QSB and, therefore, do not include all
information and footnotes necessary for a fair presentation of financial
position, results of operations, and cash flows in conformity with generally
accepted accounting principles. In the opinion of management, such financial
statements reflect all adjustments (consisting only of normal recurring
accruals) necessary for a fair presentation of the results of operations and
financial position for the interim periods presented. Operating results for the
interim periods are not necessarily indicative of the results that may be
expected for the full year. These financial statements should be read in
conjunction with the Company's annual report on Form 10-KSB.
NOTE 3 - PROPERTY AND EQUIPMENT
Property and equipment consists of the following as of September 30, 1997
and June 30, 1997:
September 30 June 30
Office furnishings and equipment $ 105,001 $ 103,858
Machinery and equipment 17,320 6,977
Vehicles 12,062 12,062
--------- ---------
134,383 122,897
Less accumulated depreciation (19,350) (14,350)
--------- ---------
Net property and equipment $ 115,033 $ 108,547
========= =========
6
<PAGE>
WORLDWIDE PETROMOLY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 4 - NOTES PAYABLE
At September 30, 1997, the Company had drawn $170,000 under a $250,000
revolving line of credit facility with a bank. Interest is payable monthly and
principal is due on demand, or if no demand, at its scheduled maturity. The
borrowings under the line of credit are collateralized by a certificate of
deposit in the amount of $263,625.
At September 30, 1997, the Company had drawn $95,000 under a $100,000
revolving line of credit facility with another bank. Principal and interest are
due on demand, or if no demand, in August 1998, at an interest rate of 7.77%
payable quarterly). This borrowing is secured by a certificate of deposit in the
amount of $157,825.
NOTE 5 - INCOME TAXES
Deferred taxes are determined based on temporary differences between the
financial statement and income tax basis of assets and liabilities as measured
by the enacted tax rates which will be in effect when these differences reverse.
Deferred tax assets are comprised of the following at September 30, 1997:
Net operating loss carryforwards $ 1,112,500
Stock options granted to non-employees 540,500
Amortization expense 25,500
Bad debt expense 7,000
-----------
Gross deferred tax asset 1,685,500
-----------
Valuation allowance (1,685,500)
-----------
Net deferred tax asset $ -
===========
The Company has recorded a full valuation allowance against all deferred
tax assets because it could not determine whether it was more likely than not
that the deferred tax asset would be realized against future income.
At September 30, 1997, the Company had net operating loss carryforwards
totaling approximately $3,645,000 available to reduce future taxable income
through the year 2012 (see chart on following page).
7
<PAGE>
WORLDWIDE PETROMOLY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
The net operating loss carryforwards expire as follows:
Years ended December 31, Amount
---------------------------------- -----------
2008 $ 72,000
2009 266,000
2010 206,000
Eighteen months ended June 30, 2012 2,728,000
Year ended June 30 2013 373,000
-----------
Total $ 3,645,000
===========
Note 6 - LOSS PER SHARE
Loss per common share was computed by dividing the net loss for the period
by the weighted average number of common shares outstanding and common stock
equivalents (if dilutine) during each period. Common stock equivalents include
the effect of common stock shares contingently issuable from the exercise of
stock options only when the effect would be dilutine.
8
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OPERATIONS.
RESULTS OF OPERATIONS -WORLDWIDE PETROMOLY INC. ("THE COMPANY")
The following discussion should be read in conjunction with the Company's
consolidated financial statements and related notes. See Consolidated Financial
Statements. Certain statements contained herein are not based on historical
facts, but are forward looking statements that are based upon assumptions about
future conditions that could prove not to be accurate. Actual events,
transaction and results may materially differ from the anticipated events,
transactions or results described in such statements. The Company's ability to
consummate such transactions and achieve such events or results is subject to
certain risks and uncertainties. Such risks and uncertainties include, but are
not limited to, the existence of demand for and acceptance of the Company's
products and services, regulatory approvals and developments, economic
conditions, the impact of competition and pricing, results of financing efforts
and other factors affecting the Company's business that are beyond the Company's
control. The Company undertakes no obligation and does not intend to update,
revise or otherwise publicly release the result of any revisions to these
forward-looking statements that may be made to reflect events or circumstances.
RESULTS OF OPERATIONS -GENERAL
During the fiscal quarter ended September 30, 1997 (also referred to as the
first fiscal quarter or the third calendar quarter), the Company has invested in
independent laboratory product testing, additional research and development for
new products, updating the sales brochures, purchasing office equipment, and web
site modifications. The Company also did additional extensive field testing in
an effort to expand the Company's industrial customer base, while ascertaining
specific avenues and alliances for launching a retail and industrial campaign
for its new and present products in the next fiscal quarter.
In July the Company was the recipient of a technology innovation award from
Aviation Week and Space Technology magazine attesting to the Company's cutting
edge lubrication technology, and the highly notable savings it has created for
the Company's customers. In August 1997, the Company entered into a
manufacturing agreement to produce a firearms lubricant for High Standard, a
firearms manufacturer with 34% of the .22 caliber target pistol US market and a
world wide sales force whose customers includes military customers such as the
US Army and the Navy. Also in August 1997 the Company formed a marketing
alliance with Aviation Laboratories, a provider of laboratory services for the
international corporate and airline industry, with a customer base of over
16,000 clients and growing. In September 1997, the Company performed an
independent laboratory EPA-recognized test at the request of the US Postal
Service showing a 4.41% improvement in city fuel economy after using PetroMoly.
The Company is presently proceeding to expand to regional use by the US Postal
Service, and plans to continue its expansion nationwide.
The Company completed the development of a new product presently called Moly
X-tra, which is an oil additive for passenger cars and light trucks. Customers
who purchase Moly X-tra are able to add the 16-ounce bottle to any brand of
motor oil. Field-testing has revealed that the benefits that customers receive
9
<PAGE>
from Moly X-tra are very similar to those received by using the Company's fully
formulated product called PetroMoly. Those benefits include improved fuel
economy, reduced emissions and longer engine life. The Company expects to launch
a product awareness campaign for Moly X-tra during the fiscal quarter beginning
- -January 1998, through direct marketing, on television using an infomercial.
During this quarter, the Company has performed excessive due diligence on
the direct marketing infomercial format and has determined that similar products
in this category have achieved tremendous success. Bringing a new technology to
a proven category, with what the Company believes to be a superior product with
an environmental impact, is expected to increase the Company's revenues.
Additionally the infomercial format will also give the Company an opportunity to
educate the general public about its patent-approved lubrication technology. The
same technology for suspending and stabilizing molybdenum is used in both Moly
X-tra and PetroMoly. As PetroMoly is now entering the retail arena, this format
can help build a demand for prospective customers and increase sales for both
products.
QUARTER ENDED SEPTEMBER 30, 1997 COMPARED TO QUARTER ENDED SEPTEMBER 30, 1996
Total net sales for the quarter ended September 30, 1997, was $91,273 as
compared to $21,314 for the quarter ended September 30, 1995, a 328% increase.
This increase by comparison is large, and management expects the following
quarters to follow a greater trend that reflects the maturing marketing efforts,
set in place at the beginning of this fiscal year. The sales focus has been
securing commitments and endorsements from several large national and
multinational corporations that are considered leaders in their various
industries. As the analysis of the product utilization by these various
customers has been extremely positive and resolute, the sales volume and
relative margins remain low due to the promotional prices and practices allowed
by management. The Company expects sales volume to increase significantly during
in the first calendar quarter of 1998 as the promotional activities and
advertising campaigns come to fruition.
As the two quarters vastly differ in net sales, the disparity in cost of sales
is also notable. Cost of sales as a percentage of net sales decreased from 81%
for the quarter ended September 30, 1996, to 71% for the year ended September
30, 1997. This percentage change was results from improved agreements with
suppliers, freight carriers and toll blenders, along with streamlining
procedures in manufacturing. The Company is continuing its testing of various
reformulations of its products and interviewing various vendors to see if the
products can be made more cost effectively, thus reducing the cost of sales in
the future. Additionally, the projected increase in sales volume will also
reduce cost of sales due to economies of scale.
Selling, general and administrative expenses increased from $250,299 for the
quarter ended September 30, 1996, to $416,058 for the quarter ended September
30, 1997, a 60% increase. However, as a percentage of net sales, selling,
general and administrative expenses decreased from 1,174% in the third calendar
quarter of 1996 to 455% in the third calendar quarter of 1997. The primary
reason for the increase in expenses for the compared quarters was the widespread
expansion and promotional efforts that took place in last three quarters
increasing these operational expenses, which include additional personnel and
the opening of a satellite office and warehouse in South Florida.
10
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
On September 30, 1997, the Company had a working capital of $1,541,382, compared
to $1,911,708 at June 30,1997. The change in working capital was primarily due
to normal general and administrative expenses, as net cash used in Operating
activities for yearly compared quarters was very close to one another being
$431,182 for ended September 30,1997and $405,055 for ended September 30,1996, a
6% increase..
At September 30, 1997, the Company had drawn $170,000 under a $250,000
revolving line of credit facility with a bank. The borrowings under the line of
credit are collateralized by a certificate of deposit in the amount of $263,625.
At September 30, 1997, the Company had drawn $95,000 under a $100,000 revolving
line of credit facility with another bank. The borrowings under this line of
credit are collateralized by a certificate of deposit in the amount of $155,241.
Both lines of credit are described in note 4 to the consolidated financial
statements.
At September 30, 1997, the Company had net operating loss carryforwards
totaling approximately $3,645,000 available to reduce future taxable income
through the year 2012 as described in note 5 to the consolidated financial
statements.
As of September 30, 1997, the Company had no material commitments for
capital expenditures.
OUTLOOK
In the year ended June 30 1997,the Company's strategic focus was on
consummating relationships with a group of leaders in the industrial markets,
which are known as opinion leaders of new technologies. Management foresees the
"testing periods" that the Company has invested with these groups coming to a
natural end during fiscal 1998, followed by significant revenue producing
contracts, and testimonials that will attract other companies in the similar
industries for a greater market share. Any one of the substantial customers that
the Company is presently working with is capable of increasing the volume
production to a much greater economies of scale. These savings will decrease
cost of sales, and possibly decrease the cost to the customers as well.
Management is extremely eager to begin marketing the newly developed oil
additive that uses the same proprietary technology to suspend molybdenum in
motor oil for cars and light trucks. An advertising campaign is planned for this
particular product beginning with an infomercial to create consumer awareness
and educate the general public about the Company's new technology. This exposure
will possibly facilitate a demand for the other PetroMoly products as well.
During this campaign, distribution will be maintained through fulfillment
houses. Later a full-scale retail campaign is planned as the product is sold in
the auto after-market stores and retail chains. Reports to management show this
oil additive product, being a new technology in a proven direct response
category, is projected to carry significant demand.
With the progressing sales relationships maturing and the new product
lines being marketed, the Company expects operating margins and revenues to
improve during fiscal 1998.
11
<PAGE>
NEW ACCOUNTING PRONOUNCEMNETS
In March 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 128, Earnings per Share ("SFAS 128"). SFAS
128 provides a different method of calculating earnings per share than is
currently used in APB Opinion 15. SFAS 128 provides for the calculation of basic
and diluted earnings per share. Basic earnings per share includes no dilution
and is computed by dividing income available to common stockholders by the
weighted average number of common shares outstanding for the period. Dilutive
earnings per share reflects the potential dilution of securities that could
share in the earnings of an entity, similar to existing fully diluted earnings
per share.
The Company is required to adopt this standard in the fourth quarter of
1997. Using the principles set forth in SFAS 128, basic and diluted earnings per
share would not be materially different from that presented.
Statement of Financial Accounting Standards No. 129, Disclosure of
Information about Capital Structure ("SFAS 129") effective for periods ending
after December 15, 1997, establishes standards for disclosing information about
an entity's capital structure. SFAS 129 requires disclosure of the pertinent
rights and of various securities outstanding (stock, options, warrants,
preferred stock, debt and participation rights) including dividend and
liquidation preferences, participant rights, call prices and dates, conversion
or exercise prices and redemption requirements. Adoption of SFAS 129 will have
no effect on the Company as it currently discloses the information specified
In June 1997, the Financial Accounting Standards Board issued two new
disclosure standards. Results of operations financial position will be
unaffected by implementation of these new standards.
Statement of Financial Accounting Standards (SFAS) 130, "Reporting
Comprehensive Income" establishes standards for reporting and display of
comprehensive income, its components and accumulated balances. Comprehensive
income is defined to include all changes in equity except those resulting from
investments by owners and distributions to owners. Among other disclosures, SFAS
130 requires that all items that are required to be recognized under current
accounting standards as components of comprehensive income be reported in a
financial statement that is displayed with the same prominence as other
financial statements.
SFAS 131, "Disclosure about Segments of a Business Enterprise",
establishes standards for the way that public enterprises report information
about operating segments in annual financial statements and requires reporting
of selected information about operating segments in interim financial statements
issued to the public. It also establishes standards for disclosures regarding
products and services, geographic areas and major customers. SFAS 131 defines
operating segments as components of an enterprise about which separate financial
information is available that is evaluated regularly by the chief operating
decision maker in deciding how to allocate resources and in assessing
performance.
Both of these new standards are effective for financial statements for
periods beginning after December 15, 1997 and require comparative information
for earlier years to be restated. Due to the recent issuance of these standards,
management has been unable to fully evaluate the impact, if any, they may have
on future financial statement disclosures.
12
<PAGE>
PART II
OTHER INFORMATION
Item 6.
Exhibits and Reports on Form 8-K
(a) Exhibits -- Financial Data Schedule
(b) Reports on Form 8-K -- None
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 hereunto duly authorized.
WORLDWIDE PETROMOLY, INC.
Date: November 13, 1997 By: /s/ Gilbert Gertner
--------------------------------
Gilbert Gertner
By: /s/ Lance Rosemarin
--------------------------------
Lance Rosemarin, Chief Financial
Officer and Chief Financial and
Accounting Officer
13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF WORLDWIDE PETROMOLY, INC. FOR THE THREE MONTHS ENDED
SEPTEMBER 30, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 450,226
<SECURITIES> 951,448
<RECEIVABLES> 114,163
<ALLOWANCES> 0
<INVENTORY> 96,744
<CURRENT-ASSETS> 1,893,299
<PP&E> 134,383
<DEPRECIATION> 19,350
<TOTAL-ASSETS> 2,189,180
<CURRENT-LIABILITIES> 351,917
<BONDS> 0
0
0
<COMMON> 6,914,773
<OTHER-SE> (5,390,083)
<TOTAL-LIABILITY-AND-EQUITY> 2,189,180
<SALES> 91,273
<TOTAL-REVENUES> 91,273
<CGS> 65,163
<TOTAL-COSTS> 65,163
<OTHER-EXPENSES> 416,058
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (386,839)
<INCOME-TAX> 0
<INCOME-CONTINUING> (386,839)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (386,839)
<EPS-PRIMARY> (.02)
<EPS-DILUTED> (.02)
</TABLE>
