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

To: Janice Shell who wrote (13359)	12/3/1998 1:34:00 PM
From: Jeffrey S. Mitchell	Respond to of 26163

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 ---------- 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 ------- ------ 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 -------- -------- Total Adjustments (2,199) 109,323 -------- -------- 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) ---------- --------- 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.

To: Janice Shell who wrote (13359)	12/3/1998 1:53:00 PM
From: Jeffrey S. Mitchell	Respond to of 26163

AMAZON NATURAL TREASURES INC 10QSB (Part 2 of 2) The company eventually plans to publish its own catalog/magazine. The cover will feature a full color photograph of the Amazon Rain Forest with the company's logo prominently displayed. Inside, there will be messages from the principals of the company, a history of the rain forest, and a history of the company. An explanation of the company's purpose and adoption of "phytogenics " or the treatment of ailments through plants and other naturally occurring products, will also be included. The magazine will contain a chart consisting of possible symptoms/ailments people may be suffering from and corresponding product(s) customers can purchase for their treatment. Each product will be individually presented and explained on its own page. The benefits of each product, how it works, and how it should be used will be illustrated. It is anticipated articles by respected researchers and medical professionals will be included. These articles will correspond to the natural theme of the company. There will be other attractions in the magazine for the consumer, such as monthly pullout calendars and full-color pictures of the rain forest will be featured. These photographs will be unique and collectable. To this end all the photographs will be numbered and in a limited quantity. Customer testimonials, with photographs, will be included each month. There will be a "Letter to the Editor" selection each month with answers to customer's questions. Amazon Natural Treasures, Inc. is pleased to announce that the construction of the "WEBSITE OF THE FUTURE" is now well underway. This "WEBSITE OF THE FUTURE" will be a fully interactive internet website. It has been said that Amazon Natural Treasures, Inc.'s "WEBSITE OF THE FUTURE", once fully implemented, will be a major contender for a variety of awards dealing with internet site and graphic designs. Not only will the "WEBSITE OF THE FUTURE" be an immense educational source, but will also be a major selling tool for all of Amazon Natural Treasures, Inc.'s unique PhytogenicTM products. There are now over 127 spectacular PhytogenicTM nutritional supplements available from the Brazilian Amazon Rain Forest. Amazon Natural Treasures, Inc. will continuously add new supplements to their product line. Precious stoned carved birds, figurines and top quality gemstones such as rubies, emeralds, aquamarines, etc. will also be available for sale on the "WEBSITE OF THE FUTURE". We invite you to view our Website now as it is under construction at WWW.AMAZON-TREASURES.COM. The site can be expanded upon at any time, but initial development will include the following attributes: On Line Customer Service: Customers will be able to ask for help on product information, etc. They will also be able to access this information either via keyboard, voice or video conferencing depending on their computer capabilities. On Line Secure Ordering: Customers can order products with "peace of mind" that their credit cards will be safe using AT&T Buy/Safe secured ordering. All orders will be processed for immediate shipment. Order PhytogenicTM Products on Line: Customers can access Amazon Natural Treasures PhytogenicTMproducts and ordering information in a variety of manners. Ask the Indian: Customers will be able to ask the Indian a specific question in regards to their health or one of Amazon Natural Treasures 100% pure natural PhytogenicTM products either through use of their voice control or their keyboard. The Indian will answer them in his own voice while the text of his speech is being printed on the screen for easy downloading. Product by Name: When the customer is looking for a specific 100% pure and natural Amazon Natural Treasures PhytogenicTM product, they can easily access all the information on the product by double clicking on the name or by speaking the name into their microphone. Product by Product Number: Many of our customers prefer to order or access information on Amazon Natural Treasures 100% pure and natural PhytogenicTM products by product number. This is easily done by double clicking on the product or by speaking the product number into their microphone. Ailments and Recommended Products: For the customer who does not have a lot of time, they can easily access the products and ordering information on Amazon Natural Treasures 100% pure and natural PhytogenicTM products by double clicking on their ailment or by speaking their ailment into their microphone. The recommended 100% pure and natural PhytogenicTM product will then immediately pop-up onto the screen. Specialty Listing: This list of Amazon Natural Treasures 100% pure and natural PhytogenicTM products is for customer's specialized needs. Here, they will find products for specialized needs such as aphrodisiacs, antacids, antidepressants, anti-inflammatories, antioxidants, antiseptics, estrogens, finger nail hardener, hair and skin formulas, premature aging, skin wrinkles, tranquilizers and many more. When the customer has located their specific specialized need, they can easily access the information by double clicking on the specialized need or by speaking the name of the specialized need into the microphone. The complete listing of all the products for that particular specialized need will pop-up onto the screen. By the saying the name of a particular product, the customer can either access the information via voice or via text. See Your Order on Line: Through video conferencing, the customer will be able to actually see all the products, the precious and semi-precious stone birds, and stone figurines. The customer will be able to pick and choose the color, size, shape, type, etc. while talking on line with one of our certified gemologists before their purchase. Ordering Through Video Conferencing: Through video conferencing, the customer will be able to pick and choose the actual gem stone by color, size, weight and quality. Discussion Forums: Customers will be able to check on line for times and dates when noted doctors from Amazon Natural Treasures medical advisory board will be on line ready to answer their questions about their medical queries or our PhytogenicTM products. The noted professionals will be viewed by the customer via video conferencing. Customer Interacting: 24 hours a day, customers will be able to log onto the interactive discussion group. Here, customers will be able to compare notes, discuss the merits of Amazon Natural Treasures' products either through the keyboard or their voice pad. This will all be integrated through Amazon Natural Treasures' own in-house server. Real Time Audio and Video: Amazon Natural Treasures "state of the art" website will feature the latest technology available on the Internet utilizing "Real Player Plus" and "MegaPeg" for the ultimate in on line communication. On Line Multi-Media: The website will feature a vast array of "one of a kind" photographs of the Brazilian Amazon Rain Forest. Our photographs will be accompanied by a cover story and can easily be down loaded. The art gallery will also include spectacular photographs of thousands of "one of a kind" Indian artifacts. The sub text will explain their origins, uses, and tribes in which they originated from. These artifacts may personally be viewed at Amazon Natural Treasures retail store showroom and museum located in Las Vegas, Nevada. You will also be able to listen to the sounds of the jungle in beautiful hi-fi stereo via real audio that is available for free downloading. Investors Corner: Here, visitors to the "Website of the Future" will be able to follow the latest stock quotes, retrieve fundamental financial information, read press releases, and can also link to other sites for on line stock transactions. E-Mail: With just one click of the mouse, customers will have the ability to send us standard keyboard or voice E-Mail which will be answered immediately 24 hours a day! Screen Savers: Visitors to the Amazon "state of the art" website will have the ability to download the most exquisite, never seen before, screen savers. Some of which will include live action along with its own audio. Amazon Natural Treasures plans to harness the expansive growth and interest of the Internet worldwide and plans to use its website as a major revenue producer for the sale of the company's products. The company anticipates the website to generate hundreds of millions of dollars in revenue annually. It has been proven that the excitement of the Internet, properly promoted, can be a tremendous tool for stock market relations, broker dealers, and underwriters. There are many companies that just utilize the Internet for their total sales and have based their initial public offerings around the sale of their products on the Internet. We, at Amazon Natural Treasures, plan to take this one step further by utilizing the immense power of the Internet as a sales tool along with the direct marketing catalog sales and magazine advertising campaign to capture all spectrums of the over one hundred billion dollar annual consumer market for these products. This may also be the basis for a future public offering that will no doubt bring broker dealer and underwriter enthusiasm and support. The benefit and effectiveness of our products have been demonstrated, throughout the ages, by people who continue to use them. The inhabitants of the Amazon, as well as many others have taken the products for their ailments and achieved astonishing results. Amazon Natural Treasures, Inc. can be characterized as a leader in bringing to the world Phytogenic products. The company believes in complete control from the harvesting of the products through sale to the end user. Only through this business principle (vertical integration) can high quality standards be controlled and enforced. Touch of Nature (TM), Product No. AR124: --------------------------------------- Touch of Nature (TM) is a 100% pure natural product derived from the sap and leaves of a small tree found in the Brazilian Amazon Rainforest. This variety of tree has been named "Natures Taste" by one of the Company's founders, Dr. Domingos Loricchio. The sap, necessary for the product, is extracted from the Natures Taste tree in much the same manner as maple sap is obtained from maple trees in the United States and Canada. The leaves are then crushed to extract essential ingredients which are combined with the sap in a process which ultimately results in the wonderful product. Touch of Nature (TM) has characteristics which allow it to be used in the same application as sugar (saccharose or sucrose). The Nutritional Facts analysis found that "Touch of Nature (TM)" per serving has 0 fat, 0 cholesterol, 0 sodium, 0 carbohydrates and 0 protein. It also leaves no after taste as do some synthetic sweeteners, is also non-fermentable, yet is equal or better in taste than cane sugar. "Touch of Nature (TM)" possesses natural properties that permit its use and an ideal sugar substitute for calorie restricted diets or for those suffering with diabetes. As a result, "Touch of Nature (TM)" may have application in treatment programs for all forms of diabetes. This product is a delightfully surprising alternative for those individuals who prefer not to use regular sugar or do not wish to use artificial sweeteners. These qualities allow for its use as a sugar substitute in all drinks, hot or cold, as well as your favorite cooking recipes. Amazon Natural Treasures, Inc. is actively and aggressively opening new sales markets through retail distribution of Touch of Nature (TM) in health food stores throughout the country. It is the Company's goal to actively solicit not less than 1,000 stores to retail this product prior to the end of September 1998. New retail stores are being added on a daily basis. Based on each store selling 50 bottles per month, the estimated gross revenue per year initially is estimated at $2,700,000. The Company has chosen five of the best moving and most popular dietary supplements recognized throughout the United States which are: Product Number Product Name -------------- ------------ AW004PA Zuedon AW0043PR Pau D'Arco AW0072PA Una de Gato AD0100PA Akana AD0127PA Super Amazon Guarana The products will also be sold in our 1,000 store retail base. Based on each store selling 100 bottles per month, the estimated gross revenue per year initially is estimated at $18,000,000. The Company has finalized a brokerage agreement with SGN Sales who will then be selling our product, Touch of Nature (TM), to major distributors such as: Mountain People Nature's Best Tree of Life West The following are a few major retailers: Whole Foods Wild Oats Trader Joes Larry's Thri Food for Thought Food Conspiracy Rainbow Grocery PCC HairLife (TM) - Scalp Enhancement System (TM): --------------------------------------------- The Company has begun sales and marketing of HairLife (TM) Scalp Enhancement System (TM). HairLife(TM)'s unique properties work gradually and continuously on the scalp providing a stimulating topical action due to its Phytogenic (TM) ingredients. Initially, HairLife (TM) stimulates scalp pore activity allowing the product to penetrate deep into the capillary bulbs supplying fast acting nutrients and unique cellular stimulants that gradually induce the cells to regenerate and restart their biological function. As an added bonus, HairLife (TM) delivers fast absorbing nutrients that restore dry and damaged hair. The miraculous properties of HairLife (TM) retards hair loss that is either due to heredity or other causes such as nutritional deficiencies and allopathic prescription medication side effects. Once the HairLife (TM) Scalp Enhancement System (TM) is administered, a reduction in hair loss can be noticed in as little as four to six (4-6) weeks while the actual hair re-growth process generally starts in a timeframe of sixty to ninety (60-90) days. At the beginning stages, the new hair that will grow as a direct result of the administration of HairLife (TM) on the scalp will grow at a lesser rate. (Approximately half (1/2) that of normal growing rate). HairLife (TM) has been used and tested in Brazil with remarkable results stemming over a twenty-two (22) year period. At this time, Amazon Natural Treaures, Inc. is pleased to be able to bring this Brazilian Amazon wonder hair growth product to receding hair and balding scalps worldwide! Based on representations made at a presentation by the Company at the 1998 Barbers Convention held in Las Vegas, Nevada and based on 2,500 barbers selling 6 units per month, the estimated gross revenue per year initially is estimated at $8,100,000. 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. The Company also has other products ready for marketing. The kick-off date for these new products is set at a very strategic timeline. The first of these products to be marketed to the public is: a) TOUCH OF NATURE CHEWING GUM: Touch of Nature Chewing Gum contains no sugar because it is sweetened with TOUCH OF NATURE SWEETENER. It has zero calories, no cholesterol, no carbohydrates, no fat, non-fermentable, completely safe for diabetics, has NO AFTER TASTE, and comes in a variety of flavors. It has no harmful side effects as some chewing gum on the market today that contain chemicals such as Phenylalanine or Calcium Saccharin, which has been determined to cause cancer in laboratory animals. TOUCH OF NATURE CHEWING GUM is like no other chewing gum you've ever chewed before because it: - Will start to whiten your teeth within three minutes of chewing without bleaching or without any harmful effects to the teeth and gums. - Can be used instead of brushing along with a regular flossing regiment. - Prevents cavities. - Improves resistance of the gums to bacteria and diseases. - Kills germs and freshens your breath while chewing. - Is fortified with Vitamin C with all natural Amazon Rain Forest Phytogenics. - Keeps its flavor after most gums have quit, and remains soft. - Will not stick to dentures or dental work. b) SPORTS DRINK: There is a fruit that grows underneath the Amazon waters in the river). This fruit is the worlds greatest source of pure energy and vitamin C. The molecular size of the pulp of the fruit is so small that it is the only pure vitamin C and energy that is absorbed through the intestines, but through the wall of the stomach. We make it complete with 100% natural fruit juices - no artificial flavors through a patented process called plasma water. Our own, Dr. Loricchio is able to change the molecular structure of water to do an extraction on fruit to basically get out 100% of the essence (let's say strawberries) so we can transfer that essence into our "sports" drink. c) FLAVORED TOUCH OF NATURE: Such as Cappuccino an Hot Chocolate plus many more new products that cannot be divulged at this time. The aforementioned along with many new and unique advertising marketing tools and products will be set for dissemination in the up-coming months. The Company's management believes that this will create an extaordinary revenue stream which will in turn make Amazon Natural Treasures, Inc. a viable entity while successfully building stockholders equity. The company is presently operating at 4011 West Oquendo Road, Suite C, Las Vegas, Nevada 89118 (Corporate Offices); 3977 West Oquendo Road, Suite C, Las Vegas, Nevada 89118 (Investor Relations); 6435 South Valley View Boulevard, Suite G, Las Vegas, Nevada 89118 (Distribution Center); Rua Dona Cesaria Fagundes, 209 Vila Mariana Sao Paulo/ SP-Brasil CEP 04054-030; Rua Belem, 1036 Facing Rue Recife, Andrianopolis, Manaus Brazil; 470 North Rivermeade Drive, Unit #7, Concord, Ontario, Canada L4K3R8. The anticipate demand, in the North American market, is expected to be particularly strong. Evidenced by the fact that even though A.N.T. has recently commenced importing these products, and has yet to commence an official marketing campaign, "word-of-mouth" has already created a positive reaction, which has required the ordering of addition products. Once it is felt the North American market is being fully maximized, the company will look to international markets for expansion. The company has established important relationships with officials of the Government of Brazil. These officials have expressed an interest in establishing a museum, dedicated to the Amazon area, in Las Vegas, Nevada. They feel Las Vegas is an ideal location to promote the Amazon and its many assets due to the high number of visitors from throughout the world. This would be a joint venture between Amazon Natural Treasures, the Brazilian government, State of Nevada, and local authorities. Amazon Natural Treasures would be responsible for the day to day management. This project should give our company world-wide exposure and, it is hoped, provide the momentum for a weekly spin-off of a television series dedicated to the 2,700,000 square miles of the Brazilian rain forest. The company has negotiated a favorable price schedule for the harvesting of their products; this should allow for a strong profit margin on sales. In turn, it should result in a healthy bottom line for the company. The company will offer monthly specials so customers can take advantage of by sending in coupons throughout the catalog/magazine. Order forms will be included throughout the catalog/magazine. Customers will be able to place their orders by e-mail, u.s. mail ortelephone. Amazon Natural Treasures will accepts checks, money orders, ATM or Debit cards, and all major credit cards. There will be a shipping and handling charge added to all orders. It is anticipated, at some point, circulation of Amazon Natural Treasures' catalog/magazine will reach significant numbers of people. At that time, advertising space will be sold to health-related, but noncompeting, companies for their products. The revenue generated will offset the costs associated with the catalog/magazine. Amazon Natural Treasures is poised to enter and capture a segment of the multi-billion dollar market in health supplements and create a new market niche for the rest of their unique product lines. PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS None; not applicable. ITEM 2. CHANGES IN SECURITIES None; not applicable. ITEM 3. DEFAULTS UPON SENIOR SECURITIES None; not applicable. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None; not applicable. ITEM 5. OTHER INFORMATION None; not applicable. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (A) Exhibits None. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this to be signed on its behalf by the undersigned thereunto duly authorized. AMAZON NATURAL TREASURES, INC. Date: 12/02/98 By: MICHAEL A. SYLVER __________________________ ___________________________________ Michael Sylver, President & Chief Financial Officer Date: 12/02/98 By: DOMINGOS LORICCHIO II _________________________ ___________________________________ Domingos Loricchio II Secretary/Treasurer TYPE: EX-27 SEQUENCE: 2 DESCRIPTION: ARTICLE 5 FIN. DATA SCHEDULE FOR 3RD QTR 10QSB ARTICLE: 5 MULTIPLIER: 1 PERIOD TYPE: 9-MOS FISCAL YEAR END: DEC-31-1998 PERIOD START: JAN-01-1998 PERIOD END: SEP-30-1998 CASH: 45584 SECURITIES: 0 RECEIVABLES: (2123) ALLOWANCES: 0 INVENTORY: 388434 CURRENT ASSETS: 442348 PP&E: 858415 DEPRECIATION: (77967) TOTAL ASSETS: 1636860 CURRENT LIABILITIES: 485700 BONDS: 0 COMMON: 31743 PREFERRED MANDATORY: 0 PREFERRED: 0 OTHER SE: 1082974 TOTAL LIABILITY AND EQUITY: 1636860 SALES: 490156 TOTAL REVENUES: 491662 CGS: 11627 TOTAL COSTS: 11627 OTHER EXPENSES: 522586 LOSS PROVISION: 0 INTEREST EXPENSE: 0 INCOME PRETAX: (42551) INCOME TAX: 0 INCOME CONTINUING: (42551) DISCONTINUED: 0 EXTRAORDINARY: 0 CHANGES: 0 NET INCOME: (42551) EPS PRIMARY: (.001) EPS DILUTED: (.001)