UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the Quarter Ended Commission File Number
JUNE 30, 1999 33-26109
AMAZON NATURAL TREASURES, INC.
(Exact name of registrant as specified in its charter)
NEVADA
(State or other jurisdiction of incorporation or organization)
88-0460880
(I.R.S. Employer Identification No.)
4011 W. OQUENDO ROAD, SUITE C
LAS VEGAS, NEVADA 89118
(Address of principal executive offices)
4011 W. OQUENDO ROAD, SUITE C
LAS VEGAS, NEVADA 89118
(Former Address of principal executive office)
(702)795-4333
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12 (b) of the Act:
None
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes (X) No ( )
State the number of shares outstanding of each of the registrants classes of
common stock, as of the latest practicable date.
As of August 20, 1999, 17,726,255 shares of common stock were outstanding.
AMAZON NATURAL TREASURES, INC.
Table of Contents
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Balance Sheets - June 30, 1999 and
December 31, 1998 4
Condensed Statements of Operations for the Six
Months and the Three Months Ended
June 30, 1999 and 1998 5
Condensed Statements of Cash Flows for the Six
Months and the Three Months Ended
June 30, 1999 and 1998 6
Notes to Condensed Financial Statements 7
Item 2. Management's Discussion and Analysis or Plan of
Operation 8
PART II - OTHER INFORMATION
Item 1. Legal Proceedings XX
Item 2. Changes in Securities and Use of Proceeds XX
Item 6. Exhibits and Reports on Form 8-K XX
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The unaudited financial statements of the Registrant required to be filed with
this 10-QSB Quarterly Report were prepared by management, and commence of the
following page, together with Related Notes. In the opinion on management, the
Financial Statements fairly present the financial condition of the Registrant.
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AMAZON NATURAL TREASURES, INC.
BALANCE SHEETS
JUNE 30, 1999 AND DECEMBER 31, 1998
(Unaudited)
ASSETS
<S> <C> <C>
June 30, December 31,
1999 1998
------------ ------------
CURRENT ASSETS:
Cash $ 8,058 $ 2,161
Accounts receivable 7,036 6,017
Inventories 471,764 444,983
Prepaid expenses 6,408 1,345
------------ ------------
Total Current Assets 493,266 454,506
------------ ------------
PROPERTY AND EQUIPMENT, NET 624,959 560,210
------------ ------------
OTHER ASSETS
Deposits 23,731 23,731
Organization costs 41,646 41,646
Licenses and trademarks 128,000 128,000
------------ ------------
Total Other Assets 193,377 193,377
------------ ------------
TOTAL ASSETS $ 1,311,602 $ 1,208,093
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Bank overdraft $ 15,733 $ 15,733
Notes payable-Current 57,469 -
Accounts payable 354,269 354,269
Payroll and other accrued liabilities 159,575 148,153
Shareholder loans and related parties
payable 223,150 140,758
------------ ------------
Total Current Liabilities 810,196 658,913
------------ ------------
Long-term debt - 105,947
------------ ------------
Deferred revenue 76,000 76,000
------------ ------------
STOCKHOLDERS' EQUITY:
Preferred stock 52,795 52,795
Capital stock 29,459 15,965
Additional paid-in capital 15,300,980 14,943,955
Stock subscription receivable (1,000,000) (1,000,000)
Retained earnings (deficit) (13,957,828) (13,645,482)
------------ ------------
Total Stockholders' Equity 425,406 367,233
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,311,602 $ 1,208,093
============ ============
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AMAZON NATURAL TREASURES, INC.
STATEMENT OF OPERATIONS
(Unaudited)
<S> <C> <C> <C> <C>
For the For the For the For the
Six Months Six Months Three Months Three Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
---------- ---------- ---------- ----------
SALES $ 78,153 $ 186,124 $ 37,525 $ 141,367
---------- ---------- ---------- ----------
COST OF SALES 2,829 7,061 1,255 2,518
---------- ---------- ---------- ----------
GROSS PROFIT 75,324 179,063 36,270 138,849
---------- ---------- ---------- ----------
EXPENSES:
General and
administrative 384,879 299,924 149,465 116,941
Depreciation and
amortization - - - -
---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES 384,879 299,924 149,465 116,941
---------- ---------- ---------- ----------
Net (loss) before
other items (309,555) (120,861) (113,195) 21,908
OTHER INCOME (EXPENSE)
Interest expense 2,791 - 2,791 -
---------- ---------- ---------- ----------
NET (LOSS) BEFORE TAXES (312,346) (120,861) (115,986) 21,908
PROVISIONS FOR INCOME TAXES - - - -
---------- ---------- ---------- ----------
NET (LOSS) $ (312,346) $ (120,861) $ (115,986) $ 21,908
=========== =========== =========== ==========
EARNINGS (LOSS) PER
SHARE $ (0.02) $ (0.00) $ (0.01) $ 0.00
=========== =========== =========== ==========
WEIGHTED AVERAGE SHARES
OUTSTANDING 17,672,255 33,546,949 17,672,255 33,546,949
=========== =========== =========== ==========
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AMAZON NATURAL TREASURES, INC.
STATEMENT OF CASH FLOWS
(Unaudited)
<S> <C> <C> <C> <C>
For the For the For the For the
Six Months Six Months Three Months Three Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
---------- ---------- ---------- ----------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss $ (312,346) $ (120,861) $ (115,986) $ 21,908
Adjustments to reconcile
net loss to net cash used
in operating activities:
Depreciation and
amortization - - - -
Changes in assets and
liabilities:
(Increase) decrease in accounts
receivable (1,019) 846 1,110 846
(Increase) decrease in employee
advances - (1,206) - 100
(Increase) decrease in
inventories (26,781) (19,641) (7,178) (49,575)
(Increase) decrease in notes
receivable - 2,325 - (1,500)
(Increase) decrease in prepaid
expenses (5,063) 3,000 - -
(Increase) decrease
in deposits - (81,665) - (87,550)
Increase in accounts
payable and
accrued liabilities 11,422 50,214 (7,996) (56,340)
---------- ---------- ---------- ----------
Net cash used in operating
activities 333,787 (166,988) (130,050) (172,111)
---------- ---------- ---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in organization
costs - - - 4,217
Purchase of property
and equipment (64,749) (121,676) (11,325) 11,909
---------- ---------- ---------- ----------
Net cash used in investing
activities (64,749) (121,676) (11,325) 16,126
---------- ---------- ---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance
of common
stock, net 370,519 178,423 70,319 123,228
Increase in loans and
affiliate advances 33,914 5,646 46,145 87,906
---------- ---------- ---------- ----------
Net cash provided
by financing
activities 404,433 184,069 116,464 211,134
---------- ---------- ---------- ----------
Net Increase (decrease)
in Cash 5,897 (104,595) (24,911) 55,149
CASH AT BEGINNING
PERIOD (13,572) 128,332 17,236 (31,412)
---------- ---------- ---------- ----------
CASH AT END OF PERIOD $ (7,675) $ 23,737 $ (7,675) $ 23,737
========== =========== ========== ==========
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest expense $ 2,791 $ - $ 2,791 $ -
========== =========== ========== ==========
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AMAZON NATURAL TREASURES, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
JUNE 30, 1999
(Unaudited)
1. The unaudited condensed financial statements printed herein have been
prepared in accordance with the instructions to Form 10-QSB and do not include
all the information and disclosures required by generally accepted accounting
principles. Therefore, these financial statements should be read in conjunction
with the financial statements and related footnotes included in the Company's
Form 10-KSB for the year ended December 31, 1998. These financial statements
reflect all adjustments that are, in the opinion of management, necessary to
fairly state the results for the interim periods reported.
2 The results of operations for the six months ended June 30, 1999 are not
necessarily indicative of the results to be expected for the full year.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL STATEMENTS
INTRODUCTION
The character and holdings of the Company has remained substantially the same
since the preceding fiscal year. During the first quarter of the current fiscal
year the company has sought to expand its business by obtaining and securing
clients in the nutritional products market. This is the primary business and
focus of the Company. The readers of the current unaudited statements are
referred to the Company's Annual Report as filed for the calendar year ended
December 31, 1998, for a more in-depth view of the Company's financial position,
results of operations and changes in cash flows. Accordingly, management's
discussion as set forth below focuses primarily on the quarter ended June 30,
1999.
LIQUIDITY
During the three months ended June 30, 1999, the Company's working capital
decreased by approximately $56,992. The Company does not currently have
sufficient capital in its accounts, nor sufficient firm commitments for
capital to assure its ability to meet its current obligations or to continue its
planned operations. The Company is continuing to pursue working capital and
additional revenue through existing and new clients, but there is no assurance
that any of the planned activities will be successful.
CAPITAL RESOURCES
As a result of its limited liquidity, the Company has limited access to
additional capital resources. The Company does not have the capital to totally
fund the obligations that have matured or debts that remain currently payable or
other debts incurred during the most recent fiscal quarter.
The Company currently has been funded by loans from outside parties and through
the sale of newly issued restricted common stock of the company.
The Company has received additional capital through the expansion of vendor
financing.
The Company has met its current obligations and been funding the operating
losses from this outside capital. The management of the Company is seeking
addition private financing from certain outside parties to continue to pursue
the business activities of the Company. Though the obtaining of the additional
capital is not guaranteed, the management of the Company believes it will be
able to obtain the capital required to meet its current obligations and
pursue its business activities.
OPERATIONS
In the previous year ended December 31, 1998, the Company has been seeking to
obtain new clients, distributors and an increase in its internet traffic to
increase sales. During the most recent quarter, these efforts have continued
and the Company expects a substantial increase in the sales of its
nutritional products.
In the previous year the Company had substantial gem sales, and though the
Company still offers this product line, minimal gem sales have occurred in 1999.
The Company has sought to reduce its operating overhead until it is successful
in securing new client business and the related cash flows from such activities.
However, due to the legal costs for current litigation, general and
administrative costs have continued to increase.
Until such time as the Company is able to obtain the revenues needed from its
operations to meet its obligations, the Company will be dependent upon sources
other than operating revenues to meet its operating and capital needs.
Operating revenues may never satisfy these needs.
The current market the Company operates under is a very competitive market and
there exists many other competitors with greater capital and contacts in the
industry seeking the same clients. The company believes it will obtain a
certain percentage of such clients to generate the revenues needed to continue
its business plans. Until then, the Company will need additional capital
other than that provided through its operations.
PLAN OF OPERATION
Amazon Natural Treasures, Inc., a privately held Nevada Company. Amazon Natural
Treasures, Inc., is a multi-faceted company which is a Phytogenics Health
Maintenance Company along with bringing the treasures of the Brazilian Amazon
Rain Forest to the rest of the world. They produce and distribute health
supplements derived from plants and related species for the cure and
treatment of human illnesses and disease. The Board of Directors feel this will
offer shareholders a viable business opportunity now and for the future.
Amazon Natural Treasures, Inc. or A.N.T., as it is also known, was incorporated
in Nevada, during 1995. It is a company with a unique mission. To bring the
Amazon's naturally produced treasures, in their purest form, to the people of
the world. To this end, A.N.T. has obtained the rights to export products from
the Amazon area to the United States, Canada and the rest of the world. These
products include: herbs, roots, plants and teas. Along with these products
come their associated benefits. A.N.T. also produces and exports a bevy of
additional product lines.
For many years people have looked for alternative treatments for their
diseases and maladies. People all over the world have had unpleasant
experiences with modern (allopathic) medical treatments, that in many cases are
made up of man-made chemicals that produce unwanted, if not dangerous side
effects. Health food stores have made billions of dollars catering to this
ever-increasing segment of the population. Many of their products are
beneficial, but far too many of them contain a small percentage (usually under
10%) of there advertised ingredient(s). Ninety percent is filler. All of
Amazon Natural Treasures, Inc. Phytogenics products are 100% pure and
natural without any fillers. Our customers get the full potency of the product
they purchase and at competitive prices. Key personnel have been actively
working in the research and development phase of our Phytogenics products since
1972. In 1995 a decision was made to enter A.N.T. products into the world
market.
Amazon Natural Treasures' business plan for the next twelve-(12) months
contemplates the utilization of an aggressive multi-dimensional marketing
campaign. The company will use direct mail to qualified leads. Also planned is
the placement of advertising in established and widely circulated
health-related, as well as general interest publications. An "infomercial"
is planned to further disseminate information into the marketplace. It is
anticipated this will result in strong revenue in the first quarter of 1998 and
increasing sales thereafter. This assertive plan will be implemented at the
conclusion of the private placement offering.
The company contemplates entering into advertising contracts with magazines,
including but not limited to the following:
Magazine Circulation
PREVENTION 3,000,000
Rx REMEDY 1,500,000
VITALITY 1,250,000
HEALTH JOURNAL 1,200,000
AMERICAN HEALTH 1,000,689
The plan is to place full-page ads, in those magazines eventually selected, at
a monthly cost of approximately Fifteen Thousand ($15,000.00) Dollars each. We
expect each magazine will run an article detailing the company and its unique
products. Most important, we expect the publications will provide a list of
their subscribers for follow-up direct mailing.
The acquisition of a total lead base of approximately seven million (7,000,000)
leads is envisioned through marketing with publications. An additional one
million (1,000,000) leads will be purchased from lead based companies.
Amazon Natural Treasures, Inc. will purchase leads of individuals who have
regularly purchased, at a minimum, two hundred fifty ($250) dollars worth of
health supplements per month for the last twelve (12) months. Amazon Natural
Treasures, Inc. has been informed that there are five million (5,000,000)
leads available. Utilizing magazines, "infomercials, " direct mail, and
lead based companies, Amazon Natural Treasures, Inc. will continue to build
their lead base so that potential customers will number in the millions.
The company eventually plans to publish its own catalog/magazine. The cover
will feature a full color photograph of the Amazon Rain Forest with the
company's logo prominently displayed. Inside, there will be messages from the
principals of the company, a history of the rain forest, and a history of
the company. An explanation of the company's purpose and adoption of
"phytogenics " or the treatment of ailments through plants and other naturally
occurring products, will also be included.
The magazine will contain a chart consisting of possible symptoms/ailments
people may be suffering from and corresponding product(s) customers can
purchase for their treatment. Each product will be individually presented
and explained on its own page. The benefits of each product, how it works,
and how it should be used will be illustrated.
It is anticipated articles by respected researchers and medical professionals
will be included. These articles will correspond to the natural theme of the
company. There will be other attractions in the magazine for the consumer,
such as monthly pullout calendars and full-color pictures of the rain forest
will be featured. These photographs will be unique and collectable.
To this end all the photographs will be numbered and in a limited quantity.
Customer testimonials, with photographs, will be included each month. There
will be a "Letter to the Editor" selection each month with answers to
customer's questions. Amazon Natural Treasures, Inc. is pleased to
announce that the construction of the "WEBSITE OF THE FUTURE" is now well
underway. This "WEBSITE OF THE FUTURE" will be a fully interactive internet
website.
It has been said that Amazon Natural Treasures, Inc.'s "WEBSITE OF THE
FUTURE", once fully implemented, will be a major contender for a variety of
awards dealing with internet site and graphic designs. Not only will the
"WEBSITE OF THE FUTURE" be an immense educational source, but will also
be a major selling tool for all of Amazon Natural Treasures, Inc.'s unique
PhytogenicTM products. There are now over 127 spectacular PhytogenicTM
nutritional supplements available from the Brazilian Amazon Rain Forest.
Amazon Natural Treasures, Inc. will continuously add new supplements to
their product line. Precious stoned carved birds, figurines and top
quality gemstones such as rubies, emeralds, aquamarines, etc. will also be
available for sale on the "WEBSITE OF THE FUTURE".
We invite you to view our Website now as it is under construction at
WWW.AMAZON-TREASURES.COM.
The site can be expanded upon at any time, but initial development will include
the following attributes:
On Line Customer Service: Customers will be able to ask for help on product
information, etc. They will also be able to access this information either
via keyboard, voice or video conferencing depending on their computer
capabilities.
On Line Secure Ordering: Customers can order products with "peace of mind"
that their credit cards will be safe using AT&T Buy/Safe secured ordering.
All orders will be processed for immediate shipment.
Order PhytogenicTM Products on Line: Customers can access Amazon Natural
Treasures PhytogenicTMproducts and ordering information in a variety of
manners.
Ask the Indian: Customers will be able to ask the Indian a specific question
in regards to their health or one of Amazon Natural Treasures 100% pure natural
PhytogenicTM products either through use of their voice control or their
keyboard. The Indian will answer them in his own voice while the text of
his speech is being printed on the screen for easy downloading.
Product by Name: When the customer is looking for a specific 100% pure and
natural Amazon Natural Treasures PhytogenicTM product, they can easily
access all the information on the product by double clicking on the name or
by speaking the name into their microphone.
Product by Product Number: Many of our customers prefer to order or access.
information on Amazon Natural Treasures 100% pure and natural PhytogenicTM
products by product number. This is easily done by double clicking on the
product or by speaking the product number into their microphone.
Ailments and Recommended Products: For the customer who does not have a lot
of time, they can easily access the products and ordering information on Amazon
Natural Treasures 100% pure and natural PhytogenicTM products by double
clicking on their ailment or by speaking their ailment into their
microphone. The recommended 100% pure and natural PhytogenicTM product will
then immediately pop-up onto the screen.
Specialty Listing: This list of Amazon Natural Treasures 100% pure and natural
PhytogenicTM products is for customer's specialized needs. Here, they will
find products for specializedneeds such as aphrodisiacs, antacids,
antidepressants, anti-inflammatories, antioxidants, antiseptics, estrogens,
finger nail hardener, hair and skin formulas, premature aging, skin
wrinkles, tranquilizers and many more. When the customer has located their
specific specialized need, they can easily access the information by double
clicking on the specialized need or by speaking the name of the specialized
need into the microphone. The complete listing of all the products for that
particular specialized need will pop-up onto the screen. By the saying the
name of a particular product, the customer can either access the information
via voice or via text.
See Your Order on Line: Through video conferencing, the customer will be able
to actually see all the products, the precious and semi-precious stone birds,
and stone figurines. The customer will be able to pick and choose the
color, size, shape, type, etc.while talking on line with one of our certified
gemologists before their purchase.
Ordering Through Video Conferencing: Through video conferencing, the customer
will be able to pick and choose the actual gem stone by color, size, weight and
quality.
Discussion Forums: Customers will be able to check on line for times and dates
when noted doctors from Amazon Natural Treasures medical advisory board will be
on line ready to answer their questions about their medical queries or our
PhytogenicTM products. The noted professionals will be viewed by the customer
via video conferencing.
Customer Interacting: 24 hours a day, customers will be able to log onto the
interactive discussion group. Here, customers will be able to compare notes,
discuss the merits of Amazon Natural Treasures' products either through the
keyboard or their voice pad. This will all be integrated through Amazon
Natural Treasures' own in-house server.
Real Time Audio and Video: Amazon Natural Treasures "state of the art"
website will feature the latest technology available on the Internet utilizing
"Real Player Plus" and "MegaPeg" for the ultimate in on line communication.
On Line Multi-Media: The website will feature a vast array of "one of a kind"
photographs of the Brazilian Amazon Rain Forest. Our photographs will be
accompanied by a cover story and can easily be down loaded.
The art gallery will also include spectacular photographs of thousands of "one
of a kind" Indian artifacts. The sub text will explain their origins, uses,
and tribes in which they originated from. These artifacts may personally
be viewed at Amazon Natural Treasures retail store showroom and museum
located in Las Vegas, Nevada.
You will also be able to listen to the sounds of the jungle in beautiful hi-fi
stereo via real audio that is available for free downloading.
Investors Corner: Here, visitors to the "Website of the Future" will be able
to follow the latest stock quotes, retrieve fundamental financial
information, read press releases, and can also link to other sites for on
line stock transactions.
E-Mail: With just one click of the mouse, customers will have the ability to
send us standard keyboard or voice E-Mail which will be answered immediately 24
hours a day!
Screen Savers: Visitors to the Amazon "state of the art" website will have the
ability to download the most exquisite, never seen before, screen savers. Some
of which will include live action along with its own audio.
Amazon Natural Treasures plans to harness the expansive growth and interest of
the Internet worldwide and plans to use its website as a major revenue producer
for the sale of the company's products. The company anticipates the website to
generate hundreds of millions of dollars in revenue annually.
It has been proven that the excitement of the Internet, properly promoted, can
be a tremendous tool for stock market relations, broker dealers, and
underwriters. There are many companies that just utilize the Internet for
their total sales and have based their initial public offerings around the
sale of their products on the Internet.
We, at Amazon Natural Treasures, plan to take this one step further by
utilizing the immense power of the Internet as a sales tool along with the
direct marketing catalog sales and magazine advertising campaign to capture
all spectrums of the over one hundred billion dollar annual consumer market
for these products. This may also be the basis for a future public
offering that will no doubt bring broker dealer and underwriter enthusiasm
and support.
The benefit and effectiveness of our products have been demonstrated,
throughout the ages, by people who continue to use them. The inhabitants of
the Amazon, as well as many others have taken the products for their
ailments and achieved astonishing results.
Amazon Natural Treasures, Inc. can be characterized as a leader in bringing to
the world Phytogenic products. The company believes in complete control from
the harvesting of the products through sale to the end user. Only through
this business principle (vertical integration) can high quality standards
be controlled and enforced.
Natures Touch (TM), Product No. AR124:
Natures Touch (TM) is a 100% pure natural product derived from the sap and
leaves of a small tree found in the Brazilian Amazon Rainforest. This
variety of tree has been named "Natures Taste" by one of the Company's
founders, Dr. Domingos Loricchio. The sap, necessary for the
product, is extracted from the Natures Taste tree in much the same manner
as maple sap is obtained from maple trees in the United States and Canada.
The leaves are then crushed to extract essential ingredients which are
combined with the sap in a process which ultimately results in the
wonderful product. Natures Touch (TM) has characteristics which allow it to
be used in the same application as sugar (saccharose or sucrose).
The Nutritional Facts analysis found that "Natures Touch (TM)" per serving
has 0 fat, 0 cholesterol, 0 sodium, 0 carbohydrates and 0 protein. It also
leaves no after taste as do some synthetic sweeteners, is also
non-fermentable, yet is equal or better in taste than cane sugar.
"Natures Touch (TM)" possesses natural properties that permit its use and
an ideal sugar substitute for calorie restricted diets or for those
suffering with diabetes.
As a result, "Natures Touch (TM)" may have application in treatment programs
for all forms of diabetes. This product is a delightfully surprising alternative
for those individuals who prefer not to use regular sugar or do not wish to use
artificial sweeteners. These qualities allow for its use as a sugar substitute
in all drinks, hot or cold, as well as your favorite cooking recipes.
Amazon Natural Treasures, Inc. is actively and aggressively opening new sales
markets through retail distribution of Natures Touch (TM) in health food
stores throughout the country. It is the Company's goal to actively solicit not
less than 1,000 stores to retail this product prior to the end of September
1998. New retail stores are being added on a daily basis.
Based on each store selling 50 bottles per month, the estimated gross revenue
per year initially is estimated at $2,700,000.
The Company has chosen five of the best moving and most popular dietary
supplements recognized throughout the United States which are:
Product Number Product Name
AW004PA Zuedon
AW0043PR Pau D'Arco
AW0072PA Una de Gato
AD0100PA Akana
AD0127PA Super Amazon Guarana
The products will also be sold in our 1,000 store retail base.
Based on each store selling 100 bottles per month, the estimated gross revenue
per year initially is estimated at $18,000,000.
The Company has finalized a brokerage agreement with a major distributor who
will then be selling our product, Natures Touch (TM), to major distributors.
HairLife (TM) - Scalp Enhancement System (TM):
The Company has begun sales and marketing of HairLife (TM) Scalp Enhancement
System (TM).
HairLife(TM)'s unique properties work gradually and continuously on the scalp
providing a stimulating topical action due to its Phytogenic (TM) ingredients.
Initially, HairLife (TM) stimulates scalp pore activity allowing the product to
penetrate deep into the capillary bulbs supplying fast acting nutrients and
unique cellular stimulants that gradually induce the cells to regenerate and
restart their biological function. As an added bonus, HairLife (TM) delivers
fast absorbing nutrients that restore dry and damaged hair.
The miraculous properties of HairLife (TM) retards hair loss that is either due
to heredity or other causes such as nutritional deficiencies and allopathic
prescription medication side effects. Once the HairLife (TM) Scalp Enhancement
System (TM) is administered, a reduction in hair loss can be noticed in as
little as four to six (4-6) weeks while the actual hair re-growth process
generally starts in a timeframe of sixty to ninety (60-90) days.
At the beginning stages, the new hair that will grow as a direct result of the
administration of HairLife (TM) on the scalp will grow at a lesser rate.
(Approximately half (1/2) that of normal growing rate).
HairLife (TM) has been used and tested in Brazil with remarkable results
stemming over a twenty-two (22) year period. At this time, Amazon Natural
Treaures, Inc. is pleased to be able to bring this Brazilian Amazon wonder
hair growth product to receding hair and balding scalps worldwide!
Based on representations made at a presentation by the Company at the 1998
Barbers Convention held in Las Vegas, Nevada and based on 2,500 barbers selling
6 units per month, the estimated gross revenue per year initially is estimated
at $8,100,000.
The Company is actively and aggressively engaged in a strategic program to
eliminate the illegal shorting of their stock which will allow the Company to,
once again, fulfill their $5,000,000 private placement. This will allow the
Company to continue with its catalog sales and marketing program. Once
implemented, the gross revenue based on industry sales figures will be an
estimated $195,000,000 per annum to start.
The Company also has other products ready for marketing. The kick-off date for
these new products is set at a very strategic timeline. The first of these
products to be marketed to the public is:
a) Natures Touch CHEWING GUM: Natures Touch Chewing Gum contains no
sugar because it is sweetened with Natures Touch SWEETENER. It has
zero calories, no cholesterol, no carbohydrates, no fat,
non-fermentable, completely safe for diabetics, has NO AFTER TASTE,
and comes in a variety of flavors. It has no harmful side effects as
some chewing gum on the market today that contain chemicals such as
Phenylalanine or Calcium Saccharin, which has been determined to cause
cancer in laboratory animals.
Natures Touch CHEWING GUM is like no other chewing gum you've ever
chewed before because it:
- Will start to whiten your teeth within three minutes of chewing
without bleaching or without any harmful effects to the teeth and
The second lawsuit involves a breach of contract suit. An arbitration award
of $88,000 has been entered against the Company regarding a breach of contract
lawsuit. The Company is currently appealing the decision.
ITEM 2. CHANGES IN SECURITIES
Recent Sales of Unregistered Securities:
Following is a summary of sales of unregistered securities for the three
months ending June 30, 1999. All securities were issued as restricted common
shares, which are subject to Rule 144 of the Securities and Exchange
Commission. Generally, Rule 144 requires shareholders to hold the shares
for a minimum of one year before sale. In addition, officers, directors and
more than 10% shareholders are further restricted in their ability to sell
such shares. There have been no underwriters of these securities and no
commissions or underwriting discounts have been paid.
Shares Value
Transaction Description Issued Received
- --------------------------------- --------- ------------
Sale of 144 common stock for cash 247,620 $67,810
Consulting and operating expenses 30,300 $ 3,030
The above transactions qualified for exemption from registration under
Sections 3(b) or 4(2) of the Securities Act of 1933. Private placements
for cash were non-public transactions. The Company believes that all such
investors are either accredited or, either alone or with their purchaser
representative, have such knowledge and experience in financial and business
matters that they are capable of evaluating the merits and risks of the
prospective investment.
Cancellation of Securities
Based on the lawsuit mentioned above under legal proceedings, the Company
has cancelled in August of 1999 close to 13,000,000 shares of its issued and
outstanding common stock. This will result in the remaining shares of common
stock issued and outstanding to be under 5,000,000.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits
None.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this to be signed on its behalf by the undersigned
thereunto duly authorized.
AMAZON NATURAL TREASURES, INC.
Date: 08/30/99 By: MICHAEL A. SYLVER
-------- ----------------------------------
Michael Sylver, President & Chief
Financial Officer
Date: 08/30/99 By: DOMINGOS LORICCHIO II
-------- ----------------------------------
Domingos Loricchio II
Secretary/Treasurer
