SECURITIES AND EXCHANGE COMMISSION
                                              WASHINGTON, D.C. 20549

                                                    FORM 10-KSB

[x]     Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange
 Act of 1934 [Fee Required]

For the fiscal year ended December 31, 2001

[ ]     Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 [No Fee Required]

For the transition period from                          to

Commission file number 0-27873

                                          SPACE LAUNCHES FINANCING, INC.
                           (Exact name of small business issuer in its charter)

                         Nevada                                      98-0178621
(State or other jurisdiction of incorporation or organization)  (I.R.S. Employer
                                                             Identification No.)

56 Quai Gustave Ador, Geneva, Switzerland                          CH-1206

           (Address of principal executive offices)                   (Zip Code)

Registrant's telephone number, including area code:               (949) 489-2400
                                                             -------------------

Securities registered pursuant to Section 12(b) of the Act:              None
                                                             ----------------

Securities registered pursuant to Section 12(g) of the Act:
 Common Stock, par value $.001
 -----------------------------

           Indicate  by check  mark  whether  the  registrant  (1) has filed all
reports  required to be filed by Section 13 or 15(d) of the Securities  Exchange
Act of 1934 during the preceding 12 months (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

           Check if there is no disclosure  of delinquent  filers in response to
Item 405 of Regulation S-B is not contained in this form, and no disclosure will
be contained,  to the best of  registrant's  knowledge,  in definitive  proxy or
information  statements  incorporated by reference in part III of this Form 10-K
or any amendment to this Form 10-K. [ X ]

           State issuer's revenues for its most recent fiscal year: None

           The aggregate market value of the voting stock held by non-affiliates
of the registrant as of December 31, 2002 was  $59,775,204  based on a last sale
price of $1.81 on April 23, 2002.

           The number of shares  outstanding  of the issuer's  classes of Common
Stock as of April 23, 2002:

Common Stock, $.001 Par Value - 53,710,864 Shares

                                    DOCUMENTS INCORPORATED BY REFERENCE:  NONE


<PAGE>



                                                      PART I

Item 1.   DESCRIPTION OF BUSINESS

 Space Launches  Financing,  Inc., a Nevada corporation,  formerly  Transcendent
Corporation (the "Company"), was incorporated on February 11, 1997.

 The  Company  was  originally  organized  to  develop,  manufacture  and market
specialty channels in Toronto,  Ontario Canada. This business was not successful
and in November  1997 the Company  changed its business  objectives to financing
satellite  launches.  Because of the lack of growth in this industry segment the
Company  determined  to seek for any other  business  opportunity.  In a Current
Report on Form 8-K dated February 5, 2002, the Company  reported the acquisition
of Poly Derm,  Inc.  Poly  Derm,  Inc.  has  acquired  technology  related to an
injectable substance,  to treat wrinkles and skin defects. The technology is the
subject of a pilot study and the University of Iowa Hospital and Clinics,  under
an FDA study.

Item 2.   DESCRIPTION OF PROPERTY

 Not applicable.


Item 3.   LEGAL PROCEEDINGS

 Not Applicable.

Item 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

 No matters  were  submitted  to a vote of  security  holders  during the fourth
quarter of the fiscal year ended December 31, 2001.

                                                         2

<PAGE>



                                                      PART II


Item 5.   MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
          MATTERS

         (a) Market Information

         The Company's  Common Stock has been listed on the NASD OTC  Electronic
Bulletin Board sponsored by the National Association of Securities Dealers, Inc.
under the symbol "SPCL" since 1997. There has been limited trading of the Common
Stock. On April 23, 2002, the last sale price of the Common Stock was $1.81.

         (b)  Holders

         As of April 23, 2002, there were  approximately  120 holders of Company
common stock and one holder of Series A preferred stock.

         (c) Dividends

         The Company has not paid any dividends on its common stock. The Company
currently intends to retain any earnings for use in its business,  and therefore
does not anticipate paying cash dividends in the foreseeable future.


Item 6.      MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

             The Company has had limited operations to date.  In November
1997 the Company raised $100,000 in
an offering of common stock.  Subsequent to the end of fiscal 2001, the
Company effected the acquisition of Poly
Derm, Inc. See "Item 1 - Description of Business."

Item 7.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

            The consolidated  financial statements of the Company required to be
included in Item 7 are appended to this Annual  Report  following  the signature
page.

Item 8.     CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
            FINANCIAL DISCLOSURE

            The Company's former independent  accountant Thurman, Shaw & Co., LC
("Thurman,  Shaw")  resigned from that capacity on September 4, 2001. The report
by Thurman,  Shaw on the  financial  statements  of the Company  dated March 16,
2001,  including  balance  sheets  as of  December  31,  2000  and  1999 and the
statements of operations,  cash flows and statement of stockholders'  equity for
the years ended  December 31, 2000 and 1999 and the period  inception  (February
11,  1997) to  December  31,  2000  did not  contain  an  adverse  opinion  or a
disclaimer  of opinion,  or was qualified or modified as to  uncertainty,  audit
scope or  accounting  principles.  During  the period  covered by the  financial
statements through the date of resignation of the former accountant,  there were
no  disagreements  with  the  former  accountant  on any  matter  of  accounting
principles or practices,  financial statement  disclosure,  or auditing scope or
procedure. On October 4, 2001 the Company engaged Pritchett, Siler & Hardy, P.C.
as its new independent accountants.  Prior to the engagement of Pritchett, Siler
& Hardy, P.C., the Company did not consult with Pritchett,  Siler & Hardy, P.C.,
on the application of accounting  principles to any specific transaction nor the
type of  audit  opinion  that  might  be  rendered  on the  Company's  financial
statements.  Thurman,  Shaw was provided by the  disclosure  set forth above and
provided the Company  with a letter to the effect that it did not disagree  with
the above statements as far as they related to Thurman,  Shaw. A copy of Thurman
Shaw's letter is filed as an exhibit to the Company's Current Report on Form 8-K
dated September 4, 2001.

                                                         3

<PAGE>



                                                     PART III

Item 9.     DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
            COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT.

Directors and Executive Officers

            The members of the Board of Directors of the Company serve until the
next  annual  meeting  of  stockholders,  or until  their  successors  have been
elected. The officers serve at the pleasure of the Board of Directors.
Information  as to the  directors  and  executive  officers of the Company is as
follows:

Name                                   Age         Position

Philip Faris                            37          President and Director

Luc Badel                               64          Secretary and Director

      Mr. Faris was elected to the Board in February 2002 and Mr. Badel in 2001.

Item 10. EXECUTIVE COMPENSATION

          No  compensation  in any form  was paid  through  December  31,  2001.
Directors currently receive no compensation for their duties as directors.

Item 11.   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth information  relating to the beneficial ownership
of Company  common stock by those persons  beneficially  holding more than 5% of
the Company  capital stock, by the Company's  directors and executive  officers,
and by all of the Company's  directors and  executive  officers as a group.  The
address of each officer and director is care of the Company.
<TABLE>
<CAPTION>
                                                                                   Percentage
               Name of                           Number of                       of Outstanding
             Stockholder                      Shares Owned(1)                     Common Stock

<S>                                               <C>                                   <C>
Philip Faris                                   --                                           --

Luc Badel                                                --                                 --

Patricia Jean Jenkins                             6,806,580                              12.7%

Michael Magliochetti                              6,806,580                              12.7%

Steve Preiss                                      1,701,645                              12.7%

Liz Hill Enterprises, Ltd.                        5,371,084                              10.0%

Sangate Enterprises, Inc.(2)                     10,400,000                              16.9%
Road Town-Pasea Estate
P.O. Box 3149
Tortola
British Virgin Islands

Operadora Financiera de Inversiones
4 Comercio S.A.
Via Espana y Calle Columbia
Panama                                                  (3)                                (3)

                                                         4
</TABLE>

<PAGE>





All officers and
directors as a group
(2 persons) --                                           --

(1)     Unless  otherwise  noted below,  the Company  believes  that all persons
        named in the table have sole voting and investment power with respect to
        all shares of Common  Stock  beneficially  owned by them.  For  purposes
        hereof, a person is deemed to be the beneficial owner of securities that
        can be acquired by such person  within 60 days from the date hereof upon
        the  exercise of warrants or options or the  conversion  of  convertible
        securities.  Each beneficial owner's percentage  ownership is determined
        by assuming that any such warrants,  options or  convertible  securities
        that are held by such  person  (but not those held by any other  person)
        and which are exercisable within 60 days from the date hereof, have been
        exercised.
(2)  Includes options to purchase 8,000,000 shares at a price of $.50 per share.
(3)     Does not include 1,000 shares of Series A Preferred Stock, which give
 this holder the right to elect two-thirds
        of the Company's board of directors.

Item 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

            Not Applicable.


                                                         5

<PAGE>



                                                      PART IV


Item 13.    EXHIBITS AND REPORTS ON FORM 8-K

       (a) Exhibits.  The following exhibits of the Company are included herein.


    Exhibit No.            Document Description

        2.                 Plan of purchase, sale, reorganization, arrangement,
 liquidation or succession.

                           2.1.     Agreement and Plan of Reorganization, dated
 January 20, 2002, between the
                                    Registrant and PolyDerm, Inc.(1)

        3.                 Articles of Incorporation and Bylaws

                           3.1.     Articles of Incorporation(2)
                           3.2      Articles of Amendment(3)
                           3.3      Bylaws(4)

        4.                 Instruments defining the rights of security holders

                           4.1      Option Agreement(5)

        16.                Letter on change in certifying accountant(6)




(1)      Incorporated by reference to such exhibit as filed with the Company's
Current Report on Form 8-K dated
         February 5, 2002.
(2)      Incorporated by reference to exhibit 2.1 as filed with the Company's
registration statement on Form 10-SB,
         File No. 0-27873.
(3)      Incorporated by reference to exhibit 2.2 as filed with the Company's
registration statement on Form 10-SB,
         File No. 0-27873.
(4)      Incorporated by reference to exhibit 2.3 as filed with the Company's
 registration statement on Form 10-SB,
         File No. 0-27873.
(5)      Incorporated by reference to exhibit 3.1 as filed with the Company's
registration statement on Form 10-SB,
         File No. 0-27873.
(6)      Incorporated by reference to such exhibit as filed with the Company's
 Current Report on Form 8-K dated
         September 4, 2001.


        (b)                Reports on Form 8-K.

                           A Current Report on Form 8-K was filed to report
 the change of auditors. This Report is
described under Item 8 of this Annual Report.


                                                         6

<PAGE>



                                                    SIGNATURES

        Pursuant to the  requirements  of Section 13 or 15(d) of the  Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized April 23, 2002.


                                                  SPACE LAUNCHES FINANCING, INC.


                                                       By: /s/Philip Faris
                                                               President

        Pursuant to the  requirements  of the  Securities  Exchange Act of 1934,
this  report has been  signed  below by the  following  persons on behalf of the
Registrant and in the capacities on April 23, 2002.



By:     /s/ Philip Faris                             President, Chief Financial
                                                        Officer and Director


By:     /s/ Luc Badel                                Secretary and Director


                                                         7

<PAGE>


















                         SPACE LAUNCHES FINANCING, INC.
                          [A Development Stage Company]

                              FINANCIAL STATEMENTS

                                DECEMBER 31, 2001



























<PAGE>

<TABLE>
<CAPTION>

                                          SPACE LAUNCHES FINANCING, INC.
                                           [A Development Stage Company]




                                    CONTENTS

                                                                                                        PAGE

<S>                                                                                                         <C>
               --     Independent Auditors' Report                                                          1


                      Balance Sheet, December 31, 2001                                                     2


                      Statements of Operations, for the years ended December 31,
                         2001 and  2000 and for the  period  from  inception  on
                         February 11, 1997 through
                         December 31, 2001                                                                 3


               --     Statement of Stockholders' Equity, from inception
                         on February 11, 1997 through December 31, 2001                                4 - 5


                      Statements of Cash Flows, for the years ended December 31,
                         2001 and  2000 and for the  period  from  inception  on
                         February 11, 1997 through
                         December 31, 2001                                                                 6

              --     Notes to Financial Statements                                                    7 - 10

</TABLE>

<PAGE>



10

                                                        - -





                                           INDEPENDENT AUDITORS' REPORT


Board of Directors
SPACE LAUNCHES FINANCING, INC.
Geneva, Switzerland

We have audited the accompanying balance sheet of Space Launches Financing, Inc.
[a development stage company] at December 31, 2001 and the related statements of
operations,  stockholders' equity and cash flows for the year ended December 31,
2001 and for the period from inception on February 11, 1997 through December 31,
2001.  These  financial  statements  are  the  responsibility  of the  Company's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements  based on our  audit.  The  financial  statements  of Space  Launches
Financing,  Inc.  [a  development  stage  company]  as of and for the year ended
December 31, 2000 were audited by other auditors  whose report,  dated March 16,
2001,  expressed  an  unqualified  opinion on those  statements.  The  financial
statements  as of December 31, 2000 reflect an  accumulated  deficit of $28,570.
The other auditors' report has been furnished to us, and our opinion, insofar as
it relates to the amounts  included for such prior  periods,  is based solely on
the report of the other auditors.

We conducted our audit in accordance with generally accepted auditing standards.
Those standards  require that we plan and perform the audit to obtain reasonable
assurance   about  whether  the  financial   statements  are  free  of  material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.

In our  opinion,  based on our audit and the report of the other  auditors,  the
financial statements audited by us present fairly, in all material respects, the
financial  position  of Space  Launches  Financing,  Inc. [a  development  stage
company] as of December 31, 2001 and the results of its  operations and its cash
flows for the year ended  December 31, 2001 and for the period from inception on
February  11, 1997  through  December  31,  2001 in  conformity  with  generally
accepted accounting principles.

The accompanying  financial  statements have been prepared  assuming the Company
will  continue  as a going  concern.  As  discussed  in Note 5 to the  financial
statements,  the Company has no on-going  operations,  raising substantial doubt
about the ability of the Company to  continue as a going  concern.  Management's
plans in regards to these  matters are also  described in Note 5. The  financial
statements do not include any adjustments  that might result from the outcome of
these uncertainties.




PRITCHETT, SILER & HARDY, P.C.

March 27, 2002
Salt Lake City, Utah


<PAGE>
<TABLE>
<CAPTION>


                         SPACE LAUNCHES FINANCING, INC.
                          [A Development Stage Company]

                                  BALANCE SHEET


                                     ASSETS


                                                                                                    December 31,
                                                                                                        2001
                                                                                                        -----------
CURRENT ASSETS:
<S>                                                                                              <C>
     Cash                                                                                        $          111,127
                                                                                                        -----------
               Total Current Assets                                                                         111,127
                                                                                                        -----------
                                                                                                 $          111,127
                                                                                                      -------------


                      LIABILITIES AND STOCKHOLDERS' EQUITY


CURRENT LIABILITIES:
     Accounts payable                                                                            $               79
                                                                                                        -----------
               Total Current Liabilities                                                                         79
                                                                                                        -----------

STOCKHOLDERS' EQUITY:
     Preferred stock, $.00001 par value, 1,000,000 shares
       authorized, 1,000 shares issued and outstanding                                                            0
     Common stock, $.00001 par value, 99,000,000 shares
       authorized, 24,069,884 shares issued and outstanding                                                     241
     Capital in excess of par value                                                                         141,379
     Deficit accumulated during the development stage                                                       (30,572)
                                                                                                        -----------
               Total Stockholders' Equity                                                                   111,048
                                                                                                        -----------
                                                                                                 $          111,127
                                                                                                      -------------






</TABLE>





                        The  accompanying  notes  are an  integral  part of this
financial statement.


<PAGE>

<TABLE>
<CAPTION>

                         SPACE LAUNCHES FINANCING, INC.
                          A Development Stage Company]

                            STATEMENTS OF OPERATIONS



                                                                              For the                From Inception
                                                                            Years ended              on February 11,
                                                                            December 31,              1997 Through
                                                                     __________________________       December 31,
                                                                       2001             2000              2001
                                                                     ------------      -----------       ----------

<S>                                                              <C>                <C>              <C>
REVENUE                                                          $              -   $            -   $            -

EXPENSES:

     General and administrative                                             6,508              893           51,943
                                                                     ------------      -----------       ----------
LOSS BEFORE OTHER INCOME                                                   (6,508)            (893)         (51,943)

OTHER INCOME:
     Interest income                                                        4,506            6,523           21,371
                                                                     ------------      -----------       ----------
INCOME (LOSS) BEFORE INCOME TAXES                                          (2,002)           5,630          (30,572)

CURRENT TAX EXPENSE                                                             -                -                -

DEFERRED TAX EXPENSE                                                            -                -                -
                                                                     ------------      -----------       ----------

NET INCOME (LOSS)                                                $         (2,002)  $        5,630   $      (30,572)
                                                                     ------------      -----------       ----------

EARNINGS (LOSS) PER COMMON SHARE                 $       (.00)   $          .00     $        (.00)
                                                                     ------------      -----------       ----------

</TABLE>
















                      The  accompanying  notes  are an  integral  part of  these
financial statements.

<PAGE>

<TABLE>
<CAPTION>

                         SPACE LAUNCHES FINANCING, INC.
                          [A Development Stage Company]

                        STATEMENT OF STOCKHOLDERS' EQUITY

                 FROM THE DATE OF INCEPTION ON FEBRUARY 11, 1997

                            THROUGH DECEMBER 31, 2001


                                                                                                                Deficit
                                                                                                              Accumulated
                                             Preferred Stock              Common Stock         Capital in     During the
                                            ____________________       ______________________   Excess of     Development
                                          Shares        Amount        Shares        Amount      Par Value        Stage
                                          ---------    ---------     -----------    ---------    ---------    -----------
BALANCE, February 11, 1997                        -  $         -               -  $         -  $         -  $           -

Issuance of 42,000 shares of common
  stock for cash of $2,100, or $.05 per
<S>                                         <C>          <C>             <C>               <C>      <C>
  share, February 11, 1997                        -            -          42,000            1        2,099              -

Issuance of 1,840 shares of common
  stock for cash of $30,826, or
  $16.75326087 per share, April 16, 1997          -            -           1,840            0       30,826              -

Issuance of 2,000 shares of common
  stock for cash of $5,000, or $2.50 per
  share, July 25, 1997                            -            -           2,000            0        5,000              -

Issuance of 24,000 shares of common
  stock for debt of $3,694, or $.15391667
  per share, August 1, 1997                       -            -          24,000            0        3,694              -

Issuance of 24,000,000 shares of
  common stock for cash of $100,000, or
  $.0041667 per share, net of offering
  costs of $10,000, August 1, 1997                -            -      24,000,000          240       89,760              -

Issuance of 8,000,000 options to
  purchase common stock for services
  rendered valued at $10,000, or $.00125
  per option, August 1, 1997                      -            -               -            -       10,000              -

Issuance of 1,000  shares of Series A  preferred  stock for  business  plans and
  contact names valued at $.01, or
  $.00001 per share, August 1, 1997           1,000            0               -            -           (0)             -

Issuance of rounding shares                       -            -              44            0           (0)             -

Net income (loss) for the period ended
  December 31, 1997                               -            -               -            -            -        (42,301)
                                          ---------    ---------     -----------    ---------    ---------    -----------
BALANCE, December 31, 1997                    1,000            0      24,069,884          241      141,379        (42,301)

Net income (loss) for the year ended
  December 31, 1998                               -            -               -            -            -          4,209

                                   [Continued]

<PAGE>


                         SPACE LAUNCHES FINANCING, INC.
                          [A Development Stage Company]

                        STATEMENT OF STOCKHOLDERS' EQUITY

                 FROM THE DATE OF INCEPTION ON FEBRUARY 11, 1997

                            THROUGH DECEMBER 31, 2001

                                   [CONTINUED]


                                                                                                                Deficit
                                                                                                              Accumulated
                                             Preferred Stock              Common Stock         Capital in     During the
                                            ____________________       ______________________   Excess of     Development
                                          Shares        Amount        Shares        Amount      Par Value        Stage
                                          ---------    ---------     -----------    ---------    ---------    -----------
BALANCE, December 31, 1998                    1,000            0      24,069,884          241      141,379        (38,092)

Net income (loss) for the year ended
  December 31, 1999                               -            -               -            -            -          3,892
                                          ---------    ---------     -----------    ---------    ---------    -----------
BALANCE, December 31, 1999                    1,000            0      24,069,884          241      141,379        (34,200)

Net income (loss) for the year ended
  December 31, 2000                               -            -               -            -            -          5,630
                                          ---------    ---------     -----------    ---------    ---------    -----------
BALANCE, December 31, 2000                    1,000            0      24,069,884          241      141,379        (28,570)

Net income (loss) for the year ended
  December 31, 2001                               -            -               -            -            -         (2,002)
                                          ---------    ---------     -----------    ---------    ---------    -----------
BALANCE, December 31, 2001                    1,000  $         0      24,069,884  $       241  $   141,379  $     (30,572)
                                           --------     --------      ----------     --------     --------     ----------






</TABLE>



















                       The  accompanying  notes  are an  integral  part  of this
financial statement.


<PAGE>

<TABLE>
<CAPTION>

                         SPACE LAUNCHES FINANCING, INC.
                          [A Development Stage Company]

                            STATEMENTS OF CASH FLOWS


                                                                               For the               From Inception
                                                                             Year ended              on February 11,
                                                                            December 31,              1997 Through
                                                                     __________________________       December 31,
                                                                       2001             2000              2001
                                                                     ------------      -----------       ----------
Cash Flows Provided by Operating Activities:

<S>                                                              <C>                <C>              <C>
   Net Income (loss)                                             $         (2,002)  $        5,630   $      (30,572)
   Adjustments to reconcile net income (loss) to net
     cash used by operating activities:
     Changes in assets and liabilities:
        Increase in accounts payable                                           79                -               79
                                                                     ------------      -----------       ----------
                Net Cash Provided (Used) by Operating
                  Activities                                               (1,923)           5,630          (30,493)
                                                                     ------------      -----------       ----------

Cash Flows Provided by Investing Activities                                     -                -                -
                                                                     ------------      -----------       ----------
                Net Cash Used by Investing Activities                           -                -                -
                                                                     ------------      -----------       ----------

Cash Flows Provided by Financing Activities:
   Proceeds from sale of common stock                                           -                -          141,620
                                                                     ------------      -----------       ----------
                Net Cash Provided by Financing Activities                       -                -          141,620
                                                                     ------------      -----------       ----------

Net Increase (Decrease) in Cash                                            (1,923)           5,630          111,127

Cash at Beginning of Period                                               113,050          107,420                -
                                                                     ------------      -----------       ----------
Cash at End of Period                                            $        111,127   $      113,050   $      111,127
                                                                     ------------      -----------       ----------

Supplemental Disclosures of Cash Flow Information:

   Cash paid during the period for:
     Interest                                                    $              -   $            -   $            -
     Income taxes                                                $              -   $            -   $            -
</TABLE>

Supplemental Schedule of Noncash Investing and Financing Activities:

     For the year ended December 31, 2001:
         None

     For the year ended December 31, 2000:
         None




                      The  accompanying  notes  are an  integral  part of  these
financial statements.


<PAGE>


                         SPACE LAUNCHES FINANCING, INC.
                          [A Development Stage Company]

                          NOTES TO FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Organization - Space Launches Financing, Inc. ("the Company") was organized
     under the laws of the State of Nevada on February 11, 1997 as  Transcendent
     Corporation  to  develop,  manufacture  and market a variety  of  specialty
     chemicals to  industrial,  commercial and retail  clients.  On November 26,
     1997, the Company changed its name from  Transcendent  Corporation to Space
     Launches  Financing,  Inc. The Company is  considered a  development  stage
     company as defined in Statement of Financial  Accounting  Standards  No. 7.
     The Company will be very dependent on the skills,  talents and abilities of
     management  to  successfully  implement  its  business  plan.  Due  to  the
     Company's  lack of capital,  it is likely that the Company will not be able
     to  compete  with  larger  and  more  experienced   entities  for  business
     opportunities  which  are  lower  risk  and are  more  attractive  for such
     entities.  Business opportunities in which the Company may participate will
     likely be highly risky and  speculative.  Since  inception,  the  Company's
     activities have been limited to organizational matters. The Company has, at
     the present time, not paid any dividends and any dividends that may be paid
     in the future will depend upon the  financial  requirements  of the Company
     and other relevant factors.

     Cash and Cash  Equivalents  - For purposes of the  statement of cash flows,
     the Company  considers all highly liquid debt investments  purchased with a
     maturity of three months or less to be cash equivalents.

     Earnings (Loss) Per Share - The computation of earnings (loss) per share is
     based on the  weighted  average  number of shares  outstanding  during  the
     period  presented in  accordance  with  Statement  of Financial  Accounting
     Standards No. 128, "Earnings Per Share" [See Note 6].

     Accounting   Estimates  -  The  preparation  of  financial   statements  in
     conformity  with  generally   accepted   accounting   principles   requires
     management  to make  estimates  and  assumptions  that affect the  reported
     amounts of assets and liabilities, the disclosures of contingent assets and
     liabilities  at the  date of the  financial  statements,  and the  reported
     amount of revenues and expenses during the reported period.  Actual results
     could differ from those estimated.

     Recently Enacted Accounting  Standards - Statement of Financial  Accountin
  Standards ("SFAS") No. 141, "Business
     Combinations",  SFAS No.  142,  "Goodwill  and Other  Intangible  Assets",
  SFAS No.  143,  "Accounting  for Asset
     Retirement Obligations",  and SFAS No. 144, "Accounting for the Impairment
 or Disposal of Long-Lived Assets", were
     recently  issued.  SFAS No. 141, 142, 143 and 144 have no current
applicability to the Company or their effect on
     the financial statements would not have been significant.

     Restatement  - On  November  27,  1997,  the  Company  effected a 1-for-200
     reverse stock split.  Subsequently,  the Company effected a 4-for-1 forward
     stock split. The financial  statements have been restated,  for all periods
     presented, to reflect these stock splits [See Notes 2 and 7].



<PAGE>


                         SPACE LAUNCHES FINANCING, INC.
                          [A Development Stage Company]

                          NOTES TO FINANCIAL STATEMENTS

NOTE 2 - CAPITAL STOCK

     Preferred Stock - The Company has authorized  1,000,000 shares of preferred
     stock,  $.00001 par value,  with such rights,  preferences and designations
     and to be issued in such series as determined by the Board of Directors. On
     August 1, 1997, the Company issued 1,000 shares of Series A preferred stock
     for business  plans and contact names valued at $.01, or $.00001 per share.
     Each  share of  Series A  preferred  stock is  entitled  to one vote in the
     election of the Company's  directors,  just as with common stock shares. By
     unanimous  vote,  the  holders  of  Series  A  preferred  stock  may  elect
     two-thirds  of the  Company's  Board of  Directors.  Each share of Series A
     preferred  stock  is  entitled  to  $.01,  if  available,  in the  event of
     liquidation,  dissolution, or winding up of the Company. Series A preferred
     shareholders  have the  right of first  refusal  should  shares of Series A
     preferred stock be sold. The Company had 1,000 shares of Series A preferred
     stock issued and outstanding at December 31, 2001 [See Note 7].

     Common Stock - The Company has authorized 99,000,000 shares of common stock
     with a par value of $.00001.  On February 11, 1997, in connection  with its
     organization,   the  Company   issued  42,000  shares  of  its   previously
     authorized,  but unissued common stock.  The shares were issued for cash of
     $2,100 (or $.05 per share).

     On April 16,  1997,  the  Company  issued  1,840  shares of its  previously
     authorized,  but unissued common stock.  The shares were issued for cash of
     $30,826 (or $16.75326087 per share).

     On July 25,  1997,  the  Company  issued  2,000  shares  of its  previously
     authorized,  but unissued common stock.  The shares were issued for cash of
     $5,000 (or $2.50 per share).

     On August 1, 1997,  the  Company  issued  24,000  shares of its  previously
     authorized,  but unissued common stock.  The shares were issued for cash of
     $3,694 (or $.15391667 per share).

     On August 1, 1997,  in  connection  with a private  offering,  the  Company
     issued 24,000,000 shares of its previously authorized,  but unissued common
     stock. The shares were issued for cash of $100,000 (or $.004 per share). In
     connection  with the private  offering,  the Company also issued  8,000,000
     options to purchase  common stock for services  rendered valued at $10,000,
     which has been  accounted for as a stock offering costs and has been netted
     against the proceeds.

     Stock Options - On August 1, 1997, in connection with a private offering of
     common stock, the Company issued 8,000,000 options to purchase common stock
     at $.50 per share for services  rendered valued at $10,000,  or $.00125 per
     option.  The  options  vested  March 18, 1998 and are  exercisable  through
     December 31, 2004.

     Stock Split - On November 27, 1997, the Company effected a 200 to 1 reverse
     stock split and issued 44 rounding  shares.  The financial  statements have
     been restated, for all periods presented, to reflect this stock split.



<PAGE>


                         SPACE LAUNCHES FINANCING, INC.
                          [A Development Stage Company]

                          NOTES TO FINANCIAL STATEMENTS

NOTE 3 - RELATED PARTY TRANSACTIONS

     Management  Compensation  - For the years ended December 31, 2001 and 2000,
     the Company did not pay any  compensation to any officer or director of the
     Company.

     Office  Space - The  Company has not had a need to rent  office  space.  An
     officer/shareholder  of the  Company  is  allowing  the  Company to use his
     offices as a mailing address, as needed, at no expense to the Company.

NOTE 4 - INCOME TAXES

     The Company  accounts  for income  taxes in  accordance  with  Statement of
     Financial  Accounting Standards No. 109 "Accounting for Income Taxes". SFAS
     109  requires  the Company to provide a net  deferred  tax  asset/liability
     equal to the expected  future tax  benefit/expense  of temporary  reporting
     differences  between  book and tax  accounting  methods  and any  available
     operating loss or tax credit carryforwards.

     The Company has  available  at December  31, 2001,  unused  operating  loss
     carryforwards of approximately  $30,600 which may be applied against future
     taxable  income and which expire in various years through 2021.  The amount
     of and  ultimate  realization  of the  benefits  from  the  operating  loss
     carryforwards  for income tax purposes is dependent,  in part, upon the tax
     laws in effect,  the  future  earnings  of the  Company,  and other  future
     events,  the  effects  of  which  cannot  be  determined.  Because  of  the
     uncertainty  surrounding  the  realization  of the loss  carryforwards  the
     Company has  established a valuation  allowance  equal to the tax effect of
     the loss  carryforwards  and,  therefore,  no  deferred  tax asset has been
     recognized  for the loss  carryforwards.  The net  deferred  tax assets are
     approximately  $10,400  and  $9,700  as of  December  31,  2001  and  2000,
     respectively,  with an  offsetting  valuation  allowance of the same amount
     resulting  in a change in the  valuation  allowance of  approximately  $700
     during the year ended December 31, 2001.

NOTE 5 - GOING CONCERN

     The accompanying financial statements have been prepared in conformity with
     generally accepted accounting principles, which contemplate continuation of
     the  Company as a going  concern.  However,  the  Company  has no  on-going
     operations,  raising  substantial doubt about the ability of the Company to
     continue as a going  concern.  In this regard,  management  is proposing to
     raise any necessary  additional  funds not provided by  operations  through
     loans or through additional sales of its common stock or through a possible
     business  combination with another company.  There is no assurance that the
     Company will be successful in raising this additional  capital or achieving
     profitable  operations.   The  financial  statements  do  not  include  any
     adjustments that might result from the outcome of these uncertainties.




<PAGE>


                         SPACE LAUNCHES FINANCING, INC.
                          [A Development Stage Company]

                          NOTES TO FINANCIAL STATEMENTS

NOTE 6 - EARNINGS (LOSS) PER SHARE

     The following data shows the amounts used in computing  earnings (loss) per
share:
<TABLE>
<CAPTION>


                                                                               For the               From Inception
                                                                            Years ended              on February 11,
                                                                            December 31,              1997 Through
                                                                         _________________________    December 31,
                                                                       2001               2000            2001
                                                                     ------------      -----------       ----------

         Net income (loss) available to
<S>                                                              <C>                <C>              <C>
         common shareholders (numerator)                         $        (2,002)   $        5,630   $      (30,572)
                                                                     ------------      -----------       ----------
         Weighted average number of common shares
         outstanding used in earnings (loss) per share
         for the period (denominator)                                  24,069,884       24,069,884       21,766,878
                                                                     ------------      -----------       ----------
</TABLE>

     At December 31, 2001 the Company had  8,000,000  outstanding  options which
     were not used in the computation of earnings (loss) per share because their
     effect would be  anti-dilutive.  Dilutive earnings (loss) per share was not
     presented,  as the Company had no common  equivalent shares for all periods
     presented that would affect the computation of diluted  earnings (loss) per
     share.

NOTE 7 - SUBSEQUENT EVENTS

     Agreement  and Plan of  Reorganization  - On February 5, 2002,  the Company
     entered into an agreement and plan of  reorganization  with PolyDerm,  Inc.
     The agreement  calls for the Company to issue  29,640,969  shares of common
     stock with 24,069,884 shares issued to PolyDerm,  Inc. shareholders for all
     2,652,200  shares of common  stock of  PolyDerm,  Inc.  and with  5,571,085
     shares issued to consultants. The Company will also pay $100,000 and sign a
     $50,000  note payable to the  consultants.  The note payable is expected to
     accrue  interest at 6% per annum and be due on demand.  The agreement  also
     calls for the Company to cancel 1,000  shares of Series A preferred  stock,
     change  its name to  PolyDerm,  Inc.,  and effect a 4-for-1  forward  stock
     split.  The  financial  statements  have  been  restated,  for all  periods
     presented,  to reflect this stock split. In connection with the merger, the
     Company's   officer  resigned  and  new  officers  were  appointed.   Final
     consummation of the merger is not guaranteed.