Points for consideration:
No auditors involved ?
No transfer agent
Cost of sales
Inventory
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.
(is their opinion comforting to investors?)
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
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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
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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
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TOTAL OTHER ASSETS $414,066
TOTAL ASSETS $1,636,860
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----------
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
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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)
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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
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TOTAL COST OF SALES 11,627 21,509
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GROSS PROFIT 480,035 10,978
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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
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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)
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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. |
