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, 1999
[ ] 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 CORPORATE ISSUERS
At November 1, 1999, 20,820,915 shares of common stock, no par value,
were outstanding.
Transitional Small Business Disclosure Format (check one): Yes [ ] No [x]
1
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WORLDWIDE PETROMOLY, INC.
CONTENTS
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Page(s)
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of September 30, 1999
(unaudited) and June 30, 1999. . . . . . . . . . . . . . . . . . 3
Consolidated Statements of Operations for the three months
ended September 30, 1999 and 1998 (both unaudited) . . . . . . . 4
Notes to Consolidated Financial Statements . . . . . . . . . . . . 6 - 8
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations. . . . . . . . . . . . . . . . . . . . 8 - 12
PART II - OTHER INFORMATION
- --------------------------------------------------------------------
Item 2. Changes in Securities. . . . . . . . . . . . . . . . . . . . 13
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . 13
(a) Exhibits
(b) Reports on Form 8-K
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
- --------------------------------------------------------------------
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WORLDWIDE PETROMOLY, INC.
CONSOLIDATED BALANCE SHEETS
September 30, June 30,
1999 1999
-------------- ------------
(Unaudited)
<S> <C> <C>
ASSETS
- -----------------------------------------------------
Current Assets:
Cash and Cash Equivalents . . . . . . . . . . . . . . . $ 465,437 $ 603,336
Accounts Receivable:
Trade . . . . . . . . . . . . . . . . . . . . . . . . 131,401 270,794
Affiliated Companies. . . . . . . . . . . . . . . . . - 20,383
Inventories . . . . . . . . . . . . . . . . . . . . . . 132,938 115,690
Prepaid Expense and Other . . . . . . . . . . . . . . . 995,047 936,340
-------------- ------------
Total Current Assets. . . . . . . . . . . . . . . . . . 1,724,823 1,946,543
-------------- ------------
Property and Equipment, Net (Note 3). . . . . . . . . . 95,497 102,523
-------------- ------------
Total Assets. . . . . . . . . . . . . . . . . . . . . . $ 1,820,320 $ 2,049,066
============== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------------------------
Current Liabilities:
Accounts Payable and Accrued Expenses . . . . . . . . . $ 299,962 $ 496,173
Notes Payable . . . . . . . . . . . . . . . . . . . . . 3,625 3,625
-------------- ------------
Total Current Liabilities . . . . . . . . . . . . . . . 303,587 499,798
Advances From Stockholder . . . . . . . . . . . . . . . 320,436 233,636
-------------- ------------
Total Liabilities . . . . . . . . . . . . . . . . . . . 624,023 733,434
-------------- ------------
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 issued and outstanding. . . . 11,454,871 11,454,871
Accumulated Deficit . . . . . . . . . . . . . . . . . . (10,258,574) (10,139,239)
Total Stockholders' Equity. . . . . . . . . . . . . . . 1,196,297 1,315,632
-------------- ------------
Total Liabilities and Stockholders' Equity. . . . . . . $ 1,820,320 $ 2,049,066
============== ============
</TABLE>
See accompanying notes to consolidated financial statements
3
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<TABLE>
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WORLDWIDE PETROMOLY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
September 30,
1999 1998
------------ ------------
(Unaudited) (Unaudited)
<S> <C> <C>
Net Sales . . . . . . . . . . . . . . . . . . . . . $ 188,135 $ 53,136
Cost of Sales . . . . . . . . . . . . . . . . . . . 89,700 37,122
------------ ------------
Gross Profit. . . . . . . . . . . . . . . . . . . . 98,435 16,014
Selling, Administrative
and General Expenses. . . . . . . . . . . . . . . . 365,140 372,263
------------ ------------
(Loss) From Operations. . . . . . . . . . . . . . . (266,705) (356,249)
Other Income, Net . . . . . . . . . . . . . . . . . 147,370 --
------------ ------------
Net (Loss). . . . . . . . . . . . . . . . . . . . . $ (119,335) $ (356,249)
============ ============
Net (Loss) per Share. . . . . . . . . . . . . . . . $ (.01) $ (.02)
============ ============
Weighted Average Number of
Common Shares Outstanding . . . . . . . . . . . . . 17,247,500 17,317,500
============ ============
</TABLE>
See accompanying notes to consolidated financial statements
4
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<TABLE>
<CAPTION>
WORLDWIDE PETROMOLY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
Three Months Ended
September 30,
1999 1998
-------------- -----------
(Unaudited) (Unaudited)
<S> <C> <C>
Cash Flows from Operating Activities:
Net Loss. . . . . . . . . . . . . . . . . . . . . . $ (119,335) $ (356,249)
Adjustments to reconcile
Net Loss to Net Cash used in Operating Activities
Depreciation. . . . . . . . . . . . . . . . . . . . 7,026 6,142
Changes in Assets and Liabilities
Accounts Receivable . . . . . . . . . . . . . . . . 159,776 47,158
Inventories . . . . . . . . . . . . . . . . . . . . (17,248) (28,128)
Prepaid Expense and Other Assets. . . . . . . . . . (58,707) (18,117)
Accounts Payable and Accrued Expenses . . . . . . . (196,211) 133,402
-------------- -----------
Net Cash used in Operating Activities . . . . . . . . (224,699) (215,792)
-------------- -----------
Cash Flows from Investing Activities:
Certificates of Deposit . . . . . . . . . . . . . . -- 276,579
Capital Expenditures. . . . . . . . . . . . . . . . -- (4,376)
Related Party Loan . . . . . . . . . . . . . . . . . -- 12,000
-------------- -----------
Net Cash provided by Investing Activities . . . . . -- 284,203
Cash Flows from Financing Activities:
Borrowing from shareholder . . . . . . . . . . . . 86,800 70,000
Repayment of Notes Payable. . . . . . . . . . . . . -- (160,000)
-------------- -----------
Net Cash provided by Financing Activities . . . . . 86,800 (90,000)
Net increase (decrease) in Cash and Cash Equivalents. (137,899) (21,589)
Cash and Cash Equivalents, Beginning of Period. . . . 603,336 34,375
-------------- -----------
Cash and Cash Equivalents, End of Period. . . . . . . $ 465,437 $ 12,786
============== ===========
</TABLE>
See accompanying notes to consolidated financial statements
5
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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 merger 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 merger, 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, 1999 and
June 30, 1999:
September 30 June 30
------------- ---------
Office furnishings and equipment $ 141,591 $141,591
Machinery and equipment. . . . . 17,616 17,616
Vehicles . . . . . . . . . . . . 12,062 12,062
------------- ---------
171,269 171,269
Less accumulated depreciation. . (75,772) (68,746)
------------- ---------
Net property and equipment . . . $ 95,497 $102,523
============= =========
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WORLDWIDE PETROMOLY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 4 - 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,
1999:
Net operating loss carryforwards $ 2,593,000
Stock options granted to non-employees 827,000
Amortization expense 25,500
Bad debt expense 7,000
------------
Gross deferred tax asset 3,452,500
------------
Valuation allowance (3,452,500)
------------
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, 1999 the Company had net operating loss carryforwards
totaling approximately $7,580,000 available to reduce future taxable income
through the year 2014 (see table).
The net operating loss carryforwards expire as follows:
Years ended December 31, Amount
----------------------------------- -----------
2008 $ 70,000
2009 263,000
2010 112,000
Eighteen months ended June 30, 2012 2,753,000
Year ended June 30, 2013 2,202,000
Year ended June 30, 2014 2,180,000
-----------
Total $ 7,580,000
===========
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WORLDWIDE PETROMOLY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 5 - LOSS PER SHARE
Using the principles set forth in SFAS 128, 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 the company. The company was
required to adopt this standard in the second fiscal quarter of 1998. Using the
principles set forth in SFAS 128, basic and diluted earnings per share are
identical.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Information Regarding and Factors Affecting Forward-looking Statements
The Company is including the following cautionary statement in this
Form 10-QSB to make applicable and take advantage of the safe harbor provision
of the Private Securities Litigation Reform Act of 1995 for any
forward-looking statements made by, or on behalf of, the Company.
Forward-looking statements include statements concerning plans, objectives,
goals, strategies, future events or performance and underlying assumptions and
other statements which are other than statements of historical facts.
Certain statements in this Form 10-QSB are forward-looking statements. Words
such as "expects", "anticipates", "estimates" and similar expressions are
intended to identify forward-looking statements. Such statements are subject
to risks and uncertainties that could cause actual results to differ materially
from those projected. Such risks and uncertainties are set forth below. The
Company's expectations, beliefs and projections are expressed in good faith and
are believed by the Company to have a reasonable basis, including without
limitation, management's examination of historical operating trends, data
contained in the Company's records and other data available from third
parties, but there can be no assurance that management's expectation,
beliefs or projections will result, be achieved, or be accomplished. In
addition to other factors and matters discussed elsewhere herein, the
following are important factors that, in the view of the Company, could cause
material adverse affects on the Company's financial condition and results of
operations: market acceptance and demand for the Company's products, competitive
factors, the ability of the Company to obtain acceptable forms and amounts
of financing. The Company has no obligation to update or revise these
forward-looking statements to reflect the occurrence of future events or
circumstances.
RESULTS OF OPERATIONS -GENERAL
In the first fiscal quarter of the year 2000's operation, the Company has
continued to streamline and refocus various aspects of the sales force and the
Company's infrastructure. The focus has been on expanding and improving the
product lines and developing lines of distribution to enhance sales volume,
spending the appropriate and necessary amount of capital for product
certification and quality control, and continuing its new concepts that
further display the Company's technology and product lines in new markets as
well as strengthen existing markets. The two areas of primary focus have
shifted from last year's concentrated strategy was the partial shift from the
commercial and industrial market, to the retail/passenger car market.
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Management's strategy to gain retail acceptance and credibility was cornerstoned
by its specially formulated Moly racing-oil designed for INDY style motors,
which was tested last year, saw a successful debut in the 1999 Indy Racing
League (IRL) including an eight place finish at the Indianapolis 500, and a
second place finish at the league's Atlanta race. This quarter it has
continued to enhance the Company's image in the retail market place, by setting
the tone of which the Company's top of the line products are to be exposed to
the market place. The Company sponsored the racecar driven by veteran driver
Robby Unser, in which the Company's lubricants were being successfully used to
display its advanced technology. Also the Company continued its display product
development by successfully focused on applying the proprietary technology to
produce new products such as high performance gear oil treatment and straight
track oil for competition drag racing engines. The company also continued its
development of cutting oils for threading, armament oil to private label, a two
cycle engine oil additive for motorcycles and outboard motors, a moly-grease, an
emissions reducing fuel treatment, and a very effective oil additive called
PetroMoly Oil Treatment designed for automobiles and light trucks.
The Company has continued field testing and objective lab testing of its
fully formulated engine oil, while several major multinational customers
continue evaluation tests of the PetroMoly products on their complex
high-end machinery and fleet vehicles. These tests have been complex
and time consuming, and the results have established the effectiveness of the
PetroMoly products. Management continues to anticipate an increase revenue and
the size of the customer base related to contracts and agreements
THREE MONTHS ENDED SEPTEMBER 30, 1999, COMPARED TO THREE MONTHS ENDED
SEPTEMBER 30, 1998
Total net sales for the three months ended September 30, 1999 were $
188,135 as compared to $ 53,136 for the three months ended September 30, 1998,
a 254% increase. The reason for the increase is credited to Management's
decision to expand to retail markets in the last two quarters of fiscal 1998
versus an earlier strategy to concentrate the sales resources on procuring a few
large industrial customers that are known industry leaders. Sales discounts,
selective sampling of products, together with long attentive testing periods
were however continued to be practiced to educate the strategic customers about
the new lubricant technology. The Company continued to benefit from publicity
from its association with Continental Airlines, and this has led to discussions
and testing with other industry related companies. The Company also received a
considerable amount of attention from the IRL racing sponsorship, and racing
results of racecars using PetroMoly products. Management believes that the
present sales and marketing strategy will reward the Company with increased
revenues, PetroMoly product awareness and fiscal commitments.
Cost of sales as a percentage of net sales decreased from 70 % for the
three months ended September 30, 1998, to 48% for the three months ended
September 30, 1999. This decrease is the result of several factors which
include: the Company's negotiated lower costs of production with its suppliers
as well as more favorable freight rates for distribution; higher profit margins
on its oil treatment products; and expanded services to its customers such as
promotional activities in the racing market, that generate revenue with a very
low cost of sales. A more consistent drop in costs should be realized due to
the economies of scale with increased volume production runs. The demand
associated with the caliber of customers that the Company has been targeting, as
well as the projected increase in retail demand from the anticipated brand
awareness campaign could qualify the Company for a decrease in the cost of
production runs with only a few, or in some cases one, consummated commitment.
Selling, general and administrative expenses slightly decrease to $ 365,140
for the three months ended September 30, 1999, from $ 372,263 for the three
months ended September 30, 1998. The decrease in expenses was mainly due to
continued streamlining of operations.
LIQUIDITY AND CAPITAL RESOURCES.
At September 30, 1999, the Company had positive working capital in the
amount of $ 1,421,236, including $995,047 in prepaid expense that included the
Indy racecar sponsorship amortization and the reclassification of the Company's
assets, as compared to working capital of $ 1,213,109 at June 30, 1999. The
increase in working capital was primarily due to the reclassification of company
assets.
Operating activities for the three months ended September 30, 1999 used
cash of $ 224,699 compared to $215,792 for the three months ended September 30,
1998. This use of cash was principally the result of the Company's net loss
each year, less the modification for the changes in operating assets and
liabilities, principally prepaid expenses and accounts payable.
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As of September 30, 1999, the Company had no material commitments for
capital expenditures.
At September 30, 1999, the Company has recorded a full valuation allowance
against all deferred tax assets because it could not determine whether it was
more likely or not that the deferred tax asset would be utilized.
For the three months ended September 30, 1999 and 1998, the Company
incurred net losses totaling $ 119,335 and $356,249 respectively. In the event
that the Company is unable to generate sufficient revenues from operations, or
is unable to obtain additional financing, it may be unable to continue to
develop and support its present cost levels and continue as a going
concern. The Company is presently seeking to raise additional equity
through the sale of its common stock for financing to develop a
professionally developed brand awareness advertising campaign and to expand
its marketing efforts in order to generate additional revenues. No assurance
can be given that the Company will be successful in achieving its
revenue growth strategy; or that it will obtain financing at terms that are
acceptable to the Company.
THE YEAR 2000 ISSUE
The Year 2000 issue is the result of computer programs and hardware with
embedded date technology (embedded chips) using two digits to define the
applicable year rather than four digits. Any programs or hardware that are time
sensitive and have not been determined to be Year 2000 compliant may recognize a
date using "00" as the year 1900 rather than the year 2000. Such improper date
recognition could, in turn, result in erroneous processing of data, or, in
extreme situations, system failure.
The Company is currently implementing a Year 2000 program which encompasses
performing an inventory of information technology and non-information technology
systems, assessing the potential problem areas, testing the systems for Year
2000 readiness, and modifying systems that are not Year 2000 compliant.
To date, inventory and assessment are in progress for all core systems that
are essential for business operations. The Company believes all of its core
systems are Year 2000 compliant. The Company's management estimates that the
work they have completed represents more than seventy-five percent of the work
involved preparing the Company's systems for the Year 2000.
Although the Company expects to be ready to continue business activities
without interruption by a Year 2000 problem, Company management recognizes the
general uncertainty inherent in the Year 2000 issue, in part because of the
uncertainty about the Year 2000 readiness of third parties. Under a "worst case
Year 2000 scenario", it may be necessary for the Company to temporarily
interrupt normal business activities or operations. The Company has begun, but
not yet completed, development of a contingency plan to deal with the most
likely worst case Year 2000 scenario".
Based on a current assessment, the Company's total cost of becoming Year
2000 compliant is not expected to be significant to its financial position,
results of operations or cash flows and is estimated to be less than $10,000.
There can be no assurances that the Company will not experience serious,
unanticipated negative consequences and/or material costs caused by undetected
errors or defects in the technology used in its internal systems or in the
technology used by its venders or customers. The occurrence of any of the
foregoing could have a material adverse effect on the Company's business,
operating results or financial condition. The Company has taken additional
steps in sending out questionnaires to its vendors and major customers
concerning their respective Year 2000 compliance status. So far all major
accounts, both vendors and customers have reported that they do not anticipate
any material adverse effect on the Company's on-going servicing relationships.
OUTLOOK
During the past quarter the Company has laid the groundwork to begin its
strategic focus of expanding to the development of a retail approach that
encompasses a brand and product awareness campaign in key markets. This
approach is expected to increase sales volumes and promote relationships with
automotive after-market chains while enhancing our presence with the leaders in
the industrial markets, which are end users, or already have established lines
10
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of distribution and marketing capital. The brand awareness began with the INDY
race car/Robby Unser sponsorship and it has been very well received by the
various automotive retail chains that the Company wants to carry its PetroMoly
Products. The media campaign, which is anticipated to begin in the second
calendar quarter, will roll out in strategic regions where the Company's
products are sold.
With the progressing sales relationships maturing and the new product lines
being marketed, the Company expects operating margins and revenues to improve
during fiscal 2000.
NEW ACCOUNTING PRONOUNCEMENTS
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 privileges of various securities
outstanding (stock, options, warrants, preferred stock, debt and participating
rights) including dividend and liquidations preferences, participant rights,
call prices and dates, conversion or exercise prices and redemption
requirements. Adoption of SFAS 129 has had 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 and financial position are
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. The Company
only operates in one segment of business, the marketing and distribution
of engine lubrication products. Major customers are disclosed in Note 1.
SFAS 132, Statement of Financial Accounting Standards (SFAS) 132,
"Employers' Disclosure about Pensions and Other Postretirement Benefits,"
revises standards for disclosures regarding pensions and other postretirement
benefits. It also requires additional information on changes in the benefit
obligations and fair values of plan assets that will facilitate financial
analysis. This statement does not change the measurement or recognition
of the pension and other postretirement plans. The financial statements are
unaffected by implementation of this new standard.
SFAS 133, Statement of Financial Accounting Standards (SFAS) 133,
"Accounting for Derivative Instruments and Hedging Activities," establishes
accounting and reporting standards for derivative instruments, including
certain derivative instruments embedded in other contracts, (collectively
referred to as derivatives) and for hedging activities. It requires that an
entity recognize all derivatives as either assets or liabilities in the
statement of financial position and measure those instruments at fair value. If
certain conditions are met, a derivative may be specifically designated as (a)
a hedge of the exposure to changes in the fair value of a recognized
asset or liability or an unrecognized firm commitment, (b) a hedge of the
exposure to variable cash flows of a forecasted transaction, or (c) a hedge of
the foreign currency exposure of a net investment in a foreign operation, an
unrecognized firm commitment, an available-for sale security, or a
foreign-currency-denominated forecasted transaction. Because the Company
has no derivatives, this accounting pronouncement has no effect on the
Company's financial statements.
11
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PART II - OTHER INFORMATION
Item 2. Changes in Securities
During the three months ended September 30, 1999, there were no
transactions that were effected by the Company in reliance upon exemptions from
registration under the Securities Act of 1933 as amended (the "Act") as
provided in Section 4(2) thereof.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 27.1 Financial Data Schedule
(b) Reports on Form 8-K -- None
12
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SIGNATURES
In accordance with the requirements of Section 13 of 15(d) of the Exchange
Act, the Registrant has caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized, on November 19, 1999.
Worldwide PetroMoly, Inc.
November 22, 1999 By: /s/ Gilbert Gertner
-------------------------
Gilbert Gertner
Director and
Chairman of the Board
Pursuant to the requirements of the Exchange Act, this report has been
signed below by the following persons in the capacities and on the dates
indicated:
November 22, 1999 By: /s/ Gilbert Gertner
-------------------------
Gilbert Gertner
Director and
Chairman of the Board
November 22, 1999 By: /s/ Lance Rosmarin
-------------------------
Lance Rosmarin
Director, President,
Secretary and
Chief Financialand Accounting Officer
13
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<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 465437
<SECURITIES> 0
<RECEIVABLES> 131401
<ALLOWANCES> 0
<INVENTORY> 132938
<CURRENT-ASSETS> 1724823
<PP&E> 171269
<DEPRECIATION> 75772
<TOTAL-ASSETS> 1820320
<CURRENT-LIABILITIES> 303587
<BONDS> 0
<COMMON> 11454871
0
0
<OTHER-SE> (10258574)
<TOTAL-LIABILITY-AND-EQUITY> 1820320
<SALES> 188135
<TOTAL-REVENUES> 188135
<CGS> 98435
<TOTAL-COSTS> 65140
<OTHER-EXPENSES> (147370)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (119335)
<INCOME-TAX> 0
<INCOME-CONTINUING> (119335)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (119335)
<EPS-BASIC> (.01)
<EPS-DILUTED> (.01)
</TABLE>
