Attached files
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2010
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number 000-53847
PEPPER ROCK RESOURCES CORP.
(Exact name of registrant as specified in its charter)
NEVADA
(State or other jurisdiction of incorporation or organization)
One Lincoln Centre
18 West 140 Butterfield Road, 15th Floor
Oakbrook Terrace, IL 60181
(Address of principal executive offices, including zip code)
630-613-7487
(Telephone number, including area code)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the last 90 days. YES [X] NO [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer, "accelerated filer,"
"non-accelerated filer," and "smaller reporting company" in Rule 12b-2 of the
Exchange Act.
Large Accelerated Filer [ ] Accelerated Filer [ ]
Non-accelerated Filer [ ] Smaller Reporting Company [X]
Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). YES [X] NO [ ]
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 60,800,000 as of June 21, 2010.
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
Pepper Rock Resources Corp.
(An Exploration Stage Company)
April 30, 2010
Index
-----
Balance Sheets (Unaudited)..................................................3
Statements of Expenses (Unaudited)..........................................4
Statements of Cash Flows (Unaudited)........................................5
Notes to Unaudited Financial Statements ....................................6
2
Pepper Rock Resources Corp.
(An Exploration Stage Company)
Balance Sheets
(Unaudited)
April 30, July 31,
2010 2009
--------- ---------
ASSETS
Current Assets
Cash $ 7,519 $ 590
Prepaid expenses 350 350
--------- ---------
Total Current Assets 7,869 940
Oil and gas properties (successful efforts method of accounting) 300,000 --
--------- ---------
Total Assets $ 307,869 $ 940
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts payable and accrued liabilities $ 28,404 $ 7,257
Loan payable 24,340 1,000
Due to related party 16,974 184
--------- ---------
Total Liabilities 69,718 8,441
--------- ---------
Stockholders' Equity (Deficit)
Preferred Stock, 100,000,000 shares authorized,
$0.00001 par value; No shares issued and outstanding as of
April 30, 2010 & July 31, 2009 -- --
Common Stock, 500,000,000 shares authorized, $0.00001 par value;
57,800,000 shares issued and outstanding as of April 30, 2010 &
July 31, 2009 578 578
Additional Paid-in Capital 64,522 62,122
Common Stock Subscribed 300,000 --
Deficit Accumulated During the Exploration Stage (126,949) (70,201)
--------- ---------
Total Stockholders' Equity (Deficit) 238,151 (7,501)
--------- ---------
Total Liabilities and Stockholders' Equity (Deficit) $ 307,869 $ 940
========= =========
(The Accompanying Notes are an Integral Part of
These Unaudited Financial Statements)
3
Pepper Rock Resources Corp.
(An Exploration Stage Company)
Statements of Expenses
(Unaudited)
From
For the three months ended For the nine months ended May 29, 2008
April 30, April 30, (Date of Inception)
-------------------------- -------------------------- to April 30,
2010 2009 2010 2009 2010
----------- ----------- ----------- ----------- ----------
Expenses
Other general and administrative $ 4,265 $ 1,083 $ 6,418 $ 4,892 $ 13,614
Management services 12,000 1,200 14,400 3,600 20,000
Professional fees 17,284 3,358 35,790 28,373 84,900
Impairment of mineral properties -- -- -- -- 5,000
Exploration costs -- -- 140 295 3,435
----------- ----------- ----------- ----------- ----------
Total Expenses $ 33,549 $ 5,641 $ 56,748 $ 37,160 $ 126,949
----------- ----------- ----------- ----------- ----------
Net Loss for the Period $ (33,549) $ (5,641) $ (56,748) $ (37,160) $ (126,949)
=========== =========== =========== =========== ==========
Net Loss Per Common Share - Basic and
Diluted $ (0.00) $ (0.00) $ (0.00) $ (0.00)
=========== =========== =========== ===========
Weighted Average Common Shares Outstanding 57,800,000 57,800,000 57,800,000 57,800,000
=========== =========== =========== ===========
(The Accompanying Notes are an Integral Part of
These Unaudited Financial Statements)
4
Pepper Rock Resources Corp.
(An Exploration Stage Company)
Statements of Cash Flows
(Unaudited)
For the For the From
Nine Months Nine Months May 29, 2008
Ended Ended (Date of Inception)
April 30, April 30, to April 30,
2010 2009 2010
--------- --------- ---------
OPERATING ACTIVITIES
Net loss for the period $ (56,748) $ (37,160) $(126,949)
Adjustment to reconcile net loss to net cash
used in operating activities:
Donated services 2,400 3,600 8,000
Impairment of mineral properties -- -- 5,000
Changes in operating assets and liabilities:
Prepaid expenses -- (222) (350)
Accounts payable and accrued liabilities 21,147 1,261 28,404
Due to related party, services 12,000 -- 12,000
--------- --------- ---------
Net Cash Used in Operating Activities (21,201) (32,521) (73,895)
--------- --------- ---------
INVESTING ACTIVITIES
Mineral property costs -- -- (5,000)
Oil and Gas property costs (300,000) -- (300,000)
--------- --------- ---------
Net Cash Used in Investing Activities (300,000) -- (305,000)
--------- --------- ---------
FINANCING ACTIVITIES
Bank overdraft -- 46 --
Loan payable 23,340 -- 24,340
Due to related parties, advances 4,790 59 4,974
Proceeds from issuance of common stock -- -- 57,100
Common stock subscribed 300,000 -- 300,000
--------- --------- ---------
Net Cash Provided by Financing Activities 328,130 105 386,414
--------- --------- ---------
Increase (Decrease) in Cash 6,929 (32,416) 7,519
Cash - Beginning of Period 590 32,793 --
--------- --------- ---------
Cash - End of Period $ 7,519 $ 377 $ 7,519
========= ========= =========
Supplemental Disclosures
Interest paid $ -- $ -- $ --
Income taxes paid $ -- $ -- $ --
========= ========= =========
(The Accompanying Notes are an Integral Part of
These Unaudited Financial Statements)
5
1. Significant Accounting Policies and Basis of Presentation
The accompanying unaudited interim financial statements of Pepper Rock Resources
Corp. (the "Company") have been prepared in accordance with accounting
principles generally accepted in the United States of America and the rules of
the Securities and Exchange Commission ("SEC"), and should be read in
conjunction with the audited financial statements and notes thereto contained in
the Company's July 31, 2009 report filed with the SEC on Form 10-K. In the
opinion of management, all adjustments, consisting of normal recurring
adjustments, necessary for a fair presentation of financial position and the
results of operations for the interim periods presented have been reflected
herein. The results of operations for interim periods are not necessarily
indicative of the results to be expected for the full year. Notes to the
financial statements which would substantially duplicate the disclosure
contained in the audited financial statements for the most recent fiscal year
end July 31, 2009 as reported on Form 10-K, have been omitted.
REVENUE RECOGNITION
The Company recognizes sales revenues for gas, oil and condensate, and NGLs
based on the amount of each product sold to purchasers when delivery to the
purchaser has occurred and title has transferred. This occurs when product has
been delivered to a pipeline or purchaser. The Company follows the sales method
of accounting for natural-gas production imbalances. If the Company's sales
volumes for a well exceed the estimated remaining recoverable reserves of the
well, a liability is recognized. No receivables are recorded for those wells on
which the Company has taken less than its proportionate share of production.
SUCCESSFUL EFFORTS METHOD ACCOUNTING
The Company uses the successful efforts method of accounting for oil and gas
producing activities. Costs to acquire mineral interests in oil and gas
properties, to drill and equip exploratory wells that find proved reserves, to
drill and equip development wells and related asset retirement costs are
capitalized. Costs to drill exploratory wells that do not find proved reserves,
geological and geophysical costs, and costs of carrying and retaining unproved
properties are expensed.
IMPAIRMENT OF OIL AND NATURAL GAS PROPERTIES
Unproved oil and gas properties that are individually significant are
periodically assessed for impairment of value, and a loss is recognized at the
time of the impairment by providing an impairment allowance. An asset would be
impaired if the undiscounted cash flows were less than its carrying value.
Impairments are measured by the amount by which the carrying value exceeds its
fair value. Because the Company uses the successful efforts method, the Company
assesses its properties individually for impairment, instead of on an aggregate
pool of costs.
DEPRECIATION AND DEPLETION OF OIL AND NATURAL GAS PROPERTIES
Capitalized costs of producing oil and gas properties, after considering
estimated residual salvage values, are depreciated and depleted by the
unit-of-production method. This method is applied through the simple
multiplication of reserve units produced by the leasehold costs per unit on a
field by field basis. Leasehold cost per unit is calculated by dividing the
total cost of acquiring the leasehold by the estimated total proved oil and gas
reserves associated with that lease. Field cost is calculated by dividing the
total cost by the estimated total proved producing oil and gas reserves
associated with that field.
ASSET RETIREMENT OBLIGATIONS
The Company records a liability for legal obligations associated with the
retirement of tangible long-lived assets in the period in which they are
incurred. Under this method, when liabilities for dismantlement and abandonment
costs (ARO) are initially recorded, the carrying amount of the related oil and
natural gas properties are increased. Accretion of the liability is recognized
each period using the interest method of allocation, and the capitalized cost is
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depleted over the useful life of the related asset. Revisions to such estimates
are recorded as adjustments to the ARO, capitalized asset retirement costs and
charges to operations during the periods in which they become known. At the time
the abandonment cost is incurred, the Company is required to recognize a gain or
loss if the actual costs do not equal the estimated costs included in ARO.
Reclassifications
Certain reclassifications have been made to the prior period's financial
statements to conform to the current period's presentation.
2. Going Concern
These financial statements have been prepared on a going concern basis, which
implies that the Company will continue to realize its assets and discharge its
liabilities in the normal course of business. The Company has not generated any
revenue since inception and has never paid any dividends and is unlikely to pay
dividends or generate earnings in the immediate or foreseeable future. The
continuation of the Company as a going concern is dependent upon the continued
financial support from its shareholders, the ability of the Company to obtain
necessary equity financing to continue operations, and the attainment of
profitable operations. At April 30, 2010, the Company has accumulated losses
since inception.
These factors raise substantial doubt regarding the Company's ability to
continue as a going concern. These financial statements do not include any
adjustments to the recoverability and classification of recorded asset amounts
and classification of liabilities that might be necessary should the Company be
unable to continue as a going concern.
3. Oil and Gas Properties
a) On February 10, 2010, the Company entered into an agreement with Oxalis
Energy Group ("Oxalis") of Katy, Texas to participate in ten (10) oil and
gas wells being drilled near Ozona, Texas. Pursuant to the agreement, the
Company is required to make development payments totaling $5,300,000,
payable in eleven (11) payment tranches. The first payment of $300,000 was
made in February 2010 and was for the completion and reactivation of two
(2) natural gas wells. The Company will make ten (10) additional payments
equal to $500,000, starting on a date mutually determined by Oxalis and the
Company. Each $500,000 tranche represents the Company's investment in a new
well such that after the full payment of $5,000,000, the Company will have
invested in ten (10) new wells. Upon full payment of each tranche, the
Company will receive a 50% working interest in the associated well. If the
Company fails to make a monthly payment, it forfeits all rights to any
unfunded wells and any rights to future wells assigned under the agreement.
The Company's cost per well is not to exceed $500,000. If the Company makes
all required payments under the agreement, it will have a second ten well
drilling program assigned to it.
b) On February 5, 2010, the Company entered into a Joint Venture Agreement
(the "Dominus Agreement") with Dominus Energy AG ("Dominus Energy").
According to the Dominus Agreement, the Company has the exclusive right to
participate in the Manyberries Development located in Alberta, Canada as
long as the Company meets its funding obligations. The Company agreed to
fund $500,000 as working capital in the Manyberries Development and also
agreed to pay all capital needs to develop the property no later than six
(6) months from the date of the signed agreement. The Dominus Agreement was
subsequently cancelled with no further obligations to either party. Refer
to note 8(a).
4. Related Party Transactions
a) For the fiscal period ended April 30, 2010, the Company recognized $2,400
for donated services at $400 per month provided by the President of the
Company. The Company did not record donated services for the three months
period ended April 30, 2010, as management services provided by the
President of the Company of $4,000 were accrued pursuant to the management
agreement described in Note 7. As at April 30, 2010, the Company is
7
indebted to the President of the Company for $12,000 of accrued management
fees and $4,790 for expenses paid on behalf of the Company which are
non-interest bearing, unsecured and due on demand.
b) This amount is non-interest bearing, unsecured and due on demand.
c) As at April 30, 2010, the Company is indebted to the former President of
the Company for $184 for expenses paid on behalf of the Company. This
amount is non-interest bearing, unsecured and due on demand.
5. Loan Payable
During the nine months period ended April 30, 2010, the Company received $23,340
(July 31, 2009 - $1,000) in loans from unrelated third parties. This amount was
used for corporate expenses and is unsecured, non-interest bearing and has no
terms of repayment.
6. Common Stock
a) During the period ended April 30, 2010, the Company received common stock
subscriptions of $300,000 pursuant to a private placement for the issuance
3,000,000 shares at $0.10 per share. At April 30, 2010, the shares had not
been issued.
b) On October 15, 2009, the Company effected a 5:1 forward stock split of the
authorized, issued and outstanding common stock. As a result, the
authorized share capital increased from 100,000,000 shares of common stock
to 600,000,000 shares of common stock with no change in par value. All
share amounts have been retroactively adjusted for all periods presented.
7. Commitment
a) On February 8, 2010, the Company signed an agreement with the President of
the Company for management services at $4,000 per month for a period of
twelve months. Either party can cancel the agreement with ten days notice.
b) Pursuant to the agreement with Oxalis, the Company is committed to pay
$500,000 per month for ten (10) months in order to fulfil its development
obligations. If the Company fails to make a payment, it forfeits all rights
to any unfunded wells and any rights to future wells assigned under the
agreement.
8. Subsequent Events
a) Effective May 5th, 2010, the Company terminated the Joint Venture Agreement
with Dominus Energy. Both Dominus Energy and the Company agreed it was no
longer both entities desire to further the joint venture. There are no
additional obligations to either party. Refer to Note 3(b).
b) On May 20, 2010, the Company filed a Registration Statement on Form S-1/A
with the United States Securities and Exchange Commission ("SEC") to
register 40,000,000 shares of common stock. 22,500,000 shares are being
registered for resale by existing stockholders of the Company at prevailing
market prices, and 17,500,000 are being registered for sale by the Company.
The Company will not receive any proceeds from the resale of shares of
common stock by the stockholders.
8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
This section of the report includes a number of forward-looking statements that
reflect our current views with respect to future events and financial
performance. Forward-looking statements are often identified by words like:
believe, expect, estimate, anticipate, intend, project and similar expressions,
or words which, by their nature, refer to future events. You should not place
undue certainty on these forward-looking statements, which apply only as of the
date of this report. These forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ materially
from historical results or our predictions.
RESULTS OF OPERATIONS / PLAN OF OPERATION
We are a start-up, exploration stage corporation and have not yet generated or
realized any revenues from our business activities.
We have not generated any revenue and have incurred losses since inception. In
addition, we have a working capital deficit at April 30, 2010. These factors
raise substantial doubt regarding the Company's ability to continue as a going
concern for the next twelve months unless we obtain additional capital to pay
our bills. This is because we have not generated any revenues and no revenues
are anticipated until we begin removing and selling minerals or oil and gas.
Accordingly, we must raise cash from sources other than the sale of minerals and
oil and gas found on the properties. Our only other sources for cash at this
time are loans from related parties and additional sales of common stock. Our
success or failure will be determined by what additional financing we obtain and
what we find under the ground.
Funds raised from our private placement were used to pay administrative and
other expenses, however we have spent all of it. We have to raise additional
money to complete exploring our properties. If we find mineralized material
and/or oil and gas, and it is economically feasible to remove the mineralized
material or the drilling of oil and gas, we will attempt to raise even more
money through a subsequent private placement, public offering or through loans.
If we do not have enough money to complete our exploration and drilling of the
properties, we will have to find alternative sources, like a public offering, an
additional private placement of securities, or loans from our officer or others.
Our sole officer and director is unwilling to make any commitment at this time
to loan us money. At the present time, we have not made any arrangements to
raise additional cash. If we need additional cash and cannot raise it, we will
either have to suspend activities until we do raise the cash, seek additional
opportunities, or cease activities entirely. Other than as described in this
paragraph, we have no other financing plans.
We have the right to conduct exploration activities on one mineral property, and
on February 10, 2010, the Company entered into an agreement with Oxalis Energy
Group ("Oxalis") of Katy, Texas to participate in ten (10) oil and gas wells
being drilled near Ozona, Texas. Pursuant to the agreement, the Company is
required to make development payments totaling $5,300,000, payable in eleven
(11) payment tranches. The first payment of $300,000 was made in February 2010
and was for the completion and reactivation of two (2) natural gas wells. The
Company will make ten (10) additional payments equal to $500,000, starting on a
date mutually determined by Oxalis and the Company. Each $500,000 tranche
represents the Company's investment in a new well such that after the full
payment of $5,000,000, the Company will have invested in ten (10) new wells.
Upon full payment of each tranche, the Company will receive a 50% working
interest in the associated well. If the Company fails to make a monthly payment,
it forfeits all rights to any unfunded wells and any rights to future wells
assigned under the agreement. The Company's cost per well is not to exceed
$500,000. If the Company makes all required payments under the agreement, it
will have a second ten well drilling program assigned to it.
Even if we complete our current exploration and drilling programs and they are
successful in identifying a mineral deposit and/or oil and gas deposits, we will
have to spend substantial funds on further drilling and engineering studies
before we will know if we have a commercially viable mineral/oil and gas deposit
reserves.
9
We will be conducting research in the form of exploration and drilling of the
properties. Our exploration and drilling programs are explained in as much
detail as possible in the business section of our Form S-1 registration
statement. We are not going to buy or sell any plant or significant equipment
during the next twelve months. We will not buy any equipment until we have
located reserves and we have determined that they are economical to extract the
minerals and/or drill oil and gas from the land.
We do not intend to involve other companies in the property if we find
mineralized materials. We intend to try to develop the mineral reserves
ourselves. We have entered into a Joint Venture Agreement with another company
for the oil and gas property, and the Company can earn a 50% working interest in
the 22 natural gas wells.
If we can't or don't raise more money, we will either cease activities or look
for other opportunities. If we cease activities, we don't know what we will do
and we don't have any plans to do anything.
We do not intend to hire additional employees at this time. All of the work on
the properties will be conducted by unaffiliated independent contractors that we
will hire. The independent contractors will be responsible for surveying,
geology, engineering, exploration, drilling and excavation. The geologists will
evaluate the information derived from the exploration and excavation and the
engineers will advise us on the economic feasibility of removing the mineralized
material and/or the oil and gas.
MILESTONES
The milestones are as follows:
1. Raise additional capital.
2. Retain our consultant to manage the exploration of the mineral
property. - Maximum cost of $5,000 for a retention period of 90 days
or less.
3. Trenching: Trenching will cost approximately $14,000 and will be
conducted by unrelated subcontractors. Trenching includes grid
installation, metal detection, sample collecting and shipping the
samples for testing.
4. Have an independent third party analyze the samples. We estimate that
it will cost $2,000 to analyze the samples and will take 30 days.
5. Raise additional capital for the drilling of the 22 natural gas wells.
Maximum cost will not exceed $500,000 per well.
We have nominal cash at the present time and cannot operate until we raise
additional capital.
LIMITED OPERATING HISTORY; NEED FOR ADDITIONAL CAPITAL
There is no historical financial information about us upon which to base an
evaluation of our performance. We are an exploration stage corporation and have
not generated any revenues from activities. We cannot guarantee we will be
successful in our business activities. Our business is subject to risks inherent
in the establishment of a new business enterprise, including limited capital
resources, possible delays in the exploration and drilling of our properties,
and possible cost overruns due to price and cost increases in services.
To become profitable and competitive, we conduct research and exploration of our
properties before we start production of any minerals and/or oil and gas we may
find. We will be seeking equity financing to provide for the capital required to
implement our research, exploration and drilling phases.
We have no assurance that future financing will be available to us on acceptable
terms. If financing is not available on satisfactory terms, we may be unable to
continue, develop or expand our operations. Equity financing could result in
additional dilution to existing shareholders.
LIQUIDITY AND CAPITAL RESOURCES
Since inception, we have issued 60,800,000 shares of our common stock and
received $357,100.
10
As of the date of this report, we have conducted limited operations and
therefore have not generated any revenues.
In May 29, 2008, we issued 32,500,000 shares of common stock to our former
officer and director, Curtis C. Daye. The purchase price of the shares was
$6,500. This was accounted for as an acquisition of shares. Curtis C. Daye
covered some of our initial expenses by paying $184 for incorporation documents,
administrative costs, and courier costs. The amount owed to Mr. Daye is
non-interest bearing, unsecured and due on demand. Further, the agreement with
Mr. Daye is oral and there is no written document evidencing the agreement.
On July 8, 2008, we issued 25,300,000 shares of common stock to 46 individuals
in consideration of $50,600.
On June 15, 2010, we issued 3,000,000 shares of common stock to an individual in
consideration of $300,000.
As of April 30, 2010, our total assets were $307,869 and our total liabilities
were $58,401.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
We are a smaller reporting company as defined by Rule 12b-2 of the Securities
Exchange Act of 1934 and are not required to provide the information under this
item.
ITEM 4. CONTROLS AND PROCEDURES.
Under the supervision and with the participation of our management, including
the Principal Executive Officer and Principal Financial Officer, we have
evaluated the effectiveness of our disclosure controls and procedures as
required by Exchange Act Rule 13a-15(b) as of the end of the period covered by
this report. Based on that evaluation, the Principal Executive Officer and
Principal Financial Officer have concluded that these disclosure controls and
procedures are not effective due to adjustments found by independent auditor
during the interim periods.
CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING
There have been no changes in our internal controls over financial reporting
that occurred during the nine months ended April 30, 2010 that have materially
affected, or are reasonably likely to materially affect, our internal controls
over financial reporting.
11
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS.
The following documents are included herein:
Exhibit No. Document Description
----------- --------------------
31.1 Certification of Principal Executive Officer and Principal
Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
32.1 Certification of Chief Executive Officer and Chief Financial
Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
12
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following person on behalf of the Registrant and in
the capacities on this 21st day of June, 2010.
PEPPER ROCK RESOURCES CORP.
June 21, 2010 BY: /s/ Phil Kueber
------------------------------------------------
Phil Kueber
President, Chief Executive Officer, Secretary,
Treasurer, Principal Financial Officer,
Principal Accounting Officer, and sole member
of the Board of Directors.
13
EXHIBIT INDEX
Exhibit No. Document Description
----------- --------------------
31.1 Certification of Principal Executive Officer and Principal
Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
32.1 Certification of Chief Executive Officer and Chief Financial
Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
1
