UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C. 20549 

FORM 10-QSB 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. 

| For the quarterly period ended:
June 30 2002
Commission File Number:
000-27793
 

 
**ELECTRONIC SYSTEMS TECHNOLOGY, INC.(A Washington Corporation)

I.R.S. Employer    Identification no.
91-1238077
 

415 N. Quay St., #4Kennewick WA 99336
Registrant’s telephone number, including area code:(509) 735-9092
 

Check whether the issuer (1) has filed all reports required to be filed by Section 13or 15(d) of the Exchange Act during the past 12 months (or for such shorter period thatthe registrant was required to file such reports), and (2) has been subject to such filingrequirements for the past 90 days. Yes [ X ] No [ ] 

The number of shares outstanding of common stock as of June 30, 2002 was 5,098,667. 
**PART I - FINANCIAL INFORMATION**Item 1. FINANCIAL STATEMENTS. 

ELECTRONIC SYSTEMS TECHNOLOGY, INC.(as prepared by Management) (Unaudited) Six Months Ended
June 30,    2002
June 30,    2001Sales
$ 999,700
$ 421,728Other Revenues
86,365
108,010Gross Profit
562,975
179,617 Net Income (Loss) Before Taxes 
211,668
(122,352)Net Income (Loss) After Taxes
141,275
(80,548) Earnings (Loss) Per Share Before    TaxesBasic
$ 0.037
$ ( 0.02)Diluted
0.037
( 0.02) Earnings (Loss) Per Share After    TaxesBasic
$ 0.025
$ ( 0.015)Diluted
0.025
( 0.015) Weighted Average Shares    Outstanding (Basic)Primary
5,619,311
5,654,530Diluted
5,633,667
5,654,530 Total Assets
$ 2,687,092
$ 2,326,467 Long-Term Debt and Capital Lease    Obligations
$ 0
$ 0 Shareholders' Equity
$ 2,451,425
$ 2,239,898 Shareholders' Equity Per Share
$ 0.48
$ 0.44 Working Capital
$ 2,274,650
$ 2,051,135 Current Ratio
10.7:1
24.7:1 Equity To Total Assets
91%
96%
 

 

 

 
**ELECTRONIC SYSTEMS TECHNOLOGY, INC. BALANCE SHEET (as prepared by Management) (Unaudited) ****
 
 
June 30, 2002
Dec. 31, 2001ASSETSCURRENT ASSETS Cash and cash equivalents
$ 1,803,228
$ 1,513,592 Accounts Receivable, net of    allowance    for uncollectibles
116,062
158,674Inventory
576,602
531,599Accrued Interest
1,788
1,243Prepaid Expenses
12,637
7,252Provision for Federal Income Taxes
0
6,633Total Current Assets
$ 2,510,317
$ 2,218,993 PROPERTY & EQUIPMENT net of    Depreciation of $378,010 at    June 30, 2002 and $359,018    At Dec. 31, 2001
161,288
164,989 OTHER ASSETS
15,487
17,690TOTAL ASSETS
$ 2,687,092
$ 2,401,672 LIABILITIES & STOCKHOLDERS' EQUITY CURRENT LIABILITIESAccounts Payable
$ 70,732
$ 53,384Refundable Deposits
55,320
--Deferred Tax Liability 
17,283
17,283Accrued Liabilities
28,572
20,855 Federal Income Taxes Payable
63,760
0Total Current Liabilities 
235,667
91,522 STOCKHOLDERS' EQUITY    Common Stock, $.001 Par Value    50,000,000 Shares Authorized    5,098,667 Shares Issued And Outstanding 
 

 

$ 5,099
 

 

$ 5,099 Additional Paid-in Capital
945,734
945,734 Retained Earnings
1,500,592
1,359,317 
$ 2,451,425
$ 2,310,150 TOTAL LIABILITIES AND    STOCKHOLDERS' EQUITY
$ 2,687,092
$ 2,401,672 
(See "Notes to Financial Statements")

 

 

 
**ELECTRONIC SYSTEMS TECHNOLOGY, INC. STATEMENT OF OPERATIONS(as prepared by Management) (Unaudited) 
 
Three Months    Ended
Six Months Ended
June 30, 2002
June 30, 2001
June 30, 2002
June 30, 2001 SALES
$513,952
$211,007
$999,700
$421,728COST OF SALESBeginning Inventory
$ 578,671
$ 615,992
$ 531,599
$ 561,946Purchases and Allocated Costs
242,433
148,774
481,728
321,943 
821,104
764,766
1,013,327
883,889Ending Inventory
576,602
641,778
576,602
641,778Total Cost of Sales
$ 244,502
$ 122,988
$ 436,725
$ 242,111Gross Profit
$ 269,450
$ 88,019
$ 562,975
$ 179,617 OPERATING EXPENSESFinance/Administration
$ 52,608
$ 38,917
$ 104,188
$ 85,712Research & Development
44,556
45,707
84,287
83,250Marketing
77,340
68,506
139,033
125,869Customer Service
22,487
32,428
$ 46,097
$ 56,168Total Operating Expense
$ 196,991
$ 185,558
$ 373,605
$ 350,999OPERATING INCOME (LOSS)
$ 72,459
$ (97,539)
$ 189,370
$ (171,382) Other Income (expenses)Interest Income
$ 7,082
$ 14,380
$ 13,693
$ 33,270Loss on Asset Disposal
0
(1,056)
0
( 1,059)Engineering Services
23,745
40,799
72,672
74,740Engineering Support
(21,465)
(32,305)
(64,067)
(57,920)Net Other Income (expense)
$ 9,362
$ 21,817
$ 22,298
$ 49,030 NET INCOME (LOSS) BEFORE TAX
$ 81,821
$ (75,722)
211,668
(122,352)Provision For Income Tax
(26,245)
25,745
(70,393)
41,804 NET INCOME (LOSS)
$ 55,576
$ (49,977)
$ 141,275
$ (80,548) Basic Earnings (Loss) Per Share    Before Tax
$ 0.015
$ ( 0.015)
$ 0.037
$ ( 0.02)Basic Earnings (Loss) Per Share    After Tax
$ 0.01
$( 0.009)
$ 0.025
$ ( 0.015)Diluted Earnings (Loss) Per Share    Before Tax
$ 0.015
$( 0.015)
$ 0.037
$ ( 0.02)Diluted Earnings (Loss) Per Share    After Tax
$ 0.01
$( 0.009)
$ 0.025
$ ( 0.015)
(See "Notes to Financial Statements") 
****ELECTRONIC SYSTEMS TECHNOLOGY, INC. STATEMENT OF CASH FLOWS**(as prepared by Management) (Unaudited) 
Six Months Ended
June 30, 2002
June 30, 2001 CASH FLOWS PROVIDED (USED) IN OPERATING    ACTIVITIES: Net Income (Loss)
$141,275
$(80,548)Noncash items included in income:  Depreciation
18,992
20,153Loss on Disposition of Assets
--
1,059Amortization
2,203
830Provision for Federal Income Taxes
6,633
(41,804) DECREASE (INCREASE) IN CURRENT ASSETS:Accounts Receivable Net
42,612
64,740Inventory
(45,003)
(79,832)Prepaid Expenses
(5,385)
(634)Accrued Interest
(545)
6,240 INCREASE (DECREASE) IN CURRENT LIABILITIES:Accounts Payable and Accrued Expenses 
25,065
(24,915)Federal Income Taxes Payable 
63,760
--Refundable Deposits
55,320
11,759 
$304,927
$(122,952)CASH FLOWS PROVIDED (USED) IN INVESTING    ACTIVITIES:Additions To Property And Equipment
$(15,291)
$(25,945)Deposits for Property and    Equipment to be delivered at later date
--
( 2,125) 
$(15,291)
$(28,070)CASH FLOWS PROVIDED (USED) IN FINANCING    ACTIVITIES:Common Stock Issued through exercised stock    options
$ --
$ 30Additional Paid In Capital from exercised    stock options
--
12,270 
$ --
$ 12,300NET INCREASE (DECREASE) IN CASH    AND    CASH EQUIVALENTS
$ 289,636
$ (138,722)Cash And Cash Equivalents At    Beginning Of Period
1,513,592
1,452,287Cash And Cash Equivalents At Ending of Period 
$1,803,228
$1,313,565 SUPPLEMENTAL DISCLOSURES OF CASH FLOWS    INFORMATION:Cash Paid Year To Date:Interest
$ 0
$ 0Federal Income Taxes
$ 0
$ 0 Cash And Cash Equivalents:Cash
$11,022
$6,100Money Market Accounts
791,722
335,516Certificates Of Deposit
1,000,484
971,949 
$ 1,803,228
$ 1,313,565
(See "Notes to Financial Statements")
**ELECTRONIC SYSTEMS TECHNOLOGY, INC. NOTES TO FINANCIAL STATEMENTS(as prepared by Management)(Unaudited)

**NOTE 1 - BASIS OF PRESENTATION**
The financial statements of Electronic Systems Technology, Inc. (the"Company"), presented in this Form 10Q are unaudited and reflect, in the opinionof Management, a fair presentation of operations for the three and six month periodsending June 30, 2002 and June 30, 2001. Certain information and footnote disclosurenormally included in financial statements prepared in accordance with generally acceptedaccounting principals have been condensed or omitted pursuant to the applicable rules andregulations of the Securities and Exchange Commission. These financial statements shouldbe read in conjunction with the audited financial statements and notes thereto included inthe Company's Form 10K for the year ended December 31, 2001 as filed with Securities andExchange Commission.

The results of operations for the three and six month periods endedJune 30, 2002 and June 30, 2001, are not necessarily indicative of the results expectedfor the full fiscal year or for any other fiscal period.
**NOTE 2 - INVENTORIES**
Inventories are stated at lower of cost or market with cost determinedusing the FIFO (first in, first out) method. Inventories consist of the following:
 
June 302002
December 31 2001Parts
$323,021
$ 357,884Work in progress
125,953
94,036Finished goods
127,628
79,679 
$576,602
$ 531,599**NOTE 3 – EARNINGS (LOSS) PER SHARE**
Basic EPS excludes dilution and is computed by dividing incomeavailable to common stockholders by the weighted-average number of common sharesoutstanding for the period. Diluted EPS reflects potential dilution occurring ifsecurities or other contracts to issue common stock were exercised or converted intocommon stock or resulted in the issuance of common stock that then shared in the earningsof the Company. The primary weighted average number of common shares outstanding was5,619,331 and 5,654,530 for the six-month period ended June 30, 2002 and 2001respectively.

For the six months ended June 30, 2002
 
Income (Numerator)
Shares (Denominator)
Per Share Amount
Basic EPS

Income available to common stockholders
$141,275
5,619,311
$0.025
Diluted EPS

Income available to common stockholders + assumed conversions
$141,275
5,633,667
$0.025
 
**NOTE 4 - STOCK OPTIONS**
As of June 30, 2002, the Company had outstanding stock options thathave been granted periodically to individual employees and directors with no less thanthree years of continuous tenure with Company. On February 15, 2002, additional stockoptions to purchase shares of the Company's common stock were granted to individualemployees and directors with no less than three years continuous tenure. The optionsgranted on February 15, 2002 totaled 180,000 shares under option and have an exerciseprice of $0.42 per share. The options granted on February 15, 2002 may be exercised anytime during the period from February 15, 2002 through February 14, 2005. The Company'sForm 8-K dated February 15, 2002, as filed with the Securities and Exchange Commission isincluded herein by reference. All outstanding stock options must be exercised within 90days after termination of employment. During the 12-month period from June 30, 2001 toJune 30, 2002, 160,000 shares under option expired, no shares under option were exercised,and 180,000 shares under option were granted. At June 30, 2002 there were 535,000 sharesunder option reserved for future exercises.

The Company has adopted the disclosure-only provisions of Statement ofFinancial Accounting Standards (SFAS) No. 123, "Accounting for Stock-BasedCompensation." The Company undertakes to make disclosures and calculations pursuantto SFAS 123 on an annual basis coinciding with the issuance of the Company's AnnualFinancial Statements. Accordingly, no compensation cost has been recognized for the stockoption plan. 
**NOTE 5 - RELATED PARTY TRANSACTIONS
For the six-month period ended June 30, 2002, services in the amount of$58,683 were contracted with Manufacturing Services, Inc., of which the owner/president isa member of the Board of Directors of the Company. 
** **
 

 

 
**ITEM II

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION 
*Management’s discussion and analysis is intended to be read inconjunction with the Company’s unaudited financial statements and the integral notesthereto for the quarter ending June 30, 2002. The following statements may be forwardlooking in nature and actual results may differ materially.*
A. Results of Operations**REVENUES:
Total revenues from the sale of the Company’s ESTeem(TM) wireless modem systems, accessories, and services increased to$537,697 for the second quarter of 2002 compared to $251,806 for the second quarter of2001. Gross revenues increased to $544,779 for the quarter ended June 30, 2002, from$266,186 for the same quarter of 2001. The increase in revenues is the result of increasedsales volume for Domestic and Foreign Industrial Automation applications. The increase insales revenues has been a general trend experienced during the first six months of 2002,which Management believes may continue in the near term, but cannot be assured to dueuncertain economic and market conditions that currently exist. 

The Company's revenues have historically fluctuated from quarter toquarter due to timing factors such as customer order placement and product shipments tocustomers, as well as customer buying trends, and changes in the general economicenvironment. The procurement process regarding plant and project automation, or projectdevelopment, which usually surrounds the decision to purchase ESTeem products can belengthy. This procurement process may involve bid activities unrelated to the ESTeemproducts, such as additional systems and subcontract work, as well as capital budgetconsiderations on the part of the customer. Because of the complexity of this procurementprocess, forecasts in regard to the Company's revenues become difficult to predict. 

The Company's revenues fall into three major customer categories,Domestic, Export and U.S. Government sales. Domestic commercial sales increased to$406,276 in the second quarter of 2002, as compared to $212,241 for the second quarter of2001, due to increased product sales for industrial automation projects using theCompany’s products primarily for water and wastewater automation, and MDCS projects.Foreign export sales for the second quarter of 2002 increased to $124,619 as compared tothe $34,285 in the same quarter of 2001, due to sales of the Company’s products forindustrial automation projects in Ecuador, Italy and Peru. U.S. Government sales increasedslightly to $6,803 in the second quarter of 2002 when compared with second quarter 2001U.S. Government sales of $5,280.

During the quarter ended June 30, 2002 material and services providedto the Nye County Nevada Sheriff’s Department, an end user of the Company’sMobile Data Computer System (MDCS) products, accounted for 12% of the Company’s salesand service revenues. No other sales to a single customer comprised 10% or more of theCompany’s product sales for the quarter ended June 30, 2002. 

A percentage breakdown of EST's major customer categories of Domestic,Export and U.S. Government Sales, for the second quarter of 2002 and 2001 are as follows: 

For the second quarter of 
2002
2001
Domestic Sales
76%
84%
Export Sales
23%
14%
U.S. Government Sales
1%
2%
A percentage breakdown of EST's product sales categories for the secondquarter of 2002 and 2001 are as follows: 

For the Quarter Ended June    30 
2002
2001
ESTeem Model 192
72%
55%
ESTeem Model 95
1%
4%
ESTeem Model 96
1%
--
ESTeem Accessories
22%
21%
Factory Services
1%
4%
Site Support
3%
16%
Sales for the second quarter of 2002 and 2001 include foreign exportsales as follows:

Three Months Ended
June 30, 2002
June 30, 2001
Export sales
$ 124,619
$ 34,285
Percent of sales
23%
14%
The geographic distribution of foreign sales for the second quarter of2002 and 2001 is as follows:

Percent of Foreign Sales
COUNTRY
June 30, 2002
June 30, 2001Ecuador
27%
--Italy
25%
--Peru
14%
25%Puerto Rico
10%
--Indonesia
4%
14%Australia
4%
--Austria
4%
--South Korea
4%
9%United Kingdom
3%
--Canada
3%
1%Jordan
2%
28%Japan
--
19%Mexico
--
3%Brazil
--
1%
The majority of the Company's domestic and foreign sales for the secondquarter of 2002 were used in Industrial Automation applications. It is Management’sopinion that the majority of the Company’s sales will continue to be in IndustrialAutomation applications for the foreseeable future. Industrial Automation applications forthe Company’s products will be augmented by sales of Mobile Data Computer Systems(MDCS) for public safety entities. During the first half of 2002, MDCS sales were lowerthan anticipated, a trend experienced by the Company during the previous eighteen months,which Management believes may continue in the near term due to current market conditionsand public safety entity purchases being linked to uncertain government funding. 

Based on prior sales history, the majority of all U.S. Governmentpurchases of the Company’s products are under the Company’s General ServicesAdministration (GSA) contract. Management believes that although there was a slightincrease in government sales, the trend is toward decreased U.S. Government sales as aresult of a continued downward sales trend for projects and purchases in the U.S.Government sales marketplace. Management believes this may continue for the foreseeablefuture. Due to the uncertain nature of U.S. Government purchasing, Management does notbase profitability or liquidity projections on expected U.S. Government sales.
**BACKLOG:
The Corporation had backlog of $91,295 as of June 30, 2002, the majority of which isdue to a large foreign order placed late in the second quarter with an expected shipmentdate of mid-July 2002, and on-going MDCS projects. The Company’s customers generallyplace orders on an "as needed basis". Shipment for most of the Company’sproducts is generally made within 5 to 10 working days after receipt of customer orders,with the exception of ongoing, scheduled projects, and custom designed equipment forspecific customer applications.
**COST OF SALES:
Cost of sales percentage for the second quarters of 2002 and 2001 was48% and 58%, respectively. The Cost of Sales reduction for the second quarter of 2002 isattributable to the type of product sold, as well differences in discounted pricingstructures for those products sold, positively effecting profit margins, when comparedwith the same quarter of 2001.
**OPERATING EXPENSES:
Operating expenses for the second quarter of 2002 increased $11,433higher than the second quarter of 2001. The following is a delineation of operatingexpenses: 

For the quarter ended:
June 30, 2002
June 30, 2001
Increase (Decrease)
Finance/Administration
$ 52,608
$ 38,917
$ 13,691
Research/Development
44,556
45,707
( 1,151)
Marketing
77,340
68,506
8,834
Customer Service
22,487
32,428
( 9,941)
Total Operating Expenses
$ 196,991
$ 185,558
$ 11,433**FINANCE AND ADMINISTRATION:
During the second quarter of 2002, Finance and Administration expensesincreased $13,691 from the second quarter of 2001. Increased expenses were the result ofbad debt expense in the amount of $9,167 being recognized by the Company during thequarterdue to nonpayment by a reseller of theCompany’s products, as well as increased professional services expenses when comparedwith the same quarter of 2001. **RESEARCH AND DEVELOPMENT:
During the second quarter of 2002, Research and Development expensesdecreased $1,151 when compared with the same period in 2001. The decrease is attributableto reduced contracted engineering expertise expenses when compared with the same quarterof 2001.**MARKETING:
During the second quarter of 2002, marketing expenses increased $8,834from the same period in 2001. The increase is the result of increased department salariesand travel expenses when compared with the same quarter of 2001. 
**CUSTOMER SERVICE:
Customer service expenses decreased $9,941 during the second quarter of2002. The decrease is attributable to decreased allocated salaries and travel expenses forthe department during the quarter when compared with the same quarter of 2001.
**INTEREST INCOME:
The Corporation earned $7,082 in interest income during the quarterended June 30, 2002. Sources of this income were savings and money market accounts, andshort-term investments. The Company’s interest income has been adversely effected bythe reduction of short-term interest rates that has occurred during the past year. 
**ENGINEERING SUPPORT:
Engineering support costs decreased to $21,465 for the quarter endedJune 30, 2002, as compared to $32,305 for the same period of 2001. This decrease inengineering support costs for the second quarter of 2002 is a direct result of decreasedengineering services revenues performed by the Company for customers, when compared withthe second quarter of 2001. 
**NET INCOME (LOSS): 
The Company had a net income of $55,576 for the second quarter of 2002,compared to a $49,977 net loss for the same quarter of 2001. The increase in net income isattributable to increased sales revenues and decreased cost of goods sold during thesecond quarter of 2002. 
**B. Financial Condition, Liquidity and Capital Resources
The Corporation's current asset to current liabilities ratio at June30, 2002 was 10.7:1 compared to 24.7:1 at December 31, 2001. The decrease in current ratiois due to increased accounts payable and Federal income tax payable amounts when comparedwith December 31, 2001 amounts.

For the quarter ending June 30, 2002, the Company had cash and cashequivalent short-term investment holdings of $1,803,228 as compared to cash and cashequivalent holdings of $1,513,592 at December 31, 2001. The comparable increase isattributable to increased accounts payable and tax payable amounts, and the Company’syear to date net income when compared with December 31, 2001. 

Accounts receivable decreased to $116,062 as of June 30, 2002, fromDecember 31, 2001 levels of $158,674. The Company recognized bad debt expense in theamount of $9,167 due to nonpayment by a reseller of the Company’s products. Inventoryincreased to $576,602 at June 30, 2002, from December 31, 2001 levels of $531,599, due toincreased procurement to facilitate increased production for increased sales during thefirst half of 2002. Provision for Federal Income Taxes decreased to $0 at June 30, 2002 asthe potential tax credit for the Company at December 31, 2001 decreased, and was convertedto a Federal Income tax payable liability, as calculated from the Company’s netincome as of June 30, 2002. 

The Company's fixed assets, net of depreciation, decreased to $161,288as of June 30, 2002, from December 31, 2001 levels of $164,989, due to depreciation ofthose fixed assets. The Company had capital expenditures of $15,291 during the first sixmonths of 2002. The expenditures were equipment used in manufacturing, and upgrades to theCompany’s existing computer network. Management foresees additional capitalexpenditures may be necessary in 2002 to support the production and sale of theCompany’s products.

As of June 30, 2002, the Company’s trade accounts payable balancewas $70,732 as compared with $53,384 at December 31, 2001, and reflects amounts owed forinventory items and contracted services. Refundable deposit liability was $55,320 for thequarter ended June 30, 2002, and reflects prepaid amounts for foreign customer orders tobe shipped during July 2002, and prepaid amount for ongoing MDCS projects. Accruedliabilities as of June 30, 2002 were $28,572, compared with $20,855 at December 31, 2001,and reflect items such as accrued vacation benefits, accrued payroll tax and state excisetax liabilities.

In Management's opinion, the Company's cash and cash equivalentreserves, and working capital at June 30, 2002 is sufficient to satisfy requirements foroperations, capital expenditures, and other expenditures as may arise during the remainderof 2002.
***FORWARD LOOKING STATEMENTS: The above discussion may contain forwardlooking statements that involve a number of risks and uncertainties. In addition to thefactors discussed above, among other factors that could cause actual results to differmaterially are the following: competitive factors such as rival wireless architectures andprice pressures; availability of third party component products at reasonable prices;inventory risks due to shifts in market demand and/or price erosion of purchasedcomponents; change in product mix, and risk factors that are listed in the Company’sreports and registration statements filed with the Securities and Exchange Commission.*
PART II

OTHER INFORMATION 

Item 4. Submission of Matters to the Securities Holders 

At the Company's Annual Stockholder Meeting on June 7, 2002, inKennewick, Washington the following items were voted on by the stockholders with thefollowing outcomes: 

Item #1 Election of Director:

Tom L. Kirchner 

Votes for: 3,833,257
Votes against: 78,737
Item #2 Ratification of Moe O’Shaughnessy & Associates, P.S. as    independent auditors of the Corporation for the fiscal year ending December 31, 2002.

Votes for: 3,815,257 
Votes against: 28,200
Abstaining: 1,825
Item #3 Authorization of proxy to vote upon other    matters as may properly come before the meeting. (No such issues were brought before the    meeting) 

Votes for: 3,744,765 
Votes against: 87,312
Abstaining: 13,205 
Item 6. EXHIBITS AND REPORTS ON FORM 8-K

(b) Reports on Form 8-K 

Form 8-K dated February 15, 2002 is    incorporated herein by reference.Exhibit Index 
Reference Form 10-QSB 
Exhibit Number 
Notes to Financial    Statements
4. Instruments defining the Rights of Security Holders including indentures. 

Form 8-K dated Feb 15, 2002 is    incorporated herein by reference. 
11. Statement Re:    computation of per share earnings 
Note 3 to Financial    Statements 
SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused thisreport to be signed on its behalf by the undersigned, thereunto duly authorized. 

ELECTRONIC SYSTEMS TECHNOLOGY, INC.
 

 
Date: August 12, 2002/s/ T.L. KIRCHNERName: T.L. KirchnerTitle: Director/President    (Principal Executive Officer)Date: August 12, 2002/s/ JON CORREIOName: Jon CorreioTitle:    Director/Secretary/Treasurer    (Principal Financial Officer)
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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