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Microcap & Penny Stocks : Amazon Natural (AZNT) -- Ignore unavailable to you. Want to Upgrade?

To: tonto who wrote (13350)	12/3/1998 10:53:00 AM
From: Janice Shell	Read Replies (1) \| Respond to of 26163

Is this thing a quarterly earnings report, or an ad for AZNT products? Who'd they use for auditors? The Talking Indian? I'd really like to know. They seem to have paid quite a bit for his services, but so MUCH of the usual stuff one finds in a 10Q is missing. "Material events", for example: is the resignation of a transfer agent, and the company's subsequent decision to become self-transfer, not a "material event"? "Legal proceedings - NA": NA?? How so? All kinds of legal proceedings are in progress, one way or the other. "Changes in securities - NA": Again? I'd say that converting insiders' common (but no one else's) to preferred certainly constitutes a major "change in securities". "Submission of matters to a vote of security holders - NA": What DID go on at that "shareholders' meeting" that nobody seems to have attended? Note also that there's no mention of legal expenses anywhere. Why not? My understanding is that they're mounting up. What about the company's ability to continue in business? They have almost no cash. Just a few preliminary points...

To: tonto who wrote (13350)	12/3/1998 11:21:00 AM
From: Janice Shell	Read Replies (1) \| Respond to of 26163

Funny. Seems that the longs who were so eagerly awaiting the appearance of this document have entirely disappeared. I'd have thought they'd want to comment. In any case, we see that for this quarter the company reported total revenues of $491,662. Yet... The Company is actively and aggressively engaged in a strategic program to eliminate the illegal shorting of their stock which will allow the Company to, once again, fulfill their $5,000,000 private placement. This will allow the Company to continue with its catalog sales and marketing program. Once implemented, the gross revenue based on industry sales figures will be an estimated $195,000,000 per annum to start. $195MM?? Uh-huh. Is that anything like the more modest, but equally unachievable, $95MM predicted for this fiscal year? Note as well that the company is saying that unless it continues to make private placements, it will be strapped for capital. And a bit more than that is implied by the relevant paragraph...

To: tonto who wrote (13350)	12/3/1998 1:01:00 PM
From: tonto	Read Replies (1) \| Respond to of 26163

COST OF SALES: Comments on AZNT's penny stock accounting procedure? 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 For manufacturers, the method for compiling the cost of goods sold (or, more accurately, the cost of goods manufactured) is different than the way it is done for retailers and wholesalers. This is because a manufacturer's costs come from both the acquisition of raw materials to create a product and the costs related to its manufacture. For a manufacturer, the cost of goods sold is divided into two categories: direct costs and indirect costs. Direct costs include inventory costs based on beginning and ending inventories — computed in the same manner as retailers, and it also includes the costs of raw material, and work-in-process inventories, PLUS direct labor costs. Indirect costs include indirect labor, factory overhead, and materials and supplies. Because of these additions, the cost of goods manufactured is often compiled as a separate statement. Information from the separate statement is then incorporated into the P & L statement. Here is information on each of the data categories for manufacturers: Labor - Direct labor is the cost of labor to convert raw materials into finished products. Indirect labor includes other factory personnel such as shipping personnel or maintenance workers. Factory Overhead - Includes the following: depreciation of plant and equipment; factory utilities — light, heat, and power; insurance; real estate taxes; and the wages of supervisors and others who do not work directly to create the product. Materials and Supplies - Consumed in the production of goods are included in the direct cost of goods sold for manufacturers. Supplies that are not consumed during the manufacturing process are included as indirect costs. For manufacturers, if containers or packaging is an integral part of the product, then these expenses are included in the costs of goods sold. If they are not integral to the product, then these expenses would be recorded as selling expenses. (I must admit, if their pharmaceutical manufacturing plant can generate almost $500,000 worth of sales with only a processing expense of $135.00, this company will kill all competitors... How do they do that?)

To: tonto who wrote (13350)	12/3/1998 2:14:00 PM
From: tonto	Read Replies (2) \| Respond to of 26163

The problems with the company have become very clear. It is worth the time for all interested to slowly review each line item. Naturally, it becomes very obvious where the money is going...Look at consulting fees for the quarter, look at office rent for the quarter, look at telephone, cars, apartment, travel...Look at how management has set up the company, made decisions regarding obligations...the pattern is disturbing. Another interesting entry is the receivables balance. Basically the company currently has zero receivables. Burning cash... And for those wondering about accounting: Note 2: Accounting Policies (A) The Company uses the accrual method of accounting. (B) Revenues and cost of sales are recognized when sales are consummated. Be very careful.