**FORM 10-QSB**

 

----

 

**U.S. SECURITIES AND EXCHANGECOMMISSION**

**WASHINGTON, D.C. 20549**

 

 

 

**QUARTERLY REPORT UNDER SECTION13 OR 15(d) OF**

**THE SECURITIES EXCHANGE ACT OF1934**

 

 

**FOR THE QUARTERLY PERIOD ENDED**

**September 30, 2001**

** **

 

**Commission file number 0-24285**

 

 

**THE RICEX COMPANY**

 

 

|                         |   | **68-0412200**                   |
|------------------------------|--------|----------------------------------|
| **Incorporated in Delaware** |   | IRS  Employer Identification No. |
|                         |   |                             |

 

**1241 Hawk's Flight Court, El Dorado Hills, CA 95762**

** **

**Registrant's Telephone No. (916) 933-3000**

 

 

Indicate by check markwhether the registrant (1) has filed all reports required to be filed bySection 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding12 months (or for such shorter period that the registrant was required to filesuch reports), and (2) has been subject to such filing requirements for thepast 90 days. Yes ý No o

 

 

Numberof shares of common stock outstanding as of September 30, 2001:

38,829,350

 

TRANSITIONALSMALL BUSINESS DISCLOSURE FORMAT (Check One):

 

 

Yeso No ý

 

 

**The RiceX Company**

 

**Form 10-QSB for the Quarter Ended September 30, 2001**

 

 

**Index**

 
| Part I.    | Financial Information                                      |                                                                                                             |
|------------|------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|
|       |                                                       |                                                                                                             |   |
| Item 1.    | Financial Statements                                       |                                                                                                             |
|       |                                                       |                                                                                                             |   |
|       | a)                                                         | Consolidated Balance Sheet  at September 30, 2001                                                                |   |
|       | b)                                                         | Consolidated  Statements of Operations for the quarter and nine month periods ended  September 30, 2001 and 2000 |   |
|       | c)                                                         | Consolidated  Statements of Cash Flow for the quarter and nine month periods ended  September 30, 2001 and 2000  |   |
|       | d)                                                         | Notes to  Financial Statements                                                                                   |   |
|       |                                                       |                                                                                                             |   |
| Item  2.   | Management's  Discussion and Analysis or Plan of Operation |                                                                                                             |
|       |                                                       |                                                                                                             |   |
| Part II.   | Other Information                                          |                                                                                                             |
|       |                                                       |                                                                                                             |   |
| Item  1.   | Legal  Proceedings                                         |                                                                                                             |
|       |                                                       |                                                                                                             |   |
| Item 2.    | Changes In Securities                                      |                                                                                                             |
|       |                                                       |                                                                                                             |   |
| Item 3.    | Defaults Upon Senior  Securities                           |                                                                                                             |
|       |                                                       |                                                                                                             |   |
| Item  4.   | Submission  of Matters to a Vote of Security Holders       |                                                                                                             |
|       |                                                       |                                                                                                             |   |
| Item  5.   | Other  Information                                         |                                                                                                             |
|       |                                                       |                                                                                                             |   |
| Item 6.    | Exhibits and  Reports on Form 8-K.                         |                                                                                                             |
|       |                                                       |                                                                                                             |   |
|       | a)                                                         | Exhibits                                                                                                         |   |
|       |                                                       |                                                                                                             |   |
|       | b)                                                         | Reports  on Form 8-K                                                                                             |   |
|       |                                                       |                                                                                                             |   |
| Signatures |                                                       |                                                                                                             |   |

 

 

 

 

**THE RICEX COMPANY**

**CONSOLIDATEDBALANCE SHEET**

**September 30, 2001**

(unaudited)

 
| ASSETS |  
 

 

 

 
CURRENT  ASSETS:

 

 

 
Cash  and cash equivalents

 

$

957,722

 
Trade  accounts receivable

 

718,692

 
Inventories

 

202,168

 
Deposits  and other current assets

 

126,908

 
 

 

 

 
Total  current assets

 

2,005,490

 
 

 

 

 
PROPERTY  AND EQUIPMENT, net

 

1,958,142

 
 

 

 

 
OTHER  ASSETS

 

91,986

 
 

 

 

 
 

 

$

4,055,618

 
 

 

 

 
LIABILITIES AND SHAREHOLDERS’ EQUITY  (DEFICIT)

 
 

 

 

 
CURRENT  LIABILITIES:

 

 

 
Accounts  payable and accrued liabilities

 

$

464,363

 
Deferred  revenue

 

206,234

 
 

 

 

 
 

 

 

 
Total  current liabilities

 

670,597

 
 

 

 

 
Total  liabilities

 

670,597

 
 

 

 

 
SHAREHOLDERS'  EQUITY (DEFICIT)

 

 

 
Preferred  stock, par value $.00l per share,10,000,000  shares authorized, no shares issued and outstanding

 

-

 
Common  stock, par value $.001 per share,100,000,000  shares authorized, 38,829,350 shares issued and outstanding

 

38,829

 
Additional  paid-in capital

 

29,165,191

 
Accumulated  deficit

 

(25,818,999

)

 

 

 

 
Total  shareholders' equity

 

3,385,021

 
 

 

 

 
 

 

$

4,055,618

 
 

 

 

 
 

 

Theaccompanying notes are an integral part of these consolidated financialstatements.

 

**THE RICEX COMPANY**

**CONSOLIDATED STATEMENTS OFOPERATIONS**

(unaudited)

 

 

 

**Quarters ended**

 

**Nine months ended**

 

 

 

**Sept 30, 2001**

 

**Sept 30, 2000**

 

**Sept 30, 2001**

 

**Sept 30, 2000**

 

Revenues

 

 

 

 

 

 

 

 

 

Sales

 

$

1,767,406

 

$

837,340

 

$

4,610,641

 

$

2,655,387

 

Royalties

 

6,131

 

3,086

 

18,755

 

15,650

 

 

 

1,773,537

 

840,426

 

4,629,396

 

2,671,037

 

Cost of sales

 

671,910

 

547,105

 

2,032,799

 

1,635,895

 

 

 

1,101,627

 

293,321

 

2,596,597

 

1,035,142

 

Research and development expenses

 

48,734

 

45,603

 

150,038

 

220,909

 

Selling, general and administrative  expenses

 

446,359

 

350,351

 

1,311,439

 

862,088

 

Stock option and warrant compensation to  employees

 

-

   

24,948

   

-

   

74,844

   

Professional fees

 

157,385

 

41,726

 

399,391

 

244,588

 

Investor relations

 

55,894

 

14,908

 

126,395

 

431,083

 

Income (loss) from operations

 

393,255

 

(184,215

)

609,334

 

(798,370

)

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest and other income

 

17,782

 

15,106

 

60,719

 

86,754

 

Interest and other expense

 

(309

)

(255,771

)

(8,207

)

(767,735

)

Net income (loss)

 

$

410,728

 

$

(424,880

)

$

661,846

 

$

(1,479,351

)

Basic and diluted earnings per share:

 

 

 

 

 

 

 

 

 

Net income (loss) per share

 

$

0.01

 

$

(0.01

)

$

0.02

 

$

(0.04

)

Weighted average number of shares  outstanding

 

38,829,350

 

36,372,517

 

38,829,350

 

35,992,154

 

 

 

 

 

The accompanying notes are an integral part ofthese consolidated financial statements.

 

 
****
 

**THE RICEX COMPANY**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

(unaudited)

 

 

 

**Quarters  ended**

 

**Nine  months ended**

 

 

 

**Sept 30, 2001**

 

**Sept 30, 2000**

 

**Sept 30, 2001**

 

**Sept 30, 2000**

 

Cash flow from operating activities:

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

410,730

 

$

(424,880

)

$

661,846

 

$

(1,479,351

)

Adjustments to reconcile net income  (loss) to net cash from operating activities

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

203,800

 

175,366

 

612,889

 

511,101

 

Shares, warrants and options issued for  compensation and services

 

38,455

   

24,948

   

82,732

   

154,971

   

Amortization of investor relations fees

 

-

 

-

 

-

 

281,527

 

Deferred revenue received

 

620,400

 

-

 

827,200

 

-

 

Deferred revenue recognized

 

(620,400

)

-

 

(1,961,200

)

-

 

Amortization of prepaid processing fees

 

19,531

 

19,532

 

58,595

 

58,594

 

Amortization of prepaid interest and  debt issuance costs

 

-

 

254,974

 

-

 

764,919

 

Net changes in operating assets and  liabilities

 

 

 

 

 

 

 

 

 

Trade accounts receivable

 

42,976

 

9,383

 

(77,012

)

(200,166

)

Inventories

 

(95,355

)

53,339

 

110,666

 

173,716

 

Deposits and other current assets

 

(46,203

)

72,259

 

(81,056

)

(9,150

)

Accounts payable and accrued liabilities

 

(42,405

)

(22,342

)

(152,530

)

(63,174

)

Net cash from operating activities

 

531,529

 

162,579

 

82,130

 

192,987

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

(Purchases) sales of property and  equipment, net

 

(101,975

)

(57,121

)

(92,150

)

(153,513

)

Net cash from investing activities

 

(101,975

)

(57,121

)

(92,150

)

(153,513

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock

 

-

 

-

 

-

 

126,000

 

Proceeds, issuance of common stk,  exercise of options

 

-

 

-

 

-

 

(1,500

)

Issuance of common stock on equipment  purchase

 

-

 

-

 

-

 

68,750

 

Expenses related to conversion of debt

 

-

 

(81,216

)

-

 

(81,216

)

Private Placement financing expenses

 

-

 

-

 

-

 

(9,600

)

Net cash from financing activities

 

-

 

(81,216

)

-

 

102,434

 

Net (decrease) increase in cash and cash  equivalents

 

429,554

 

24,242

 

(10,020

)

141,908

 

Cash and cash equivalents, beginning of  period

 

528,168

 

1,147,715

 

967,742

 

1,030,049

 

Cash and cash equivalents, end of period

 

$

957,722

 

$

1,171,957

 

$

957,722

 

$

1,171,957

 

 

 

Theaccompanying notes are an integral part of these consolidated financialstatements.

 

 

**THE RICEX COMPANY**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

 

 

1.   DESCRIPTION OF BUSINESS AND SIGNIFICANTACCOUNTING POLICIES

 

The RiceX Company("RiceX"), formerly Food Extrusion, Inc., was incorporated inCalifornia in 1989 and in 1998 was reincorporated in Delaware and changed itsname to The RiceX Company.  RiceX has awholly owned subsidiary, Food Extrusion Montana, Inc. (“FoodEx Montana”). Theconsolidated financial statements include the accounts of RiceX and FoodExMontana (collectively "the Company"), after the elimination of allinter-company balances and transactions.

 

The Company is anagribusiness food technology company, which has developed a proprietary processto stabilize rice bran. RiceX is headquartered in El Dorado Hills, Californiaand has stabilization equipment located at a rice mills in Northern California.  The Company purchases raw rice bran from themill and mill employees, under Company supervision, operate the Company'sequipment to stabilize rice bran. The Company pays a processing fee to the millfor this service. Also under agreement with this mill, the mill may use theCompany's equipment to stabilize rice bran for its customers in exchange forthe payment of a royalty fee to the Company.

 

FoodEx Montana isengaged in the business of custom manufacturing grain-based products for foodingredient companies at its production facility in Dillon, Montana. Thefacility has specialized processing equipment and techniques for the treatmentof grain products to cook, enzyme treat, convert, isolate, dry and packagefinished food ingredients. The soluble and fiber complex form of the Company'srice bran products are produced at the Montana facility.

 

There have been nochanges in the Company's significant accounting policies as set forth in theCompany's audited financial statements for the year ended December 31, 2000,which were included in the Company's Form 10-KSB. These unaudited financialstatements for the nine months ended September 30, 2001 have been prepared inaccordance with generally accepted accounting principles for interim financialinformation. Accordingly, they do not include all of the information andfootnotes required by generally accepted accounting principles for completefinancial statements. In the opinion of management, all adjustments (consistingof normal recurring accruals) considered necessary for a fair presentation havebeen included. The results of operations for the nine months ended September30, 2001 are not necessarily indicative of the results expected for the fullyear.

 

2.     PROPERTY AND EQUIPMENT

 

At September 30, 2001,property and equipment consists of the following:

 

Land  and buildings

 

$

367,961

 

Equipment

 

4,409,920

 

Leasehold  improvements

 

381,641

 

Furniture  and fixtures

 

225,417

 

 

 

5,384,939

 

Less  accumulated depreciation and amortization

 

(3,628,697

)

 

 

1,756,242

 

Equipment  not placed in service

 

201,900

 

 

 

$

1,958,142

 

 

 

 

3.     ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

 

At September 30, 2001,accounts payable and accrued liabilities consist of the following:

 

Trade  accounts payable

 

$

158,038

 

Other  accrued liabilities

 

306,325

 

 

 

$

464,363

 

 

4.     PROVISIONFOR INCOME TAXES

 

While the Company hasnet income in 2001, the company expects to utilize net operating losscarry-forwards, which will reduce income tax expense to the state minimum taxof $800 for year ended December 31, 2001. Net operating loss carry-forwardsexpire for federal tax purposes at various dates from 2009 through 2020 andexpire for state tax purposes in 2003 through 2010.

 

5.   NET INCOME (LOSS) PER SHARE

 

Basic net income (loss) pershare is computed by dividing net income (loss) by the weighted average numberof common shares outstanding during all periods presented.  Options and warrants are excluded from thebasic net income (loss) per share calculation because they are currentlyanti-dilutive.

 

6.   SUBSEQUENT ACCOUNTINGPRONOUNCEMENTS

 

In June 2001, the Financial Standards Accounting Board (FASB) issuedStatement of Financial Accounting Standards (SFAS) No. 141, “BusinessCombinations” and SFAS No. 142, “Goodwill and Other Intangible Assets”.  SFAS No. 141 addresses financial accountingand reporting for business combinations and supercedes APB Opinion No. 16,“Business Combinations” and SFAS No. 38, “Accounting for Preacquisition Contingenciesof Purchased Enterprises”.  SFAS No. 141is effective for transactions initiated after June 30, 2001.  SFAS No. 142 addresses financial accountingand reporting for acquired goodwill and other intangible assets and supersedesAPB Opinion No. 17, Intangible Assets*.*Itaddresses how intangible assets that are acquired individually or with a groupof other assets (but not those acquired in a business combination) should beaccounted for in financial statements upon their acquisition.  SFAS No. 142 also addresses how goodwill andother intangible assets should be accounted for after they have been initiallyrecognized in the financial statements. The Company does not expect the adoption of this statement to have amaterial effect on its consolidated results of operations or financialposition.

 

In June 2001, the Financial Standards Accounting Board (FASB) issuedStatement of Financial Accounting Standards (SFAS) No. 143, “Accounting forAsset Retirement Obligations”.  ThisStatement addresses financial accounting and reporting for obligations associatedwith the retirement of tangible long-lived assets and the associated assetretirement costs.  It applies to legalobligations associated with the retirement of long-lived assets that resultfrom the acquisition, construction, development and (or) the normal operationof a long-lived asset, except for certain obligations of lessees.  The Company is required to adopt theprovisions of Statement No. 143 no later than the beginning of fiscal year2003, with early adoption permitted. The Company does not expect the adoption of this statement to have amaterial effect on its consolidated results of operations or financialposition.

 

In August 2001, the FASB issued Statement No. 144, “Accounting for theImpairment or Disposal of Long-Lived Assets”, which addresses financialaccounting and reporting for the impairment or disposal of long-livedassets.  While Statement No. 144supersedes FASB Statement No. 121, Accounting for the Impairment of Long-LivedAssets and for Long-Lived Assets to Be Disposed Of, it retains many of thefundamental provisions of that Statement. Statement No. 144 becomes effectivefor fiscal years beginning after December 15, 2001, with early applicationsencouraged. The Company does not expect the adoption of this statement to havea material effect on its consolidated results of operations or financialposition.

 

 

Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLANOF OPERATION

 

The following is adiscussion of the consolidated financial condition of The RiceX Company and theresults of operations for the quarters and nine months ended September 30, 2001and 2000.

 

When used in this report,the words "believe," "expect," "anticipate" andsimilar expressions, together with other discussion of future trends orresults, are intended to identify forward-looking statements within the meaningof Section 27A of the Securities Act of 1933, as amended (the "SecuritiesAct") and Section 21E of the Securities Exchange Act of 1934, as amended(the "Exchange Act"). Such statements are subject to certain risksand uncertainties, including those discussed below that could cause actualresults to differ materially from those projected. These forward-lookingstatements speak only as of the date hereof. All of these forward-lookingstatements are based on estimates and assumptions made by management of theCompany which, although believed to be reasonable, are inherently uncertain anddifficult to predict; therefore, undue reliance should not be placed upon suchstatements. The following important factors, among others, could cause theCompany's results of operations to be adversely affected in future periods: (i)increased competitive pressures from existing competitors and new entrants;(ii) increases in interest rates or the Company's cost of borrowing or adefault under any material debt agreements; (iii) deterioration in general orregional economic conditions; (iv) adverse state or federal legislation orregulation that increases the costs of compliance, or adverse findings by aregulator with respect to existing operations; (v) loss of customers or salesweakness; (vi) inability to achieve future sales levels or other operatingresults; (vii) the unavailability of funds for capital expenditures; and (viii)operational inefficiencies in distribution or other Company systems. Many ofsuch factors are beyond the control of the Company. There can be no assurancethat the Company will not incur new or additional unforeseen costs inconnection with the ongoing conduct of its business. Accordingly, any forward-lookingstatements included herein do not purport to be predictions of future events orcircumstances and may not be realized. In addition, assumptions relating tobudgeting, marketing, advertising, litigation and other management decisionsare subjective in many respects and thus susceptible to interpretations andperiodic revisions based on actual experience and business developments, theimpact of which may cause the Company to alter its marketing, capitalexpenditure or other budgets, which may in turn affect the Company's financialpositions and results of operations.

 

QUARTERS ENDED SEPTEMBER30, 2001 AND 2000

 

Consolidated revenues inquarter ended September 30, 2001 was $1,774,000, an increase of $933,000, or111%, from the same period last year. The sales increase was primarilyattributed to an increase in one product category, solubles. Solubles increased$933,000 to $1,086,000 compared to the third quarter last year. The increasedsales of solubles were the result of sales to The Christians Children’s Fund inGuatemala and an increased demand domestically. Stabilized Rice Bran("SRB") regular sales showed an increase in revenue of $55,000 to$559,000, SRB fine increased $69,000 to $97,000, while, fiber decreased$126,000 to $26,000 compared to sales for quarter ended September 30, 2000.

 

Gross margins forquarter ended September 30, 2001 were $1,102,000, or 62%, compared to $293,000,or 35%, during the same period last year. The increase in gross margin was theresult of increased total revenues and more directly an increase in sales ofour higher margin solubles product line in quarter ended September 30, 2001versus the same period last year. Gross margins on the Company's variousproducts vary widely and the gross margins are impacted from period to periodby sales mix and utilization of production capacity. The Company expects thatgross margins will improve as sales volumes increase in higher margin products.

 

Research and development("R&D") expenses slightly increased for quarter ended September30, 2001 compared to the same period last year. R&D expenditures went from$46,000 for quarter ended September 30, 2000 to $49,000 for the currentquarter. The modest increase for quarter ended September 30, 2001wasanticipated by management and in line with increased activity during thecurrent quarter.

 

Selling, General, andAdministration ("S,G&A") expenses were $446,000 for quarter endedSeptember 30, 2001, compared to $350,000 for quarter ended September 30, 2000,an increase of $96,000. In general, these expenses have increased withincreased activities over the same period last year. These increases have beenanticipated by management based upon their 2001 business development plan. Thistrend is expected by management to continue for the next three months on acomparative basis to the same time period last year.

 

 

Stock option and warrantcompensation to employees was $25,000 for quarter ended September 30, 2000 andzero for quarter ended September 30, 2001. Stock option compensation expense isa non-cash charge relating to the issuance of favorably priced stock options toemployees and directors to attract and retain key personnel to the Company. Thecharge represents the difference between the exercise price and the tradingvalue on the date of the grant. The difference is recognized over the vestingperiod of each grant, which generally ranges from two to three years, exceptfor the directors' grants, which vest over one year.

 

Professional feesincreased to $157,000 for quarter ended September 30, 2001 compared to $42,000for the third quarter last year. The increased fees were anticipated because ofincreased activity for quarter ended September 30, 2001 compared to the sameperiod last year. The quarter ended September 30, 2001 professional fees areassociated with legal fees and new business development consulting fees andrelated charges.

 

Investor relations feesincreased from $15,000 during this period last year to $56,000 for quarterended September 30, 2001. The increase of $41,000 was associated with expensesrelated to an investor relations firm combined with expenses associated withfinancial printing and reporting fees.

 

Interest expense forquarter ended September 30, 2001 decreased more than $256,000 compared to thesame period last year.  Interest expensefor quarter ended September 30, 2001 was $300 compared to $256,000 for quarterended September 30, 2000. The $256,000 decrease for quarter ended September 30,2001, compared to quarter ended September 30, 2000, is associated with theeliminated amortization of interest expense on a note to a shareholder that waspaid in December 2000.

 

For quarter endedSeptember 30, 2001, the Company's net income was $411,000, or $.01 per share,compared to a net loss of $425,000 or $.01 per share, an improvement of$836,000 over the same period last year. The improvement for the quarter isprimarily due to successful marketing efforts resulting in increased revenues,increased efficiencies in production, and increased gross margins. Combining a decreasein interest expenses, strong solubles sales to the Christians Children’s Fundin Guatemala, and increased sales of solubles domestically; the Companyexperienced an improvement in net income.

 

While the Company hasnet income in 2001, the Company expects to utilize net operating losscarry-forwards which will reduce income tax expense to the state minimum tax of$800 for year ended December 31, 2001. Net operating loss carry-forwards expire for federal tax purposes atvarious dates from 2009 through 2020 and expire for state tax purposes in 2003through 2010.

 

NINE MONTHS ENDEDSEPTEMBER 30, 2001 AND 2000

 

Consolidated revenuesthrough September 30, 2001 increased $1,958,000, or 73% from $2,671,000 fornine months ended September 30, 2000 to $4,629,000 for nine months endedSeptember 30, 2001. The sales increase is attributed to a year to date increaseprimarily in two product categories, solubles and SRB fine. Solubles increaseof $2,103,000, or 403%, due to sales to the Christians Children’s Fund inGuatemala and an increase demand domestically. SRB fine increased $64,000, or79%. The Company expects the increased revenue trend to continue for year endedDecember 31, 2001 results.

 

Gross margins throughnine months ended September 30, 2001 were $2,597,000, or 56%, compared to$1,035,000 or 49%, during the same period last year. Contributing to theincrease in both margin dollars and percentage was the result of strongsolubles sales to the Christians Children’s Fund in Guatemala, and increasedsales of solubles domestically. Gross margins on the Company's various productsvary widely and the gross margins are impacted from period to period by salesmix and utilization of production capacity. The Company expects that grossmargins will improve as sales volumes increase in higher margin products.

 

R&D expenses reflectdecreases for nine months ended September 30, 2001 compared to the same periodlast year. R&D expenditures decreased from $221,000 for the period endedSeptember 30, 2000 to $150,000 for the current period ended September 30, 2001.The reduction of R&D expenses is mostly due to the reimbursement from acustomer for R&D expenditures in process research.

 

 

S,G&A expenses were$1,311,000 for nine months ended September 30, 2001 compared to $862,000 forthe period ended September 30, 2000, an increase of $449,000. During 2000, theCompany received reimbursements from an affiliate for 1999 and 2000 expensesincurred for office, insurance, and rent expenses. Also, some marketing andadministrative expenses have increased with increased activities for quarterended September 30, 2001. These increases have been anticipated by managementbased upon their 2001 business development plan. The Company expects this trendto continue for the next three months on a comparative basis to the same timeperiod last year.

 

Stock option and warrantcompensation to employees was $75,000 for nine months ended September 30, 2000and zero for nine months ended September 30, 2001. Stock option compensationexpense is a non-cash charge relating to the issuance of favorably priced stockoptions to employees and directors to attract and retain key personnel to theCompany. The charge represents the difference between the exercise price andthe trading value on the date of the grant. The difference is recognized overthe vesting period of each grant, which generally ranges from two to threeyears, except for the directors' grants, which vest over one year.

 

Professional feesincreased to $399,000 for the period ended September 30, 2001 from $245,000 forthe prior year's period. The increase of $154,000 is primarily associated tonew business development consulting fees and related charges. The increases ona comparative basis have been anticipated by management and are included in theCompany’s 2001 business development plan.

 

Investor relations feesdecreased from $431,000 for this period last year to $126,000 for quarter endedSeptember 30, 2001. The decrease of $305,000 was primarily associated with theabsence in 2001 of expenses related to an investor relations firm for theissuance of stock and warrants in return for services in 2000. Expenditures at2001 levels are expected to continue for the remainder of year ending December31, 2001.

 

Interest expense for theperiod ended September 30, 2001 was $8,000 compared to $768,000 for the sameperiod last year. The decrease was associated with the eliminated amortizationof interest expense on a note to a shareholder that was paid off in December2000.

 

For the nine monthsended September 30, 2001, the Company’s net income was $662,000 or $.02 pershare, compared to a net loss of $1,479,000 or $.04 per share, an improvementof $2,141,000 over the same period last year. The improvement is primarily dueto successful marketing efforts resulting in increased revenues, increasedefficiencies in production, and increased gross margins. Combining a decreasein interest expenses, strong solubles sales to the Christians Children’s Fundin Guatemala, and increased sales of solubles domestically; the Companyexperienced a significant improvement in its net income and anticipates thatthis trend will continue through 2001 on a comparative basis to fiscal year2000.

 

While the Company hasnet income in 2001, the Company expects to utilize net operating losscarry-forwards which will reduce income tax expense to the state minimum tax of$800 for year ended December 31, 2001. Net operating loss carry-forwards expire for federal tax purposes atvarious dates from 2009 through 2020 and expire for state tax purposes in 2003through 2010

 

LIQUIDITY AND CAPITALRESOURCES

 

During the firstnine months ended September 30, 2001, the cash balance decreased compared tothe same period last year. Cash balance at September 30, 2001 decreased$214,000 to $958,000 from $1,172,000 at September 30, 2000.  Cash balances during the year 2000 werebuilding in anticipation of retiring the Company’s final long-term debt of$1,850,000 at December 31, 2000.

 

Nine months endedSeptember 30, 2001 showed $1,216,000 in cash provided from operating activitiesbefore realizing $1,134,000 of deferred revenue received and recognized atSeptember 30, 2001. After recognizing deferred revenue for nine months endedSeptember 30, 2001, cash generated in operations was $82,000 compared withgenerating $193,000 from operating activities for nine months ended September30, 2000. As disclosed below, the Company has $207,000 of product prepayment indeferred revenue at September 30, 2001 for the October 2001 shipment to theChristians Children’s Fund in Guatemala. The Company expects to continueshipments to The Christians Children’s Fund in Guatemala. Cash flows fromfinancing activities were $102,000 and zero at quarters ended September 30,2000 and 2001 respectively.

 

 

In December 2000, the Company entered into an international jointventure with PRODESA and the Christians Children’s Fund for supplyingnutritionally dense ingredients for regional nutritional enhancement and schoolbreakfast/lunch programs at the community level throughout Guatemala. As aresult, the Company received an initial order from PRODESA for $2,500,000 thatrequired the Company to deliver product to Guatemala over twelve monthsstarting January 2001. Also in December 2000, the Company received $1,240,800as prepayment for the first six months of said purchase order to Guatemala. Forthe second six months arrangements under said purchase order, the Company hasreceived monthly prepayments from The Christians Children’s Fund in Guatemala.  During 2001 the Company has been deliveringproduct to The Christians Children’s Fund in Guatemala on a monthly basis. AtSeptember 30, 2001 the Company has $207,000 of product prepayment recorded indeferred revenue for the October 2001 shipment. The Company and PRODESA expectthe twelve-month program in Guatemala to be successful and expand into othercountries of the region. The Company anticipates it will start shippingsolubles to Honduras during the fourth quarter of 2001 but not later than thefirst quarter of 2002. The Honduras program will be similar to that establishedin Guatemala. The Company is holding substantive discussions with severalgovernment authorities which may result in expanding its Central Americanprogram into an additional three countries during year 2002.

 

During 2000, the Company finalized and entered into a joint ventureagreement with NutraStar, Incorporated (“NutraStar”) for developing andmarketing the nutraceutical and value-added functional foods markets for humannutrition. NutraStar was granted an exclusive license to sell RiceX products inthe nutraceutical market. The license covers the United States on an exclusivebasis and worldwide on a non-exclusive basis. The exclusive license can be expanded on a country-by-country basis. Aspart of this transaction, Patricia McPeak resigned as President of the Companyand became an officer and shareholder of NutraStar. Ms. McPeak retained herseat on the Company's Board of Directors until June 29, 2001, the end of herterm.  She is the spouse of Daniel L. McPeak,Sr., Chairman of the Board and Chief Executive Officer of the Company.  In exchange for the exclusive license in thenutraceutical market, the Company will receive license fees and it became ashareholder in NutraStar. By year-end 2000 NutraStar had not finalized itspending funding; consequently the Company established a reserve of $250,000against a receivable from NutraStar. For nine months ended September 30, 2001,the Company has a receivable from NutraStar for approximately $27,000 net ofallowance for doubtful accounts of $250,000. There have been no changes in thepending funding for NutraStar as of September 30, 2001 and consequently theCompany has suspended NutraStar’s exclusivity.
 
During 2000, initialmarket development focused on nutritionally dense ingredients in theinternational market place: first in Latin America and then Asian countries.These market segments currently represent multi billion dollar potential marketopportunities. Also during 2000, the Company initiated strategic alliancediscussions with major domestic premium pet food and equine feed manufacturersand distributors. Domestic markets for these segments currently represent apotential opportunity of over $250 million annually. During 2001, the Companycontinues to aggressively discuss joint venture opportunities with majorpremium pet and equine product producers. The Company hopes the results ofthese successful alliances will have a significant financial effect on theCompany’s annual revenues and profit lines starting within fiscal year 2002.There can be no assurance the Company will obtain additional strategicpartners.

 

The Company has retained the services of TheUniversity of Illinois, Animal Science Department to study the physiologicaleffects of RiceX Bran on companion pets. The results of this eight-weekclinical trial will be scientifically reviewed and published upon completion.The Company hopes that this study will have a positive effect on its marketingefforts worldwide. The United States market for companion pet foods isestimated to be $12 billion annually and $27 billion worldwide. The Universityof Illinois is currently preparing the clinical study report that the Companyanticipates receiving by year end December 31, 2001.

 

The Companyexpects to continue to expand its sales and marketing efforts, research anddevelopment, and professional and legal fees for patent and trademarkapplications. The Company has various ongoing business development strategiesthat target international markets and domestic premium pet food and equine feedmarkets.

 

These effortscould significantly increase demand for the Company's products beyond theCompany's current production capacity. While the Company believes it canincrease its production capacity to meet sales demand, significant additionalcapital could be required to meet such expansion requirements. The Company hassufficient cash reserves to meet all anticipated short term operatingrequirements.

 

The timing and amount of any long term capital requirements cannot bepredicted at this time. There can be no assurance that any financing will beavailable on acceptable terms.  If suchfinancing is not available on satisfactory terms, the Company may be unable todevelop or expand its business, develop new products, or develop new markets atthe rate desired and its operating results may be adversely affected.

 

PART II. OTHERINFORMATION

 

Item 1.    LEGAL PROCEEDINGS

 

The Company is from timeto time involved in litigation incidental to the conduct of its business. Whilethe outcome of lawsuits and other proceedings against the Company cannot bepredicted with certainty, in the opinion of management, none of the litigationin which the Company is currently involved, individually or in the aggregate,is expected to result in a material effect on the Company’s financial positionor results of operations.

 

 

Item 2.    CHANGES IN SECURITIES

None

 

Item 3.    DEFAULTS UPON SENIOR SECURITIES

None

 

Item 4.    SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS

 

The annual Meeting ofStockholders of the Company was held on June 29, 2001. At the 2001 AnnualMeeting, the Company’s stockholders considered and voted upon the followingmatters:

 

1.

 

Approving the election of Daniel L. McPeak Sr. and  Todd C. Crow as directors of the Company; and

2.

 

Approving the increase of authorized shares of  common stock to be issued under the Company’s 1997 Stock Option Plan from  5,000,000 to 10,000,000 and increasing the number of reserved shares of  Common Stock from 5,000,000 shares to 10,000,000 shares.

 

At the time of the meeting, proxies representing 32,128,855 votes werecast approving the election of Daniel L. McPeak Sr. and Todd C. Crow asdirectors of the Company. In addition, proxies representing 20,078,115 voteswere cast approving the increase of authorized shares of common stock to beissued under the Company’s 1997 Stock Option Plan from 5,000,000 to 10,000,000and increasing the number of reserved shares of Common Stock from 5,000,000shares to 10,000,000 shares.

 

The directors whose terms of office as directors continued after themeeting are Kirit S. Kamdar, Steven W. Saunders and Kenneth L. Miller.

 

The final tabulation of votes cast for, against, or withheld, as wellas the number of abstention and broker non-votes for each director nominee andamending the 1997 Stock Option Plan.

 

 

 

**VOTES**

 

 

 

**BROKER**

 

 

 

**FOR**

 

**AGAINST**

 

**WITHHELD**

 

**ABSTENTIONS**

 

**NON-VOTES**

 

Daniel L. McPeak Sr.

 

32,128,855

 

-

 

155,028

 

-

 

-

 

Todd C. Crow

 

32,128,855

 

-

 

155,028

 

-

 

-

 

Amending 1997 Stock Option Plan

 

20,078,115

 

309,183

 

-

 

49,611

 

-

 

 

Item 5.    OTHER INFORMATION

None

 

 

Item 6.    EXHIBITS AND REPORTS ON FORM 8-K

 

(a) EXHIBIT NO   DESCRIPTIONOF EXHIBIT

 

2.1

 

Certificate of  Incorporation of the Company. (1)

 

2.2

 

Form of Incorporation  of the Company. (1)

 

3.1

 

Certificate of  Incorporation of the Company. (1)

 

3.2

 

Form of  Corporate By-laws (2)

 

4.1

 

Option Agreement  between the Company and David B. Lockton dated August 1, 1996. (1)

 

4.2

 

Security Agreement  between Food Extrusion, Inc. and Monsanto Company dated November 1, 1996. (1)

 

4.3

 

Promissory  Note of the Company in favor of Monsanto Company in the amount of $5,000,000  dated November 1, 1996. (1)

 

4.4

 

Registration  Rights Agreement by and among the Company and Monsanto Company dated February  5, 1997. (1)

 

4.5

 

Form  of Registration Rights Agreement between the Company and certain officers and  directors. (1)

 

4.6

 

Form of Warrant  Agreement between the Company and certain investors dated February 9, 1996.  (1)

 

4.7

 

Letter Agreement  between the Company and certain investors dated January 15, 1999. (5)

 

4.8

 

Shareholders Agreement  between CF Corporation (formerly Centennial Foods, Inc.) and the Company  dated March 19, 1997. (1)

 

4.9

 

Amendment No. 1 to the  Shareholders Agreement between CF Corporation and the Company dated January  15, 1999. (5)

 

4.10

 

Registration Rights  Agreement between the Company and CF Corporation dated January 22, 1999. (5)

 

4.11

 

Form of Directors Stock  Option Agreement. (1)(3)

 

4.12

 

Form  of Non-statutory Stock Option Agreement not issued under the 1997 Stock  Option Plan, governing options granted to employees by the Company. (1)(3)

 

4.13

 

Note Agreement between  Monsanto Company and the Company dated October 31, 1996. (1)

 

4.14

 

Addendum No. 1 to Note  Agreement dated October 31, 1996 between Monsanto Company and the Company  dated February 6, 1997. (1)

 

4.15

 

Creditor  Agreement between Centennial Foods, Inc., the Company and Ike Lynch dated  October 14, 1996. (1)

 

4.16

 

Creditor Agreement  between Centennial Foods, Inc., the Company and Montana Department of  Environmental Quality dated October 18, 1996. (1)

 

4.17

 

Assignment of  Commercial Security Agreement and Business Loan and Credit Agreement dated  March 4, 1996 between Seattle–First National Bank and Company 19 General  Partnership. (1)

 

4.18

 

Assignment of  Subordination Agreements and Negotiable Collateral between Seattle­-First  National Bank and Company 19 General Partnership dated March 4, 1996. (1)

 

4.19

 

Creditor Agreement  between Centennial Foods, Inc. and Company 19 General partnership dated  October 14, 1996. (1)

 

4.20

 

Form  of Subordination Agreement between certain creditors of Centennial Foods,  Inc. in favor of Seafirst. (1)

 

4.21

 

Creditor's Agreement  between Centennial Foods and Montana Department of Commerce dated October 11,  1996. (1)

 

4.22

 

Form of Creditor's  Agreement between Centennial Foods, Inc. and certain convertible note  holders. (1)

 

4.23

 

Amended  and Restated Loan Agreement between the Company and FoodCeuticals dated as of  December 31, 1998. (5)

 

4.24

 

Promissory Note in the  amount of $1,850,000 payable to FoodCeuticals dated December 31, 1998. (5)

 

4.25

 

Registration  Rights Agreement between the Company and FoodCeuticals dated December 31,  1998. (5)

 

4.26

 

Warrant  Agreement number 98-1 between the Company and FoodCeuticals dated December  31, 1998. (5)

 

4.27

 

Warrant Agreement  number 99-1 between the Company and FoodCeuticals dated January 15, 1999. (5)

 

4.28

 

Security Agreement  between the Company and FoodCeuticals dated December 31, 1998. (5)

 

4.29

 

Form of Warrant  Agreement between the Company and certain former officers of the Company  dated as of December 1998. (5)

 

4.30

 

Subscription Agreement  between the Company and Heldomo, A.G. dated September 10, 1998. (5)

 

4.31

 

Warrant Agreement  between the Company and Heldomo, A.G. dated September 10, 1998. (5)

 

4.32

 

Stockholder Agreement  by and among Patricia McPeak, The RiceX Company, Inc., Joseph Pagano, Eugene  Mulvihill, and BioCeutics, Inc. dated November 1, 1999. (6)

 

4.33

 

Warrant Agreement  between the Company and Dorchester Group dated April 26, 1999. (6)

 

4.34

 

Form of non-statutory  Stock Option Agreement issued under the 1997 Stock Option Plan between the  Company and employees dated October 1, 1999. (3)(6)

 

4.35

 

Warrant Agreement  between the Company and JDK & Associates dated November 1, 1999. (6)

 

4.36

 

Addendum No. 2 to the  October 31, 1996 Monsanto Security Agreement dated November 30, 1999. (6)

 

4.37

 

Form of non-statutory  Stock Option Agreement issued under the 1997 Stock Option Plan between the  Company and Vice President, Operations, Ike Lynch dated November 1, 1999.  Identical Agreements with Vice President and General Manager, Daniel McPeak,  Jr. and Vice President of Finance, Chief Financial Officer, Todd C. Crow. (3)(6)

 

4.38

 

Form of Subscription  Agreement to the Private Placement Offering 1999. (6)

 

4.39

 

Form of Warrant  Agreement to the Private Placement Offering 1999. (6)

 

4.40

 

Memorandum of  Understanding dated June 29, 2000 between the Company and Intermark Partners,  LLC to convert to equity the note for $2,500,000. (8)

 

4.41

 

Warrant agreement  between the Company and GBV Intermark Fund, LLC dated September 29, 2000. (9)

 

4.42

 

Warrant agreement  between the Company and Gilbert L. McCord, Sr. dated September 29, 2000. (9)

 

4.43

 

Definitive agreement  between the Company and Intermark Partners, LLC dated September 29, 2000. (9)

 

4.44

 

Form of Warrant  Agreement between the Company and certain former employees dated as of March  31, 2000. (10)

 

4.45

 

Non-statutory Stock  Option Agreement issued under the 1997 Stock Option Plan between the Company  and Daniel L. McPeak, Sr. dated October 27, 2000. (3)(10)

 

4.46

 

Warrant agreement  between the Company and Intermark Partners Strategic Management, LLC  representing the Class I Warrant dated October 2, 2000. (10)

 

4.47

 

Warrant agreement  between the Company and Intermark Partners Strategic Management, LLC  representing the Class II Warrant dated October 2, 2000. (10)

 

4.48

 

Warrant agreement  between the Company and Intermark Partners Strategic Management, LLC  representing the Class III Warrant dated October 2, 2000. (10)

 

4.49

 

Form of Board Member  Non-statutory Stock Option Agreement issued under the 1997 Stock Option Plan  between the Company and the Board Members dated February 22, 2001. (12)

 

10.1

 

Employment  Agreement between the Company and Cherukuri Venkata Reddy Sastry dated April  14, 1996. (1)(3)

 

10.2

 

Employment Agreement  between the Company and Rukmini Cheruvanky dated April 14, 1996. (1)(3)

 

10.3

 

Employment Agreement  between the Company and Daniel McPeak dated April 1, 1997. (1)(3)

 

10.4

 

Employment Agreement  between the Company and Patricia Mayhew dated April 1, 1997. (1)(3)

 

10.5

 

Employment Agreement  between the Food Extrusion Montana, Inc. and Ike E. Lynch dated March 19,  1997. (1)(3)

 

10.6

 

Form of Indemnification  Agreement by and among the Company and certain officers and directors. (1)(3)

 

10.7

 

Agreement between the  Company and Wolcott Farms, Inc. dated March 1, 1997. (1)*

 

10.8

 

Stabilized Rice Bran  Processing, Sales and Marketing Agreement between Farmer's Rice and the  Company dated June 28, 1994. (1)*

 

10.9

 

Amendment dated April  16, 1996 to Stabilized Rice Bran Processing, Sales and Marketing Agreement  between Farmers' Rice Cooperative and the Company dated June 28, 1994. (1)

 

10.10

 

Stabilized Rice Bran  Processing, Sales and Marketing Agreement between California Pacific Rice  Milling, Ltd. and the Company dated August 1995. (1)*

 

10.11

 

Agreement between the  Company and Dry Creek Trading, Inc. dated February 1, 1997. (1)

 

10.12

 

Letter Agreement  between DuCoa, L.P. and the Company dated February 25, 1998. (1)*

 

10.13

 

Letter of Intent  between Monsanto Company and Company dated March 16, 1998. (1)*

 

10.14

 

First Amendment to  Letter Agreement between Monsanto Company and Company dated July 27, 1998.  (2)

 

10.15

 

Security Agreement  between CF Corporation, Food Extrusion Montana, Inc. and the Company dated  March 19, 1997. (1)

 

10.16

 

Promissory Note in  favor of Dominion Resources, Inc. in the amount of $1,750,000 dated July 30,  1996. (1)

 

10.17

 

Commercial Lease and  Deposit Receipt between Roebbelen Land Company and the Company dated December  23, 1991. (1)

 

10.18

 

First Amendment of  Lease between Roebbelen Land Company and the Company dated January 19, 1994.  (1)

 

10.19

 

Second Amendment of  Lease between Roebbelen Land Company and the Company dated July 11, 1996. (1)

 

10.20

 

Third Amendment of  Lease Agreement between Roebbelen Land Company and the Company dated February  1, 1998. (1)

 

10.21

 

Lease Agreement between  Roebbelen Land Company and the Company dated July 11, 1996. (1)

 

10.22

 

First Amendment of  Lease between Roebbelen Land Company and the Company dated September 1996.  (1)

 

10.23

 

Second Amendment of  Lease Agreement between Roebbelen Land Company and the Company dated February  1, 1998. (1)

 

10.26

 

Asset Purchase  Agreement between Centennial Foods, Inc., Food Extrusion Montana, Inc. and  the Company dated January 2, 1997. (1)

 

10.27

 

BioCeutics  License Agreement dated November 1, 1999. (3)

 

10.28

 

Executive  Employment Agreement for Daniel L. McPeak Jr. Executives Todd C. Crow and Ike  Lynch have similar employment agreements. (3)

 

10.29

 

Intermark  Partners, LLC Addendum to Letter of Intent to Invest, Agreement in Principal  dated November 16, 1999. (6)

 

10.30

 

Intermark  Partners, LLC Supplemental Agreement dated March 10, 2000. (7)

 

10.31

 

Consulting  Agreement between The RiceX Company, Inc. and JDK & Associates, Inc.  dated October 20, 1999. (3)(8)

 

10.32

 

Termination of  Consulting Agreement between The RiceX Company, Inc. and JDK &  Associates, Inc. dated February 2000. (3)(7)

 

10.33

 

Stabilized Rice  Bran Processing, Sales, and Marketing Agreement between Farmers’ Rice  Cooperative and the Company dated May 1, 1999. * (3) (6)

 

10.34

 

Stabilized Rice Bran  Processing, Sales, and Marketing Agreement between California Pacific Rice  Milling, Inc. and the Company effectively dated January 1, 2000. (7)

 

10.35

 

Licensing Agreement  between NutraStar, Inc. and the Company. (7)

 

10.36

 

Sublease Agreement  between the Company and NutraStar, Inc. effective November 1, 1999. (8)

 

10.37

 

Settlement and General  Release among three executive officers and The RiceXTM Company effective June  30, 2000. (8)

 

10.38

 

Employment  Agreement between Daniel L. McPeak, Sr. and the Company dated April 1, 2000.  (3)(10)

 

10.39

 

Consulting  Agreement executed as of February 22, 2001, by and between The RiceX Company  and Dr. Glenn H. Sullivan (3)(11)

 

10.40

 

Consulting  Agreement between JDK and Associates, Inc. and the Company executed as of  March 15, 2001.  (12)

 

16.1

 

Letter from  PricewaterhouseCoopers, LLP (formerly Coopers & Lybrand LLP) dated July  28, 1998. (2)

 

16.2

 

On August 17, 1999, The  RiceX Company dismissed PricewaterhouseCoopers; LLP (formerly Coopers and  Lybrand, LLP) dated July 28, 1998. (4)

 

16.3

 

On September 17, 1999,  Grant Thornton, LLP was engaged by the Company as its principal accountant to  audit the Company’s financial statements. (4)

 

16.4

 

Effective January 1,  2000, Grant Thornton, LLP, the independent accountants for The RiceX Company,  sold its Stockton and Sacramento, California offices to Moss Adams, LLP, an  accounting and consulting firm. Since the individuals performing services for  the Company at Grant Thornton are now in the employ of Moss Adams, effective  January 01, 2000, the Company dismissed Grant Thornton as its independent  accountants and engaged the services of Moss Adams to act as the Company’s  principal accountants to audit the Company’s financial statements. (4)

 

 

 

 

(1)

 

Previously filed as an exhibit to the Company's  Registration Statement No. 000-24285 filed with the Commission on May 18,  1998.

 

(2)

 

Previously filed as an exhibit to the Company’s  Amendment No. 2 to the Registration Statement No. 000-24285 filed with the  Commission on August 26, 1998.

 

(3)

 

Represents a management  contract or compensatory plan or arrangement.

 

(4)

 

Previously filed as  Item (4) on Form 8-K dated August 26, 1999, September 22, 1999, or January 7,  2000.

 

(5)

 

Previously filed as an  exhibit to the Company’s Form 10-KSB filed with the Commission on April 15,  1999.

 

(6)

 

Previously filed as an  exhibit to the Company’s Form 10-KSB filed with the Commission on March 30,  2000 and incorporated herein by reference.

 

(7)

 

Previously filed as an  exhibit to the Company’s Form 10-QSB filed with the Commission on May 12,  2000 and incorporated herein by reference.

 

(8)

 

Previously filed as an  exhibit to the Company’s Form 10-QSB filed with the Commission on August 18,  2000 and incorporated herein by reference.

 

(9)

 

Previously filed as an  exhibit to the Company’s Form 10-QSB filed with the Commission on November  14, 2000 and incorporated herein by reference.

 

(10)

 

Previously filed as an  exhibit to the Company’s Form 10-KSB filed with the Commission on April 17,  2001 and incorporated herein by reference.

 

(11)

 

Previously filed as an  exhibit to the Company’s Form 10-QSB filed with the Commission on May 15,  2001 and incorporated herein by reference.

 

(12)

 

Previously filed as an  exhibit to the Company’s Form 10-QSB filed with the Commission on August 10,  2001 and incorporated herein by reference.

 

(b) Reports on Form 8-K

 

                None

 

 

 

* Confidentialtreatment granted as to certain portions.

 

 

SIGNATURES

 

In accordance withthe requirements of the Exchange Act, the registrant caused this to be signedon its behalf by the undersigned, thereto duly authorized.

 

 

 

 

 

THE RICEX  COMPANY

 

 

 

 

Date:  November 13, 2001

 

By:

/s/ Daniel L.  McPeak

 

 

 

Daniel L. McPeak

 

 

 

Chairman of the  Board and

 

 

 

Chief Executive  Officer

 

 

 

 

Date:  November 13, 2001

 

By:

/s/ Todd C. Crow

 

 

 

Todd C. Crow

 

 

 

Vice President  of Finance and

 

 

 

Chief Financial  Officer

 

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