UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934.
For the quarter ended September 30, 2000 Commission file number 000-27931
DESERT HEALTH PRODUCTS, INC.
(Exact name of registrant as specified in its charter)
Arizona 86-0699108
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
8221 E Evans Rd
Scottsdale, Arizona 85260
(Address of principal executive offices) (Zip Code)
(480) 951-1941
Registrant's telephone number, including area code
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 ______
As of November 9, 2000, there were 7,763,971 shares of common stock
outstanding.
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DESERT HEALTH PRODUCTS, INC.
FOR THE QUARTER ENDED
SEPTEMBER 30, 2000
INDEX
PART I - FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Balance Sheet as of September 30, 2000 3
Income Statement of Operations
ending September 30, 2000 4
Statement of Cash Flow for the three months 5
ending September 30, 2000
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operation 6-17
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 17
Item 2. Changes in Securities 17
Item 3. Defaults by the Company upon its
Senior Securities 17
Item 4. Submission of Matter to a Vote of
Security Holders 17
Item 5. Other Information 13
Item 6. Exhibits and Reports of Form 8-K 17
SIGNATURES 18
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DESERT HEALTH PRODUCTS, INC.
BALANCE SHEET AS OF
SEPTEMBER 30, 2000
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
ASSETS
<S> <C>
Current Assets
Cash $29,738
Accounts Receivable 14,288
Inventory 139,810
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Total Current Assets 183,836
Property and Equipment
Furniture and equipment
and Leasehold Improvements 135,395
Less: Accumulated Depreciation (15,676)
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119,719
Other Assets
Intangibles, net of amortization 1,020,384
Notes receivable 487,850
Deposits 10,000
Other 41,518
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1,559,752
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TOTAL ASSETS 1,863,307
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LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
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Current Liabilities
Accounts Payable 178,239
Current Portion of LongTerm Debt 479,256
--------
Total Current Liabilities 657,495
Long term Liabilities
Notes Payable 185,987
-------
Total Long Term Liabilities 185,987
Stockholders Equity
Common Stock, $.001 par value,
25,000,000 shares authorized and
7,763,971 shares issued and outstanding 7,764
Subscription receivable (1,000)
Preferred Stock, $.001 par value,
10,000,000 authorized and
1,273,500 shares issued and outstanding 1,273
Additional Paid in Capital 2,666,610
Accumulated Deficit (1,654,822)
------------
1,019,825
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,863,307
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DESERT HEALTH PRODUCTS, INC.
STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDING SEPTEMBER 30, 2000
<S> <C>
Revenue $ 37,250
Cost of Sales (23,432)
---------
Gross Profit 13,818
Operating Expenses 238,283
-----------
Loss from Operations (224,465)
Other Expense
Interest Expense 1,913
-----------
Net Loss before provision for income taxes (226,378)
==========
Beginning Accumulated Deficit (1,428,505)
------------
Ending Accumulated Deficit (1,654,883)
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Earnings per common share $ (0.03)
============
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DESERT HEALTH PRODUCTS, INC.
STATEMENT OF CASH FLOW
FOR THE THREE MONTHS ENDING SEPTEMBER 30, 2000
<S> <C>
Cash Flows from Operating Activities
Cash received from customers $ 37,250
Cash paid to suppliers and employees (117,266)
------------
Net Cash Provided (Used) in Operating Activities (80,016)
Net Cash Provided by Investing Activities 14,037
Cash Flows from Financing Activities
Issuance of stock 92,000
--------
Net cash Provided by financing activities 92,000
Net Decrease in Cash and Cash Equivalents 26,021
Beginning Cash and Cash Equivalents 13,717
---------
Ending Cash and Cash Equivalents $ 39,738
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Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
The following discussion and analysis should be read in conjunction with
the Company's financial statements and the notes thereto contained elsewhere
in this filing.
Overview
Desert Health Products, Inc.'s efforts in the third quarter continued to
center on aggressively expanding its abilities to penetrate the European and
Asian marketplaces. The Company continued its development and expansion
program via on-site shows and education programs for specific countries. In
September 2000, Thor Lindvaag and Dr. Dennis Harris, presented seminars
throughout Europe introducing Dr. Harris' Original Snore Formula to the
foreign market. Revenues were not realized from this market during the third
quarter due to Europe's usual July and August holiday season.
Of great excitement to management is the joint venture with
www.Everfill.com which is expected to produce substantial business for Desert
Health in the Business-to-Business and Business-to-Customer fields of
pharmaceutical items. Initial launch was projected for August 2000. However,
due to the delay in obtaining the Pharmacy Brokers permit, the first sales
are projected to occur in the first quarter of 2001.
The investment cost of the one-time fee for the Everfill license, the
start-up charges to establish the Company's new office in Beijing, China, and
the expense of the European tour created additional third quarter expenses.
However, management believes these expenses are necessary in order to launch
and support Desert Health in Beijing and the Company's websites.
DesertthealthRX.com website is completed and will be fully operational by
January 1, 2001. Desert Health's contract with Everfill has been finalized.
Licensing requirements in the Middle East are expected to be finalized by the
first quarter in 2001.
Desert Health's new board member, William T. Walker, Jr., is Chairman
and President of Walker Associates, a Beverly Hills, California-based
corporate finance consulting firm. Mr. Walker has over forty years experience
in the capital markets industry. Mr. Walker has been a member of the board of
the Securities Industry Association, Chairman of the California District
Securities Industry Association, Governor of the Pacific Stock Exchange,
President of the Bond Club of Los Angeles, and a member of the American Stock
Exchange Advisory Committee. Mr. Walker graduated from Culver Military
Academy and attended Stanford University.
The Company, an Arizona corporation, (the "Company") was formed in 1991
to develop dietary supplement products from natural plant extracts. The
Company is focusing its development efforts on certain plants and plant
extracts that are widely used to enhance the life style of those desiring
better health throughout the United States, Europe, Asia and South America.
The Company identifies and quantifies the properties within plant sources
that are believed to provide therapeutic or other health benefits and to
produce dietary and herbal supplements.
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Herbal supplements are multi-molecule compositions extracted or
otherwise derived from plants. Herbal products have been used for centuries
throughout the world to treat a variety of diseases and physical conditions.
In recent years, health consciousness and the increasing popularity of `all
natural' products have contributed to a growth in public interest in herbal
and nutraceutical therapies.
The worldwide market for natural dietary supplements is substantial.
According to NUTRITION BUSINESS JOURNAL, approximately 30 Billion dollars
were spent in the United States for non-prescription, plant-derived dietary
supplements, with sales, according to the BOSTON GLOBE, having increased over
20% annually in the last few years. In addition, according to THE WALL STREET
JOURNAL EUROPE, approximately $18 billion was spent in Europe for
prescription and over-the-counter ("OTC") multi-molecule, plant-derived
products. Asia is according to the U.S. Department of Commerce one of the
fastest growing markets for natural and herbal products with U.S. produced
items increasing in acceptance.
The Company's formulations are innovative and groundbreaking and have a
proven record of success with a commitment to purity, quality, research
information and support with affiliated global distribution capabilities. The
Company has over 100 registered Trademarks in over twenty countries
worldwide. The Company offers the customers a choice of turnkey or customized
private label options and the ultimate in sophisticated formulations to
choose from.
In order to offer the appropriate line of products to fill any market
niche or tailor products to diverse cultures, a variety of product
information in seven languages is available. All proper documents such as
Certificates of Free Sale, Certificates of Analysis, Certificates of
Manufacture, Flow Charts, and Standard Operating Procedures are available.
All of the Company's products are available in tablets, capsules, bulk,
blended powders, private labeled or branded. All products are manufactured in
FDA approved facilities according to GMP standards.
General
The Products
VITAMIN AND MINERAL SUPPLEMENTS
At Desert Health Products, Inc. we ensure the highest quality vitamin
and mineral supplements available. All our products go through a range of
rigorous tests, from the raw materials to the end tablet or capsule. The
ingredients are thoroughly tested for purity, potency, microbial content, and
dissolution analysis, and only the finest ingredients are utilized for the
Company's vitamin and mineral supplements. Our in-house research and
development department supports all of the products. The Company strives to
give the customer the best quality vitamins and minerals at the most
competitive price.
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VITAMINS
Antioxidant - The Company's antioxidant is formulated to achieve optimum
results and is designed to work synergistically with our multi-vitamin and
multi-mineral tablets. Antioxidants neutralize free radicals that can cause
damage to cells, impairing the immune system. *
Multi Vitamin Tablets - Our multi vitamin tablets are synergistically
blended to give maximum benefits. *
MINERALS
Multi Mineral Tablets - Desert Health Products, Inc. multi mineral
tablets contain a complete balance of easy-to-absorb minerals. *
Chromium Picolinate - Chromium Picolinate is a mineral that helps to
increase lean body mass, lower blood cholesterol levels, increase endurance,
and regulate blood sugar. It enhances metabolism and promotes permanent fat
loss. *
Colloidal Minerals - Colloidal Minerals Premium Blend provides over 70
major and trace minerals in a natural concentrate that is easy to absorb. *
Selenium PlusT - Selenium is an essential trace element in humans. *
Super Minerals w/Aloe VeraT - Super Minerals w/Aloe Vera provides the
benefit of easily absorbed minerals and the health promoting qualities of
Aloe Vera. *
CHINESE HERBAL PRODUCTS by Master Herbalist Dr. Henry Han
Desert Health Products, Inc. introduces six unique products based on
classic Chinese formulas originally developed through 3000 years of medical
practice as well as current clinical and laboratory studies. These products
embody Chinese medicines basic philosophy of balance, integrating prevention
and treatment of illness while enhancing well being and quality of life.
These products were individually formulated by master herbalist, Dr. Henry
Han, who drew from over 20 years of clinical experience and research to
design formulas to be agreeable to the typical body type of westerners.
Restoring Essence IT - This product is formulated for the treatment of
weakness and fatigue, or to enhance vitality and energy in healthy
individuals. *
Restoring Essence II T - This product is formulated for the treatment of
premature and/or accelerated aging, or for promoting youthfulness and
retarding the aging process in healthy individuals. *
In 1980, a team of Chinese medical experts specializing in aging-related
illnesses from Longhua Hospital of Shanghai University of Traditional Chinese
Medicine analyzed thousands of ancient herbal formulas that had been
developed over a 1,400 year period between the Sui and Qin Dynasties (circa
<PAGE>
500 A.D. to 1900). The researchers identified 124 classic formulas claimed
anti-aging or promoting longevity. About a dozen formulas were eventually
selected and then integrated into a single formula. It was named `Restoring
Essence' and put through extensive clinical and laboratory testing. The
results were published, since 1983, in a series of reports in numerous
medical journals involving over two thousand patients. The studies concluded
that the formula has remarkable therapeutic effects on a wide range of
symptoms associated with aging: weakness and fatigue, degenerative change in
spine and joints, dizziness or light-headedness, frequent urination or
weakened urinary control, insomnia, etc. It can also significantly improve
the body's cellular immune functions, increase muscle strength, delay the
occurrence of osteoporosis, and counteract the original hypertension.
Laboratory studies also confirmed that the formula markedly extends the life
span of lab mice and silk worms, aids body's ability to repair DNA damage and
slows down the degeneration of sex organs, thymus, lung and liver cells due
to aging. *
Liquijade ElixirT - This product is formulated to treat heartburn,
indigestion and epigastric pain due to gastric reflux, superficial gastritis,
peptic ulcer and hiatal hernia. *
Qi Bars - The bars are formulated with 100 percent natural herbal
ingredients, with no added sugar, starch, food coloring, artificial
preservatives or yeast. *
Herpes CalmT - This product is formulated to control the outbreak of
herpes simplex through strengthening of the immune system and suppressing the
herpes simplex virus. Herpes Calm can significantly reduce the frequency and
intensity of symptoms. *
Flu and Cold ClearT - This formula is most effective in alleviating the
discomforts of the flu and common cold when taken at the onset of symptoms
and resolve infections swiftly at their early stage. It also provides
protection against potential infection during flu season when exposed to risk
factors such as infected individuals and closed environments (airplanes,
offices and school yards.) *
Dr. Henry Han is a consultant and an advisor to Desert Health Products,
Inc. and is the agent in charge of the Company's new office facility in
Beijing, China. This office will enable the Company to supply to its
worldwide customer base the finest in Chinese herbs, standardized to Dr.
Han's requirements.
SPECIALTY SUPPLEMENTS
The Company uses current scientific research to create our innovative
specialty supplements. We search worldwide to find the naturally derived
ingredients utilized to formulate these powerful products. All of these
supplements contain targeted nutrition, to provide safe and effective natural
remedies for common ailments.
AlcotrolT - Kudzu extract, the main ingredient in Alcotrol, has been
used widely in China and Japan to treat alcoholism. *
AsthmaCalmT - The combination of natural ingredients can aid in
desensitizing a person to allergies. *
<PAGE>
Brain BoostT - The cutting edge product incorporates Phosphatidyl Serine
and Ginkgo Biloba and other items that enable people to cope with today's
fast pace. *
Desert BoostT - Bee pollen, (the caviar of the plant world), Propolis,
Royal Jelly and Aloe Vera increase energy and immune systems. *
Enhanced Performance IIT - The low levels of testosterone in many men
today can be enhanced with this product. *
EnercoffeeT - This product, using whole bean coffee, can vitalize energy
levels. *
Euro FiberT - Euro Fiber wafers help fill the need for fiber in today's
diet. *
Ginkgo Biloba - Ginkgo Biloba has been used in Oriental medicine since
ancient times for brain function.*
Glucosamine Complex - Glucosamine with Boswellinr can aid in the
construction of connective tissue and help suppress pain in joints. *
Liver p.s. TabletsT - This product helps support liver health and
promote detoxification. *
Lyco/MenT - This supplement is designed with a synergistic blend of
selected phytonutrients, which include tomato extract and saw palmetto that
have been shown to support prostate health. *
Migrasafe-NT - This supplement contains the herb Feverfew. Studies show
this herb can lower the incidence of migraine headache. *
OsteoDense PlusT - Ipriflavone has shown clinically to support increase
in bone mineral density. Osteoporosis is a decrease of bone density. *
Pain & Joint Support Cream - Two of the ingredients in this product -
Boswellinr and Capsaicin - are known to lower pain and increase circulation.
*
Shark Cartilage - This is a non-toxic product from 100% shark cartilage.
Research shows this product may increase mobility and reduce pain. *
Time-Released Melatonin - As we grow older the body produces less of
this needed substance. Desert Health's Time-Released Melatonin can aid in
sleep and better health. *
WEIGHT MANAGEMENT PRODUCTS
In response to the obesity epidemic in the United States and elsewhere
in the world, the Company has created a line of products to assist in weight
reduction and management. Our specialized weight loss products incorporate
only the finest, most effective natural ingredients, which help to reduce
appetite, accelerate the metabolism, diminish carbohydrate cravings, and
encourage fat loss, so permanent weight loss may be achieved.
<PAGE>
These products are intended for use by adults only. Consult a physical
prior to the use of any dietary supplement for children under the age of 14.
Weight Loss-NT - This formula incorporates Ayurvedic herbs and minerals
to help control carbohydrate cravings. *
NaturaLeanT - By reducing unhealthy fat intake you can build better
health and longevity. This product can target the damaging fats. *
NiteLean PlusT - This product is designed to be effective in losing
weight while you sleep. *
ThermoburnT - Regular use of Thermoburn combined with a balanced diet
enables you to lose body fat comfortably. *
Fat InhibitorT - Fat Inhibitor helps reduce the amount of fat the body
absorbs from food. *
HERBAL/BOTANICAL PRODUCTS
Desert Health Products, Inc. herbs and other botanical products are
created from premium raw materials. We utilize only botanical ingredients
cultivated from reputable growers with strict quality standards. Our formulas
blend the traditional wisdom of cultures across the globe, and modern
science. Desert Health uses only natural ingredients that have clinically
validated healing properties.
Aloe Vera Juice - Desert Health offers cold processed aloe juice in
various flavors and aloe gel for internal and external use. Aloe properties
are noted for improved digestion, burn treatment, pain and many other uses. *
Bee Pollen - Bee pollen is a natural food rich in vitamins, minerals,
trace elements, fatty acids and hormones, and contains all 22 ingredients the
body is made of. Desert Health's is the finest grade available from the high
desert. *
Cat's Claw - Cat's Claw has a long history of traditional use by the
Ashaninka and Campa Indians. Dr. Brent Davis refers to Cats's Claw as "the
opener of the way" for its ability to cleanse the entire intestinal tract. *
Grape Seed Complex - Proanthocyanidin (PCO) is a natural plant
bioflavonoid and is one the most potent antioxidants available. Grape Seed
Complex yields a 95 percent concentration of PCO.
Noni - This product grows primarily throughout the South Pacific. The
fruit has been known to stimulate the immune system. *
Pau d'arco - Pau d'arco is a powerful antibiotic and aids in control of
various allergies. *
<PAGE>
Propolis - This product is gathered by the honeybee and is the main
factor in the sterilization of the beehive. There are many beneficial effects
of this natural product. *
Royal Jelly - This is the food of the Queen Bee which gives her the
required longevity. It is highly concentrated in amino acids, fatty acids and
vitamins. *
Saw Palmetto - An extract from the oil of the Saw Palmetto berry
demonstrates a remarkable ability to reduce the prostate. Nearly 60 percent
of men between ages 40 and 60 have an enlarged prostate gland. *
St. John's Wort - Recent studies show this product is effective as an
anti-depressant and an overall mood elevator. *
FemAID PRODUCTS SUPPORT SYSTEMST
Designed for and by women, femAID is a comprehensive nutritional
program, formulated for women of all ages, but especially for women suffering
from PMS, perimenopause and menopause. Today, a growing number of women are
asking for more natural products and approaches whenever possible. Although
there is not a lack of products available there is a lack of guidance and
support in terms of how much, when, and in what combinations supplements
should be taken in order to be truly beneficial
The femAID line has taken out the guesswork for the consumer by
recommending a distinct combination of natural products for each hormonal
phase women go through
The femAID line is a combination of nutritional supplements, phyto
(plant) hormones and herbs, designed by a certified nurse practitioner and a
registered dietitian to help women maintain optimal health and alleviate
uncomfortable symptoms resulting from hormonal and nutritional imbalance.
Women's Basic Formula I - An optimal formula of premium vitamins, herbs,
chelated minerals, antioxidants, amino acids and digestive enzymes to support
women through their cycle. *
Women's Basic Formula II - A combination of beta-carotene, B vitamins,
vitamin E, magnesium and iron which works in conjunction with Women's Basic
Formula I to minimize PMS discomforts. *
Bone Support - This formula contains a highly assimilable form of
calcium, microcrystalline, hydroxyapatite concentrate (MCHC) a compound
comprised of calcium, phosphorous, trace minerals, and a protein complex.
MCHC contains the same nutrient profile as that found in bone. *
Amino Acid Complex - Easy-to-absorb free form amino acids serve as
building blocks of protein, and are an integral part of every system of the
body. This complex supports the body's ability to make hormones,
neurotransmitters and enhances immune function and energy. *
<PAGE>
Essential Fatty Acid Support - This supplement is derived from borage
oil, the richest form of gamma linoleic acid (GLA). Essential fatty acids
(EFA's) are necessary or producing hormones, regulating cholesterol, and
enhancing the body's ability to burn fat. Many women are deficient in EFA's
due to chronic dieting and the consumption of processed/damaged fats (i.e.
margarine and hydrogenated fats). *
Phytoestrogen Support - Gentle plant estrogens derived from black
cohosh, dong quai, red clover and gamma oryzanol (a phytosterol from rice
bran oil) provide a comprehensive herbal formula to naturally balance
estrogen levels, which helps to relieve the symptoms of perimenopause and
menopause. *
Essential Pro Cream - This rebalancing formula contains wild yam
extract, vitamin E, aloe vera and progesterone, which are beneficial for the
improvement of the skin and body. *
Vitality Support - This is an herbal/amino acid combination that
includes tyrosine, an amino acid which directly enhances dopamine production
which increases energy and alertness. *
Calm Support - This is an herbal/amino acid combination containing St.
John's Wort and 5-HTP (5-hydroxytryptophan) the precursor to the brain
chemical serotonin. Additionally this formula contains the herbs kava kava,
hops, burdock root, fennel, vervain and motherwort for extra nutritional
support to soothe the body. *
Sleep Support - This gentle formula contains the herbs valerian, hops,
passion flower, skullcap, wild lettuce, chamomile and vervain to promote
tranquillity and overall relaxation. *
Essential Passion - This formula is a unique blend of herbs and plant
extracts that boost sexual desire and promote overall health and vigor.
Essential Passion contains two Ayurvedic herbs - Tribulus terrestris and
curuminoids - as well as Avena sativa, Damiana and zinc. *
Essential Feminine Moisture - This soothing cream containing
phytoestrogens, vitamin E and vitamin A helps mid-life women restore natural
vaginal moisture. Non-petroleum based cream, unscented and flavorless. *
AYURVEDIC PRODUCTS
For over 5000 years, a health system referred to as Ayurveda, meaning
`the science of life', has been practiced in India. This system of natural
medicine uses a holistic approach to healing using specialized herbal
formulas to balance the body. Desert Health Products, Inc. Ayurvedic herbal
formulas blend the traditional ancient wisdom with the finest current
scientific research and manufacturing methods.
Antioxidant Formula - Curcuminoid C3 Complexc and other Natural
Antioxidants*
Ashwagandha Root Extract - Ayurvedic Adaptogen and Energizer for Stress*
Bacopinc and Ginkgo Complex - Supports Normal Memory Function and
<PAGE>
Reduces Absentmindedness*
Bio-Q-10 - Helps support Cardiovascular Function and a Healthy
Circulatory System*
Bio-Selenium - Supports the Body's Defense System*
Bioperinec - Supports Efficient Nutrient Absorption*
Boswellinc and Curcuminoids - Supports Normal Joint Function and
Lubrication*
Citrinc Forte - Support for Weight Loss Programs*
Curcuminoids - Natural antioxidants from turmeric*
DGL Plus GingerT - Helps maintain a healthy digestive system*
Glucosamine Plus Boswellinc Blend - Supports normal joint function and
lubrication*
Gugulipidc Plus Hawthorne Complex - Supports cardiovascular function and
healthy circulation*
Gugulipidc Plus Lactosporec - Helps maintain healthy cholesterol levels
Gymnema & Alpha-Lipoic Complex - Supports maintenance of normal blood
sugar levels*
Lactosporec Chewables - Helps maintain healthy intestinal flora*
Lactosporec Probiotic - Helps promote healthy intestinal flora*
Picrolivc Boswellinc Blend - Supports a healthy respiratory system*
Premium Evening Primrose - Supports a healthy respiratory system*
Slim & Healthy - Citrin and Chromium for Weight Loss Programs*
SKIN CARE PRODUCTS
The condition and appearance of your skin is what people notice about
you first. It's what you sense first when you look in the mirror. Lavishing
care on your skin makes a very personal statement - that you are worth caring
for. At Desert Health Products, Inc. we demonstrate that we care about your
skin by offering the most innovative skin technology available anywhere. Our
purpose is to give you back and protect your natural inheritance of youthful
smoothness and the radiant vitality of healthy skin.
Intensive Mag C GelT - Intensive Mag C Gel is a powerful antioxidant
which aids in cellular repair.
<PAGE>
Micellular Facial Cleanser - This product exfoliates, cleanses, treats
and refines the skin.
Alpha Hydroxy Gel - This product balances the pH, prevents irritation
and reduces acidic acid.
Macroemulsion Moisturizer - This product moisturizes, balances the
skin's water barrier properties, and protects against environmental damage.
PET CARE PRODUCTS
Desert Health Products, Inc. has researched and developed a complete
line of Pet Care products for good nutrition and grooming. The philosophy
behind our pet care line is to provide for the health and well being of the
animal by using natural raw materials with no negative side effects. The
products are formulated using such materials as Aloe Vera, active essential
oils, efficacious herbs, natural emollients and other natural ingredients. Of
these agents Aloe Vera is a key ingredient for the health and beauty of the
animal. Only 100% natural liquid Aloe Vera is used in these products. The
Aloe Vera is carefully cold processed in liquid form to preserve all of the
efficacy of the fresh product.
Heat Lotion - Heat Lotion contains a large percentage of aloe vera along
with methyl salicylate that helps to relieve strains and sprains.
Shampoo with Parasite Control - Works well on animals allergic to flies
and parasites. It helps balance skin pH and is mild to the skin.
Shampoo w/Bluing - This product is concentrated, safe, and aids in
relief of minor irritations. It takes out yellows, grays and greens, removes
dirt, oil, perspiration, and reduces matting without drying or irritating the
skin.
Aloe Coat Conditioner - This product applies natural emollients to the
animal's coat leaving the coat and skin soft and shiny.
Vet Cream - This product contains 80% pure aloe. This natural cream
helps to alleviate the dry and chapped condition and promotes hair growth.
Hoof and Nail Conditioner and Rebuilder - This cream treats animal's
hooves with natural protein and lubricants in a base of aloe vera which
promotes healthy growth and enhances healing. Many grooms also use this
product effectively on their nails.
Spray Bandage - The Spray Bandage applies aloe vera directly to the
sound forming a light protective barrier over the area keeping the wound
clean and insect free. This formula is water-resistant but can be easily
removed with soap and water.
Aloe Vera Gel - This highly concentrated product provides soothing and
healing to the affected area. Use is effective for sunburns and abrasions on
humans and animals.
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Pet Deodorizer and Conditioner - This product rids animals of odors by
using nuetronic control. The result is fresh odor and soft coat.
Pet wellT - This supplement contains honeybee pollen and amino acids,
along with fiber, vitamins and minerals for a balance of essential needs.
This product was designed to meet the nutritional needs of pets of all ages,
sizes, and physical conditions. It helps to maintain proper body weight,
energy and metabolism. *
WATER PURIFICATION
The importance of fresh clean water for a healthy body is well known.
Desert Health Products, Inc. provides ten above and below counter water
purification systems along with support documents and replacement parts.
Benefits and Features:
* Cost effective Multi purpose
* Controls bacterial growth Simple
* Easily installed Limited one year warranty
* Low maintenance Great tasting water
* Compact designs
It is the goal of Desert Health to inform you of available and newly
introduced products. Our websites can do this at your convenience -
www.deserthealth.com
www.femaid.com
www.deserthealthrx.com
*This is a statement of nutritional support. These statements have not been
evaluated by the Food and Drug administration. These products are not
intended to treat, cure or prevent any disease.
Results of Operations for the three months ended September 30, 2000
The total gross profit was $37,250 and operating expenses from
continuing operations were $238,283 for the three months ended September 30,
2000. This represents a $(224,465) in loss from operations for the three
months ending September 30, 2000
Forward-Looking Statements and Associated Risks
This Quarterly Report on Form 10-QSB contains forward-looking statements
made pursuant to the safe harbor provisions of the Securities Litigation
Reform Act of 1995. These forward looking statements are based largely on
the Company's expectations and are subject to a number of risks and
uncertainties, many of which are beyond the Company's control, including, but
not limited to, economic, competitive and other factors affecting the
Company's operations, markets, products and services, expansion strategies
<PAGE>
and other factors discussed elsewhere in this report and the documents filed
by the Company with the Securities and Exchange Commission. Actual results
could differ materially from these forward-looking statements. In light of
these risks and uncertainties, there can be no assurance that the forward-
looking information contained in this report will in fact prove accurate.
The Company does not undertake any obligation to revise these forward-looking
statements to reflect future events or circumstances.
Liquidity and Capital Reserves
As of September 30, 2000 (Unaudited)
As of September 30, 2000, the Company's assets were $1,863,307 and its
liabilities were $843,482 resulting in stockholders' equity of $1,019,825 for
the three months ending September 30, 2000.
The Company has continued to fund its deficit cash flow from private
placements of the Company's common stock. It is anticipated that loans and
the sale of the Company's stock will continue until such time as the Company
generates sufficient revenues from its operations to cover operating
expenses.
PART II--OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 2. Changes in Securities.
None.
Item 3. Defaults by the Company upon its Senior Securities.
None.
Item 4. Submission of Matter to a Vote of Security Holders.
None
Item 5. Other Information.
None
Item 6. Exhibits and Reports of Form 8-K.
8-K Filed October 31, 2000- Spin off of Royal Phoenix
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
DESERT HEALTH PRODUCTS, INC.
(Registrant)
By:_/s/ Johnny Shannon_
Johnny Shannon
President
Date: November 13, 2000
