auditors:
sec.gov
A change in auditors resulted in new auditors not being engaged until
February 13, 1998. Late engagement does not allow sufficient time for completion
of audit before the March 15, 1998 due date.
As of June 1997 AZNT advised their auditors were
Conant, Nelson and Conant
3375 S. Alderbaran Avenue
Las Vegas, NV 89102
From the 10K filed 3/31/99
sec.gov
A change in auditors resulted in new auditors not being
engaged until late March of 1999. Late engagement does not
allow sufficient time for completion of the audit before
the March 31, 1999 due date.
On July 17th, 1998 unnamed auditors <s> issued the following:
INDEPENDENT AUDITOR'S REPORT
The Board of Directors and Stockholders
Amazon Natural Treasures, Inc.
4011 West Oquendo Road, Suite C
Las Vegas, NV 89118
We have audited the Balance Sheet of Amazon Natural Treasures, Inc. as of
December 31, 1997 and the related Statements of Income, Retained Earnings,
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,
1996 before the restatement described in Note 17 were audited by other
auditors whose report dated April 26, 1997 expressed an unqualified
opinion with a going concern uncertainty on those statements.
We conducted our audit in accordance with generally accepted auditing stan-
dards. 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 esti-
mates made by management, as well as evaluating the overall financial state-
ment presentation. We believe that our audit provides a reasonable basis for
our opinion.
In our opinion, the 1997 financial statements referred to above present
fairly, in all material respects, the financial position of Amazon Natural
Treasures, Inc. as of December 31, 1997, and the results of its operations
and its cash flows for the year then ended in conformity with generally
accepted accounting principles.
We also audited the adjustments described in Note 17 that were applied to
restate the 1996 financial statements. In our opinion, such adjustments are
appropriate and have been properly applied.
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 guide-
lines for nutritional supplements.
The most recent 10K has the following information:
In early 1999, the Company changed its auditors for two reasons. One was
that due to prior fees due to the auditor, they would lack independence for
the current year audit. Secondly, due to the current litigation against the
prior financiers of the Company and with new sources of capital, the new
capital raising agents and consultants of the Company deemed it appropriate
to change to new auditors.
To the company's and its management's knowledge, there is no accounting
or financial disclosure dispute involving any present or former accountant.
Once again the auditors are properly identified, BUT
there is a notable difference: these auditors have difficulty tracking anything.
What happened with internal controls during this period? Was it because
Linda left that the booking procedures changed? Or....
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
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note 5, the
Company has been in the development stage. Further, the Company has sustained
losses of $8,830,151 since its inception on June 27, 1995 and has experienced
cash flow problems. Realization of a major portion of the assets is depen-
dent upon the Company's ability to meet its future financing requirements,
and the success of future operations. These factors raise substantial doubt
about the Company's ability to continue as a going concern. The financial
statements do not include any adjustments that might result from the outcome
of this uncertainty.
Las Vegas, Nevada
July 17, 1998
For those not aware of Dubrule...
On October 4, 1996, the Company entered into an Agreement For Consulting
Services with Domingos Loricchio on one hand and RPD, LCC, ("RPD") a California
Limited Liability Company owned and controlled by one Dick Dubrule, on the other
hand, wherein RPD would be compensated with $200,000 or 10% of the gross monies
paid to the Company which ever is greater if RPD raised money for the Company in
excess of $1,000,000. Further, RPD would receive 15% of the gross receipts paid
to the Company as a result of RPD locating buyers for the products. Further, in
the event that the Company seeks assistance from RPD, for any reason, the
Company will pay RPD $2,000 per day for such services. Further, the Company
agreed to sell 500,000 shares of common stock to RPD at a purchase price of
$0.05 per share. RPD assigned it rights to the sale of stock to Dubrule and
James Palecek ("Palecek"), an attorney representing Dubrule. Dubrule and Palecek
paid the $25,000 and the Company issued 250,000 shares each to Dubrule and
Palecek.
And further back another auditor stated the following:
AMAZON NATURAL TREASURES, INC.
SUPPLEMENTAL INFORMATION
For the Years Ended December 31, 1996 and 1995
FS-1
<PAGE> 31
ACCOUNTANT'S OPINION ON SUPPLEMENTARY INFORMATION
My audit of the basic financial statements presented in the preceding
section of this report was made primarily to form an opinion on such financial
statements taken as a whole. Supplementary information, contained in the
following page, is not considered essential for the fair presentation of the
financial position of the Company, the results of its operations or the
statements of cash flows in conformity with generally accepted accounting
principles. However, the following data was subjected to the audit procedures
applied in the examination of the basic financial statements, and, in my
opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
/s/ Schvaneveldt & Company
Schvaneveldt & Company
April 26, 1997 |
