ICEBERG CORP OF AMERICA
10QSB, 2000-11-21
NON-OPERATING ESTABLISHMENTS
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             U.S. SECURITIES AND EXCHANGE COMMISSION
                      Washington, DC  20549
                           FORM 10-QSB

(Mark One)

     [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
          SECURITIES AND EXCHANGE ACT OF 1934 for the Quarterly
          period ended September 30, 2000

     OR

     [ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
          THE SECURITIES EXCHANGE ACT OF 1934 for the transition
          period from _______ to _______.


                  Commission File No. 000-28051


                  ICEBERG CORPORATION OF AMERICA
        --------------------------------------------------
          (Name of Small Business Issuer in its Charter)


Nevada,  U.S.A.                                        95-4763671
(State or other Jurisdiction                        (IRS Employer
of Incorporation or Organization)             Identification No.)


     P.O. Box 8251, St. John's, Newfoundland, Canada A1B 3N4
             (Address of principal executive offices)

                          (709) 739-5731
                   (Issuer's telephone number)


Check whether the registrant (1) filed all reports required to be
filed by Section 13 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 the past 90 days.       YES [X]    NO [ ]

As of September 30, 2000:  6,574,316 shares of Common Stock and
4,324,624 shares of Special Common Stock were issued and
outstanding.

<PAGE>


     TABLE OF CONTENTS AND INFORMATION REQUIRED IN REPORT


Part I.   Financial Information
-------
Item 1.   Financial Statements (unaudited)

Item 2.   Managements Discussion and Analysis or Plan of
          Operation


Part II.  Other Information
--------
Item 1.   Legal Proceedings

Item 2.   Changes in Securities

Item 3.   Defaults upon Senior Securities

Item 4.   Submission of Matters to a Vote of Security holders

Item 5.   Other Information

Item 6.   Exhibits and reports on form 8-K

          SIGNATURES

<PAGE>

                              PART I

ITEM 1.  FINANCIAL STATEMENTS



<PAGE>
<TABLE>

                     ICEBERG CORPORATION OF AMERICA AND SUBSIDIARIES
                              (a Development Stage Company)

                               CONSOLIDATED BALANCE SHEETS
                                       (unaudited)
                                        _________
                              (all amounts in U.S. dollars)


<S>                                                         <C>            <C>
                                                            September      September
                                                            30, 2000       30, 1999
ASSETS
Current assets
  Cash and cash equivalents                             $      1,001     $  100,808
  Trade accounts receivable, less allowance
    for doubtful accounts of $8,400, and $5,734,
    respectively                                             311,977        233,298
  Inventory                                                  638,955        662,482
  Prepaid expenses                                            36,605         43,583
                                                            ---------      ---------
Total current assets                                         988,538      1,040,171

Property, plant and equipment, net                         1,505,009      1,762,741
Deferred financing costs                                      30,000              -
Goodwill                                                     180,661        248,033
                                                            ---------      ---------
Total assets                                            $  2,704,208     $3,050,845
                                                            =========      =========

LIABILITIES
Current liabilities
  Short term borrowings                                 $    104,217     $        -
  Accounts payable                                           926,934        953,306
  Accrued liabilities                                         47,896        151,860
  Due to shareholders                                        595,716        452,002
  Current portion of long term debt                           61,446         45,037
                                                            ---------      ---------
Total current liabilities                                  1,736,209      1,602,205

Long term debt                                             1,282,678        854,060
                                                            ---------      ---------
Total liabilities                                          3,018,887      2,456,265
                                                            ---------      ---------


SHAREHOLDERS' (DEFICIT) EQUITY

Common shares, $.0001 par value; 25,000,000 shares
  authorized, 6,574,316 and 4,685,085 shares issued
  and outstanding in 2000 and 1999 respectively                  657            468
Special common shares, $.0001 par value; 5,000,000
  shares authorized, 4,324,624 and 4,506,106 shares
  issued and outstanding in 2000 and 1999 respectively           432            451
Additional paid-in capital                                 5,985,026      4,630,929
Deficit accumulated during the development stage          (6,317,115)    (4,074,223)
Accumulated other comprehensive income                        16,321         36,955
                                                            ---------      ---------
Total shareholders' (deficit) equity                        (314,679)       594,580
                                                            ---------      ---------
Total liabilities and shareholders' (deficit) equity     $ 2,704,208    $ 3,050,845
                                                            =========      =========


</TABLE>
<PAGE>

                      ICEBERG CORPORATION OF AMERICA AND SUBSIDIARIES
                               (a Development Stage Company)

                           CONSOLIDATED STATEMENTS OF OPERATIONS
                                        (unaudited)
                                         _________
                               (all amounts in U.S. dollars)

<TABLE>
<S>                                <C>                 <C>            <C>
                                   From
                                   July 22, 1996       Three Months   Three Months
                                   (Date of            Ended          Ended
                                   Inception) to       September      September
                                   September 30, 2000  30, 2000       30, 1999


Sales                              $ 1,495,968         $   301,388    $   194,558

Cost of sales                        1,326,468             207,517        119,219
                                   -----------         -----------    -----------
Gross profit                           169,500              93,871         75,339
                                   -----------         -----------    -----------

Operating expenses
  General and administrative         3,135,441             177,394        353,763
  Research and development             919,927              20,768         48,425
  Sales and marketing                1,533,148             162,157        186,061
  Depreciation and amortization        654,300              65,545         83,032
                                   -----------         -----------    -----------
                                     6,242,816             425,864        671,281
                                   -----------         -----------    -----------
Operating loss                      (6,073,316)           (331,993)      (595,942)
                                   -----------         -----------    -----------
Other expenses
  Interest and bank charges             96,757               5,276          4,583
  Interest on long term debt           147,042              49,181         12,915
                                   -----------         -----------    -----------
                                       243,799              54,457         17,498
                                   -----------         -----------    -----------
Loss before taxes                   (6,317,115)           (386,450)      (613,440)
Income taxes                                 -                   -              -
                                   -----------         -----------    -----------

Net loss                           $(6,317,115)        $  (386,450)   $  (613,440)
                                   ===========         ===========    ===========

Loss per share - basic
     and diluted                   $    (1.47)         $    (0.04)    $    (0.07)
                                   ===========         ===========    ===========

Weighted average common shares -
     basic and diluted               4,295,156          10,898,940      8,921,625
                                   ===========         ===========    ===========

</TABLE>
<PAGE>


                      ICEBERG CORPORATION OF AMERICA AND SUBSIDIARIES
                               (a Development Stage Company)

                           CONSOLIDATED STATEMENTS OF CASH FLOWS
                                        (unaudited)
                                         _________
                               (all amounts in U.S. dollars)


<TABLE>
<S>                                <C>                 <C>            <C>
                                   From
                                   July 22, 1996       Three Months   Three Months
                                   (Date of            Ended          Ended
                                   Inception) to       September      September
                                   September 30, 2000  30, 2000       30, 1999


Operating activities
  Net loss                         $(6,317,115)        $  (386,450)   $  (613,440)
  Items not requiring cash:
    Depreciation and amortization      654,300              65,545         83,032
    Gain on sale of property,
    plant and equipment                (29,195)                  -              -
                                   -----------         -----------    -----------
                                    (5,692,010)           (320,905)      (530,408)

Changes in current assets
  and liabilities
 Increase in accounts receivable      (232,559)           (147,541)       (21,474)
  Increase in inventory               (458,506)            (68,777)      (356,183)
  Decrease (increase) in
    prepaid expenses                    (8,009)             10,282          9,423
  Increase (decrease) in
    accounts payable                   516,369            (105,534)       (66,591)
  Increase (decrease) in
    accrued liabilities                 48,625             (13,508)       121,649
  Increase (decrease) in
    deferred government grants            (693)                -                -
                                   -----------         -----------    -----------

Cash used by operating activities   (5,826,783)           (645,983)      (843,584)
                                   -----------         -----------    -----------

Investing activities
  Purchase of property, plant
   and equipment                    (1,769,754)            (20,711)      (139,588)
  Proceeds from sale of property,
   plant and equipment                  78,007                 -                -
  Acquisition of subsidiary                 (1)                -                -
                                   -----------         -----------    -----------

                                    (1,691,748)            (20,711)      (139,588)
                                   -----------         -----------    -----------

Financing activities
  Proceeds from (repayments of)
   short term borrowings               121,524             (32,110)       152,350
  Advances from third parties          259,870                   -              -
  Repayment of advances from
   third parties                      (518,219)             (2,189)             -
  Advances from shareholders, net      596,090             (14,918)      (314,464)
  Proceeds from issuance of
   long term debt                    1,618,694             750,000              -
  Repayment of long term debt         (511,182)            (13,659)       (23,614)
  Deferred financing charges           (30,000)            (30,000)             -
  Net proceeds from issuance
   of shares                         5,986,115             (19,844)     1,000,000
                                   -----------         -----------    -----------

Cash provided by financing
 activities                          7,522,892             637,280        814,272
                                   -----------         -----------    -----------
Effect of exchange rate
 changes on cash                        (3,360)                 (2)        (4,279)
                                   -----------         -----------    -----------

Increase (decrease) in cash and cash
 equivalents during the period           1,001             (29,416)      (173,179)

Cash and cash equivalents,
 beginning of period                       -                30,417        273,987
                                   -----------         -----------    -----------

Cash and cash equivalents,
 end of period                     $     1,001         $     1,001    $   100,808
                                   ===========         ===========    ===========

Supplemental disclosures of
 cash flow information:

Cash paid for interest             $   243,799         $    54,457    $    17,498
                                   ===========         ===========    ===========

Cash paid for income taxes         $       -           $       -      $       -
                                   ===========         ===========    ===========


</TABLE>

<PAGE>
<PAGE>

            NOTES TO THE INTERIM FINANCIAL STATEMENTS

1.   Basis of Presentation

     The accompanying interim financial statements have been
     prepared by the Company in accordance with the rules and
     regulations of the Securities and Exchange Commission for
     interim reporting.  Accounting policies utilized in the
     preparation of financial information herein presented are
     the same as set forth in the Company's annual financial
     statements.  Certain disclosures and information normally
     included in financial statements have been condensed or
     omitted.  In the opinion of the management of the Company,
     these financial statements contain all adjustments
     (consisting only of normal recurring adjustments) necessary
     for a fair presentation of the interim financial statements.
     Interim results of operations are not necessarily indicative
     of the results of operations for the full year.


2.   Inventories

     Inventories consist of the following:

                                   September      September
                                   30, 2000       30, 1999

Raw materials                      $ 314,508      $ 319,322
Work in progress                           -              -
Finished goods                       344,071        355,808
                                   ---------      ---------

                                     658,579        675,130
Less reserve                         (19,624)       (12,648)
                                   ---------      ---------
                                   $ 638,955      $ 662,482
                                   =========      =========


3.   Property, Plant and Equipment

     Property, plant and equipment consist of the following:


                                   September      September
                                   30, 2000       30, 1999

Land                               $    46,064    $    47,137
Plant                                  443,775        450,735
Tank farm                              212,996        218,273
Furniture and equipment              1,217,569      1,251,366
Vehicles                                41,143         25,966
                                   -----------    -----------

                                     1,961,547      1,993,477
Less accumulated depreciation         (456,538)      (230,836)
                                   -----------    -----------
                                   $ 1,505,009    $ 1,762,641


4.   Long term debt

     During the period the Corporation raised $750,000 as part of
     a $5,000,000 Subordinated Convertible Debenture private
     placement. The Corporation is continuing its efforts to
     raise the remainder of the $5,000,000. These debentures will
     mature on October 15, 2005, carry an interest rate of U.S.
     bank prime plus 1.5% and are convertible at $0.50 for one
     common share and one share warrant which is exercisable at
     $0.625.  Provided the Corporation is not in default under
     the terms of the Debenture, the principal sum may be
     prepaid, without penalty, in whole or in part at any time
     after July 15, 2003.



     ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
              CONDITION AND RESULTS OF OPERATIONS


Forward Looking Information.

     This report contains certain forward-looking statements and
information.  The cautionary statements made in this report
should be read as being applicable to all related forward-looking
statements wherever they appear.  Forward-looking statements, by
their very nature, include risks and uncertainties.  Accordingly,
the Company's actual results could differ materially from those
discussed herein.  A wide variety of factors could cause or
contribute to such differences and could adversely impact
revenues, profitability, cash flows and capital needs.  Such
factors, many of which are beyond the Company's control, include
the following: our success in obtaining new customers; the volume
and type of orders that are received from such customers; levels
of, and ability to, collect accounts receivable; availability of
trained personnel and utilization of the Company's capacity to
complete work; competition and competitive pressures on pricing;
availability, cost and terms of debt or equity financing; and
economic conditions in the United States and other regions
served.

     During the three-month period the Company continued its
efforts to penetrate various markets in the United States of
America and elsewhere in the world. This process has taken much
longer than originally anticipated and with limited cash flow
from sales the company will have difficulty meeting its original
sales and earnings projections.  However, our sales
representatives have made numerous presentations to various
distribution channels in the beverage industry markets and
management feels optimistic, subject to further negotiations on
price and logistics, that the Company's sales will increase over
the balance of our fiscal year.

     The Company's functional currency is the Canadian dollar as
all Company operations have been conducted in Canada and are
denominated in the Canadian dollar.  Except for share investments
in U.S. dollars, there has been minimal activity denominated in
foreign currency through September 30, 2000.  Therefore, there is
no material currency risk or exposure to the Company in the
period to September 30, 2000.

     The Company's financial statements are translated into U.S.
dollars using the current exchange rate as required by FAS 52.
The accumulated currency translation adjustment is reported as
other comprehensive income in the statement of shareholders'
equity and was $16,321 to September 30, 2000.  During the first
quarter of fiscal 2001, the Company issued convertible debentures
for proceeds of US $ 750,000.  In the future, the Company intends
to conduct operations in the U.S. and Europe.  Currency risks and
functional currency will be evaluated as future plans are
formulated.

     While the Company is still in its development stage,
management has presented the statements of operations in the
traditional format.

     In order to finance the investment in accounts receivable,
increase in inventory, and to support ongoing marketing and
research and development, the Company raised $750,00 through the
issuance of convertible debentures during the three month period
ended September 30,2000.  Subsequent to September 30, 2000, the
company has raised an additional $100,000 through the issuance of
convertible debentures. The Company is continuing its strategy of
funding development through additional equity financing.  These
funds will be used to manage working capital requirements and to
fund ongoing development and marketing costs.

     The Company reports sales of $301,388 and $194,558 for the
three months ended September 30, 2000, and the three months ended
September 30, 1999, respectively.  These sales represent revenue
from bottling spring water and iceberg water and minimal revenue
from beer sales. Sales have increased by 55% over the same period
last year with management's anticipation that the next quarter
will see increased sales volumes for each of these products.
Management continues to focus its energies on product
development, market research and market development, which
includes the formation of alliances in various geographical
areas.

     General and administration expenses have decreased in the
three month period ended September 30, 2000 to $177,394, as
compared with $353,763 for the three-month period ended September
30, 1999. The company was more active during the recent
three-month period but the high legal and auditing costs incurred
for the 1999 reverse takeover were not repeated.  As a result
overall costs decreased by 50%.

     Research and development expenses decreased in the
three-month period ended September 30, 2000 to $20,768 compared
to $48,425 for the three-month period ended September 30, 1999.
Our production facility became operational during the year and
the ice harvesting methodology was determined with the result
that less additional expenditures are being incurred on these
activities.

     Sales and Marketing expenses decreased in the three month
period ended September 30, 2000 to $162,157 as compared with
$186,061 for the three month period ended September 30, 1999.
This decrease is a result less work being done on label design
and related development expenses.

     Depreciation and Amortization decreased in the three-month
period ended September 30, 2000 to $65,545 compared with $83,032
for the three-month period ended September 30, 1999.  This
decrease results from the reduced fixed asset additions.

     Interest and bank charges increased in the three-month
period ended September 30, 2000 to $54,457 compared with $17,498
for the three-month period ended September 30, 1999.  The net
increase of $36,959 comprised of an increase in short-term
interest expense of $693 and an increase in long-term interest
expense of $36,260.  The increase in long-term interest expense
resulted from interest charges on the issuance of convertible
debentures in the amount of $750,000.

     Net loss for the three months ending September 30, 2000 was
$386,450($0.04 per share) compared to $613,440 ($0.07 per share)
for the three months ending September 30, 1999. The Company has
incurred significant operating losses since its inception and has
an accumulated deficit of $6,317,115 at September 30, 2000.  The
Company expects to incur further development costs to continue
its product development and marketing efforts, and the Company's
working capital deficiency at September 30, 2000, and limited
revenue will not be sufficient to meet its development
requirements.  The Company's management recognizes this "going
concern" issue and the need to generate additional revenues
and/or resources, and has implemented several solutions to
address this problem.

     In addition to the anticipation of increasing sales in the
second quarter, management's plans for solvency in the coming
year is the sale of additional equity in the Company. Additional
common stock and or convertible debt will be marketed in the 2nd
quarter of fiscal year 2001 to sustain the Company's projected
ongoing losses.  The Company also intends to enter into
distribution agreements for its products in the United States,
shifting marketing costs to the distributors, and thereby
increasing its delivery of product through existing channels
without commensurate increases in overhead.  The Company believes
it can be operationally profitable by the third quarter of fiscal
year 2001, and should only experience further losses if it opts
to increase advertising in an attempt to rapidly increase market
penetration.  Notwithstanding the foregoing, there is substantial
doubt regarding the Company's ability to continue as a going
concern, and as such, the Company is substantially dependent upon
its ability to generate sufficient funds to cover its operating
costs.

     The Company has issued convertible debentures for proceeds
of $750,000 in the first quarter of fiscal 2001.  The total
debenture has been prepared based on raising $5,000,000.  Ongoing
discussions are in progress and it is anticipated that the
balance of the funds to be raised will be completed by the third
quarter of fiscal 2001.  These funds will be used to fund ongoing
costs incurred to produce and bring the Company's products to
market.  Capital commitments for the year ended June 30, 2001,
are estimated at $545,000 and these additional funds will be
sufficient to meet the Company's obligations until the various
sales initiations described herein are able to create significant
cash flow.  No additional facilities are needed to enable the
Company to produce on a commercial basis.

     The Company believes that its long-term debt is manageable
due to the fact that it is owed primarily to government lenders
interested in the viability of the Company (Atlantic Canada
Opportunities Agency and the Trepassey Community Development Fund
totaling $413,913) or because it is payable to Company
"insiders". If the company experiences shortages, it may be
possible to renegotiate terms of repayment with the Government
agencies and a complete deferral with officers and directors
($595,716 due to directors and officers).


RISK FACTORS

Market Risk.

     There has already been significant and substantial interest
in the Iceberg product line, however, as with any market and/or
product, there are uncertainties, including:

New Product Risk.

     There is a risk that consumer acceptance or ongoing interest
may not be as widespread as expected.

Price Resistance Risk.

     These products are premium products that demand a high
price.  There is a danger of price resistance in the consumer
marketplace.

Harvesting Risk.

     The data available to the Company indicates that the
availability of ice from icebergs will not be a problem.
However, the data does not indicate the proximity of icebergs to
the shore, which is a cost-sensitive condition for the Company.
To safely and cost-effectively harvest icebergs, they must be
close to shore, in areas offering some protection from the open
sea.  The reported length of the season can also be misleading.
Icebergs may be present but they must also be in a suitable
location and in the process of breaking up in order to be
harvested.  The data currently available does not provide such
detailed information.

Sub-Contractor Performance.

     The Company relies upon sub-contracted vessels to assist in
harvesting its ice supply.  There is a risk of default or non-
performance by these sub-contractors.

Processing Risk.

     The extent of raw material handling before final production
poses an element of risk.  The Company's Quality
Assurance/Quality Control (QA/QC) manager has developed and
monitors procedures and ensures adherence to raw material and
finished product specifications.  Regular lab analysis is
conducted at all stages of the process.  The Company is moving to
implement a Hazard Analysis of Critical Control Points ("HACCP")
system and is pursuing ISO 9000 certification.  As a member of
the International Bottled Water Association, the Company also has
access to technical resources and is subject to an annual
independent review of the Company's manufacturing processes.

Financial Risk.

     If the Company needs to raise additional funds in order to
fund expansion, develop new or enhanced products, respond to
competitive pressures or acquire complementary products,
businesses or technologies, additional funds raised through the
issuance of equity or convertible debt securities may dilute the
percentage ownership of the present stockholders of the Company,
and, in addition, such securities may have rights, preferences or
privileges senior to those of the Company's Common Stock.  The
Company does not currently have any contractual restrictions on
its ability to incur debt and, accordingly, the Company could
incur significant amounts of indebtedness to finance its
operations.  Any such indebtedness could contain covenants which
could restrict the Company's operations.  There can be no
assurance that additional financing will be available on terms
favorable to the Company, or at all.  If adequate funds are not
available or are not available on acceptable terms, the Company
may not be able to continue in business, or to a lesser extent,
not be able to take advantage of acquisition opportunities,
develop or enhance its products or respond to competitive
pressures.


                   PART II -- OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

     NONE


ITEM 2.  CHANGES IN SECURITIES

     In August 2000, the Company completed a private placement
under Rule 506 of Regulation D whereby it issued convertible
debentures in exchange for $750,000 which proceeds were intended
to fund the Company's immediate working capital needs.  As part
of the offering price, the accredited investors will be entitled
to convert their debenture into an equivalent number of shares of
the Company's Common Stock at $0.50 per share. As part of the
offering price, the accredited investors who convert will receive
share purchase warrants convertible into an equivalent number of
shares of the Company's Common shares at $0.625 per share.  These
warrants expire eighteen months after the conversion date of the
convertible debenture to equity.  A commission of 4% was paid in
connection with the issuance of the convertible debenture.


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

     NONE


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     NONE


ITEM 5.  OTHER INFORMATION

     NONE


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     NONE


                            SIGNATURES

In accordance with Section 12 of the Securities Exchange Act of
1934, the Registrant has caused this registration statement to be
signed on its behalf by the undersigned, thereunto duly
authorized.


                 ICEBERG CORPORATION OF AMERICA


Date: November 19, 1999            By: /s/ Paul Benson
                                        Paul Benson,
                                        President & Director

Date: November 19, 1999            By: /s/ Lewis Stoyles
                                        Lewis Stoyles,
                                        Vice President & Director

Date: November 19, 1999            By: /s/ John Kleinert
                                        John Kleinert,
                                        Director




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