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
MARCH 31, 1999 33-26109
AMAZON NATURAL TREASURES, INC.
(Exact name of registrant as specified in its charter)
NEVADA
(State or other jurisdiction of incorporation or organization)
88-0460880
(I.R.S. Employer Identification No.)
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.
Yes (X) No ( )
State the number of shares outstanding of each of the registrants classes of
common stock, as of the latest practicable date.
As of August 20, 1999, 17,726,255 shares of common stock were outstanding.
AMAZON NATURAL TREASURES, INC.
Table of Contents
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Balance Sheets - March 31, 1999 and
December 31, 1998 3
Condensed Statements of Operations for the Three
Months Ended March 31, 1999 and 1998 4
Condensed Statements of Cash Flows for the Three
Months Ended March 31, 1999 and 1998 5
Notes to Condensed Financial Statements 6
Item 2. Management's Discussion and Analysis or Plan of
Operation 7
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 2. Changes in Securities and Use of Proceeds 13
Item 6. Exhibits and Reports on Form 8-K 13
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 SHEETS
MARCH 31, 1999 AND DECEMBER 31, 1998
(Unaudited)
ASSETS
March 31, December 31,
1999 1998
----------- -----------
CURRENT ASSETS:
Cash $ 32,969 $ 2,161
Accounts receivable 8,146 6,017
Inventories 464,586 444,983
Prepaid expenses 6,408 1,345
Total Current Assets 512,109 454,506
----------- -----------
PROPERTY AND EQUIPMENT, NET 613,634 560,210
----------- -----------
OTHER ASSETS
Deposits 23,731 23,731
Organization costs 41,646 41,646
Licenses and trademarks 128,000 128,000
----------- -----------
Total Other Assets 193,377 193,377
----------- -----------
TOTAL ASSETS $ 1,319,120 $ 1,208,093
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Bank overdraft $ 15,733 $ 15,733
Notes payable-Current 24,469 -
Accounts payable 354,269 354,269
Payroll and other accrued
liabilities 167,571 148,153
Shareholder loans and related
parties payable 210,005 140,758
----------- -----------
Total Current Liabilities 772,047 658,913
----------- -----------
Long-term debt - 105,947
----------- -----------
Deferred revenue 76,000 76,000
----------- -----------
STOCKHOLDERS' EQUITY:
Preferred stock 52,795 52,795
Capital stock 26,813 15,965
Additional paid-in capital 15,233,307 14,943,955
Stock subscription receivable (1,000,000) (1,000,000)
Retained earnings (deficit) (13,841,842) (13,645,482)
----------- -----------
Total Stockholders' Equity 471,073 367,233
----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 1,319,120 $ 1,208,093
=========== ===========
<FN>
AMAZON NATURAL TREASURES, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
For the For the
Three Months Three Months
Ended Ended
March 31, March 31,
1999 1998
----------- -----------
SALES $ 40,628 $ 44,757
----------- -----------
COST OF SALES 1,574 4,543
----------- -----------
GROSS PROFIT 39,054 40,214
----------- -----------
EXPENSES:
General and administrative 235,414 182,983
Depreciation and amortization - -
----------- -----------
TOTAL OPERATING EXPENSES 235,414 182,983
----------- -----------
Net (loss) before other items (196,360) (142,769)
OTHER INCOME (EXPENSE)
Interest expense - -
----------- -----------
NET (LOSS) BEFORE TAXES (196,360) (142,769)
PROVISIONS FOR INCOME
TAXES - -
----------- -----------
NET (LOSS) $ (196,360) $ (142,769)
=========== ===========
EARNINGS (LOSS) PER SHARE $ (0.01) $ (0.00)
=========== ===========
WEIGHTED AVERAGE SHARES
OUTSTANDING 17,394,335 32,546,949
========== ==========
<FN>
AMAZON NATURAL TREASURES, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
For the For the
Three Months Three Months
Ended Ended
March 31, March 31,
1999 1998
----------- -----------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss $ (196,360) $ (142,769)
Adjustments to reconcile
net loss to net cash used
in operating activities:
Depreciation and
amortization - -
Changes in assets and
liabilities:
(Increase) decrease in
accounts receivable (2,129) -
(Increase) decrease in
employee advances - (1,306)
(Increase) decrease in
inventories (19,603) 29,934
(Increase) decrease in
notes receivable - 3,825
(Increase) decrease in
prepaid expenses (5,063) 3,000
(Increase) decrease in
deposits - 5,885
Increase in accounts payable
and accrued liabilities 19,418 106,554
----------- -----------
Net cash used in operating
activities (203,737) 5,123
----------- -----------
CASH FLOWS FROM INVESTING
ACTIVITIES:
(Increase) in organization
costs - (4,217)
Purchase of property and
equipment (53,424) (133,585)
----------- -----------
Net cash used in investing
activities (53,424) (137,802)
----------- -----------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of common
stock, net 300,200 55,195
Increase in loans and
affiliate advances (12,231) (82,260)
----------- -----------
Net cash provided by
financing activities 287,969 (27,065)
----------- -----------
Net Increase (decrease) in
Cash 30,808 (159,744)
CASH AT BEGINNING PERIOD (13,572) 128,332
----------- -----------
CASH AT END OF PERIOD $ 17,236 $ (31,412)
=========== ===========
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest expense $ - $ -
=========== ===========
AMAZON NATURAL TREASURES, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 1999
(Unaudited)
1. The unaudited condensed financial statements printed herein have been
prepared in accordance with the instructions to Form 10-QSB and do not include
all the information and disclosures required by generally accepted accounting
principles. Therefore, these financial statements should be read in conjunction
with the financial statements and related footnotes included in the Company's
Form 10-KSB for the year ended December 31, 1998. These financial statements
reflect all adjustments that are, in the opinion of management, necessary to
fairly state the results for the interim periods reported.
2 The results of operations for the three months ended March 31, 1999 are not
necessarily indicative of the results to be expected for the full year.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL STATEMENTS
INTRODUCTION
The character and holdings of the Company has remained substantially the same
since the preceding fiscal year. During the first quarter of the current
fiscal year the company has sought to expand its business by obtaining and
securing clients in the nutritional products market. This is the primary
business and focus of the Company. The readers of the current unaudited
statements are referred to the Company's Annual Report as filed for the
calendar year ended December 31, 1998, for a more in-depth view of the
Company's financial position, results of operations and changes in cash
flows. Accordingly, management's discussion as set forth below focuses
primarily on the quarter ended March 31, 1999.
LIQUIDITY
During the three months ended March 31, 1999, the Company's working capital
decreased by approximately $131,531. The Company does not currently have
sufficient capital in its accounts, nor sufficient firm commitments for
capital to assure its ability to meet its current obligations or to continue
its planned operations. The Company is continuing to pursue working capital
and additional revenue through existing and new clients, but there is no
assurance that any of the planned activities will be successful.
CAPITAL RESOURCES
As a result of its limited liquidity, the Company has limited access to
additional capital resources. The Company does not have the capital to
totally fund the obligations that have matured or debts that remain
currently payable or other debts incurred during the most recent fiscal quarter.
The Company currently has been funded by loans from outside parties and through
the sale of newly issued restricted common stock of the company.
The Company has received additional capital through the expansion of vendor
financing.
The Company has met its current obligations and been funding the operating
losses from this outside capital. The management of the Company is seeking
addition private financing from certain outside parties to continue to
pursue the business activities of the Company. Though the obtaining of
the additional capital is not guaranteed, the management of the Company
believes it will be able to obtain the capital required to meet its current
obligations and pursue its business activities.
OPERATIONS
In the previous year ended December 31, 1998, the Company has been seeking to
obtain new clients, distributors and an increase in its internet traffic to
increase sales. During the most recent quarter, these efforts have
continued and the Company expects a substantial increase in the sales
of its nutritional products.
In the previous year the Company had substantial gem sales, and though the
Company still offers this product line, minimal gem sales have occurred in
1999.
The Company has sought to reduce its operating overhead until it is successful
in securing new client business and the related cash flows from such activities.
However, due to the legal costs for current litigation, general and
administrative costs have continued to increase.
Until such time as the Company is able to obtain the revenues needed from its
operations to meet its obligations, the Company will be dependent upon
sources other than operating revenues to meet its operating and capital
needs. Operating revenues may never satisfy these needs.
The current market the Company operates under is a very competitive market and
there exists many other competitors with greater capital and contacts in the
industry seeking the same clients. The company believes it will obtain a
certain percentage of such clients to generate the revenues needed to
continue its business plans. Until then, the Company will need
additional capital other than that provided through its operations.
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.
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 PhytogenicTM products 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.
Natures Taste (TM), Product No. AR124:
Natures Taste (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.
Natures Taste (TM) has characteristics which allow it to be used in the
same application as sugar (saccharose or sucrose).
The Nutritional Facts analysis found that "Natures Taste (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. "Natures Taste (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, "Natures Taste (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 Natures Taste (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 a major distributor who
will then be selling our product, Natures Taste (TM), to major distributors.
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
Treasures, 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) NATURES TASTE CHEWING GUM: Natures Taste Chewing Gum contains no
sugar because it is sweetened with NATURES TASTE 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.
NATURES TASTE 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 NATURES TASTE: 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 extraordinary
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 and 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 or telephone. 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 non-competing,
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.
Year 2000 Assessment
The Company has begun its assessment of the potential effects of the Year
2000 issue on the Company's operations. The assessment is in two parts.
First, an evaluation of the Company's computer systems and equipment with
embedded computer chips for Year 2000 compliance. The majority of the
Company's computers and software have been acquired within the last two years.
Therefore, management anticipates only minor Year 2000 compliance problems with
its computer systems.
The second part of the assessment process involves the Year 2000 readiness
of third parties. There are two primary issues related to the evaluation of
the potential impact on the Company.
First, interruption of the services provided by local public utilities,
namely power and telephone service, would have a material negative impact on
the Company's operations. Based on attendance at seminars and public reports,
management believes that the local utility service providers are actively
working on their Year 2000 compliance issues. At this time, management
believes that no interruption of service will occur.
Second, significant Year 2000 problems with the Company's major customers
and suppliers could have a material negative impact on the Company's
operations. At the present time the company does not have any one major
customer that it believes would have a major impact from the Year 2000
problems. Certain shipping may cause delays in sending the Company's
products to customers, but this will be the same impact that all
manufacturers will incur from shipping companies, postal services and other
transportation companies.
As to the suppliers, most of the raw materials purchased from the natives
of the Amazon jungle. Any negative impact would be caused by the shipping of
the products to the United States through transportation companies as mentioned
in the previous paragraph. The Company does not expect any major shipping
delays and believes it will have enough raw materials on hand to deal with
any impact from the Year 2000 problems.
Based on current information, management does not anticipate the Year 2000
issue will have a material impact on the Company's operations.
Forward Looking Statements
The statements in this Form 10-QSB that are not historical facts or
statements of current status are forward-looking statements (as defined in
the Private Securities Litigation Reform Act of 1995) that involve risks and
uncertainties. Actual results may differ materially.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
As of December 31, 1998, the Company was involved in several lawsuits.
The first lawsuit was related to securities transactions. The Company has
received a default judgement against several investors who were issued stock in
exchange for a promise to pay the Company $1,000,000, calling for the return
of the stock and damages as a result of stock fraud.
The Company has been ordered to issue 224,000 shares of stock, initially
issued to a former consultant, which was subsequently canceled by the
Company due to a recession of the transaction resulting in the initial
issuance. These shares were pledged as collateral for a loan to the former
consultant.
The second lawsuit involves a breach of contract suit. An arbitration
award of $88,000 has been entered against the Company regarding a breach of
contract lawsuit. The Company is currently appealing the decision.
ITEM 2. CHANGES IN SECURITIES
Recent Sales of Unregistered Securities:
Following is a summary of sales of unregistered securities for the first
three months of 1999. All securities were issued as restricted common
shares, which are subject to Rule 144 of the Securities and Exchange
Commission. Generally, Rule 144 requires shareholders to hold the
shares for a minimum of one year before sale. In addition, officers, directors
and more than 10% shareholders are further restricted in their ability to
sell such shares. There have been no underwriters of these securities and
no commissions or underwriting discounts have been paid.
Shares Value
Transaction Description Issued Received
- --------------------------------- --------- ------------
Sale of 144 common stock for cash 1,084,800 $300,200
Consulting and operating expenses 345,000 $ 34,500
The above transactions qualified for exemption from registration under
Sections 3(b) or 4(2) of the Securities Act of 1933. Private placements for
cash were non-public transactions. The Company believes that all such
investors are either accredited or, either alone or with their purchaser
representative, have such knowledge and experience in financial and business
matters that they are capable of evaluating the merits and risks of the
prospective investment.
Cancellation of Securities
Based on the lawsuit mentioned above under legal proceedings, the Company
has cancelled in August of 1999 close to 13,000,000 shares of its issued and
outstanding common stock. This will result in the remaining shares of
common stock issued and outstanding to be under 5,000,000.
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: 08/30/99 By: MICHAEL A. SYLVER
-------- ----------------------------------
Michael Sylver, President & Chief
Financial Officer
Date: 08/30/99 By: DOMINGOS LORICCHIO II
-------- ----------------------------------
Domingos Loricchio II
Secretary/Treasurer