Albright, Persing & Associates, Ltd.
Certified Public Accountants
Independent Auditor's Report
To the Board of Directors and
Stockholders of Amazon Natural
Treasures, Inc.
We have audited the balance sheet of Amazon Natural Treasures, Inc. as of
December 31, 1998, and the related statements of comprehensive income,
stockholder's equity, and cash flows for the year then ended. 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 Amazon Natural Treasures, Inc. as
of December 31, 1997, were audited by other auditors whose report dated July
17, 1998 expressed an unqualified opinion with a going concern uncertainty on
those statements.
We did not observe the physical inventory in 1998 stated in the accompanying
financial statements at $444,983. The Company's records do not permit the
application of other auditing procedures to inventories. In addition, the
Company does not maintain certain customary accounting records and supporting
documents relating to transactions with suppliers and customers, nor, in our
opinion, is the system of internal control adequate to provide safeguards of
assets and to assure proper recording of transactions. Accordingly, it was
impracticable to extend our procedures sufficiently to determine the extent
to which the financial statements may have been affected by these conditions.
Since inventory at December 31, 1998 enters significantly into the
determination of financial position, results of operations, and cash flows,
and since the Company does not maintain certain customary accounting records
or documents, or an adequate system of internal control, as described in the
preceding paragraph, the scope of our work was not sufficient to enable us to
express an opinion, and we do not express an opinion on the financial
statements referred to above.
As discussed in Note 3, the Company has numerous related party transactions
and is dependent upon a related party supplier for its phytogenics products.
In addition, as discussed in Note 1, the Company is dependent on its ability
to continue to operate within United States Government guidelines for
nutritional supplements
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note 5, the
Company had been in the development stage in years prior to 1998, and the
Company's ability to generate sufficient cash flows to meet its obligations
and sustain its operations, either through future revenues and/or additional
debt or equity financing, cannot be determined at this time. Further, the
Company has sustained losses of $13,645,482 since its inception on June 27,
1995 and has experienced cash flow problems. These uncertainties raise
substantial doubt about the Company's ability to continue as a going concern.
Management's plans in regard to these matters are also discussed in Note 5.
The financial statements do not include any adjustments that might arise from
the outcome of this uncertainty.
/s/ Albright, Persing & Associates, Ltd.
Reno, Nevada
August 19, 1999
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