AMAZON NATURAL TREASURES INC 10QSB (Part 1 of 2)
Filing Date: 12/3/98
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the Quarter Ended Commission File Number
SEPTEMBER 30, 1998 33-26109
AMAZON NATURAL TREASURES, INC.
(Exact name of registrant as specified in its charter)
NEVADA
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
88-0460880
4011 W. OQUENDO ROAD, SUITE C
LAS VEGAS, NEVADA 89118
(Address of principal executive offices)
4011 W. OQUENDO ROAD, SUITE C
LAS VEGAS, NEVADA 89118
(Former Address of principal executive office)
(702) 795-4333
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12 (b) of the Act:
None
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.
X Yes No
State the number of shares outstanding of each of the registrants classes of
common stock, as of the latest practicable date.
September 30, 1998
Common Voting Stock 65,817,615
On November 10, 1998, the Company cancelled the following shares of Common
issued to the Principals (and related parties) and exchanged them for preferred
voting only shares:
Name Number of Shares Exchanged
Michael A. Sylver 17,169,813
Gary Sylver 1,999,000
Morris Sylver 10,000,000
Darral Sylver 152,000
Phillip Sylver 152,000
Robert S. Qualey 5,222,000
Domingos Loricchio 7,110,000
Domingos Loricchio Jr. 5,500,000
Denise Loricchio 3,000,000
Roc and Sherri Pucci JT Ten 1,814,300
Allan Sylver 305,000
Benita Sylver 371,000
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Total Shares Exchanged 52,795,113
The aforementioned common shares were cancelled in exchange for preferred
voting only shares for the reason that the Principals of the Corporation,
as previously arranged in early 1998, wished to decrease the number of
outstanding common shares seeing that the Principals have no intention of
selling any of their shares.
The deduction of these 52,795,113 from the total outstanding shares leaves a
total of outstanding common stock at 13,022,502.
The Company has initiated legal action in the federal courts in the seeking
the cancellation of another 9,740,000 shares of common stock.
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The unaudited financial statements of the Registrant required to be filed with
this 10-QSB Quarterly Report were prepared by management, and commence of
the following page, together with Related Notes. In the opinion on management,
the Financial Statements fairly present the financial condition of the
Registrant.
AMAZON NATURAL TREASURES, INC.
BALANCE SHEET (UNAUDITED)
SEPTEMBER 30, 1998
SEPTEMBER 30, 1998
ASSETS
CURRENT ASSETS
CASH IN BANK $ 70,899
CANADIAN BANK ACCOUNT 2,100
PETTY CASH (500)
CASH IN BANK (15,443)
CHECKING-US SAVINGS BANK (11,472)
ACCOUNTS RECEIVABLE (123)
STOCK SUBSCRIPTION RECEIVABLE (2,000)
INVENTORY (5,282)
BOTTLED/BAGGED 104,058
RAW MATERIALS 231,724
BIRDS 49,061
WORK IN PROGRESS 29,997
GEMS (21,124)
INTERCOMPANY TRANSFERS 40
PREPAID INSURANCE 10,414
-------
TOTAL CURRENT ASSETS $442,348
PROPERTY AND EQUIPMENT
OFFICE FURNITURE AND EQUIPMENT $ 87,426
ACCUM. DEP.-FURNITURE/FIXTURES (9,779)
LABORATORY EQUIPMENT 38,716
ACCUM. DEP.-LABORATORY EQUIPMENT (14,764)
CLEAN ROOM EQUIPMENT 252,085
ACCUM. DEP.-CLEAN ROOM EQUIP. (34,261)
WAREHOUSE EQUIPMENT 102,312
ACCUM. DEP.-WAREHOUSE EQUIP. (13,121)
COMPUTER EQUIPMENT 94,203
ACCUM. DEP. COMPUTER EQUIP (3,991)
AUTOMOBILES 29,061
ACCUM. DEP AUTOMOBILES (2,052)
PORTABLE CLEAN ROOMS 129,612
LOGOS, TRADEMARKS, ETC. 125,000
-------
TOTAL PROPERTY AND EQUIPMENT $780,447
OTHER ASSETS
EMPLOYEE ADVANCES 1,206
RELATED PARTY RECEIVABLES 62,443
INVENTORY OVERHEAD APPLIED 69,354
WORK IN PROGRESS 37,082
LICENSES & TRADEMARKS 5,000
ACCUM. AMORT. - LICENSES (2,000)
REFUNDABLE DEPOSITS 185,423
OTHER ORGANIZATIONAL COSTS 58,855
ACC. AMORT.-ORGANIZATIONAL COSTS (17,209)
SUSPENSE 13,911
-------
TOTAL OTHER ASSETS $414,066
TOTAL ASSETS $1,636,860
----------
----------
LIABILITIES AND CAPITAL
CURRENT LIABILITES
PREPAID LEGAL FEES $ (3,000)
ACCOUNTS PAYABLE 309,398
FICA PAYABLE 12,090
FEDERAL INCOME TAX WITHHELD 13,164
NV BUSINESS TAX PAYABLE 2,138
STATE UNEMP. TAX PAYABLE (1,891)
FED. UNEMP. TAX PAYABLE 356
ACCRUED SALARIES & WAGES 13,083
SALES TAX PAYABLE 10,110
ACCOUNTS PAYABLE-MIKE SYLVER 109,159
ACCOUNTS PAYABLE-TCI 21,599
ACCOUNTS PAYABLE-DR LORICCHIO 10,000
CURRENT PORTION (23,536)
LONG TERM PORTION 17,483
LESS CURRENT UNAMORT. DISC. (2,437)
LESS UNAMORTIZED DISCOUNT (4,194)
LOANS PAYABLE-OFFICERS 30,000
MICHAEL A. SYLVER (38,500)
BENITA SYLVER (9,163)
ROBERT QUALEY 1,142
ABRACEL 10,648
GARY SYLVER 8,052
-------
TOTAL CURRENT LIABILITIES $485,700
LONG-TERM LIABILITIES
NOTE PAYABLE 36,443
------
TOTAL LONG-TERM LIABILITIES $ 36,443
TOTAL LIABILITIES $522,143
CAPITAL
COMMON STOCK $ 31,743
RETAINED EARNINGS (8,830,152)
ADDITIONAL PAID IN CAPITAL 9,955,678
NET INCOME (42,551)
----------
TOTAL CAPITAL $1,114,717
---------
TOTAL LIABILITIES AND CAPITAL $1,636,860
---------
---------
FN:
AMAZON NATURAL TREASURES, INC.
INCOME STATEMENTS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
NINE MONTHS ENDED
SEPTEMBER 30, 1998 SEPTEMBER 30, 1997
REVENUES
SALES $ 536,582 $ 30,770
DAMAGE CLAIMS 995 0
INTEREST INCOME 400 1,716
DISCOUNTS & GIFT CERTIFICATES (46,426) 0
MISCELLANEOUS INCOME 111 0
-------- -------
TOTAL REVENUES 491,662 32,487
-------- -------
COST OF SALES
PURCHASES 2,287 8,507
PROCESSING COSTS 135 1,311
FREIGHT-IN 2,093 720
SHIPPING EXPENSE 7,112 10,795
COMMISSIONS 0 175
------ ------
TOTAL COST OF SALES 11,627 21,509
------ ------
GROSS PROFIT 480,035 10,978
------- ------
EXPENSES
ACCOUNTING SERVICES-OUTSIDE 44,598 30,275
ADVERTISING 0 8,955
AMORTIZATION 0 18,828
APARTMENT LEASES-CORPORATE 6,985 13,742
AUTO & TRUCK 2,824 6,234
AUTO LEASE 6,687 19,227
BANK CHARGES 3,256 813
BANK CHARGES-CREDIT CARDS 445 1,008
CASUAL LABOR 4,096 15,493
COMMISSIONS 24,001 0
COMPUTER EXPENSE 7,714 0
CONSULTING FEES 85,260 85,004
DEPRECIATION 0 47,858
DONATIONS 0 500
DUES & SUBSCRIPTIONS 3,200 4,223
ENTERTAINMENT 425 6,168
EQUIPMENT RENTAL 1,509 3,623
FURNITURE LEASE 406 1,118
INSURANCE-GROUP 14,184 4,229
INSURANCE-GENERAL 9,918 11,864
INTEREST 0 7,254
JANITORIAL 0 737
LEGAL 29,041 40,399
LICENSES & TAXES 2,595 3,014
MISCELLANEOUS 6,022 146
MOVING EXPENSES 460 240
NEVADA BUSINESS TAX 0 1,257
LABORATORY SUPPLIES 0 2,311
CLEAN ROOM SUPPLIES 3,801 3,774
WAREHOUSE SUPPLIES 98 4,149
PLUMBING SUPPLIES 360 0
OFFICE EXPENSES 4,876 20,368
RESEARCH & DEVELOPMENT 428 5,704
PENALTIES 0 21
POSTAGE 1,592 4,646
PROFESSIONAL SERVICES 6,150 11,639
PROMOTIONAL 0 39,535
PROXY SERVICE 9,991 0
PRINTING 0 609
RENT 1,100 0
RENT-LAS VEGAS OFFICE 58,223 27,125
RENT-AMAZON 0 1,971
REPAIRS & MAINTENANCE 1,156 3,701
SALARIES & WAGES 145,529 83,257
SECURITY EXPENSE 583 0
FICA EXPENSE 841 8,223
ST. UNEMP. SUI 0 2,258
FEDERAL UNEMPLOYMENT INSUR 0 496
STATE INDUSTRIAL INS. SYSTEM 0 454
PAYROLL TAX EXPENSE (317) 397
TAXES-CORPORATE 0 162
TELEPHONE 23,646 34,868
TRAVEL 5,275 72,889
UTILITIES 5,628 3,319
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TOTAL EXPENSES 522,586 664,083
------- ------
NET INCOME $( 42,551) $(653,104)
========= =========
FN:
AMAZON NATURAL TREASURES, INC.
STATEMENT OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
SEPTEMBER 30, 1998 SEPTEMBER 30, 1997
Cash Flows from Operating Activities
Net Income $ (42,551) $ (653,104)
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Accounts Receivable 123 0
Stock Subscription Receivable 2,000 2,000
Accum. Dep.-Furniture/Fixtures 0 12,307
Accum. Dep.-Laboratory Equip. 0 13,636
Accum. Dep.-Warehouse Equip. 0 12,373
Accum. Dep.-Computer Equip 0 2,486
Accum. Dep.-Automobiles 0 1,012
Inventory 5,282 0
-Bottled/Bagged (6,923) (107,733)
-Raw Materials (85,161) ( 21,146)
-Work in Progress (9,622) 0
-Birds (8,800) (30,316)
-Gems 35,649 0
Intercompany Transfers (40) 0
Notes Receivable 0 (14,250)
Prepaid Insurance 0 (5,838)
Accounts Payable 101,383 86,255
FICA Payable 9,206 1,193
Federal Income Tax Withheld 11,258 (318)
State Unemp. Tax Payable (2,138) 1,415
SIIS Payable (463) 364
Fed. Unemp. Tax Payable 0 455
Deposits-Layaway 0 (5,000)
Sales Tax Payable 110 10,000
Nevada Business Tax 0 397
Accounts Payable-Mike Sylver 1,400 107,759
Accounts Payable-TCI 0 8,599
Current Portion (28,000) 4,464
Long Term Portion 0 17,855
Less Current Unamort Disc. 0 (2,437)
Less Unamortized Discount 0 (4,882)
Loans Payable-Officers 30,000 0
Michael A. Sylver (42,300) 10,300
Benita Sylver (15,163) (1)
Accrued Interest 0 (1,475)
Short Term Notes Payable 0 (400)
ABRACEL 0 10,248
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Total Adjustments (2,199) 109,323
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Net Cash Provided by Operations (44,750) (543,782)
--------- --------
Cash Flows from Investing Activities
Used For:
Employee Advances (700) (2,875)
Office Furniture and Equipment (5,044) (88,776)
Laboratory Equipment (1,276) (36,262)
Clean Room Equipment (86,479) (141,390)
Accum. Dep. Clean Room Equipment 0 (4,110)
Work in Progress (37,082) (151,828)
Warehouse Equipment (452) (115,562)
Computer Equipment (70,676) (24,586)
Automobiles (11,471) (22,590)
Leasehold Improvements 0 (256)
Logos, Trademarks, Etc. 0 (125,000)
Refundable Deposits (117,229) (52,215)
Other Organizational Costs 0 (57,668)
Suspense (17,077) (4,241)
-------- --------
Net Cash Used in Investing (347,485) (827,359)
--------- --------
Cash Flows from Financing Activities
Proceeds from:
Note Payable 29,500 72,319
Common Stock 209 24,075
Additional Paid in Capital 424,706 2,479,166
Used for:
Note Payable (15,166) (112,319)
Common Stock (13) (730)
Additional Paid in Capital (129,749) (929,074)
--------- ---------
Net Cash Used in Financing 309,487 1,533,438
--------- ---------
Net Increase (Decrease) in Cash $ (82,749) $ 162,298
======== =======
Summary
Cash Balance at End of Period $ 45,584 $163,688
Cash Balance at Beginning of Period (128,332) (1,390)
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Net Increase (Decrease) in Cash $( 82,749) $162,298
======== =======
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL STATEMENTS
LIQUIDITY AND CAPITAL RESOURCES
Since the reverse acquisition of Amazon Natural Treasures, Inc., (NV) the Company has had limited operations and has made preparation to launch more extensive operations in the near future. Currently, the Company's capital resources are adequate for this purpose. To finance these activities the Company is engaged in the private placement of securities. The company has sufficient capitol for the start of their Direct Marketing Program, which will begin in the third quarter of 1998.
RESULTS OF OPERATIONS
The Company does have limited operations and costs attributed to development of future operations. In the year-to-date ended September 30, 1997,the Company lost $653,104. In the year-to-date September 30, 1998, the Company lost $42,551, which is offset by assets in the amount of $1,636,860.
PLAN OF OPERATION
Amazon Natural Treasures, Inc., a privately held Nevada Company. Amazon Natural Treasures, Inc., is a multi-faceted company which is a Phytogenics Health Maintenance Company along with bringing the treasures of the Brazilian Amazon Rain Forest to the rest of the world. They produce and distribute health supplements derived from plants and related species for the cure and treatment of human illnesses and disease. The Board of Directors feel this will offer shareholders a viable business opportunity now and for the future.
Amazon Natural Treasures, Inc. or A.N.T., as it is also known, was incorporated in Nevada, during 1995. It is a company with a unique mission. To bring the Amazon's naturally produced treasures, in their purest form, to the people of the world. To this end, A.N.T. has obtained the rights to export products from the Amazon area to the United States, Canada and the rest of the world. These products include: herbs, roots, plants and teas. Along with these products come their associated benefits. A.N.T. also produces and exports a bevy of additional product lines.
For many years people have looked for alternative treatments for their diseases and maladies. People all over the world have had unpleasant experiences with modern (allopathic) medical treatments, that in many cases are made up of man-made chemicals that produce unwanted, if not dangerous side effects. Health food stores have made billions of dollars catering to this ever-increasing segment of the population. Many of their products are beneficial, but far too many of them contain a small percentage (usually under 10%) of there advertised ingredient(s). Ninety percent is filler. All of Amazon Natural Treasures, Inc. Phytogenics products are 100% pure and natural without any fillers. Our customers get the full potency of the product they purchase and at competitive prices. Key personnel have been actively working in the research and development phase of our Phytogenics products since 1972. In 1995 a decision was made to enter A.N.T. products into the world market.
Amazon Natural Treasures' business plan for the next twelve-(12) months contemplates the utilization of an aggressive multi-dimensional marketing campaign. The company will use direct mail to qualified leads. Also planned is the placement of advertising in established and widely circulated health-related, as well as general interest publications. An "infomercial" is planned to further disseminate information into the marketplace. It is anticipated this will result in strong revenue in the first quarter of 1998 and increasing sales thereafter. This assertive plan will be implemented at the conclusion of the private placement offering.
The company contemplates entering into advertising contracts with magazines, including but not limited to the following:
Magazine Circulation
PREVENTION 3,000,000
Rx REMEDY 1,500,000
VITALITY 1,250,000
HEALTH JOURNAL 1,200,000
AMERICAN HEALTH 1,000,689
The plan is to place full-page ads, in those magazines eventually selected, at a monthly cost of approximately Fifteen Thousand ($15,000.00) Dollars each. We expect each magazine will run an article detailing the company and its unique products. Most important, we expect the publications will provide a list of their subscribers for follow-up direct mailing.
The acquisition of a total lead base of approximately seven million (7,000,000) leads is envisioned through marketing with publications. An additional one million (1,000,000) leads will be purchased from lead based companies.
Amazon Natural Treasures, Inc. will purchase leads of individuals who have regularly purchased, at a minimum, two hundred fifty ($250) dollars worth of health supplements per month for the last twelve (12) months. Amazon Natural Treasures, Inc. has been informed that there are five million (5,000,000) leads available. Utilizing magazines, "infomercials, " direct mail, and lead based companies, Amazon Natural Treasures, Inc. will continue to build their lead base so that potential customers will number in the millions. |
