10QSB/A 1 0001.txt QUARTERLY REPORT U.S. SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-QSB OMB Approval Expires: Approval Pending OMB Number: xxxx-xxxx Estimated Average Burden Hours Per Response: 1.0 (Mark One) X Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended JULY 31, 2000 [ ] Transition report under Section 13 or 15(d) of the Exchange Act For the transition period from to ----------- ----------. Commission file number 0-23356 --------------------- AMERICAN ABSORBENTS NATURAL PRODUCTS, INC. ---------------------------------------------- (Name of Small Business Issuer in Its Charter) UTAH 87-0421089 (State or Other Jurisdiction of IRS Employer Identification Incorporation or Organization) 6015 LOHMAN FORD ROAD, SUITE 100 LAGO VISTA, TEXAS 78645 ------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) 512-267-2221 -------------------------------------------------------------------------------- (Issuer's Telephone Number, Including Area Code) -------------------------------------------------------------------------------- (Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report) Check whether the issuer: (1) filed all reports required to be filed by Section13 or 15(d) of the Exchange Act during the past 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 past 90 days. Yes X No ------------ ---------- APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS Check whether the Registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes__________ No___________ APPLICABLE ONLY TO CORPORATE ISSUERS State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable DATE: JULY 31, 2000 5,588,261 ($0.001 PAR VALUE) COMMON SHARES 294,584 ($0.001 PAR VALUE) PREFERRED SHARES PART I FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS. The following interim consolidated financial statements as of July 31, 2000 and for the six months and quarter then ended, are unaudited, but in the opinion of management, have been prepared in conformity with generally accepted accounting principles applied on a basis consistent with those of the annual audited financial statements and in conformity with the instructions provided in Item 310(b) of Regulation S-B. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete audited financial statements. Such interim financial statements reflect all adjustments (consisting of normal recurring adjustments and accruals) which management considered necessary for a fair presentation of the financial position and the results of operations for the quarters presented. The results of operations for the quarters presented are not necessarily indicative of the results to be expected for the year ending January 31, 2001. The interim consolidated financial statements should be read in connection with the audited consolidated financial statements for the year ended January 31, 2000. SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 Forward looking statements made herein are based on current expectations of the Company that involve a number of risks and uncertainties and should not be considered as guarantees of future performance. These statements are made under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. The factors that could cause actual results to differ materially include but are not limited to: interruptions or cancellation of existing contracts, impact of competitive products and pricing, product demand and market acceptance risks, the presence of competitors with greater financial resources than the Company, product development and commercialization risks and an inability to arrange additional debt or equity financing. 2 AMERICAN ABSORBENTS NATURAL PRODUCTS, INC. AND SUBSIDIARY (A Development Stage Company) Consolidated Financial Statements For the Six Months Ended July 31, 2000 and 1999 (Unaudited) INDEX
PART I. FINANCIAL INFORMATION PAGE NUMBERS Item 1. Financial Statements (Unaudited) 4 Consolidated Balance Sheets at July 31, 2000 and January 31, 2000 4-5 Consolidated Statement of Operations for the three months and quarter 6 ended July 31, 2000 Consolidated Statements of Stockholders' Equity from inception on 7-11 February 9, 1984 through July 31, 2000 Consolidated Statement of Cash Flows for the six months and quarters ended 12-13 July 31, 2000 and 1999 and from inception to July 31, 2000 12-13 Notes to the Consolidated Financial Statements 14-19 Item 2. Management's Discussion and Analysis of Financial Condition and 20-21 Results of Operations PART II. OTHER INFORMATION Item 1. Legal Proceedings 22 Item 2. Changes in Securities 22 Item 3. Defaults Upon Senior Securities 22 Item 4. Submission of Matters to a Vote of Security-Holders 22 Item 5. Other Information 22 Item 6. Exhibits and Reports on Form 8-K 22 Signatures 23 Exhibit 1, Statement of Earnings (Loss) Per Share 24 Exhibit 2, Subsidiary of the Registrant 25
AMERICAN ABSORBENTS NATURAL PRODUCTS, INC. AND SUBSIDIARY (A Development Stage Company) Consolidated Balance Sheets July 31, 2000 and January 31, 2000 (unaudited) ASSETS
JULY 31, 2000 JANUARY 31, 2000 ------------- ---------------- CURRENT ASSETS Cash $ 18,258 $ 9,512 Accounts receivable Trade 8,572 31,447 Prepaid expenses 2,459 17,208 Inventory 340,440 345,851 ---------- ---------- Total Current Assets 369,729 404,018 ---------- ---------- PROPERTY AND EQUIPMENT 502,317 651,984 ---------- ---------- OTHER ASSETS Mining claims 5,081,569 5,081,569 Certificates of deposit 15,000 15,000 Trademarks & product development cost 1,725 1,725 ---------- ---------- Total Other Assets 5,098,294 5,098,294 ---------- ---------- TOTAL ASSETS $5,970,340 $6,154,296 ========== ==========
4 AMERICAN ABSORBENTS NATURAL PRODUCTS, INC. AND SUBSIDIARY (A Development Stage Company) Consolidated Balance Sheets (Continued) July 31, 2000 and January 31, 2000 (unaudited) LIABILITIES AND STOCKHOLDERS' EQUITY
JULY 31, 2000 JANUARY 31, 2000 ------------- ---------------- CURRENT LIABILITIES Accounts payable and accrued expenses $ 387,644 $ 391,938 Note payable 0 155,000 Current portion of related party long-term debt 476,500 252,397 ------------ ------------ Total current liabilities 864,144 799,335 ------------ ------------ COMMITMENTS AND CONTINGENCIES LONG-TERM LIABLITIES Related Party Long-Term Debt, Less Current Maturities 562,388 755,884 ------------ ------------ Total Liabilites 1,426,532 1,555,219 ------------ ------------ STOCKHOLDERS' EQUITY Common stock; authorized 50,000,000 common shares at $0.001 par value 8,478,261 and 7,635,766 shares issued and 5,588,261 and 4,745,766 shares outstanding respectively (2,890,000 in treasury) 8,403 7,560 Preferred stock; authorized 10,000,000 preferred shares at $0.001 par value; 294,584 shares issued and outstanding 295 295 Common Stock Subscription 187,500 0 Common Stock Subscription Receivable (128,744) 0 Capital in excess of par value 10,316,275 10,120,390 Deficit accumulated during the development stage (4,894,921) (4,584,168) Treasury stock (cost of 2,890,000 shares held by the company) (945,000) (945,000) ------------ ------------ Total Stockholders' Equity 4,543,808 4,599,077 ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,970,340 $ 6,154,296 ============ ============
5 AMERICAN ABSORBENTS NATURAL PRODUCTS, INC. AND SUBSIDIARY (A Development Stage Company) Consolidated Statements of Operations July 31, 2000 and 1999 (unaudited)
Second Quarter (three months) Six Months Ended July 31 Ended July 31 From Inception -------------------------- -------------------------- (February 9, 1984) 2000 1999 2000 1999 to July 31, 2000 ----------- ----------- ----------- ----------- ------------------ REVENUES Net sales $ 69,676 $ 18,539 $ 68,937 $ 8,398 $ 568,415 498,739 Cost of goods sold 28,136 12,977 27,693 5,879 344,809 316,673 ----------- ----------- ----------- ----------- ----------- ----------- Gross Profit 41,540 5,562 41,244 2,519 223,606 182,066 ----------- ----------- ----------- ----------- ----------- ----------- EXPENSES General and administrative 481,339 394,599 247,287 215,322 5,041,622 4,560,283 Depreciation and amortization 48,575 47,348 24,288 23,503 287,402 238,827 ----------- ----------- ----------- ----------- ----------- ----------- Total expenses 529,914 441,947 271,575 238,825 5,329,024 4,799,110 ----------- ----------- ----------- ----------- ----------- ----------- Other Income Rent 5,220 5,220 2,610 2,610 32,092 268,72 Interest 379 345 171 173 3,047 2,668 Other Income 57,084 0 0 0 57,084 0 Gain on sale of assets 68,335 0 68,335 0 74,318 5,983 ----------- ----------- ----------- ----------- ----------- ----------- Net Other Income 131,018 5,565 71,116 2,783 166,541 35,523 Net loss before provision ----------- ----------- ----------- ----------- ----------- ----------- for income taxes (357,356) (430,820) (159,215) (233,523) (4,938,877) (4,581,521) Provision for income taxes 0 0 0 0 2,647 2647 ----------- ----------- ----------- ----------- ----------- ----------- Net loss before extraordinary items (357,356) (430,820) (159,215) (233,523) (4,941,524) 4,584,168 Extraordinary gain, modification of note payable, net of taxes 46,603 0 0 0 46,603 0 ----------- ----------- ----------- ----------- ----------- ----------- Net Loss $ (310,753) $ (430,820) $ (159,215) $ (233,523) $(4,894,921) $(4,584,168) =========== =========== =========== =========== =========== =========== Weighted average loss per share $ (0.06) $ (0.06) $ (0.03) $ (0.04) =========== =========== =========== =========== Average shares outstanding 5,063,556 6,944,075 5,282,640 6,538,948 =========== =========== =========== ===========
6 AMERICAN ABSORBENTS NATURAL PRODUCTS, INC. AND SUBSIDIARY (A Development Stage Company) Consolidated Statements of Stockholders' Equity From Inception on February 9, 1984 to April 30, 2000 (unaudited)
Capital Capital Stock Common Stock Preferred Stock Stock Subscription Shares Amount Shares Amount Subscription Receivable --------------------------------------------------------------------------------- Balance at Inception February 9, 1984 -0- $ -0- -0- $ -0- -0- $ -0- Issuance of common stock for cash 37,500 38 -0- -0- -0- -0- Expenses paid by shareholders for the years ended January 31, 1990 -0- -0- -0- -0- -0- -- Net Loss From Inception to January 31, 1990 -0- -0- -0- -0- -0- -0- -------- -------- --------- -------- ---------- -------- Balance at January 31, 1990 37,500 38 -0- -0- -0- -0- Issuance of common stock for services rendered in August 1990 391,000 391 -0- -0- -0- Issuance of common stock in September 1990 for various assets from Austin-Young, Inc. 50,000 50 -0- -0- -0- -0- Issuance of common stock for distribution licenses from Global Environmental Industries (GEI) for UT & WA, September 1990 50,000 50 -0- -0- -0- -0- Contribution from Austin-Young, Inc. -0- -0- -0- -0- -0- -0- Issuance of common stock for services rendered in October 1990 12,500 12 -0- -0- -0- -0- Net loss for the year ended January 31, 1991 -0- -0- -0- -0- -0- -0- -------- -------- --------- -------- ---------- -------- Balance at January 31, 1991 541,000 541 -0- -0- -0- -0- Common stock returned in exchange for common stock of GEI in March 1991 (17,000) (17) -0- -0- -0- -0- Repurchase of common stock from Austin-Young, Inc. in May 1991 (338,000) (338) -0- -0- -0- -0- Deficit Accumulated Additional During the Treasury Paid-in Development Stock Ampount Capital Stage ------------- ---------- ------------ Balance at inception February 9, 1984 $ -0- $ -0- $ -0- Issuance of common stock for cash -0- 962 -0- Expenses paid by shareholders for the years ended January 31, 1990 -0- 518 -0- Net loss from inception to January 31, 1990 -0- -0- (1,618) ------ ------- ------- Balance at January 31, 1990 -0- 1,480 (1,618) Issuance of common stock for services rendered in August 1990 -0- 7,429 -0- Issuance of common stock in September 1990 for various assets from Austin-Young, Inc. -0- 198,890 -0- Issuance of common stock for distribution licenses from Global Environmental -0- 37,070 -0- Industries (GEI) for UT & WA, September 1990 Contribution from Austin-Young, Inc. -0- 13,500 -0- Issuance of common stock for services rendered in October 1990 -0- 37,488 -0- Net loss for the year ended January 31, 1991 -0- -0- (57,756) ------ ------- ------- Balance at January 31, 1991 -0- 295,857 (59,374) Common stock returned in exchange for common stock of GEI in March 1991 -0- (85,423) -0- Repurchase of common stock from Austin-Young, Inc. in May 1991 -0- (64,682) -0-
7
Capital Capital Stock Common Stock Preferred Stock Stock Subscription Shares Amount Shares Amount Subscription Receivable --------------------------------------------------------------------------------- Cancellation of common shares (20,000) (20) -0- -0- -0- -0- Issuance of common stock for the purchase of product from steelhead specialty mineral in August 1991 10,000 10 -0- -0- -0- -0- Issuance of common stock for the purchase of mining claims in October 1991 13,214 13 -0- -0- -0- -0- Common stock canceled by officers/directors in January 1992 (20,000) (20) -0- -0- -0- -0- Contribution from Austin-Young, Inc. -0- -0- -0- -0- -0- -0- Net loss for the year ended January 31, 1992 -0- -0- -0- -0- -0- -0- -------- -------- ------- -------- -------- -------- Balance at January 31, 1992 169,214 169 -0- -0- -0- -0- Issuance of common stock for the acquisition of Geo-Environment Services, Inc. in February 1992 701,800 702 -0- -0- -0- -0- Issuance of common stock for the purchase of mining claims in March 1992 243,000 243 -0- -0- -0- -0- Common stock canceled by officers and directors in June 1992 (32,430) (32) -0- -0- -0- -0- Cancellation of Fractional shares due to reverse stock split (21) -0- -0- -0- -0- -0- Contribution by Austin-Young, Inc. -0- -0- -0- -0- -0- -0- Issuance of common stock (pursuant to a repurchase agreement in May, 1991) to Austin-Young, Inc. for relief of debt in July 1992 3,380,000 3,380 -0- -0- -0- -0- Net loss for the year ended January 31, 1993 -0- -0- -0- -0- -0- -0- -------- -------- ------- -------- -------- -------- Balance at January 31, 1993 4,461,563 4,462 -0- -0- -0- -0- Issuance of common stock for services rendered 17,800 -0- -0- -0- -0- -0- in June 1993 Deficit Accumulated Additional During the Treasury Paid-in Development Stock Ampount Capital Stage ------------- ---------- ------------ Cancellation of common shares -0- 20 -0- Issuance of common stock for the purchase of Product from steelhead specialty mineral in -0- 74,990 -0- August 1991 Issuance of common stock for the purchase of Mining Claims in October 1991 -0- 184,987 -0- Common stock canceled by officers/directors in January 1992 -0- 20 -0- Contribution from Austin -0- 17,000 -0- Net loss for the year ended January 31, 1992 -0- -0- (93,315) ------- -------- -------- Balance at January 31, 1992 -0- 422,769 (152,689) Issuance of common stock for the acquisition of Geo-Environment Services, Inc. in February -0- 96,442 -0- 1992 Issuance of common stock for the purchase of mining claims in March 1992 -0- 4,859,757 -0- Common stock canceled by officers and directors in June 1992 -0- 32 -0- Cancellation of fractional shares due to reverse stock split -0- -0- -0- Contribution by Austin-Young, Inc. -0- 10,000 -0- Issuance Of common stock (pursuant to a repurchase agreement in May, 1991) to Austin-Young, Inc. for relief of debt in July 1992 -0- 61,620 -0- Net Loss for the year ended January 31, 1993 -0- -0- (136,304) ------- -------- -------- Balance at January 31, 1993 -0- 5,450,620 (288,993) Issuance of common stock for services rendered in June 1993 -0- 26,682 -0-
8
Capital Capital Stock Common Stock Preferred Stock Stock Subscription Shares Amount Shares Amount Subscription Receivable --------------------------------------------------------------------------------- Issuance of common stock Austin-Young, Inc. in June 1993 12,000 12 -0- -0- -0- -0- Issuance of common stock for cash October 1993 66,667 67 -0- -0- -0- -0- Issuance of common stock as down payment on building October 1993 6,000 6 -0- -0- -0- -0- Issuance of common stock for services rendered October 1993 17,000 17 -0- -0- -0- -0- Issuance of common stock for cash December 1993 80,072 18 -0- -0- -0- -0- Contribution by Austin-Young, Inc. -0- -0- -0- -0- -0- -0- Net loss for the year ended January 31, 1994 -0- -0- -0- -0- -0- -0- --------- -------- --------- --------- --------- -------- Balance at January 31, 1994 4,661,102 4,662 -0- -0- -0- -0- Issuance of common stock for services rendered February 1994 6,000 6 -0- -0- -0- -0- Issuance of common stock for services rendered in June 1994 41,750 42 -0- -0- -0- -0- Issuance of common stock in a private offering 22,500 22 -0- -0- -0- -0- Issuance of common stock for services rendered in November 1994 15,000 -0- -0- -0- -0- -0- Contribution by Austin-Young, Inc. -0- -0- -0- -0- -0- -0- Net loss for the year ended January 31, 1995 -0- -0- -0- -0- -0- -0- Balance at January 31, 1995 4,746,352 4,747 -0- -0- -0- -0- --------- -------- --------- --------- --------- -------- Issuance of common stock for services 9,000 9 -0- -0- -0- -0- Issuance of common stock in a private offering 214,168 214 -0- -0- -0- -0- Contribution by Austin-Young, Inc. -0- -0- -0- -0- -0- -0- Net loss for the year ended January 31, 1996 -0- -0- -0- -0- --------- -------- --------- --------- --------- -------- Deficit Accumulated Additional During the Treasury Paid-in Development Stock Ampount Capital Stage ------------- ---------- ------------ Issuance of common stock Austin-young, Inc. in -0- 35,988 -0- June 1993 Issuance of common stock for cash October 1993 -0- 199,936 -0- Issuance of common stock as down payment on building October 1993 -0- 29,994 -0- Issuance of common stock for services rendered October 1993 -0- 50,983 -0- Issuance of common stock for cash December 1993 -0- 191,321 -0- Contribution by Austin-Young, Inc. -0- 36,000 -0- Net loss for the year ended January 31, 1994 -0- -0- (310,862) -------- ---------- ---------- Balance at January 31, 1994 -0- 6,021,524 (599,855) Issuance of common stock for services rendered February 1994 -0- 29,994 -0- Issuance of common stock for services rendered in June 1994 -0- 175,458 -0- Issuance of common stock in a private offering -0- 89,978 -0- Issuance of common stock for services rendered in November 1994 -0- 46,235 -0- Contribution by Austin-Young, Inc. -0- 36,000 -0- Net loss for the year ended January 31, 1995 -0- -0- (709,048) -------- ---------- ---------- Balance at January 31, 1995 -0- 6,399,189 (1,308,903) Issuance of common stock for services -0- 22,391 -0- Issuance of common stock in a private offering -0- 394,148 -0- Contribution by Austin-Young, Inc. -0- 36,000 -0- Net loss for the year ended January 31, 1996 -0- -0- (401,467) -------- ---------- ---------
9
Capital Capital Stock Common Stock Preferred Stock Stock Subscription Shares Amount Shares Amount Subscription Receivable --------------------------------------------------------------------------------- Balance at January 31, 1996 4,969,520 4,970 -0- -0- -0- -0- Issuance of common stock for cash in a private offering 130,960 131 -0- -0- -0- -0- Issuance of common stock for services 259,620 260 -0- -0- -0- -0- Net loss for the year ended January 31, 1997 -0- -0- -0- -0- -0- -0- ---------- ---------- --------- --------- --------- ---------- Balance at January 31, 1997 5,360,100 5,361 -0- -0- -0- -0- Issuance of common stock for cash in a private offering (net of commissions of $84,575) 582,000 582 -0- -0- -0- -0- Issuance of common stock for services 129,784 130 -0- -0- -0- -0- Issuance of common stock for purchase of Equipment 13,555 13 -0- -0- -0- -0- Issuance of common stock for cash pursuant to a stock option plan 25,000 25 -0- -0- -0- -0- Issuance of common stock for partial redemption of a note pursuant to a stock option plan 100,000 100 -0- -0- -0- -0- Net loss for the year ended January 31, 1998 -0- -0- -0- -0- -0- -0- ---------- ---------- --------- --------- --------- ---------- Balance at January 31, 1998 6,210,439 6,211 -0- -0- -0- -0- Issuance of common stock in a private placement offering (net of commissions of $53,428) 963,269 963 -0- -0- Issuance of common stock for services 135,480 136 -0- -0- -0- -0- Issuance of common stock for purchase of Equipment 82,063 82 - -0- -0- -0- Net loss for the year ended JANUARY 31, 1999 -0- -0- -0- -0- -0- -0- ---------- ---------- --------- --------- --------- ---------- Balance at January 31, 1999 7,391,251 7,392 -0- -0- -0- -0- Issuance of common stock in a private placement offering 129,001 78 -0- -0- -0- -0- Deficit Accumulated Additional During the Treasury Paid-in Development Stock Ampount Capital Stage ------------- ---------- ------------ Balance at January 31, 1996 -0- 6,851,728 (1,710,370) Issuance of common stock for cash in a private offering -0- 156,729 -0- Issuance of common stock for services -0- 262,359 -0- Net loss for the year ended January 31, 1997 -0- -0- (464,662) ----- --------- ----------- Balance at January 31, 1997 -0- 7,270,816 (2,175,032) Issuance of common stock for cash in a private offering (net of commissions of $84,575) -0- 729,843 -0- Issuance of common stock for services -0- 131,782 -0- Issuance of common stock for purchase of Equipment -0- 15,236 -0- Issuance of common stock for cash pursuant to a stock option plan -0- 9,350 -0- Issuance of common stock for partial redemption of a note pursuant to a stock option plan -0- 37,400 -0- Net loss for the year ended January 31, 1998 -0- -0- (489,525) ----- --------- ---------- Balance at January 31, 1998 -0- 8,194,427 (2,664,557) Issuance of common stock in a private placement offering (net of commissions of $53,428) -0- 1,218,676 -0- Issuance of common stock for services -0- 147,628 -0- Issuance of common stock for purchase of -0- 121,472 -0- equipment Net loss for the year ended January 31, 1999 -0- -0- (961,270) ----- --------- ---------- Balance at January 31, 1999 -0- 9,682,203 (3,625,827) Issuance of common stock in a private placement offering -0- 79,921 -0-
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Capital Capital Stock Common Stock Preferred Stock Stock Subscription Shares Amount Shares Amount Subscription Receivable -------------------------------------------------------------------------------- Issuance of common stock for services 115,514 90 -0- -0- -0- -0- Issuance of preferred stock to redeem debt -0- -0- 142,084 142 -0- -0- Issuance of preferred stock in a private offering -0- -0- 152,500 153 -0- -0- Reacquire common stock for note payable (2,520,000) -0- -0- -0- -0- -0- Reacquire common stock in settlement of note receivable (50,000) -0- -0- -0- -0- -0- Repurchase common stock (320,000) -0- -0- -0- -0- -0- Net loss for the year ended January 31, 2000 -0- -0- -0- -0- -0- -0- ---------- ---------- ---------- --------- ---------- ----------- Balance at JANUARY 31, 2000 4,745,766 $7,560 294,584 $295 -0- -0- Issuance of common stock for services 12,616 13 -0- -0- -0- -0- Issuance of common stock for debt, Compensation, and accrued interest 415,754 416 -0- -0- -0- -0- Issuance of common stock for compensation 100,000 100 -0- -0- -0- -0- Cancellation of common stock issued for compensation (33,000) (33) -0- -0- -0- -0- Issuance of common stock subscription (500,000) -0- -0- -0- -0- 187,500 (187,500) Amortization of common stock subscription receivable earned -0- -0- -0- -0- -0- 58,756 Issuance of common stock for compensation 347,125 347 -0- -0- -0- -0- Net loss for the period ended July 31, 2000 -0- -0- -0- -0- -0- -0- ---------- ---------- ---------- --------- ---------- ----------- Balance at July 31, 2000 5,588,261 $8,403 294,584 $295 $187,500 $(128,744) ========== ========== ========== ========= ========== ============ Deficit Accumulated Additional During the Treasury Paid-in Development Stock Ampount Capital Stage ------------- ---------- ------------ Issuance of common stock for services -0- 65,547 -0- Issuance of preferred stock to redeem debt -0- 140,372 -0- Issuance of preferred stock in a private offering -0- 152,347 -0- Reacquire common stock for note payable (831,600) -0- -0- Reacquire common stock in settlement of note receivable (5,000) -0- -0- Repurchase common stock (108,400) -0- -0- Net loss for the year ended January 31, 2000 -0- -0- (958,341) --------- ----------- ----------- Balance at January 31, 2000 $(945,000) $10,120,390 $(4,584,168) Issuance of common stock for services -0- 4,120 Issuance of common stock for debt, compensation, and accrued interest -0- 136,783 Issuance of common stock for compensation -0- 24,900 Cancellation of common stock issued for Compensation -0- (16,467) Issuance of common stock subscription (500,000) -0- -0- -0- Amortization of common stock subscription receivable earned -0- -0- -0- Issuance of common stock for compensation -0- 46,549 Net loss for the period ended July 31, 2000 -0- -0- (310,753) Balance at July 31, 2000 $(945,000) $10,316,275 $(4,894,921) ========= =========== ============
11 AMERICAN ABSORBENTS NATURAL PRODUCTS, INC. AND SUBSIDIARY (A Development Stage Company) Consolidated Statement of Cashflows
From Inception on Six Months Ended February 9, 1984 July 31 Through 2000 1999 July 31, 2000 ------------ ---------- ---------------- CASH FLOWS FROM OPERATING ACTIVITIES Net Loss (310,753) (197,302) (4,894,921) Extraordinary gain, modification of debt (46,603) 0 (46,603) Depreciation and amortization 48,575 20,513 287,402 (Increase) decrease in receivables 22,875 9,146 (8,572) Decrease (increase) in prepaid expenses 14,749 7,375 9,541 Non Cash Consulting Expense 58,756 0 58,756 Decrease (increase) in inventory 5,411 (32,738) (267,265) Increase (decrease) in payables (4,294) 30,732 350,227 Gain from disposal of fixed assets (68,335) 0 (54,958) Stock issued for services 91,728 0 1,097,343 Expenses paid by shareholder 0 0 149,018 --------------------------------------- Net cash used by operating activities (187,891) (162,274) (3,320,032) --------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Purchase of fixed & other assets (16,000) 27,312 (737,511) Proceeds from Sale of warehouse 185,427 0 185,427 Purchase certificates of deposit 0 0 (15,000) Purchase of product tradenames 0 0 (28,683) Purchase of note receivable 0 0 (5,000) Organization costs 0 0 (1,524) Business Development Costs 0 0 (58,599) Purchase/sale of mining development costs 0 0 7,920 Purchase of mining claims 0 0 150,000 Sale of licenses & other assets 0 0 (65,000) --------------------------------------- Net cash used by investing activities 169,427 27,312 (567,970) --------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Issuance of common stock 0 30,000 3,210,061 Issuance of preferred stock 0 0 152,500 Issuance of notes payable 0 184,145 1,203,031 Purchase of treasury stock 0 0 (108,400) Principal payments on long-term debt (184,492) 0 (762,634) Draw on Line of Credit 211,702 0 211,702 --------------------------------------- Net cash provided by financing activities 27,210 214,145 3,906,260 --------------------------------------- Net (decrease) increase in cash 8,746 79,183 18,258 Cash at beginning of period 9,512 4,966 0 --------------------------------------- Cash at end of period 18,258 84,149 18,258 =======================================
12 AMERICAN ABSORBENTS NATURAL PRODUCTS, INC. AND SUBSIDIARY (A Development Stage Company) Consolidated Statements of Cash Flows (Continued)
From Inception on For the Six Months Ended February 9, 1984 July 31 Through 2000 1999 July 31, 2000 ---------- ---------- ----------------- SUPPLEMENTAL CASH FLOW INFORMATION: CASH PAID FOR: Interest 11,047 6,627 51,937 Income taxes 0 0 2,547 NON-CASH TRANSACTIONS: Stock issued for mining claims 0 0 5,045,000 Stock issued for down payment on building 0 0 30,000 Stock issued for services 91,728 0 1,097,343 Stock issued for stock of Geo-Environmental Services, Inc. (name changed to American Absorbents, Inc.) 0 0 97,144 Stock issued for inventory 0 0 75,000 Stock issued for assets of Austin-Young, Inc. and Global Environmental Industries 0 0 236,000 Stock issued for purchase of equipment 0 0 136,803 Stock issued for redemption of note 105,000 0 142,500 Treasury stock repurchased in exchange for debt 0 0 831,600 Treasury stock repurchased in settlement of note receivable 0 0 5,000 Debt assumed by buyer of fixed asset disposition 0 0 14,281 Preferred stock issued as redemption of debt 0 0 142,084
13 AMERICAN ABSORBENTS NATURAL PRODUCTS, INC. AND SUBSIDIARY (A Development Stage Company) Notes to the Consolidated Financial Statements July 31, 2000 (unaudited) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BUSINESS ORGANIZATION American Absorbents Natural Products, Inc. was incorporated on February 9, 1984 under the laws of the State of Utah and under the name of TPI Land, Inc. as a wholly-owned subsidiary of TPI, Inc. On September 14, 1990, the Company changed its name to Environmental Fuels, Inc. and began developing its involvement in various phases of the conversion of vehicles to operating on compressed natural gas. That developing business was sold on April 23, 1991. On May 6, 1991, the Company changed its name to Geo-Environmental Resources, Inc. and is now developing its involvement in the distribution of zeolite, a mineral product which is an absorbent and has many potential uses such as oil and gas well cleanup, shoe and refrigerator freshener, landfill absorption, and other agricultural uses. On February 6, 1992, the Company acquired the outstanding stock of Geo-Environment Services, Inc., a wholly owned subsidiary involved in marketing of the zeolite products. The transaction was accounted for at historical cost in a manner similar to that in pooling of interest accounting for business combinations. In June 1995, the Company changed its name to American Absorbents Natural Products, Inc. and the name of its subsidiary to American Absorbents, Inc. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of American Absorbents Natural Products, Inc. and its subsidiary American Absorbents, Inc. Collectively, these entities are referred to as the Company. All significant intercompany transactions and accounts have been eliminated. METHOD OF ACCOUNTING The Company recognizes income and expenses according to the accrual method of accounting. Expenses are recognized when performance is substantially complete and income is recognized when earned. Earnings (loss) per share are computed based on the weighted average method. Stock options, preferred stock and convertible debt currently outstanding were not used in calculating earnings per share since the effect would be antidilutive. The fiscal year of the Company ends on January 31 of each year. The financial statements reflect activity from inception, February 9, 1984. CASH AND CASH EQUIVALENTS For purposes of the statements of cash flows, the Company considers all highly liquid debt instruments with a maturity of three months or less to be cash equivalents. NONMONETARY TRANSACTIONS Nonmonetary transactions are transactions for which no cash was exchanged and for which shares of common stock were exchanged for assets or services. These transactions are recorded at fair market value as determined by the board of directors. 14 AMERICAN ABSORBENTS NATURAL PRODUCTS, INC. AND SUBSIDIARY (A Development Stage Company) Notes to the Consolidated Financial Statements July 31, 2000 (unaudited) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) INVENTORIES Inventories are accounted for using the first in, first out (FIFO) method and are valued at the lower of cost or market. Inventories consist of finished goods and packaging materials. ACCOUNTS RECEIVABLE Accounts receivable are shown net of the allowance for doubtful accounts. This amount was determined to be $0 and $0 at July 31, 2000 and 1999 after writing off all accounts determined to be uncollectible. PREPAID EXPENSES Prepaid expenses consist of the following: July 31, 2000 January 31, 2000 -------------- ---------------- Prepaid mining land lease $ 2,459 $ 17,208 MINING CLAIMS Mining claims are stated at the lower of cost or market. Any costs incurred for the betterment or to increase the expected efficiency of the operations related to the extraction from the Company mining claims are capitalized and charged off to operations over the expected economic life of the claims. PROPERTY AND EQUIPMENT The Company has adopted SFAS statement #121, which requires a review of any potential for the impairment of value of any long-lived assets. It is the policy of the Company to annually review the future economic benefit of all long-lived assets and to charge off to operations any potential impairment of value of long-lived assets when applicable. NOTE 2 - DEVELOPMENT STAGE ENTERPRISE The Company, per FASB Statement No. 7, is properly accounted for and reported as a development stage enterprise. Substantially all of the Company's efforts since its formation have been devoted to establishing its new business. No significant revenue has been earned as of the balance sheet date. Operations have been devoted to raising capital, purchasing zeolite property and establishing a marketing plan. Continuation of the development effort is contingent upon the Company raising sufficient capital from shareholders or other sources. It is management's intent to raise capital and further develop the marketing of its zeolite products. 15 AMERICAN ABSORBENTS NATURAL PRODUCTS, INC. AND SUBSIDIARY (A Development Stage Company) Notes to the Consolidated Financial Statements July 31, 2000 (unaudited) NOTE 3 - COMMON STOCK AND STOCKHOLDERS' EQUITY Stock of the Company has been issued for cash, license agreements, mining claims, compensation for services, and in exchange for other stock. During the period ended July 31, 2000, the Company issued shares of stock for services, the payment of debt, and compensation. On March 7, 2000, the Company issued 12,616 shares at $0.33/share for legal services. On April 13, 2000, the Company issued 330,906 shares at $0.33/share for payment of debt and accrued interest. On April 13, 2000, the Company issued 84,848 shares at $0.33/share for payment of accrued salaries to an officer of the Company. On April 27, 2000, the Company cancelled 33,000 shares issued for compensation to two officers of the Company. The shares were issued at $0.50/share. On April 27, 2000 the Company issued 100,000 shares at $0.25/share for compensation to two officers of the Company. On July 21, 2000 the Company issued 500 shares at $0.21/share as part of the judgement directed in the Calkins' lawsuit. On July 21, 2000 the Company issued 21,625 shares at $0.21/share for professional services and as part of the settlement with a former officer of the company. On July 21, 2000 the Company issued 325,000 shares at $0.13/share for consulting and investor relations services. NOTE 4 - MINING CLAIMS The Company has purchased several zeolite mining claims in three different regions in the western United States. All purchases were acquired through stock issuance and are described below. In April 1991 (before acquisition by Geo-Environmental Resources) (now American Absorbents Natural Products, Inc.), the Company's subsidiary issued 440,000 shares of its stock for mining claims containing zeolite in the Mohave County, Arizona region, and the stock given was originally valued at $.50 per share. Thus the mining claims were originally valued at $220,000. Since the value of the mining claims was not readily determined the mining claims were written down to a nominal value. 16 AMERICAN ABSORBENTS NATURAL PRODUCTS, INC. AND SUBSIDIARY (A Development Stage Company) Notes to the Consolidated Financial Statements July 31, 2000 (unaudited) NOTE 4 - MINING CLAIMS (Continued) In October 1991 the Company acquired twenty zeolite mining claims in Harney County, Oregon. The value of the claims was agreed to be $185,000 by the seller and purchaser and 13,214 (132,143 pre-split) shares of common stock were issued. The stock was quoted on the market at $1.40 per share, thus determining the number of shares to be issued for the claims. In December 1991, the Company acquired an additional 203 zeolite mining claims in the Harney County, Oregon region. A geological study was conducted and reserves were estimated at over 477,600,000 tons. The value per ton was also estimated based on mining costs and market value of other companies in the industry. The reserves were then discounted 99 1/2% and a value was determined to be approximately $4,800,000. Stock was then issued at market price to equal the value given to the claims. On July 10, 1997, the Department of the Interior Bureau of Land Management granted approval of the Company's Permanent Mining Permit and Plan of Operations to mine its Harney County, Oregon zeolite properties. To date $100 depletion has been taken on any of these claims. Additional depletion of these assets will begin once material mining operations on these claims begins. NOTE 5 - NOTES PAYABLE During the quarter ended July 31, 2000, total notes payable outstanding increased by $63,657 from the previous quarter due primarily to the draws on the line of credit. Of the remaining three notes payable, all are outstanding to stockholders and bear interest at the rate of 8.25, 10.5%, and 0.00%. On July 24, 2000 the Company closed the sale of the Austin warehouse and paid off the $150,000 loan from Frost National Bank. The Company continued to draw funds on its $215,000 line of credit and as of July 31, 2000 the outstanding balance was $211,702. Subsequent to the end of the quarter, the $118,800 payment due to Austin-Young, Inc. for the first installment of the long-term debt was made through the escrow agent at Frost National Bank. Centre Capital Corp made the funds available as part of the capitalization plan outlined in the definitive agreement signed August 9, 2000. NOTE 6 - PRIVATE PLACEMENT OF COMMON STOCK or PREFERRED STOCK During the second quarter ended July 31, 2000, there was no issuance of private placements of common stock. There were, however, several transactions completed with common stock. The Company issued 500 shares of common stock as part of the judgement in the David Calkins' legal suit. The Company also issued 21,625 shares of common stock as part of a settlement between the company and a former officer. These shares were for services rendered after the officer's departure form the Company. The Company also issued 325,000 shares to two companies hired to provide investor relation services and web site design. These companies will provide service under a one-year contract. 17 AMERICAN ABSORBENTS NATURAL PRODUCTS, INC. AND SUBSIDIARY (A Development Stage Company) Notes to the Consolidated Financial Statements July 31, 2000 (unaudited) NOTE 7 - COMMITMENTS AND CONTINGENCIES The Company has sold two private placements that include a royalty payment. The first private placement includes a $3 per ton per minimum investment on 6,000 tons of zeolite mined and sold. Total royalties paid per minimum investment will be $18,000. The company sold 91 units of this private placement. The second private placement includes a $2 per ton per minimum investment on 10,000 tons of zeolite mined and sold. Total royalties paid per minimum investment will be $20,000. The Company sold 144 units of this private placement. The royalties will be paid simultaneously ($5 per ton) to the shareholders proportionately once the zeolite has been mined and sold. The Company may increase the amount of the royalty payment to any holder of the royalty right above the specified dollar per ton royalty, but in no event will the total royalty payment exceed the maximum per investment. The increase in the royalty amount paid would only decrease the time limit in which the holder of a royalty right would receive the total royalty amount. Royalty payments will be made quarterly after the Company has made its quarterly financial statement filing with the Securities and Exchange Commission and determined the total tonnage that has been mined, milled and sold during the quarter. During the second quarter, the Company's only legal proceeding was concluded: -American Absorbents Natural Products, Inc. v. Calkins A former independent contractor hired to construct the Oregon plant has placed a mechanics lien on the Oregon plant for alleged unpaid claims and the Company has sued to remove the mechanics liens since the claims are being contested. Calkins filed a counter claim seeking damages in addition to his lien. Subsequent to the end of the quarter, this case went to trial and the Court found in favor of Calkins. The Company paid $18,077 in damages and legal fees on July 10, 2000 as ordered by the judge in this action. The Company also issued 500 shares of common stock to Mr. Calkins as part of the judgement. Also during the quarter, the Company reached a settlement with David Redding that finalized any unresolved compensation and outstanding options issues. The Company issued 21,625 shares of common stock to David Redding for services rendered after his resignation from the Company and David Redding agreed to return 100,000 stock options to the Company. NOTE 8 - ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. In these financial statements, assets, liabilities and earnings involve extensive reliance on management's estimates. Actual results could differ from those estimates. NOTE 9 - SUBSEQUENT EVENTS On August 9, 2000, the board of directors approved the sale of American Absorbents Natural Products, Inc. to Centre Capital Corp of Fort Worth, Texas. The basic components of the agreement include a capital infusion of $500,000, a combination of common and preferred shares of Centre Capital and detachable warrants. The agreement in its entirety can be read as an attachment to the 8-K filed August 24, 2000 reporting this event. As of the filing date of this 10QSB, $220,000 had been received from Centre Capital Corp. 18 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION, RESULTS OF OPERATIONS AND PLAN OF OPERATIONS. The Company, per FASB statement No. 7, is properly accounted for and reported as a development stage enterprise. The Company's efforts since entering its current business have been devoted primarily to Company capitalization, acquisition of mining properties, packaging and milling facility acquisitions and product and market development. RESULTS OF OPERATIONS The Company is a development stage enterprise and has incurred losses in each of its fiscal years ended January 31, 1998, 1999 and 2000 and for the quarters ended July 31, 2000, and July 31, 1999. These losses are the result of the continued operating expenses the Company incurs as it develops it niche in the retail and industrial marketplaces. Revenues have been insufficient to cover operating expenses or operational cash flow requirements. A net loss of $159,215 was incurred in the three-month period ended July 31, 2000, compared to a net loss of $233,523 for the same quarter of the previous year. For the six months ended July 31, 2000, the Company incurred a net loss of $310,753 as compared to a net loss of $430,820 for the same period a year ago. Revenue for the quarter ended July 31, 2000 increased to $68,937 from $8,398 for the same quarter the previous year and for the first six months of 2001 and 2000 was $69,676 and $18,539 an increase of $51,137. General and administrative expenses increased by $31,965 from $215,322 to $247,287 during the three months ended July 31, 2000 as compared to the same period of the previous year. Significant expenditures during the second quarter included a charge of $65,880 for consulting services as well as an additional charge of $8,078 for the Calkins' lawsuit. Personnel related expenses decreased by approximately $8,900 from $86,763 for the period ended July 31, 1999 to $77,831 for the period ended July 31, 2000. Legal and accounting fees decreased by approximately $30,000 due in part to the costs associated with the stock buyback and other personnel related matters during the second quarter of last year. For the three months ended July 31, 2000, the Company realized gross profit margins of 60% on revenues of $68,937. An 80,000-unit order of our absorbent pillow line accounted for approximately $57,500 (80%) of total revenues for the quarter. This order was the second order from our distributor that ordered 40,000 units which were shipped in January of this year. During the quarter ended July 31, 2000, the Company also recognized a gain on the sale of the Austin warehouse of $68,335. The ratio of current assets to current liabilities (current ratio) was 0.51, 2.69, 0.77, and 0.47, respectively, for the fiscal years ended January 31, 2000, 1999, 1998 and 1997. The lower current ratio for the fiscal years ended January 31, 1998 and 1997, results from the classification as short-term debt of $179,052 and $202,385, respectively, owed to Austin-Young, Inc., the previous major stockholder of the Company. The lower ratio as of January 31, 2000 is also reflective of the impact of over $407,000 in short-term debt as well as nearly $400,000 in accounts payables and accrued expenses. Current ratios at July 31, 2000 and 1999 were .47 and .50, respectively. The decrease in the current ratio is attributable to an additional $118,800 in long-term debt moving into current liabilities as well as the balance of the line of credit which is scheduled to mature in February of 2001. As of July 31, 2000 the outstanding balance on the line of credit was $211,702. 19 LIQUIDITY AND FINANCIAL CONDITION The Company has financed its operations to date primarily through the sale of equity securities and borrowings from stockholders. The Company has been unprofitable since its inception and has incurred net losses in each year, including a net loss of $159,215 for quarter ended July 31, 2000. Revenues to date have provided insufficient funding of working capital. During the quarter, the Company's primary sources of funding were the $70,000 advanced from the line of credit, the $57,520 received from the collection of outstanding receivables, and approximately $35,000 from the sale of the warehouse. The Company is now fully extended on the line of credit and will have to rely on funding from Centre Capital per the definitive agreement signed August 9, 2000, private placements, and other offerings for future operating and development costs. The $118,800 principal payment on the $831,600 note to Austin-Young was made on August 15, 2000 using the proceeds from the first installment of funds from Centre Capital. Also subsequent to the end of the quarter, Centre Capital provided an additional $100,000 in funding which allowed us to secure the zeolite reserves for an additional year by making the $29,500 payment to the Bureau of Land Management. At July 31, 2000, the Company had $387,644 in accounts payable and accrued expenses; a year ago at July 31, 1999, the Company had $220,755. Notes payable, current and long-term totaled $1,038,888 at July 31, 2000, versus $1,210,368 at July 31, 1999. Management believes it will be able to raise capital to provide for operations and debt service. However, there can be no assurance that additional financing will be available at all or, if available, such financing would be obtainable on terms acceptable to the Company. If adequate financing is not available, the Company may be required to curtail its operation significantly or to obtain funds through entering collaborative agreements or other arrangements on less favorable terms. The failure of the Company to raise capital on acceptable terms would have a material adverse effect on the Company's business, financial condition, and results of operations. During the development stage the Company has paid for almost everything as it was acquired including the build up in inventory levels. As a result, and now that the milling facility is in production, the future cash flow of the Company will benefit as the inventory is converted into sales with the implementation of the marketing efforts. During the development stage the Company incurred losses that reflect the development stage activity of researching and test marketing its products. The Company paid $91,700 to the Bureau of Land Management for the fiscal year ended January 31, 1996 and $29,500 in the fiscal years ended January 31, 1997, 1998, 1999, and 2000. In the future, approximately $29,500 will be due to the Bureau of Land Management in August of each year to satisfy claim maintenance fees on existing claims. The Company's need for warehouse space in Austin, Texas has diminished. Therefore, the Company has been negotiating to sell the warehouse to its current tenant. The sale of warehouse was completed on July 24, 2000. Proceeds from the sale will be used to payoff the loan at Frost Bank which is secured by the warehouse with any remaining funds used to continue operations. The Company did not issue any stock for cash investments into the Company during this quarter. INFLATION The Company does not expect inflation to have any material effect on its revenues, costs or overall operation. 20 PART II OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS. During the quarter ended July 31, 2000 there were no material pending or threatened legal proceedings against the Company or, to the best of the company's knowledge, its directors, officers, affiliates and owners of record or beneficially of more than five percent of any class of voting securities of the Company nor, to the best of the company's knowledge, was there any associate of any such director, officer, affiliate or security-holder who is a party in any action that is adverse to the Company or its subsidiary. (SEE NOTE 7 - COMMITMENTS AND CONTINGENCIES, page 17) ITEM 2. CHANGES IN SECURITIES. During the quarter ended July 31, 2000, there were no material modifications to instruments defining the rights of the holders of any class of registered securities nor were the rights evidenced by any class of registered securities materially limited or qualified by the issuance or modification of any class of securities. ITEM 3. DEFAULTS UPON SENIOR SECURITIES. During the quarter ended July 31, 2000, there was no material default in the payment of principal, interest, sinking or purchase fund installments, or any other material default not cured within 30 days, with respect to any indebtedness of the Company exceeding five percent of the total assets of the Company, nor was there any material arrearage in the payment of dividends with respect to any class of preferred stock of the Company which is registered or which ranks prior to any class of registered securities, or with respect to any class of preferred stock of any significant subsidiary of the Company. (The Company currently has no dividend policy.) ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS. During the quarter ended July 31, 2000, no matters were submitted to a vote of security-holders. ITEM 5. OTHER INFORMATION. No reports were filed on Form 8-K during the quarter ended July 31, 2000. However, On August 24, 2000, the Company filed an 8-K detailing the signing of a definitive agreement with Centre Capital Corp. Centre Capital will acquire American Absorbents Natural Products, Inc. for a combination of common stock, preferred stock, and detachable warrants. Persons wanting additional information may access the 8-K filing through edgar-online.com and on the Centre Capital Corp website (cccx.net). ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) (1) The following financial statements are included in Part I, Item 1: (3) The following exhibits are included for the three months and quarters ended April 30, 2000 and 1999: Exhibit 1 - Computation of Earning (Loss) Per Share 24 Exhibit 2 - Subsidiary of the Registrant 25 All other exhibits are omitted since the required information is included in the financial statements or notes thereto, or since the required information is either not present, not present in sufficient amount or is not applicable. (b) No reports were filed on Form 8-K during the quarter ended July 31, 2000. 21 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. AMERICAN ABSORBENTS NATURAL PRODUCTS, INC. By: /s/ Robert L. Bitterli ------------------------------------ Robert L. Bitterli, Chairman of the Board and Chief Executive Officer Date: September 15, 2000 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the Company and in their capacities and on the dates indicated.
Signature Title Date --------- ----- ---- /s/ Robert L. Bitterli Chief Executive September 15, 2000 ----------------------- Officer and Chairman of the Board Robert L. Bitterli (Principal Executive Officer) /s/ David C. Scott President and Chief Financial Officer September 15, 2000 ------------------- (Principal Accounting Officer) David C. Scott
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