U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act
of 1934
For the quarterly period ended March 31, 1998
[ ] Transition report under Section 13 or 15(d) of the Exchange Act
For the transition period from ___________ to _____________
Commission File Number: 0-24682
WORLDWIDE PETROMOLY, INC.
-------------------------
(Exact name of small business issuer as specified in its charter)
Colorado 84-7125214
- --------------------------------------------------------------------------------
(State of other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
1300 Post Oak Boulevard, Suite 1985, Houston, Texas 77056
----------------------------------------------------------
(Address of principal executive offices including zip code)
-----------------------------------------------------------
(713) 892-5823
--------------
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act 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___
As of May 15, 1998, 17,247,500 shares of common stock were outstanding.
Transitional Small Business Disclosure Format (check one): Yes No X
--- ---
<PAGE>
WORLDWIDE PETROMOLY, INC.
FORM 10-QSB
INDEX
PART I: FINANCIAL INFORMATION Page No.
Item 1. Financial Information:
Unaudited Consolidated Balance Sheets 3
Unaudited Consolidated Statements of Operations 5
Unaudited Consolidated Statements of Cash Flows 6
Notes to Unaudited Consolidated Financial
Statements 7
Item 2. Management's Discussion and Analysis or
Plan of Operations 9
PART II: OTHER INFORMATION
Item 1. Legal Proceedings 11
Item 2. Changes in Securities 11
Item 3. Defaults Upon Senior Securities 11
Item 4. Submission of Matters to a Vote of Security Holders 11
Item 5. Other Information 11
Item 6. Exhibits 11
Signatures 12
<PAGE>
<TABLE>
<CAPTION>
WORLDWIDE PETROMOLY, INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, JUNE 30,
1998 1997
------------ ------------
(UNAUDITED)
ASSETS
- ---------------------------------------------------------------
<S> <C> <C>
Current Assets:
Cash and Cash Equivalents $ 187,281 $ 864,555
Certificates of Deposit 275,325 527,971
Certificates of Deposit-Restricted (Note 4) --- 418,857
Accounts Receivable- (Related Parties
$52,943 and $29,536) 105,614 91,297
Notes Receivable-Related Parties-Current 264,387 277,347
Inventories 76,697 128,651
Prepaid Expense and Other 20,469 18,139
------------ ------------
Total Current Assets 929,773 2,326,817
Property and Equipment, Net of accumulated
Depreciation (Note 3) 115,485 108,547
Notes Receivable-Related Parties-Noncurrent Portion 55,081 203,847
------------ ------------
Total Assets $ 1,100,339 $ 2,639,211
============ ============
3
<PAGE>
LIABILITIES AND STOCKHOLDERS' EQUITY
- ---------------------------------------------------------------
Current Liabilities:
Accounts Payable and Accrued Expenses $ 175,336 $ 150,109
Notes Payable (Note 4) --- 265,000
------------ ------------
Total Current Liabilities 175,336 415,109
Advances From Stockholder 277,573 312,573
------------ ------------
Total Liabilities 452,909 727,682
------------ ------------
Stockholders' Equity:
Preferred stock, no par value, 10,000,000 shares
authorized, none issued --- ---
Common stock, no par value, 800,000,000 shares
authorized; 17,247,500 and 16,747,500 issued
and outstanding;3,335,000 reserved for stock options 7,419,773 6,914,773
Accumulated Deficit (6,767,343) (5,003,244)
------------ ------------
Total Stockholders' Equity 647,430 1,911,529
------------ ------------
Total Liabilities and Stockholders' Equity $ 1,100,339 $ 2,639,211
============ ============
<FN>
See accompanying notes to consolidated financial statements
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
WORLDWIDE PETROMOLY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net Sales $ 52,904 $ 78,255 $ 209,644 $ 125,077
Cost of Sales 38,560 54,251 155,837 87,080
------------ ------------ ------------ ------------
Gross Profit 14,344 24,004 53,807 37,997
Selling, Administrative
and General Expenses 900,420 317,480 1,851,018 990,705
------------ ------------ ------------ ------------
(Loss) From Operations (886,076) (293,476) (1,797,211) (952,708)
Other Income (loss), Net (5,809) 41,497 33,112 134,529
------------ ------------ ------------ ------------
Net (Loss) $ (891,885) $ (251,979) $(1,764,099) $ (818,179)
============ ============ ============ ============
Net (Loss) per Share $ (.05) $ (.02) $ (.10) $ (.05)
============ ============ ============ ============
Weighted Average Number of
Shares Outstanding 17,247,500 16,047,500 16,914,167 16,020,834
============ ============ ============ ============
<FN>
See accompanying notes to consolidated financial statements
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
WORLDWIDE PETROMOLY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
NINE MONTHS ENDED
MARCH 31,
1998 1997
------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C>
Cash Flows from Operating Activities:
Net Loss $(1,764,099) $ (818,179)
Adjustments to reconcile
Net Loss to Net Cash used
Depreciation 18,000 13,945
Common Stocks issued for services 500,000 ---
Changes in Assets and Liabilities
Accounts Receivable (14,317) (43,640)
Inventories 51,954 (68,760)
Prepaid Expense and Other Assets (2,330) (20,135)
Accounts Payable and Accrued Expenses 25,227 (206,664)
------------ ------------
Net Cash used in Operating Activities (1,185,565) (1,143,433)
------------ ------------
Cash Flows from Investing Activities:
Certificates of Deposit 671,503 ---
Capital Expenditures (24,938) (72,885)
Related Party Loans 161,726 (486,666)
Product Certification and Web Site Costs --- (78,953)
------------ ------------
Net Cash (used) Provided by Investing Activities 808,291 (638,504)
------------ ------------
Cash Flows from Financing Activities:
Proceeds from Private Offering, Net of Expense --- 3,901,616
Bank Borrowings --- 570,000
Repayment of bank loans (265,000) ---
Repayment of shareholder loans (35,000) ---
Exercise of stock options --- 80,000
------------ ------------
Net Cash Provided (used) by Investing Activities (300,000) 4,551,616
------------ ------------
Net Increase (Decrease) in Cash and Cash Equivalents (677,274) 2,769,679
Cash and Cash Equivalents, Beginning of Period 864,555 920
------------ ------------
Cash and Cash Equivalents, End of Period $ 187,281 $ 2,770,599
============ ============
<FN>
See accompanying notes to consolidated financial statements
</TABLE>
6
<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 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 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 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 March 31, 1998 and June
30, 1997:
<TABLE>
<CAPTION>
MARCH 31 JUNE 30
---------- ---------
<S> <C> <C>
Office furnishings and equipment $ 111,211 $103,858
Machinery and equipment 24,562 6,977
Vehicles 12,062 12,062
---------- ---------
147,835 122,897
Less accumulated depreciation (37,350) (14,350)
---------- ---------
Net property and equipment $ 115,485 $108,547
========== =========
</TABLE>
7
<PAGE>
WORLDWIDE PETROMOLY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 4 - NOTES PAYABLE
At June 30, 1997, the Company had drawn $ 225,000 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 were collateralized by a certificate of
deposit. The loan was paid off in January 1998.
At June 30, 1997, the Company had drawn $ 40,000 under a $ 100,000
revolving line of credit facility with another bank. Principal and interest
were due on demand, or if no demand, in August 1998, with interest at 7.77%
(payable quarterly). This borrowing was secured by a certificate of deposit.
The loan was paid off in January 1998.
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 March 31, 1998:
<TABLE>
<CAPTION>
<S> <C>
Net Operating loss carryforwards $ 1,818,000
Stock options granted to non-employees 540,500
Amortization expense 25,500
Bad debt expense 7,000
------------
Gross deferred tax asset 2,366,000
Valuation allowance (2,366,000)
------------
Net deferred tax asset $ ---
============
</TABLE>
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 March 31, 1998, the Company had net operating loss carryforwards
totaling approximately $4,736,000 available to reduce future taxable income
through the year 2013 (see table).
The net operating loss carryforwards expire as follows:
<TABLE>
<CAPTION>
Amount
----------
<S> <C>
Year ended December 31, 2008 $ 72,000
Year ended December 31, 2009 266,000
Year ended December 31, 2010 206,000
Eighteen months ended June 30, 2012 2,728,000
Year ended June 30, 2013 1,464,000
----------
Total $4,736,000
==========
</TABLE>
Note 6 - LOSS PER SHARE
Loss per common share was computed by dividing the net loss for each period
by the weighted average number of common shares outstanding and common stock
equivalents (if dilutive) 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 dilutive.
8
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF 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 March 31, 1998 (also referred to as the third
fiscal quarter or the first calendar), the Company has continued to invested in
independent laboratory product testing, additional research and development for
new products, purchasing service equipment including additional storage tanks
and oil pumps, and performed additional web site modifications. The Company
also continued additional extensive field testing in an effort to expand the
Company's industrial customer base, while analyzing specific results of a retail
and industrial advertising campaigns for its new and present products, designed
for each particular target market.
The Company also began intensive lab testing with the Environmental Protection
Agency to solidify the validity of the proprietary technology trade marked as
"molytech", as a device and/or solution to effect a decrease in harmful
emissions for all combustible engines. When these tests are complete and they
show repeatable results, then PetroMoly with molytech will be published in the
Federal Register as a prevailing device to decrease emissions.
In January, the Company demonstrated an average increase of 10% in fuel economy
buses engines for Browning Transportation, an independent mass transportation
company based in Jacksonville, Florida, to service their community bus fleet
with over 60 buses in total.
In March, the Company finalized its agreement with A&N Marketing Inc., which
previously was thought to be Infomax, but the agreement was consummated with A&N
Marketing, a highly successful infomercial and marketing contractor based in New
York, to feature its new product called Moly X-tra (name change to MolyGlide),
also using molytech, the patent approved process that used in PetroMoly to
safely suspend molybdenum. MolyGlide is an oil additive for passenger cars and
light trucks. Customers who purchase MolyGlide are able to add the 16-ounce
bottle to any brand of motor oil. Field-testing has revealed that the benefits
that customers receive from MolyGlide with molytech are very similar to those
received by using the Company's fully formulated product called PetroMoly.
Those benefits include increased horsepower, improved fuel economy, reduced
emissions and longer engine life. The Company expected to launch the product
awareness campaign for MolyGlide during the fiscal quarter beginning January
1998, but because of time delays for the definitive documentation, as well as
production scheduling conflicts, the launch date is now set for June 1998. The
agreement provides that after a successful test run of the infomercial,
Worldwide PetroMoly will receive a minimum order of 500,000 units or $2,250,000
during the first year of airing the infomercial, and similar mandates for the
years following. The infomercial is being produced by Infinnity Direct, an
award winning production company with the top selling infomercial of 1996. The
projected sales scenario for Worldwide PetroMoly's side or the first 18 months
is between $7-21 million, netting between $4-12 million.
9
<PAGE>
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
MolyGlide and PetroMoly. As PetroMoly has recently entered the retail arena,
this format can help build a demand for prospective customers and increase sales
for both products.
Also in this quarter, Norton Cooper joined the Company as a director. Mr.
Cooper is a well-respected businessman with a wealth of experience in the
securities arena as well as the natural metals market. His direction should
prove beneficial to the shareholders and directors.
QUARTER ENDED MARCH 31, 1998 COMPARED TO QUARTER ENDED MARCH 31, 1997
Total net sales for the quarter ended March 31, 1998, was $52,904 as compared to
$78,255 for the quarter ended March 31, 1997, a 32% decrease. This decrease by
comparison is an anomaly, and management expects the following quarters to
follow a much greater trend that reflects the maturing marketing efforts set in
place at the beginning of this fiscal year. For the nine months ended March 31,
1998, total sales are up over 40% as compared to the like nine months ended
1997. The sales focus continued to be on 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 second or third calendar quarter of 1998 as the
promotional activities and advertising campaigns come to fruition.
As the two quarters differ in net sales, the disparity in cost of sales is not
very notable. Cost of sales as a percentage of net sales increased from 69% for
the quarter ended March 30, 1997, to 72% for the year ended March 30, 1998.
This percentage change was results from discounted test pricing with the large
industrial users of PetroMoly. As these tests are expected to end in the third
quarter of calendar 1998, so are the sales margins expected to improve as the
trend has reflected. The company, however, has 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. The projected increase in sales volume will also reduce cost of
sales due to economies of scale.
Selling, general and administrative expenses increased from $317,480 for the
quarter ended March 31, 1997, to $900,420 for the quarter ended March 31, 1998,
a 65% increase. However, this number is mostly paper elevated due to the
accounting procedures that reflect the issuance of 500,000 restricted shares to
Mr. Cooper as a payment for his services. So an actual increase in SG&A as
compared to the three months ended December 1996 is really 20%. The primary
reason for the increase in expenses for the compared quarters was the widespread
expansion and promotional efforts that took place in last four quarters
increasing these operational expenses, which include additional personnel and
the opening of a satellite office and warehouse in South Florida. Also the
Company incurred a lot of additional expenses that are attributable to the
pre-production of the infomercial that include video demonstration as well as
legal expenses.
LIQUIDITY AND CAPITAL RESOURCES
On March, 1998, the Company had a working capital of $754,437 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
$1,185,565 for nine months ended March 31,1998 and $1,143,433 for ended December
31,1996, a 3.6% increase.
At March 31, 1998, the Company had drawn $40,000 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. This line of credit is
described in note 4 to the consolidated financial statements.
At March 31, 1998, the Company had net operating loss carryforwards
totaling approximately $4,736,000 available to reduce future taxable income
through the year 2013 as described in note 5 to the consolidated financial
statements.
As of March 31, 1998, the Company had no material commitments for capital
expenditures.
10
<PAGE>
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.
Management has also began due diligence on the possibility of joint venturing
the development of retail lube centers that would feature PetroMoly lubrication
products and franchising these centers on a national basis. The preliminary
findings are extremely positive and are a likely avenue to gain market share.
The Florida market continues to grow, and the lube centers are consistently
reporting new request for PetroMoly, and continuous brand loyalty.
With the progressing sales relationships maturing and the new product
lines being marketed, the Company expects operating margins and revenues to
significantly improve by the third quarter of fiscal 1998.
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.
PART II
OTHER INFORMATION
Item 6.
Exhibits and Reports on form 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
11
<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 hereunto duly authorized.
WORLDWIDE PETROMOLY, INC.
Date: May 15, 1998 By: /s/ Gilbert Gertner
--------------------------------
Gilbert Gertner
By: /s/ Lance Rosemarin
--------------------------------
Lance Rosemarin, Chief Financial
Officer and Chief Financial and
Accounting Officer
12
<PAGE>
<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
MARCH 31, 1998, 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> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 187,281
<SECURITIES> 275,325
<RECEIVABLES> 370,001
<ALLOWANCES> 0
<INVENTORY> 76,697
<CURRENT-ASSETS> 929,773
<PP&E> 115,485
<DEPRECIATION> 11,000
<TOTAL-ASSETS> 1,100,339
<CURRENT-LIABILITIES> 175,336
<BONDS> 0
0
0
<COMMON> 7,419,773
<OTHER-SE> (6,767343)
<TOTAL-LIABILITY-AND-EQUITY> 1,100,339
<SALES> 52,904
<TOTAL-REVENUES> 47,095
<CGS> 38,560
<TOTAL-COSTS> 38,560
<OTHER-EXPENSES> 900,420
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (891,885)
<INCOME-TAX> 0
<INCOME-CONTINUING> (891,885)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (891,885)
<EPS-PRIMARY> (.05)
<EPS-DILUTED> (.04)
</TABLE>
