-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VXERPpEBAbmw4HzfBSoRKR6O1bwpdw4tyVmUrQ7KLd91hm/3URogHlXaCnQt1rRW 42mM69lwqZzy1X1ywWQasA== 0000891020-97-001512.txt : 19971120 0000891020-97-001512.hdr.sgml : 19971120 ACCESSION NUMBER: 0000891020-97-001512 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971119 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMAZON NATURAL TREASURES INC CENTRAL INDEX KEY: 0000844055 STANDARD INDUSTRIAL CLASSIFICATION: BLANK CHECKS [6770] IRS NUMBER: 870460880 STATE OF INCORPORATION: UT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 033-26109 FILM NUMBER: 97724223 BUSINESS ADDRESS: STREET 1: 4011 WEST OQUENDO ROAD STREET 2: UNIT C CITY: LAS VEGAS STATE: NV ZIP: 89118 BUSINESS PHONE: (702) 795-4333 MAIL ADDRESS: STREET 1: 6020 SOUTH SPENCER ST STREET 2: STE B7 CITY: LAS VEGAS STATE: NV ZIP: 89119 FORMER COMPANY: FORMER CONFORMED NAME: CONCORD CAPITAL INC /UT/ DATE OF NAME CHANGE: 19960306 FORMER COMPANY: FORMER CONFORMED NAME: MULTIMEDIA FACTORY INC DATE OF NAME CHANGE: 19930825 FORMER COMPANY: FORMER CONFORMED NAME: CONCORD CAPITAL INC DATE OF NAME CHANGE: 19920703 10QSB 1 10QSB FOR THE QUARTER ENDING SEPT 30, 1997 1 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, 1997 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.) 87-0460880 4011 W. OQUENDO AVENUE, SUITE C LAS VEGAS, NEVADA 89118 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) 4386 SOUTH EASTERN AVENUE LAS VEGAS, NEVADA 89119 (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. 2 September 30, 1997 Common Voting Stock 48,009,589 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. 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 first 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, 1996, the Company lost $56,001. In the year-to-date ended September 30, 1997, the Company lost $906,042.00, which is offset by assets in the amount of $1,217,069.00. PLAN OF OPERATION In March 1996, the Board of Directors approved an exchange of common shares with Amazon Natural Treasures, Inc., a privately held Nevada Company. Amazon Natural Treasures, Inc., is a multi-faceted company which is a Phytogenics(R) 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 their advertised ingredient(s). Ninety percent is filler. All of Amazon Natural Treasures, Inc. Phytogenics(R) 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(R) products since 1972. In 1995 a decision was made to enter A.N.T. products into the world market. 3 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(R)" 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. The company also plans to provide "on-line" support, which will allow the company to be interactive with its customer base. Thus, a "web-site" and individual Internet address has been established. This website address is www.amazon-treasures.com. It is predicted customers will have on-line forum discussions and this will lead to additional marketing opportunities. Videos and cd-roms will be available. These videos and cd-roms will be designed to show how to use our more unique product, particularly the teas. 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 Phytogenics(R) 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. 4 Sales will be obtained through the introduction of other Amazon products from the Brazilian Amazon rain forest such as sports drinks, soft drinks, a 100% natural sweetener, teeth whitening chewing gum, aids preventive cream as well as rare earth elements. Those additional products will include hand-carved items made from gems, found in the Amazon, for which the company has obtained exportation rights. Typically, these products will involve carvings of birds found in the Amazon and can consist of: tanzanite, peridot, lolite, garnet, citrine, aquamarine or amethyst. The birds will be accompanied with certified appraisals of their value. It is anticipated these birds also can be sold in the catalog. 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 anticipated 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 additional 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 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. 5 AMAZON NATURAL TREASURES, INC. BALANCE SHEET SEPTEMBER 30, 1997
ASSETS CURRENT ASSETS Cash in bank $ 161,688 Petty cash 2,000 Employee advances 2,475 Inventory-bottles/bagged 216,535 Inventory-raw material 21,146 Inventory-birds 33,323 Prepaid insurance 5,838 443,005 PROPERTY AND EQUIPMENT-AT COST Office furniture and equipment 87,415 Clean room & equipment 187,493 Laboratory equipment 36,262 Warehouse equipment 115,562 Computer equipment 24,586 Automobiles 7,590 458,908 Less: accumulated depreciation (70,333) 388,575 OTHER ASSETS Construction in process 151,741 Refundable deposits 57,885 Organization costs-net 45,863 Prepaid logos, trademarks, etc. 125,000 Licenses 5,000 385,489 TOTAL ASSETS $1,217,069
6 AMAZON NATURAL TREASURES, INC. BALANCE SHEET SEPTEMBER 30, 1997
LIABILITIES & STOCKHOLDERS' EQUITY CURRENT LIABILITIES Current maturities of long-term debt $ 4,464 Less: current unamortized discount (2,437) 2,027 Accounts payable 145,805 Payroll taxes payable 4,668 Sales/use tax payable 10,000 Accounts payable-related parties 116,358 Notes payable-related parties 22,090 300,948 LONG-TERM DEBT Notes payable 22,319 Less: current maturities (4,464) Less: unamortized discount (4,882) 12,973 313,921 STOCKHOLDERS' EQUITY COMMON STOCK 500,000,000 common shares authorized at $0.001 par value 48,009,589 shares issued and outstanding 48,010 ADDITIONAL PAID IN CAPITAL 1,761,180 RETAINED EARNINGS (DEFICIT) (906,042) 903,148 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $1,217,069
7 AMAZON NATURAL TREASURES, INC. STATEMENT OF INCOME (LOSS) AND RETAINED EARNINGS (DEFICIT) FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1997
CURRENT TO-DATE BALANCE BALANCE INCOME Sales-non-taxable $ 8,779 $ 30,770 Interest income 942 1,716 9,721 32,486 COST OF SALES Purchases 2,595 8,508 Processing costs 155 1,311 Freight-in 720 720 Shipping expense 3,408 10,795 Commissions 175 6,878 21,509 GROSS PROFIT 2,843 10,977 OPERATING EXPENSES 326,782 678,333 OPERATING LOSS (323,939) (667,356) NET LOSS $ (323,939) $ (667,356) BEGINNING RETAINED EARNINGS (DEFICIT) (238,686) ENDING RETAINED EARNINGS (DEFICIT) $ (906,042)
8 AMAZON NATURAL TREASURES, INC. STATEMENT OF CASH FLOWS JULY 1, 1997 TO SEPTEMBER 30, 1997 AND JANUARY 1, 1997 TO SEPTEMBER 30, 1997
7/1/97 TO 1/1/97 TO 9/30/97 9/30/97 Cash flows from operating activities Net loss $ (323,939) $ (667,356) Adjustments to reconcile net loss to net cash Amortization 17,943 18,829 Depreciation 36,443 47,858 Changes in operating assets & liabilities Increase in accounts receivable (2,475) (2,475) Increase in inventory (159,356) (232,854) Decrease(Increase) in prepaid expenses 1,928 (5,838) Increase in deposits (15,000) (52,215) Increase in accounts payable 176,428 209,646 Net cash used by operating activities (268,028) (684,405) Cash flows from investing activities Equipment purchases (320,970) (389,473) Investment in amortizable assets (150,000) (182,668) Investment in building construction (78,269) (151,741) Net cash used by investing activities (549,239) (723,882) Cash flows from financing activities Increase(Decrease) in notes payable 10,300 (4,853) Sale of common shares 858,333 1,575,438 Net cash provided by financing activities 868,633 1,570,585 Increase in cash 51,366 162,298 Cash at beginning of period 112,322 1,390 Cash at end of period $ 163,688 $ 163,688 Disclosures from operating activities Interest paid from 7/1/97 to 9/30/97: $5,980 Interest paid from 1/1/97 to 9/30/97: $7,254
9 SUPPLEMENTARY INFORMATION AMAZON NATURAL TREASURES, INC. BALANCE SHEET SCHEDULES SEPTEMBER 30, 1997
SCHEDULE OF ACCUMULATED DEPRECIATION Furniture and fixtures $ (6,722) Laboratory equipment (13,636) Clean room equipment (34,104) Warehouse equipment (12,373) Computer equipment (2,486) Automobiles (1,012) $ (70,333) SCHEDULE OF NOTES PAYABLE Note payable-American Express Capital Finance $ 15,000
10 AMAZON NATURAL TREASURES, INC. SCHEDULE OF OPERATING EXPENSES FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1997
CURRENT TO-DATE BALANCE BALANCE Accounting-outside $ 3,510 $ 30,275 Advertising 8,593 8,955 Amortization 17,943 18,828 Apartment leases 13,742 13,742 Auto & truck 2,238 6,234 Auto lease 7,377 19,227 Bank charges 173 813 Bank charges-credit cards 463 1,008 Casual labor 2,432 15,493 Clean room supplies 813 3,774 Consulting fees 87 85,004 Depreciation 36,443 47,858 Donations 500 500 Dues & subscriptions 2,940 4,223 Entertainment 3,718 6,168 Equipment rental 1,289 3,623 Furniture lease 990 1,118 Insurance-group 3,838 4,229 Insurance-general 9,961 11,864 Interest 5,980 7,254 Janitorial 298 737 Laboratory supplies 2,261 2,311 Legal 27,260 40,399 Licenses & taxes 982 3,014 Miscellaneous 146 146 Moving expense 240 Nevada business tax 1,257 Office expenses 7,828 20,367 Penalties 21 Printing 459 609 Postage 2,535 4,646 Professional services 6,589 11,639 Promotional 6,904 39,535 Rent 14,085 43,346 Repairs & maintenance 1,844 3,701 Research & development 2,294 5,704 Salaries & wages 55,958 83,257 Taxes-payroll 8,323 11,827 Taxes-corporate 162 162 Telephone 21,421 34,868 Travel 38,190 72,889 Utilities 2,064 3,319 Warehouse supplies 4,149 4,149 $ 326,782 $ 678,333
11 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. 12 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: By: -------------------------- ----------------------------------- Michael Sylver President & Chief Financial Officer Date: By: -------------------------- ----------------------------------- Robert Qualey Secretary/Treasurer THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE (AUDITED) AND THE CONSOLIDATED STATEMENT OF INCOME FOR THE 9 MONTHS ENDING SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. EX-27 2 FINANCIAL DATA SCHEDULE
5 9-MOS DEC-31-1997 JAN-01-1997 SEP-30-1997 163,688 0 2,475 0 271,004 443,005 458,908 (70,333) 1,217,069 300,948 12,973 0 0 48,010 855,138 1,217,069 30,770 32,486 21,509 21,509 678,333 0 7,254 (667,356) 0 (667,356) 0 0 0 (667,356) (.01) (.01)
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